Which of the following would shift the long-run aggregate supply curve right? a. both an increase in the capital stock and an increase in the price level b. an increase in the capital stock, but not an increase in the price level c. an increase in the money supply, but not an increase in the capital stock d. neither an increase in the money supply nor an increase in the capital stock

Answers

Answer 1

Answer:

b. an increase in the capital stock, but not an increase in the price level.

Explanation:

In order to understand both short-run economic fluctuations and how the economy movement from short to long run, we need the aggregate supply and aggregate demand model.

An increase in the capital stock, but not an increase in the price level would shift the long-run aggregate supply curve right.

The long-run aggregate supply curve would shift rightward when immigration from foreign countries rises or technology improves.

When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports


Related Questions

Which of the following statements generates the greatest amount of disagreement among economists? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try to stabilize the economy.

Answers

Answer:

d. Government should use fiscal policy to try to stabilize the economy.

Explanation:

Suggesting that the government should use fiscal policy to try to stabilize the economy generates the greatest amount of disagreement among economists because the process of implementing fiscal policy usually experiences lag as it is being slowed down by the political system (bureaucracy) of checks and balances.

Fiscal policy is the use of government expenditures, revenues and tax policies to influence macroeconomic conditions such as employment, inflation and Aggregate Demand (ADl in a specific country.

The benefits of fiscal policy is that investments, savings and growth is usually influenced in the long-run while it basically influences aggregate demand for goods and services in the short-run.

Economic cost of production differ from accounting costs in that A. accounting cost includes expenditures for hired resources while economic cost does not. B. economic cost includes expenditures for hired resources while accounting cost does not. C. accounting costs are always larger than economic cost. D. economic cost adds the opportunity cost of a firm using its own resources while accounting cost does not.

Answers

Answer:

D. economic cost adds the opportunity cost of a firm using its own resources while accounting cost does not.

Explanation:

Accounting cost is equal to total explicit Cost. It is the actual cost expended in carrying out a project.

Economic cost is explicit cost plus opportunity cost.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Economic cost is usually larger than accounting cost.

I hope my answer helps you

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 27,000 77,000 Raw material (grams) 57,000 47,000 Each unit of finished goods requires 3 grams of raw material. The company plans to sell 740,000 units during the year. The number of units the company would have to manufacture during the year would be:

Answers

Answer:

790,000

Explanation:

Data provided

Budgeted sales = 740,000

Desired ending inventory = 77,000

Beginning inventory = 27,000

The computation of number of units is shown below:-

Number of units to be manufactured = Budgeted sales + Desired ending inventory - Beginning inventory

= 740,000 + 77,000 - 27,000

= 817,000 - 27,000

= 790,000

Therefore for computing the number of units manufactured we simply applied the above formula.

A company purchased a 3-acre tract of land for a building site for $480,000. The company demolished the old building at a cost of $25,000, but was able to sell scrap from the building for $2,800. The cost of title transfer was $1,550 and attorney fees for reviewing the contract was $760. Property taxes paid were $9,500, of which $900 covered the period after the purchase date. The capitalized cost of the land is: Multiple Choice $514,860. $514,610. $513,110. $379,610.

Answers

Answer:

$513,110

Explanation:

The computation of the cost of the land is shown below:

= Purchase tract of land + demolished cost of old building - scrap of the building + title transfer cost + attorney fees + property taxes - amount covered the period

= $480,000 + $25,000 - $2,800 + $1,550 + $760 + $9,500 - $900

= $513,110

We simply applied the above formula

Present value of bonds payable; discount Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder Co. issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable, using the present value tables in Exhibits 8 and 10. Round to the nearest dollar.

