Answer:
14 yes 23xy so 14
Explanation:
Below is a partial current state VSM of a production process. In the Stenciling step a single machine, which is manned full-time by a single operator, is used to perform the operation. In the packaging step, the product is packaged into boxes by three employees working full-time. No machines are used in the packaging step. Employees work 7.5 hours a day. What is the minimum batch size that would enable the stenciling operation to meet daily demand:
Answer:
5000 units.
Explanation:
Kindly check the attachment for the diagram.
In order to solve this question that is the Determination of the minimum batch size that would enable the stenciling operation to meet daily demand, what we have to do is to divide the total number of time operation done per day by the Takt time.
The takt time = 7.5 hours a day × 3600/ 5000 daily demand rate.
The Takt time = 5.4 seconds.
Hence, the minimum batch size that would enable the stenciling operation to meet daily demand = 5000 from the given diagram
Margin of Safety a. If Canace Company, with a break-even point at $558,900 of sales, has actual sales of $690,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 30%, fixed costs were $1,201,200, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $
Answer:
a.
(1)
Margin of Safety = $131,100
(2)
Margin of Safety as % of Sales = 19%
b.
Actual Sales = $5,720,000
Explanation:
Margin of safety is the value of sales by which the business is safe from the loss. It means all the made in excess of breakeven point is the margin of safety.
a.
(1)
Margin of Safety = Actual Sales - Breakeven point = $690,000 - $558,900 = $131,100
(2)
Margin of Safety as % of Sales = (Margin of Safety / Actual Sales ) x 100 = 19%
b.
First of all calculate the Contribution margin ratio
Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%
Breakeven Sales = Fixed cost / Contribution margin ratio = $1,201,200 / 30% = $4,004,000
As the margin of safety is 30% of actual sales, so the breakeven sales i 70% ( 100% - 30% ) of Actual Sales
Actual Sales = Breakeven Sales / Breakeven sales to acual sales ratio
Actual Sales = $4,004,000 / 70%
Actual Sales = $5,720,000
Prepare the journal entries to record the following transactions on Sheridan Company’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(a) On March 2, Crane Company sold $890,100 of merchandise to Sheridan Company, terms 2/10, n/30. The cost of the merchandise sold was $528,500.
(b) On March 6, Sheridan Company returned $100,500 of the merchandise purchased on March 2. The cost of the merchandise returned was $68,700.
(c) On March 12, Crane Company received the balance due from Sheridan Company.
No Date Accounts titles and explanation Debit Credit
a) March 2
a) March 2
b) March 6
b) March 6
c) March 12
c) March 12
*Please also provide info on how the calculations were found.
Answer:
Sheridan Company
Journal Entries:
March 2:
a) Debit Inventory $890,100
Credit Accounts Payable (Crane Company)
To record the purchase of merchandise, terms 2/10, n/30.
March 6:
b) Debit Accounts Payable (Crane Company) $100,500
Credit Inventory $100,500
To record the record of merchandise.
March 12:
c) Debit Accounts Payable (Crane Company) $789,600
Credit Cash Discount $15,792
Credit Cash Account $773,808
To record the payment to Crane on account.
Explanation:
The amount ($773,808) that Sheridan Company paid to Crane Company is $890,100 minus the inventory return of $100,500 ($789,600) and the cash discount of $15,792 ($789,600 * 2%).
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment.
Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September 2019.
By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019.
Provide the journal entries necessary to account for the above transactions and events.
