Answer:
a) the fire and all the events that are related to it should decrease Roybus's stock by $5.50
b) The market is pretty quick to adjust to bad news, specially when they are single isolated events. There is a minimum chance that you might be able to make some money by selling your stocks to someone that hasn't heard about the fire and its negative consequences (not a regular trader or outside the market), but it would be extremely rare for it to happen. When such extraordinary events happen, it is common for stocks to be traded after market hours, so when the market opens the next day, the price will already be adjusted.
Explanation:
the total decrease in Roybus's market value = ($175,000,000 / 1.126) + ($61,000,000 / 1.126²) = $155,417,407 + $48,111,960 = $203,529,367
the decrease will negatively affect stock price by -$203,529,367 / 37,000,000 stocks = -$5.50 per stock
Waupaca Company establishes a $450 petty cash fund on September 9. On September 30, the fund shows $185 in cash along with
Complete Question:
Waupaca Company establishes a $450 petty cash fund on September 9. On September 30, the fund shows $185 in cash along with along with receipts for the following expenditures: transportation-in, $40; postage expenses, $120; and miscellaneous expenses, $80. The petty cashier could not account for a $25 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $600.
Answer:
Waupaca Company
Journal Entries:
September 9:
Debit Petty Cash Account $450
Credit Cash Account $450
To record the establishment of the petty cash fund.
September 30:
Debit Freight-in $40
Debit Postage Stamps $120
Debit Miscellaneous Expenses $80
Credit Petty Cash account $240
To record the expenses from petty cash fund.
Debit Shortage $25
Credit Petty Cash account $25
To record the cash shortage incurred.
October 1:
Debit Petty Cash account $415
Credit Cash Account $415
To record the increase of the petty cash fund to $600.
Explanation:
September 9: Petty Cash Fund = $450
September 9 to 30: Expenses:
Transportation-in, $40
Postage expenses, $120;
Miscellaneous expenses, $80 $240
Balance supposed to $210
Cash in hand $185
Shortage $25
b) The petty cash fund operates on the petty cash system, whereby a fund is earmarked for petty cash expenses. This fund is called the float or the petty cash imprest. At the end of a month, the incurred expenses are summed so that the petty cashier can be reimbursed with the actual expenses made to restore the float. This amount of the imprest can also be increased or reduced at any time, depending on management discretion.
A stock has an expected return of 10.8 percent, the risk-free rate is 4 percent, and the market risk premium is 5 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
β = 1.36
Explanation:
Expected return = Rf+β×Rp
Rf is risk free return
Rp is risk premium
β is Beta
10.8% = 4%+β×5%
5*β= 10.8% - 4%
β = 6.8%/5%
β = 1.36
Hence, the Beta of this stock = 1.36
Eric left high school to work in a factory where he has been for the last 9 years. He married at 19 and has two children. He is unhappy and cynical. He doesn't like working hard to make purchase decisions so he waits until a product is easy to find before he buys.
A. EA
B. EM
C. I
D. L
E. LM
Answer: D. L
Explanation:
Eric is a Laggard. A Laggard is one of the 5 Adopter categories when it comes to new products in the market. These categories define people in terms of when they adopt a product as well as why.
Laggards are the last group to adopt a product. They do not like change and as such will only adopt a product when it is forced on them on when they have no choice because the product is so widespread that everyone is using it. Eric prefers to make a purchase only when it is easy to find. That is when the product has become quite widespread which is during the Laggard adoption stage.
Krystal is 47 years old and single. She is a high school principal, making $75,000 a year. She currently owns a 401(k) valued at $85,000. Krystal would like to retire at age 65 with $1.2 million in her retirement nest egg. She plans to contribute $12,000 a year to her retirement fund, growing at 10%.Required:a. Will Krystal reach her goal? Justify your answer by using the Investment Calculator on Foundations U b. If she won't reach her goal, what needs to change in order for her to reach it? c. Is it really possible to get 10% growth in an investment fund? How?
