When deciding how to fulfill a purchasing need, a business would most likely find making the product on on its own to be the best option when ________
A) the business does not have the capacity to produce the product
B) the product is expected to have rapid technological change
C) the business wants to retain a competitive uniqueness
D) the product is expected to need frequent servicing
E) the product is expected to undergo rapid changes
C
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Kalliste, Inc. completed Job C50. Job C50 required $3,000 of direct materials cost, $2,000 of direct labor cost, and $600 of allocated manufacturing overhead. Provide the journal entry needed to record completion and transfer of the job
What will be an ideal response
Magnetic Attractions Inc a web-based dating company, needs to raise capital to finance an expansion in their business. The company is trying to decide between borrowing or issuing more equity
Selected financial information is provided in the table below. The current capital structure is shown in the column labeled "Current." Under Option E, they will sell 200 new shares at the current price. Under Option D, they will borrow $160 at 6.25% and no new equity will be issued. There are currently 400 shares outstanding, and the firm is debt-free. The tax rate is 40%. To help Magnetic Attractions with its decision, what is the EBIT-EPS indifference point? Magnetic Attractions Inc Current Option E (Equity) Option D (Debt) Debt 0 $0 $160 Interest 0 $0 $10 Tax Rate 40% 40% 40% Price $0.80 N/A N/A Shares Outstanding 400 600 400 A) $32 B) $48 C) $16 D) $30 E) $28