Answer and Explanation:
The journal entries are shown below:
1. Bank Dr $36,000,000 (36 million × $1)
To Share application $36,000,000
(Being the application received)
2. Share application $36,000,000
To Share capital $30,000,000
To bank $6,000,000
(Being the allotment is recorded)
3. Share allotment $30,000,000
To SHare capital $30,000,000
4. Bank Dr $25,000,000
To Share allotment $25,000,000
(being allotment is recorded)
5. Share capital $10,000,000
To SHare forfeited $5,000,000
To Share allotment $5,000,000
(Being share forfetied is recorded)
6. Bank Dr $9,500,000
Share forfeited Dr $500,000
To Share capital $10,000,000
(Being share forfeited is recorded)
7. Share forfeited Dr $4,500,000
To Bank $4,500,000
(Beng share forfeited is recorded)
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 145 Units in beginning inventory 0 Units produced 2,440 Units sold 2,280 Units in ending inventory 160 Variable costs per unit: Direct materials $ 49 Direct labor $ 17 Variable manufacturing overhead $ 17 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 85,400 Fixed selling and administrative expense $ 22,800 The total gross margin for the month under absorption costing is:
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary fixed manufacturing overhead:
Unitary fixed overhead= 85,400/2,440= $35
Absorption costing income statement:
Sales= 2,280*145= 330,600
COGS= 2,280* (49 + 17 + 17 + 35)= (269,040)
Gross profit= 61,560
Total selling and administrative= 22,800 + (2,280*10)= (45,600)
Net income= 15,960
Sanchez Company engaged in the following transactions during Year 1: Started the business by issuing $42,000 of common stock for cash. The company paid cash to purchase $26,400 of inventory. The company sold inventory that cost $16,000 for $30,600 cash. Operating expenses incurred and paid during the year, $14,000. Sanchez Company engaged in the following transactions during Year 2: The company paid cash to purchase $35,200 of inventory. The company sold inventory that cost $32,800 for $57,000 cash. Operating expenses incurred and paid during the year, $18,000. Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for the Year 2?
Answer:
The gross margin is $24,200
Explanation:
The computation of the gross margin is shown below:
As we know that
Gross margin is
= Sales - cost of goods sold
= $57,000 - $32,800
= $24,200
We simply deduct the cost of goods sold from the sales so that the gross margin could come
hence, the gross margin is $24,200
We simply applied the above formula
g 447,000 397,000 397,000 317,000 79,250 $2,333,000 $1,510,000 $1,361,500 $1,395,500 $715,750 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2022. Compute the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2021, which would be reported under:
Answer:
$225,000 income
Explanation:
The company is using percentage of completion technique for the valuation of construction contracts. It expects the revenue of $1,725,000 for a three year contract whose services are to be delivered every year. The company should record its revenue every year whose services are delivered at the end of the year. The company will only record its revenue as unearned revenue at the start of the year.
Cezanne Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's contribution margin ratio is 50%, and its current breakeven point is $600,000 in sales revenue. If the company's fixed expenses increase by $30,000 due to the equipment, what will its new breakeven point be (in sales revenue)? If Cezanne Industries' fixed expenses increase by $30,000 due to the equipment, what will its new breakeven point be (in sales revenue)? Begin by identifying the general formula to compute the breakeven sales in dollars. ( Fixed expenses + Operating income ) ÷ Contribution margin ratio = Breakeven sales in dollars Cezanne will now have to generate of sales revenue to break even.
Answer:
Break-even point (dollars)= $660,000
Explanation:
Giving the following information:
The company's contribution margin ratio is 50%
The break-even point is $600,000 in sales revenue.
Fixed expenses increase by $30,000.
