During Heaton Company's first two years of operations, the company reported operating profit as follows (absorption costing basis)
Year
Year 2
Revenge 25
C1000 000 C1250000
Less cost of goods sold
Beginning inventory
90.000
Add cost of goods manufactured (1)
810.000
810.000
Goods available for sale
10.000
900.000
Less ending inventory to 18)
90.000
Cost of goods sold
720.000 500.000
Gross margin
280.000
350 000
Loss selling and administrative expenses 210 000 230000
Operating profit
6.70000
120 000
O
2
including £130,000 of fixed selling and administrative expenses
The companys £18 unit product cost is computed as follows:
Direct mat
Doctor
Variable manufacturing overhead
.
manufacturing overhead 270.000/45.000 unit)
Un productos
C
Production and cost data for the two years are:
Yeart Year 2
Un produced 45.000 45.000
Un sold 40.000 50.000
Required
1- Prepare a statement of profit or loss for each year in the contribution format using
variable costing

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

Which are the best examples of costs that should be considered when creating a project budget?

Advanced enterprises reports year-end information from 2018 as follows: sales (160,250 units) $968,000 cost of goods sold 641,000 gross margin 327,000 operating expenses 263,000 operating income $64,000 advanced is developing the 2019 budget. in 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. all other operating expenses are expected to remain constant. assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. should advanced increase the selling price in 2019?