Answer with Explanation:
Identifying industry’s dominant economic features helps in understanding what key factors ensures its survival and success. The understanding of business environment also helps in making informed decisions that generates value for the company. Some of the important industry's dominant economic features are as under:
Market Size and Growth Rate: This helps in understanding how large is the market. If the market size very large then it means we have running customers which means we rarely have repetitive customer. Hence the chances of survival are more in a relative large market as apposed to small market. Similarly the market growth rate is also an attractive factor because greater the market growth rate the greater would be chances of success because new customer entrants are continuously growing with great numbers. This great pace will generate great sales in the future as well.
Scope of Rivalry: The number of competitors operating in the market and their size is often termed as scope of rivalry. Furthermore, the greater are the number of competitors in the market the lower is the bargaining power of the competitors and vice versa. This means that the profit earning will be affected with the population of competitors in the market as every competitor will try to attract the customers by discounting their product prices. The survival of new entrant in such a market is very difficult.
Level of Product Differentiation: If are considering a car market of a developing country like Indonesia, Pakistan, Mongolia, Uzbekistan, etc which have higher population and the level of purchasing power of people very low than developed countries like US and UK. This means that the level of product differentiation will be very low. Hence the survival of highly differentiated product in such market is very difficult. So the level of product differentiation may alter your decision making process.
Technology Adoption Cost: If the technology adoption cost is very low then it more risky market as the product may get obsolete very early and the life-cycle of the product will be very shorter. This means that the revenue generated from the product would be lower as the demand of new technology takes all the sales away.
Profitability of the Market Segment: The profit margin of the product of a particular market segment is higher and the level of risk is also within a acceptable range then it will be strategically important because the amount invested will be recovered earlier because higher profit margins. We can also increase the sale of the product by reducing the price in market which prizes its customer at a high, this will increase the demand and profits of the company. Hence it is a successful and survival ensuring market.
The current yield is defined as the annual interest on a bond divided by par value true or false?
Answer: False
Explanation:
The Current Yield is calculated by dividing the annual interest on a bond by the current price and not the par value. This way the current price of the bond is the one that matters.
The Current Yield is calculated based on the logic of what the investor can expect as returns for purchasing the bond at the current rate and then holding it for a year or less and so is not the return that can be expected if the bond is held till maturity.
Problem 16-4 Break-Even EBIT [LO1] Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 195,000 shares of stock outstanding. Under Plan II, there would be 145,000 shares of stock outstanding and $2.9 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes. a. If EBIT is $475,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If EBIT is $725,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Answer:
a)
under plan I:
EBIT = $475,000
net income = $475,000
EPS = $475,000 / 195,000 stocks = $2.44
under plan II:
EBIT = $475,000
net income = $475,000 - ($2,900,000 x 7%) = $272,000
EPS = $272,000 / 145,000 stocks = $1.88
b)
under plan I:
EBIT = $725,000
net income = $725,000
EPS = $725,000 / 195,000 stocks = $3.72
under plan II:
EBIT = $725,000
net income = $725,000 - ($2,900,000 x 7%) = $522,000
EPS = $522,000 / 145,000 stocks = $3.60
c)
in thousands
EBIT / 195 = (EBIT - $203) / 145
145EBIT = 195EBIT - $39,585
50EBIT = $39,585
EBIT = $39,585 / 50 = $791.7 x 1,000 = $791,700
$400,000 capital investment proposal has an estimated life of 4 years and no residual value. The estimated net cash flows are as follows: Year Net Cash Flow 1 $200,000 2 150,000 3 90,000 4 80,000 The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value.
Answer:
Net present value = $13,110
Explanation:
The computation of the net present value is shown below:
Years Cash flows Present value factor Present value
0 -$400,000 1 -$400,000 (A)
1 $200,000 0.893 $178,600
2 $150,000 0.797 $119,550
3 $90,000 0.712 $64,080
4 $80,000 0.636 $50,880
Net present value $13,110 (B - A)
"The primary criteria for a person to be appointed to a securities industry arbitration panel is that the person be:"
Answer:
Disinterested
Explanation:
Arbitration panel is a group of adjudicators that meet to resolve disputes between parties.
