The cost of preferred stock for Barton Industries is 7.40%.
Explanation:
To calculate the cost of preferred stock, we need to use the formula:
Cost of Preferred Stock = Dividend / Price
Given that the annual dividend is $3.85 per share and the price per share is $52, we can substitute these values into the formula:
Cost of Preferred Stock = $3.85 / $52 = 0.074038
Rounded to two decimal places, the cost of preferred stock for Barton Industries is 7.40%.
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(Entry for Retirement of Bond; Bond Issue Costs) On January 2, 2016, Prebish Corporation issued $1,500,000 of 10% bonds to yield 11% due December 31, 2025. Interest on the bonds is payable annually each December 31. The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2019, Prebish called $1,000,000 face amount of the bonds and retired them. Instructions a. Determine the price of the Prebish bonds when issued on January 2, 2016. b. Prepare an amortization schedule for 2016-2020 for the bonds. c. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Prebish as a result of retiring the $1,000,000 of bonds on January 2, 2019, and prepare the journal entry to record the retirement. Principal PV: 0.35218 Interest payment PV:5.88923
The price of the Prebish bonds when issued on January 2, 2016 can be determined using the present value (PV) formula. The PV of the principal is $1,500,000 multiplied by the PV factor of 0.35218, which equals $528,270.
The PV of the annual interest payments is calculated by multiplying the annual interest payment of $150,000 (10% of $1,500,000) by the PV factor of 5.88923, resulting in $933,385. Therefore, the price of the bonds when issued is the sum of the PV of the principal and the PV of the interest payments, which equals $1,461,655.
To prepare an amortization schedule for the bonds from 2016 to 2020, you need to calculate the interest expense and the reduction of the carrying value each year. The interest expense is the carrying value at the beginning of the year multiplied by the effective interest rate of 11%. The reduction of the carrying value is the interest expense minus the annual interest payment. You can calculate the carrying value for each year by subtracting the reduction of the carrying value from the previous year's carrying value.
To compute the amount of loss, if any, to be recognized by Prebish as a result of retiring $1,000,000 of bonds on January 2, 2019, you need to compare the carrying value of the retired bonds to the amount paid to retire them. The carrying value of the retired bonds can be calculated by using the amortization schedule. If the carrying value is higher than the amount paid to retire the bonds, there will be a loss recognized. The loss is the difference between the carrying value and the amount paid to retire the bonds.
To record the retirement of the bonds on January 2, 2019, Prebish would debit the Bonds Payable account for the face amount of the retired bonds ($1,000,000) and credit the Loss on Bond Retirement account for the amount of loss recognized. They would also credit the Cash account for the amount paid to retire the bonds.
In conclusion, the price of the Prebish bonds when issued on January 2, 2016 is $1,461,655. The amortization schedule for the bonds from 2016 to 2020 can be prepared by calculating the interest expense and reduction of the carrying value each year. The amount of loss, if any, to be recognized by Prebish as a result of retiring $1,000,000 of bonds on January 2, 2019 can be determined by comparing the carrying value of the retired bonds to the amount paid to retire them. The journal entry to record the retirement would include debiting the Bonds Payable account, crediting the Loss on Bond Retirement account, and crediting the Cash account.
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Critically discuss how the alternative method for project completion acceleration (Critical Chain Project Management scheduling method) can help solve the management of slack on resource-limited projects. Also give an example.
The Critical Chain Project Management (CCPM) scheduling method is an alternative approach to project management that aims to improve project completion time and manage resource constraints effectively. One key advantage of CCPM is its ability to address the management of slack on resource-limited projects.
In traditional project management, slack refers to the extra time allocated to activities beyond their estimated duration to account for uncertainties or delays. However, this approach can lead to inefficiencies, as project participants tend to utilize the full allocated time, resulting in a longer project duration. Additionally, in resource-limited projects, the presence of slack can create challenges in managing resource utilization effectively.
CCPM tackles this issue by focusing on the critical chain, which is the longest sequence of dependent tasks that determines the project's duration. The method identifies the critical chain and protects it by incorporating project buffers at strategic points to account for uncertainties and variations in task durations. These buffers are placed at the end of the critical chain rather than at individual activities, eliminating the presence of slack.
By eliminating slack, CCPM encourages project participants to focus on completing their tasks as efficiently as possible, without the temptation to use the extra time provided by traditional slack management. This helps in accelerating project completion and improving resource utilization. Resources are allocated based on the critical chain's needs, ensuring that they are utilized optimally and not wasted on non-critical activities.
Here's an example to illustrate the benefits of CCPM in managing slack on a resource-limited project:
Suppose a construction project involves multiple contractors and limited resources, such as equipment and skilled labor. In a traditional project management approach, each contractor might be given a buffer of extra time, leading to inefficiencies as they utilize the full allocated time. This can result in delayed project completion and underutilization of resources.
With CCPM, the project manager identifies the critical chain of activities required to complete the project. Instead of providing individual slack to each contractor, the project manager allocates project buffers strategically at key points along the critical chain. These buffers account for uncertainties and variations in task durations.
Contractors are then incentivized to complete their tasks efficiently, as any delays on the critical chain would impact the overall project duration. This leads to improved resource utilization, as contractors are focused on completing their tasks within the allocated time, without unnecessary slack.
As a result, the project can be completed faster, and resource limitations are managed more effectively. The CCPM approach ensures that resources are allocated based on the critical chain's needs, optimizing their utilization and reducing idle time or wastage.
In conclusion, the alternative method of project completion acceleration, Critical Chain Project Management (CCPM), helps solve the management of slack on resource-limited projects by eliminating the presence of slack and focusing on the critical chain. By strategically placing project buffers along the critical chain, CCPM encourages efficient task completion and optimal resource utilization, leading to accelerated project completion. This approach improves project efficiency and helps overcome the challenges posed by resource limitations.
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Consider historical data showing that the average annual rate of return on the S&P/TSX Composite portfolio over the past 60 years has averaged roughly 8% more than the Treasury bill return and that the S&P/TSX Composite standard deviation has been about 35% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 3%. Calculate the utility levels of each portfolio for an investor with A = 2. Assume the utility function is U = E(r) - 0.5 × Ao². (Do not round intermediate calculations. Round your answers to 4 decimal places.)
For an investor with A = 2, the utility level of the S&P/TSX Composite portfolio can be calculated using the provided historical data, assuming the investor's utility function is U = E(r) - 0.5 × Ao².
To calculate the utility level of the S&P/TSX Composite portfolio, we need to consider the average annual rate of return and standard deviation. Given that the S&P/TSX Composite portfolio has averaged 8% more than the Treasury bill return over the past 60 years.
The current T-bill rate is 3%, we can estimate the expected return for the S&P/TSX Composite portfolio as 0.08 + 0.03 = 0.11 (or 11%). Next, we use the provided utility function U = E(r) - 0.5 × Ao², where E(r) is the expected return and Ao is the investor's risk aversion parameter, given as A = 2.
For the S&P/TSX Composite portfolio, the utility level is calculated as U = 0.11 - 0.5 × 2 × (0.35^2) = 0.11 - 0.5 × 2 × 0.1225 = 0.11 - 0.1225 = -0.0125. Similarly, for the Treasury bill portfolio, the expected return is 0.03 (or 3%). Using the same utility function, the utility level is calculated as U = 0.03 - 0.5 × 2 × (0.0^2) = 0.03.
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What are the arithmetic and geometric average returns for a stock with annual returns of 17 percent, 9 percent, -6 percent, and 14 percent? Multiple Choice 8.50%; 8.12% 11.42%; 8.12% 11.42%; 8.50% 8.12%; 8.50%
The arithmetic average return for the given stock, with annual returns of 17%, 9%, -6%, and 14%, is 8.5%. This is calculated by summing the individual returns and dividing by the total number of returns.
To calculate the arithmetic and geometric average returns for the given stock with annual returns of 17%, 9%, -6%, and 14%, we can use the following formulas:
Arithmetic Average Return = (Return1 + Return2 + Return3 + Return4) / Number of Returns
Geometric Average Return = (1 + Return1) * (1 + Return2) * (1 + Return3) * (1 + Return4) ^ (1 / Number of Returns) - 1
Let's calculate the average returns:
Arithmetic Average Return = (17% + 9% + (-6%) + 14%) / 4
Arithmetic Average Return = 34% / 4
Arithmetic Average Return = 8.5%
Geometric Average Return = (1 + 17%) * (1 + 9%) * (1 - 6%) * (1 + 14%) ^ (1 / 4) - 1
Geometric Average Return = (1.17) * (1.09) * (0.94) * (1.14) ^ (0.25) - 1
Geometric Average Return = 1.08295 - 1
Geometric Average Return = 8.295%
Therefore, the correct answer is:
Arithmetic Average Return: 8.50%
Geometric Average Return: 8.295%
The geometric average return, on the other hand, is 8.295%. This is calculated by multiplying the compounded returns (1 + Return1) * (1 + Return2) * (1 + Return3) * (1 + Return4) and then taking the nth root, where n is the number of returns, and subtracting 1.
The arithmetic average return represents the simple average of returns, while the geometric average return accounts for the compounding effect over time. Both measures provide insights into the overall performance of the stock.
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Ratios are mostly calculated using data drawn from the financial statements of a firm. However, another group of ratios, called market value ratios, relate to a fim's observable market value, stock prices, and book values, integrating information from both the market and the firm's financial statements. Consider the case of Cold Goose Metal Works Inc.: Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $9,000,000 and a current stock price of $34.00 per share. The company is forecasting an increase of 25% for its after-tax income next year, but it aiso expects it will have to issue 2,500,000 new shares of stock (raising its shares outstanding from 5,500,000 to 8,000,000 ). If Cold Goose's forecast turns out to be correct and its price/earnings. (P/E) ratio does not change, what does the company's management expect its stock price to be one year from now? (Round any P/E ratio calculation to four decimal places.) $29.23 per share $34.00 per share $21.92 per share $36.54 per share
Future stock price expected to be $29.23 per share one year from now.
To calculate the expected stock price one year from now, we need to determine the future earnings after tax and the price-to-earnings (P/E) ratio.
Calculate the future earnings after tax:Next year's after-tax income is forecasted to increase by 25%. Therefore, the future earnings after tax would be:
Future Earnings After Tax = Current Earnings After Tax + (Current Earnings After Tax * Forecasted Increase)
= $9,000,000 + ($9,000,000 * 0.25)
= $9,000,000 + $2,250,000
= $11,250,000
Calculate the new number of shares outstanding:The company expects to issue 2,500,000 new shares of stock, increasing the total shares outstanding from 5,500,000 to 8,000,000.
Calculate the future earnings per share (EPS):Future EPS = Future Earnings After Tax / New Shares Outstanding
= $11,250,000 / 8,000,000
= $1.40625
Calculate the future stock price using the P/E ratio:The P/E ratio is the current stock price divided by the earnings per share (P/E ratio = Stock Price / EPS). Since the problem states that the P/E ratio will not change, we can use the current P/E ratio to calculate the future stock price.
Current P/E ratio = Stock Price / Current EPS
Current EPS = Current Earnings After Tax / Current Shares Outstanding
= $9,000,000 / 5,500,000
= $1.63636 (approx.)
Current P/E ratio = $34.00 / $1.63636
= 20.7727 (approx.)
Future Stock Price = Future EPS * Current P/E ratio
= $1.40625 * 20.7727
≈ $29.23 per share
Therefore, the company's management expects its stock price to be approximately $29.23 per share one year from now.
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3. Treasury Pricing [【【 LO1] With regard to bid and ask prices on a Treasury bond, is it possible for the bid price to be higher? Why or why not?
No, it is not possible for the bid price of a Treasury bond to be higher than the ask price.
The bid price refers to the price at which a buyer is willing to purchase the bond, while the ask price represents the price at which a seller is willing to sell the bond. The bid price is typically lower than the ask price.
This price difference is due to the nature of the bond market, where buyers are seeking to purchase securities at a lower price, while sellers aim to sell at a higher price. The bid price reflects the maximum price buyers are willing to pay, while the ask price reflects the minimum price sellers are willing to accept.
The bid and ask prices form a bid-ask spread, with the difference between the two representing the market liquidity and transaction costs. Market participants, such as brokers or dealers, facilitate the buying and selling process by offering bids and asks within this spread.
Therefore, it is not possible for the bid price to be higher than the ask price in the context of Treasury bond pricing.
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In preparing its bank reconciliation for the month of April, Century, Inc. has available the following information: Balance per bank statement, 4/30 $78,925 450 NSF check returned with 4/30 bank statement Deposits in transit, 4/30 12,000 Outstanding checks, 4/30 10,000 25 Erroneous Bank charge (deduction) What is the correct balance of cash at April 30? Select one: O a. $81,400 O b. $80,950 O c. $80,500 O d. $80,925 O e. $81,350
The correct balance of cash at April 30 is $81,350.Bank Reconciliation is a process that matches the balance of cash in an entity's bank statement to the balance of cash in the company's financial records.
It assists in detecting any discrepancies between the two amounts, such as unauthorized charges, bank fees, bank errors, etc.Steps to prepare a bank reconciliation statement are:Comparing the balance in the bank statement with the balance in the organization's records.
Recording any deposits that appear on the bank statement but not in the organization's records and any checks or withdrawals that appear on the bank statement but not in the organization's records.Updating the cash account in the organization's records by incorporating all recorded transactions that are not reflected in the bank statement.
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Some of the advantages of teams in the workplace are to increase employees' motivation, make better decisions, and benchmark with co-workers for comparison that leads to reduce performance O True Fabe
The statement "Some of the advantages of teams in the workplace are to increase employees' motivation, make better decisions, and benchmark with co-workers for comparison that leads to reduced performance" is false.
The advantages of teams in the workplace are to increase employees' motivation.
The statement above is true.
Teams in the workplace help to increase employees' motivation. Members of a team receive praise for their efforts, and this can lead to an increase in their motivation.
Make better decisions: Teams are often made up of members with varying areas of expertise. A team can, therefore, be more effective at making decisions because it can bring together a range of different opinions, ideas, and perspectives.
Benchmark with co-workers for comparison that leads to reduced performance. The statement above is false. Benchmarking with coworkers will not lead to a reduction in performance. Rather, benchmarking with coworkers can help to identify areas where an individual may need to improve, leading to increased performance.
In conclusion, the statement "Some of the advantages of teams in the workplace are to increase employees' motivation, make better decisions, and benchmark with co-workers for comparison that leads to reduced performance" is false.
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Do shoppers really enjoy the online shopping experience? Compare and contrast the experience of shopping at your favorite retail store with the experience of shopping online. Make one list of things you enjoy about shopping in stores, and create a separate list of things you like about shopping online. How do your lists differ? What are the advantages and disadvantages of shopping in a physical store? What are advantages and disadvantages of shopping online? Can Internet based businesses deliver the rich shopping experience that brick-and-mortar stores provide? How might smartphones and other handheld devices change the way people shop?
Shoppers have different preferences and experiences with online shopping. The advantages and disadvantages of both methods should be considered based on individual needs and preferences.
The enjoyment of the online shopping experience varies among shoppers. When comparing shopping at a favorite retail store to shopping online, there are distinct differences. In stores, I enjoy the following:
1. Being able to physically see and touch products before purchasing.
2. Interacting with knowledgeable staff for advice and assistance.
3. Immediate gratification with the ability to take items home right away.
On the other hand, shopping online offers the following advantages:
1. Convenience of shopping from anywhere at any time.
2. Access to a wider range of products and brands.
3. Comparing prices and reading reviews easily.
There are disadvantages to both methods. In physical stores, potential downsides include limited selection, crowds, and the need for transportation. With online shopping, disadvantages can include longer delivery times, inability to physically examine products, and potential for scams.
Internet-based businesses can provide a rich shopping experience through features like detailed product descriptions, high-quality images, customer reviews, and personalized recommendations. Smartphones and handheld devices have revolutionized shopping by allowing users to browse and purchase products on-the-go, making the shopping experience more convenient and accessible.
In conclusion, shoppers have different preferences and experiences with online shopping. The advantages and disadvantages of both methods should be considered based on individual needs and preferences.
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Examine and discuss the UAE’s most recent economic development efforts. Your project must focus on one of the plans to boost the economy, mention and explain, with relevant examples, THREE challenges/problems faced by the government and people of the UAE in the economic
with References Please
The UAE's most recent economic development effort is the UAE Vision 2021, a comprehensive plan to diversify the economy and reduce dependence on oil. One of the key initiatives under this plan is the promotion of non-oil sectors such as tourism, finance, and technology. However, the government and people of the UAE face challenges in achieving their economic goals, including workforce diversification, sustainable development, and global economic volatility.
The UAE's economic development efforts have been focused on diversifying the economy and reducing reliance on oil revenues. The UAE Vision 2021 aims to transform the country into a knowledge-based and innovation-driven economy. To achieve this, the government has implemented various initiatives to promote sectors like tourism, finance, and technology. For example, Dubai has become a global hub for tourism and business, attracting millions of visitors each year.
However, the government and people of the UAE face challenges in their economic development journey. One challenge is workforce diversification. While the UAE has made significant progress in attracting skilled professionals from around the world, there is a need to enhance the skills and capabilities of the local workforce. This requires investing in education and training programs to bridge the skills gap and promote entrepreneurship among Emiratis.
Another challenge is ensuring sustainable development. The UAE is committed to preserving the environment and mitigating climate change. Balancing economic growth with environmental sustainability is a complex task. The government has taken steps to promote renewable energy and sustainable practices, but further efforts are needed to address issues such as water scarcity and waste management.
Additionally, the global economic volatility poses a challenge to the UAE's economic development. Being an open economy, the UAE is vulnerable to external factors such as fluctuations in oil prices and global economic downturns. The government has implemented measures to diversify revenue sources and enhance economic resilience, but continuous monitoring and adaptation to changing global dynamics are essential.
In conclusion, while the UAE's economic development efforts have been commendable, challenges persist in terms of workforce diversification, sustainable development, and global economic volatility. By addressing these challenges, the UAE can further enhance its economic resilience and achieve its vision for a diversified and prosperous economy.
UAE's economic development efforts, including the UAE Vision 2021 and specific initiatives undertaken to promote non-oil sectors. Understanding the challenges faced by the government and people of the UAE in their economic development journey can provide valuable insights into the complexities of building a sustainable and diversified economy.
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Read the Continuing Case at the end of Chapter 15 about Carter Cleaning Company and then answer the following questions. Do you think it is important for Carter Cleaning Company to have a formal grievance process? Why or why not? Based on what you know about the Carter Cleaning Company, outline the steps in what you think would be the ideal grievance process for this company. In addition to the grievance process, can you think of anything else that Carter Cleaning Company might do to make sure grievances and gripes like this one are expressed and are heard by top management? The Grievance On visiting one of Carter Cleaning Company's stores, Jennifer was surprised to be taken aside by a long-term Carter employee, who met her as she was parking her car. "Murray (the store manager) told me I was suspended for 2 days without pay because I came in late last Thursday," said George. "I'm really upset, but around here the store manager's word seems to be law, and it sometimes seems like the only way anyone can file a grievance is by meeting you or your father like this in the parking lot." Jẹnnifer was very disturbed by this revelation and promised the employee she would look into it and discuss the situation with her father. In the car heading back to headquarters, she began mulling over what Carter Cleaning Company's alternatives might be.
Yes, it is important for Carter Cleaning Company to have a formal grievance process. A formal grievance process provides employees with a structured way to express their concerns and complaints, ensuring that their grievances are heard and addressed in a fair and consistent manner. It promotes transparency, employee satisfaction, and can help in resolving conflicts.
Carter Cleaning Company, an ideal grievance process for them could include the following steps:
1. Initial Complaint: Employees should be encouraged to first discuss their grievances with their immediate supervisor or manager.
2. Formal Written Complaint: If the issue remains unresolved, employees can submit a formal written complaint to the HR department, clearly outlining the nature of the grievance.
3. Investigation: HR should conduct a thorough investigation to gather all relevant information and evidence related to the complaint.
4. Mediation: HR can arrange a mediation session where both parties involved can have a facilitated discussion to find a mutually agreeable resolution.
5. Escalation: If the grievance remains unresolved, it can be escalated to higher levels of management or a grievance committee for further review and decision-making.
In addition to the grievance process, Carter Cleaning Company can implement other measures to ensure grievances are expressed and heard by top management. This can include regular employee surveys or feedback sessions, an open-door policy where employees can directly approach top management, and the establishment of employee representation such as a grievance committee to address concerns collectively.
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At the end of the prior year, Durney's Outdoor Outfitters reported the following information.
Accounts Receivable, Dec. 31 prior year
Accounts Receivable (Gross) (A) $ 48,151
Allowance for Doubtful Accounts (XA) 8,389
Accounts Receivable (Net) (A) $ 39,690
During the current year, sales on account were $304,548, collections on account were $289,900, write-offs of bad debts were $6,974, and the bad debt expense adjustment was $4,690.
At the end of the current year, Durney's Outdoor Outfitters has an accounts receivable balance of $43,665.
To determine the ending balance of accounts receivable for the current year, we need to calculate the net change in accounts receivable by considering the sales, collections, write-offs, and bad debt expense adjustment.
Starting with the net accounts receivable from the prior year:
Net Accounts Receivable (Dec. 31 prior year) = Accounts Receivable (Net) - Allowance for Doubtful Accounts
Net Accounts Receivable (Dec. 31 prior year) = $39,690 - $8,389
Net Accounts Receivable (Dec. 31 prior year) = $31,301
Now, let's calculate the net change in accounts receivable for the current year:
Net Change in Accounts Receivable = Sales on Account - Collections on Account - Write-offs + Bad Debt Expense Adjustment
Net Change in Accounts Receivable = $304,548 - $289,900 - $6,974 + $4,690
Net Change in Accounts Receivable = $12,364
To find the ending balance of accounts receivable for the current year, we add the net change to the starting balance:
Ending Balance of Accounts Receivable = Net Accounts Receivable (Dec. 31 prior year) + Net Change in Accounts Receivable
Ending Balance of Accounts Receivable = $31,301 + $12,364
Ending Balance of Accounts Receivable = $43,665
Therefore, at the end of the current year, Durney's Outdoor Outfitters has an accounts receivable balance of $43,665.
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On January 1, Davis issued $800,000 in 10 year, 7% bonds. The bonds were
priced to yield 9%. Interest payments are made on June 30 and December
31. Make all necessary entries for 2022 through Dec. 31, 2022.
The entries for 2022 include the initial bond issuance, interest accruals, and interest payments. The interest expense is calculated based on the bond's face value, interest rate, and time period.
On January 1, 2022, when Davis issued $800,000 in 10-year, 7% bonds, the bonds were priced to yield 9%. To make the necessary entries for 2022 through December 31, 2022, we need to consider the interest payments made on June 30 and December 31.
1. On January 1, 2022:
- Debit Cash for $800,000 (the amount received from the bond issuance).
- Credit Bonds Payable for $800,000 (the face value of the bonds).
2. On June 30, 2022:
- Debit Interest Expense for ($800,000 * 7% * 6/12) = $28,000 (the interest accrued for the first 6 months).
- Credit Cash for $28,000 (the interest payment).
3. On December 31, 2022:
- Debit Interest Expense for ($800,000 * 7% * 6/12) = $28,000 (the interest accrued for the second 6 months).
- Credit Cash for $28,000 (the interest payment).
At the end of 2022, the balance in the Bonds Payable account remains the same. This is because the principal amount is repaid at maturity, not during the interest payment dates.
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what are 2 ways in which your company can avoid a disruption
created by a regular vendor that cannot deliver a component of a
product you make?
To avoid disruptions caused by a regular vendor's inability to deliver a component, a company should diversify its supplier base and implement a contingency plan. These measures can help ensure the continuity of production and minimize the impact on the company's operations.
There are several ways in which a company can avoid a disruption caused by a regular vendor that cannot deliver a component of a product they make. Here are two possible solutions:
1. Diversify your supplier base: By having multiple vendors for the same component, you can reduce the risk of disruption caused by a single vendor. This way, if one vendor fails to deliver, you can quickly switch to another supplier without interrupting your production. It is important to establish relationships with alternative vendors in advance and ensure they meet your quality standards.
