Answer:
Investment Payback period(in years)
A 2.08
B 3.066
Explanation:
The payback period is the length of time in years it will take the net cash inflow of a project to recoup its initial cost
Payback period = Initial cost of investment /Annual net cash inflow
Investment A
Annual depreciation = (Cost - Salvage value)/Number of years
= (240,000 - 9,000)/5 =
Annul cash inflow = 69,230 + 46200 = 115,430
Payback period = Initial cost of investment /Annual net cash inflow
= 240,000/ 115,430 = 2.079
Investment B
Annual depreciation = (Cost - Salvage value)/Number of years
= (170,000 - 13,000)/9 = 17,444.444
Annul cash inflow= 38,000 + 17,444.44= 55,444.44
Payback period = 170,000 /55,444.44 =3.067
Investment Payback period(in years)
A 2.08
B 3.066
Consider a product with a daily demand of 600 units, a setup cost per production run of $200, a monthly holding cost per unit of $5.00, and an annual production rate of 300,000 units. The firm operates and experiences demand 300 days per year.
Required:
a. What is the optimum size of the production run?
b. What is the average holding cost per year?
c. What is the setup cost per year?
d. What is the total cost per year if cost of each unit is 10 dollars?
e. Suppose that management mistakenly used the basic EOQ model to calculate the batch size instead of using the POQ model. How much money per year has that mistake cost the company?
Answer:
a. 3,795 units
b. $1,897.50
c. $2,845.80
d. $42,693.80
Explanation:
Optimum size for the Production ran is the size that minimizes Set-up costs and Holding costs.
Optimum size for the Production = √ (2 × Annual Production × Set-up cost) / Holding Cost per unit
Optimum size for the Production = √ (2 × 600 × 300 × $200) / $5.00
= 3,794.73 or 3,795 units
Average Holding Cost = Optimum size for the Production / 2
= 3,795 units / 2
= $1,897.50
Set - up Cost = Total Annual Production / Optimum size for the Production × Set - up cost per unit
= ((600 × 300) / 3,795)× $5.00
= $237.15
Annual cost = $237.15 × 12
= $2,845.80
Total Cost Calculation
Purchase Price (3,795 × $10) = $37,950.50
Holding Cost = $1,897.50
Set - up Cost = $2,845.80
Total Cost = $42,693.80
POQ = Optimum size for the Production / Annual Demand
= 3,795 units / (300 × 600)
= 0.021
Suppose you believe that Florio Company's stock price is going to decline from its current level of $82.50 sometime during the next 5 months. For $5.10 you could buy a 5-month put option giving you the right to sell 1 share at a price of $85 per share. If you bought this option for $5.10 and Florio's stock price actually dropped to $60, what would your pre-tax net profit be
Answer:
$19.9
Explanation:
According to the given situation the computation of pre-tax net profit is shown below:-
Net pre-tax profit = Option exercised per share + Actual stock price at the end + Profit - Option premium
= $85 + $60 + $25 - $5.10
= $19.9
Therefore for computing the pre-tax net profit we simply applied the above formulas.
Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.)
