Amortization. Loan Consolidated Incorporated (LCI) is offering a special one-time package to reduce Custom Autos' outstanding bills to one easy-to-handle payment plan. LCI will pay off the current outstanding bills of $242 comma 000 for Custom Autos if Custom Autos will make an annual payment to LCI at an interest rtae of 9 % over the next 5 years. a. What are the annual payments of the loan? b. What is the amortization schedule for this loan if Custom Autos wants to pay off the loan before the loan maturity in 5 years? c. When will the balance be half paid off? d. What is the total interest expense on the loan over the 5 years?
Answers
Answer:
Please find the complete question in the attached file.
Explanation:
Use PMT for the interest amount computation
[tex]PMT(12\%, 55, 232000, 0 , 0) = \$27,894.77[/tex]
At first, the bulk of an initial premium is paid at the rate of interest, and that only the remainder of the small part is used for amortization. The very first three years schedule is shown below:
[tex]Loan\ \ \ \ \ \ \ \ \ \ Annual\ \ \ \ \ \ \ \ \ \ Interest\ \ \ \ \ \ \ \ \ \ Principal\\\\[/tex]
[tex]1\ \ \ \ \ \ \ \ \$232,000.00\ \ \ \ \ \ \ \ \$27,894.77\ \ \ \ \ \ \ \ \$27,840.00\ \ \ \ \ \ \ \ \$54.77\\\\2\ \ \ \ \ \ \ \ \$231,945.23\ \ \ \ \ \ \ \ \$27,894.77\ \ \ \ \ \ \ \ \$27,833.43\ \ \ \ \ \ \ \ \$61.34\\\\3\ \ \ \ \ \ \ \ \$231,883.89 \ \ \ \ \ \ \ \ \$27,894.77\ \ \ \ \ \ \ \ \$27,826.07\ \ \ \ \ \ \ \ \$68.70\\\\[/tex]
By the 49th payment, upwards of half of the initial amount borrowed would be the total principal paid. Using the formula CUMPRINC in excel, the entire principal payment is calculated twice.
Total Interest Expense [tex]= 27,894.77 \times 55 - 232,000 = \$1,302,212.27[/tex]
Related Questions
During its most recent fiscal year, Raphael Enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. Fixed costs amounted to $729,000 and pretax income was $999,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question
Answers
Answer:
$2,889,000
Explanation:
Sales units = 270,000 units
Sale Price = $17.10
Fixed cost = $729,000
Sales Value = 270,000 * $17.10
Sales Value = $4,617,000
Contribution Margin = Sales- Fixed cost
Contribution Margin = $4,617,000 - $729,000
Contribution Margin = $3,888,000
Variable Cost = Contribution margin- Pretax income
Variable Cost = $3,888,000 - $999,000
Variable Cost = $2,889,000
So, $2,889,000 is the amount that should have been reported as variable costs in the company's contribution margin income statement for the year in question.
Portman company operating at full capacity sold 1000000 units at a price of $188 per unit during the current year , it’s income statement is as follows
Answers
Answer:
Portman Company
1. The total variable costs and the total fixed costs for the current year are:
Total variable costs $88,000,000
Total fixed costs $40,000,000
2. Determination of (a) the unit variable cost and (b) the unit contribution margin for the current year.
a) Unit variable cost $88
b) Unit contribution margin $100
3. The break-even sales (units) for the current year are:
= 400,000 units.
4. The break-even sales (units) under the proposed program for the following year are:
= 450,000 units.
5. The amount of sales (units) that would be necessary under the proposed program to realize the $60,000,000 of operating income that was earned in the current year is:
= 1,050,000,000 units.
6. The maximum operating income possible with the expanded plant is:
= $61,000,000.
7. If the proposal is accepted and sales remain at the current level, the operating income or loss be for the following year will be:
= $55,000,000.
8. Based on the data given (1 - 6), would you recommend accepting the proposal?
In favor of the proposal because of the possibility of increasing income from operations.