To calculate the new break-even point in sales, we need to determine the break-even point for the increase in fixed costs:
Proportional break-even point (dollars)= increase in fixed costs/ contribution margin ratio
Proportional break-even point (dollars)= 30,000/0.5
Proportional break-even point (dollars)= $60,000
New break-even point:
Break-even point (dollars)= 600,000 + 60,000
Break-even point (dollars)= $660,000
The following payroll liability accounts are included in the ledger of Crane Company on January 1, 2020.FICA Taxes Payable $700Federal Income Taxes Payable 1,180.00State Income Taxes Payable 100.00Federal Unemployment Taxes Payable 275.00State Unemployment Taxes Payable 1,930.00Union Dues Payable 800U.S. Savings Bonds Payable 300In January, the following transactions occurred.Jan.10 Sent check for $800 to union treasurer for union dues. 12 Remitted check for $1,880.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchase U.S. Savings Bonds for employees by writing check for $300. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. 31 Completed monthly payroll register, which shows salaries and wages $54,000, FICA taxes withheld $4,131, federal income taxes payable $1,800, state income taxes payable $350, union dues payable $350, United Fund contributions payable $1,750, and net pay $45,619. 31 Prepared payroll checks for the net pay and distributed checks to employees.At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.2. Vacation pay: 6% of gross earnings.1) Journalize the January transactions.Date Account Titles and Explanation Debit Credit Jan. 10 Union Dues Payable 800.00 Cash 800.00Jan. 12 FICA Taxes Payable 700.00 Federal Income Taxes Payable 1,180.00 Cash 1,880.00 Jan. 15 U.S. Savings Bonds Payable 300.00 Cash 300.00Jan. 17 State Income Taxes Payable 100.00 Cash 100.00 Jan. 20 Federal Unemployment Taxes Payable 275.00 State Unemployment Taxes Payable 1,930.00 Cash 2,205.00 Jan. 31 Salaries and Wages Expense 54,000.00 FICA Taxes Payable 14,131.00 Federal Income Taxes Payable 1,800.00 State Income Taxes Payable 350.00 11 Union Dues Payable 350.00 United Fund Contributions Payable 1,750.00 Salaries and Wages Payable 45,619.00 Jan. 31 Salaries and Wages Payable 45,619.00 Cash 45,619.00B) Journalize the adjustments pertaining to employee compensation at January 31.
Answer:
he following payroll liability accounts are included in the ledger of Crane Company on January 1, 2020.FICA Taxes Payable $700Federal Income Taxes Payable 1,180.00State Income Taxes Payable 100.00Federal Unemployment Taxes Payable 275.00State Unemployment Taxes Payable 1,930.00Union Dues Payable 800U.S. Savings Bonds Payable 300In January, the following transactions occurred.Jan.10 Sent check for $800 to union treasurer for union dues. 12 Remitted check for $1,880.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchase U.S. Savings Bonds for employees by writing check for $300. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. 31 Completed monthly payroll register, which shows salaries and wages $54,000, FICA taxes withheld $4,131, federal income taxes payable $1,800, state income taxes payable $350, union dues payable $350, United Fund contributions payable $1,750, and net pay $45,619. 31 Prepared payroll checks for the net pay and distributed checks to employees.At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.2. Vacation pay: 6% of gross earnings.1) Journalize the January transactions.Date Account Titles and Explanation Debit Credit Jan. 10 Union Dues Payable 800.00 Cash 800.00Jan. 12 FICA Taxes Payable 700.00 Federal Income Taxes Payable 1,180.00 Cash 1,880.00 Jan. 15 U.S. Savings Bonds Payable 300.00 Cash 300.00Jan. 17 State Income Taxes Payable 100.00 Cash 100.00 Jan. 20 Federal Unemployment Taxes Payable 275.00 State Unemployment Taxes Payable 1,930.00 Cash 2,205.00 Jan. 31 Salaries and Wages Expense 54,000.00 FICA Taxes Payable 14,131.00 Federal Income Taxes Payable 1,800.00 State Income Taxes Payable 350.00 11 Union Dues Payable 350.00 United Fund Contributions Payable 1,750.00 Salaries and Wages Payable 45,619.00 Jan. 31 Salaries and Wages Payable 45,619.00 Cash 45,619.00B) Journalize the adjustments pertaining to employee compensation at January 31.
