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Keith_Richards [23]
2 years ago
10

During the current year, Chudrick Corporation expects to produce 10,000 units and has budgeted the following: net income $300,00

0, variable costs $1,100,000, and fixed costs $100,000. It has invested assets of $1,500,000. The company’s budgeted ROI was 20%. What was its budgeted markup percentage using a full-cost approach?
Business
1 answer:
vodomira [7]2 years ago
3 0

Answer:

25%

Explanation:

For the computation of budgeted markup percentage using a full-cost approach first we need to find out the profit expected and total cost which is shown below:-

Profit Expected = $1,500,000 × 20%

= $300,000

Total cost = Variable cost + Fixed cost

= $1,100,000 + $100,000

= $12,00,000

Budgeted Markup Percentage = Profit ÷ Total Cost

= $300,000 ÷ $12,00,000

= 25%

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Hankins, Inc., is considering a project that will result in initial aftertax cash savings of $6.3 million at the end of the firs
Marrrta [24]

Answer:

A. 12.3%

B. 68%

Explanation:

a.Calculation to determine the required return for the project

Required return=(0.62/1.62*5.7%)+(1/1.62*13.2%)+2%

Required return=0.022+0.081+2%

Required return=0.124*100

Required return=12.3%

Therefore the required return for the project will be 12.3%

b. Calculation to determine the maximum cost the company would be willing to pay for this project

Maximum cost =6.3/(12.3%-3%)

Maximum cost =6.3/9.3%

Maximum cost =0.67.7*100

Maximum cost =67.7%

Maximum cost=68% (Approximately)

Therefore the maximum cost the company would be willing to pay for this project will be 68%

8 0
2 years ago
How do you feel at the beginning of the game as the facts about your situation flash on the screen? Do you think you can live 30
Alex73 [517]

Answer:

If you use the money reasonably and wisely, Yes, I think you can live 30 days with 1000 dollars in savings.

8 0
2 years ago
On January 1, Year 1, Abbott Company granted 92,000 stock options to certain executives. The options are exercisable no sooner t
Lilit [14]

Answer:

The amount of Compensation expense to Year 1 is $153,333.

Explanation:

Stock options granted                                       92000

X Fair value on date of grant                          5

Total compensation expense                       460000

Years                                                                    3    

Compensation expense per year 1                       53333

Therefore, The amount of Compensation expense to Year 1 is $153,333.

3 0
2 years ago
Q 2.29: During its most recent period, Raymond Manufacturing expected Job No. 59 to cost $600,000 of overhead, $1,000,000 of mat
beks73 [17]

Answer:

$70,000 overapplied

Explanation:

Raymond manufacturing expected job No 59 to cost $600,000 of overhead , $1,000,000 materials and $400,000 labour

The actual production cost is $590,000

$1,140,000 worth of materials were used and $440,000 labour cost

The first step is to calculate the overhead rate

= expected overhead /expected cost of labor

= $600,000/$400,000

= 1.5

The overhead applied can be calculated as follows

= overhead rate× real cost of labor

= 1.5 × $440,000

= $660,000

Therefore the over applied or underapplied can be calculated as follows

= $660,000-$590,000

= $70,000

Hence the overapplied is $70,000

3 0
2 years ago
The capital budgeting director of sparrow corporation is evaluating a project that costs $200,000, is expected to last for 10 ye
Molodets [167]
The applicable formula is as follows:
PV = PMT [1-(1+IRR)^-n]/[IRR]

Where;
PV = Present value = -$200,000 (set as negative as it is a negative cash flow).
PMT = Annual depreciation values = $44,503
IRR = Internal rate of return
n = Period in years = 10 years

Using excel formulas (shown in the attached image);
IRR = 18%

3 0
2 years ago
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