Explanation:
a) Data and Calculations:
Sales units = 1,000,000
Selling price = $188
Total
Sales $188,000,000
Cost of goods sold (100,000,000)
Variable cost of goods sold = $70,000,000
Fixed cost of goods sold = $30,000,000
Gross profit $88,000,000
Expenses:
Selling expenses $16,000,000
Variable selling expenses $12,000,000
Fixed selling expense = $4,000,000
Administrative expenses 12,000,000
Variable administrative expenses = $6,000,000
Fixed administrative expenses = $6,000,000
Total expenses (28,000,000)
Operating income $60,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses 50% 50%
Total Unit Cost
Variable cost of goods sold = $70,000,000 $70
Variable selling expenses 12,000,000 12
Variable administrative expenses 6,000,000 6
Total variable costs = $88,000,000 $88
Contribution margin = $100 ($188 - $88)
Fixed cost of goods sold = $30,000,000
Fixed selling expense = 4,000,000
Fixed administrative expenses = 6,000,000
Total fixed costs = $40,000,000
Break-even sales units = $40,000,000/$100 = 400,000 units
Proposal:
Sales revenue increase = $11,280,000
Fixed costs by $5,000,000 to $45,000,000 ($40 million + $5 million)
Sales units increase = 60,000 ($11,280,000/$188)
Break-even sales units = 450,000 ($45,000,000/$100)
Units to realize target profit of $60,000,000:
= ($45,000,000 + $60,000,000)/$100
= $105,000,000/$100
= 1,050,000,000 units
Profit with the expanded plan
= Total contribution - Fixed Costs
= $100 * 1,060,000 - $45,000,000
= $106,000,000 - $45,000,000
= $61,000,000
With sales at current level of 1,000,000 units
Sales revenue = $188,000,000
Variable costs 88,000,000
Contribution $100,000,000
Fixed costs 45,000,000
Operating income $55,000,000
When comparing the results of using the direct, sequential, and reciprocal services methods of allocating support department costs to production departments, which of the following statements is true for a manufacturing company that has a total of $1,500,000 in support costs to allocate?
a.The reciprocal services method allocates more than $1,500,000 to the production departments.
b.The reciprocal services method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the direct method.
c.The direct method yields the most accurate allocation of the $1,500,000.
d.The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method.
Answers
Answer: d. The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method
Explanation:
For a a manufacturing company that has a total of $1,500,000 in support costs to allocate, it should be noted that the sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $448,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. fill in the blank 1 units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? Baseball bats fill in the blank 2 units Baseball gloves fill in the blank 3 units
Answers
Answer: a)the break-even sales (units) for both products combined= 16,000 units
b)break-even point for Baseball bats= 6, 400units
break-even point for Baseball gloves= 9,600units
Explanation:
a. Break-even sales (units) is given as:-
Contribution margin=Sales - Variable costs
Contribution margin for Bats = $40 - $30
= $10
Contribution margin for Gloves = $100 - $60
= $40
Weighted average Contribution margin = ($10 × 40%) + ($40 × 60%)
= $4+ $24
= $28
Break-even = Fixed cost ÷ Contribution margin
= $448,000 ÷ $28
= 16,000 units
b. The computation of units of each product is shown below:-
Baseball bats = 16,000 units × 40%= 6, 400units
Baseball gloves = 16,000units × 60%=9,600units
You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and mature in 35 years. The annual coupon rate is 20.0% and the coupon payments are annual. If you believe that the appropriate discount rate for the bonds is 17.0%, what is the value of the bonds to you
Answers
Answer:
Bond Price= $121.27
Explanation:
Giving the following information:
Face value= $1,000
Coupon= 0.2*1,000= $20
Maturity= 35 years
Discount rate= 17%
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 20*{[1 - (1.17^-35)] / 0.17} + [1,000/(1.17^35)]
Bond Price= 117.16 + 4.11
Bond Price= $121.27
Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $ at the end of years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay percent compounded annually, how much must you deposit each year to reach your goal?
Answers
Answer:
$783.87
Explanation:
Complete question "To pay for your child's education, you wish to have accumulated $10,000 at the end of 8 years. To dothis, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 13 percent compoundedannually, how much must you deposit each year to obtain yourgoal?"
NPER = 8
FV = 10,000
Rate = 13%
PV = 0
Future Value of Annuity = PMT(Rate, NPER, PV, FV)
Future Value of Annuity = PMT(13%, 8, 10000, 0)
Future Value of Annuity = 783.8671964727014
Future Value of Annuity = $783.87
So, one must deposit $783.87 each year to reach the goal.
Which section under Dispute Resolution in a CAR Buyer Representation Agreement states that a buyer and broker agree to mediate any dispute or claim arising before using court action or arbitration?
Answers
The answer to the question is Section 22A of Residential Purchase Agreement.
