What we identify the cost behavior? What are the characteristics of every cost behavior
In: Accounting
Cost of goods available for sale consists of the:
Select one:
a. cost of beginning inventory and the cost of ending inventory.
b. difference between the cost of goods purchased and the cost of sales during the year.
c. cost of beginning inventory and the cost of goods purchased during the year.
d. cost of ending inventory and the cost of goods purchased during the year.
In: Accounting
ABC Company has a before-tax cost of debt of 5.94%. The cost of equity of an unlevered firm (Note: cost of equity of unlevered firm = return on assets = cost of capital of the firm's assets = RA) is 17.14%. The D/E ratio is 1.13. What is the cost of equity? Assume a tax rate of 27.4%. Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box.
In: Finance
Some businesses need a lot of fixed cost, but the variable cost required will be very small. On the other hand, some other businesses need only small fixed cost, but have high variable cost. In which situation there is a higher chance of perfect competition? Why?
In: Economics
In: Economics
What is the difference between:
a) private cost and social cost for a chemical corporation whose output pollute the air?
b) Consumer’s surplus and producer’s surplus?
c) Average cost of a regular monopoly and average cost of a natural monopoly?
d) Profit maximization condition and efficiency conditions for optimum resource allocation.
In: Economics
A delivery car had a first cost of $36,000, an annual operating cost of $13,000, and an estimated $3500 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 3 years and must be sold now as a used vehicle. At an interest rate of 12% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle?
The market value of the used vehicle is determined to be $ .
In: Economics
An injection molding system has a first cost of $165,000 and an annual operating cost of $83,000 in years 1 and 2, increasing by $6,000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 13% per year, determine the ESL and the respective AW value of the system. The ESL is X year(s) and AW value of the system is Y$
In: Economics
A delivery car had a first cost of $36,000 an annual operating cost of $18,000, and an estimated $5500 salvage value after its 6-year life. Due to economic slowdown, the car will be retained for only 3 years and must be sold now as a used vehicle. At an interest rate of 15% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full cycle?
The market value of the used vehicle is determined to be $__________?
In: Economics
A tractor has a first cost of $40,000, a monthly op- erating cost of $1500, and a salvage value of $12,000 in 10 years. The MARR is 12% per year. An identical tractor can be rented for $3200 per month (operating cost not included). If n is the minimum number of months per year the tractor must be used in order to justify its purchase, the relation to find n is represented by:
Determine the number of month for breakeven
(a) -?40,000(A?P,1%,10) ?- 1500n ?+ 12,000(A?F,1%,10) =?
3200n
(b) -?40,000(A?P,12%,10) -? 1500n ?+ 12,000(A?F,12%,10) ?=
3200n
(c) ?-40,000(A?P,1%,120) ?- 1500n +? 12,000(A?F,1%,120) =?
3200n
(d) ?-40,000(A?P,11.4%,10) ?- 1500n ?+ 12,000(A?F,11.4%,10) ?=
3200n
In: Economics