Answer:
the contribution margin for October is $198,400
Explanation:
The computation of the contribution margin for October is given below:
= Sales - Cost of goods sold (all variable) - Total variable selling expense - Total variable administrative expense
= $407,000 - $173,400 - $20,400 - $14,800
= $198,400
Hence, the contribution margin for October is $198,400
Therefore the first option is correct
And, the same should be considered
At the beginning of the recent period, there were 960 units of product in a department, 35% completed. These units were finished and an additional 5,200 units were started and completed during the period. 880 units were still in process at the end of the period, 25% completed. Using the weighted average method, the equivalent units produced by the department were:
Answer:
Using the weighted average method, the equivalent units produced by the department were:
= 5,500 units.
Explanation:
a) Data and Calculations:
Units Conversion
Beginning inventory 960 35%
Additional units started 5,200
Units available 6,160
Ending inventory 880
Units completed 5,280
Equivalent units of production:
Units completed 5,280 5,280 (100%)
Ending inventory 880 220 (25%)
Equivalent units of production 5,500
On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of $43,830, beginning on December 31, 20Y2.Journalize the entries to record the following:
Answer and Explanation:
The journal entries are shown below:
1. Cash Dr $175,000
To note payable $175,000
(being note payable is issued)
2. Interest expense Dr (8% of $175,000) $14,000
To interest payable $14,000
(being interest expense is recorded)
3. Interest payable $14,000
Note payable $29,830
To cash $43,830
(being cash paid is recorded)
4. Interest expense $6,253
To interest payable $6,253
(being interest expense is recorded)
5. Interest payable $6,253
Note payable $37,577
To cash $43,830
(being cash paid is recorded)
A certificate of deposit usually has: Multiple Choice a variable rate of return. no minimum deposit amount. no set time period. a penalty for early withdrawal of funds. earnings based on fluctuating market interest rates.
Answer:
A certificate of deposit usually has:
a penalty for early withdrawal of funds.
Explanation:
When a customer opens an account with a bank or credit union with an initial deposit, which remains the same or continues to increase at a fixed amount until the agreed maturity period, a certificate of deposit is issued to the customer. The customer does not withdraw any amount until the fixed period has elapsed. Thereafter, the customer receives a fixed interest plus the deposit.
Fresh Veggies, Inc. (FVI), purchases land and a warehouse for $450,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: broker's commission, $25,000; title insurance, $1,500; and miscellaneous closing costs, $5,200. The warehouse is immediately demolished at a cost of $25,000 in anticipation of building a new warehouse. Determine the amount FVI should record as the cost of the land
Answer:
$506,700
Explanation:
Calculation to determine the amount FVI should record as the cost of the land
Purchases land and a warehouse for $450,000
Add Commission $25,000
Add Title insurance $1,500
Add Miscellaneous closing costs $5,200
Add Demolished cost $25,000
Cost of the land $506,700
Therefore the amount FVI should record as the cost of the land is $506,700
A money market security that has a par value of $10,000 sells for $8,924.70. Given that the security has a maturity of two years, what is the investor's required rate of return?
Answer:
The answer is "5%".
Explanation:
[tex]\to \$8,924.70 = \frac{10,000}{(1 + r )^2}\\\\\to \$8,924.70 (1+r)^2= 10,000\\\\\to (1+r)^2= \frac{10,000}{\$8,924.70}\\\\\to (1+r)^2= \frac{10,000}{\$8,924.70}\\\\\to (1+r)^2= 1.1204\\\\\to (1+r)= 1.05\\\\\to r= 1.05-1\\\\\to r=0.05\\\\\to r=5\%\\\\[/tex]
The gravity model offers a logical explanation for the fact that :________
A) trade between Asia and the U.S. has grown faster than NAFTA trade.
B) trade in services has grown faster than trade in goods.
C) trade in manufactures has grown faster than in agricultural products.
D) Intra-European Union trade exceeds international trade by the European Union.
E) the U.S. trades more with Western Europe than it does with Canada.
which of the following would be included in the set of electrical plans for individual residence?
A. Individual romex cables
B. Power panels to be installed
C. routes of cables
D. Wire sizes
Answer:
A. Individual romex cables
Explanation:
Individual romex cables would be included in the set of electrical plans for individual residence.
This is because they are a non-metallic sheathed cables, and they are flexible electrical cables which are popularly used in residential setups.
This cable comes with two insulated wires that include a ground copper wire that ensures safe passage of electrical current in case of any unfortunate event.
Margas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame. For the month of May, the company planned for activity of 808 frames, but the actual level of activity was 810 frames. The actual supplies cost for the month was $7,090. The supplies cost in the flexible budget for May would be closest to:_____.a. $7,106.
b. $7,088.
c. $7,100.
d. $7,090.