A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit 80 1,000 2,088
Total fixed costs 73,200 660,000 3,758,400
Target profit 266,760 3,000,000 3,132,000
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to break even
Required sales dollars to break even
Required units to achieve target profit
Answer:
Contribution margin per unit
A = $120
B = $3,000
C = $3,132
Contribution margin ratio
A = 60%
B = 75%
C = 60%
Units to break even
A = 610 units
B = 220 units
C = 1,200 units
Sales dollars to break even
A = $122,000
B = $880,000
C = $6,264,000
Units to achieve target profit
A = 2,833 units
B = 1220 units
C = 2,200 units
Explanation:
Contribution margin per unit
Contribution margin = Sales - Variable Costs
A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit ($80) ($1,000) ($2,088)
Contribution Margin $120 $3,000 $3,132
Contribution margin ratio
Contribution margin ratio = Contribution / Sales × 100
A = $120 / $200 × 100
= 60%
B = $3,000 / $4,000 × 100
= 75%
C = $3,132 / $5,220 × 100
= 60%
Units to break even
Units to break even = Fixed Cost ÷ Contribution margin per unit
A = $73,200 ÷ $120
= 610 units
B = $660,000 ÷ $3,000
= 220 units
C = $3,758,400 ÷ $3,132
= 1,200 units
Sales dollars to break even
Units to break even = Fixed Cost ÷ Contribution margin ratio
A = $73,200 ÷ 60%
= $122,000
B = $660,000 ÷ 75%
= $880,000
C = $3,758,400 ÷ 60%
= $6,264,000
Units to achieve target profit
Units to achieve target profit = Fixed Cost + Target Profit ÷ Contribution margin per unit
A = $73,200 + 266,760 ÷ $120
= 2,833 units
B = $660,000 + 3,000,000 ÷ $3,000
= 1220 units
C = $3,758,400 + 3,132,000 ÷ $3,132
= 2,200 units
Many leaders have difficulty implementing their vision and strategies. Such problems may stem from a variety of issues in the design of the organization such as
Answer:
Inappropriate budgeting and control system
Explanation:
If there is no proper budgeting with respect to the revenues, expenses and also if there is no proper control than the implementation of the vision and strategies would become difficult due to which organization is not able to accomplish its goals and objective within a prescribed time
There should be proper structure of work by considering the budgeting and control system as if any organization would ignore this then they would lead to suffered high losses
Therefore as per the given scenario, the third option is correct
Answer:
inappropriate budgeting and control systems is the correct answer.
Explanation:
Steve Madison needs $353,100 in 10 years.How much must he invest at the end of each year, at 9% interest, to meet his needs?
Answer:
$23,241.07
Explanation:
To determine the annual annuity, this formula would be used
PV = FV / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r = (1.09^10 - 1 ) / 0.09 = 15.192930
$353,100 / 15.192930 = $23,241.07
Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of the first year of operations, Barnard Inc., manufactured 4,100 units and sold 3,500 units. The following income statement was prepared, based on the variable costing concept: Barnard Inc. Variable Costing Income Statement For the Year Ended March 31, 20Y1 Sales $1,085,000 Variable cost of goods sold: Variable cost of goods manufactured $610,900 Inventory, March 31 (89,400) Total variable cost of goods sold (521,500) Manufacturing margin $563,500 Total variable selling and administrative expenses (129,500) Contribution margin $434,000 Fixed costs: Fixed manufacturing costs $278,800 Fixed selling and administrative expenses 87,500 Total fixed costs (366,300) Operating income $67,700 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing $ Absorption costing $
Answer:
a. $149.00
b. $217.00
Explanation:
Variable Costing
Product Cost under Variable Costing = Variable Manufacturing Costs Only
Total Variable Manufacturing Cost = $610,900
Unit Cost = Total Cost / Units Manufactured
= $610,900 / 4,100 units
= $149.00
Variable Costing
Product Cost under Absorption Costing = Variable Manufacturing Costs + Fixed Manufacturing Costs.
Total Absorption Cost Calculation
Total Variable Manufacturing Cost $610,900
Fixed manufacturing costs $278,800
Total Absorption Cost $889,700
Unit Cost = Total Cost / Units Manufactured
= $889,700 / 4,100 units
= $217.00
A machine costs $600000 and is expected to yield an after tax net income of $23000 each year. Managment predicts this machine has a 10 year service life and a $120000 salvage value, and it uses straight line depreciation. Compute this machine's accounting rate of return
Answer:
6.39%
Explanation:
The cost of the machine is $600,000
The net income is $23,000
The management predict a that it has a 10 years service life
The salvage value is $120,000
The first step is to calculate the average investment
Average investment= (Cost of machine+Salvage value)/2
= $600,000+$120,000/2
= $720,000/2
= $360,000
Therefore, the accounting rate of return can be calculated as follows
= Annual net income/Average investment
= $23,000/$360,000
= 0.0639×100
= 6.39%
Hence the accounting rate of return is 6.39%
A decrease in real GDP causes a __________the money demand curve. A decrease in interest rates causes a__________ the money demand curve. An increase in the aggregate price level causes a_____________ the money demand curve.
Answer:
A decrease in real GDP causes a decrease in the money demand curve. A decrease in interest rates causes an increase in the money demand curve. An increase in the aggregate price level causes an increase in the money demand curve.