Answers

Answer:

$23,021,880.00

Explanation:

The present value of the bond consists of the present value of semiannual coupon payment and present value of face value discounted using the market interest rate of 9% per year(but 4.5% semiannually)

present of face value=face value*discount factor

discount factor=1/(1+4.5%)^10=0.64393

present value of face value=$25,000,000*0.64393 =$16,098,250.00  

Present value of semiannual coupon=coupon payment*discount factor

The discount factor is the present value of annuity of 4.5% for ten periods i.e 7.91272

coupon payment=$25,000,000*7%*6/12=$875000

present of coupon=7.91272 *$875000 =$6,923,630.00  

total present value=$6,923,630.00+$16,098,250.00=$23,021,880.00  

The required reserve ratio is 0.05. If the Federal Reserve buys​ $1,000,000 worth of bonds from a bond dealer who has her account at Bank XYZ above and she deposits the entire​ $1,000,000 into a checking account at Bank​ XYZ, what will be the new required and excess reserves for this bank​ (assume no new loans are​ made)? (Remember that required reserves are found by applying the required reserve ratio to the amount of total checkable​ deposits.)

Answers

Missing information:

total deposits in bank XYZ = $4,000,000

total reserves = $3,800,000

Answer:

the required reserve = $250,000

excess reserves = $4,550,000

Explanation:

required reserve ratio = 5%

the Fed buys $1,000,000 worth of bonds

the $1,000,000 are deposited entirely in bank XYZ

total checkable deposits will increase to $5,000,000

the required reserve = $5,000,000 x 5% = $250,000

excess reserves = total checkable deposits - total loans - required reserves = $5,000,000 - $200,000 - $250,000 = $4,550,000

Bingo Land Inc. has a defined benefit pension for their employees. For the fiscal year 2019, the PBO beginning balance was $1,800. During the year, Service cost was $400. There was a Loss on PBO of ($150) during the year. The discount rate used by the actuaries is 6%. Plan assets had a beginning balance of $1,200 for 2019. The plan return was $ 144 with an expected return of $96 for the year. The net loss on pension beginning balance was ($50) at 1/1/2019. Bingo Land contributed $ 50 to plan assets at the end of the year. What is the balance in Net pension Gain/(Loss) as of 12/31/2019

Answers

Answer:

Ending balance is $152

Explanation:

The table is attached below

In​ 2016, the Allen Corporation had sales of $ 68 ​million, total assets of $ 50 ​million, and total liabilities of $ 18 million. The interest rate on the​ company's debt is 5.8 ​percent, and its tax rate is 35 percent. The operating profit margin is 13 percent. a. Compute the​ firm's 2016 net operating income and net income. b. Calculate the​ firm's operating return on assets and return on equity.​ (Hint: You can assume that interest must be paid on all of the​ firm's liabilities.) a. Compute the​ firm's 2016 net operating income and net income. The​ firm's 2016 net operating income is ​$ nothing million. ​ (Round to two decimal​ places.)

Answers

Answer:

Explanation:

Sales - $68,000,000

Total assets - $50,000,000

Total Liabilities - $18,000,000

Interest rate - 5.8%

Tax rate - 35%

Profit margin - 13%

a)

1)Net operating income = Sales * Operating profit margin

68,000,000*13%= $8,840,000

2)Net Income =  Operating income -         8,840,000

Interest expense (5.8%* 18,000,000)       (1,044,000)

Income before tax                                      7,796,000

Income tax (30%)                                        (2,338,000)

                                                                    5,458,000

b)

1)Operating return on assets = net operating income /assets *100

= 8,840,000/50,000,000*100= 17.68%

2)Return on equity.

Net income / Equity * 100

Equity = 50,000,000 - 18,000,000 = 32,000,000

5,458,000/32,000,000*100= 17.06%

Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. Refer to Scenario 28-1. How many people are unemployed

Answers

Answer: 3 million.

Explanation:

Unemployment is defined as when a member of a Country's labor force is jobless but actively looking for work.

In the Scenario 28-1, the discouraged people are not counted as they are discouraged and not looking for work and 1 million other people being students and retirees amongst others are not looking for work either.

The unemployed section of Mankiwland is therefore the 3 million unemployed people.