Answer: c. $7,100
Explanation:
Supplies cost according to the flexible budget is to be calculated based on the actual level of activity.
The cost is:
= Fixed cost + (Variable cost * actual level of activity)
= 2,240 + (6 * 810)
= 2,240 + 4,860
= $7,100
Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks were manufactured at a total cost of $82,800. In the month of lowest production, the company made 1,290 desks at a cost of $64,900. Using the high-low method of cost estimation, total fixed costs are a.$52,816 b.$82,800 c.$64,900 d.$17,900
Answer:
a.$52,816
Explanation:
Calculation to determine total fixed costs
First step
Variable cost per unit = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)
Variable cost per unit= ( 82,800-64,900)/(3,200-1,290)
Variable cost per unit= 17,900/1910
Variable cost per unit= $9.37 per unit
Now let determine the Fixed cost
Fixed cost = Highest activity cost - Highest activity x Variable cost per hour
Fixed cost= $82,800 - 3,200 x 9.37
Fixed cost= $82,800-$29,984
Fixed cost= $52,816
Therefore Using the high-low method of cost estimation, total fixed costs are $52,816
Ames Trading Co. has the following products in its ending inventory.Product Quantity Cost per Unit Market per UnitMountain bikes 11 $600 $550Skateboards 13 $350 $425Gliders 26 $800 $700Compute lower of cost or market for inventory applied separately to each product.
Answer:
Mountain Bikes
Market value is $550 and cost is $600.
Lower is market.
Inventory value is therefore:
= Quantity * Market
= 11 * 550
= $6,050
Skateboards
Market value is $425 and cost is $350.
Cost is lower.
Inventory value is:
= 13 * 350 cost
= $4,550
Gliders
Market value is $700 and cost is $800.
Inventory value is:
= 26 * 700 market value
= $18,200
Analysis of a foreign subsidiary's financial statements denominated in Euro, its local currency, shows a growth rate in revenue of 16%. Suppose that during the year, the value of the Euro increased in terms U.S. dollars. The subsidiary's revenue growth rate expressed in U.S. dollars will be:
Answer:
The appropriate answer is "Greater than 16%".
Explanation:
Throughout this situation, the country's currency of companies has shown a 16 percent raise, which means that the sales of the subsidiaries would increase more than 16 percent whenever represented among Us dollars.As several currencies are increasing inside this valuation of the national currency, the transformation rate is greater than 16% as that the incidence increases.A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real world, this government is quite certain that it can achieve the same price and quantity either way. It wants to choose the method that will pull in more government tax revenue. Is selling allowances better for revenues or is setting a pollution tax better, or will both raise exactly the same amount of revenue
Answer: Both will raise the same amount
Explanation:
The government here is certain that it can achieve the same quantity and price regardless of if it uses a pollution tax or pollution allowance. This means that it would be charging the companies the same regardless of the method used.
Both methods would therefore yield the same amount if the government uses either of them.
The ABC Corporation makes collections on sales according to the following schedule: 45% in month of sale 50% in month following sale 5% in second month following sale The following sales have been budgeted: Sales April $ 160,000 May $ 180,000 June $ 170,000 Budgeted cash collections in June would be:
Answer: $170500
Explanation:
Based on the information given in the question, the budgeted cash collections in June would be calculated thus:
= (45% × $160000) + (50% × $180000) + (5% × $170000)
= $72000 + $90000 + $8500
= $170500
Therefore, the budgeted cash collections in June would be $170500
You decide to buy 1,800 shares of stock at a price of $68 and an initial margin of 75 percent. What is the maximum percentage decline in the stock price before you will receive a margin call if the maintenance margin is 30 percent
Answer:
Decline percentage = 64.29%
Explanation:
First find the margin call price = Initial price x (1 - initial margin) / (1-maintenance margin)
Margin call price = 68 x ( 1- 75%) / (1 - 30%)
Margin call price = $24.29
The margin call that the investor will have if the price fall to $24.29.
Now find the percentage decline:
Percentage decline = (68 - 24.29) / 68
Percentage decline = 0.6429
Thus decline percentage = 64.29%
Check all answers that apply. Based on the model output, we can say that both the size of the move (CuFt) and number of large furniture moved are important considerations when estimating the total number of labor hours required. We can make this claim because __________.'
Answer:
P-value for slope coefficient of the size of the mode CuFt is0.00
Explanation:
The slope coefficient is change in probability when all other independent variables are held constant. The output is 93.3 which is due to the variation in labor hours. These variations are due to large number of furniture moved in cubic feet.
MC Qu. 111 Brush Industries reports the following... Brush Industries reports the following information for May: Sales$955,000 Fixed cost of goods sold 111,000 Variable cost of goods sold 261,000 Fixed selling and administrative costs 111,000 Variable selling and administrative costs 136,000 Calculate the operating income for May under absorption costing.