Dispute Resolution refers to the process by which the conflicts that takes place between two or more parties can be resolved.
Dispute Resolution can be done through negotiation, mediation, arbitration, e.t.c. C.A.R.
It should be noted that the buyer Representation Agreement refers to the document that indicates the terms and the conditions of an agreement that takes place between a buyer and the broker.
Lastly, the section that states that a buyer and broker agree to mediate any dispute or claim arising before using court action or arbitration is Section 22A of the Residential Purchase Agreement under the C.A.R. Buyer Representation Agreement.
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A(n) _____________ activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business. Multiple choice question. operating financing noncash investing
Answers
An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.
A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.
The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market. Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business. Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive. It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.
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At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $308,000 and in Allowance for Uncollectible Accounts of $910 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $13,230. $12,320. $11,410. $11,911.
Answers
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Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production?
a. Debit Work in Process, debit Manufacturing Overhead, and credit Raw Materials.
b. Debit Work in Process and credit Raw Materials.
c. Debit Manufacturing Overhead and credit Raw Materials.
d. Debit Work in Process, debit Manufacturing Overhead, and credit Direct Materials.
Answers
Debit Work in Process, debit Manufacturing Overhead, and credit Direct Materials best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production. Thus option d is the correct option
What is a journal entry?A Journal entry can be defined as an accounting record in which the transaction is being made. Every transaction has two reactions, and all of these are accounted for with the help of a journal entry. About which a person can make a journal and a ledger, a balance sheet, and a profit and loss account.
Debit work in progress or any time of credit material describes the journal entry as the raw material is a part of inventory either taken with the help of debit or credit that is paid in cash, or sometimes it is through check or Bank. Therefore option d is the correct option
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#SPJ2
When looking to advertise a new business online, what is one of the major benefits of display ads?
Answers
They are seen by everyone.
They have higher click-through rate.
They can come in many different formats.
They don't cost too much to set up.
he next dividend payment by Savitz, Inc., will be $5.05 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $43 per share, what is the required return
Answers
Answer:
16.74%
Explanation:
Current Price = Expected Dividend / (Required Return - Growth Rate)
Required Return = (Expected Dividend / Current Price) + Growth rate
Required Return = ($5.05 / $43) + 5%
Required Return = 0.1174419 + 0.05
Required Return = 0.1674419
Required Return = 16.74%
How does the devaluation and appreciation of the local currency effect to balance of payment, analyze for each component
Answers
Answer: Balance of payment will worsen due to devaluation.
Explanation: The balance of payments refers to the balance of supply and demand for a country's currency in the foreign exchange market. Devaluation will make local currency weaker and foreign currency stronger. Therefore less demand for local currency in the foreign market. The imports will become expensive, more amount of local currency will be paid as it is weaker. The exports will become cheaper, more amount of local currency will be received as foreign currency is stronger than it.
Vise Versa for appreciation.
At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Number of units= 6,400
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.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Absorption method:
Unit product cost= direct material + direct labor + total unitary overhead
Unit product cost= 75 + 35 + 15 + 12
Unit product cost= $137
Total ending inventory cost= 137*6,400
Total ending inventory cost= $876,800
Variable costing method:
Unit product cost= direct material + direct labor + variable overhead
Unit product cost= 75 + 35 + 12
Unit product cost= $122
Total ending inventory cost= 122*6,400
Total ending inventory cost= $780,800
R&D Technology Corporation just paid a dividend of $0.50 per share. Analysts expect its dividend to grow at 24 percent per year for the next two years and then 8 percent per year thereafter. If the required rate of return in the stock is 16 percent, calculate the current value of the stock.
Answers
Answer:
$8.82
Explanation:
The computation of the current value of the stock is given below:
Given that
The dividend per share is $0.50
The growth rate is 24% for the next two years
And, then it should be 8 % per year
And, the required rate of return is 16%
Now based on the above information, the current value of the stock is $8.82
The calculation is to be shown in the attachment
Assuming a specific single project with normal cash flows and a cost of capital of 10%, which of the following statements will ALWAYS be true?
a. If NPV > 0 at the stated cost of capital (i.e., 10%), then NPV will also be > 0 at a cost of capital of 12%.
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0.