Answer:
a) Krystal's account balance when she is 65:
$75,000 x (1 + 10%)¹⁸ = $416,993.80
$12,000 x 45.599 (FV annuity factor, 10%, 18 periods) = $547,188
total account balance = $964,181.80
Krystal will not reach her goal.
b) she need to save $1,200,000 - $964,181.80 = $235,818.20
she will need to save an extra $235,818.20 / 45.599 = $5,171.57 per year
her total contributions per year = $12,000 + $5,171.57 = $17,171.57
c) The historical growth rate of the S&P 500 is 12%, so it is really possible to earn at least 10%. Maybe the stock market is not going well right now, but you must remember that retirement accounts are long term accounts and last for many years. The market will have time to bounce back.
Transactions that do not involve the original issue of securities take place in _________. A. primary markets B. secondary markets C. over-the-counter markets D. institutional markets
Answer:
B. secondary markets
Explanation:
The secondary market is the market in which the original issue of securities does not take place that means only existing securities are taken place i.e traded like purchase and sale of securities but not new one only existing one.
Therefore according to the given options, option B is correct
Hence, the other options are wrong
Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: a. Increase in merchandise inventory b. Increase in prepaid expenses c. Depreciation of fixed assets d. Gain on disposal of fixed assets e. Amortization of patent f. Increase in notes payable due in 120 days to vendors g. Increase in accounts payable h. Decrease in wages payable i. Decrease in notes receivable due in 60 days from customers j. Decrease in accounts receivable k. Loss on retirement of long-term debt
Answer:
The answer is
A - Deducted
B - Deducted
C - Added
D - Deducted
E - Added
F - Added
G - Added
H - Deducted
I - Added
J- Added
K - Added
Explanation:
Rule:
Increase in liability will be added to net income while decrease in liability will deducted from net income.
Increase in asset will be deducted from net income while decrease in asset will be added to net income
A - Deducted
B - Deducted
C - Added
D - Deducted
E - Added
F - Added
G - Added
H - Deducted
I - Added
J- Added
K - Added
Select the correct answer.
What does a production possibilities curve represent?
ОА.
a combination of price and demand of goods and services
B.
a combination of the goods produced before and after a change in a factor of production
Ос.
a combination of two factors of production used to produce a single good or service
OD
a combination of two goods that can be produced using limited resources
The statement that describes what a production possibility curve represent is: D.
What is Production Possibility Curve?Production possibility curve can be described as that which shows the quantity of two products that can possibly be produced if both products are to depend on the same resources for production to occur.The image attached below shows a typical production possibility curve.Therefore, the statement that describes what a production possibility curve represent is: D.
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"Which of the following are covered under the Securities Exchange Act of 1934? I Registration of new issues II Stabilization of new issues III Registration of exchanges IV Registration of broker/dealers"
Answer: II. stabilization of new issues
III. registration of exchanges
IV. registration of broker-dealers
Explanation:
The Securities Exchange Act of 1934 was put in place in order to be in charge of security trading.
From the options, those that are covered under the Securities Exchange Act of 1934 include the stabilization of new issues, the registration of exchanges and the registration of broker/dealers.
It should be noted that the Securities Exchange Act of 1934 does not cover the registration of new issues.
Assume Division 1 of the XYZ Company had the following results last year. Sales $5,000,000 Operating income 1,000,000 Total assets (average) 10,000,000 Current liabilities 500,000 Management's required rate of return is 8% and the weighted average cost of capital is 6%. Its effective tax rate is 30%. What is the division's economic value added?
Answer:
Economic Value was $130,000
Explanation:
As we know that:
Economic Value Added = Net Operating Income after tax - (WACC * Capital Employed)
Here
Operating Income After Tax is $700,000 (Step1)
WACC is 6%
Capital Employed is $9,500,000 (Step2)
By putting values, we have:
EVA = $700,000 - 9,500,000 * 6%
EVA = $700,000 - $570,000
EVA = $130,000
Step1: Operating Income After Tax
Simply deduct the 30% tax share from the operating income to arise at Net Operating Income After Tax.
