Answers
Answer: $14,550
Explanation:
Within a certain activity range, the fixed cost remains the same so in this activity range of $2,200 to $5,000, the fixed overhead cost will remain the same:
= 3 * 3,600 units
= $10,800
Variable overhead costs will vary by units:
= 2,500 * 1.50
= $3,750
Total cost = 10,800 + 3,750
= $14,550
Related Questions
If a firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from :___________
a. declining interest rates.
b. rising interest rates.
c. inflation.
d. changes in hedging activities.
Answers
Answer:
b. rising interest rates.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium.
Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.
Curtis purchased stock with an initial share price of $140, and sold it when the share price was $119. While he owned the stock, he earned $10 in dividends.
What was his total percentage return on the investment?
-17.65%
-15.00%
-9.24%
-7.86%
Answers
Answer:
Curtis
The total percentage return on the investment is:
= -7.86%.
Explanation:
a) Data and Calculations:
Initial share price at which the stock was purchased = $140
The selling share price = $119
Dividends earned during the stock ownership (holding period) = $10
Total returns, including proceeds from the sales = $129 ($119 + $10)
Total returns from holding the stock until sold
= Total returns + sales proceeds minus Initial purchase cost
= -$11 ($129 - $140)
Total percentage return on the investment = $11/$140 * 100
= 7.857
= 7.86%
Dong Wang wants to retire when he has saved $1,500,000. He can make 30 payments of $15,000 each, with each payment made at the beginning of the year. What would be the interest rate required to help him achieve his goal
Answers
Answer: 6.94%
Explanation:
You can use an Excel worksheet to solve for this:
Number of periods = 30
Payment = 15,000 (should be a negative number)
Present value = 0
Future value = 1,500,000
Type = 1 (this shows that it is an annuity due because payments are at the beginning of the year).
Rate = 6.94%
W, Inc. plans to have the same inventories at year end as was in the beginning of the year. The expected total fixed costs for the year are $288000, and the estimated variable costs per unit are $14. The planned number of units to be sold during the year is 60000, and the average unit selling price is $20. The maximum sales level within the relevant range are 70000. Requirements: NOTE: (SHOW ALL WORK) 1. What is the contribution margin ratio
Answers
Answer:
i needd points
Explanation:
lol
1. Inventory that consists of the costs of the direct and indirect materials that have not yet entered the manufacturing process is known as ________. work in process inventory materials inventory finished goods inventory None of these choices are correct.
Answers
Answer:
materials inventory
Explanation:
An inventory is a term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.
Basically, an inventory can be classified into three (3) main categories and these are; finished goods, work in progress, and raw materials.
An inventory is recorded as a current asset on the balance sheet because it's primarily the most important source of revenue for a business entity.
Generally, the three (3) main cost concept associated with an inventory include;
1. First In First Out (FIFO).
2. Last In First Out (LIFO).
3. Weighted average cost.
In Financial accounting, direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.
On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.
Materials inventory can be defined as an inventory that comprises of direct and indirect materials costs which have not been used in a manufacturing process.
will lie above the marginal product curve for the firm with less capital. must equal the marginal product curve for the firm with less capital. will lie below the total marginal curve for the firm with less capital. will show no diminishing marginal returns.
Answers
Answer:
busineess would have to chnage that
You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a 2 Review Only Click the icon to see the Worked Solution (Calculator Use). single cash payment back to you in the future. Details of each investment appears here: . Calculate the IRR of each investment. State your answer to the nearest basis point (i.e., the nearest 1/100th of 1%, such as 3.76%)
Answers
Answer:
8.27%
4.69%
10.77%
9.47%
4.81%
Explanation:
Please find attached the diagram of the cash flows
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR = (future value / present value)^(1/n)
n = number of years
1. (2637/1100)^(1/11) - 1 = 8.27
2. (13091 / 9500)^(1/7) - 1 = 4.69
3. (1855 / 400)^(1/15) - 1 = 10.77
4. (5030 / 3200)^(1/5) - 1 = 9.47
5. (9598 / 6000)^(1/10) - 1 = 4.81
A firm's total output is 1500 units. The same firm's average variable cost is equal to $5 while its average fixed cost is equal to $15. How much is the firm's total cost of production
Answers
Answer:
$30,000
Explanation:
Total cost of production = Total unit cost x units produced
hence,
Total cost of production = ($5 + $15) x 1500 units
= $30,000
The firm's total cost of production is $30,000
Suppose Baa-rated bonds currently yield 6.1%, while Aa-rated bonds yield 4.1%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.0%. What would happen to the confidence index? (Round your answers to 4 decimal places.)