Explanation:
A demand curve is a graphical representation of the demand for money. Highlighting the demand for money in relation to price.
If real GDP increases, it will increase the need to have money to purchase goods, as there is already an increase in goods produced or available in the market. The need to have more money to purchase the more goods available in the market will drop once real GDP drops.
When the quantity of money demanded increases, it affects the price as well, as price increases, causing an increase in the demand curve. Talking about interest rates, a decrease in the interest rate will lead to an increase in the quantity of money demanded which will lead to an increase in the money demand curve.
The aggregate price level measures the entire prices in the economy. It gives a quick view of how the market pricing system is.
When the price level is high, an individual will have to spend more meaning there will be an increase in the demand for money to purchase the desired goods leading to a direct increase in the money demand curve.
A decrease in real GDP causes a leftward shift in the money demand curve. A decrease in interest rates causes a rightward shift in the money demand curve. An increase in the aggregate price level causes a rightward shift in the money demand curve.
What is the money demand curve?The money demand curve illustrates the demand for money at a given interest rate. It is a downward-sloping curve that means there is an inverse relationship between demand for money and the interest rate.
The shift in money demand curve:
The money demand curve shifts to the right as the demand for money increases and it shifts to the left as demand decreases.
The demand for money will increase due to a rise in real GDP, a fall in interest rate, an increase in the price level, a change in expectations, and similar reasons.
The demand for money will decrease due to inverse change in the above factors.
Therefore, the answers to the blanks are:
leftward shift,
rightward shift, and
rightward shift.
Learn more about the money demand curve here:
brainly.com/question/25795809
In recent years, cellular phones have become very popular. What is the effect of this change in taste and preferences on the market for cellular phones?
Answer:
The effect is a decrease in the use of land line phones, so there is a decrease in demand for land line phones and an increase in demand for cellular phones.
Explanation:
With the popularization of the cell phone, there was an economic effect caused by the increase in demand for cell phones and the decrease in demand for landlines, which means that the landline sector was affected by changes in consumer taste and preferences, which led to many fixed-line operators migrate to a focus on mobile telephony.
With the popularization of cell phones, it is also possible to notice the increase in industries that produce increasingly technological and differentiated devices to meet this constantly growing demand.
You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $450,000 per year. Thus, in one year you receive $1.45 million. In two years, you get $1.7 million, and so on.
If the appropriate interest rate is 8%, what is the present value of your winnings?
Answer:
$22,419,192.19
Explanation:
i used an excel spreadsheet to calculate the future payments and their present value. If the payments increase by $450,000 each year, the second payment will equal $1.9 million, not $1.7 million.
year payment
0 $1,000,000
1 $1,450,000
2 $1,900,000
3 $2,350,000
4 $2,800,000
5 $3,250,000
6 $3,700,000
7 $4,150,000
8 $4,600,000
9 $5,050,000
10 $5,500,000
present value = $22,419,192.19
Answer:
21,624,467.720
Explanation:
Richman Company purchased $900,000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2022, with interest payable on July 1 and January 1. The bonds sold for $937,422 at an effective interest rate of 7%. Using the effective interest method, Richman Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2022 and December 31, 2022 by the amortized premiums of $3,186 and $3,294, respectively. At December 31, 2022, the fair value of the Carlin, Inc. bonds was $954,000. What should Richman Company report as other comprehensive income in the 2022 Comprehensive Income Statement
Answer:
$23,058
Explanation:
For calculation of Other comprehensive income first we will find out the total amortized premiums which is shown below:-
Total amortized premiums = 3,186 + 3,294
= $6,480
Other comprehensive income = Fair value on December 31, 2022 - (Selling price of bonds - Total amortized premiums)
= $954,000 - ($937,422 - $6,480)
= $954,000 - $930,942
= $23,058
We simply applied the above formula.
The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the next department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method.
Required:
Compute the total equivalent units of production for direct materials and conversion costs for October.
Answer:
Equivalent units
Material 62,000
Conversion cost 24,000
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Equivalent unit for Material
Item unit Equivalent units
Transferred out 38,000 × 100% = 38,000
Closing WIP 24,000× 100% = 24,000
Equivalent unit of material 62,000
The degree of completion for WIP is taken to be 100% because materials are always added at the beginning, therefore all the amount of raw material required is already imputed.
