Daisy Hernandez sells girls christening dresses through the online store, Etsy. Her customers have asked if she has necklaces that could be included with the dress. Daisy found white glossy ceramic hearts from another Etsy vendor for $20. Daisy has the talent and already has a fully depreciated kiln to make these hearts. A.Using the provided quantitative cost data to make the heart, should Daisy buy from her fellow Etsy vendor or make it herself? B. What qualitative factors would be included in your decision.
Daisy Hernandez sells girls christening dresses through the online store, Etsy. Her customers have asked if she has necklaces that could be included with the dress. Daisy found white glossy ceramic hearts from another Etsy vendor for $20. Daisy has the talent and already has a fully depreciated kiln to make these hearts. A.Using the provided quantitative cost data to make the heart, should Daisy buy from her fellow Etsy vendor or make it herself? B. What qualitative factors would be included in your decision.
Daisy Hernandez sells girls christening dresses through the online store, Etsy. Her customers have asked if she has necklaces that could be included with the dress. Daisy found white glossy ceramic hearts from another Etsy vendor for $20. Daisy has the talent and already has a fully depreciated kiln to make these hearts.
A.Using the provided quantitative cost data to make the heart, should Daisy buy from her fellow Etsy vendor or make it herself?
B. What qualitative factors would be included in your decision.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
Morgan & Co. is currently an all-equity firm with 100,000 shares of stock outstanding at a market price of $30 per share. The company's earnings before interest and taxes are $120,000. Morgan & Co. has decided to add leverage to its financial operations by issuing $750,000 of debt at an 8% interest rate. This $750,000 will be used to repurchase shares of stock. You own 2,500 shares of Morgan & Co. stock. You also loan out funds at an 8% interest rate. How many of your shares of stock in Morgan & Co. must you sell to offset the leverage that the firm is assuming? Assume that you loan out all of the funds you receive from the sale of your stock.
What is the new price after the mark up for this financial accounting question?
Financial Accounting: Tools for Business Decision Making, 8th Edition
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