14. ABC is expected to pay GHS 500 dividend per share next year, and then sell for GHS2, 000 thereafter. If your discount rate is 28%, how much will you pay for a share today? Suppose dividend will increase by 10% per annum and you have a 4-year holding period in mind. How much will you pay, if the price is also expected to increase at 10% pa? (7 Marks)

XYZ Dividend Announcement [8 marks]

Shareholders of XYZ Company will be smiling all the way to the bank following an announcement of a dividend of 8 pesewas per share to all shareholders in respect of the 2014 financial year.

The announcement was made on March 1, 2015 and the dividend is expected to be approved by investors at the company's Annual General Meeting scheduled for March 27, 2015.

In this regard, members registered in the books of XYZ at the close of business on March 23, 2015 will qualify for the payment of the final dividend. The ex-dividend date has however been set as Friday, March 20, 2015. The final dividend will be paid on March 30, 2015. XYZ is presently trading at GHS 3.13 per share on the Ghana Stock Exchange.

a) Given that the GSE rules provide that all transactions on the floor of the exchange must go through the books of the firm by the close of business on the third working day following the transaction, what is the last date on which to buy the shares in other to receive the dividends announced?

b) What is the last day on which to sell your shares if you do not wish to receive these dividends?

c) If the equity of XYZ is worth GHS 313 million, how much will Esi receive if she owns 1% of the shares of XYZ?

d) What is XYZ’s dividend yield?

Answers

Answer 1

1a) The price I will pay for a share today in ABC is GHS 1,785.71.

1b) The price I will for a share today in ABC with a dividend growth rate of 10% is GHS 2,777.78.

2)  XYZ Company:

2a) The last date on which to buy the shares of XYZ Company in order to receive the dividends announced is March 20, 2015.

2b) The last date on which to sell shares if you do not wish to receive dividends is March 20, 2015.

2c) The dividend received by Esi from XYZ Company is GHS 80,000.

2d) XYZ's dividend yield is 2.56%(GHS 0.08/GHS 3.13)

Data and Calculations:

ABC Company:

Expected dividend per share next year = GHS 500

Selling price per share thereafter = GHS 2,000

Discount rate = 28%

1a. Price to pay = GHS 1,785.71 (GHS 500/28%)

1b. Dividend growth rate = 10%

Price to pay = GHS 2,777.78 (GHS 500 (28% -10%)

2)  XYZ Company:

Dividend per share declared = GHS 0.08

Dividend record date = March 23, 2015

Ex-dividend date = March 20, 2015

Dividend payment date = March 30, 2015

Present share price = GHS 3.13

2a) The last date to buy shares is March 20, 2015.

2b) The last date to sell shares is March 20, 2015.

2c) Equity value of XYZ = GHS 313 million

Outstanding shares = 100 million (GHS313 million/GHS 3.13)

Esi's shareholding = 1 million (100 million x 1%)

Dividend received by Esi = GHS 80,000 (1 million x GHS 0.08)

2d) XYZ's dividend yield is 2.56%(GHS 0.08/GHS 3.13)

= Dividend per share/Share Price

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Related Questions

which of the following statements about the statement of cash flows are correct? (check all that apply.) multiple select question. it details the sources and uses of cash. in certain circumstances, it can replace the statement of retained earnings. the purpose is to report cash receipts and cash payments during a period.

Answers

The correct statement about  of cash flows will be it details the sources and uses of cash.

A cash flow is such a physical or virtual movement of funds; in its strictest definition, it refers to a transfer of funds, typically from one central bank institution to another.

The net amount of cash including cash equivalents coming into and going out of a business is referred to as cash flow. Money spent and money received reflect inflows and outflows, respectively.

Cash flow would be a metric for how much money a company earned or spent overall during a given period of time. On the statement of cash flows, a common financial statement, cash flow is more often divided into statement of cash flows, investment activities, as well as financing activities.

Therefore, the correct answer will be option (a)

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On July 1, 2015, Crowe Co. pays €15,000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Crowe Co. journalize the entry on July 1 and the adjusting entry on December 31.

Answers

According to the question Insurance expense is $2,500 and Unearned service revenue is $2,500.

What do you mean by the expense?