Answers
Answer:
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0
Explanation:
The net present value shows the net worth of the assets or the project at the discount rate or the cost of capital. In the case when the net present value comes in positive so the internal rate of return should be more than the cost of capital
Also the profitability index lies between -1 and +1 so if the net present value is positive so the profitability should be more than 1
Hence, b to e statements are correct
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $300,000, variable expenses of $152,100, and traceable fixed expenses of $70,300. The Alpha Division has sales of $610,000, variable expenses of $335,800, and traceable fixed expenses of $131,900. The total amount of common fixed expenses not traceable to the individual divisions is $133,200. What is the company's net operating income
Answers
Answer: $86700
Explanation:
The net operating income is used in knowing the profitability of an investment. The net operating income is gotten by subtracting the expenses from the revenue.
Based on the information given in the question, the net operating income is $86700. Kindly check the attachment for further details.
Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par? (hint: a portion of dividends are tax-exempt for corporate investors).
Answers
The coupon rate must be set at 9.77%
The after-tax return on the bonds is:
= Annual payment rate * ( 1 - tax rate)
= 8.1% * ( 1 - 40%)
= 4.86%
The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:
= 4.86% + 1%
= 5.86%
If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:
= After tax yield / ( 1 - tax rate)
= 5.86% / ( 1 - 40%)
= 9.77%
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Answer:
9.77 is the correct answer
i think this helps u
Allocative efficiency occurs:
a. Anywhere inside or on the production possibilities frontier.
b. When the total cost of production is minimized
c. At all points on the production possibilities frontier.
d. At only one point on the production possibilities frontier.
e. At the points where the production possibilities frontier crosses the horizontal or vertical axis.
Answers
Answer:
a. Anywhere inside or on the production possibilities frontier.
Explanation:
In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.
The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.
On the [tex]\text{equilibrium point,}[/tex] the price for a supply [tex]\text{exactly matches}[/tex] with the demand for the product [tex]\text{for that supply}[/tex] at that price, and thus all the products are sold.
It occurs anywhere on the production possibilities frontier or on the inside of the frontier.
Therefore, the correct option is (a).
Is there any company or firm that doesn't use CRM?
May i know the name of that company?
Answers
Answer:
Choudhary group of company
A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Project D described below is 10 percent. Assuming that the projects are independent, which project(s) should the company accept?
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
b. Project B has an internal rate of return of 9.5 percent.
c. Project C requires an up-front expenditure of $1,000,000 and has a profitability index of 0.85
d. Project D requires an up-front expenditure of $200,000 and generates a net present value of negative $200
e. None of the projects above should be accepted.
Answers
Answer:
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
Explanation:
a.
The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.
b.
When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.
c.
The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.
d.
Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.
Ice Co stock has a beta of 1.85, the current risk-free rate is 5.10 percent, and the expected return on the market is 15.10 percent. What is Ice Co's cost of equity
Answers
Answer:
23.60%
Explanation:
According to the capital asset price model:
cost of equity = risk free + beta x (market rate of return - risk free rate of return)
5.10 + 1.85 x (15.10 - 5.10)
= 5.10 + (1.85 x 10)
=23.60%
When marginal revenue equals marginal cost, the firm a. should increase the level of production to maximize its profit. b. may be minimizing its losses rather than maximizing its profit. c. must be generating positive economic profits. d. must be generating positive accounting profits.
Answers
When marginal revenue is equal to the marginal cost, then the firm should increase the level of production to maximize its profit.
Marginal revenue simply means the increase in revenue that a company makes as a result of selling an additional output of good. Marginal cost is the cost that a company incurs for production of one extra unit of good.
It should be noted that when the marginal cost if a firm is more than the marginal revenue, it means that the firm is producing too much.
When the marginal revenue of the firm equals the marginal cost, then the firm should maximize its profit.
The correct option is A.
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The Economic Order Quantity is when: holding costs equal ordering costs total costs are minimized the product cost is not considered to determine the quantity to be purchased all of the above none of the above
Answers
Answer: all of the above
Explanation:
At the Economic Order Quantity level, the company is enjoying the lowest cost possible in relation to product ordering and storage because they are ordering just enough quantities that they are able to sell them just in time to order some new goods.
For this to happen, the holding cost must be equal to the ordering costs. At the EOQ, the product cost is irrelevant when the quantity to be bought is to be determined because it is minimized.
Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $30, direct labor $20, variable manufacturing overhead $16, fixed manufacturing overhead $42, variable selling and administrative expenses $18, and fixed selling and administrative expenses $24. Its desired ROI per unit is $27.00. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%.)
