Break-Even Sales and Sales to Realize Income from OperationsFor the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a unit selling price of $380.a. Compute the anticipated break-even sales (units).unitsb. Compute the sales (units) required to realize income from operations of $2,405,000.units

Answers

Answer 1

Answer:

a. 110,000 units

b. 128,500 units

Explanation:

a. Compute the anticipated break even sales in unit

Break even point in unit = Total fixed cost / Contribution margin

Total fixed cost = $14,300,000

Contribution margin per unit = Unit selling price - Unit variable cost

= $380 - $250

= $130

Break even point in units = $14,300,000 / $130

= 110,000 units

b. Compute sales (units) required to realize income from operations of $2,405,000

Break even point + expected profits = (total fixed costs + expected profits) / Contribution margin

° total fixed cost + expected profits

= $14,300,000 + $2,405,000

= $16,705,000

°contribution margin per unit

= $380 - $250

= $130

Break even point + expected profits in unit

= $16,705,000 / $130

= 128,500 units


Related Questions

The price of oil in the United States has been very volatile over the last 50​ years, with the real price of oil showing a few dramatic swings. When did these swings​ occur, and what can explain​ them? The first dramatic swing happened in the 1970s when there was a sharp ▼ drop rise in the real price of oil caused by ▼ a large financial crisis the formation of OPEC increased demand from emerging economies . The second swing happened in the 2000s when there was a sharp ▼ rise drop in the real price of oil caused by ▼ increased demand from emerging economies a large financial crisis the formation of OPEC . The most recent swing happened in 2008 when there was a sharp ▼ rise drop in the real price of oil caused by

Answers

Answer:

The first dramatic swing happened in the 1970s when there was a sharp rise in the real price of oil caused by the formation of OPEC.

In 1973, the World saw it's first oil spike when members of the Organization of Oil Exporting Countries (OPEC) being mostly Muslims, decided to punish the Western World for their perceived support of the Israelis in the Yom Kippur War. They placed an embargo on the sale of oil to the West and because they controlled 56% of the then World supply, this was enough to force the price of oil up due to the reduction in demand.

The second swing happened in the 2000s when there was a sharp rise in the real price of oil caused by increased demand from emerging economies.

From the early 2000s to 2008, the price of oil kept rising steadily till it reached around $147.30 in July 2008. This rise in prices was due to increased demand from newly industrialized and emerging nations like China that needed the oil to maintain their rapid growth.

The most recent swing happened in 2008 when there was a sharp drop in the real price of oil caused by a large financial crisis.

By December 2008, the price of oil had fallen to $32 and this was down to the global recession that was ravaging the World known as the Great Recession. As the world saw economic output fall, demand for oil decreased sharply thereby forcing the price of oil to fall dramatically.

The basic unit in which data are stored in an accounting system is called an __________. These storage units should be so constructed as to readily receive money measurements of the __________ or ___________ in the items for which they are established.

Answers

Answer:

it would be 3 units for the first part then second answer would be 5 then the last one would be 13

Explanation:

that's why it would be asking for how many units for each storage units

Identify five HRM criteria or components that can be used to measure organizational effectiveness or ineffectiveness. "Grievance rate" is an example.

Answers

Answer:

They include;

1. Customer Satisfaction

2. Absenteeism

3. Legal Compliance

4. Performance

5. Training

Explanation:

The Human Resource Management criteria that are used to measure the effectiveness or ineffectiveness of an organization, are a list that gives an idea of how an organization is performing, and this list can serve as a basis of comparison with other organizations. These options include;

1. Satisfaction: If the employees are treated fairly and so, feel satisfied with the organization, then they can be said to be effective.

2. Absenteeism: When workers are always absent from work it does not present the organization as an effective one.

3. Legal Compliance: The organization must be able to comply to government rules and regulations guiding the business to be rated as effective.

4. Performance: High or low-performance which is reflected in the turnover rates would be an indication of how effective or ineffective an organization is.

5. Training: The organization should be able to provide regular standard training for its workers to be rated as effective.

A firm has the following gross requirements for Item OF. Ordering costs are $60 per order and carrying costs are $0.50 per period.