The following items were taken from the financial statements of Mint, Inc., over a three-year period: Item201820172016 Net Sales $355,000 $336,000 $300,000 Cost of Goods Sold 214,000 206,000 186,000 Gross Profit $141,000 $130,000 $114,000 Compute the amount and percentage change from 2016 to 2017. (Round percentages to 1 decimal place, e.g. 17.5%.) ItemAmountPercentage Net Sales $Enter a dollar amount Enter percentages % Cost of Goods Sold Enter a dollar amount Enter percentages % Gross Profit $Enter a total dollar amount Enter percentages %

Answers

Answer:

                                               2016                                   2017

Net Sales                      $36,000      12%               $19,000         5.7%

Cost of Goods Sold     $20,000      10.8%            $19,000        9.2%

Gross Profit                  $16,000        8.6%             $11,000         5.3%

Explanation:

Net Sales:

2016: Net Sales of 2017 - Net Sales of 2016 = $336,000 - $300,000 =$36,000

2017: Net Sales of 2018 - Net Sales of 2017 = $355,000 - $336,000 = $19,000

Percentage Change in Net Sales:

2016: ($336,000 - $300,000) / $300,000 = 12%

2017: ($355,000 - $336,000) / $336,000 = 5.7%

Cost of Goods Sold:

2016: COGS of 2017 - COGS of 2016 = $206,000 - $186,000 =$20,000

2017: COGS of 2018 - COGS of 2017 = $214,000 - $206,000 = $19,000

Percentage Change in Cost of Goods Sold:

2016: $20,000 / $186,000 = 10.8%

2017: $19,000 / $206,000 = 9.2%

Gross Profit:

2016: Gross Profit of 2017 - Gross Profit of 2016 = $130,000 - $114,000 =$16,000

2017: Gross Profit of 2018 - Gross Profit of 2017 = $141,000 - $130,000 = $11,000

Percentage Change in Gross Profit:

2016: $16,000 / $186,000 = 8.6%

2017: $11,000 / $206,000 = 5.3%

Under its executive stock option plan, B Corporation granted options on January 1, 2021, that permit executives to purchase 24 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. Ignoring taxes, what is the effect on earnings in 2022? (Round your answer to the nearest dollar amount.)

Answers

Answer:

Explanation:

Total compensation Cost = Number of shares X Fair value per share

= 24 million X $4  

= $ 96 million  

Year 2021:    

Effect on earnings = Total compensation Cost / Termination period

= $ 96 million / 3 years

= $ 32 million  

Year 2022:    

Effect on earnings = [24 million X $4 X 95% X 2/3] - $32 million

= $ 29 million

A television manufacturer would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement: Raw materials $1,500,000 Work-in-process $1,200,000 Finished goods $800,000 In addition, the cost of goods sold last year (50 weeks) was $20 million. What is its total inventory (measured as weeks of supply) Answer

Answers

Answer:

A.8.75 weeks

B.5.71

Explanation:

a.

Weeks of supply = average aggregate inventory value/weekly sales at cost

=(1,500,000 + 1,200,000 + 800,000)/(20,000,000/50)

=3,500,000/400,000

= 8.75 weeks

b.Inventory turnover = annual sales (at cost)/average aggregate inventory value

=20 million/3.5 million

= 5.71

Answer:

Weeks Of Supply = 27.82 weeks

Explanation:

Weeks of Supply tells us that on average how long an inventory will last based on current demand.

The formula to calculate it is given below

Weeks Of Supply = Average Aggregate Inventory Value/ Weekly Cost of Sales

Weeks Of Supply = Raw Materials + Work In Process + Finished Goods/ Weekly Cost of Sales

Weeks Of Supply =$1,500,000+ $1,200,000+ $800,000/$ 20,000,000/52

Weeks Of Supply = 10,700,000/384615.385= 27.82 weeks

If the weeks of supply is lower it is better.

Inventory Turnover= $ 20,000,000/10,700,000=1.87 turns

The Refining Department of​ SweetBeet, Inc. had​ 79,000 tons of sugar to account for in July. Of the​ 79,000 tons,​ 49,000 tons were completed and transferred to the Boiling​ Department, and the remaining​ 30,000 tons were​ 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The​ weighted-average method is used. Calculate the total equivalent units of production for direct materials.

