Answer:
$2,685,000
Explanation:
Sales = $7,500,000 ÷ $62.50
= 120,000 units
Contribution = Sales - Variable cost
= $7,500,000 - (120,000 × $38)
= $7,500,000 - $45,60,000
= $29,40,000
Net income (after taxes) = $165,750
Net income before taxes and interest:
= Net income (after taxes) × (100 ÷ 65)
= $165,750 × (100 ÷ 65)
= 255,000
Therefore,
EBIT = Contribution - Fixed cost
255,000 = $29,40,000 - Fixed cost
Fixed cost = $29,40,000 - 255,000
= $2,685,000
Answer:
The approximate monthly payment is $383
Explanation:
Here, we want to calculate the approximate monthly payment on a 3-year lease agreement and we have been told what to do in the question.
Firstly, we start off by subtracting 48% residual value from the MSRP
48% of 26,500 = 48/100 * 26,500 = $12,720
We subtract this from $26,500
That will be $26,500 - $12,720 = $13,780
We have 3 years and that is 36 months
So the approximate monthly payment will be;
$13,780 / 36 = 382.7777777777778 which is approximately $383 to the nearest whole digit
Answer:
$68.23
Explanation:
In this question, we apply the dividend growth rate model which is shown below:
The computation of the current share price is shown below:
= (Current year dividend) ÷ (Rate of return on company stock - growth rate)
= ($4.23) ÷ (10.6% - 4.4%)
= ($4.23) ÷ (6.2%)
= $68.23
We simply find out the ratio between the current year dividend per share and difference between the rate of return and the growth rate
Answer:
The invoice price of the bond will be $100,127.88
Explanation:
Bonds are nothing but the debt instrument which a company uses to raise capital from the general public, these bonds can be of both short and long term period.
In the question it is given that bond has a coupon period of 182 days which means the bond is of short term period. Coupon rate of 7% means the bond gives the interest of 7% to its holder semiannually every year on January 15 and July 15.
It is given that the ask price for the bond on January 30 is 100.125 percent on par value of the bond which we are assuming to be $1000, which means the ask price is
$1000 X 100.125 = $100,125 ( ASK PRICE)
now we have to calculate the interest, remember the semiannually payment of interest has already been made on January 15 which means we have to find interest for only 15 days which will be taken out on par value
INTEREST = $1000 x 7% x 15 / 30
= $1000 x .07 x 1/ 2
= $35
INVOICE PRICE = INTEREST X \frac{TOTAL \: NUMBER \: OF \: DAYS}{COUPON \: PERIOD} + Ask price
= $35 X 15 / 182
= $2.884
Now adding this amount in to ask price
$100,125 + $2.884
= $100,127.88 ( INVOICE PRICE)
Answer:
b. Job order production.
Explanation:
Job order production is the process of manufacturing non-standard or unique products for specific customers. Sometimes making a job order production is also called making a work order or making it an individual order, because each order or work is an order placed by the customer. In most cases, custom jobs are created only once. Many manufacturers specialize in mass production of custom products. Buyers come to the manufacturer with a special design or product, and the manufacturer develops and creates an individual product.
A customer-oriented production puts customer satisfaction at the center of each of its business decisions. Customer focus is defined as an approach to sales and customer relations, in which employees focus on helping customers meet their long-term needs and desires. Here, management and employees coordinate their individual and team goals in order to satisfy and retain customers. This contrasts, in particular, with a focus on sales, which is a strategic approach when the needs and desires of a company or seller are evaluated in relation to the client.
Just in Time production is an inventory strategy developed to increase production and productivity. All production processes (in-progress cost) and the type of production taking into consideration the time criteria in order to minimize the associated sub-costs are derived from the Japanese Kanban system. During production, it determines the order of work by considering the production of the next process. This strategy, which states that the order level is reached in the storage process and that the order must be met after this point, provides the most efficient storage volume and production continuity. In short, just in time, the demand is to produce as soon as possible with excellent quality and transport it to the right place at any time.
Job lot production is a production futures contract whose trading volume is below the level required by normal operations. These contracts or lots are available to add liquidity to futures exchanges by allowing smaller "participants" to enter the market.
Process production is a system from production in which a product goes through several processes or stages from production, which will be operated on a more continuous basis; for example, in oil refineries and petrochemical plants, where these processes include liquid or semi-solid materials. In the production of the main product, they say, gasoline, from such in the production process, by-products such as tar or creosote can inevitably arise.