Item F Period
LT: 1 1 2 3 4
Gross Requirements 60 40 80 60
Schedule Receipts
Project on Hand 100
Net Requirements
Planned Order Receipts
Planned Order Releases

If EOQ lot sizing is used the minimum order quantity would be:_______

a. 85
b. 100
c. 120
d. 150

Answers

Answer:

c. 120

Explanation:

The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The formula for Economic order quantity is represented by the formula:

EOQ = [tex]\sqrt{\frac{2*Demand*Ordering Cost}{Holding cost} }[/tex]

EOQ = [tex]\sqrt{\frac{2*240*60}{0.5} }[/tex]

EOQ = 120

Uber's guidance that if a driver's "rating over the most recent 100 trips is below a 4.6, your profile may be at risk of deactivation" represents which step in the control process?

a. take corrective action, if necessary
b. compare performance to standards
c. recognize success
d. measure performance
e. establish standards

Answers

Answer:

e. establish standards

Explanation:

-Take corrective action, if necessary is when managers decide strategies to implement when the results are not meeting the standards that were established.

-Compare performance to standards is the step that determines if there is a difference between the company's performance and the standards.

-Recognize success is not a step in the control process.

-Measure performance refers to gather and analyze data to determine if the company is meeting the goals set.

-Establish standards refers to establishing goals that are specific, attainable and clear to be able to evaluate the company's performance.

According to this, the answer is that Uber's guidance that if a driver's "rating over the most recent 100 trips is below a 4.6, your profile may be at risk of deactivation" represents establish standards because Uber established a rating that driver's need to achieve which represents the standard that would be use to evaluate them.

15. Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 10% was $81,100. Ten annual lease payments of $12,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $66,000, and its retail fair value was $81,100. What amount of interest revenue from the lease should Smith Co. report in its December 31, 2021, income statement

Answers

Answer: $3,455

Explanation:

The interest received by Smith can be calculated as;

Interest Value = Present value of lease payment * interest rate

Present Value of interest rate

Ten annual lease payments of $12,000 are due each year beginning July 1, 2021.

That means first payment has been made already. Present value is;

= 81,100 - 12,000

= $69,100

Only half a year has gone by so this will need to be reflected;

Interest Value = Present value of lease payment * interest rate

= 69,100 * 10% * 6/12

= $3,455

Today’s business headlines frequently cite pensions being underfunded, thus costing companies more in contributions to their pension fund as well as pensioners risking not receiving what they had planned for retirement. This has been caused by underperformance of the pension fund itself and the over promising of benefits to retirees. Take the following example:_______.
Assume $20m was invested today to provide for pension payments for a group of employees. Assume also that the average return on these funds was 8.5%
1. How big will the fund be in 25 years?
2. Suppose at year 12 the fund decreased in value by 30%. What returns would be required for the next 13 years to achieve the 25 year amount?
3. Advisor's counseled the company that a conservative investment return of 6% annually for the next 13 years would be advisable and that the company would have to contribute annually to make up the shortfall. How much would have to be contributed annually beginning year 13 if the fund earned 6% in order to achieve the 25 year goal?
Please show the method used to solve this problem.

Answers

Answer:

1) in 25 years, the pension fund should equal:

future value = present value x (1 + interest rate)ⁿ

FV = $20,000,000 x (1 + 8.5%)²⁵ = $153,735,247

2) the value in 12 years = $20,000,000 x (1 - 30%) = $14,000,000

future value = present value x (1 + interest rate)ⁿ

$153,735,247 = $14,000,000 x (1 + interest rate)¹³

(1 + interest rate)¹³ = $153,735,247 / $14,000,000 = 10.981

¹³√(1 + interest rate)¹³ = ¹³√10.981

1 + interest rate = 1.2024

interest rate = 1.2024 - 1 = 20.24%

3) if the fund only earns 6%, in 13 years it will be worth:

FV = $14,000,000 (1 + 6%)¹³ = $29,860,996

so you need $153,735,247 - $29,860,996 = $123,874,251 more

we need to use the future value of an annuity formula:

FV of an annuity = annuity payment x annuity factor

FV of an annuity = $123,874,251annuity payment = ?annuity factor (6%, 13 periods) = 18.882

annuity payment = $123,874,251 / 18.882 = $6,560,441

The practice of changing prices for products in real time in response to supply and demand conditions is referred to as

Answers

Answer:

Dynamic pricing

Explanation:

In simple words, Dynamic pricing, often alluded to as rising rates, vibrant pricing as well as period-based pricing, relates to the pricing technique under which companies set variable prices for goods or commodities on the basis of existing consumer demands. A main benefit of competitive pricing seems to be the opportunity to increase the income with each consumer.

Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On January 3, it is installed on a required operating platform costing $1,160, and it is further readied for operations. The company predicts the machine will be used for six years and have a $14,000 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.Required:Prepare journal entries to record the machine's disposal under each of the following separate assumptions: a. It is sold for $22,000 cash. b. It is sold for $88,000 cash. c. It is destroyed in a fire and the insurance company pays $32,500 cash to settle the loss claim.

Answers

Answer:

All the requirements are solved below

Explanation:

Purchase = $178,000

Ready to use cost = $2,480

Installation cost = $1,160

Salvage value = $14,000

Depreciation method = Straight line

Useful life = 6 years

Solution

Requirement A If sold for $22,000

Entry                                               DEBIT      CREDIT

Cash                                            $22,000

Accumulated depreciation       $140,000

Profit/loss on disposal               $20,000

Machinery                                                       $182,000

Requirement B If sold for $88,000

Entry                                             DEBIT        CREDIT

Cash                                            $82,000

Accumulated depreciation       $140,000

Profit/loss on disposal                                   $40,000

Machinery                                                       $182,000  

Requirement C If destroyed in fire and insurance company paid $32,500

Entry                                             DEBIT      CREDIT

Cash                                            $30,000

Accumulated depreciation       $140,000

loss from fire                              $12,000

Machinery                                                       $182,000

Workings

Cost =$178,000 + $2,480 + $1,160

Cost = $182,000

Accumulated depreciation = ([tex]\frac{182,000-14,000}{6}x5[/tex]

Accumulated depreciation = 140,000

Budgeted variable overhead for the year is $150,000. Expected activity is 30,000 standard direct labor hours. The actual hours worked were 15,000 and the standard hours allowed for actual production were 18,000. The variable overhead efficiency variance is:

Answers

Answer:

-$15,000 favorable variance

Explanation:

variable overhead efficiency variance = standard overhead rate x (actual hours - standard hours)

standard variable overhead rate = $150,000 / 30,000 = $5actual hours 15,000standard hours 18,000

variable overhead efficiency variance = $5 x (15,000 - 18,000) = $5 x (-3,000) = -$15,000 favorable variance

In response to the financial​ crisis, the Fed and the U.S. Treasury took all of the following policy actions except​ _______.

a. lowering tax rates on commercial bank profits
b. The Troubled Asset Relief Program

Answers

Answer: lowering tax rates on commercial bank profits

Explanation:

The financial crisis which is also widely called the global meltdown was caused as a result of the financial indutry deregulation.

The goal of TARP was to strengthen the banks, and improve market stability. Lowering tax rates on commercial bank profits wasn't part of the action used by the government.

The declaration, record, and payment dates in connection with a cash dividend of $77,000 on a corporation's common stock are October 1, November 7, and December 15.

Required:
Journalize the entries required on each date.

Answers

Answer:

Oct 1

Dr Cash Dividend $77,000

Cr Dividend Payable $77,000

Nov 7

No Entry required on the record date

Dec 15

Dr Dividend Payable $77,000

Cr Cash

Explanation:

Preparation of the Journal entries for each date

Based on the information given we were told that the cash dividend of the amount of $77,000 was a corporation's common stock are October 1, November 7, and December 15 which means that the transaction will be recorded as:

Oct 1

Dr Cash Dividend $77,000

Cr Dividend Payable $77,000

Nov 7

No Entry required on the record date

Dec 15

Dr Dividend Payable $77,000

Cr Cash

In capital rationing, alternative proposals that survive initial screening by cash payback and average rate of return methods are further analyzed using:________

Answers

Answer:

Net present value and internal rate of return

Explanation:

when making a decision between alternative projects, initial analysis is done with the cash payback and average rate of return.

Cash payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows

Average rate of return = Average net income / average book value.

this is followed by the Net present value analysis and Internal rate of return determination.

