Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While depa

Response:

The yearly average return stands at 9.6 %

Clarification:

Calculating the average return

Assuming the price per share is 100

                                                       Initial    Growth             Final

                                                         Value            %                   Value

Company A  50 % at 100                5,000              8 %                 5,400

Company B 30 % at 100                 3,000              12 %                3,360    

Company C 20 % at 100                  2,000             10 %                2,200

Total amounts                             10,000                                     10,960

To find the average return, take the increase in value over the base, divided by the base

10,960 -  10,000  =  960/ 10000  = 9.6 % average return

Conclusion: Peter has a remaining amount of $1.25 after he covers the service expenses.

Reasoning:

The total cost for 5/6 of a month amounts to (5/6)*$10.5= 0.83333*$10.5

= $8.75

Thus, the difference between his initial funds and his expense for the service will result in his change.

Change = $10.5-$8.75

=$ 1.25.

I hope this response was helpful.

Answer:

the absorption costing net operating income from the previous year was $41,200

Explanation:

The Absorption Costing Net Operating Income for the last year is calculated by reconciling the Variable Costing Income to the Absorption Costing Income.

Calculation of Absorption Costing Net Operating Income

Variable Costing Income                                             $52,400

Less Decrease in Inventory ( 1,400 × $8)                   ($11,200)  

Absorption Costing Net Operating Income               $41,200

Absorption Costing Net Operating Income will be lower than Variable Costing Income.