Answers
Answer:
Confidence index increases from 0.6721 to 0.7183
Explanation:
The computation of the confidence index is shown below:
Initial Confidence Index is
= Aa-rated bonds yield ÷ Baa-rated bonds yield
= 4.1% ÷ 6.1%
= 0.6721
Since the yields on both bonds increase by 1.0%
So, the confidence index after increase in yield is
= (4.1% + 1%) ÷ (6.1% + 1%)
= 0.7183
So, Confidence index increases from 0.6721 to 0.7183
n investment project has annual cash inflows of $4,000, $4,900, $6,100, and $5,300, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,700
Answers
Answer:
the answer is 11,000
Explanation:
Unexpected low inflation helps whom: Group of answer choices debtors students workers creditors capitalists
Answers
Answer:
creditors
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Costs of inflation
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
When inflation is low, creditors benefit because they lend in nominal terms. Thus, loss in the amount borrowed is minimal
You run a hospital with 100 rooms. Fixed daily cost is $935.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $10.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $77.00 per room per day. You sold 40.00 rooms today, how much profit/loss did you earn for today.
Answers
Answer: $1,745
Explanation:
Profit ( loss) = Sales - Fixed costs - Variable costs
Sales = Rate per room * number of rooms rented
= 77 * 40
= $3,080
Variable costs = 40 * 10 per room
= $400
Profit (loss) = 3,080 - 935 - 400
= $1,745
Two years ago, Kuley invested $20,900. She has earned and will earn compound interest of 7.8 percent per year. In 3 years from today, Nabax can make an investment and earn simple interest of 5.3 percent per year. If Nabax wants to have as much in 7 years from today as Kuley will have in 7 years from today, then how much should Nabax invest in 3 years from today
Answers
Answer:
$73306.46
Explanation:
Compound interest = Principal(1+rate/n)^nt
If Kuley invested $20900 and compound interest rate of 7.8% per year for 7 years then,
Compound interest in 7 years =$20900(1+7.8/12)^12×7
=$20900×1.7233= $36016.97
After 3 years, Nabax would have 4 years left to make what kuley made in 7 years
Kuley made compound interest of $36016.97-$20900= $15116.97
Nabax will invest for 4 years at simple interest rate of 5.3%
Simple interest = principal×time×rate/100
We substitute to get his needed amount(principal)
$15116.97=Principal×4×5.3/100
$15116.97= 21.2Principal/100
Cross multiply to make principal subject of the formula:
Principal= 1511697/21.2
Principal = $73306.46
Therefore Nabax needs to invest $73306.46 to get the same amount of return that kuley got in 7 years
Which correctly identifies a condition which must be met for creditors to force a firm into involuntary bankruptcy?
Answers
) An organization that evaluates the performance of automobiles wants to predict the performance of used cars (cars that are more than one year old). The objective is to predict COST, the maintenance cost (in dollars) of used cars for the first year after they are purchased by a new owner. The explanatory variable is:
Answers
Answer:
The explanatory variable is:
period of usage.
Explanation:
As the explanatory variable, the period of usage of the car does not depend on the maintenance cost or its performance. Instead, the maintenance cost and the performance of the automobile, which are response or dependent variables, depend on the period of usage. Period of usage (time) is always an independent or explanatory variable. In this organization, the performance of the automobile does not depend on the maintenance cost, but the two dependent variables (performance and maintenance cost) depend on the period of usage.
A manufacturing shop is designed to operate most efficiently at an output of 950 units per day. In the past month the plant produced 750 units. What was their capacity utilization rate last month? (Round your answer to 1 decimal place.) Capacity utilization rate %
Answers
Answer:
78.95%
Explanation:
Capacity utilization rate = Capacity used / Best operating level
Capacity utilization rate = 750 units / 950 units
Capacity utilization rate = 0.789473684
Capacity utilization rate = 78.95%
So, their capacity utilization rate last month is 78.95%
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $7; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $3; and fixed selling and administrative costs, $263,000. The company sells its units for $48 each. Additional data follow. Planned production in units 10,000 Actual production in units 10,000 Number of units sold 9,500 There were no variances. The income (loss) under absorption costing is
Answers
Answer:
Favaz
The income (loss) under absorption costing is
= $41,000.
Explanation:
a) Data and Calculations:
Variable manufacturing cost per unit, $7
Fixed manufacturing costs, $60,000
Variable selling and administrative costs per unit, $3
Fixed selling and administrative costs, $263,000
Selling price per unit = $48
Planned production in units = 10,000
Actual production in units = 10,000
Number of units sold = 9,500
Ending inventory = 500 (10,000 - 9,500)
Income Statement
Sales revenue ($48 * 9,500) $456,000
Cost of production:
Variable manufacturing $70,000 ($7 * 10,000)
Fixed manufacturing costs, 60,000
Total cost of production $130,000
Less Ending inventory 6,500 ($13 * 500)
Cost of goods sold 123,500
Gross profit $332,500
Expenses:
Variable selling and administrative
costs per unit, ($3 * 9,500) $28,500
Fixed selling and
administrative costs, 263,000
Total expenses $291,500
Net income $41,000
Narcissistic leaders tend to have which of the following traits that are positively associated with both leader emergence and effectiveness?