Equivalent unit for Conversion cost
Item unit Equivalent units
Transferred out 38,000 × 100% = 38,000
Closing WIP 24,000× 20% = 4800
Equivalent unit of conversion 42,800
Equivalent units
Material 62,000
Conversion cost 24,000
A local bank intends to install a new automated teller machine (ATM) to allow users (i.e., bank customers) to perform basic financial transactions. Each user can have only one account at the bank. ATM users should be able to view their account balance, withdraw cash (i.e., take money out of an account) and deposit funds (i.e., place money into an account). The user interface of the automated teller machine contains:
Answer:
The user interface of the automated teller machine contains Graphical User Interface.
Explanation:
The Graphical User Interface (GUI) is a user interface that allows the ATM customer to perform basic financial transactions of viewing their account balance, withdrawing cash, and depositing funds in an interactive manner. The GUI as an interactive visual display uses objects to convey information to the user. Actions to be taken by the ATM customer are also represented, so that the user or ATM customer feels as if she were communicating with another human. The GUI responds faster than a human.
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies.
For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below:
Activity Cost Pool (Activity Measure) Total Cost Total Activity
Customer deliveries (Number of deliveries) $ 500,000 5,000 deliveries
Manual order processing (Number of manual orders) 248,000 4,000 orders
Electronic order processing (Number of electronic orders) 200,000 12,500 orders
Line item picking (Number of line items picked) 450,000 450,000 line items
Other organization-sustaining costs (None) 602,000
Total selling and administrative expenses $ 2,000,000
Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (both hospitals purchased a total quantity of medical supplies that had cost Worley $30,000 to buy from its manufacturers):
Activity
Activity Measure University Memorial
Number of deliveries 10 25
Number of manual orders 0 30
Number of electronic orders 15 0
Number of line items picked 120 250
Required:
Compute the total revenue that Worley would receive from University and Memorial.
Answer is complete and correct
Total Revenue
University $ 31,500
Memorial $ 31,500
Answer:
Worley CompanyComputation of Total Revenue from University and Memorial:
Total Cost = $38,541.00
Mark-up (5%) $1,927.05
Total Revenue $40,468.05
Explanation:
a) Data and Calculations:
Activity Cost Pool (Activity Measure) Total Cost Total Activity
Customer deliveries (Number of deliveries) $ 500,000 5,000 deliveries
Manual order (Number of manual orders) 248,000 4,000 orders
processing
Electronic order (Number of electronic orders) 200,000 12,500 orders
processing
Line item picking (Number of line items picked) 450,000 450,000 line items
Other organization-sustaining costs (None) 602,000
Total selling and administrative expenses $ 2,000,000
Data on University and Memorial Hospitals:
Activity Measure University Memorial
Number of deliveries 10 25
Number of manual orders 0 30
Number of electronic orders 15 0
Number of line items picked 120 250
Activity Rates:
Customer deliveries (Number of deliveries) $ 500,000/5,000 = $100
Manual order (Number of manual orders) 248,000/4,000 = $62
processing
Electronic order (Number of electronic orders) 200,000/12,500 = $16
processing
Line item picking (Number of line items picked) 450,000/450,000 = $1
Other organization-sustaining costs (None) 602,000
Cost of Selling and Administrative Expenses to the two hospitals:
Activity Measure University Memorial Total Total Cost
Number of deliveries 10 25 35 $3,500
Number of manual orders 0 30 30 $1,860
Number of electronic orders 15 0 15 $240
Number of line items picked 120 250 370 $370
Total Selling and Administrative Expenses $5,970
Cost of medical supplies = $30,000
Selling and administrative expenses = $5,970
Fixed costs = $2,571
($5,970/$1,398,000 x $602,000)
Total Cost = $38,541
Mark-up (5%) $1,927.05
Selling price $40,468.05
b) The case stated that both University and Memorial had purchased a total quantity of medical supplies that had cost Worley $30,000 to buy from its manufacturers. This implies that each hospital did not buy supplies that had cost Worley $30,000 for each. Based on this assumed fact from the case, the total revenue that Worley would collect from the two hospitals after keying in the selling and distribution and head office fixed costs, to get a total cost of $38,541.00 and adding the 5% markup, the revenue that Worley would receive would be $40,468.05 ($38,541 x 1.05).