Mathematically,
Net Operating Income After Taxes = Operating Income *(1 - Tax Rate)
Here
Operating Income is $1,000,000
Tax Rate is 30%
By putting values, we have:
Net Operating Income After Taxes = $1,000,000 * (1 - 30%)
Net Operating Income After Taxes = $700,000
Step2: Capital Employed
Capital Employed = Total Assets - Current Liabilities
Capital Employed = $10,000,000 - $500,000
Capital Employed = $9,500,000
You bought a painting 7 years ago as an investment. You originally paid $145,000 for it. If you sold it for $307,000, what is your annual return on the investment
Answer:
11.3%
Explanation:
In this scenario a painting was bought at present value of $145,000 and sold at future value of $307,000. The time is 7 years in the future.
Return on investment is the gain on original cost of a project. A positive return on investment will result in profit of the project.
To calculate annual rate we use the following formula
Present value = Future value (1 + rate) ^ -number of years
145,000 = 307,000 {(1+r) ^ -7}
145,000/307,000 = (1+r) ^-7
0.4723 = (1 + r) ^ -7
1.113 = 1+ r
r = 0.113= 11.3%
Suppose Income Summary received a debit of $75,000 and a credit of $100,000. The net income or net loss for the period must have been:
Answer: Net income of $25000
Explanation:
Suppose Income Summary received a debit of $75,000 and a credit of $100,000, there will be a net income of $25000.
This is because we've a credit of $100,000 and a debit of $75,000 and since the credit is higher than the debit, it shows that there will be a net income.
1. What is occupational education? Show the three differences between medium
and higher level education.
Answer and Explanation:
Occupational education refers to the learning capability of the student according to their interest, skills, knowledge, opportunity that are based on future plans. This represents the positive attitude towards the work and labor
The difference is as follows
Medium level education High level education
1. In this, the person moved 1. In this, the person moved to
to the past entry level but the past entry level also it reached
do not reach to to its end i.e selection
its end i.e selection
2. The person has less knowledge 2. The person has more knowledge
and skills and skills
3. Due to this, the person 3. Due to this, the person is able to
is not able to get high package get high package and opportunities
Cecilia is observing assembly line workers performing their tasks. She's watching to see who they interact with, what machines they use, and how much they are supervised. Cecilia is most likely conducting a:_________.
A) work flow analysis.
B) performance appraisal.
C) job redesign.
D) job analysis.
Answer:
Option D (Job analyses) is the correct choice.
Explanation:
Assessment including its particular characteristics of such a job profile by careful evaluation including a critical review of the systematic tasks, facilities needed, employment conditions, as well as development level in some kind of an employee typically as either a complementary approach towards a job description.Analysis of career helps in understanding which assignments are relevant and how they've been conducted out.Some other options don't apply to the format prescribed. So option D is indeed the right one.
The following legal claims exist for Huprey Co. Identify the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements.1. Huprey (defendant) estimates that a pending lawsuit could result in damages of $1,550,000; it is unlikely that the plaintiff will win the case.a. A liability that is recorded.b. An item described in notes to its financial statements.2. Huprey faces a loss on a pending lawsuit that it is unlikely to lose; the amount is reasonably estimable.a. An item described in notes to its financial statements.b. A liability that is recorded.3. Huprey faces a probable loss on a pending lawsuit; the amount is reasonably estimable.a. An item described in notes to its financial statements.b. A liability that is recorded.
Answer:
Huprey Co.
Identifying the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements:
1. Huprey (defendant) estimates that a pending lawsuit could result in damages of $1,550,000; it is unlikely that the plaintiff will win the case.a. A liability that is recorded.
b. An item described in notes to its financial statements.
2. Huprey faces a loss on a pending lawsuit that it is unlikely to lose; the amount is reasonably estimable.
a. An item described in notes to its financial statements. b. A liability that is recorded.
3. Huprey faces a probable loss on a pending lawsuit; the amount is reasonably estimable.a. An item described in notes to its financial statements.
b. A liability that is recorded.