Answer:
Particulars Amount
Sales $955,000
Less: Fixed cost of goods sold $111,000
Less: Variable cost of goods sold $261,000
Gross Profit $583,000
Less: Fixed selling & admin. costs $111,000
Less: Var. selling & admin. costs $136,000
Operating Income $336,000
By appropriately preparing a forecast budget, a company can avoid __________. a net loss inventory shortages insolvency regulation
Answer:
insolvency
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
A specialized budget can be defined as a financial plan that is typically focused on specific assets or activity of a master (comprehensive) budget.
In conclusion, by appropriately preparing a forecast budget, a company can avoid insolvency.
At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note that states an annual interest rate of 9% plus principal repayments of $5,600 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter
Answer:
Current liabilities Increase by $6356
Non-current liabilities Increase by $27,244
Explanation:
Calculation to determine How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter
First step is calculate the Interest Payable using this formula
Interest Payable = Principal × Interest rate × Time
Let plug in the formula
Interest Payable= $33600 × 0.09 × 3/12
Interest Payable= $756
Now let determine the current and non-current liability amounts
Current liabilities = Interest payable + Current portion of long-term debt
Current liabilities= $756 + $5600
Current liabilities= $6356
Non-current liability = Amount of promissory note - Current portion of long-term debt
Non-current liability= $33600 - $6356
Non-current liability= $27,244
Therefore How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter is:
Current liabilities Increase by $6356
Non-current liabilities Increase by $27,244
All of the following are symptoms of organizations struggling with strategy disconnect and unclear priorities EXCEPT Multiple Choice inadequate resources. people are working on multiple projects and feel inefficient. frequent conflicts between managers. confused employees regarding which projects are more important. not enough projects within the portfolio to make a profit.
Answer:
All of the following are symptoms of organizations struggling with strategy disconnect and unclear priorities EXCEPT
not enough projects within the portfolio to make a profit.
Explanation:
Strategy disconnect does not support an organization to be consistent in its actions at every level. However, where the strategy is shared across board, there is an integrated and coordinated attempt at long-term planning with the organization positioned to exceed the needs of its customers and to achieve success. With strategy connect, the organization responds well to changes in its external environment and is able to allocate scarce resources for the improvement of its competitive position.
In the world oil market, oil is supplied up to the point where: Select one: A. the marginal cost of the last barrel is at a maximum B. the marginal cost of the last barrel is the greatest distance from the price buyers are willing to pay for that last barrel C. the marginal cost of the last barrel is zero D. the marginal cost of the last barrel is just equal to the price buyers are willing to pay for that last barrel.
Answer:
D. the marginal cost of the last barrel is just equal to the price buyers are willing to pay for that last barrel.
Explanation:
In the case of the oil market that oil is to be supplied to the point where the marginal cost of the previous barrel should be equivalent to the price where the pruchaser want to pay for that previous barrel
So as per the given situation, the option d is correct
ANd, the rest of the options seems incorrect
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,200. The division sales for the year were $963,800 and the variable costs were $477,000. The fixed costs of the division were $529,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be:__________.
a. $275,200 increase
b. $486,800 decrease
c. $211,600 increase
d. $275,200 decrease
e. $486,800 increase
Answer:
d. $275,200 decrease
Explanation:
Calculation to determine what The impact on Granfield's operating income for eliminating this business segment would be:
Using this formula
Impact on operating income =Saving in relevant fixed cost -loss of Contribution margin of backpack Division
Let plug in the formula
Impact on operating income=($529,000*40%)-($963,800-$477,000)
Impact on operating income=$211,600-$486800
Impact on operating income=$275,200 decrease
Therefore The impact on Granfield's operating income for eliminating this business segment would be:$275,200 decrease
A(n) ______ is a network that links the intranets of business partners via the Internet in such a way that the result is a virtually private network.a. intranet b. browser c. extranet
Answer:
c. extranet
Explanation:
The controlled, and the private network that permits the third-party partners in order to received the information that related to the particualr company and also it can be done without any access for an overall network of an organization
So as per the given situation, it is an extranet
Hence, the same is to be considered
Hayward Industries manufactures dining chairs and tables. The following information is available: Dining Chairs Tables Total Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labor hours 2,600 2,400 Hayward is considering switching from one overhead rate based on labor hours to activity-based costing. Perform the following analyses for these two components of overhead: Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.
Answer and Explanation:
The computation is shown below:
Single overhead rate is
= total cost ÷ total labor hours
= ($48000 + $72000 ) ÷ (2600+2400)
= 24 per labour hour
Now
Dining chairs
= 2600 × 24
= $62400
And,
tables
= 2400 × 24
= $57600
total = $120000
Swift Motor Lines has a delivery truck that cost $11,000, and has $1,000 of accumulated depreciation. What is the fair market value of the truck
Answer: Information is not sufficient to answer.