Answers

Answer:

79,000 tons

Explanation:

When you use the weighted average method for determining equivalent units, the total number of equivalent units = units completed and transferred out + equivalent units in ending inventory.

In this case, since the materials are added at the beginning of the production process, all the units are 100% complete regarding direct materials.

Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 15,000 parts in stock, although sales for June are estimated to total 13,600 parts. Total sales of parts are expected to be 10,500 in July and 12,700 in August. Parts are purchased at a wholesale price of $30. The supplier has a financing arrangement by which Lakeside Components pays 60 percent of the purchase price in the month when the parts are delivered and 40 percent in the following month. Lakeside purchased 14,000 parts in May. Required: a. Estimate purchases (in units) for June and July. b. Estimate the cash required to make purchases in June and July.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Beginning inventory (parts)= 15,000 parts

Sales June= 13,600

Sales July= 10,500

Sales August= 12,700

Parts are purchased at a wholesale price of $30.

Purchasing arrangement:

60 percent on the month of the purchase.

40 percent in the following month.

Lakeside purchased 14,000 parts in May.

A) To calculate the purchase for June and July, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

June= 13,600 - 15,000= -1,400

July= 10,500 - 1,400= 9,100

B) Cash Required:

Purchase from the month

Purchase from the month before

June:

Purchase from the month= 0

Purchase from the month before= (14,000*30)*0.4= 168,000

July:

Purchase from the month= (9,100*30)*0.6= 163,800

Purchase from the month before= 0

Steve Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years, or 10,000 hours of operation. The tractor was purchased on January 1, 2019 and was used 2,400 hours in 2019 and 2,100 hours in 2020. On January 1, 2021, the company decided to sell the tractor for $70,000. Steve uses the units-of-production method to account for the depreciation on the tractor. Based on this information, the entry to record the sale of the tractor will show:

Answers

Answer:

Loss on sale = $38,000

Explanation:

The computation of sale of tractor is shown below:-

Total depreciation = ($180,000 - $20,000) × (2,400 + 2,100) ÷ 10000

= $72,000

Net book value on January 1, 2021 = Tractor cost - Total depreciation

= $180,000 - $72,000

= $108,000

Loss on sale = Total depreciation - Net book value on January 1, 2021

= $70,000 - $108,000

= $38,000

Therefore for computing the sale of tractor we simply applied the above formula.

The entry to record the sale of the tractor will show the loss of $38,000.

Here, we are going to calculate the loss or gain on the sale of the tractor.

Depreciation rate per hour = (Cost - Salvage value) / Total estimated hours

Depreciation rate per hour = ($180,000 - $20,000) / 10,000

Depreciation rate per hour = $160,000 / 10,000

Depreciation rate per hour = $16

Depreciation amount = Hours *  Depreciation rate per hour

Depreciation in 2019 = 2,400 hours * $16 per hour

Depreciation in 2019 = $38,400

Depreciation in 2020 = 2,100 hours * $16 per hour

Depreciation in 2020 = $33,600

Accumulated depreciation = Depreciation in 2019 +

Depreciation in 2020

Accumulated depreciation = $38,400 + $33,600

Accumulated depreciation = $72,000

Carrying value = Cost - Accumulated depreciation

Carrying value = $180,000 - $72,000

Carrying value = $108,000

Gain / (loss) = Sale price - Carrying value

Gain / (loss) = $70,000 - $108,000

Loss = $38,000

Therefore, the entry to record the sale of the tractor will show the loss of $38,000.