Explanation:
Huprey Co. will recognize and record contingent liabilities in its accounts when it can be reasonably established that the future event will occur and the amount of the liability can be reasonably estimated. The implication is that Huprey Co. must establish two things before a contingent liability is recognized and recorded. One is that the probability or the likelihood or the chance that the event will happen exists and can be estimated. With the probability estimate, it becomes possible for Huprey Co. to also estimate the amount that the happening of the event will cost it.
IP Company pays for purchases of materials in full in the month following the purchase. During the previous month, IP had purchases of $25,000. During the current month, IP had purchases of $30,000. The amount that I will pay during the current month for purchases is:________
Answer:
The correct answer is "$25,000".
Explanation:
The given values are:
IP purchase during the previous month
= $25,000
IP purchases during the current month
= $30,000
As the sum is charged in the corresponding sales month, IP must compensate for the transaction made mostly during the reporting period throughout the previous quarter.
Therefore the quantity IP will be paying for purchasing mostly during the reporting period seems to be $25,000.
B MC Qu. 7-200 Krepps Corporation produces ... Krepps Corporation produces a single product. Last year, Krepps manufactured 29,010 units and sold 23,900 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $214,674 $121,842 $243,684 $319, 110 Sales totaled $1,159,150 for the year, variable selling and administrative expenses totaled $126,670, and fixed selling and administrative expenses totaled $205,971. There was no beginning Inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending Inventory for the year would be valued at:_________ (Round your Intermediate calculations to 2 decimal places.)
a) $158.410
b) $228.410
c) $219.910
d) $185.910
Answer:
a) $158.41
Explanation:
Unit product cost under absorption costing = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead / Total manufactured units
= (214,674 + 121,842 + 243,684 + 319,110) /29,010
= $899,310 / 29,010 unit
= $31 per unit
Ending inventory = $29,010 - $23,900 / $31
= $5110 * 31 per unit
= $158,410
Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,200 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $24.00 per unit Variable marketing costs $5.00 per unit Fixed manufacturing costs $13.00 per unit Administrative expenses, all fixed $21.00 per unit Ending inventories: Direct materials −0− WIP −0− Finished goods 400 units What is the operating income using variable costing?
Answer:
Net operating profit= 57,800
Explanation:
Giving the following information:
Selling price= $98
Units sold= 1,800
Variable manufacturing costs $24.00 per unit
Variable marketing costs $5.00 per unit
Fixed manufacturing costs $13.00 per unit
Administrative expenses, all fixed $21.00 per unit
First, we need to calculate the total fixed costs:
Total fixed manufacturing cost= 13*2,200= 28,600
Total administrative cost= 21*1,800= 37,800
Variable costing income statement:
Sales= 98*1,800= 176,400
Total variable cost= 1,800*(24 + 5)= (52,200)
Contribution margin= 124,200
Total fixed manufacturing cost= (28,600)
Total administrative cost= (37,800)
Net operating profit= 57,800
Bramble Corp. purchased equipment for $48800. Sales tax on the purchase was $2928. Other costs incurred were freight charges of $732, repairs of $427 for damage during installation, and installation costs of $813. What is the cost of the equipment
Answer:
Cost of equipment = $52,887
Explanation:
According to International Accounting Standards (IAS) 16, property plants and equipment, the cost of land includes all of the cost necessary to bring and make it ready for the intended use.
These costs include purchase cost, fees and commission associated with the purchase transaction.
Here in this question the installation cost, sales taxes and repairs slab all fall within the definition of IAS 16
Hence cost of the equipment
48,800 + 2,928 + 732 + 427 = $52,887
Cost of equipment = $52,887
Just how strong the competitive pressures are from substitute products depends on: Select one: a. Whether the available substitutes are products or services b. The speed with which buyer needs and expectations are changing c. Whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes d. Whether the producers of substitutes have ample budgets for new product R
Answer: c. Whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes
Explanation:
Substitute products are the product that can be used in place of another identical product e.g butter and margarine.
Just how strong the competitive pressures are from substitute products depends on whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes.
___________is a partnership Is also called the articles of incorporation.
a) Is the same as a limited liability partnership.
b) Is not binding unless it is in writing.
c) Is binding even if it is not in writing.
d) Does not generally address the issue of the rights and duties of the partners.
