Answer and Explanation:
The preparation of flexible budget report is shown below:-
Xion CO.
Flexible budget report
Flexible budget Actual results Variances Favorable/
Unfavorable
Sales $864,000 $885,000 $21,000 Favorable
(10,800 × $80)
(-) Variable
cost $378,000 $351,000 $27,000 Favorable
(10,800 × $35)
Contribution $486,000 $534,000 $48,000 Favorable
(-) Fixed cost $270,000 $285,000 $15,000 Unfavorable
Net income $216,000 $249,000 $33,000 Favorable
Pharoah Company has had 4 years of record earnings. Due to this success, the market price of its 500,000 shares of $4 par value common stock has increased from $15 per share to $55. During this period, paid-in capital remained the same at $6,000,000. Retained earnings increased from $4,500,000 to $30,000,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders’ equity, and (c) par value per share.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) 15% Stock Dividend-
Retained Earnings = Increase Value of Retained Earnings - (Total Shares × 15% Stock Dividend × Increase Value of Per Share)
= $30,000,000 - (500,000 × 15% × $55)
= $30,000,000 - $4,125,000
= $25,875,000
2) 2-for-1 stock split-
Retained earnings = $30,000,000
The 2-for-1 stock split will not impact retained earnings.
a and b) The before, after effects of each option are shown in the attachment below
c) Par value per share
Par value per share of stock dividend = $4
Par value per share of 2-for-1 stock split = $4 ÷ 2 = $2
According to the analysis, stock dividend will not make any impact.
company is considering establishing a new machine to automate a packing process. The machine will save $ 50,000 in labor annually. The machine can be purchased for $ 250,000 today and will be used for 10 years. It has a salvage value of $5,000 at the end of its useful life. The new machine will require an annual maintenance cost of $ 11,000. The company has a minimum rate of return of 10%. What is the Net present worth and should they buy the machine
Answer:
NPV = $-8,434.17
The firm shouldn't buy the machine
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 = $-250,000
Cash flow each year from year 1 to 9 = $50,000 - $11,000 = $39,000
Cash flow in year 10 = $39,000 + $5,000 = $44,000
I = 10%
NPV = $-8,434.17
The NPV 8s negative and this indicates that the investment would be unprofitable. The firm shouldn't invest in the project.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
On December 31, 2019, Irey Co. has $3,000,000 of short-term notes payable due on February 14, 2020. On February 8, 2020, Irey borrowed $1,200,000 (long-term loan) from County Bank and used $1,000,000 additional cash to liquidate $2,200,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is
Answer:
$1,800,000
Explanation:
Given short term notes payable = $3,000,000
Total amount used to liquidate short term notes = $2,200,000
Balance = $3,000,000 - $2,200,000 = $800,000
The additional $1,200,000 which is borrowed from Country Bank will not increase the short term notes payable because it's a long term credit
The additional $1,000,000 cash used will now be added to the balance amount
Amount to be reported as current liabilities = $1,000,000 + $800,000
= $1,800,000
Therefore the amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is $1,800,000
Breckenridge Ski and Snow Board Rental Co. charges 67 for a one day rental. At that price they average renting 159 sets of apparatus. Their yield management consultant recommended they lower their price to 56. At that price the consultant expects their average daily rental will be 205 sets of apparatus. At those prices and demand, what elasticity of demand can be expected? (Solve to two decimal places.)
Answer:
Price elasticity of demand = 1.76
Explanation:
Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.
Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic
PED is computed as follows:
PED = % change in quantity /% change in Price
% change in demand = (56- 67)/67 × 100 = 28.93081761
% change in price =16.41791045
PED = 28.93/16.4179 = 1.762
Price elasticity of demand = 1.76
Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)
Selected 2017 Income Statement Data Selected Year-End 2017 Balance Sheet Data
Net income $ 440,000 Accounts receivable increase $ 47,600
Depreciation expense 84,500 Prepaid expenses decrease 16,800
Gain on sale of machinery 25,100 Accounts payable increase 6,200
Wages payable decrease 2,900
Cash flows from operating activities
Adjustments to reconcile net income to operating cash flow
$
0
$0
Answer:
Salud's cash flows from operating activities is $471,900.