Expenses are simply another word for cost. It is also possible to refer to the sum of all activities that generally produce revenue as costs.

as we know that, Insurance expense

= Principal amount x time period

= 15,000 x 6/12(july - dec) x 1/3 ( 1 yr from the 3 yr insurance )

= $2,500

as we know that, Unearned service revenue

= Principal amount x time period

= 15,000 x 6/12(july - dec) x 1/3 ( 1 year from the 3 year insurance )

= $2,500

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a firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Answers

This statement is true. A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Direct investment is also known as foreign direct investment (FDI). FDI is a way to invest in a foreign commercial enterprise with the goal of acquiring a majority stake in the enterprise. Direct investment offers financial capital in exchange for an equity stake in a company without requiring the purchase of regular stock options. Direct investment, also known as foreign direct investment, is intended to acquire an attempting to control interest in a business. Direct investment offers financial support in exchange for a stake in a company without the buy of regular shares of stock. Direct investment may entail a firm in one country establishing its own company's operations in another.

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A local landscaping company donates and plants a tree in the community for every new client that uses its landscaping design services. This exhibits the company's _______.
A) business ethics.
B) profitability.
C) business responsibility.
D) irresponsibility.
E) social responsibility.

Answers

A local landscaping company donates and plants a tree in the community for every new client that uses its landscaping design services. This exhibits the company's social responsibility.E) social responsibility is the correct option.

Social responsibility refers to the actions and decisions that a business makes in order to balance its economic goals with the interests of society and the environment. In this case, the landscaping company is taking a positive action to benefit the community by planting a tree for every new client, which is a clear example of social responsibility. The other options (A, B, C, D) are not directly related to the action the company is taking.

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Please answer the question posted in the image below:

Answers

The cash flow in each of years 1 to 5 will be $4,687,000.

What is cash flow?

The net amount of cash and cash equivalents transferred into and out of a company is referred to as cash flow. Inflows are represented by cash received, while outflows are represented by money spent.

In year 0 only outflows occur and we assume all the revenues accrue after a full year of operation,

Free cash flows at year 0 are = Initial outlay + Transportation costs = $8,000,000

For Year 1 - 5  we calculate net cash flows before tax,

Year 1 = $10,000,000-3,5000,000 = $6,500,000

This will remain the same through out the project life.

We also calculate depreciation tax shield,

Depreciation = $8,000,000 / 5 = $1,600,000 per year

For tax subtract the depreciation and then add it back later for cash flow

Cash flow after depreciation = $6,500,000-  $1,600,000 = $4,900,000

Tax = $4,900,000 × 0.37 =$1,813,000

∴ Cash flow for Year 1-5 = $4,900,000 - $1,813,000 + $1,600,000

                                        = $4,687,000

Therefore, cash flow for each of the years 1 to 5 is $4,687,000.

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Constructing professional memos please help!!! Quickly

Answers

Memos are known for being succinct, direct, and simple to read. Despite being less official than letters, they nonetheless need to be written in a formal, concise manner.

What are the steps of creating a memo?

A memo should include the following.

1. Heading. To. From. Date. Subject.

2. Opening statement.

3. Context.

4. Call to action and task statement.

5. Discussion.

6. Closing.

What is a business memo?

A business memo is a brief document that is used within an organization to communicate information. Memos are known for being succinct, direct, and simple to read. Despite being less official than letters, they nonetheless need to be written in a formal, concise manner. It's a specific kind of business note.

What does memo in banking mean?

In a bank memo, the routing information and bank account details associated with a company's business account are listed. It is normally written on bank letterhead and either a banker's signature or a teller's stamp is used.

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In the context of factors of production, which of the following an example of a natural resource?

a. An equipment
b. Land
c.An investment
d.Information

Answers

We would need a photo to help us understand what’s going on. We haven’t read it so we wouldn’t know. Sorry, but maybe if u add one i can help you out!

If AD excess equals $40 billion and the MPC equals 0.75, then the desired fiscal restraint equals
A. $10 billion.
B. $53.33 billion.
C. $30 billion.
D. $160 billion.

Answers

Answer:

40 times 0. 75 is equal to 30 so the $40 billion ×0.75=$30 billion

To what is McCain referring in the phrase "tired dogma"?
A
B
C
D
global idealism
finding scapegoats
spurious nationalism
self-centered youth
aimless rebellion

Answers

McCain referring in the phrase "tired dogma" is spurious nationalism. Spurious comes from the Late spurius (“false”), which in turn had earlier Latin meaning “of illegitimate birth.” Word has initial use to mean “false” or “deceitful” in senses unrelated to familial ancestry.

Why McCain refers to false nationalism with the phrase "tired dogma."?