A. Agreeableness and creativity.
B. Extraversion and openness to experience.
C. Openness to experience and agreeableness.
D. Agreeableness and extraversion.
E. Creativity and extraversion.
Answers
Canton Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Canton estimates that 3% of units sold each period will require repair at an average cost of $160 per unit. During the current period, Canton sold 100,000 units and repaired 2,400 of those units. (a) How much warranty expense must Canton report in its cur
Answers
Answer:
$480,000
Explanation:
Calculation to determine much warranty expense must Canton report
Using this formula
Warranty expense=Average cost per unit*Unit sold*Estimated percentage of units sold
Let plug in the formula
Warranty expense= $160*100,000*3%
Warranty expense=$480,000
Therefore warranty expense that Canton must report is $480,000
g A person with a diminishing marginal utility of income: Group of answer choices will be risk neutral will be risk averse will be risk loving
Answers
Answer: Risk averse
Explanation:
A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.
Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.
MC Qu. 111 A company has an overhead application... A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $23,000
Answers
Answer:
$28,520
Explanation:
Calculation to determine How much overhead would be allocated to a job if it required total labor costing $23,000
Using this formula
Overhead=Total Labor Cost x Overhead Application Rate
Let plug in the formula
Overhead=$23,000 x 1.24
Overhead= $28,520
Therefore How much overhead would be allocated to a job if it required total labor costing $23,000 will be $28,520
Under the accrual basis of accounting, many of the account balance in the ledger at the end of the accounting period are reported in the financial statement without change. Some accounts require updating, though. When preparing financial statements, the economic life of the business is divided into time periods. The matching principle states that:___________.
1. A purchase made by a business is matched with the actual cost of the item
2. The accounting records and reports are matched with objective evidence
3. The transactions of a business are matched with the transactions of hs owner, creditors and other bussiness
4. The expenses incurred during a period are matched with the reverse that those expenses generated.
Answers
Answer: 4. The expenses incurred during a period are matched with the revenues that those expenses generated.
Explanation:
The accrual basis of accounting works by matching accounting transactions to the period that they occur in. For instance, if revenue is sold in year 1 but the cash for it is only received in year 2, the revenue will be recorded for year 1.
The matching principle falls under the accrual basis and matches the expenses in a period to the revenue that the expenses generated in that same period. This is why the expenses in the income statement are only those that occurred in the current period and expenses for future periods are put in the balance sheet.
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $10,800. What is the maturity value of the note on March 1? (Use 360 days a year.)
a) $11,016
b) $10,800
c) $11,088
d) $11,232
e) $10,944
Answers
Answer: $11232
Explanation:
The maturity value of the note on March 1 will be calculated as thus:
Face value = $10800
Interest on note = $10800 × 12% × 120/360 = $432
Maturity value will now be:
= Face value + Interest on note
= $10800 + $432
= $11232
Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $140 in cash from a customer for services rendered this year a promise from a customer to pay $192 for services rendered this year tickets to a football game worth $230 as payment for services performed last year a check for $178 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule C
Answers
Answer:
$548
Explanation:
Calculation to determine How much income should Bill realize on Schedule C
Income realized=$140+ $230 + $178
Income realized= $548
Therefore How much income should Bill realize on Schedule C is $548
Alternative Financing Plans
Owen Co. is considering the following alternative financing plans:
Plan 1 Plan 2
Issue 7% bonds (at face value) $5,000,000 $3,400,000
Issue preferred $1 stock, $20 par — 3,600,000
Issue common stock, $25 par 5,000,000 3,000,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock, assuming income before bond interest and income tax is $750,000.
Enter answers in dollars and cents, rounding to the nearest whole cent.
Plan 1 $_____________________ Earnings per share on common stock
Plan 2 $_______________________ Earnings per share on common stock
Answers
Answer:
Owen Co.
Alternative Financing Plans
Plan 1 Plan 2
Earnings per share $1.20 $1.06
Explanation:
a) Data and Calculations:
Plan 1 Plan 2
Issue 7% bonds (at face value) $5,000,000 $3,400,000
Issue preferred $1 stock, $20 par — 3,600,000
Issue common stock, $25 par 5,000,000 3,000,000
Income tax is estimated at 40% of income.