2. Implement a contingency plan: Develop a detailed contingency plan that outlines the steps to be taken if a regular vendor fails to deliver a component. This plan should include identifying alternative suppliers, establishing clear communication channels, and having a backup inventory of essential components. By having a well-prepared contingency plan, your company can minimize the impact of disruptions and maintain a smooth production process.
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Prepare a trial balance on April 30, 2020.
April 1 Invested €19,400 cash in her business in exchange for ordinary shares. 1 Hired a secretary-receptionist at a salary of €679 per week payable monthly. 2 Paid office rent for the month €1,067. 3 Purchased dental supplies on account from Dazzle Company €3,880. 10 Performed dental services and billed insurance companies €4,947. 11 Received €970 cash advance from Leah Mataruka for an implant. 20 Received €2,037 cash for services performed from Michael Santos. 30 Paid secretary-receptionist for the month €2,716. 30 Paid €2,328 to Dazzle for accounts payable due
In order to prepare a trial balance, we need to add up the balances of all of the accounts in the general ledger and put them into a table. After that, we need to check that the total debit balance equals the total credit balance. Here is the trial balance for the given transactions:
AccountsDebitCreditCash €19,400 €8,877 €28,277Accounts Receivable €4,947 €4,947Supplies €3,880 €3,880Prepaid Rent €1,067 €1,067Dental Equipment €0 €0Accumulated Depreciation-Dental Equipment €0 €0Accounts Payable €3,880 €2,328 €1,552Salary Payable €0 €0Unearned Service Revenue €0 €0Common Stock €19,400 €19,400Retained Earnings €0 €0Service Revenue €2,037 €4,947 €6,984Salaries Expense €0 €2,716 €2,716Rent Expense €0 €1,067 €1,067Supplies Expense €0 €0Insurance Expense €0 €0Depreciation Expense €0 €0Interest Expense €0 €0Totals€39,327€39,327Therefore, the total debit balance equals the total credit balance which confirms that the trial balance is correct.
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What is
the return/yield of a stock that was purchased one year ago for $30
and is now worth $18. The stock also paid a dividend of $4 for the
year.
Return/yield of -0.1333 or -13.33%. This means that the stock has experienced a negative return of 13.33% over the course of one year.
The return/yield of a stock can be calculated using the formula:
Return/Yield = (Ending Value - Beginning Value + Dividends) / Beginning Value
In this case, the stock was purchased one year ago for $30 and is now worth $18. The dividend paid for the year is $4.
Using the formula, we can calculate the return/yield:
Return/Yield = ($18 - $30 + $4) / $30
Return/Yield = ($-8 + $4) / $30
Return/Yield = -$4 / $30
Return/Yield = -0.1333 or -13.33%
The return/yield of the stock that was purchased one year ago for $30 and is now worth $18 can be calculated by subtracting the beginning value from the ending value and adding the dividends. In this case, the beginning value is $30, the ending value is $18, and the dividend is $4.
Plugging these values into the formula, we get a return/yield of -0.1333 or -13.33%. This means that the stock has experienced a negative return of 13.33% over the course of one year. It has decreased in value, taking into account both the change in price and the dividends received.
The return/yield of the stock that was purchased one year ago for $30 and is now worth $18, with a dividend of $4, is -13.33%. This negative return indicates that the stock has decreased in value over the course of one year, factoring in both the change in price and the dividends received.
It is important to consider the return/yield when assessing the performance of an investment, as it provides insight into the profitability or loss associated with owning the stock.
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Newman Taylor is settling a $21,580 loan due today by making 6 equal annual payments of $4,954.93. Click here to view factor tables. What payments must Newman Taylor make to settle the loan at an interest rate of 10%, but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 458,581.) Payments $
The first payment that Newman Taylor must make to settle the loan is $2,008.91.
To calculate the payments Newman Taylor must make to settle the loan at an interest rate of 10%, we can use the concept of present value.
The present value formula allows us to find the current value of a future payment.
First, let's find the present value factor using the factor tables.
The present value factor is a number that represents the value of receiving $1 in the future at a specific interest rate.
Given that the loan amount is $21,580 and the interest rate is 10%, we need to find the present value factor for 6 years. Looking up the factor tables, the present value factor for 6 years and 10% interest rate is 0.55839 (rounded to 5 decimal places).
Next, we need to calculate the annual payment amount that Newman Taylor must make.
We know that there will be 6 equal annual payments, so we divide the loan amount by 6.
Loan amount: $21,580
Number of payments: 6
Annual payment amount = Loan amount / Number of payments = $21,580 / 6 = $3,596.67 (rounded to 2 decimal places).
However, the problem states that the annual payments begin on the day the loan is signed, not one year later.
To account for this, we need to find the present value of the first payment.
To find the present value of the first payment, we multiply the annual payment amount by the present value factor.
Present value of the first payment = Annual payment amount * Present value factor = $3,596.67 * 0.55839 = $2,008.91 (rounded to 2 decimal places).
Therefore, the first payment that Newman Taylor must make to settle the loan is $2,008.91.
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Owner-managers collect income tax on behalf of the government and remit them to a. Canada Revenue Agency. b. their auditors. c. Canada Pension Plan. d. the Receiver General.
In the context of collecting income tax on behalf of the government, owner-managers are responsible for remitting the taxes to the Canada Revenue Agency (CRA).
The CRA is the designated authority in Canada for the administration and collection of various taxes, including income tax. Owner-managers play a crucial role in the tax system by collecting income tax from their employees or individuals on behalf of the government.
This includes deducting the appropriate amount of income tax from employee salaries or wages and ensuring its remittance to the appropriate authority. In Canada, the designated authority responsible for the administration and collection of income tax is the Canada Revenue Agency (CRA).
The CRA is a federal agency that oversees various tax-related matters, including income tax, goods and services tax (GST), and other federal tax programs. The owner-managers are required to remit the collected income tax to the CRA.