Explanation:
Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 94,000 Total fixed manufacturing overhead cost $ 404,200 Variable manufacturing overhead per direct labor-hour $ 4.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials $ 660 Direct labor cost $ 9,400 The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Total cost= $10,890
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (404,200/94,000) + 4
Predetermined manufacturing overhead rate= $8.3 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8.3*100= $830
Finally, the total cost of Job P951:
Total cost= 660 + 9,400 + 830
Total cost= $10,890
One of the most important applications of ratio analysis is to compare a company’s performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as a comparative analysis and trend analysis, respectively. A common size analysis requires the representation of financial statement data relative to a single financial statement item (or base account or value). What is the most commonly used base item for a common size balance sheet? Net income Earnings before interest and taxes Total assets Net sales
Answer:
The most commonly used base item for a common size balance sheet is:
Total assets.
Explanation:
The use of the total assets as an analytical base is because they are always equal to the two sides of the balance sheet in accordance with the accounting equation. This equation states that the Assets = Liabilities and Shareholders' Equity. A company can gain proper and good understanding of its performance by performing some financial analyses. Examples include comparative analysis (external-focused), trend analysis (internal-focused), and common size analysis (financial statement-focused).
As an amputee herself, Morgan works in a lab experimenting with new technology that can allow a prosthetic to be attached to living cells. The Health Science career pathway Morgan works in is _____.
Support Services
Biotechnology Research and Development
Health Informatics
Diagnostic Services
Answer:
Biotech R&D
Explanation:
My mom does that
To increase tax revenue, the U.S. government imposed a 2-cent tax on checks written on bank account deposits in 1932 (in today's dollars, about 34 cents per check). Complete the following statements on the impact of this tax on the money multiplier and the money supply. a. The tax on checks written would make people less likely to write checks. Thus, people might start holding more money as demand deposits . This would increase the currency-deposit ratio. b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier. increased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn increases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. not changed, because the check tax would not impact the money supply or the money multiplier. c. Some economists argue the sharp decline in the money supply is at least partially at fault for the severity of the Great Depression. The check tax was intended to increase government revenue. However, the unintended consequence was to decrease deposits in banks, which reduced the money supply further. From this perspective, the check tax policy was a bad idea .
Answer:
b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier.
Explanation:
Paris Company had common stock of $350,000 and retained earnings of $490,000. London Inc. had common stock of $700,000 and retained earnings of $980,000. On January 1, 2018, London issued 34,000 shares of common stock with a $12 par value and a $35 fair value for all of Paris Company's outstanding common stock. This combination was accounted for using the acquisition method. Immediately after the combination, what was the amount of total consolidated net assets? A. $2,520,000. B. $1,190,000. C. $1,680,000. D. $2,870,000.
Answer: D. $2870000
Explanation:
Consolidated Assets are the assets that a company owes whether directly or indirectly through a subsidiary which will then be shown on the consolidated balance sheet of the company.
From the information given, the amount of total consolidated net assets will be calculated as:
= ($34000 × 35) + $700,000 + $980,000
= $1,190,000 + $700,000 + $980,000
= $2,870,000
Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation. Broadly speaking, all businesspeople use personal selling to promote themselves and their ideas. Personal selling offers several advantages over other forms of promotion. Personal selling allows salespeople to thoroughly explain and demonstrate a product. Salespeople have the flexibility to tailor a sales proposal to the needs and preferences of individual customers. Personal selling is more efficient than other forms of promotion because salespeople target qualified prospects and avoid wasting efforts on unlikely buyers. Personal selling affords greater managerial control over promotion costs. Finally, personal selling is the most effective method of closing a sale and producing satisfied customers.
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
Explanation:
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
Personal selling is a traditional sales method that consists of a more personalized service and a more efficient product promotion compared to other forms of promotion. This is due to the fact that, in a personal sale, there is the direct influence of the seller to explain the functionalities and characteristics of a product, which is usually done using sales and negotiation techniques that directly influence the buyer to feel the need for the product that is being promoted. The advantages of personal selling as opposed to other types of promotion, is the possibility of reducing the time and effort of purchase, since in this type of sale, the seller goes to the customer to offer the product.
