Neubert corporation manufactures and sells a single product. the company uses units as the measure of activity in its budgets and performance reports. during december, the company budgeted for 5,300 units, but its actual level of activity was 5,340 units. the company has provided the following data concerning the formulas used in its budgeting and its actual results for december: data used in budgeting: fixed element per month variable element per unit revenue - $ 30.00 direct labor $ 0 $ 3.50 direct materials 0 10.40 manufacturing overhead 33,300 1.50 selling and administrative expenses 25,000 0.50 total expenses $ 58,300 $ 15.90 actual results for december: revenue $ 156,340 direct labor $ 17,980 direct materials $ 56,566 manufacturing overhead $ 41,040 selling and administrative expenses $ 28,870 the manufacturing overhead in the flexible budget for december would be closest to: garrison 16e rechecks 2018-06-07 a. $41,350 b. $40,733 c. $41,250 d. $41,310.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. ( t or f)