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In: Accounting
In April 2016 a pound of apples cost $1.54, while oranges cost $1.18. Three years earlier the price of apples was only $1.33 a pound and that of oranges was $1.04 a pound. a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
a. What was the annual compound rate of growth in the price of apples? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Compound annual growth rate___________% per year
b. What was the annual compound rate of growth in the price of oranges? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Compound annual growth rate___________% per year
c. If the same rates of growth persist in the future, what will be the price of apples in 2030? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Price____________
d. What about the price of oranges? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Price __________
In: Finance
How to find CVS Health WACC, Cost of Debt, Cost of Equity using CAPM model (Capital Asset Pricing Model) for year 2017?
In: Accounting
M7-8 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3]
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In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 200 units at $7 on January 1, (2) 500 units at $8 on January 8, and (3) 800 units at $9 on January 29. Assume 975 units are on hand at the end of the month. |
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Calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume a periodic inventory system is used |
In: Accounting
Assume that a radiologist group practice has the following cost structure:
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Fixed costs |
$200,000 |
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Variable cost per procedure |
$200 |
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Charge (price) per procedure |
$400 |
a. What is the group’s breakeven point in volume?
b. Complete the following table. (Hint: total costs= fixed costs + (variable cost per procedure x procedures)
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Volume (Procedures) |
Fixed Costs |
Total Costs |
Total Revenue |
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0 |
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100 |
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200 |
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300 |
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400 |
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500 |
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600 |
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700 |
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800 |
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900 |
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1,000 |
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1,100 |
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1,200 |
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1,300 |
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1,400 |
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1,500 |
c. Sketch out a breakeven graph depicting the BE point. (Hint: use Excel to produce the graph. When done, copy/paste the graph on the space provided below).
In: Finance
■Machine A
–Initial Cost = $150,000
–Pre-tax operating cost = $65,000
Expected life is 8 years
■Machine B
–Initial Cost = $100,000
–Pre-tax operating cost = $57,500
–Expected life is 6 years
The machine chosen will be replaced indefinitely and neither machine will have a differential impact on revenue. No change in NWC is required.
The required return is 10%, the applicable CCA rate is 20% and the tax rate is 40%.
Which machine should you buy?
In: Finance
1)
Annual sales (=demand), D = 4000 sets
Order cost, S = $ 25
Holding cost, H = $ 5
Current order quantity, Q = D/2 = 4000/2 = 2000 sets
Optimal order quantity, EOQ = sqrt(2DS/H)
= sqrt(2*4000*25/5)
= 200 sets
Annual holding cost of current policy = H*Q/2
= 5*2000/2
= $ 5000
Annual holding cost of optimal policy = H*EOQ/2
= 5*200/2
= $ 500
Difference in holding costs = 5000 - 500
= $ 4,500
2) A distribution center operates for a major electronics company that fulfills orders that customers make from the website. (15 pts.)
Estimated annual demand: 16,936 laptops (50 weeks per year)
Cost: $840 per laptop
Lead Time: 5 weeks
Standard deviation of weekly demand: laptops
Standard deviation of lead time: 0.9 weeks
Holding cost per unit per year: 60% of item cost
Ordering cost: $37 per order
Desired service level: 98% (z=2.05)
***Calculate the reorder point and the safety stock? Note that you need to convert the annual demand to weekly demand based on 50 wks/yr.
In: Operations Management
Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $65.88. The firm just recently paid a dividend of $3.98. The firm has been increasing dividends regularly. Five years ago, the dividend was just $3.04. After underpricing and flotation costs, the firm expects to net $61.93 per share on a new issue. a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company to pay next year? b. Determine the net proceeds, Nn, that the firm will actually receive. c. Using the constant-growth valuation model, determine the required return on the company's stock, r Subscript s, which should equal the cost of retained earnings, r Subscript r. d. Using the constant-growth valuation model, determine the cost of new common stock, r Subscript n.
In: Finance
| Item | Cost | Price | ||||||
| Per Unit (RM) | % of Cost to price | Total (RM) | Note | Per Unit (RM) | Total (RM) | |||
| Food | 18.72 | 40% | 11,232.00 | 1 | 46.80 | 28,080.00 | 40% of RM 28,080 | |
| Beverage | 1.30 | 26% | 780.00 | 2 | 5.00 | 3,000.00 | 26% of RM3,000 | |
| Hall Rental | 5.00 | 50% | 3,000.00 | 3 | 10.00 | 6,000.00 | 50% of RM6,000 | |
| AV & Equipment | 4.00 | 50% | 2,400.00 | 4 | 8.00 | 4,800.00 | 50% of RM4,800 | |
| Carpark | 2.10 | 70% | 1,260.00 | 5 | 3.00 | 1,800.00 | 70% of RM1,800 | |
| Decoration | 6.00 | 100% | 3,600.00 | 6 | 6.00 | 3,600.00 | 100% of RM3,600 | |
| Salaries | 19.70 | 25% | 11,820.00 | 7 | 25% of RM 47,280 | |||
| Operation System | 6.30 | 8% | 3,782.40 | 8 | 8% of RM 47,280 | |||
| Utilities | 6.30 | 8% | 3,782.40 | 9 | 8% of RM 47,280 | |||
| Total | 69.42 | 41,656.80 | 78.80 | 47,280.00 | ||||
The above data is the cost and price of the event of Annual Dinner . As a cost controller, using the data above briefly explain and analyze how the company can maximize the profit and minimize the cost using the below method?
a. Job Costing
b. Hybrid Costing
c. Process costing
d. Historical costing
e. Operating Costing
In: Accounting
Assume the short run variable cost function for Japanese beer is VC=0.5q^0.67
If the fixed cost (F) is $1500 and the firm produces 600units, determine the total cost of production (C), the variable cost of production (VC), the marginal cost of production (MC), the average fixed cost of production (AFC), and the average variable cost of production (AVC). What happens to these costs if the firm increases its output to 650?
Assuming the firm produces 600 units, the variable cost of production (VC) is
VC=???????. (Enter your response rounded to two decimalplaces.)
The total cost of production (C) is C=$????.?? (Enter your response rounded to two decimal places.)
The marginal cost of production (MC) is MC=$?.?? (Enter your response rounded to two decimal places.)
The average fixed cost of production (AFC) is AFC=$?.?? (Enter your response rounded to two decimal places.)
The average variable cost of production (AVC) is AVC=$?.??(Enter your response rounded to two decimal places.)
Now suppose the firm increases output to 750 units.
The variable cost of production (VC) is VC=$???.?? (Enter your response rounded to two decimal places.)
The total cost of production (C) is C=$????.?? (Enter your response rounded to two decimal places.)
The marginal cost of production (MC) is MC= $?.?? (Enter your response rounded to two decimal places.)
The average fixed cost of production (AFC) is AFC=$?.?? (Enter your response rounded to two decimal places.)
The average variable cost of production (AVC) is AVC=$?.?? (Enter your response rounded to two decimalplaces.)
In: Economics