E Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 54,000 units per month is as follows: Per Unit Direct materials $ 49.60 Direct labor $ 9.50 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 20.10 Variable selling & administrative expense $ 4.60 Fixed selling & administrative expense $ 22.00 The normal selling price of the product is $114.10 per unit. An order has been received from an overseas customer for 3,400 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.60 less per unit on this order than on normal sales. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $90.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:

Answers

Answer 1

Answer: $91120

Explanation:

The The monthly financial advantage (disadvantage) for the company will be calculated thus:

Incremental revenue = (3400 × $90.40) = $307360

Less: Incremental Cost

Direct material (3400 × $49.60) = $168640

Direct labor (3400 × $9.5) = $32300

Variable manufacturing overhead = (3400 × $2.5) = $8500

Variable selling & administrative expense = (3400 × $2) = $6800

Total incremental Cost = $216240

Therefore, the monthly financial advantage will be:

= $$307360 - $216240

= $91120


Related Questions

Timken roller bearing is a manufacturer of seamless tubes for drill bit collars. Company is planning to add larger capacity robotic arms to one of its assembly lines 3 years from now. If it is done now, the cost of the equipment is $2.4 million. Assume that the company's real MARR is 15% per year and the inflation rate is 2.8% per year. Determine the equivalent amount the company can spend 3 years from now in then-current dollars.
a. $4,943,200.
b. $2,943,200.
c. $3,943,200.
d. unknown.

Answers

Answer:

the  equivalent amount the company can spend 3 years from now in then-current dollars is $3,943,200

Explanation:

The computation of the equivalent amount the company can spend 3 years from now in then-current dollars is shown below:

= $2,400,000 × (1 + 17.8%)^3

= $2,400,000 × 1.63942

= $3,943,200

Hence, the  equivalent amount the company can spend 3 years from now in then-current dollars is $3,943,200

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are indirect materials, $50,000; Indirect labor, $23,000; factory rent $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cahs in April.

Costs of the three jobs worked on in April follow:

Job 307 Job 307 Job 308
Balances on March 31
Direct materials $29,000 $35,000
Direct labor 20,000 18,000
Applied overhead 10,000 9,000
Costs during April
Direct materials 135,000 220,000 $100,000
Direct labor 85,000 150,000 105,000
Applied overhead
Status on April 30 Finished (sold) Finished (unsold) In process

a. Materials purchases on credit
b. Direct materials used in production
c. Direct labor paid and assigned to Factory Overhead
d. Indirect labor paid and assigned to Factory Overhead
e. Overhead costs applied to Work In Process Inventory
f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash)
g. Transfer of Jobs 306 and 307 to Finished Goods Inventory
h. Cost of goods sold for Job 306
i. Revenue from the sale of Job 306
j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account, (the amount is not material).

Required:
Prepare journal entries for the month of April to record the above transactions.

Answers

Answer:

Marcelino Co.

Journal Entries:

Debit Raw materials $500,000

Credit Accounts Payable $500,000

To record the purchase of raw materials on credit.

Debit Factory payroll $363,000

Credit Cash $363,000

To record payment for factory payroll.

Debit Work in Process:

Job 307 $135,000

Job 307 $220,000  

Job 308  $100,000

Credit Raw materials $455,000

To record direct materials used in production

Debit Work in Process:

Job 307 $42,500

Job 307 $75,000  

Job 308  $52,500

Credit Factory overhead $170,000

To record overhead applied.

Debit Factory overhead  $175,000

Credit Raw materials $50,000

          Factory payroll $23,000

          Factory rent $32,000

          Factory utilities $19,000

          Factory equipment depreciation $51,000

To record actual factory overhead costs.

Debit Finished Goods Inventory $828,500

Credit Work in Process:

Job 306 $321,500

Job 307 $507,000

To record the cost of finished goods transferred.

Debit Cost of goods sold $321,500

Credit Finished goods inventory $321,500

To record the cost of goods sold.

Debit Cash $635,000

Credit Sales Revenue $635,000

To record the receipt of cash for sales.

Debit Cost of Goods Sold $5,000

Credit Factory overhead $5,000

To record underapplied overhead.