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Managing "Generational Differences" Managing diversity enables people to perform to their maximum potential. Diversity Management is the process and programs by which managers make everyone more aware of and sensitive to the needs and differences of others. 1.How would an effective leader and high performing manager successfully motivate an organization with multiple generational employees? 2. See attachment on next page: Traditionalists, Baby Boomers, Gen Xers, Millennials (Gen Y), Gen Zers
An effective leader and high-performing manager can successfully motivate an organization with multiple generational employees by understanding and leveraging
1)The unique strengths, values, and motivations of each generation. They can:
a. Foster a culture of inclusivity and respect, where each generation feels valued and appreciated for their contributions.
b. Provide clear goals and expectations that align with the organization's mission and values, allowing employees from different generations to understand the bigger picture and their role in it.
c. Tailor communication strategies to accommodate different generational preferences. For example, using face-to-face meetings for Traditionalists and Boomers, incorporating technology for Gen Xers and Millennials, and utilizing social media platforms for Gen Zers.
d. Offer opportunities for professional development and growth that cater to the unique aspirations and learning styles of each generation.
e. Encourage cross-generational collaboration and mentoring, where employees from different generations can learn from and support one another, fostering a sense of unity and shared knowledge.
2)Traditionalists: Born 1928-1945; tend to be loyal, hardworking, and respectful of authority.
Baby Boomers: Born 1946-1964; tend to be competitive, optimistic, and driven.
Gen Xers: Born 1965-1980; tend to be independent, adaptable, and focused on work-life balance.
Millennials (Gen Y): Born 1981-1996; tend to be tech-savvy, confident, and value work that has meaning and purpose.
Gen Zers: Born 1997-2012; tend to be entrepreneurial, socially conscious, and value diversity and inclusion.
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Ruby Toy has developed a new toy called the Magic Robot. The company has a standard costing system to help control costs and has establish the following standards for the toy. Direct Material: 8 diodes per toy at $0.30 per diode; Direct Labour: 1.2 hours per toy at $7 per hour. During August, the company produced 5,000 toys. Production data on the toy for August follows: Direct Materials: 70,000 diodes were purchased at a cost of $0.28 per diode. 20,000 of these diodes were still in inventory at the end of the month. (there was no opening Inventory). Direct Labour: 6,400 direct were worked at the cost of $48,000. Compute the direct material price variance for August. What is a possible cause of this variance?
calculate the material quantity variance and indicate a possible cause.calculate the direct labour rate and efficiency variance, and indicate possible cause for this.
The direct material price variance for August is $400 favorable. One possible cause of this variance could be the purchase of diodes at a lower cost per diode than the standard.
The direct material price variance is calculated by subtracting the actual cost of materials from the standard cost of materials and multiplying the difference by the actual quantity of materials used. In this case, the standard cost per diode is $0.30, and the actual cost per diode is $0.28. The difference in cost per diode is $0.02, and since 70,000 diodes were purchased and used, the total favorable variance is $0.02 * 70,000 = $1,400 favorable.
To calculate the direct material price variance, we need to consider the diodes that were still in inventory at the end of the month. Since 20,000 diodes were still in inventory, the favorable variance related to those diodes is $0.02 * 20,000 = $400 favorable.
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Intro A stock just paid an annual dividend of $2.3. The dividend is expected to grow by 8% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1.25% per year, from 8% in year 4 to 3% in year 8 and stay at that level forever. The required rate of return is 12%. Part 1 What is the expected dividend in 8 years? 2+ decimals Save Part 2 What is the value of the stock in 8 years? 1+ decimals Save Part 3 What is the value of the stock now? Attempt 1/1 Attempt 1/1 Attempt 1/1
1) Expected dividend in 8 years: $4.32.
2) Value of the stock in 8 years: $36.00.
3) Value of the stock now: $20.83.
1)To calculate the expected dividend in 8 years, we start with the initial dividend of $2.3 and apply the growth rate of dividends. For the first 4 years, the growth rate is 8%, resulting in a dividend of $2.3 * (1 + 0.08)⁴ = $3.34. From year 5 to year 8, the growth rate declines by 1.25% per year.
Therefore, the dividend in year 8 is $3.34 * (1 + 0.08 - 0.0125)⁴ = $4.32.
2) The value of the stock in 8 years can be determined using the dividend discount model (DDM). We divide the expected dividend in year 8 ($4.32) by the required rate of return (12% or 0.12), resulting in $4.32 / 0.12 = $36.00.
3) To calculate the value of the stock now, we need to discount the future value (value in 8 years) back to the present using the required rate of return.
The present value of the stock is obtained by dividing the value in 8 years ($36.00) by (1 + 0.12)⁸ = $20.83.
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A bottling machine has a theoretical capacity of 93 bottles per minute. During every nine hour shift
it operates continuously but is shut down 20 minutes for cleaning, 12 minutes inspection, and 14
minutes for lubrication. What is its rated capacity?
A) 95 bottles/minute
B) 90 bottles/minute
C) 85 bottles/minute
D) 100 bottles/minute
The rated capacity of the bottling machine, after accounting for the total downtime of 46 minutes during a nine-hour shift, is 47 bottles per minute.
The rated capacity of a bottling machine is the maximum number of bottles it can produce per minute under normal operating conditions. In this case, the machine has a theoretical capacity of 93 bottles per minute. However, during every nine-hour shift, it is shut down for a total of 46 minutes for cleaning, inspection, and lubrication.
To find the rated capacity, we need to subtract the total downtime from the theoretical capacity.
Total downtime = 20 minutes (cleaning) + 12 minutes (inspection) + 14 minutes (lubrication) = 46 minutes
Rated capacity = Theoretical capacity - Total downtime = 93 bottles per minute - 46 minutes = 47 bottles per minute
Therefore, the rated capacity of the bottling machine is 47 bottles per minute.
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A LORUP is similar to a RIZEN but it is taller and steeper.
A RIZEN is similar to a MOUNTAIN but it is taller and steeper.
A BUMPA is similar to a HILL but it is shorter and steeper.
1. A BUMPA is shorter than a RIZEN.
ATrue
BFalse
The statement "A BUMPA is shorter than a RIZEN" is true.
To understand why this statement is true, let's break down the given information:
- A LORUP is similar to a RIZEN but it is taller and steeper.
- A RIZEN is similar to a MOUNTAIN but it is taller and steeper.
- A BUMPA is similar to a HILL but it is shorter and steeper.