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

project with the highest positive project NPV should be chosen.

Also, a project with an IRR greater than the discount rate should be chosen. when choosing between alternative projects, the project with the highest IRR should be chosen if the IRR is greater than the discount rate.

Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $149,630 and annual net cash flows of $45,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the internal rate of return for the proposal.

Answers

Answer:

Testerman Construction Co.

Internal rate of return method in analyzing capital expenditure:

Present value of expenditure = $149,630

Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)

NPV = $0 (PV of cash outflow - PV of cash inflow)

Therefore, the IRR = 20%

Explanation:

a) Data and Calculations:

Investment cost = $149,630

Annual net cash flows = $45,000

Investment period = 6 years

Annuity of future cash flows = 3.3251

b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project.  This IRR helps the managers to determine the projects that add value and are worth undertaking.  IRR is based on assumptions.  Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used  to generate the returns, and the assumption of a constant reinvestment may which IRR makes.

Green Inc. made no adjusting entry for accrued and unpaid employee wages of $38,000 on December 31. This error would Multiple Choice Understate assets by $38,000. Overstate net income by $38,000. Understate net income by $38,000. Have no effect on net income.

Answers

Answer:

The answer is B. Overstate net income by $38,000.

Explanation:

Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.

Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.

Disturbed Corp. needs to raise $57 million to fund a new project. The company will sell shares at a price of $23.70 in a general cash offer and the company's underwriters will charge a spread of 7.5 percent. The direct flotation costs associated with the issue are $725,000 and the indirect costs are $445,000. How many shares need to be sold?

Answers

Answer: 2653438 shares

Explanation:

From the information given in the question, the following can be deduced:

The share price will be:

= $23.70 × (1 - 7.5%)

= $23.70 × (1 - 0.075)

= $23.70 × 0.925

= $21.9225

The money that will be raised will be:

= 57,000,000 + 725,000 + 445,000

= $58,170,000

The number of shares that are needed to be sold will be:

= $58,170,000/$21.9225

= 2653438 shares

Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to:

Answers

Answer:

$30 Favorable

Explanation:

Calculation for the activity variance for supplies cost in March

Using this formula

Activity variance = (Actual units - Budgeted units) * Variable cost

Where,

Actual units=856

Budgeted units=861

Variable cost=$6

Let plug in the formula

Activity variance=(856-861) * $6

Activity variance=5*$6

Activity variance=$30 Favorable

Therefore the activity variance for supplies cost in March would be closest to: $30 Favorable

Costs that are capitalized because they are expected to have future value are called product costs; costs that are expensed are called period costs. This classification is important because it affects the amount of costs expensed in the income statement and the amount of costs assigned to inventory on the balance sheet. Product costs are commonly made up of direct materials, direct labor, and overhead. Period costs include selling and administrative expenses.

A service company has which of the following costs

a. Direct Material
b. Overhead Costs
c. Product Costs
d. Expensed in the period incurred

Answers

Answer:

b. Overhead Costs

d. Expensed in the period incurred

Explanation:

-Direct material refers to the cost of the material used to manufacture a product.

-Overhead costs are the costs related to the operation of the business and they can't be assigned to a good or service.

-Product Costs are the costs to manufacture a product.

-Expensed in the period incurred are the period costs which are costs not related to the production of a good.

According to these definitions, a service company has the following costs: overhead costs and expensed in the period incurred because these are costs that are not related to the creation of a product.

On the other hand, the other options direct material and product costs are not right because these costs are directly related to products.

Whispering Corporation began 2017 with a $94,200 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $352,400, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $505,400, the tax rate for all years is 40%, and taxable income for 2017 is $388,500.
Part 1
Compute income taxes payable for 2017.
Income taxes payable
$
Part 2
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit Credit
Part 3
Prepare the income tax expense section of the income statement for 2017 beginning with the line "Income before income taxes.". (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answers

Answer:

1. Income tax payable = Taxable income for 2017 * Income tax rate

Income tax payable = $388,500 * 40%

Income tax payable = $155,400

2.                          Journal Entry

Account Titles and Explanations      Debit         Credit

Income tax expense                         $202,160

($505,400*40%)  

Deferred tax liability                                              $46,760

($202,160-$155,400)  

Income tax payable                                               $155,400

($388,500*40%)

3.                   Income Statement (Partial)

                   For the Year Ended Dec 31, 2017

Income before income taxes            $505,400

Income tax expense

Current           $155,400  

Deferred         $46,760                      $202,160

Net Income                                         $303,240

Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $108,000 and semiannual interest payments.

