if marriott used a single corporate hurdle rate for evaluating investment opportunities in each of its lines of business, what would happen to the company over time?

Answers

Answer 1

The company would begin to commence more risky opportunities over time.

This is due to the possibility that a single corporate hurdle rate used to assess investment opportunities may not be reliable. Choosing an incorrect risk premium might be a concern in the hurdle rate calculation.

What is risk in investment?

Any investment-related uncertainty that has the potential to have a negative influence on your financial well-being is referred to be a risk.

For instance, market conditions could influence the value of your investment to increase or decrease (market risk).

What are the types of investment risk?

Common types of investment risk are:

Business risk. Default risk. Inflation risk. Liquidity risk. Opportunity risk. Unsystematic risk.

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Related Questions

Which of the following would use a 1040 tax return form in order to itemize their deductions?

A: The government
B: Small businesses
C: Large corporations
D: Married people with children

Answers

Small businesses  would use a 1040 tax return form in order to itemize their deductions. A person must submit an Income Tax Return (ITR) form to the Indian Income Tax Department. It includes details on the individual's earnings and the yearly taxes owed. Tax refunds and tax returns are not the same thing.

However they are related. For instance, your tax refund may increase depending on the credits and deductions you claim. Additionally, if businesses need to get your anticipated refund quickly, filing online and well in advance of the due date will help. When too much money is withheld from their tax return, the taxpayer gets a refund at the end of the year.

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Katherine invests $7,770 in a six-month money market account giving 5.8% simple annual interest and $12,500 in a three-year cd giving 7.25% simple annual interest. assuming that katherine does not reinvest or renew these investments, how much money will she have when both investments reach maturity, to the nearest dollar? a. $2,944 b. $15,219 c. $23,214 d. $30,886 please select the best answer from the choices provided a b c d

Answers

Katherine will have $23214 to the nearest dollar from both investments by Simple interest assuming that Katherine does not reinvest or renew these investments.

Simple interest = Principal * Time * rate

Money Market Account

Simple interest = 7770 *5.8/100 *6/12 = 7770 * 0.058 * 0.5 = $225.33

So, at maturity, she will receive $7770 + $225.33 = $7995.33.

CD account

12500* 0.0725 *3 = $2718.75 = simple interest

At the end of the period, she receives: $12500 + $2718.75 = $15218.75

At maturity, the total amount she receives from both investments is: $15218.75 + $7995.33 = $23214.08

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Answer:

so its c

Explanation:

when magazines publish special versions of an issue that contain editorial content and advertising geared to a specific demographic or regional grouping, this is known as

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Regulated circulation a method of magazine distribution where readers who satisfy a set of advertiser-attractive requirements receive the publication free of charge. This entails free hotel and airline periodicals.

What are the 3 functions of magazine?

MARKETING OF GOODS AND SERVICES.ENTERTAINMENT.SURVEILLANCE.

Three broad categories of magazine publications are each of which includes more specialized magazines: general interest periodicals specialty publications. professional periodicals.

In general, magazine articles are concise, simple to read, and may have pictures or drawings. A magazine, at its most basic, offers material that may be more in-depth but less current than that of, say, a newspaper. A magazine frequently focuses on trends or concerns and can give context for breaking news.

The best publications not only provide their readers with excellent content, but they also do so in a friendly, conversational manner that builds a connection. An effective editor should leave his or her mark.

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hen significant externalities exist: i. the market equilibrium is no longer efficient. ii. the market equilibrium is only efficient if the externality is an external benefit. iii. social surplus is not maximized. iv. the government will always increas

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When significant Externalities exist the market equilibrium is no longer efficient.

   Externalities create market failure because the pricing equilibrium of a good or service does not fairly reflect the full costs and advantages of that good or service. Equilibrium is believed to create the ideal level of output since it reflects the optimal balance between the advantages for customers and the expenses for producers. When there are considerable externalities, however, the equilibrium level is faulty because incentives are created that lead individual agents to make poor judgments for the community as a whole.

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An e-verify case must be created no later than the end of ___ business days after the employee begins work for pay.

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An e-verify case must be created no later than the end of the third business days after the employee begins work for pay.

E-Verify is an internet-based system that verifies your employment eligibility by comparing the data on your Form I-9 with records held by the Social Security Administration (SSA) and the Department of Homeland Security (DHS) of the United States.

All firms that receive state grants or contracts worth more than $5,000 must use E-Verify, as are all public employers. It is a requirement for several state and federal government contractors to use E-Verify. The contract contains details on the E-Verify requirement. E-Verify is now an option for most firms, but certain states mandate its usage, and the federal government may impose a requirement on some businesses.

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what are four positions that typically make up members of the on-site management team group of answer choices estimator, payroll, human resources, submittals project engineer, foreman, estimator, secretary project manger, superintendent, assistant superintendent, project engineer project engineer, estimator, contract administrator, and payroll

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Three positions that make up the on-site project team are director, deputy superintendent, and field architect.

What is management team?A management team is a group of high-level associates hired by a business owner to take on critical business responsibilities. These are the highest levels of management within a company or business, and each specializes in a different aspect of business management, such as accounting. The Executive Management Team is in charge of managing the Company's core business operations as a whole, which necessitates the planning of various development processes, Group principles, and Group practices, as well as the monitoring of financial matters and Group business plans. A strong management team will ensure that your company's growth is sustained and long-lasting.

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which statement accurately depicts the current growth of the global capital market? multiple choice question. it is growing slowly. it continues to decline. it is growing quickly. it has stagnated in the past decade.

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The statement that is used to accurately depict the current growth rate of the global capital market is that  it is growing quickly.

What is the global capital market?

The global market can be described as the market where savings would have to meet with a lot of investments.

This is the market where the capital is the savings that is made by the private individuals. In this market, capital that is gotten is as a result of funds that would have tp come from hedge funds, pension and other forms of people that are seeking for interests.

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what type of ranking is being used when managers look over a list of employees, decide who is best and cross that name off the list, decide who is the worst employee and cross that name off the list, and then repeat the process?

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The type of ranking that is being used when managers look over a list of employees, decide who is best and cross that name off the list, decide who is the worst employee and cross that name off the list, and then repeat the process is called alternation ranking.

What is alternation ranking?

It is a story of the ranking method used by human resource managers, and this ranking methodology is used to select the worst and the best employees. It is important to mention that a criterion or a trait is being used to assess the employees.

Managers use the alternation ranking method to rank an employee by indicating how much such an employee scores on particular criteria or traits. The higher or lower the score on that criteria, the higher or lower will be the ranking.

It can be concluded that the type of ranking that is being used when managers look over a list of employees, decide who is best and cross that name off the list, decide who is the worst employee and cross that name off the list, and then repeat the process is called alternation ranking.

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assuming a 360-day year, proceeds of $44,732 were received from discounting a $45,997, 90-day note at a bank. the discount rate used by the bank in computing the proceeds was a.9% b.12% c.13% d.11%

Answers

The discount rate used by the bank in computing the proceeds was 9% option A

What is the discount rate?

Generally, The interest rate that is levied on commercial banks and other financial institutions by the Federal Reserve Bank for short-term loans that these institutions take out is referred to as the discount rate.

The interest rate that is employed in discounted cash flow analysis (also known as DCF analysis) to assess the present value of future cash flows is referred to as the discount rate.

The interest rate that a central bank applies to loans and advances it makes to commercial banks is referred to as the bank rate or, in American English, the discount rate.

Discount rate, Let's consider A is the bank discount rate

Net proceeds=Total amount of note - Discounting charges

44,732 =45,997 - (45,997 × A×90/360)

44,732 -45,997= - (45,997 × A×90/360)

A=0.099

A=9% Option A

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assume that a u.s. firm can invest funds for one year in the united states at 12 percent or invest funds in mexico at 14 percent. the spot rate of the peso is $.10 while the one-year forward rate of the peso is $.10. if u.s. firms attempt to use covered interest arbitrage, what forces should occur? group of answer choices

Answers

Invest funds - forces should occur spot rate of peso increases; forward rate of peso decreases.

What is investment funds?
An investment fund is a pool of funds from multiple investors that is used to buy securities collectively while each investor retains control and ownership of his or her individual shares. An investment fund offers a bigger range of investment choices, more management skills, and lower investment fees than individual investors could acquire. Mutual funds, marketplace funds, money markets, and hedge funds are all examples of investment funds. Individual investors do not make judgments about how a fund's assets must be allocated when they invest in investment funds. They just select a fund depending on its objectives, risk, fees, and other considerations.

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Dave receives a salary of $200 a week plus a commission of 10% of his weekly sales. an equation y = m x b represents dave’s weekly earnings. the y-intercept is dave’s base salary. the slope of the line is his commission. write an equation representing dave’s weekly earnings. a. y = negative 0.1 x minus 200 b. y = 0.1 x minus 200 c. y = negative 0.1 x 200 d. y = 0.1 x 200

Answers

Weekly earnings,  y = 0.1x + 200,

Slope = 0.1,

y-intercept = 200

Step-by-step explanation:

Given,

The original salary = $ 200,

Commission percentage on the sale = 10%,

If Dave sold x units,

Thus, the amount of commission for x units sale = 10% of x,= 0.1x

Then, the total earnings = commission for x units + original salary

⇒ y = 0.1x + 200,

∵ the slope of the line y = MX + c is m,

So, the slope = 0.1,

For y-intercept, x = 0,

⇒ y = 200

Thus, the y-intercept is 200.

Price, moreover known as earnings commission, is a fee given to personnel based on the profits they make. Create invoices without spending a dime with SumUp Invoices. The charge is often calculated as a percentage of the fee of a sale.

A income commission is the number of coins that a person gets based on their work. It typically pertains to an income function wherein the character earns a percentage of every sale they make. At times, they may earn this extra money further than their normal income or wages.

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if an organization does not yet have social media content and followers, what can it do to help identify its target markets? more than one answer may be correct.

Answers

Answer:

rattttt

Explanation:

lee wong is a sales clerk at sears. she is paid $8.00 per hour plus a commission of 4% on all sales. assuming lee works 39 hours and has sales of $4,000, her gross pay is:

Answers

Lee Wong gross pay equals $472.

Define gross pay?

Employees' gross pay is their salary before any payroll deductions such as taxes, benefits, and other expenses are made. Net pay, often known as take-home pay, is the amount that is left over after all withholdings have been taken into consideration. The number of hours worked multiplied by the employee's hourly wage can be used to determine the gross wages for hourly workers.

If Lee Wong is paid $8.00 per hour, then for 39 hours, she will get

39 × 8 = $312

He gets 4% commission on all sales. If her sale is $4000, the her commission will be

4000 × 4/100

= $160

Then her total gross income will be $312 + $160 = $472

= $472

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if the fixed costs of opening an internet specialty sporting goods business are $10,000, price is $60 and variable cost per unit of $20, the break-even point is:

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The point at which there are no losses or gains for your small business is known as the break-even point. This point is reached when total costs and revenue are equal.

To put it another way, you have reached the point where a product's revenues and costs of production are equal.

How is the break-even point determined?

The break-even point in accounting is determined by dividing the price per unit by the fixed costs of production minus the variable costs of production. The point at which a product's production costs and revenues are equal is known as the break-even point.

Fixed Costs = $10,000

Price =  $60

Variable Costs = $20

$10000 ÷ ($60 - $20)

= $10000 ÷ ($40)

= $240

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explain how a change in the money supply can affect the following in the short run: a. the supply of loanable funds b. real gdp c. the price level d. the expected inflation rate

Answers

The real GDP is affected by a change in the money supply can affect the following in the short run.

Define real GDP.

Real GDP is a macroeconomic metric that accounts for inflation and quantifies the worth of the products and services generated by an economy over a given time period. A country's gross domestic product that has been accounted for inflation is known as real GDP. Real gross domestic product (GDP), which refers to the volume level of GDP, is GDP expressed at constant prices. By quantifying the values of all the goods and services produced in a given year in terms of a base period, one can derive constant price estimates of GDP.

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the following information is available: units in process, dec. 1 (60 percent converted)2,200units units in process, dec. 31 (30 percent converted)1,100units units started during the month8,250units materials are added at the beginning of the process. how many equivalent units in process for conversion were there in december using the weighted average method

Answers

The equivalent units in process of conversion are equal to 8580 units.

The process of converting raw materials into finished goods involves many steps and there should be a proper check on the manufacturing process. There should be a keep on the units available, the units used, and the units left. According to the question,

beginning work in process units = 2200

units started in process = 8250 units and

total units to account for = 2200 + 8250 = 10450 units.

Now, the equivalent units can be calculated as

Units completed is given by 8250 units which are 100% completed that is

(100/100) × 8250 = 8250 units.

Ending work in process is 1100 units which are 30% completed that is

(30/100) × 1100 = 330 units.

Now, the total equivalent units will be

8250 + 330 = 8580 units

Only 8580 units are equivalent units from 10450 available units.

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to understand what items are most likely to sell from on-campus vending machines, a company distributes surveys and holds a few focus groups of vending machine users on different campuses. the company is in what step of the marketing research process?

Answers

The company is in data collection step of the marketing research process

      Data collection in marketing research is a meticulous process in which the researcher conducts a planned search for all pertinent data. Quantitative research quantifies the data and extrapolates population-wide conclusions from a sample. Data can be gathered for quantitative research using one of two techniques: Methods of survey and observation.

    This approach is to use numerical data and show facts or find patterns in the research. In essence, quantitative research is more objective whereas qualitative research is more subjective.  

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otb mc qu. 6-39 (algo) assume the following information for a... assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: per unit per year selling price $ 200 direct materials $ 78 direct labor $ 50 variable manufacturing overhead $ 11 sales commission $ 8 fixed manufacturing overhead $ 300,000 using absorption costing, what is the cost of goods sold for the second year of operations? multiple choice

Answers

Using absorption costing, the cost of goods sold for the second year of the company's operations is A. $1,690,000.

What is absorption costing?

Under absorption costing, the cost of goods sold includes the variable and fixed manufacturing costs.  Other expenses are treated as period costs and deducted from the gross profit.

The cost of goods sold can be computed as the costs of beginning inventory and production minus the cost of ending inventory.

However, since the company's per-unit sales price and costs were the same for the first and second years, and there was no ending inventory in the second year, the cost of goods sold becomes a straightforward calculation as below.

                              First Year  Second Year

Beginning inventory   0               2,000

Production units =   10,000         8,000

Sales units                8,000        10,000

Ending inventory      2,000             0

                                                  Per Unit        Total

Selling price                                 $200    $2,000,000

Direct materials                              $78

Direct labor                                    $50

Variable manufacturing overhead $11

Total variable cost                       $139     $1,390,000

Fixed manufacturing overhead                 $300,000

Total manufacturing cost                        $1,690,000

Sales commission                            $8          80,000

Cost of goods sold = $1,690,000 (10,000 x $139 + $300,000)

Thus, the absorption cost of goods sold in year two is Option A.

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Question Completion with Answer Options:

A. $1,690,000

B. $1,390,000

C. $1,770,000

D. $1,310,000

despite the fact that conventional mortgages offer fixed payments, some borrowers will select an adjustable rate mortgage over a conventional mortgage because:

Answers

Despite the fact that conventional mortgages offer fixed payments, some borrowers will select an adjustable rate mortgage over a conventional mortgage because "the adjustable rate mortgage features lower starting payments".

Adjustable-rate mortgages (ARMs), often known as variable-rate mortgages, feature an interest rate that fluctuates based on changes in a comparable financial index linked to the loan. In general, if the index rate rises or falls, your monthly payment will rise or fall.ARMs, on the other hand, expose borrowers to increased monthly payments once the introductory term expires. The interest rate will then alter at regular periods, usually every year or six months.The ARM can be adjusted. So, while it may start off cheaper, it is not certain to stay that way. In fact, if your interest rate rises, your payments could skyrocket. You may end up with significantly higher overall interest costs than if you had taken out the fixed-rate loan.

Thus this is the meaning of mortgage.

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g stock e is expected to pay a dividend of $1.78 one year from today. at that time, the price of stock e is expected to be $92. today, stock e's expected return is 8%, and it is overpriced by $6.33. calculate stock e's required return

Answers

​The necessary return for stock e is 59%.

 

The stock's required return defines as,

E(R)=RFR+β stock×(R market −RFR)

=0.08+1.78 ×(.92−.063)

=59%

Define The Required Rate of Return (RRR)?

The minimal profit (return) an investor will seek or expect in exchange for taking on the risk of investing in a stock or other type of security is known as the required rate of return (RRR).

RRR can also be used to determine a project's potential profitability of its funding costs. RRR denotes the degree of risk associated with committing to a particular project or investment. The level of risk increases as the return increases.

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. what would be the value of the bond described in question a. if, just after it has been issued, the expected inflation rate rose by 3 percentage points, causing investors to require a 13 percent return? would we now have a discount or a premium bond

Answers

The bond's value is $837.213, and it is a discount bond or a premium bond

Solution

Due to that

13%, which is higher than the coupon rate, represents the rate of return.

This indicates that investors expect a return that is greater than the return offered by bonds. As a result, the bond's value drops and it turns into a discount bond.

Now,

Listed below is the bond's value:

[Coupon rate in year 1 / (1 + Investor return)] = Bond value

(1 + Investor return) / (1 + Coupon rate in year 2)

[1 + Investor return / 2 + Coupon rate in year n] Par value + (Investor Return + Par Value)n

Thus,

= [ $100 / (1 + 0.13)1 + $100 / ( 1 + 0.13)

2... $100 / ( 1 + 0.13)10 ] + $1000 / ( 1 + 0.13 ) 10

= $542.62 + 294.58

= $837.21

Bond value will be $837.213.

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the nasdaq system lists massbank company currently trading at bid price $15.50 and offer price $15.90. how much commission a dealer will receive if 100 shares are traded?

Answers

An individual becomes a shareholder in your business when they purchase shares. Shareholders decide who manages a corporation and participate in important decisions like whether a company should be sold.

Explain about the Shares?

Rights Entitlement (RE) refers to the privileges granted by a firm to its current shareholders to purchase additional shares of stock or other securities under a rights offer

Shareholders are investors who possess stock in a corporation. For instance, if a company's market capitalization is Rs.10 lakh and each share is priced at Rs.10, then 1 lakh shares will be issued.

Companies sell stock to raise funds for operating expenses. These shares reflect ownership in the company and confer ownership rights on the holder. The shareholder receives a specified number of rights by acquiring shares.

For a trade involving 100 shares, the total commission would be $40

(100 * 0.4).

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key characteristics of the maturity stage are which two of the following? multiple select question. marketing costs are directed at holding market share. intense competition on price occurs. buyers enter the market at a rapid pace. many new competitors enter the market. revenues begin to increase rapidly.

Answers

The key characteristics of the maturity stage are :

intense competition on price occurs.marketing costs are directed at holding market share.

What is the maturity stage of the product life cycle?

The maturity stage can be described as the stage in the product life cycle which is the stage that can b found after the introduction and growth stages.

It should be noted that this maturity stage serves as the stage that is been considered as the longest stage that can be attributed to the product life cycle.

In conclusion, in this stage  in the organization or the firm, the sales growth begins to decline because as at this stage the production as well as the selling of the goods as well as the services will now be at its peak as a result of this there will be no available new customer to patronize and the production of the goods will be at the stage where there will be no improvement and there will be no increase of profit  in the organization.

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question content area during the taking of its physical inventory on december 31, 20y4, barry's bike shop incorrectly counted its inventory as $207,529 instead of the correct amount of $169,567. the effect on the balance sheet and income statement would be

Answers

The effect on the balance sheet and income statement would be Assets and Retained Earnings Overstated By $52,362 and Net Income Overstated by $52,364.

An assets is a resource having economic worth that a person, organization, or nation owns or manages with the hope that it may someday be useful.

A company's balance sheet lists its Assets. They are divided into current, fixed, financial, and intangible categories. They are acquired or produced to raise a company's worth or enhance its operations. An accounting document known as a balance sheet lists a company's assets, liabilities, and shareholder equity. One of the three primary financial statements that are used to analyze a corporation is the balance sheet. It offers a picture of a company's financial situation as of the publication date, including what it owns and owes.

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an insurance company uses the following tasks to process paperwork. 40 claims need to be processed in an 8 hour day. a. what is the theoretical takt time? b. what is the theoretical number of stations c. assign the tasks to the stations to balance the line using the longest operating time rule. d. what is the efficiency of the balanced line?

Answers

Takt time is calculated as Time available for production / Customer demand equals to 8 hours / 40 claims = 8 x 60 minutes / 40 claims = 12 minutes per claim.

Customers' needs for particular goods or services are referred to as consumer demand. Be familiar with the definition of consumer demand, its relationship to supply, and its impact on the economy.

Theoretical number of Takt time workstations = Sum of task times / Cycle time = (6 + 6 + 6 + 9 + 3 + 4) / 12 = 34 / 12 = 2.833 = approximately 3 workstations.

c) The order of the time spent on each activity in decreasing order of consumer demand is D,A,B,C,F,E.

Following the longest operational time guideline, workstations are Takt time assigned to the following tasks:

Workstation Tasks in order Workstation time (Minutes) Idle time (Minutes)

1 D,E 12 0

2 A,B 12 0

3 C,F 10 2

d) Efficiency of Balanced line = Sum of task times / (Number of workstations x cycle time) x 100

= 34/36 x 100 = 94.4%

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which of the following statements are correct? multiple select question. in practice, direct labor costs are really fixed. managers generally have the ability to quickly adjust the direct labor force. treating direct labor as a variable cost improves decision making. employee morale may be reduced when direct labor is treated as a variable cost.

Answers

Direct labor costs are really fixed and Employee morale may be reduced when direct labor is treated as a variable cost are the given correct statements.

A direct labor cost is a component of the wage bill or payroll that can be specifically and consistently attributed to or related with the production of a good, the completion of a specific task, or the rendering of a service. We can also state that it represents the price of the direct labor performed by those employees who really create the product on the assembly line.

Employee morale refers to a person's mood, level of contentment, and outlook while working for a company. Negative consequences such as low production and low employee morale will occur if your company has a weak culture. Employee or workplace morale is the level of employee satisfaction at work.

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which of the following is a deduction for agi? a.child support payments. b.medical expenses. c.loss on the sale of a personal residence. d.contributions to a traditional individual retirement account.

Answers

The option that would be the deduction for the AGI would be contributions to a traditional individual retirement account.

What is meant by AGI deductions?

This is the term that is used as the acronym that helps in the representation of what is the adjusted gross income. The AGI is the gross income that would be made minus the amount that is the adjustments that have to be made to income.

This has to do with the income of a person the retirement distributions that a person would have as well as the business income.

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Which does not increase the price of certain goods? question 7 options: tariffs sales taxes excise taxes property taxes

Answers

       Taxes are compulsory payments made by a government organization, whether local, regional, or federal, to people or businesses. Tax revenues are used to fund a variety of government initiatives, such as Social Security and Medicare as well as public infrastructure and services like roads and schools.

Does a tax on excise boost the supply?

        One of the six factors that determine supply is excise taxes. The supply curve is shifted to the left, reducing supply and raising the equilibrium price. As the vertical distance between the two curves approaches the tax amount, the supply curve will slant.

         In the near term, an excise tax raises the cost of the good, albeit not by the whole amount of the tax, and both the producers and the consumers bear the cost burden. The elasticity of supply and demand for the product determines the exact impact.

        A regulated tax on particular commodities or services, including alcohol, cigarettes, and gasoline, is known as an excise tax. Instead of being levied internationally across national borders, excise taxes are national taxes imposed within a government infrastructure.

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the labor force is 300 million, there are 270 million employed people. 20 million have stopped looking for work. all of these people are working-age non-institutionalized adults. what is the unemployment rate? no percent sign needed.

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The rate of a nation's actively working labor force, which includes both employed and unemployed workers, is referred to as labor force participation in the labor market.

It is stated that there are 300 million people employed, of which 20 million are discouraged. As a result, there are now 280 million people employed. As a result, the following numbers can be used to estimate the LFPR:

LFPR equals 280/300 million working-age non-institutionalized adults, or 93.33 percent

Workforce: total number of employed and unemployed workers. Formula: The labor force is the sum of the employed and unemployed.

By dividing the number of unemployed people by the total number of people employed and then multiplying by 100, we can determine the unemployment rate.

Those in the civilian non-institutional population over the age of sixteen who are either employed or seeking employment are referred to as "in the labor force."

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materials costs $112,900 conversion costs $93,900 the ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. note: your answers may differ from those offered below due to rounding error. in all cases, select the answer that is the closest to the answer you computed. to reduce rounding error, carry out all computations to at least three decimal places. the cost per equivalent unit for materials for the month in the first processing department is closest to:

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Equivalent units quantify the amount of labor put into a set quantity of tangible objects. You can simply multiply the quantity of physical goods by the amount of effort done on them to determine equivalent units. You would have one comparable unit for two objects that are 50% complete (2 x 50% = 1).

Explain about the equivalent  unit?

Given the amount of direct materials, direct labor, and manufacturing overhead costs incurred during that time for the products that weren't yet completed, it is the number of finished units of a product that a corporation could have hypothetically produced.

The total of the costs added during this period and the initial work-in-progress costs divided by the equivalent units is the cost per equivalent unit. A corporation might have produced a certain number of equivalent units with a specific amount of raw materials, labor, and manufacturing costs.

For instance, if the materials for 500 units are finished, but only 40% of the direct labor and manufacturing overhead are finished, the comparable units are 500 for materials and 200 (40% of 500).

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