Based on this information, we can see that a RIZEN is taller and steeper than a LORUP. And since a BUMPA is shorter and steeper than a HILL, we can infer that a BUMPA is also shorter than a RIZEN.
In summary, a BUMPA is indeed shorter than a RIZEN, making option A True the correct answer.
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A process requires a 11 second setup for each batch. When producing, the process can produce one unit every 9 seconds. Demand for the product is 6 units per minute.
With a batch size of 35 units, what is the process utilization?
The process utilization is 112%. This indicates that the process is being utilized at a higher rate than the maximum production rate, suggesting that it may be running more efficiently than necessary.
To calculate the process utilization, we need to determine the production rate and compare it to the maximum production rate.
First, let's calculate the production rate per batch. Since each batch requires an 11-second setup and can produce one unit every 9 seconds, the total time per batch is 11 seconds setup time + (35 units × 9 seconds per unit). This equals 316 seconds per batch.
Next, let's calculate the production rate per minute. Since there are 60 seconds in a minute, we divide 60 by the total time per batch: 60 seconds per minute ÷ 316 seconds per batch. This gives us approximately 0.19 batches per minute.
Now, let's calculate the maximum production rate per minute. Since the demand is 6 units per minute, we divide the demand by the batch size: 6 units per minute ÷ 35 units per batch. This gives us approximately 0.17 batches per minute.
Finally, let's calculate the process utilization. We divide the production rate per minute by the maximum production rate per minute: 0.19 batches per minute ÷ 0.17 batches per minute. This gives us a process utilization of approximately 1.12, or 112%.
Therefore, the process utilization is 112%. This indicates that the process is being utilized at a higher rate than the maximum production rate, suggesting that it may be running more efficiently than necessary.
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or many years, Manama Corporation has used a straightforward absorption costing approach to cost-plus pricing, with a markup percentage of 25% It has recently lost considerable business to foreign competitors that have become very aggressive in the marketplace. These firms appear to be using target costing. An example of Manama Corporation's product no. 700, which has the following unit-cost characteristics: direct materials, $65; direct labor, $95; manufacturing overhead, $50, and selling and administrative expenses, $40. The going market price for an identical product of identical quality is $260, which is below what Manama Corporation is charging Required: a) What is Manama Corporation's selling price for product no. 700 under its current absorption costing approach to cost-plus pricing? (2 marks) b) If Manama Corporation used target costing for item no. 700, what should have been its target cost per unit if the company desired to meet market price of $260 and maintain its current rate of profit on sales. (2 marks)
a) Manama Corporation's selling price for product no. 700 under its current absorption costing approach to cost-plus pricing is $275.
b) If Manama Corporation used target costing for item no. 700 and desired to meet the market price of $260 while maintaining its current rate of profit on sales, the target cost per unit should have been $220.
Under the current absorption costing approach, Manama Corporation adds a markup percentage of 25% to the total cost of producing a product to determine its selling price. For product no. 700, the total cost per unit is calculated by summing up the direct materials, direct labor, manufacturing overhead, and selling and administrative expenses. Thus, the total cost per unit is $65 (direct materials) + $95 (direct labor) + $50 (manufacturing overhead) + $40 (selling and administrative expenses) = $250. Adding a 25% markup to this cost gives us the selling price: $250 + ($250 * 0.25) = $275.
However, due to aggressive foreign competitors, Manama Corporation needs to adopt a target costing approach to meet the market price of $260 while maintaining its current rate of profit. Target costing involves determining the target cost per unit based on the market price and the desired profit margin. In this case, the target cost per unit can be calculated by subtracting the desired profit margin from the market price: $260 - ($260 * 0.25) = $195. This target cost per unit of $195 would allow Manama Corporation to achieve the desired profit margin while selling the product at the market price of $260.
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Nasdaq is an example of which of the following?
a centralized exchange
an over-the-counter market
a trading algorithm
primary financial market
Nasdaq, which stands for the National Association of Securities Dealers Automated Quotations. Nasdaq is an example of an over-the-counter market. So, option B is the right answer.
Nasdaq, which stands for the National Association of Securities Dealers Automated Quotations, is a prominent stock exchange in the United States. However, it is specifically categorized as an over-the-counter (OTC) market rather than a centralized exchange.
Unlike centralized exchanges, such as the New York Stock Exchange (NYSE), where trading occurs on a physical trading floor, Nasdaq operates through a computerized network.
It facilitates electronic trading and provides a platform for buyers and sellers to trade securities directly without the need for intermediaries. This decentralized structure allows for increased flexibility and efficiency in trading.
As an OTC market, Nasdaq primarily deals with stocks of technology companies, but it also includes securities from other sectors. It provides a venue for public companies to list their shares and for investors to buy and sell these shares electronically.
Nasdaq also incorporates market makers who facilitate liquidity by providing bid and ask prices for securities.
In summary, Nasdaq is an example of an over-the-counter market, offering a computerized platform for trading securities electronically, providing a decentralized alternative to centralized exchanges like the NYSE.
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On June 10, Pharoah Company purchased $6,450 of merchandise on account from Riverbed Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $480 on June 11. Damaged goods totaling $350 are returned to Riverbed for credit on June 12. The fair value of these goods is $70. On June 19, Pharoah pays Riverbed Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Pharoah Company.
On June 10, $6,450 was recorded in both Accounts Payable and Inventory. On June 11, $480 was recorded as Freight Expense and Cash. On June 12, $350 was recorded in both Accounts Payable and Inventory. Finally, on June 19, $6,170 was recorded in Accounts Payable, $130 in Inventory, and $6,040 in Cash.
Separate entries for each transaction on the books of Pharoah Company are as follows:
June 10:
Accounts Payable $6,450
Inventory $6,450
This entry records the purchase of merchandise on account from Riverbed Company. The inventory increases, reflecting the goods received, and the accounts payable represents the amount owed to Riverbed.
June 11:
Freight Expense $480
Cash $480
This entry records the payment of freight costs incurred by Pharoah Company for the purchased merchandise. The freight expense is recognized as an expense, and cash is reduced to reflect the payment made.