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
The biggest advantages of personal selling for the company that sells a product is the greater possibility of having a closed purchase, since the potential sales are made with your potential customers. There is also a decrease with other types of product promotion, which can be costly, such as advertising an advertisement on television, and which may not generate the expected goal of increasing product sales.
The advantages for the person or company that buys the product is the possibility of knowing and seeing the functionality of the product before purchasing and the possibility of negotiating and providing meaningful feedback, which can influence the seller to make the sales proposal more flexible by making it more attractive to the customer. Personal selling also creates value for the customer, as the service is personalized, based on their profile, characteristics, desires and needs.
Which type of innovation has a focus on being eco-friendly?
A. Disruptive
B.Sustaining
C.Frugal
D.Sustainable
Answer:
the answer is B
Explanation:
thank me later bb
Answer:
Explanation:
the answer is D
Which of the following statements about the segment margin is not true? In preparing a segmented income statement, the variable expenses are deducted from sales to yield the contribution margin for each segment. The segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin. The segment margin represents the margin available after a segment has covered all of its own costs. The segment margin is the best gauge of the long-run profitability of a segment because it includes only those costs that are caused by the segment.
Answer: The segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin
Explanation:
Segment margin is referred to the net profit or the net loss that a particular segment of a business makes. Segment margin is used to know segments that are performing well.
It is also used to know the long-run profitability of a particular segment as it shows the margin that is available after the cost has been covered by a segment.
Based on the above illustration, the statement that isn't true will be "the segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin".
This is false as segment margin is gotten after the traceable fixed costs of a segment has been subtracted from the contribution margin of that particular segment.
Segment margin is cited as the web profit or the web loss that a selected segment of a business makes.
Segment MarginSegment margin is employed to understand segments that are performing well.
It is also accustomed to knowing the long-run profitability of a specific segment because it shows the margin that's available after the value has been covered by a segment.
Based on the above illustration, the statement that may not be true is going to be "the segment margin is obtained by deducting the common fixed costs that are allocated to a segment from that segment's contribution margin".
This is a falsehood as segment margin is gotten after the traceable fixed costs of a segment have been subtracted from the contribution margin of that individual segment.
Thus, the segment margin is obtained by deducting the common fixed costs that are allocated to a segment from that segment's contribution margin.
Find out more information about Segment margin here:
brainly.com/question/16106523
t the end of the year, the records of NCIS Corporation provided the following selected and incomplete data: Common stock ($10 par value); no changes in account during the year. Shares authorized: 290,000. Shares issued: _______ (all shares were issued at $14 per share; $2,170,000 total cash collected). Treasury stock: 5,000 shares (repurchased at $18 per share). The treasury stock was acquired after a stock split was announced. Net income: $297,000. Dividends declared and paid: $165,000. Retained earnings beginning balance: $645,000. Required: 1. Complete the following tabulation: 2. Calculate the balance in the Additional paid-in capital account. 3. What is earnings per share (EPS)
Answer:
1. Required tabulation is the Shares Authorized, the Shares Issued and the Shares Outstanding
Shares Authorized = 290,000 shares
Shares Issued
= Total Cash Collected / Price per share
= 2,170,000 / 14
= 155,000 shares
Shares Outstanding
= Shares Issued - Treasury stock
= 155,000 - 5,000
= 150,000 shares
2. Additional paid in capital account
= Gain (loss) above par
Par value is $10 and Stock was sold for $14
= (14 - 10 ) * 155,000
= $620,000
3. Earnings per share
= Net Income/ Shares outstanding
= 297,000/150,000
= $1.98
Apex project 1.3.1 evaluating the economy
answer
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,090 and sells the remote separately for $270, and offers the entire package for $2,580. VP does not sell the installation service separately. VP is aware that other similar vendors charge $320 for the installation service. VP also estimates that it incurs approximately $270 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% above cost on similar sales. Required: 1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches.
Answer:
1. Adjusted Market Assessment
= $320Here the selling price will be based on what the competitors are charging for the same or a similar service.