Semiannual Period-End Unamortized Premium Carrying Value
(0) January 1, issuance $8,271 $116,271
(1) June 30, first payment 7,444 115,444
(2) December 31, second payment 6,617 114,617
Use the above straight-line bond amortization table and prepare journal entries for the following:

a) The issuance of bonds on January 1.

b) The first interest payment on June 30.

c) The second interest payment on December 31.

Answers

Answer:

See the journal entries and explanation below.

Explanation:

The journal entries will look as follows

a) The issuance of bonds on January 1.

Date         Accounts title                              Debit ($)         Credit ($)  

Jan. 1        Cash                                              111,671

                   Premium on Bonds Payable                                8,271

                   Bonds Payable (w.1)                                        108,000

          (To record issuance of bonds.)                                                  

b) The first interest payment on June 30.

Date         Accounts title                                 Debit ($)         Credit ($)  

Jun. 30    Interest Expense (w.4)                       3,493  

                 Premium on Bonds Payable (w.2)      827

                 Cash (w.3)                                                                 4,320

               (To record first interest payment)                                              

c) The second interest payment on December 31.

Date         Accounts title                                 Debit ($)         Credit ($)  

Dec. 31    Interest Expense (w.4)                       3,493  

                 Premium on Bonds Payable (w.5)      827

                 Cash (w.6)                                                                 4,320

               (To record second interest payment)                                              

Workings:

w.1: Bond payable = Cash - Premium on Bonds Payable = $111,671 - $8,271

w.2: Premium on Bonds Payable = January 1 Unamortized Premium - June 30 Unamortized Premium = $8,271 - $7,444 = $827

w.3: Cash = $108,000 * 8% * (6 / 12) = $4,320

w.4: Interest expense = w.3 - w.2 = $4,320 - $827 = $3.493

w.5: Premium on Bonds Payable = June 30 1 Unamortized Premium - December 31 Unamortized Premium = $7,444 - $6,617 = $827

w.6: Cash = $108,000 * 8% * (6 / 12) = $4,320

w.7: Interest expense = w.6 - w.5 = $4,320 - $827 = $3,493

The production sector would NOT include Group of answer choices a Florida orange grove a California wine grower a meat packing plant

Answers

Answer: Meat packing plant

Explanation:

The options to the question are:

A. California wine grower

B. meat packing plant

C. horticultural nursery

D. Florida orange grove

E. none of the above

Of all the options given in the question, the correct answer is meat packing plant. It should be noted that the meat packaging plant will not be part of the production sector due to the fact that no productive activities are taking place, it only involves in services.

According to the FTC's historical guidelines for mergers, would the FTC approve a merger between two firms that would result in an HHI of 1,025 after the merger?A: Maybe. The FTC would scrutinize the merger and make a case-by-case decision.B: Yes, the FTC would ignore the merger and allow it to go through.C: No, the FTC would probably challenge the merger.2. Instead of defining a market and counting up total sales, what are antitrust regulators looking at today when determining whether to allow a merger or not?A: HHIB: industry competitionC: four-firm concentration ratioD: innovation3. Price cap regulations are a market regulatory device governments utilize, where the top price a firm can charge is locked in for a defined period of time. All of the following statements are true, except:_________.A: The government sets a price by looking at the firm's average costs and then adding a normal rate of profit.B: The firm can make high profits by producing a higher quantity than expected.C: The firm can make high profits by producing at lower costs.D: The government sets a price level for a few years.

Answers

Answer and Explanation:

1. A: Maybe. The FTC would scrutinize the merger and make a case-by-case decision

the ftc would historically make a case-by-case decision for HHI( Herfindahl-Hirschman Index ) between 1000 and 1800 but nowadays antitrust enforcement agencies dontvdeoend much on ratios such as HHI in measuring competition but would rather perform in depth analysis of each industry under study

2.industry competition

Antitrust regulators look out for the level of competition in an industry in allowing mergers and rely more on case-by-case analysis in making it's evaluations

3.True

price cap regulations are used by government to control prices based on inflation levels or price cap index .price cap regulations set a cap on the price that can be charged by businesses for a product. They are set for a defined period of time.