See similar solution here

brainly.com/question/16346390

A law firm received $1600 cash for legal services to be rendered in the future. The full amount was credited to the liability account Unearned Service Revenue. If the legal services have been rendered at the end of the accounting period and no adjusting entry is made, this would cause:

Answers

Answer and Explanation:

In the first situation, the journal entry is

Cash Dr $1,600

      To Unearned revenue $1,600

(Being the unearned revenue is recorded)

For this we debited the cash as it increased the assets and credited the unearned revenue as it also increased the liabilities

The adjusting entry is

Unearned Service Revenue XXXXX

          To Service Revenue XXXXX

(Being the adjusting entry is recorded)

If this entry is not recorded than it would leads to understated of revenue and overstated of liabilities

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 86000 units on hand, the sales department budgeted sales of 370000 units in June, and the company desires to have 160000 units on hand on June 30. The budgeted cost of goods sold for June would be

Answers

Answer:

The budgeted cost of goods sold for June would be $ 13,320,000

Explanation:

Budgeted cost per unit = $30

Sales budget = 370,000 units

Less: Beginning inventory = 86,000 units

Add: Ending inventory = 160,000 units

Therefore budgeted cost of goods sold for June = (370,000 - 86,000 + 160,000) × $30

= 444,000 × $30

= $13,320,000

Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $3,000. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.)

Answers

Answer:

$360

Explanation:

The computation of the depreciation deduction during the first year is shown below:

= Basis of the camera × given percentage × weightage

= $3,000 × 60% × 20%

= $360

Since the 60% is used for business and 40% used for personal

And there is a recovery period of assets of 5 years so  half year convention period applies

Your staff uses expense accounts for job-related travel. The accounting department has changed the way such expenses are handled. You need to inform your staff about the new process for reimbursement. How can you explain the new process in a way they will be able to refer to later

Answers

Answer: A memo

Explanation:

Of all the possible ways listed, a Memorandum would be the best way to go.

In businesses, Memos are considered a way to send information within the company about any changes or other happenings within a company. Memos can be sent to every individual or hung around the business. This way everybody can see it and be able to refer back to it. Memos also have proven overtime in the business world that they work for this purpose so using it would be best.

Face to face meetings would have helped explain the changes better but then people would not really be able to refer back to it.

During January, a company incurs employee salaries of $2.6 million. Withholdings in January are $198,900 for the employee portion of FICA, $390,000 for federal income tax, $162,500 for state income tax, and $26,000 for the employee portion of health insurance (payable to Company B). The company incurs an additional $161,200 for federal and state unemployment tax and $78,000 for the employer portion of health insurance. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)

Answers

Answer:

The journal entries to record would be the following:

Jan-31                           Debit                              Credit

Salaries Expenses    $2,600,000

Income Tax payable ($390,000+$162,500)     $522,500

FICA Tax payable                                                $198,900

Accounts payable                                                $26,000

Salaries payable Balance                                     $1,822,600

Jan-31                         Debit                              Credit

Salaries Expenses    $78,000

Accounts payable                                           $78,000

Jan-31                         Debit                              Credit

Payroll Tax expense $360,100

FICA Tax Payable                                       $198,900

Unemployment Tax Payable                     $161,200

Explanation:

The journal entries to record would be the following:

To record employee salary expense and withholdings

Jan-31                           Debit                              Credit

Salaries Expenses    $2,600,000

Income Tax payable ($390,000+$162,500)     $522,500

FICA Tax payable                                                $198,900

Accounts payable                                                $26,000

Salaries payable Balance                                     $1,822,600

To record fringe benefit provided by employer

Jan-31                         Debit                              Credit

Salaries Expenses    $78,000

Accounts payable                                           $78,000

To record employer payroll taxes

Jan-31                         Debit                              Credit

Payroll Tax expense $360,100

FICA Tax Payable                                       $198,900

Unemployment Tax Payable                     $161,200

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Standard hours per unit of output 3.20 DLHs Standard variable overhead rate $ 10.55 per DLH The following data pertain to operations for the last month: Actual direct labor-hours 9,400 DLHs Actual total variable manufacturing overhead cost $ 95,780 Actual output 2,700 units What is the variable overhead efficiency variance for the month?

Answers

Answer:

 Variable overhead efficiency variance $ 8,018 Unfavorable

Explanation:

Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.  