The panel can be made up of one person or a group of two or more people.
Adjudicators are usually experts in a particular field related to the issue under dispute.
The analyse the situation and present recommendation to the parties in the dispute.
The primary criteria for being a part of an arbitration panel is that one has to be disinterested.
They must not have any connection to the parties involved in the dispute.
Company A is considering a merger with Company B. A has 43,000 shares outstanding at a market price of $32 a share. B has 12,800 shares outstanding priced at $44 a share. The merger is expected to create $5,400 of synergy. What will be the total value of the merged firm?
A) $568,600
B) $1,376,000
C) $446,073
D) $563,200
E) $1,381,400
Answer: $1381400
Explanation:
From the question, we are informed that Company A is considering a merger with Company B and that A has 43,000 shares outstanding at a market price of $32 a share while B has 12,800 shares outstanding priced at $44 a share and the merger is expected to create $5,400 of synergy.
The total value of the merged firm will be:
= (43,000 × $32) + (12,800 × $44) + $5,400 - $563,200
= $1,376,000 + $563,200 + $5,400 - $563,200
= $1,944,600 - $563,200
= $1,381,400
g. How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment, 10% coupon bond if the nominal rd 13%. Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (p. 236). Cengage Learning. Kindle Edition.
Answer:
$834.73
Explanation:
the market value of the bonds is calculated by adding the present value of its maturity value (face value) + the present value of its coupon payments. The discount rate will be the market rate instead of the coupon rate:
PV of face value = $1,000 / (1 + 6.5%)²⁰ = $283.80
PV of coupon payments = $50 x 11.01851 (PV annuity factor, 6.5%, 20 periods) = $550.93
the bond's market value = $283.80 + $550.93 = $834.73
How much total depreciation and amortization expense did Patnode record during 2015?
a. $10,000
b. $6,000
c. $3,000
d. $5,000
Answer:
d. $5,000
Explanation:
Patnode's information is missing, so I looked it up. I found the balance sheet for 2014 and 2015. Hope that it is the same question:
total depreciation expense for 2015 = change in accumulated depreciation (2015 - 2014) + change in accumulated amortization (2015 - 2014) = ($3,000 - $0) + ($3,000 - $1,000) = $3,000 + $2,000 = $5,000
Which of the following are examples of variable cost?
(select 3 answers)
a. a radio ad
b. hourly employees
c. the yarn used to make a scarf
d. rent of an office space
e. the shampoo used to groom pets
f. internet services
Answer:
Which of the following are examples of variable cost?
hourly employees
Variable costs vary directly and proportionally to variations in the level or volume of business activity. Examples of variable costs include options (c), (d), and (e).
What is a variable cost?A variable cost is a corporate and business expense that varies in relation to the amount of product or service produced or sold.
Variable costs rise or fall in relation to a company's production or sales volume, rising as production increases and falling as production drops.
As a result, variable expenses include the yarn required to manufacture a scarf, the rent for office space, and the shampoo used to groom dogs.
For more information about variable costs, refer below
https://brainly.com/question/14083670
Brianne, vice president of finance, and Dominic, vice president of human resources, are:________.
a. lower-level managers.
b. team leaders.
c. advisory managers.
d. board members.
e. functional managers.
Answer:
e. functional managers.
Explanation:
Functional managers may be defined as every individual who has the major responsibility of their expertise or a particular department, which is to be referred to the high authority of that specific department.
Therefore according to the above explanation, the correct answer is e and the rest is to be not relevant according to the given situation.
Valentine is a producer in a monopoly industry. Her demand curve and total cost curve are given as follows: Q = 160 - 4P ; TC = 4Q. The price of her product will be:
Answer: b) $22
Explanation:
A Monopoly will maximise output where Marginal Revenue equals Marginal cost.