4.A: The government sets a price by looking at the firm's average costs and then adding a normal rate of profit.

Government doesn't consider costs and normal rate of profit to the firm in setting price ceiling or floor for products

Domingo Corporation uses the weighted...
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,300 units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $7,400 50%
Conversion costs $3,600 20%
A total of 8,700 units were started and 8,000 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs $160,600
Conversion costs $122,300
The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. How many units are in ending work in process inventory in the first processing department at the end of the month?
a. 700.
b. 1,700.
c. 6.400.
d. 2,700.

Answers

Answer:

3,000 units

Explanation:

Calculation for How many units are in ending work in process inventory

Using this formula

Ending work in process units =Beginning work in process units + Units started into production - Transferred to the second processing department units

Let plug in the formula

Ending work in process units= 2,300 units + 8,700 units - 8,000 units

Ending work in process units= 3,000 units

Therefore 3,000 units are in the ending work in process inventory in the first processing department at the end of the month.

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $4.3 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $11.8 million to build, and the site requires $700,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Enter your answer as a positive value in dollars, not millions of dollars, e.g., 1,234,567.)

Answers

Answer:

$17.1 million

Explanation:

The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project can be calculated as follows

DATA

Fair value of land = 4.6 million

Cost to build a plant = 11.8 million

Grading cost = 0.7 million

Solution

Initial investment = Fair value of land + Cost to build a plant + Grading cost

Initial investment = $4.6 million + $11.8 million + $0.7 million

Initial investment = $17.1 million

Assuming that the firm is maximizing profits, the marginal cost of the last unit produced equals:________

Price Quantity Total cost
10 10 80
9 20 100
8 30 130
7 40 170
6 50 230
5 60 300
4 70 380


a. $4
b. $40
c. $5
d. $50
e. $6

Answers

Answer: b. $40

Explanation:

A firm maximises its profits where Marginal Revenue equals marginal cost.

Marginal revenue is the additional revenue gained by selling one more unit of production.

At 40 units, the marginal revenue is equal to;

= Total revenue at 40 units - total revenue at 30 units

= ( 7 * 40) - ( 8 * 30)

= 280 - 240

= $40

At 40 units the marginal cost is;

= total cost at 40 units - total cost at 30 units

= 170 - 130

= $40

MR=MC which is $40.

On February 3, 1969, New York lawyer and businessman _______________ was appointed the Beatles' business manager, as John was impressed by what the man had done financially for the Rolling Stones.

Answers

Answer:

Allen B. Klein

Explanation:

Allen B. Klein was an American businessman that became a powerful person in the music industry because he managed several artists and became well known for helping them increase their income and he worked with Sam Cooked, the Rolling Stones and The Beatles who hired in him in 1969 as their manager. According to this, the answer is that on February 3, 1969, New York lawyer and businessman Allen B. Klein was appointed the Beatles' business manager, as John was impressed by what the man had done financially for the Rolling Stones.

Suppose you have ​$ cash today and you can invest it to become worth ​$ in years. What is the present purchasing power equivalent of this ​$ when the average inflation rate over the first years is ​% per​ year, and over the last years it will be ​% per​ year?

Answers

Answer: $900,599.04

Explanation:

The present purchasing power equivalent is the present worth of this investment.

The investment will earn 5% for the first 7 years and then 9% for the next 10.

As there are different rates, the present worth calculation will have to reflect that.

At the end of the first 7 years, the present worth of the invested amount given 10 more years of investing at 9%. The Present worth is;

= 3,000,000(Present worth factor, 9%, 10 years)

= 3,000,000 * 0.4224

= $1,267,200

Then what is the Present worth of $1,267,200 in the current year given that it will be invested for 7 years at 5% to get to $1,267,200.