McCain: Half-Baked, `Spurious' Nationalism

A synonym for 'false' meaning "of a deceitful nature"

On October 17, 2017, Spurious rose to the top of our lookups after Senator John McCain used adjectives to correct and decipher modern nationalism.

Senator John McCain on Monday warned Americans against "half-baked and spurious nationalism" and called the mandate of America's world leaders "unpatriotic."

Rather than question the origins of the word nationalism, the Arizona senators believe they used the term to mean "of a deceptive nature or quality."

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Which form of nonverbal communication is the best way to convey affection or
sympathy?
touch
appearance
gestures
posture

Answers

A) Touch

Touch is the best way to convey affection or sympathy. Touch communicates a sense of closeness, connection, and comfort that cannot be conveyed in any other form of nonverbal communication.

It is a powerful form of communication that can help to create a deeper bond between two people.

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2
ts
kipped
[The following information applies to the questions displayed below.]
On December 31, Hawkin's records show the following accounts.
Cash
Accounts Receivable
Supplies
Equipment
Accounts Payable
Hawkin, Capital, December 1
Hawkin, Withdrawals
Services Revenue
Wages Expense
Rent Expense
Utilities Expense
HAWKIN
Income Statement
$ 5,900
1,000
3,600
14,800
Use the above information to prepare a December income statement for Hawkin.
onth Endod
5,9000
1,000
3,600
14,800
6,400
15,300

Answers

The net income of Hawkins is $5,800

What is meant by net income?Net income is the amount of money you may have left over after taxes and other withholdings from your paycheck. Net income is the money that remains for a business after covering operational costs, administrative expenses, cost of products sold, taxes, insurance, and any other business charges. Before taxes, benefits, and other payroll deductions are deducted, an employee's gross pay is what they are paid. Net pay, often known as take-home pay, is the sum that is left over after all deductions have been taken into consideration. Since it is the final indicator of a company's performance, net income is frequently used interchangeably with profit.

Income statement

Service revenue $16,000

Less:

Wages Expense $8,000

Rent Expense $1,500

Utilities Expense $700

Total expenses $10,200

Net income $5,800

The following information should be considered:

The income statement is the statement that records the revenues and expenses.

Either it has a net income or net loss.

Therefore we can conclude that the net income is $5,800

The complete question is,

\On December 31, Hawkins records show the following accounts.

Cash $5,100 Accounts Receivable 600

Supplies 2,000 Equipment 14,000

Accounts Payable 6,000 Common stock 6,900

Retained earnings, December 1 4,000 Dividends 1,000

Services Revenue 16,000 Wages Expense 8,000

Rent Expense 1,500 Utilities Expense 700

Required:

Use the above information to prepare a December income statement for Hawkins

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Which is NOT an appurtenance and therefore does NOT pass with a standard warranty deed?
O Trade fixtures
O Trees
O Shrubs
O Custom window blinds

Answers

Custom window blinds is NOT an appurtenance and therefore does NOT pass with a standard warranty deed.

Custom windows are created with a particular style in mind. You can design the ideal window for your house by ordering a custom window. These windows can be created in almost any size, shape, or design upon request and according to your specifications.

$400 to $4,000 can be spent on custom windows. Window size, design, frame materials, and degree of personalization all affect price. Custom windows cost between 25% and 75% more than regular ones.

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A large airline appointed an engineer to be the link between the company's research and development department and the government contractor who is sponsoring the designing and prototyping of a new fighter airplane. According to Mintzberg, the engineer appointed by the airline is in the role of a

Answers

A cross-functional team is a group of professionals who are customer-focused and have a variety of areas of expertise.

They work together to achieve a common goal through collaboration, which helps to maximise effort, investment, and time in achieving customer satisfaction and the objectives of the organisation.

Members of the team may come from several organisational divisions, including marketing, finance, safety and quality, human resources, and operations.

Prototypes are created to guarantee that early findings and solutions are used to tackle problems in an efficient manner. These prototypes are being offered to the respondents, who will assess if they truly address the issues raised by the research. If not, the prototype will continue to receive updates until the issue is resolved.

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Which of the following is true about compliance procedures for
environmental law?
A. Businesses are largely responsible to monitor and ensure their
own compliance.
B. Compliance with regulations is voluntary unless a company
previously broke laws.
OC. All businesses are inspected by environmental agencies on a
regular basis.
D. Businesses are only accountable for violations found by
government agents.

Answers

That C. all businesses are inspected by environmental agencies on a regular basis is true about compliance procedures for environmental law.

What is environmental law?