Marginal revenue (MR) is the differential of Total revenue.
= (dTR/dQ ) 40Q - 0.25Q^2
= 40 - 0.5Q
Marginal Cost is the differential of Total cost.
= dTC/dQ
= 4
MR = MC
40 - 0.5Q = 4
36 = 0.5Q
Q = 72 units is the maximising quantity.
Price
Q = 160 - 4P
72 = 160 - 4P
4P = 160 -72
4P = 88
P = $22
A project with an initial cost of $51,400 is expected to generate annual cash flows of $16,910 for the next 5 years. What is the project's internal rate of return
Answer:
19.27%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-51,400
Cash flow each year from year 1 to 5 = $16,910
IRR = 19.27%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
The following information is available for Fuller Manufacturing Company for the month ending October 31:_______.
Cost of direct materials used in production $1,323,600
Direct labor 1,680,000
Work in process inventory, October 1 455,300
Work in process inventory, October 31 378,100
Total factory overhead 3,544,200
Determine Fuller Manufacturing's cost of goods manufactured for the month ended October 31.
Answer:
$6,625,000
Explanation:
Direct material $1,323,600
Direct labor. $1,680,000
Total factory overhead. $3,544,200
Add: Opening work in process inventory $455,300
Less: Closing work in process inventory ($378,100)
Costs of goods manufactured $6,625,000
Cobe Company has already manufactured 17,000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $300,000 total additional cost and be converted into 5,400 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is $104 and for Product C is $56.Prepare an analysis that shows whether the 17,000 units of Product A should be processed further or not.
Sell as is ProcessFurther
Sales
Relevant costs:
Total relevant costs
Income (loss)
Incremental net income (or loss) if processed further
The company should
Answer:
Income (loss) $490,000 $928,000
Net incremental income= $438,000
17,000 units of product A should be processed further.
Explanation:
Preparation of analysis that shows whether 17,000 units of Product A should be processed further or not.
Sell Process further
Sales $490,000 $1,228,000
Relevant costs
Additional cost to process further $300,000
Total relevant costs $300,000
Income (loss) $490,000 $928,000
Calculation for sales after processing further
Sales after processing further = (5,400 x $104) + (11,900 x $56)
Sales after processing further= $561,600 + $666,400
Sales after processing further= $1,228,000
Calculation for Net incremental income
Net incremental income = $928,000 - $490,000
Net incremental income= $438,000
Therefore 17,000 units of product A should be processed further.
The alternative to viewing management as a process is to focus on
A/ Strategy
B/ People
C/ Resources
Answer:
B/ People
Explanation:
This is because, the ability to manage people and direct them on what is expected of them to do and not to do can be viewed as management. For example, directing workers on what job duties to do in a sugar manufacturing company is called management.
Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected.
Year 0 1 2 3 4 5
Cash flows −$1,250 $325 $325 $325 $325 $325
Answer:
9.43%
Explanation:
The computation of the internal rate of return is calculated by using the spreadsheet which is shown in the attachment
The internal rate of return is the return at which the net present value comes to zero i.e.
Net present value = 0
initial investment = Present value of cash flows after taking the discounting factor
After solving the given problem, the internal rate of return is 9.43%
Which of the following is NOT true about posting the cash receipts journal information at the end of the month? a.Total the amount columns, prove the total of debits equal to credits, and rule the columns. b.Post the individual amounts from the General Credit column to the appropriate general ledger accounts. c.Insert the date in the Date column and "CR" and the page number in the Posting Reference column of each ledger account. d.Post each column total except the General Credit column total to the general ledger accounts.
Answer:
The Cash Receipts Journal
The statement that is NOT true about posting the cash receipts journal information at the end of the month is:
b.Post the individual amounts from the General Credit column to the appropriate general ledger accounts.