Explanation:
Salud Company
Cash flows from operating activities
Adjustments to reconcile net income to operating cash flow
Net income $440,000
Add: Depreciation expense 84,500
Less: Gain on sale of machinery (25,100)
Less: Accounts receivable increase (47,600)
Add: Prepaid expenses decrease 16,800
Add: Accounts payable increase 6,200
Less: Wages payable decrease (2,900)
Net cash flows from operating activities $471,900
Public policy toward monopolies Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
A. Do nothing at all.
B. Use antitrust laws to increase competition.
C. Turn the company into a public enterprise.
D. Regulate the firm's pricing behavior.
Answer:
C.
Explanation:
State Owned Enterprises are those enterprises that is legally taken by the government. This entity is formed by the government to take authority over the commercial activities. It is also known as SOE and Government Owned Corporations (GOC). These enterprises are formed to function on account of government. It helps in avoiding the unfair pricing policies by private companies in some markets.
In the given situation, the government should use the policy of turning the company into a public enterprise through SOE policy. With this, the government will be able to regulate the prices and avoid unfair pricing by the private companies.
So, the correct answer is option C.
In the market for lock washers, a perfectly competitive market, the current equilibrium price is $5 per box. Washer King, one of the many producers of washers, has a daily short-run total cost given by TC = 190 + 0.20Q + 0.0025Q2, where Q measures boxes of washers. Washer King's corresponding marginal cost is MC = 0.20 + 0.005Q. How many boxes of washers should Washer King produce per day to maximize profit?
Answer:
The number of boxes of washers Washer King should produce per day to maximize profit = 960 boxes.
And the corresponding maximum daily profit = $2,114
Explanation:
The daily, short-run total cost of producing Q boxes of the product is given as
TC = 190 + 0.20Q + 0.0025Q²
The unit price of the product = $5.
Total revenue = (Unit Price) × (Quantity sold) = 5Q
Profit = (Revenue) - (Total Cost)
Profit = 5Q - (190 + 0.20Q + 0.0025Q²)
Profit = P(Q) = -190 + 4.8Q - 0.0025Q²
To maximize the profits, we just obtain the point where the profit function reaches a Maximum.
At the maximum of a function, (dP/dQ) = 0 and (d²P/dQ²) < 0
Profit = P(Q) = -190 + 4.8Q - 0.0025Q²
(dP/dQ) = 4.8 - 0.005Q
At maximum point,
(dP/dQ) = 4.8 - 0.005Q = 0
Q = (4.8/0.005) = 960 boxes
(d²P/dQ²) = -0.005 < 0 (hence, showing that the this point corresponds to a maximum point truly)
Hence, the number of boxes of washers Washer King should produce per day to maximize profit = 960 boxes.
The corresponding maximum profit is then obtained from
P(960) = -190 + (4.8×960) - 0.0025(960²)
Maximum daily profit = $2,114
Hope this Helps!!!
"Vaughn Corporation is considering the issue of commercial paper and would like to know the yield it should offer on its commercial paper. The corporation believes that a 0.2 percent credit risk premium, a 0.1 percent liquidity premium, and a 0.3 percent tax adjustment are necessary to sell its commercial paper to investors. Furthermore, annualized T-bill rates are 7 percent. Based on this information, Vaughn should offer ____ percent on its commercial paper."
Answer:
7.6 percent
Explanation:
Vaughn should offer 7.6 percent on its commercial paper.
This is calculated by adding the 0.2 credit risk premium to 0.1 percent liquidity premium + 0.3 percent tax adjustment + 7 percent annualized t bills rate.
= 0.1 + 0.2 + 0.3 + 7
= 7.6
Based on this Vaughn would offer 7.6 percent on its commercial paper.
Capacity management, denominator-level capacity concepts. Match each of the following numbered descriptions with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item:a) Theoretical capacity b) Practical capacity c) Normal capacity utilization d) Master-budget capacity utilization 1. Measures the denominator level in terms of what a plant can supply. 2. Is based on producing at full efficiency all the time.3. Represents the expected level of capacity utilization for the next budget period. 4. Measures the denominator level in terms of demand for the output of the plant. 5. Takes into account seasonal, cyclical, and trend factors. 6. Should be used for performance evaluation in the current year. 7. Represents an ideal benchmark. 8. Highlights the cost of capacity acquired but not used. 9. Should be used for long-term pricing purposes. 10. Hides the cost of capacity acquired but not used. 11. If used as the denominator-level concept, would avoid the restatement of unit costs when expected demand levels change?