As VP competitors are charging $320 for the service, the stand-alone selling price of the installation service will be $320 under this approach.
2. Expected Cost plus Margin
Here the company will add a margin on the expenses and costs it incurs to provide the service.
VP incurs $270 of compensation and other costs for VP staff and typically charges a 50% margin above cost on similar sales.
Selling price = 270 * ( 1 + 50%)
= $4053. Residual
Under this approach, all other components of the package sale are subtracted from the package price and the amount remaining will be the price of the component in question.
= Package - 60-inch TV - remote
= 2,580 - 2,090 - 270
= $220Verano Inc. has two business divisions — a software product line and a waste water clean - up product line. The software business has a cost of equity capital of 12 % and the waste water clean - up business has a cost of equity capital of 6 %. Verano has 50% of its revenue from software and the rest from the waste water business. Verano is considering a purchase of another company in the waste water business using equity financing. What is the appropriate cost of capital to evaluate the business? 6% 9% 8% 12%
Answer:
9%
Explanation:
The weighted average cost of equity capital =
(50% x 12%) + (50% x 6%) = 9%
You are in charge of purchases at the student-run used-book supply program at your college, and you must decide how many introductory calculus, history, and marketing texts should be purchased from students for resale. Due to budget limitations, you cannot purchase more than 850 of these textbooks each semester. There are also shelf-space limitations: Calculus texts occupy 2 units of shelf space each, history books 1 unit each, and marketing texts 5 units each, and you can spare at most 1,500 units of shelf space for the texts. If the used book program makes a profit of $20 on each calculus text, $8 on each history text, and $16 on each marketing text, how many of each type of text should you purchase to maximize profit?
Answer:
you should purchase 750 calculus books that will yield $15,000 in profits.
Explanation:
you have to maximize the following equation 20C + 8H + 16M
where:
C = calculus book
H = history book
M = marketing book
the constraints are
C + H + M ≤ 850 (total number of books)
2C + H + 5M ≤ 1500 (maximum amount of shelf-space)
using Solver, the optimal solution is 750 calculus books
Gentle Ben's Bar and Restaurant uses 6,400 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $30 each time an order is placed, and holding costs are 35 percent of the purchase price. It takes two weeks for an order to arrive. Weekly demand is 128 bottles (closed two weeks per year) with a standard deviation of 45 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. a. What is the economic quantity for Ben to order
Answer: 523.72 units
Explanation:
Economic Order Quantity = √( 2 * Annual Demand * Order Cost/ holding cost)
holding cost = 35% * Purchase price
= 35% * 4
= $1.40
EOQ = √( 2 * 6,400 * 30/ 1.40)
= 523.72 units
Select the qualitative characteristics for the following statements. 1. Relevance2. Faithful representation3. Predictive value4. Confirmatory value5. Comparability6. Completeness7. Neutrality8. TimelinessA) Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena. B) Having information available to users before it loses its capacity to influence decisions. C) Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future. D) Information that is capable of making a difference in the decisions of users in their capacity as capital providers. E) Absence of bias intended to attain a predetermined result or to induce a particular behavior.
Answer:
1. Comparability
2. Timeliness
3. Predictive value
4. Relevance
5. Neutrality
Explanation:
lang warehouses borrowed $100,000 from a bank and signed a note requiring 20 annual paymentsof $13,388 beginning one year from date of agreement. determine the interest rate implicit in this agreement
Answer:
267.76%
Explanation:
In order to find the implied interest rate we first need to find the total amount that is paid after the 20 years. We calculate this by multiplying the annual payment amount by the 20 years like so...
$13,388 * 20 = $267,760
We see that the final amount that the borrower will pay to the bank is $267,760. Now we divide this amount by the initial borrowed amount to calculate the interest rate.
$267,760 / $100,000 = 2.6776 ... multiply by 100 to get percentage
2.6776 * 100 = 267.76 %
Finally, we see that the borrower will pay an interest of 267.76% on the loan.
Gina has $5,000 saved and wants to attend a college with a current tuition of $10,000 a year. She will graduate from high school in five years. Roughly how much more will Martha need to save for one-year's tuition to account for an annual rate of inflation of 3%
Answer
About 60000 for monthly inflation if this is wrong I am truly sorry i just had a bad day
Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large television to market that will sell for $360. Management believes it must lower the price to $360 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 150,000 televisions per year. What is the change in operating income if marketing is correct and only the sales price is changed? Group of answer choices $6,600,000 $3,000,000 $(6,600,000) ($2,400,000)
Answer:
Effect on income= (2,400,000)
Explanation:
Giving the following information:
Current selling price= $380
New selling price= $360
Unitary cost= $320
Units sold= 150,000*1.1= 165,000
We need to calculate the effect on income:
Effect on income= contribution margin new sales - contribution margin old sales
Effect on income= 15,000*(360 - 320) - 150,000*(380-360)
Effect on income= (2,400,000)
Prove:
New income= 165,000*40= 6,600,000
Actual income= 150,000*(380-320)= 9,000,000
Difference= (2,400,000)
a unique individual who has the courage to under take the risk associated with creating, organizing and owning business
Answer:
The description above defines an entrepreneur.
Explanation:
According to traditional economics, there are at least four-factor namely:
LandLabourCapitalEntrepreneurshipMore recent schools of thought have added information and technology that that list.
The entrepreneur still remains a critical part of the list given that it is responsible for putting together the other factors in such a way that value is given and received at the least cost possible.
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Jing Company was started on January 1, Year 1 when it issued common stock for $50,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,000. The equipment had a five-year useful life and a $12,000 expected salvage value. Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements?
Answer:
Depreciation expense - year 3 = $5184
Accumulated depreciation - Year 3 = 23040 + 5184 = $28224
Explanation:
The Financial reporting standards state that the cost of a fixed asset should include the purchase cost and all the costs necessary to bring the asset to the place and in the condition necessary for its use as intended by the management. Thus, the transportation cost will be capitalized as in FOB Shipping Point, the buyer pays for the transportation.
Cost of office equipment = 34000 + 2000 = $36000
Th double declining balance method is an accelerated method to charge depreciation in which higher depreciation is charged in the initial years and lower in the later years.
The formula for depreciation expense under this method is,
Depreciation expense = 2 * [(Asset cost - Accumulated depreciation)/Estimated useful life of the asset]
Depreciation expense - year 1= 2 * [(36000 - 0) / 5
Depreciation expense - year 1 = $14400
Depreciation expense - year 2 = 2 * [(36000 - 14400) / 5]
Depreciation expense - year 2 = $8640
Accumulated depreciation - year 2 = 14400 + 8640 = 23040
Depreciation expense - year 3 = 2 * [(36000 - 23040) / 5]
Depreciation expense - year 3 = $5184
Accumulated depreciation - Year 3 = 23040 + 5184 = $28224
Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,000 units of Fluoro2211 are as follows. Per Unit Data Selling Price $150 Direct Materials 20 Direct Labor 15 Variable Manufacturing Overhead 12 Fixed Manufacturing Overhead 30 Variable Selling 3 Fixed Selling and Administrative 10 Total Costs 90 Operating Margin $60 During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be: Group of answer choices $882,000. $980,000. $972,000. $1,080,000.
Answer:
d. $1,080,000
Explanation:
Contribution per unit = Selling price per unit - Variable cost per unit
Contribution per unit = Selling price per unit - ( Direct Materials + Direct Labor + Variable Manufacturing Overhead + Variable Selling )
Contribution per unit = $160 - ($22 + $15+ $12 + $3)
Contribution per unit = $160 - $52
Contribution per unit = $108 per unit
Contribution margin for the next year = $108 per unit * 10,000
Contribution margin for the next year = $1,080,000