Aladdin Jets is attempting to build an airplane that is made by welding the skin (outside layer) of the plane. The technique is much less expensive than an alternative riveting technology. The firm is also using a new type of jet engine with superior efficiency. The new entrant is entering a market that is realizing a substantial increase in competition. Which of the following would be strategies that the firm is attempting?
a. Cost reduction
b. Product differentiation
c. reduction in competitive intensity
d. a and b
e. all of the above.
Answer: Option D( a and b)
Explanation:
From the question, we are informed that Aladdin Jets wants to build an airplane that is made by welding the skin of the plane and that the technique is much less expensive than an alternative riveting technology.
We are further informed that the firm is also using a new type of jet engine with superior efficiency. The above analysis shows that the firm is using a product differentiation strategy and also reducing costs. While the company is trying out new things, it's also trying to minimize cost.
On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months
Answer:
interest expense per coupon payment (every 6 months) = $153,000
Explanation:
In this case, since the bonds were sold at par, the interest expense and the actual cash payments are the same (no premium or discount would be amortized). To calculate the interest payment we just multiply the bonds' face value x annual interest rate x 1/2 (semiannual coupons) = $3,400,000 x 9% x 1/2 = $153,000
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
ANSWER:
Take down his/her suggestions. The first thing is to show respect. Accept thoughts and contributions towards that project. Most times a project "sponsor" is not someone who is a professional in the field or discipline that the project is about.
If your direct supervisor has the idea of increasing the scope of the project, take note of his/her reasons and if they will truly bring the achievement of more departmental goals, then relay the idea of expansion to the project sponsor.
Answer:
At this point, the important thing is to remain calm and in control. Your supervisor, like everyone else, is likely to get confused and blame people for things that are not their fault, or even find fault that does not exist.
In that case, you should wait for him to finish speaking, ask for permission to speak and explain how you did your job and show how your supervisor is wrong about the conclusion he made. This must be done calmly and politely, always maintaining respect.
Explanation:
The depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a(an):
Answer:
Accelerated depreciation method
Explanation:
Accelerated depreciation is a method of depreciation in which the assets lost his purchase price or book value at the speedy rate as compared with the straight-line method.
And it generates a larger amount of expenses during the early period and the smaller amount of expenses in the later year so that it can be decreased the taxable income
Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal with your competitor
Available Options Are:
A. Be nice and don't advertise first.
B. If your competitor advertises do not escalate the situation, but do match their move
C. Wait to respond to your competitors actions.
D. Make sure your actions are clear to your competitor.
E. All of the above except 'c'.
Answer:
Option C. Wait to respond to your competitors actions.
Explanation:
The best way to respond to our customer would be by to wait to respond to Pesi-cola's actions. By doing so, we have option to take best advantage out of the position. Furthermore, it is in the best interest of both competitors to increase the revenue by not sepending huge amounts on advertising products. And this is only possible if both Coca-cola and Pepsi-cola not investing in marketing products. So the only option here that gicves this option is Statement C.
It can also help to design better strategy to take advantage of the competitor's strategy.
For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce.
Price Quantity Total Revenue Fixed Cost Variable Cost Profit
(Dollars per polo) (Polos) (Dollars) (Dollars) (Dollars) (Dollars)
25.00 520,000
40.00 520,000
65.00 520,000
If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $520,000 per day. In other words, if it shuts down, the firm would suffer losses of $520,000 per day until its fixed costs end (such as the expiration of a building lease).
This firm's __________ that is, the price below which it is optimal for the firm to shut down is:________
Answer:
This firm's Shut down price, That is, the price below which it is optimal for the firm to shut down is $40.
Explanation:
Shut down point is the point at which a firm or business is not able to gain any profit or benefit from the operations. Firm try to stay in the market until they reach the shut down point in business. It is a point where a business revenue just covers the variable expenses.
Your firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. The tax rate is 34 percent. There are no interest expenses or other income. What is the operating cash flow?
