Reference no: EM131262357
Faulk Company has noticed considerable fluctuation in its shipping expense from month to month, as shown by the data below:
Total
Units Shipping
Month Shipped Expense
January........... 40............... $210
February.......... 77............... 364
March.............. 52............... 260
April.................. 20............... 180
May.................. 36............... 226
June................. 60............... 315
July.................. 80............... 360
a) Using the high-low method, determine the cost formula for shipping expense.
b) If Faulk ships 74 units during a month, what would you expect total shipping expense to be?
|
How will the shareholder be taxed
: Green Corporation (a calendar year taxpayer) had a deficit in accumulated E&P of 250000 at the beginning of the current year. Its net profit for the period January 1 through July 30 was 300000, but its E&P for the entire taxable year was only 40000. ..
|
|
After-tax returns will be generated from the project
: The Management of Ink’s Inc. is evaluating the following investment opportunity which will cost the firm $81,383.53 if undertaken. In addition, it is projected that the following after-tax returns will be generated from the project. What will the NPV..
|
|
Based on the payback method of analysis
: Each of the following investment opportunities would cost $55,000. Using the following information, calculate the payback period for each proposed investment. In addition, which project would you select based on the payback method of analysis? Why? F..
|
|
How is firms weighted average cost of capital utilized
: Pilot Corporation has the following current capital structure, which is considered optimal: Pilot is paying interest at a rate of 12% on its’ outstanding loans, a 10% rate of return on its’ outstanding bonds, a 12% rate of return on its’ preferred st..
|
|
Determine the cost formula for shipping expense
: Faulk Company has noticed considerable fluctuation in its shipping expense from month to month, as shown by the data below: Using the high-low method, determine the cost formula for shipping expense. If Faulk ships 74 units during a month, what would..
|
|
Net income-total manufacturing costs added this period
: The following information pertains to Mitchell, Inc.: Raw Materials-Beginning Inventory $ 10,400 Raw Materials-Ending Inventory 12,400 Work in Process-Beginning Inventory 10,600 Work in Process-Ending Inventory 8,000. Calculate the following amounts:..
|
|
Which investment is an effective hedge
: A company with a short term commercial paper liability at an interest rate of 3% must refinance this liability in 90 days, and wants to hedge against the possibility that interest rates will be higher at that time. If the interest rate on U.S. Treasu..
|
|
Minimum expected annual revenue of the project
: A mining project has an initial cost of $875,000 with operating costs of $400,000 per year decreasing $10,000 each year. What should be the minimum expected annual revenue of the project if the entire operation is evaluated at a Future Worth of $2 25..
|