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance  

                                                                                      Hours

2,700 units should have taken (2,700 × 3.20)           8640

but did take  (actual hours)                                        9,400

Efficiency variance in hours                                      760 unfavorable

standard variable overhead cost per hour           $10.55

Variable overhead efficiency variance                  $ 8,018  Unfavorable

 Variable overhead efficiency variance $ 8,018 Unfavorable

Hawk-Dove (or Chicken) (t = tough, c = concede)
Two (young) players are engaged in a conflict situation. For instance, they may be racing their cars towards
each other on Main Street, while being egged on by their many friends. If player 1 hangs tough and stays in
the center of the road while the other player concedeschickens outby moving out of the way, then all glory is
his and the other player eats humble pie. If they both hang tough they end up with broken bones, while if
they both concede they have their bodiesbut not their prideintact.
Player 1 \ Player 2 t c
t -1,-1 10,0
c 0, 10 5, 5
The matrix form can be used to compactly represent the strategic form when there are two players even if
each player has more than two strategies to choose from.

Answers

Answer:

Sorry , didn't mean to tap this

Explanation:

At December 31, the unadjusted trial balance of H&R Tacks reports Software of $34,500 and and zero balances in Accumulated Amortization and Amortization Expense. Amortization for the period is estimated to be $6,900. Prepare the adjusting journal entry on December 31. Prepare the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance.

Answers

Answer:

Dr amortization expense  $6,900

Cr Accumulated amortization       $6,900

Explanation:

The adjusting journal on 31  December is to reflect the amortization charge of $6,900 in both accumulated amortization and amortization expense accounts.

Find attached t-accounts,note that amortization expense account would not have a closing balance as the amount of amortization is written to income statement

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $235,000, variable expenses of $132,600, and traceable fixed expenses of $63,800. The Alpha Division has sales of $545,000, variable expenses of $309,800, and traceable fixed expenses of $121,500. The total amount of common fixed expenses not traceable to the individual divisions is $120,200. What is the company's net operating income

Answers

Answer:

Operating income $32,100

Explanation:

The operating income for the company is the to be determined by aggregating the sales and cost figures of the two divisions . This is done as follows

                                                                                                 $

Total sales   (235,000 + 545,000)          =                       780,000

Variable expenses(132600+309800)     =                      (442,400)

Traceable fixed expenses(63800+121500)  =                (185300)

Common fixed expenses                                                   (120200 )

Operating income                                                                  32,100

Assume Digby expands operations in Asia Pacific in the coming year. In doing so, they have added capacity to fill all demand in-house and have increased automation to reduce labor cost by 10%. For clarity, assume the following are true: Daze material cost is still $12.75. Daze labor cost last year was $9.00. Daze will be priced at $32.50 per unit, in American dollars. Shipping costs from the Americas to Asia Pacific are $2.50 per unit. What will Daze's contribution margin be in Asia Pacific for the coming year

Answers

Answer:

$9.15

Explanation:

Contribution margin is the net value of sales and variable cost of a product. We need to deduct variable cost from selling price of a product to calculate the contribution margin .

First we need to determine the total variable cost.

Labor Cost ( $9 x ( 1 - 0.1 ) ) $8.1

Material cost                        $12.75

Shipping cost                       $2.50

Total Variable cost              $23.35

Price = $32.50

Contribution Margin  = Selling price - Variable cost

Contribution Margin = $32.50 - $23.35 = $9.15

On January 1, a company issued and sold a $408,000, 9%, 10-year bond payable, and received proceeds of $403,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:

Answers

Answer and Explanation:

The Journal entry is shown below:-

Bond interest expense Dr, $18,610

         To Cash $18360

           To Discount on bonds $250

(Being first interest payment is recorded)

For recording the first interest payment we simply debited the bond interest expenses as it increased the expenses and we credited cash and discount on bonds as  it reduced the assets and the discount should be credited

Working Note

Total discount on bonds issued = Sold bonds - Received proceeds

= $408,000 - $403,000

= $5,000

Amortization of Semi Annual Discount = Total discount on bonds issued ÷ Number of periods

= $5,000 ÷ 20

= $250

Cash interest paid = Sold bonds × Interest rate × From Jan to June ÷ Total number of months in a year

= $408,000 × 9% × 6 ÷ 12

= $18,360

Total Interest expense = Cash interest paid + Amortization of Semi Annual Discount

= $18,360 + $250

= $18,610

Evanson Company expects to produce 512,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows: Direct materials $ 7 Direct labor 8 Variable manufacturing overhead 9 Fixed manufacturing overhead 3 Prepare a flexible manufacturing budget using 20,000 unit increments.