Environmental law refers to rules, regulations, standards, and other requirements stipulated by the government or its agency to control, limit, or forbid completely the use of chemicals, substances, and mixtures that constitute an extreme risk to humans from being produced, processed, distributed, used, imported, or discarded.

All businesses and individuals are mandated to comply with these laws.

The Environmental Protection Agency (EPA) is the government agency required to write environmental guidelines and enforce them in the United States.

Thus, it inspects all businesses on regular basis to ensure compliance with the laws.

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Answer:

A. businesses are largely responsible to monitor and ensure their own compliance

Explanation:

if the price elasticity of demand for razors is 0.32, the demand for razors is

Answers

Razor demand is inelastic if the price elasticity of demand is less than 0.32.

Price elasticity is defined.

The degree to which consumer behaviour is influenced by price changes is known as price elasticity of demand.

Mathematically, it is expressed as: Price Elasticity of Demand = % Change in Demanded Quantity % Change in Price.

Price elasticity is a measurement of how responsive a product's demand is to price changes. The quantity sought after a product would increase 15% in response to a 10% price fall, for instance, and the price elasticity of demand would be 1.5.

The four different types of elasticity include price, cross, income, and demand elasticity.

A price change causes an elastic demand to suffer a large change in amount desired. Demand is said to be inelastic when it does not significantly alter in response to a price change.

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PLS HELPPPPP MEEE FAST

Answers

Answer:

Explanation:

the price of the domestic currency with respect to another currency.

so  a

Verizon Wireless recently ran a pricing trial to estimate the elasticity of demand for its services. The manager selected three states that were representative of its entire service area and increased prices by 5% to customers in those areas. One week later, the number of customers enrolled in Verizon’s cellular plans declined 4% in those states, while enrollments in states where prices were not increased remained flat. The manager used this information to estimate the price elasticity of demand for Verizon and, based on her findings, immediately increased prices in all market areas by 5% in an attempt to boost the company’s 2020 annual revenues. One year later, the manager was perplexed because Verizon’s 2020 annual revenues were 10% lower than those in 2019: the price increase apparently led to a reduction in the company’s revenues.


Did the manager make an error? Explain.

Answers

Yes, it is likely that cell phone elasticity is considerably greater in the long run than in the short term.

How do cell phones work?

A cellular phone is a type of telecommunication that uses radio waves to send calls over networked areas (cells) and is supported by a base station or cell site at a fixed location. This allows calls to be transmitted wirelessly over long distances to fixed landlines or the Internet.

In this networked system, a cell phone is recognized as a mobile system made up of the hardware and SIM card that actually allows a mobile phone number. Cellphone, mobile phone, and cellular are other terms for cellular phones.

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which of the following trends is not accurate? which of the following trends is not accurate? margin for original parts is flat replacement parts are accounting for an increasing percentage of net sales net income as a percentage of revenue is decreasing margin for replacement parts is increasing

Answers

Option A is correct. "Margin for original parts is flat" is not accurate trend.

What is Inaccurate Trends In Sales?

A pattern or prediction in sales that is not backed up by factual information or proof is referred to as an erroneous trend in sales. This could happen for a variety of reasons, including false assumptions about the state of the market, erroneous forecasting techniques, or a lack of comprehension of consumer behavior. For instance, it would be deemed an erroneous trend if a business predicted that demand for their product would rise at a specific rate, but sales data revealed otherwise. Additionally, it would be deemed an erroneous trend if a corporation believed that their original parts margin was steady while in fact it was declining or rising.

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Which financial statement provides information about a point in time

Answers

The Balance Sheet is a financial statement that provides information about a point in time.

The balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. It is sometimes called the "statement of financial position" or "statement of financial condition". The balance sheet presents the company's financial position and gives an overview of the company's assets, liabilities, and equity. This financial statement reflects all the financial transactions of the company that have occurred up to the date the balance sheet is prepared. It also helps to measure the company's liquidity, solvency, and financial health.

Answer:

Explanation:

which situation is an example of "cultural context" in the transactional model of communication?

Answers

"You prefer being direct and are giving a presentation for your branch in Japan" is an example of "cultural context" in the transactional model of communication.

What do you mean by Transactional model?

The transactional model is a data processing model that emphasizes the use of transactions to ensure the consistency and accuracy of data. Transactions are a sequence of operations that are atomic, consistent, isolated, and durable. The transactional model ensures that all operations within a transaction are executed completely, or none are executed at all. This ensures that the data remains consistent, and that any errors that occur during the transaction are handled appropriately.

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Based on the previous graph, total surplus in the absence of international trade is_____ million.

Answers

brent peterson for president

Suppose you are a top executive of a home-improvement chain, and you want to launch a new company website. Provide examples of activities you would carry out during each step to create this site.

Answers

Answer:

Planning:

Defining the goals and objectives of the website, such as increasing online sales or improving customer engagement

Identifying the target audience and their needs

Researching and analyzing competitors' websites

Creating a project plan and timeline

Design:

Creating a wireframe or prototype of the website layout

Choosing colors, fonts, and other visual elements

Designing any necessary graphics or images

Ensuring the website is user-friendly and easy to navigate

Development:

Building the website using HTML, CSS, and JavaScript

Implementing any necessary features such as a shopping cart or customer account management

Integrating the website with other systems such as inventory management or payment processing

Testing the website to ensure it is functional and responsive on different devices

Deployment:

Securing the website by adding encryption and implementing a security protocol

Hosting the website on a server

Configuring the domain name and DNS settings

Conducting a final round of testing and quality assurance

Launching the website to the public

Maintenance:

Monitoring the website for any issues or bugs

Making updates and improvements as needed

Backing up the website data

Keeping software and security protocols up-to-date

Tracking website analytics to measure performance and make data-driven decisions.

1a) Explain how a consumer market is determined.
1b) Give two examples of consumer markets of different size.
2a) Explain how a business market is determined.
2b) Give two examples of business to business markets of different size.
(PRINCIPLES OF MARKETING)
Pls help and pls no spam!

Answers

Consumer markets are generally made up of goods that individuals use on a daily basis. A person enters the consumer market if they buy something for their own use.

What is a market, exactly?

Definition: The entire number of buyers and sellers in the area or region under consideration is the market. The region might be the entire planet, or it could be made up of several nations, states, or cities. A market's supply and demand factors determine the worth, cost, and price of the goods sold.

The significance of market definition

In the analysis of mergers and the majority of antitrust proceedings, market definition is a crucial initial step. It does so by establishing the parameters of corporate rivalry.

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After taking this course and learning more about business communication, do some internet research on companies that make communication in the workplace a priority. Find one organization that stands out to you as one that you would be excited to work for.
Name the organization.
What did you discover about this organization and their approach to communication in business?
Share what makes their communication strategy unique or intriguing to you?
What will you look for in organizations you want to work for? What will you look for in managers as you interview with organizations in the future?

Answers

Go-ogle is one of the most sought-after companies in terms of employment. Employees at Go-ogle make a lot of money in addition to enjoying benefits like access to dog parks and coffee cafes.

Why is working for Go-ogle a fantastic opportunity?

It is a popular choice among job seekers since the company provides its employees with cutting-edge tools and technology as well as a friendly work atmosphere. It is a popular choice because of its career progression opportunities, competitive pay structure, and other perks.

In addition to having flexible hours, It allows its employees to work remotely for up to four weeks every year. A "work-from-anywhere week" is an employee advantage that allows them to bring their work with them wherever they go.

What is the communication method it employs?

It provides several different ways to communicate, such as social networking, text messaging, videos, and email. The benefit of using it for some of your communication needs is that all of the tools can be accessed with a single username, and information is integrated between them without any gaps.

Why do you want to work for your business?

Express your pas-sion for the goals, goods, and services of the business. Employers want to know that you are pas-sionate about their job, whether it is a service, a mission, a brand, or a combination of these. The organization's guiding values, which are typically posted on its web-site, may help you connect your pas-sion to the organization.

What traits should I evaluate while interviewing a manager?

A person like this might be emotionally intelligent, well-organized, inspiring, or a gifted speaker. To be able to describe a manager who would work well in that environment, you should take the time to study the organizational structure of the company and where your desi-red position would lie within it.

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Identify a company that could benefit from better use of social media.

Answers

Food industry such as (random fast food place) as not only will they be able to have a physical store but they’ll also be able to promote their products online and build an online community

if the marginal propensity to consume is 0.7, then a $200 increase in disposable income leads to a increase in consumption

Answers

In this case, if the MPC is 0.7, then when disposable income increases by $200, aggregate consumption increases by $140 (0.7 x 200). The marginal propensity to consume (MPC) is the ratio of the change in consumption to the change in disposable income.

This is because part of the additional income will be spent on goods and services, while the remaining part will be saved. This increase in consumption will stimulate the economy and lead to increased employment and output. This increased output will cause the creation of additional income, which will then lead to further increases in consumption and economic activity.

