Answer:
Site B should be chosen based on the IRR criterion
Explanation:
Please check the attached image for the complete question
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
When comparing projects, the project with the highest IRR should be chosen.
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Answer:
Instructions are below.
Explanation:
Giving the following information:
When it produces and sells 4,000 units, its average costs per unit are as follows:
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $ 2.60
Units produced= 3,000
<u>To calculate the unitary indirect manufacturing cost, you can use two different methods</u>. The variable method only uses the variable manufacturing overhead. The absorption method uses the total unitary overhead.
Total fixed overhead= 2.6*4,000= 10,400
<u>Variable costing method</u>:
Unitary indirect manufacturing cost= $1.4
<u>Absorption costing method:</u>
Unitary fixed overhead= 10,400/3,000= $3.47
Unitary indirect manufacturing cost= 1.4 + 3.47= $4.87
Answer:
Explanation:
Data given and notation
represent the sample mean
represent the standard deviation for the sample
sample size
represent the value that we want to test
represent the significance level for the hypothesis test.
t would represent the statistic (variable of interest)
represent the p value for the test (variable of interest)
State the null and alternative hypotheses.
We need to conduct a hypothesis in order to determine if the mean is lower than 5600, the system of hypothesis would be:
Null hypothesis:
Alternative hypothesis:
We don't know the population deviation, so for this case is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:
(1)
t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".
Calculate the statistic
We can replace in formula (1) the info given like this: