Answer:
The company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV
.
Explanation:
In order to know if the company should develop the new product we would have to make the following calculations:
The No, of units the company expects to sell = Market share*Market size = 4.5%*120,000 = 5,400
Total contribution = No. of units sold*contribution margin per unit = 5400*87.20 = $470,880
Fixed costs = $418,000
Profit before tax = Total contribution - Fixed costs = $470,880 - $418,000 = $52,000
Net profit = (1-Tax rate)*Profit before tax = (1-34%)*$52,000 = $34,320
Since there are no depreciation costs(assumed), net profit is the operating cash flow.
Therefore, the company should not develop the new product as The operation cash flow is too low as compared to the OCF that results in zero NPV
.
Manufacturing overhead is consists of indirect materials, indirect labor, and other indirect costs. To solve the problem, a portion of manufacturing income statement looks like this:
Direct material -----------------------$90,000
Direct labor ---------------------------$140,000
Manufacturing overhead--------________
Total cost to manufacture $300,000
Add: Work in process, beg $ 25,000
Less: Work in process, end $ 18,210
Cost of goods manufactures---$ 306,790
So, to solve the (?) in the above format, manufacturing overhead (MO) is derived as follows:
MO = Cost to manufacture - prime cost
= $300,000 - ($140,000 + $90,000)
= $70,000
Thus, manufacturing overhead is $70,000.
Answer:
True
Explanation:
The codes of conduct are the set or collection of conduct in an organisation that are specified for the particular organisation. These conducts may be following:
- Rules
- Principles
- Values
- Employee expectations, behavior, and relationships
These codes of conducts are to be followed by the individuals associated with organisation.
Answer:
the exchange rate between U.S. dollar and German mark be under this system will be of 3 U$D = 1 german mark
Explanation:
We will use gold and silver as a mean to equalize both currencies:
<u>First equivalence between silver and gold:</u>
90 francs = 1 ounce of gold
9 franc = 1 ounce of silver
90/9 = 10 ounce of silver equals 1 ounce of gold.
<u>Now, we convert the german mark to gold:</u>
1 german mark = ounce of silver
10 german mark = ounce of gold.
<u>Finally, we equalize with the US dollars:</u>
30 dollar = ounce of gold = 10 german mark
30 dollars = 10 german mark
3 dollars = 1 german mark
Carpentry
Hope that helps! :)