Answer:
Thus, Operating cash flow for company is $7,510.20.
Explanation:
Total Sales = $22,980
Cost of goods sold = $14,715
Depreciation = $6,045
Profit before tax = Total Sales – Cost of goods sold – Depreciation
= $22,980 – $14,715 – $6,045
=$2,220
Profit before tax is $2,220
Tax rate = 34%
Net profit = profit before tax × (1 – 34%)
= $1,465.20
Net profit for company is $1,465.20.
Operating cash flow = Net profit + Depreciation
= $1,465.20 + $6,045
= $7,510.20
Thus, Operating cash flow for company is $7,510.20.
Elements of a Flexible Budgets
Presented are partial flexible cost budgets for various levels of output.
Required
Solve for items "a" though "n"
Rate per unit Units
1,000 1,500 2,000
Direct materials $10,000
Direct labor 3,000
Variable overhead
$3.00
Fixed overhead
Total $40,000
Answer:
1000 units$25,000
1,500 units 32,500
2,000 units $40,000
Explanation:
Partial flexible cost budgets for various levels of output
Rate per unit Units 1,000 1,500 2,000
DIRECT MATERIALS
Rate per unit
a.$10 ($10,000 / 1,000 units)
Units
1000 units
$10,000
1500 units
b. $15,000 (1,500 units * $10)
2000 units
c. $20,000 (2,000 units * $10)
DIRECT LABOR
Rate per units
d. $2 ($3,000 / 1,500 units)
Units
1000 units
e. $2,000 (1,000 units * $2)
2000 units
3,000
1000 units
f. $4,000 (1,000 units * $2)
VARIABLE OVERHEAD
Rate per units
$3.00
Units
1000 units
g. $3,000 (1,000 units * $3)
1500 units
h. $4,500 (1,500 units * $3)
2000 units
i. $6,000 (2,000 units * $3)
FIXED OVERHEAD
Units
1000 units
j.$10,000
1500 units
k.$10,000
2000 units
l.$10,000 (40,000 - 20,000 - 4,000 - 6,000)
TOTAL
1000 Units
Direct materials $10,000
Direct labor $2,000
Variable overhead $3,000
Fixed cost $10,000
= m. $25,000
1500 Units
Direct materials $15,000
Direct labor $3,000
Variable overhead $4,500
Fixed cost $10,000
=n. $32,500
2000 Units
Direct materials $20,000
Direct labor $4,000
Variable overhead $6,000
Fixed cost $10,000
= $40,000
Therefore :
1000 units$25,000
1,500 units 32,500
2,000 units $40,000
On the first day of the fiscal year, a company issues a $2,600,000, 7%, 6-year bond that pays semiannual interest of $91,000 ($2,600,000 × 7% × ½), receiving cash of $2,477,994. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
Answer:
Dr interest expense( 10,167.17+91,000) $ 101,167.17
Cr cash $91,000.00
Cr discount on bonds payable $ 10,167.17
Explanation:
The discount on bond issuance is the difference between the cash proceeds received and the face value of the bonds.
discount on bonds payable=$2,600,000-$2,477,994=$122,006.00
amortization of discount=discount/number of semiannual interest payable
in 6 years,12 semiannual coupons are payable
amortization of discount=$122,006.00 /12=$10,167.17
The Revenue Reconciliation Act of 1993 modified the 1986 passive loss restrictions by allowing individuals who materially participate in rental real estate to deduct rental losses from other income. To qualify, how much time must a person devote to personal services to real property trades or business during a tax year
Answer:
The answer is "50%"
Explanation:
Modify the state budget Act of 1974 to boost the FY in 1994 and 1995. It is the maximum federal debt quantity and also to set these other quantities for FY 1996 to 1998. Repudiates in the 1994 and 1995 boundaries on consumption spending.
In the Act of 1993, it modifies the 1986 active losses restrictions so, that it allowed rental damages from other revenues to also be deducted from persons who significantly participated such rental properties.
The person may allocate 50% to his time towards services rendered throughout a tax year from the business.
When conducting a hypothesis test, we ______and then evaluate the test results to determine if there is enough evidence to _________.