= 1,267,200 (Present worth factor, 5%, 7 years)

= 1,267,200 * 0.7107

= $900,599.04

Company X's current assets increased by $40 million from 2007 to 2008, while the company's current liabilities increased by $25 million over the same period. The cash impact of the change in working capital was:

a. A decrease of $15 million
b. An increase of $15 million
c. An increase of $40 million
d. An increase of $25 million

Answers

Answer:

b. An increase of $15 million

Explanation:

The computation of the cash impact of the change in working capital is shown below:

As we know that

Working capital = Current assets - current liabilities

So, the change in working capital is

= Increase in current assets  - increased in current liabilities

= $40 million - $25 million

= $15 million

Hence, the b option is correct

When Production decreases what is a very likely possibility? a hire new workers b expand production c purchase new equipment d downsizing

Answers

The correct answer is D. Downsizing

Explanation:

In businesses, the term "downsizing" is used to describe a reduction in the number of workers or the total labor force. This often means non-essential workers are fired or even complete departments are eliminated. Moreover, this is likely to occur if the business expenses are higher than its profits or if the production decreases because in both situations fewer workers are needed to eliminate unnecessary expenses. In this context, if production decreases it is likely downsizing occurs.

If the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to 25.

a. True
b. False

Answers

Answer: True

Explanation:

The range of feasibility is used to measure values that are on the right-hand-side(objective function) that won't alter dual prices.

When the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to (20 + 5) = 25

Therefore, the option is true

Other Questions
normal population has a mean of 63 and a standard deviation of 13. You select a random sample of 25. Compute the probability that the sample mean is: (Round your z values to 2 decimal places and final answers to 4 decimal places): Greater than 65. e) Education should be compulsory and free for allCitizens why ? Give practical reasons for yourargument. Your grandfather has great faith in bonds and has heard about some "high yield bonds" that are available. He has asked you for your opinion. What advice will you give him? A new fast-food firm predicts that the number of franchises for its products will grow at the rate dn dt = 6 t + 1 where t is the number of years, 0 t 15. John used 1 3/4 kg os salt to melt the ice on the sidewalk. He then used another 3 4/5 kg on the driveway. How much salt did he use in all? PLEASE SHOW YOUR WORK I WILL MARK YOU BRAINIEST AND PLEASE EXPLAIN HOW YOU GOT YOUR WORK. What is systems thinking? identifying the different parts of a system describing how the parts of a system work together analyzing how things outside a system influence the things in that system thinking about how things influence each other within a system PLS HELP ME Define Derived Quantities ? __________________ numbers are used to say the order in which people, things, or events show. what are sex hormones?why are they named so? state their function. Making inferences and drawing conclusions help us with all of the following except __________. A. making connections B. creating new words C. understanding cause and effect D. learning new vocabulary A 28.0 kg child plays on a swing having support ropes that are 2.30 m long. A friend pulls her back until the ropes are 45.0 from the vertical and releases her from rest.A: What is the potential energy for the child just as she is released, compared with the potential energy at the bottom of the swing?B: How fast will she be moving at the bottom of the swing?C: How much work does the tension in the ropes do as the child swings from the initial position to the bottom? o prepare vegetables for finishing by grilling, sauting, pan frying, deep frying, or stewing, you should _______ them to cook them to partial doneness What is the separation in meters between two slits for which 594 nm orange light has its first maximum at an angle of 32.8? What does the shaded area on the map show? India after World War II Bangladesh after World War II the colony of India in the 1800s the Mughal Empire in the 1700s In a task assignment situation, in how many different ways can five jobs be assigned to five machines if each job must be assigned to each machine and each machine must be assigned one job? A. 5 B. 1 C. 3,125 D. 120 E. 25 Translate and solve: 54 greater than x is greater than 216 Triangle P Q R is shown. The length of P Q is 17, the length of Q R is 15, and the length of P R is 14. Law of cosines: a2 = b2 + c2 2bccos(A) What is the measure of AngleP to the nearest whole degree? 35 52 57 72 the expansion of islam resulted in european expansion in which of the following ways A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability. The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million. However, there is a 25 percent chance the recession will not end in six months, resulting in a $5 million loss. The expected profits over the next six months are: Question #1: Select the correct answer. Which one is a run-on sentence? A. A camel can go without water for days and days, he stores water in the hump on his back. B. Since the backroom was vacant, Jim used it as a studio. C. Because John assisted his neighbors, they were able to paint his house twice as fast. D. If that old, half-burned house were reconstructed, someone might buy it and move into it.