June 12:
Accounts Payable $350
Inventory $350
This entry records the return of damaged goods to Riverbed Company. The inventory is reduced to reflect the returned goods, and the accounts payable is decreased to reflect the reduced amount owed due to the return.
June 12:
Accounts Payable $280
Inventory $70
Loss on Damaged Goods $210
This entry records the recognition of a loss on damaged goods. The inventory is further reduced to reflect the fair value of the damaged goods returned, and a loss on damaged goods is recorded as an expense.
June 19:
Accounts Payable $6,170
Inventory $130
Cash $6,040
This entry records the payment to Riverbed Company in full, less the purchase discount. The accounts payable is reduced by the payment amount, the inventory is adjusted for the remaining goods, and cash is reduced to reflect the payment made.
In conclusion, the provided journal entries demonstrate the transactions for Pharoah Company's purchase, payment of freight costs, return of damaged goods, recognition of loss on damaged goods, and final payment to Riverbed Company.
By accurately recording these transactions, Pharoah Company maintains an updated record of its inventory, liabilities, and expenses, allowing for proper financial reporting and tracking of its business activities.
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All of the following describe the costs of globalization EXCEPT? It decreases product and service quality. It crushes competition. It creates access to global export markets and advanced technology. It hampers economic freedom.
The option that does not describe a cost of globalization is: "It creates access to global export markets and advanced technology." This option actually highlights one of the benefits of globalization.
The costs of globalization refer to the negative impacts or disadvantages associated with the process of increasing interconnectedness and integration of economies around the world. Let's evaluate each option to determine which one does not describe the costs of globalization:
1. It decreases product and service quality: One of the costs of globalization can be a decrease in product and service quality. When companies focus on reducing costs to remain competitive in the global market, they may cut corners and compromise on quality. So, this statement describes a cost of globalization.
2. It crushes competition: Globalization can indeed lead to increased competition, as companies from different countries can now compete in the same market. This can sometimes lead to the consolidation or elimination of smaller local businesses. Therefore, this statement accurately describes a cost of globalization.
3. It creates access to global export markets and advanced technology: This statement describes one of the benefits of globalization rather than a cost. Globalization allows companies to access new markets around the world, which can increase their sales and profits.
4. It hampers economic freedom: Globalization can sometimes lead to restrictions on economic freedom, as countries may impose trade barriers or regulations to protect domestic industries. This can limit the freedom of companies to engage in global trade. Therefore, this statement describes a cost of globalization.
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demonstrate with the aid of a diagram the effect of opening
trade on a competitive industry with external economies ? (20
marks)
Opening trade can have a significant impact on a competitive industry with external economies. External economies refer to the benefits that a firm or industry receives from factors outside of its control, such as the presence of a skilled labor force or a well-developed infrastructure.
To demonstrate the effect of opening trade on such an industry, we can use a diagram. Consider a competitive industry with a downward-sloping demand curve and an upward-sloping supply curve. Initially, without trade, the industry operates at a domestic equilibrium point where quantity supplied equals quantity demanded.
When trade is opened, firms in the industry can now access a larger market and benefit from economies of scale. This results in an outward shift of the supply curve, indicating increased production and lower average costs. As a result, the equilibrium price decreases, and the quantity supplied increases. Consumers also benefit from lower prices.
In the diagram, the new equilibrium point represents the industry after trade. The lower price and increased quantity supplied demonstrate the positive impact of opening trade on a competitive industry with external economies. This is because trade allows firms to expand their operations, achieve economies of scale, and lower production costs, ultimately benefiting both producers and consumers.
In summary, opening trade can lead to lower prices, increased production, and improved efficiency in a competitive industry with external economies. This diagram visually depicts the positive effects of trade on such an industry.
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Required information [The following information applies to the questions displayed below.] Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model no. 6754: Variable costs, $18.00 per unit Annual fixed costs, $985,800 Model no. 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,114,400 Corrigan's selling price is $67 per unit for the universal gismo, which is subject to a 15 percent sales commission. (In the following requirements, ignore income taxes.)2-A) Calculate the net income of the two systems if sales and production are expected to average 49,000 units per year.
B) Assume Model 4399 requires the purchase of additional equipment that is not reflected in the preceding figures. The equipment will cost $410,000 and will be depreciated over a five-year life by the straight-line method. How many units must Corrigan sell to earn $957,000 of income if Model 4399 is selected? As in requirement 2, sales and production are expected to average 49,000 units per year. (Do not round intermediate calculations and round your final answer up to nearest whole number.)
C) Ignoring the information presented in part 3, at what volume level will the annual total cost of each system be equal?
A) Calculation of net income:ParticularsModel No. 6754Model No. 4399 Selling price per unit $67 $67 Less: Sales commission (15%) $10.05 $10.05 Net selling price per unit $56.95 $56.95 Less: Variable costs per unit $18.00 $11.80 Contribution margin per unit $38.95 $45.
15 Total Contribution Margin (49,000 units) $1,908,550 $2,210,350 Less: Annual fixed costs $985,800 $1,114,400 Net income $922,750 $1,095,950B) Calculation of required unit sales:ParticularsModel No. 4399 Annual fixed costs $1,114,400 Less: Depreciation ($410,000/5) $82,000 Plus: Additional fixed costs $410,000 Total annual fixed costs $1,442,400 Target net income $957,000 Variable costs per unit $11.80 Selling price per unit $67 Less: Sales commission (15%) $10.05 Net selling price per unit $56.95 Contribution margin per unit $45.15 Required unit sales (rounded up) 71,645 unitsC) Calculation of equal cost volume:Let x be the volume level of production.ParticularsModel No. 6754Model No. 4399 Selling price per unit $67 $67 Less: Sales commission (15%) $10.05 $10.05 Net selling price per unit $56.95 $56.95 Less: Variable costs per unit $18.00 $11.80 Contribution margin per unit $38.95 $45.15 Volume of production (units) x x Contribution margin (49,000 units) $1,908,550 $2,210,350 Less: Annual fixed costs $985,800 $1,114,400 Profit $922,750 $1,095,950 $922,750 + $985,800 = $1,908,550 + $1,114,400$1,908,550 + $1,114,400 = $2,018,250x = 51,807.68 unitsTherefore, the required information and calculation has been presented in 160 words.
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