Explanation:

a) Data and Calculations:

Raw materials inventory, March 31 = $80,000

Raw materials $500,000 Accounts Payable $500,000

Factory payroll $363,000 Cash $363,000

Overhead costs incurred in April :

Indirect materials  $50,000 Raw materials $50,000

Indirect labor $23,000 Factory payroll $23,000

Factory rent $32,000 Cash $32,000

Factory utilities $19,000 Cash $19,000

Factory equipment depreciation $51,000 Accumulated depreciation $51,000

Total overhead incurred = $175,000

Predetermined overhead rate = 50% of direct labor cost

Sale of Job 306 for cash = $635,000

                                 Job 306          Job 307          Job 308             Total

Balances on March 31

Direct materials       $29,000          $35,000                                $64,000

Direct labor                20,000             18,000                                   38,000

Applied overhead      10,000              9,000                                    19,000

Costs during April

Direct materials       135,000          220,000          $100,000    $455,000

Direct labor               85,000           150,000            105,000       340,000

Applied overhead    42,500             75,000              52,500       170,000

Total costs            $321,500        $507,000          $257,500 $1,086,000

Status on April 30 Finished (sold) Finished (unsold) In process

1) Please give an example of a market that comes close to being considered perfectly competitive.2) What does it mean when firms in a perfectly competitive market earn $0 in economic profits?

Answers

Answer:

the agricultural market e.g market for oranges

2. A firm earns zero economic profit when accounting profit equals implicit cost.

it means that they only earn accounting profit

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

In an agricultural market e.g. market for oranges, the goods are identical and the prices are the same.

A firm earns economic profit when accounting profit equals implicit cost. So, it only earns accounting profit

The demand for cigarettes is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on

Answers

Answer:

cigarette consumers.

Explanation:

Inelastic demand can be explained as a demand whereby the demand by buyers for a particular product ha little change compare to the change in price. Let say Athere is an increase in price by 20% , then demand for that product only experience decreases by only 1%, then we can say that demand is inelastic. For instance, when The demand for cigarettes is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on cigarette consumers.

The management of Neptune Inc. creates a definite plan of action that will surely create profits for the company. It allocates and sectionalizes its machinery and personnel. The main office is moved to a prime location that helps attract customers and facilitates competitive development. This plan of action helps Neptune Inc. retain its competitive advantage and has also grow as a company.
Which of the following terms does this scenario best illustrate?
a. Strategic tools
b. Functional strategy
c. Business unit strategy
d. Strategic management process

Answers

Answer:

d. Strategic management process

Explanation:

Strategic management process is the continuous improvement process and appraisals aimed at making a business more effective than its competitors.

It covers planning activities towards achievement of an organisations' present and future objectives.

This is exemplified by Neptune Inc. when it allocated and sectionalized its machinery and personnel, the main office was moved to a prime location that helps attract customers and facilitates competitive development.

The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:
Maximum capacity with present facilities 11,000 units
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120.00
Sales price per unit $ 186.00
Required:
The number of units of CK74 that Ruby must sell to break- even is:________.
a. 12,900.
b. 4,577.
c. 7,095.
d. 6,050.

Answers

Answer:

Break-even point in units= 12,900

Explanation:

Giving the following information:

Total fixed cost (per period) $ 851,400

Variable cost per unit $ 120.00

Sales price per unit $ 186.00

To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 851,400 / (186 - 120)

Break-even point in units= 12,900

Answer: 12900

Explanation:

From the information given, we'll first calculate the contribution per unit which will be:

= Selling price per unit - variable cost per unit

= $186 - $120

= $ 66

Then, the break even sales in units will be: = Fixed cost/Contribution per unit

= 851,400 / 66

= 12,900

Therefore, the breakeven is 12900

The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed; thus, they must be broken into their fixed and variable elements so that the cost behavior of the power usage activity can be properly described. Machine hours have been selected as the activity driver for power costs. The following data for the past eight quarters have been collected:

Quarter Machine Hours Power Cost
1 20,000 $26,000
2 25,000 $38,000
3 30,000 $42,500
4 22,000 $37,000
5 21,000 $34,000
6 18,000 $29,000
7 24,000 $36,000
8 28,000 $40,000

Using the high and low points (i.e., the high-low method), compute a power cost formula. (Note: Round variable rate to three decimal places.)

Total power cost = $_______ + ( $________ x Number of machine hours )

Answers

Answer:

Total power cost= 1,250 + 1.375 * number of machine hours

Explanation:

Giving the following information:

Quarter Machine Hours Power Cost

1 20,000 $26,000

2 25,000 $38,000

3 30,000 $42,500

4 22,000 $37,000

5 21,000 $34,000

6 18,000 $29,000

7 24,000 $36,000

8 28,000 $40,000

To calculate the variable and fixed costs, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (42,500 - 26,000) - (30,000 - 18,000)

Variable cost per unit= $1.375

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 42,500 - (1.375*30,000)

Fixed costs= 1,250

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 26,000 - (1.375*18,000)