Explanation:
The fair market value of a fixed asset is the current value in the market of the fixed asset. Given that we do not know the current market value as it is not given in the question, we are unable to answer this question.
If the question had asked to calculate the net book value then we would have simply subtracted the accumulated depreciation from the cost price but this is a fair market value question so its different.
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a) At a minimum, how many units must Portal sell in order not to incur a loss?b) Prepare a contribution margin income statement showing predicted net income (loss) if Portal sells 100,000 units for the year ended December 31.
At a bare minimum, the units must portal sold in order not to incur a loss of 130,000 units.
Contribution margin per unit = Selling price per unit - Variable costs per unit
= $15 - $11
= $4
Break-even sales = Fixed costs / Contribution margin per unit
= $520,000 / $4
= $130,000
Sales (130,000 units * $15) $1,950,000
Variable costs (130,000 units * $11) ($1,430,000)
Contribution margin $520,000
Fixed costs ($520,000)
Net income $0
What is the Contribution margin per unit?The asking price of 1 unit of the product less the variable producing expenses is that the contribution margin per unit. the quantity that every sale contributes toward covering mounted prices is understood because of the unit contribution margin. it'll show the profit per unit oversubscribed when the mounted prices are paid.
Revenue less variable prices equal contribution margin. The formula for conniving the contribution margin magnitude relation is revenue - variable prices / by revenue.
The nearer the contribution margin is to 100 percent, the better; 100 percent is that the ideal contribution margin. The larger the quantity, the lot effectively a business pays its operational expenses out of money existing.
Selling price per unit less variable price per unit equals contribution margin, usually called dollar contribution per unit. the quantity of sales revenue stated as "Contribution" is the fraction that's not accustomed pay variable prices and thus helps to hide mounted prices.
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A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is
Answer:
The amount allocated to cost of goods sold for July is $2,070.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Olympus Climbers Company has the following inventory data:
July 1 Beginning inventory 30 units at $19 $570
7 Purchases 105 units at $20 2100
22 Purchases 15 units at $22 330
$3000
A physical count of merchandise inventory on July 30 reveals that there are 48 units on hand. Using the LIFO inventory method, the amount allocated to cost of goods sold for July is
The explanation of the answers is now provided as follows:
Last in, first out (LIFO) inventory method refers to a method under which the costs of the costs of the most recent goods purchased or manufactured are expensed first.
Thereforee, the amount allocated to cost of goods sold for July can be calculated as follows:
Total units available for sales = 30 + 105 + 15 = 150 units
Units sold = Total units available for sales - Units on hand on July 30 = 150 - 48 = 102 units
Cost of goods sold for July = Value of 15 units July 22 purchases + (87 units * Cost per units of purchases on July 7) = $330 + (87 * $20) = $330 + $1,740 = $2,070
Therefore, the amount allocated to cost of goods sold for July is $2,070.
What is the purpose of an inspection report
Along any downward sloping straight-line demand curve: Group of answer choices both the price elasticity and slope are constant. both the price elasticity and slope vary. the price elasticity varies, but the slope is constant. the slope varies, but the price elasticity is constant.
Answer:
the price elasticity varies, but the slope is constant
Explanation:
The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
At the midpoint of the demand curve, demand is usually unit elastic. Above the midpoint of the demand curve, demand is elastic and blow the midpoint, demand is inelastic
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Kohl Co. provides warranties for many of its products. The January 1, 2013, balance of the Estimated Warranty Liability account was $54,088. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 0.60% of sales. During 2013, the actual cost of servicing products under warranty was $39,922, and sales were $2,149,100. Required: a. What amount of Warranty Expense will appear on Kohl Co.'s income statement for the year ended December 31, 2013
Answer: $12,894.60
Explanation:
Warranty expense for 2013 will be calculated as:
= Actual warranty expense * Estimated warranty expense %
Actual warranty expense = Sales because these are the products under warranty.
Warranty expense is therefore:
= 2,149,100 * 0.60%
= $12,894.60
The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $91,050. The conversion cost for the period in the Filling Department is $497,860. The total equivalent units for direct materials and conversion are 60,700 ounces and 68,200 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent. Direct materials cost per equivalent unit: $fill in the blank 1 per ounce Conversion costs per equivalent unit: $fill in the blank 2 per ounce
Answer:
Cost of Direct material per unit = $1.50 per unitCost of Conversion = $7.30 per unitExplanation:
Cost of Direct material per unit is:
= Total cost of direct material / Total equivalent units for direct materials
= 91,050 / 60,700
= $1.50 per unit
Cost of conversion
= Total cost of Conversion / Total equivalent units for Conversion
= 497,860 / 68,200
= $7.30 per unit