Explanation:
A company's cash receipts journal is one of the specialized journals. It is exclusively used for recording only the cash inflows to the company during the period. All the cash inflows are initially recorded in this journal, where the transactions are analyzed in columns. At the end of the month, the reconciled totals from the amount columns are posted to the ledger. The columns maintained in the cash receipts journal include the general debit column, sales discount debit column, accounts receivable, sales, other accounts, and cost of goods sold/inventory columns.
Answer:
D on Cengage
Post the individual amounts from the General Credit column to the appropriate general ledger accounts.
Explanation:
The manager at Tom's Taxidermy expects to sell units at each unit. In order for the manager to breakeven, the manager must sell units. What is the margin of safety in dollars?
The manager at Tom's Taxidermy expects to sell 900 units at $80 each unit. In order for the manager to breakeven, the manager must sell 100 units. What is the margin of safety in dollars?
Answer:
$64,000
Explanation:
Given that, the margin of safety is a term that describes the disparity between the actual sales volume and the breakeven volume.
In this case, Tom's Taxidermy expects to sell 9,00 units at $80 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:
MS = ( 900 - 100) * $80
MS = 800 * $80
= $64,000
Therefore, the right answer as Margin of Safety in dollars = $64,000
In December Year 4, Mill Co. began including one coupon in each package of candy that it sells and offering a toy in exchange for $.30 and one coupon. The toys cost Mill $.80 each. Eventually, 70% of the coupons will be redeemed. During December, Mill sold 100,000 packages of candy and 15,000 coupons were redeemed. In its Year 4 income statement, what amount should Mill report as Premium Expense?
Answer:
$35,000
Explanation:
Sine Mill expects that 70% of the coupons will be redeemed, their premium expense should equal 70% x 100,000 packages x ($0.80 - $0.30) = $35,000
the journal entry to record the issuing of the discount coupons should be:
Dr Premium (or toy coupons, or marketing) expense 35,000
Cr Toy coupons liability 35,000
Since 15,000 were redeemed in December, the adjusting entry should be:
December 31, year 4
Dr Toy coupons liability 7,500
Cr Toys inventory 7,500
Hudson Corporation will pay a dividend of $5.00 per share next year. The company pledges to increase its dividend by 7.80 percent per year indefinitely.
If you require a return of 5.40 percent on your investment, how much will you pay for the company's stock today?
a. $150.86
b. $157.14
c. $163.43
d. $152.12
e. $36.72
Answer:
$157.14
Explanation:
Calculation for how much will you pay for the company's stock today
Using this formula
P0 = D1 / (Ke - g)
Where,
P0 = Price of Share
D1 = Current Dividend=$3.30
Ke = Cost of Equity=5.40%
g = growth rate=3.30%
Let plug in the formula
P0 = $3.30/ (5.40%-3.30%)
P0 = $3.30/0.021
P0= $157.14
Therefore the amount that you will pay for the company's stock today will be $157.14
To accomplish U.S. objectives, the national security strategy guides the coordination of the instruments of national power which include _____.
a. the military
b. economics c. diplomacy d. information
Answer:
a. the military
b. economics
c. diplomacy
d. information
Explanation:
All of the above are correct.
In order for the United States to achieve optimal outcome in military coflict, it has to utilize the elements of national power. Therefore, to accomplish U.S. objectives, the national security strategy guides the coordination of the instruments of national power which include Diplomacy, Information, Military and Economics. It's acronym is DIME. The U.S converge this national power into a multi-domain campaign plan.
The condensed income statement for a business for the past year is as follows: Product T U Sales $660,000 $320,000 Less variable costs 540,000 220,000 Contribution margin $ 120,000 $100,000 Less fixed costs 145,000 40,000 Income (loss) from operations $ (25,000) $ 60,000 Management is considering the discontinuance of the manufacture and sale of Product T at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Product U. What is the amount of chang
Answer:
Decrease in Net Income to the amount of $120,000
Explanation:
Some words are missing. The word are "change in net income for the current year that will result from the discontinuance of product T?"
