Answer:
The total cost of quality the manager should use to report the costs in the internal failure cost category is $297,000
Explanation:
The computation of the internal failure cost is shown below:
= Rework cost + Cost of rejected units
= $257,000 + $40,000
= $297,000
The cost of internal failure includes both the cost of rework and the rejected units.
The other information which is given in the question is not relevant. Hence, ignored it as it would not be considered and thus not taken in the computation part.
Answer:
Adjusted accounting profit - $63,200
Cash inflow / Outflow - $63,200
Depreciation Tax shield - $63,200
Explanation:
Revenue - $188,000
Variable cost ($57,000)
Contribution $131,000
Rental cost ($37,000)
Depreciation (17,000)
($54,000)
PBIT 77,000
Income Tax (40%) (30,800)
Net Income 46,200
A) Adjusted Accounting profit
Add back non cash expenses (depreciation) = 46,200+$17000 =$63,200
B)Cash Inflow/Outflow
Revenue $188,000
Variable cost (57,000)
Rental cost (37000)
Income Tax (30,800)
$63,200
C Depreciation Tax Shield
Tax shield =40%*17,000= $6800
Cash income from operation (EBITDA*(1-tax rate) = 56,400
Add back $6,800 = 6,800
$63,200
Answer:
The main function of a terminal is to handle and transship freight or passengers since modes are physically separated. They have a nominal capacity which is related to the amount of land they occupy and their level of technological, labor and managerial intensity.
Explanation:
<u>Calculation of Return on Total Assets:</u>
Return on Total assets can be calculated using the following formula:
Return on Total Assets = Net Income / Total Assets
We can calculate Net income as follows:
Sales $2960
Less: Operating Costs $2675
Less: Interest charges $125
Income before tax = 160
Less: Tax (160*40%) = 64
Net Income = $96
Hence , Return on Total Assets = 96/2100 = 0.0457 =<u>4.57%</u>