Answer:
1. Theoretical and Practical capacity: Measures the denominator level in terms of what a plant can supply
2. Theoretical capacity: Is based on producing at full efficiency all the time.
3. Master-budget capacity utilization: Represents the expected level of capacity utilization for the next budget period.
4. Normal and Master-budget capacity: Measures the denominator level in terms of demand for the output of the plant.
5. Normal capacity utilization: Takes into account seasonal, cyclical, and trend factors.
6. Master-budget capacity utilization: Should be used for performance evaluation in the current year.
7. Theoretical capacity: Represents an ideal benchmark.
8. Theoretical and Practical capacity: Highlights the cost of capacity acquired but not used.
9. Master-budget capacity utilization: Should be used for long-term pricing purposes.
10. Normal and Master-budget capacity: Hides the cost of capacity acquired but not used.
11. Theoretical and Practical capacity: If used as the denominator-level concept, would avoid the restatement of unit costs when expected demand levels change.
Explanation:
Capacity is the maximum level of output that an organization can optimally sustain, to produce goods or provide service to meet it's customer demands.
The denominator-level capacity is a concept used under the capacity management. Denominator-level capacity concept is used to ascertain the capacity level that is considered for analyzing a production process or business operations. They are classified as follows;
i. Normal capacity utilization is based on the level of capacity utilization which satisfy the average customer demand periodically such as trend, cyclical and seasonal factors.
ii. Master-budget capacity utilization is based on the level of capacity expected for the current budget period, typically a year.
iii. Theoretical capacity is the denominator-level concept based on producing continuously at full efficiency.
iv. Practical Capacity is based on the level of capacity that involves unavoidable operating interruptions, such as scheduled equipment maintenance or repair time, holiday shutdowns etc.
Question 2--/20 View Policies Current Attempt in Progress Stellar Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,610 $1,910 Accumulated benefit obligation 1,910 2,590 Projected benefit obligation 2,400 3,120 Plan assets (fair value) 1,680 2,430 Settlement rate and expected rate of return 10 % Pension asset/liability 720 ? Service cost for the year 2020 400 Contributions (funding in 2020) 660 Benefits paid in 202- 180 (a) Compute the actual return on the plan assets in 2020.
Answer:
$270
Explanation:
The computation of the actual return on plant asset is shown below:
Fair value of the Plan assets at Ending of the year $2,430
Less: Fair value of the Plan assets at beginning of the year $1,680
Change in Plan Assets $750
Less Contribution made -$660
Add: Benefits Paid $180
Actual Return $270
We simply applied the above equation to determine the actual return on the plant assets
Okun's law states that
a. a change in the output gap occurs with a change in the rate of unemployment that is smaller in magnitude and in the opposite direction.
b. a change in the output gap occurs with a change in the rate of unemployment that is larger in magnitude and in the opposite direction.
c. inflation causes a decrease in the value of money held by the public.
d. the government may temporarily suspend citizens' rights during periods of hyperinflation in an attempt to maintain security and stability.
Answer:
C, I think is the answer.
Explanation:
January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 41,000 of its common shares at $9 each. The market price of common stock was $24 per share on December 31, 2021, and averaged $12 per share during the year then ended. There was no change in the 164,000 shares of outstanding common stock during the year. Net income for the year was $39,000. The number of shares to be used in computing diluted earnings per share for the quarter is:
Answer:
174,250 shares
Explanation:
The computation of the number of shares to be used in computing diluted earnings per share is shown below:
Proceeds from exercise of options (a) $369,000 (41,000 shares × $9)
Used to repurchased for common stock (b) 30,750 shares (41,000 shares × $9 ÷ $12)
Number of shares for exercised (c) 41,000 shares
Less: repurchased shares (d) -30,750 shares
Diluted common shares {e = c - d} 10,250 shares
Add: Common shares (f) 164,000 shares
Total number of shares for diluted earning per share 174,250 shares
We ignored the market price of common stock as it is not relevant.
The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $457 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.
Answer:
this special order will result in a $2,637 profit, so the company should accept it
Explanation:
special order for 26 gold bracelets
discounted price of $367 per unit
normal production costs:
direct materials $143direct labor $90manufacturing overhead $31total $264costs related to the special order
increase in direct materials = $7 per unit, total of $150 per unit
direct labor $90 per unit
variable overhead = $8 per unit
machine used for this project only $457
revenue generated by special order:
total revenue $9,542
- variable costs ($6,448)
direct materials $3,900direct labor $2,340variable overhead $208- special machine ($457)
profit from special order $2,637
gravitational field
Answer:
The region of space surrounding a body in which another body experiences a force of gravitational attraction.