Solution
Product T
Sales $660,000
Less: Variable cost $540,000
Contribution margin $120,000
Interpretation: By discontinuing Product T, therefore there will be a decrease in Net Income to the amount of $120,000
The coupon rate on a debt issue is 6%. If the yield to maturity on the debt is 9%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 34%
Answer:
Weighted average cost of capital= 5.94%
Explanation:
The cost of debt is the required rate of return payable to investors in the debt instruments of a company. These investors include providers of long term debt finance to the company.
The cost of debt finance can determined by working out the yield to maturity on debt with adjustment for tax.
It is noteworthy that debt finance affords the company a tax savings advantage because interest expense incurred on the use of debt of are tax deductible expense.
After-tax cost of debt = (1- Tax rate) × before-tax cost of debt
Before tax cost of debt = 9%
Tax rate = 34%
After-tax cost of debt = (1-0.34) × 9% = 5.94%
After-tax cost of debt = 5.94%
Weighted average cost of capital= 5.94%
On January 1, 2018, Bishop Company issued 10% bonds dated January 1, 2018, with a face amount of $19.3 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the nearest whole dollar.) Required: 1. Determine the price of the bonds at January 1, 2018. 2. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2018. 3. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method. 4. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method.
Answer:
1) $19.3 million in bonds issued January 1, 2018
coupon rate 10%, semiannual 5% interest
maturity = 10 years x 2 = 20 periods
market interest rate = 12% / 2 = 6% semiannual
1) market price of the bonds:
PV of face value = $19,300,000 / (1 + 6%)²⁰ = $6,017,831.23
PV of coupon payments = $965,000 x 11.470 (PV annuity factor, 6%, 20 periods) = $11,068,550
market price = $17,086,381.23 ≈ $17,086,381
2) January 1, 2018, bonds issued at a discount
Dr Cash 17,086,381
Dr Discount on bonds payable 2,213,619
Cr Bonds payable 19,300,000
3) June 30, 2018, first coupon payment
Dr Interest expense 1,025,183
Cr Cash 965,000
Cr Discount on bonds payable 60,183
amortization of bond discount = ($17,086,381 x 6%) - $965,000 = $1,025,182.86 - $4,860,000 = $60,182.86 ≈ $60,183
4) December 31, 2018, second coupon payment
Dr Interest expense 1,028,794
Cr Cash 965,000
Cr Discount on bonds payable 63,794
amortization of bond discount = ($17,146,564 x 6%) - $965,000 = $1,028,793.84 - $965,000 = $63,793.84 ≈ $63,794
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.
Standard hours per unit of output 5.30 DLHs
Standard variable overhead rate $ 11.66 per DLH
The following data pertain to operations for the last month:
Actual direct labor-hours 8,800 DLHs
Actual total variable manufacturing overhead cost $ 96,000
Actual output 1,500 units
What is the variable overhead efficiency variance for the month?
a. $6,883 U
b. $6,883 F
c. $9,911 U
d. $3,252 U
Answer:
Variable overhead efficiency variance= $9,911 unfavorable
Explanation:
Giving the following information:
Standard hours per unit of output 5.30 DLHs
Standard variable overhead rate $ 11.66 per DLH
Actual direct labor-hours 8,800 DLHs
Actual output 1,500 units
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Standard quantity= 5.3*1,500= 7,950
Variable overhead efficiency variance= (7,950 - 8,800)*11.66
Variable overhead efficiency variance= $9,911 unfavorable
The correlation coefficient between a selection test and job performance is 0. This means the selection test_________ .
(a) perfectly predicts job performance
(b) and job performance are unrelated
(c) has adverse impact on job performance
(d) is positively related to job performance
Answer:
(b) and job performance are unrelated
Explanation:
Correlation coefficient = 1 perfectly related
Correlation coefficient = 0 perfectly unrelated
Correlation coefficient of zero means the selection test and the job performance are unrelated. Hence, the correct answer is B
Skor Co. leased equipment to Douglas Corp. on January 2, 2011 for a 7-year period expiring December 31, 2017. Equal payments under the lease are $600,000 and are due on January 2 of each year. The first payment was made on January 2, 2011. The cost of the equipment is $2,400,000. The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments is $2,800,000. What is the effect on Cost of Goods Sold for the year ended December 31, 2011?