Answer:
c
Explanation:
here is the correct question :
A partnership agreement:
A. Is not binding unless it is in writing.
B. Is the same as a limited liability partnership.
C. Is binding even if it is not in writing.
D. Does not generally address the issue of the rights and duties of the partners.
E. Is also called the articles of incorporation.
A partnership agreement is a contract between partners in a partnership. it contains guidelines on the relationship between the partners and responsibilities of partners. the partnership agreement creates legally binding relationships among the partners
When a financial calculator or spreadsheet program finds a bond's yield to maturity, it uses a trial-and-error process
a. true
b. false
Answer:
zh
Explanation:
When a financial calculator or spreadsheet program finds a bond's yield to maturity, it uses a trial-and-error process. This statement was the truth. Thus, option (a) is correct.
What is error?
The term errors refer to the mistake in the data or the sentence. The sentence was the read are the changes in the correction. The errors are the founding is the process was the called are the proofreading. The errors are the founding to the correct of the spelling, grammar, and the capitalization was the errors.
In the finance calculator estimate, according to trial and error. The bond's yield to maturity was calculated using a simple spreadsheet. A bond's maturity yield is the interest amount that makes the present value of the pledged loan repayments equal to the grant's market price today.
As a result, the statement was the truth. Therefore, option (a) is correct.
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In ________, the producer marks the reduced prices directly on the label or package. These offer consumers savings off the regular price of a product and are very effective in stimulating short-term sales.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Promotional products
b) Coupons
c) Cents-off deals
And the correct answer is the option C: Cents-off deals
Explanation:
To begin with, the term of "Cents-off Deals", in the business and marketing field, refers to the strategy used as a type of sales promotion that focus on the fact of offering a brand at a lower price and that reduction of the price might be on the label of pachage on purpose so the consumers will see it right away when the have the product in hands. Moreover, this type of strategy is very effective in stimulating short-term sales due to the fact that it generates an inmediate reaction in the consumer when they see the offer.
Problems which deal with the direct distribution of products from supply locations to demand locations are called:____________.
a. Transportation problems
b. Assiignment problems
c. Network problems
d. Transshipment problems
Answer:
a. Transportation problems
Explanation:
In Business management, problems which deal with the direct distribution of products from supply locations to demand locations are called transportation problems.
Transportation is a supply chain technique which primarily includes all of the process involved in the distribution of finished goods and services from the production line to the consumers or end users, so as to meet their needs or wants.
A(n) ____ is a computer-based information system designed to help knowledge workers select one of many alternative solutions to a problem.
Answer: decision support system (DSS)
Explanation:
A decision support system better known as (DSS) is a computer based program which is used to support or aid determinations, judgments, and courses of action been taken in an organization or a business. A DSS browses through and analyzes massive amounts of data, thereby compiling comprehensive information which can be used to solve problems and make important decisions in and organization or business.
The Sweet Tooth Restaurant borrowed $3,000 on a note dated May 15 with a simple interest of 11%. The maturity date of the loan is September 1. The restaurant made partial payments of $875 on June 15 and $940 on August 1. Find the amount due on the maturity date.
Answer:
Amount due is $1,256.14
Explanation:
Calculation of the interest to date at time of 1st partial payment
I1=PRT1
I1= 3,000 * 0.11 * 31/360
I1= $28.42
Remaining Principal = Principal + Interest - Payment
P1 = 3,000 + 28.42 - 875
P1 = $2,153.42
Calculation of the interest to date at time of 2nd partial payment
I2 = P1RT2
I1= 2,153.42* 0.11 * 47/360
I1= $30.93
Remaining Principal = Principal + Interest - Payment
P2= 2,153.42 + 30.93 - 940
P2= $1,244.35
Calculation of the remaining interest on the maturity date
I3= P2RT3
I3= 1,244.35 * 0.11 * 0.31/360
I3= $11.79
Amount due = Remaining Principal + Interest
P3= 1,244.35 + 11.79
P3= $1,256.14
Thus, the amount due is $1,256.14
The following information ($ in millions) comes from a recent annual report of Amazon.com, Inc.:Net sales $ 10,711Total assets 4,363End of year balance in cash 1,022Total stockholders' equity 431Gross profit (Sales-Cost of Sales) 2,456Net increase in cash for the year 9Operating expenses 2,067Net operating cash flow 702Other income (expense), net (12)a. Compute Amazon's balance in cash at the beginning of the year.b. Compute Amazon's total liabilities at the end of the year.c. Compute cost of goods sold for the year.
d. Compute the income before income tax for Amazon.