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​The presence of increasing opportunity costs gives rises to production possibilities schedules that are:
A) Downward sloping straight lines
B) Upward sloping straight lines
C) Bowed outward from the diagrams origin
D) Bowed inward toward the diagrams origin

Answers

Production opportunities costs bow outward from the diagram's origin due to the presence of rising opportunity costs.

The potential benefits that a person, investor, or business forgoes while choosing between two possibilities are known as opportunity costs. Opportunity costs can be easily disregarded since they are by nature invisible. By considering the opportunities that can be missed when a business or individual chooses one investment over another, better decisions can be made. Opportunity cost is the value of what you give up while choosing from two or more options. You make a decision despite any potential drawbacks because you think it will benefit you more in the long term. Your investment choices will nearly always results in either immediate deficits or future gains due to opportunity cost.

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select all that apply which of the following workplace satisfaction facets are measured by the job descriptive index? multiple select question. promotion satisfaction emotional satisfaction coworker satisfaction pay satisfaction

Answers

According to the value-percept theory, the employer is in charge of maintaining employee job satisfaction.

Ellickson and Logsdon's study found that, out of the 14 variables they looked at, departmental pride had the biggest influence on overall work satisfaction.The value-percept theory of job satisfaction states that regardless of how satisfied we are with our coworkers, the manager to whom we report, our opportunities for growth, or our pay, we are motivated by the task we do.

This idea holds that when an employee's predetermined goals are achieved, they are satisfied with their jobs. As a result, when they get more of the outcomes they value, the employee is happier; conversely, when they get less of the outcomes, they are less happy.

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techniques for customers driven marketing for bakery business

Answers

There are several techniques that a bakery business can use to implement a customer-driven marketing strategy:

Market research: Conducting market research can help a bakery business understand the needs and preferences of their customers, as well as identifying potential new customers. This can include surveys, focus groups, and online research.

Product development: Using customer feedback, a bakery business can develop new products that meet the specific needs and preferences of their customers.

Personalization: Personalizing products and services for customers can help to create a sense of loyalty and increase customer satisfaction. This can include customizing products, offering customized gift boxes, or creating a loyalty program.

Customer service: Providing excellent customer service can help to establish trust and loyalty with customers. This can include offering a friendly and welcoming atmosphere, being attentive to customer needs, and promptly addressing customer complaints.

Social media: Utilizing social media platforms can help to connect with customers and build a strong online presence. This can include creating a social media account, regularly updating it with new products, special promotions and engaging with customers through comments and direct messaging.

Community engagement: Participating in community events and supporting local causes can help to build a positive reputation and increase brand awareness.

Referral Marketing: Encourage satisfied customers to refer friends and family to your bakery business by offering incentives such as discounts or rewards.

By implementing these techniques, a bakery business can create a customer-driven marketing strategy that is tailored to the needs and preferences of their customers.

also the company incurred $14,000 of employee benefits cost. since these overhead costs are driven by the use of labor they are allocated to the products based on the direct labor dollars. based on this information alone the total cost of making chairs is.

Answers

Since these overhead costs are driven by the use of labor they are allocated to the products based on the direct labor dollars. based on this information alone the total cost of making chairs is $24,400.

The correct answer is option(c).

Calgary Manufacturing company makes chairs and desks. The following costs were incurred in making its products during its first year of operation. The total cost of making chairs cannot be determined from the information provided alone.

In order for the total cost of making chairs to be determined, additional information must be provided, such as the direct labor cost associated with making the chairs and the number of chairs produced. Once this information is known, the $14,000 of employee benefits cost can be allocated to the chairs based on the direct labor dollars, and the total cost of making chairs can be calculated.

Total cost of chairs = $4,000 materials + $12,000 labor + $8,400 overhead = $24,400

"Calgary Manufacturing Company Makes Chairs And Desks. The Following Costs Were Incurred In Making Its Products During Its First Year Of Operation. Chairs Desks

Calgary Manufacturing company makes chairs and desks. The following costs were incurred in making its products during its first year of operation.

Total cost is the phrase used to describe the total cost of ownership, which takes into account an asset's initial purchase price as well as the costs of continuous operations, maintenance, and repairs.

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The question is incomplete the complete question is:

Also the company incurred $14,000 of employee benefits cost. Since these overhead costs are driven by the use of labor they are allocated to the products based on the direct labor dollars. Based on this information alone the total cost of making chairs is.

a. $16,000.

b. $30,000.

c. $24,400.

d. None of the answers is correct.

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