Answer:
Labor cost
Explanation:
Variable costs are the costs that can vary or depends on the output level of production.
Here,
In the given case the variable cost for the plant will be the labor cost.
The number of labor required for the production depends on the level of output volume.
For higher number of output more labor will be required and vice-versa.
Thus,
the labor cost will alter accordingly.
Answer:
C. greenfield operation
Explanation:
Maddox intends to enter into a foreign market, and in order to manage to control all its activities by setting up production facilities and distribution channels from scratch, this company will choose a greenfield operation mode. Greenfield corresponds to what Maddox is planning to develop in a foreign field, which is a <em>enterely new project.</em>
Answer:
The correct answers are:
C-debit paid-in capital treasury shares $200
D-Debit retained earnings $300
Explanation:
The purchase of treasury stock for $10 per share implies that the price paid per share is the par value of each share.
Upon issue of 100 shares at $12 the following entries are required:
Dr Cash (100*$12) $1,200
Cr Treasury stock(100*$10) $1,000
Cr Paid-in capital in excess of par $200
However upon issue of 500 share at $9 per share which is $1 less than the par value, hence there is $500 discount on the issue.
The discount is recorded as follows:
Dr paid-in capital $200
Dr Retained earnings $300
The $200 posted to paid-in capital is the same premium that posted in there earlier when 100 shares.
The shareholder equity is equal to:
$28/share * 13 700 shares = $ 383,600
This is the total capital of Davidson International. Now, assuming that there is no additional income since it is not implied in the problem, the total equity does not change. However, the shares become: 13,700 + 500 = 14 200 shares.
Price per share now becomes:
$383 600 / 14 200 shares = $27/share