Please mark as brainlist.
Guarder Consulting enters into a contract with Smith Co. to restructure some of Smith's processes with a goal of cost savings. The contract states that Guarder will earn a fixed fee of $35,000 and earn an additional $10,000 bonus if Smith achieves $100,000 of cost savings. Guarder estimates a 55% chance that Smith will achieve $100,000 of cost savings. Assuming that Guarder determines the transaction price as the expected value of consideration, what transaction price will Guarder estimate for this contract
Answer:
The transaction price that Guarder will estimate for this contract is $40,500
Explanation:
In order to calculate what transaction price will Guarder estimate for this contract Assuming that Guarder determines the transaction price as the expected value of consideration, we would have to calculate the expected value of expected consideration as follows:
expected value of expected consideration=Fixed Fee + Additional Income
expected value of expected consideration=$35,000+($10,000*55%)
expected value of expected consideration=$35,000+$5,500
expected value of expected consideration=$40,500
The transaction price that Guarder will estimate for this contract is $40,500
Which one of the following is NOT part of the estimated net investment (NINV) for a capital budgeting project? The estimated salvage value of the new assets at the end of their 10-year expected economic life. The immediate increase in net working capital required by the project. The after-tax salvage value of assets to be replaced by the project. The cost of new assets required by the project
Answer:
The correct answer to the following question will be Option A.
Explanation:
Net investment or expenditure seems to be the total money that a business invests on financial assets, less the deferred revenue of those resources. This statistic gives people a sense of real spending on capital products such as plants, machinery, including technology used throughout the activities of the business.The effective improvement including its program's net income, after-tax recovery value of the properties to have been substituted by the task.So that the above option A is not related to the given scenario.
On December 12, 2021, an investment in equity securities costing $77,000 was sold for $94,000. The total of the sale proceeds was credited to the investment in equity securities account. Required: 1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2021. (Ignore income taxes.) 2. Prepare the journal entry to correct the error assuming it is not discovered until early 2022. (Ignore income taxes.)
Answer:
1.
Dr. Investment Account $17,000
Cr. Gain on Sale $17,000
2.
Dr. retained Earning $17,000
Cr. Gain on Sale $17,000
Explanation:
1.
If an assets is sold more than the book value, then there is a gain on the sales of asset.
Gain on Sale = Sales Proceeds - Book value of Investment = $94,000 - $77,000 = $17,000
As sales proceeds of $94,000 are credited in the Investment account, which needs to be credited by $77,000 only. The excessive amount of $17,000 should be recorded in the Gain on sale account.
2.
Error is not discovered until 2022 and earning for 2021 was transferred to retained earning. So, adjustment should me made in the retained earnings to eliminate the effect.
Nicholas Health Systems recently reported an EBITDA of $25.0 million and net income of $15.8 million. It had $2.0 million of interest expense, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its charge for depreciation and amortization
Answer:
Depreciation and Amortization= $3,000,000
Explanation:
Giving the following information:
Nicholas Health Systems recently reported an EBITDA of $25.0 million and a net income of $15.8 million. It had $2.0 million of interest expense, and its federal tax rate was 21%
We need to reverse engineer the net income calculation to determine the depreciation and amortization:
EBT= net income/(1-t)
EBT= 15,800,000/(1 - 0.21)
EBT= 20,000,000
EBIT= EBT + Interest
EBIT= 20,000,000 + 2,000,000
EBIT= 22,000,000
Now, we can determine D and A:
D and A= EBITDA - EBIT
DA= 25,000,000 - 22,000,000
DA= 3,000,000
The three service departments (indirect costs) are payroll, sales supervision and maintenance. The actual costs of these service departments are as follows:
Payroll Sales Supervision Maintenance
Salaries and wages $41,000 $80,000 $52,000
Office supplies $3,500 $1,600 $400
Supplies 0 $2,400 $7,500
The two operating departments and their statistics are as follows:
Square Footage Number of Employees Net Assets
Machining 14,500 78 $ 420,000
Assembly 46,000 42 280,000
If you allocate payroll department costs by number of employees then how much payroll cost is allocated to the Machining Department?
