Variable factory overheads are estimated to be $1,200,000 per month, when 1,000,000 pounds of various products are produced. the plant employs 20 chemical workers who typically work 175 hours each per month and are paid $24 per hour. other workers are classified as indirect and are included in fixed overheads. the highly automated plant typically runs 21,000 machine hours per month. the preparation of one 100 lbs batch of xentra needs ten minutes of direct labor and 75 minutes of machine time. fixed manufacturing overheads total $3,500,000 per month. forty percent of these fixed manufacturing overheads are labor-related costs and the balance are machine-related costs. a government agency wants to purchase 200 drums of xentra at cost plus a flat fee. which allocation method gives the profit-maximizing result?

For many years, kellogg's frosted flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. tony the tiger, a cartoon character, extolled frosted flakes, and advertisements depicted children enjoying the product with tony in competitive situations. recently, in response to declining sales of frosted flakes, the cereal maker has adopted a new series of advertisements that show adults admitting that they enjoy frosted flakes, too. kellogg's is attempting to

Abusiness cycle reflects in economic activity, particularly real gdp. the stages of a business cycle

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu