(Appendix 2A)The Management of Bandle Corporation Would Like for You

question 15

Multiple Choice

(Appendix 2A) The management of Bandle Corporation would like for you to analyze their repair costs, which are listed below: Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:

• A)$6.72 per machine-hour plus $55, 230 per month
• B)$6.80 per machine-hour plus $54, 679 per month
• C)$7.28 per machine-hour plus $51, 389 per month
• D)$14.66 per machine-hour plus $101, 993 per month

Understand the concepts of bond valuation and the calculation of carrying value over time.

Analyze the effects of market interest rates on bond prices and interest expenses.

Calculate interest expenses and premium or discount amortization for bonds.

Understand the characteristics and financial implications of floating-rate debt.

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Regular and established procedures or habits that are followed in the execution of tasks or activities.