Answers
Answer:
111%
Explanation:
Computation to determine its markup percentage using a total-cost approach
First step
Variable cost per unit= Direct materials+Direct labor+Variable manufacturing overhead+Variable selling and administrative expenses
Variable cost per unit= $30+20+16+18
Variable cost per unit= $84
Second step
Fixed cost per unit= Fixed manufacturing overhead+Fixed selling and administrative expenses
Fixed cost per unit= $42+24
Fixed cost per unit= $66
Now let determine the Variable costing markup percentage
Variable costing markup percentage= (Desired ROI+Fixed cost per unit)*100/Variable cost per unit
Variable costing markup percentage= ($27+66)*100/84
Variable costing markup percentage=110.7 %
Variable costing markup percentage=111% (Approximately)
Therefore its markup percentage using a total-cost approach is 111%
Name 2 of the 4 structures a business can have
Answers
Answer:
4 Types of Legal Structures for Business:
Sole Proprietorship. General Partnership. Limited Liability Company (LLC) Corporations (C-Corp and S-Corp)Economic life of equipment: 5 years. Implicit interest rate and lessee's incremental borrowing rate: 9% semiannually. Fair value of the computers at January 1, 2021: $23 million. What is the interest revenue that Technoid would report for this lease in its 2021 income statement
Answers
Answer:
$3,411,922.19
Explanation:
Calculation to determine the interest revenue that Technoid would report for this lease in its 2021 income statement
First step is calculate interest for the first six months
Interest for the first six months=[$23,000,000-lease payment of 3,287,947) × 9%]
Interest for the first six months=$19,712,053×9%
Interest for the first six months=$1,774,084.77
Interest for the first six months=$1,774,085 (Approximately)
Second step is to calculate the interest for the second six months
Interest for the second six months=[$23,000,000 - lease payment of 3,287,947 - ($3,287,947 - $1,774,085)] × 9%
Interest for the second six months=($19,712,053-$1,513,862)×9%
Interest for the second six months=$18,198,191×9%
Interest for the second six months=$1,637,837.19
Now let determie the interest revenue using this formula
Interest revenue=Interest for the first six months+Interest for the second six months
Let plug in the formula
Interest revenue=$1,774,085+$1,637,837.19
Interest revenue=$3,411,922.19
Therefore the interest revenue that Technoid would report for this lease in its 2021 income statement is $3,411,922.19.
San Antonio Chair Inc. has direct labor cost standard of $14 per direct labor hour and an efficiency standard of 6 hours per chair. The actual results for the period when 30 chairs were built were 130 direct labor hours at an actual cost of $1,560. What is the direct labor cost variance
Answers
Answer:
Total direct labor variance= $960 favorable
Explanation:
Giving the following information:
We will separate the direct labor cost variance in rate and quantity variance. To calculate the direct labor rate and quantity variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (30*6 - 130)*14
Direct labor time (efficiency) variance= $700 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 12)*130
Direct labor rate variance= $260 favorable
Actual rate= 1,560/130= $12
Total direct labor variance= 700 + 260
Total direct labor variance= $960 favorable
On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $31,000 in cash and giving a short-term note for $278,000. Legal fees paid were $2,220, delinquent taxes assumed were $15,700, and fees paid to remove an old building from the land were $20,800. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
Answers
Answer:
the cost of the land that should be reported on the balance sheet is $343,120
Explanation:
The calculation of the cost of the land that should be reported on the balance sheet is given below:
= cash payment + Short term note payable + legal fees paid + delinquent taxes + fees paid for removing out the old building - salvage value
= $31,000 + $278,000 + $2,220 + $15,700 + $20,800 - $4,600
= $343,120
hence, the cost of the land that should be reported on the balance sheet is $343,120
Mott Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $37, $47, and $57, respectively Variable costs per unit are $30, $31, and $34, respectively. Fixed costs are $456,000. What is the break-even point in composite units?
a) 1.239 composite units
b) 1357 composite units
c) 2763 composite units
d) 4,606 composite units.
Answers
Answer:
6,000 composite units
Explanation:
A B C Total
Selling price per unit 37 47 57
Less: Variable cost per unit 30 31 34
CM per unit 7 16 23
Sales mix 3 2 1
CM per sales mix 21 32 23 76
Break even in composite unit = Fixed cost / CM per sales mix
Break even in composite unit = $456,000 / 76
Break even in composite unit = 6,000