EBIT = $750,000 $750,000
Interest on bonds 350,000 238,000
Income before taxes $400,000 $512,000
Income tax 160,000 204,800
Net income $240,000 $307,200
Preferred dividend - $180,000
Earnings available to common
stockholders $240,000 $127,200
Outstanding shares 200,000 120,000
Earnings per share $1.20 $1.06
$1.20 ($240,000/200,000) $1.06 ($127,200/120,000)
Preferred stock dividend rate = 5% ($1/$20 * 100)
Preferred stock dividend = $180,000 ($3,600,000/$20 * $1)
or 5% of $3,600,000
Shockglass Company had a beginning inventory of $15,000. During the year, the company recorded inventory purchases of $45,000 and cost of goods sold of $50,000. The ending inventory must equal: A. $10,000. B. $25,000. C. $26,000. D. $27,000.
Answers
Answer:
A. $10,000
Explanation:
We know that :
cost of goods sold = opening inventory + purchases - ending inventory
hence,
Ending Inventory = opening inventory + purchases - cost of goods sold
therefore,
Ending Inventory = $15,000 + $45,000 - $50,000
= $10,000
The ending inventory must equal: $10,000
Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $ 135,000 $ 0 Working capital investment required $ 0 $ 135,000 Annual cash inflows $ 25,000 $ 63,000 Salvage value of equipment in six years $ 9,800 $ 0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 17%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Answers
Answer:
1. Net present value of Project A = -41,449.96
2. Net present value of Project B = $143,746.85
3. I would recommend that company accept Project B.
Explanation:
Note: This question is not complete as the requirement are omitted. The requirements are therefore provided to complete the question before answering it as follows:
Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:
Project A Project B
Cost of equipment required $ 135,000 $ 0
Working capital investment required $ 0 $ 135,000
Annual cash inflows $ 25,000 $ 63,000
Salvage value of equipment in six years $ 9,800 $ 0
Life of the project 6 years 6 years
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 17%.
Required:
1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
3. Which investment alternative (if either) would you recommend that the company accept?
The explanation of the answers is now provided as follows:
1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
Cost of equipment required = $135,000
Using the formula for calculating the present value of an ordinary annuity, the present value (PV) of the annual cash inflows can be calculated as follows:
PV of annual cash inflow = Annual cash inflow * (1 - (1 / (1 + discount rate))^Project life) / discount rate) = $25,000 * ((1 - (1 / (1 + 0.17))^6) / 0.17) = $89,729.62
The present value (PV) of the salvage value can be calculated as follows:
PV of salvage value = Salvage value / (1 + + discount rate)^Project life = $9,800 / (1 + 0.17)^6 = $3,820.42
Net present value of Project A = PV of annual cash inflow + PV of salvage value - Cost of equipment required = $89,729.62 + $3,820.42 - $135,000 = -41,449.96
2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.)
Working capital investment required = $135,000
Using the formula for calculating the present value of an ordinary annuity, the present value (PV) of the annual cash inflows can be calculated as follows:
PV of annual cash inflow = Annual cash inflow * (1 - (1 / (1 + discount rate))^Project life) / discount rate) = $63,000 * ((1 - (1 / (1 + 0.17))^6) / 0.17) = $226,118.64
The present value (PV) of the Working capital investment required can be calculated as follows:
PV of Working capital investment required = Working capital investment required / (1 + + discount rate)^Project life = $135,000 / (1 + 0.17)^6 = $52,628.21
Net present value of Project B = PV of annual cash inflow + PV of Working capital investment required - Working capital investment required = = $226,118.64 + $52,628.21 - $135,000 = $143,746.85
3. Which investment alternative (if either) would you recommend that the company accept?
From parts 1 and 2 above, we have:
Net present value of Project A = -41,449.96
Net present value of Project B = $143,746.85
Since the Net present value of Project A is negative, it should be rejected.
Since the Net present value of Project B is positive, it should be accepted.
Therefore, I would recommend that company accept Project B.
How much would you have had to invest now in an account paying 8% / year to to have $20,000 in 21 years
Answers
Answer:
PV= $3,978.115
Explanation:
Giving the following information:
Interest rate (i)= 8% = 0.08
Future value (FV)= $20,000
Number of periods (n)= 21 years
To calculate the lump-sum to be invested today, we need to use the following formula:
PV= FV / (1 + i)^n
PV= 20,000 / (1.08^21)
PV= $3,978.115
Marlow Company purchased a point of sale system on January 1 for $6,500. This system has a useful life of 5 years and a salvage value of $950. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method
Answers
Answer:
$1,560
Explanation:
The computation of the depreciation expense for the second year of its useful life is shown below:
First depreciation rate is
= 1 ÷ 5 ×2
= 40%
Now the depreciation expense for one year is
= 40% of $6,500
= $2,600
Now the depreciation expense for the second year is
= ($6,500 - $2,600) ×40%
= $1,560
What is the role of a consumer in the economy nation