Answer:
$2,400,000
Explanation:
Always remember that in the case of a sales type lease, the lessor at the inception of the sales type lease would recognize sale of equipment at a price of present value of the lease payments which is $2,800,000 and cost of goods sold will be recorded at cost of equipment which is $2,400,000.
Case 1: If the equipment was an inventory then the double entry would be as under:
Recording of Sales:
Dr Lease Asset $2,800,000
Cr Sale of Inventory $2,800,000
Recording of inventory out:
Dr Cost of Goods Sold $2,400,000
Cr Inventory Account $2,400,000
Case 2: If the equipment was fixed asset then the double entry would be as under:
Recording of Sales:
Dr Lease Asset $2,800,000
Cr Sale of Fixed Asset $2,800,000
Recording of equipment handing over to customer:
Dr Cost of Goods Sold $2,400,000
Cr Equipment Account $2,400,000
In both of the cases the cost of goods sold will be $2,400,000.
When the project sponsor and manager are determining how to create the project culture, ethics should be an important consideration.
A. True
B. False
Answer:
A. true
Explanation:
The ethics are a principle which deals in the right and wrong thing. For creating an organizational culture the trust, beliefs of the employees towards The company, and the company towards employees are very important.
Everything done in an organization should be done in an ethical way i.e. properly policies, procedures, rules, regulations should be implemented so that every employee should follow them. If it is not followed then strict actions should be taken
So for creating project culture, the ethics should be considered as it contains the laws, principles, etc that are required to run an organization
hence, the given statement is true
You are saving money for a down payment on a house. Suppose you want to have total savings of $20,000 in 10 years time and you have currently $5,000. What annual interest rate do you need to earn on your initial investment, assuming you contribute no additional savings?
Answer:
14.87%
Explanation:
we have to use the future value formula to solve this question:
future value = present value x (1 + rate)ⁿ
you need to save $20,000 in 10 years (this is your future value)
currently you have $5,000 which will be $5,000 x (1 + r)¹⁰
$20,000 = $5,000 x (1 + r)¹⁰
(1 + r)¹⁰ = $20,000 / $5,000
(1 + r)¹⁰ = 4
¹⁰√(1 + r)¹⁰ = ¹⁰√4
1 + r = 1.1487
r = 1.1487 - 1
r = 0.1487 = 14.87%
What aspect of evaluating a supplier might be affected by meeting government standards?
A. Completeness of orders
B. Quality
C. Flexibility
D. Timeliness
Answer:
B. Quality
Explanation:
Quality of goods and services rendered by a supplier could be affected by government standards as a result of the established methods by the government. For example, meat supplier has to abide to government standards when supplying to markets and retail sellers.
The ratio of profit, cost of material and labour in the production of an article is 5:7:13 respectively. If the cost of material is 840 more than that of labour, find the cost of producing the article
Answer:
Explanation:
SOLUTION: The ratio of the profit, cost of materials and labour in the production of an article is 5 : 7: 13 respectively. If the cost of materials is GH¢ 840 more than that of labour. fin
The ratio of the profit, cost of materials and labour in the production of an article is 5 : 7: 13 respectively. If the cost of materials is GH¢ 840 more than that of labour. find the total cost of producing the article.
Note: GH¢ stands for Ghana Cedis
The problem formulation is HEAVILY INCORRECT.
One part of the condition says that the cost of materials and the labor are 7x and 13x respectively,
where x is their common measure, a positive value.
The other part says that the cost of materials (7x) is 840 MORE than that of labor (13x).
It can not be so, BECAUSE it can NEVER be so.
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