Answers

Answer:

Total Cost using 20,000 increments is as follows:

40,000 units - $1,080,000 (Total Cost)

60,000 units - $1,620,000 (Total Cost)

80,000 units - $2,160,000 (Total Cost)

Explanation:

Monthly Flexible Manufacturing Budgets

Units Produced                       40,000         60,000        80,000

Direct Material (7/unit)           280,000       420,000      560,000

Direct Labor (8/unit)               320,000       480,000      640,000

Variable Overhead (9/unit)    360,000       540,000      720,000

Total Variable Cost                960,000     1,440,000     1,920,000

Fixed Overhead (3/unit)          120,000        180,000       240,000

Total Cost                              $1,080,000   $1,620,000  $2,160,000

g Based on the Keynesian model, one reason to support government spending increases over tax cuts as a tool for stimulating the economy is: Group of answer choices the government-spending multiplier is smaller than the tax multiplier. the government-spending multiplier is larger than the tax multiplier. tax cuts do not cause the budget deficit to increase. increases in government spending do not cause the budget deficit to increase.

Answers

Answer:

The answer is: The multiplier of public spending is greater than the tax multiplier.

Explanation:

Unemployment is caused by insufficient global demand. Therefore, to combat unemployment, aggregate demand (Da) will have to be increased, and for this, according to Keynes' formula, the following components must be acted on:

-Increase demand for consumer goods (C)

To stimulate consumption, taxes will have to be reduced, thus causing an increase in the disposable income of families.

 

-Increase the demand for investment goods (I)

This increase will be achieved by reducing the cost of money; in other words, lowering interest rates, thus encouraging companies to invest.

-Increase public sector demand (G)

It comes from the increase in public spending by the State (more roads, more hospitals).

-Increase the demand of international markets (X-M)

To promote exports, the exchange rate will have to be reduced. Increasing exports boosts domestic production.

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): Sales revenue $ 24,000 Cost of goods sold $ 13,500 Interest revenue 220 Selling and administrative expense 3,100 Interest expense 420 Restructuring costs 1,400 In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.2 million and a gain on disposal of the component’s assets of $3.2 million. 600,000 shares of common stock were outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25% on all items of income (loss). Required: Prepare a multiple-step income statement for 2021, including EPS disclosures. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands except earnings per share. Round EPS answers to 2 decimal places.)

Answers

Answer:

          Rembrandt Paint CompanyIncome Statement - December 31, 2021

Sales revenues                                                        $24,000,000

- Cost of goods sold                                               ($13,500,000)

Gross margin                                                           $10,500,000

Operating expenses:

- Selling and adm. expenses             ($420,000)

- Restructuring costs                        ($1,400,000)

Total operating expenses                                        ($1,820,000)

Income from operations                                          $8,620,000

Other revenue and expenses:

Gain on sales of assets                   $3,200,000  

Interest revenue                                 $220,000

Loss from discontinued oper.       ($2,200,000)

Interest expense                               ($420,000)

Total other revenue and expenses                             $800,000

Net income pre-tax                                                   $9,420,000

Income taxes (25%)                                                  ($2,355,000)

Net income after taxes                                             $7,065,000

Shares outstanding                                                        600,000

Earnings per share (EPS)                                                    $11.78

   

Swan Company produces its product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit. The markup percentage on product cost is a.47% b.70% c.110% d.80%

Answers

Answer:

46.50%.

Explanation:

Percentage Markup = ( Desired profit x 100 ) / Total cost.

($20 × 100 ) / $43 = 46.50%.

I hope my answer helps you

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