Answer and Explanation:
The computation is shown below:
1. Beginning cash balance is
= Ending cash balance - Increase in cash
= $1,022 - $9
= $1,013
2. As we know that
Assets = Total liabilities + Total Equity
$4,363 = Total liabilities + $431
= $4,363 - $431
= $3,932
3. Gross profit = Net sales - Cost of goods sold
so,
Cost of goods sold = Net sales - Gross profit
= $10,711 - $2,456
= $8,255
4. Income before taxes is
= Revenue - expenses
= $10,711 - $2,456 - $2,067 -$12
= $6,176
precise Machinery is analyzing a proposed project that is expected to sell 1,450 units, +3 percent. The expected variable cost per unit is $139 and the
Answer: C.$221.86
Explanation:
Contribution Margin is the difference between the sales price and the variable costs.
Best case scenario of Sales would mean it is the higher amount.
Best case scenario of costs would mean the lower amount.
Best case Sales
= 349 * ( 1 + 3%)
= $359.47
Best Case Variable Cost
= 139 * ( 1 - 1%)
= $137.61
Best Case Contribution Margin
= Best case Sales - Best Case Variable Cost
= 359.47 - 137.61
= $221.86
Inventory Analysis A company reports the following: Cost of goods sold $347,480 Average inventory 86,870 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
Answer:
a. 4
b. 91.25 Days
Explanation:
a. Inventory Turnover = Cost of goods sold/ Average Inventory
= $347,480 / 86,870
= 4
b. Number of days sales in Inventory = Inventory/ COGS*365
= 86,870 / $347,480 * 365
= 91.25 Days
Identify whether each of the following examples belongs in M1 or M2.
a. Van has $2,500 in a savings account.
b. Paolo has a $10 bill in his wallet.
c. Amy has $7,000 in a six-month certificate of deposit (CD).
Answer: The answer is given below
Explanation:
It should be noted that M1 will be derived as Currency plus the Travelers check while M2 will be M1 plus the certificate of deposit plus the money market account.
a. Van has $2,500 in a savings account.
It should be noted that money in a savings account will have to be included in M2.
b. Paolo has a $10 bill in his wallet.
This fits into the description of both M1 and M2 forms of money.
c. Amy has $7,000 in a six-month certificate of deposit (CD)
The certificate of deposit is included in the M2.
Answer:
Option A is M2
Option B is M1
Option C is M2
Explanation:
The above classifications speak to various categories of money supply.
M1 refers to the supply of money that is composed of physical currency such as notes, coins, demand deposits other checkable deposits, etc.
Simply put, M1 would include forms of money that are liquid or easy to convert into cash.
M2 and M3 which are also known as "near money" and "near, near money," are money types which cannot be converted to currency as quickly as M1.
Another example of M2 is Money Market Mutual Funds. M1 is often included when calculating for M2.
Cheers!
Seven Manufacturing Corporation uses both standards and budgets. The company estimates that production for the year will be 100,000 units of Product Fast. To produce these units of Product Fast, the company expects to spend $600,000 for materials and $800,000 for labor.
Required:
Compute the estimates for a standard cost.
Answer:
Unitary cost= $14
Explanation:
Giving the following information:
Production= 100,000
To produce these units of Product Fast, the company expects to spend $600,000 for materials and $800,000 for labor.
First, we need to calculate the total cost and then the unitary cost:
Total cost= 600,000 + 800,000= $1,400,000
Unitary cost= 1,400,000/100,000= $14