Answer: A. Assume that the null hypothesis is true; reject the null hypothesis
Explanation:
The Null Hypothesis in a research is the theory that there is no change between variables or subject that the research wishes to study. This theory is always assumed to be true before the research is conducted.
After the data and test results are analysed, depending on the evidence, the Null Hypothesis is either Rejected or Not Rejected. To reject the Null Hypothesis, the evidence must be beyond reasonable doubt.
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 12,000 ________ 16,000 Sales revenues $600,000 $ $800,000 Variable costs 240,000 $ ________ 322,240 Contribution margin $360,000 $ $477,760 Fixed costs 275,100 $ ________ 269,700 Operating profit $84,900 $ ________ $208,060 The flexible budget will report ________ for variable costs.
Answer:
The flexible budget will report $ 320,000 for variable costs.
Explanation:
Great Cabinets Company
Actual Results Flexible Budget Static Budget
Sales volume (in units) 12,000 ________ 16,000
Sales revenues $600,000 $ $ 800,000
Variable costs 240,000 $ ________ 322,240
Contribution margin $360,000 $ $477,760
Fixed costs 275,100 $ ________ 269,700
Operating profit $84,900 $ ________ $208,060
The flexible budget will report ________ $ 320,000 for variable costs.
For 16000 units the Flexible Budget would be
Sales Revenue ($600,000 /12000)16000 =$ 800,000
Variable Costs (240,000 /12000)16000 = $ 320,000
Contribution Margin $ 480,000
Fixed Costs 275,100 ( assuming fixed costs to be same
for 16000 units)
Operating Profit 204,900
Justin hires Miguel to sell his baseball glove for $560. As part of their contract, Justin will pay him $100 to conduct the sale. Justin is a _______________________. Group of answer choices
Answer: Factee
Explanation:
This is a factorage transaction in which Justin will pay Miguel to act as an intermediary who will sell the baseball glove and receive a commission. That commission is known as a Factorage.
In a Factorage transaction, the intermediary being paid to sell the product is considered to be the Factor and the person who will pay for the product to be sold is the Factee. Justin in this scenario is paying for the baseball glove to be sold and so is the Factee.
"Which of the following statements are TRUE regarding the rights agent? I The rights agent usually handles the mechanics of a rights offering II The rights agent is usually the existing transfer agent of the issuer III The rights agent issues the additional shares upon presentation of the rights certificates with payment"
Answer:
I, II, and III
I The rights agent usually handles the mechanics of a rights offering
II The rights agent is usually the existing transfer agent of the issuer
III The rights agent issues the additional shares upon presentation of the rights certificates with payment
Explanation:
Aright is defined as an offering to existing shareholders to purchase more shares. Usually there is a proportion of original shares the shareholder can now purchase. For example 1 to 5 shares means the shareholder can buy one share for every 5 old shares owned.
A rights agent is a person or entity that is responsible for maintaining records on behalf of rights holders.
When rights are issued, a rights agent is handles sales to shareholders, he is usually the initial transfer agent for the issuing company, and he issues the additional shares when payment and rights certificates are presented.
Ross Island Co. issues 10,000 shares of no-par value preferred stock for cash at $120 per share. The journal entry to record the transaction will consist of a debit to Cash for $1,200,000 and a credit (or credits) to:
Answer:
Please see answer below
Explanation:
The journal entry to record the issuance of 10,000 shares of no-par value preferred stock for cash at $120 per shares has a debit to cash and a credit to preferred stock for $1,200,000 ( 10,000 shares × issue price of $120 per share )
A recent medical study reports new benefits of cycling. Simultaneously, the price of the parts needed to make bikes falls. The demand curve would
Answer:
D
Explanation:
here is the full question :
A recent medical study reports new benefits of cycling. Simultaneously, the price of the parts needed to make bikes falls. The demand curve would _________ and the supply curve would__________
a
a. Shift to the right, shift to the left
b. shift to the left, shift to the right
c. shift to the left, shift to the left
d. shift to the right, shift to the right
as a result of the medical study, the demand for bikes would increase. this would shift the demand curve outwards or to the right.
the fall in price of parts needed to make bikes would reduce the cost of making bikes. this would lead to an increase in the supply of bikes. the supply curve would shift outward as a result.