Answer:
$26,700
Explanation:
The solution of allocation of cost to machining department is provided below:-
First we need to find out the total payroll cost and total number of employees to reach the allocation of cost to machining department which is here below:-
Total Payroll costs = Payroll of salaries and wages + Payroll of office supplies
= $41,000 + $3,500
= $44,500
Total Number of employees = Machining number of employees + Assembly number of employees
= 78 + 52
= 130
Allocation of cost to Machining Department = Total Payroll costs ÷ Total Number of employees × Machining number of employees
= 44,500 ÷ 130 × 78
= $26,700
To reach allocation of cost to machining department we simply put the values into formula.
Sheffield Corp. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 7000 Shipping 1.20 Advertising 0.30 Executive salaries 34000 Depreciation on office equipment 8000 Other 0.35 28000 Expenses are paid in the month incurred. If the company has budgeted to sell 7000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?
Answer:
How much is the total budgeted variable selling and administrative expenses for October?
$17,150Explanation:
Variable Cost Fixed Cost Total costs
Per Unit for 7,000 units
Sales commissions $0.60 $7,000 $11,200
Shipping $1.20 $8,400
Advertising $0.30 $2,100
Executive salaries $34,000 $34,000
Depreciation $8,000 $8,000
Other $0.35 $28,000 $30,450
TOTAL $2.45 $77,000 $94,150
How much is the total budgeted variable selling and administrative expenses for October?
total variable costs per unit = $2.45 x 7,000 units = $17,150
Freya, a Certified Fraud Examiner (CFE) for Cole Inc., has conducted an examination into allegations of misconduct against Pilar, the company's controller. Freya plans to meet with Pilar to ask her about the allegations and to obtain a confession of wrongdoing. Freya's meeting with Pilar is referred to as a(n):
Answer:
Admission-seeking Interview
Explanation:
An admission-seeking interview is an interaction between a certified fraud examiner and a suspect whose culpability is certain to a reasonable degree, with the intention of obtaining a confession for the crime committed. Innocent people would most likely not confess to the crime whereas guilty suspects would admit to the crime. This interview is not conducted in an interrogative manner, rather the interviewer uses several approaches to convince the confessor that it would be beneficial to him if he confesses to the crime.
When the suspect confesses to the crime, it would be best for the interviewer to obtain some written evidence admitting to the confession because it would be a more reliable basis for obtaining justice in cases where legal action are to be taken.
The relationship between recycling, economics, and energy consumption is demonstrated in the case of aluminum, where ________. it costs more than 10 times as much to produce items from recycled aluminum than from virgin ore the U.S. failure to recycle aluminum has caused energy to be lost in mining new ore it requires over 20 times more energy to mine and extract aluminum from bauxite ore than from recycled materials all of the metal recycling industries in the United States went bankrupt by 2009 new cheap mining technologies and huge newly discovered aluminum deposits have made recycling unprofitable
Answer:
It requires over 20 times more energy to mine and extract aluminum from bauxite ore than from recycled materials.
Explanation:
The relationship between recycling, economics, and energy consumption is demonstrated in the case of aluminum, where it requires over 20 times more energy to mine and extract aluminum from bauxite ore than from recycled materials.
Also, the relationship between recycling, economics, and energy consumption is demonstrated in the case of aluminum, where energy expended to mine and produce items from virgin ore is saved by recycling for about 95%.
Recycling is one of the most effective ways of prolonging our supply of mineral resources.
The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense - factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of conversion costs.
Answer:
Conversion costs= $488,000
Explanation:
Giving the following information:
depreciation expense - factory building, $133,000
direct labor, $250,000
factory utilities, $105,000
The conversion costs are the sum of direct labor and manufacturing overhead.
Manufacturing overhead= 133,000 + 105,000= 238,000
Direct labor= 250,000
Conversion costs= $488,000
A company used straight-line depreciation for an item of equipment that cost $15,350, had a salvage value of $3,200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,535 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life: Multiple Choice $2,880. $5,672. $1,215. $2,580. $3,200.
Answer:
The correct answer is $2,580.
Explanation:
Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($15,350 - $3,200) / 6 years = $2,025 yearly depreciation expense.
Accumulated depreciation at Year 3 = $2,025 x 3 = $6,075
Net book value (NBV) becomes $15,350 - $6,075 = $9,275
New depreciation is ($9,275 - $1,535) / 3 years = $2,580 yearly depreciation expenses
Happy Hands Is A Monopolistically Competitive Firm That Faces The Following Demand Schedule For Its Gloves. In the long run, what is the likely outcome for Happy Hands?
