Full question attached
Answer:
D. Earnings before interest and taxes(EBIT)
Explanation:
Earnings before interest and taxes abbreviated EBIT in the income statement is arrived at by deducting operating expenses from revenue/sales to get operating income. The operating income is earnings before interest and taxes which comes before gross income(subtract other expenses). Operating expenses are the main expenses concerned with operations of the business such as the Sales
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.
I hope my answer helps you
Complete/Correct Question:
An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?
a. Effective gross income
b. Gross income multiplier
c. Gross rent multiplier
d. Potential gross income
Answer:
c, gross rent multiplier
Explanation:
Gross rent multiplier can be defined as the ratio of the price of a real estate investment to the annual income before the calculation of expenses.
It can simply be said to be the number of years it would take a property for pay for itself through rent collection.
Gross rent multiplier is very useful when deciding or trying to select properties to invest in to ensure that factors such as depreciation, periodical cost, etc affects the property/investment drastically.
in the case of the investor in the question above, gross rent multiplier will be used to determine what the future holds for the property.
Cheers
Answer:
Explanation:
1. prime costs: direct materials+direct labour
= $22,000+$35,000
= $57,000
2. Conversion Costs= Direct labour + Manufacturing Overheads
= $35,000+ $17,500
= $52,500
3. Product Costs = direct material+ direct labour+ manufacturing overheads
= $22,000 + $ 35,000 + $17,500
= $74,500
4. Period Costs = Selling expenses+ administrative expenses
= $17,600 + $13, 400
= $31,000
If 13,750 equivalent units are produced, what is the equivalent material cost per unit = direct materials costs / unit produced
= $22,000/13,750
= $1.6 per unit
If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit = total conversion costs/unit produced
= $52,500/17,500
=$3 per unit