A. Happy Hands will no have any excess capacity.
B. Happy Hands will not charge a price that is exactly equal to the marginal cost.
C. Happy Hands firm will not have any markup to its price.
D. Happy Hands will face lower demand and reach a long run equilibrium at a lower price.
Answer:B
Explanation:
Happy Hands will not charge a price that is exactly equal to the marginal cost, which is the likely outcome for Happy Hands. Therefore option B is correct.
What is Monoplantic?Possessing or attempting to have total control over anything, especially over a business area, without allowing others to participate: She didn't think the fine was enough to stop monopolistic behavior by large producers. The business is charged with monopolistic behavior. Look up the monopoly.
Monopolistic competition has the following characteristics:
The existence of numerous businesses
Each business creates things that are comparable but different.
Companies do not accept prices.
Free admission and exit from the sector Businesses compete on the basis of the goods' quality, cost, and marketing strategy
To know more about Monoplantic follow the link.
https://brainly.com/question/28484819
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Assume that the electricity from nuclear power has become a preferred source of electricity because it is cleaner than electricity produced by burning coal. At the same time, new regulations make it more expensive to produce electricity from nuclear power. What are the consequences?
Answer:
The answer to this question can be described as follows:
Explanation:
In the given statement some information is missing that is choices so, the correct choice can be described as follows:
The most important source of electricity is nuclear energy. It will boost demand for the nuclear energy century of electric power. The demand curve also is moving to the right. At the very same time, it increases in power generation rates would also increase the cost of energy generation via nuclear power plant. This will lead to a shift to the left. The nuclear demand curve will change to just the right and the nuclear power source will switch to the left. It will lead to an increase in the balance cost value with an uncertain shift in the balance quantities.Vaughn Manufacturing purchased the assets of Ivanhoe Company at an auction for $5465000. An independent appraisal of the fair value of the assets is listed below: Land $1795000 Building 2840000 Equipment 2180000 Trucks 3180000 Assuming that specific identification costs are impracticable and that Vaughn allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Building
Answer:
$1,552,836
Explanation:
As the auction price is determined for whole company, which includes all the assets in the company. Auction price can be allocated to an asset based on its fair value ratio to total fair value of all assets.
As per given data
Fair Value of Assets
Land $1,795,000
Building $2,840,000
Equipment $2,180,000
Trucks $3,180,000
Total $9,995,000
Auction price allocation = (Fair value / Total Fair value of all assets) x Auction price
Placing values in the formula
Building = ( $2,840,000 / $9,995,000) x $5,465,000
Building = $1,552,836
On January 1, 2021, M Company granted 95,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2023, and expire on January 1, 2027. Each option can be exercised to acquire one share of $1 par common stock for $12. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. What amount should M recognize as compensation expense for 2021
Answer:
$158,333 approx
Explanation:
The computation of compensation expense is shown below:-
Compensation expense = (Number of options expected to be exercised × Fair value) ÷ Vesting period (From 1 Jan 2024 to 31 Dec 2026)
= (95,000 × $5) ÷ 3 years
= $475,000 ÷ 3 years
= $158,333 approx
Therefore for computing the compensation expenses we simply applied the above formula.
On January 2, 2018, Baltimore Company purchased 20,000 shares of the stock of Towson Company at $13 per share. Baltimore obtained significant influence as the purchase represents a 35% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $25,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $65,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $23 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)
Answer:
$344,000
Explanation:
The computation of value of investment is shown below:-
Initial Cost of investments $260,000
(20,000 shares × $13)
Add: Share of profit $22,750
($65,000 × 35%)
Add: Increase in equity
reserves $70,000
(($23 - $13) × 20,000 × 35%)
Less: Dividends received $8,750
($25,000 × 35%)
Value of investment $344,000
Therefore the value of investment is $344,000
Cost pools should be charged to responsibility centers by using: budgeted amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others. some other approach. budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others. actual amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others. actual amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others.
Answer: budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others
Explanation:
A cost pool is a collection of homogeneous costs thqt are to be assigned. Cost pools is an accounting term which refers to the groups of accounts serving used to express the cost of goods and service that are allocatable within a business or a manufacturing organization. The allocation base for a cost pool is a cost driver.
Cost pools should be charged to the responsibility centers by using the budgeted amounts of allocation bases. This is because the cost allocation to a responsibility center should not influence allocations to others.