Fixed costs= 1,250

Given a real rate of interest of 3.2%, an expected inflation premium of 5.1%, and risk premiums for investments A and B of 7.4% and 8.9% respectively, find the following: a. The risk-free rate of return, rf b. The required returns for investments A and B

Answers

Answer:

a. Risk-free rate of return:

= Real rate of return + Inflation premium

= 3.2% + 5.1%

= 8.3%

b. Required return for investment A:

= Risk free rate of return + Risk premium

= 8.3% + 7.4%

= 15.7%

Required return for investment B

= 8.3% + 8.9%

= 17.2%

A multidomestic corporate-level strategy has ____ need for global integration and ____ need for local market responsiveness. Group of answer choices

Answers

Answer:

low; high

Explanation:

In the case of the multidomestic corporate level strategy there is less need for the integration that occurred globally and at the same time there is high requirement for the response made to local market

So as per the given situation, the blanks could be filled with the low and high options

ANd, the same is to be considered

Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company's analysis, the product will generate $200,000 from the first year till perpetuity. According to this, the payback period is ________.
a. 10 years.
b. 6 years.
c. 3 months.
d. 4 years.

Answers

Answer:

d. 4 years.

Explanation:

The payback period is the length of time that it takes for the future cash flows to equal the amount invested in a project. It takes 4 years to get $800,000 for  Natal Technologies product.

“Every individual employee in an organization plays a role in controlling work activities.” Do you agree with this statement, or do you think control is something that only managers are responsible for? Explain.

Answers

umm...

Explanation:

Yes, Every individual employee plays a role in controlling the quality of goods and services produced by their company, and not just the managers. This is true particularly in organizations where employees have been empowered by management.

Based on the statement that “Every individual employee in an organization plays a role in controlling work activities.”, my thoughts on it are:

I agree with the statement

According to the given question, we are asked to share our thoughts about the given statement which says that “Every individual employee in an organization plays a role in controlling work activities.

As a result of this, we can see that a work activity are anything which is done during work hours to produce a good, make sales or things which serve the objective of the company.

With this in mind, while it is the manager's job to oversee the affairs of the workers, the workers also have a responsibility to play their role properly so that the company would function effectively.

Read more here:

https://brainly.com/question/17551436

SCI just paid a dividend ( D0 ) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return ( rs ) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is per share. Which of the following statements is true about the constant growth model?
The constant growth model can be used if a stock’s expected constant growth rate is less than its required return.
The constant growth model can be used if a stock’s expected constant growth rate is more than its required return. Use the constant growth model to calculate the appropriate values to complete the following statements about Super Carpeting Inc.:
• If SCI’s stock is in equilibrium, the current expected dividend yield on the stock will be per share.
• SCI’s expected stock price one year from today will be per share.
• If SCI’s stock is in equilibrium, the current expected capital gains yield on SCI’s stock will be .

Answers

Answer:

a.  

Last Dividend, D0 = $3.12

Growth Rate, g = 6.50%

Required Return, rs = 16.25%  

[tex]D1 = D0 \times(1 + g)\\D1 = $3.12\times1.065\\[/tex]

D1 =$ 3.3228  

Intrinsic Value, P0 = D1 / (rs - g)

Intrinsic Value, P0 = $3.3228 / (0.1625 - 0.0650)

Intrinsic Value, P0 = $34.08

b.  

The constant growth model can be used if a stock’s expected constant growth rate is less than its required return.

c.  

Dividend Yield = D1 / P0

Dividend Yield = $3.3228 / $34.08

Dividend Yield = 0.0975 or 9.75%

d.  

Price in 1 year, P1 = P0 * (1 + g)

Price in 1 year, P1 = $34.08 * 1.065

Price in 1 year, P1 = $36.30

e.  

Capital Gain Yield = (P1 - P0) / P0

Capital Gain Yield = ($36.30 - $34.08) / $34.08

Capital Gain Yield = 0.0650 or 6.50%

On December 1, 2020, Junction Company issued at 104, 800 of its 9%, 10-year, $1,000 par value, nonconvertible bonds with detachable stock purchase warrants. Each bond carried two detachable warrants; each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the bonds without the warrants. Interest is payable on December 1 and June 1. Provide the entry to record issuance of the bonds by Junction Company on December 1, 2020.

Answers

Answer:

Junction Company

Journal Entry

December 1, 2020:

Debit Cash $832,000

Credit Bonds Payable $800,000

Credit Bonds Premium $27,038

Credit Warrants Liability $4,962

To record the issuance of the bonds.

Explanation:

a) Data and Calculations:

December 1, 2020:

Face value of nonconvertible bonds with detachable stock purchase warrants = $800,000

Issue price of bonds = $832,000 (1.04 * 800 * $1,000)

Number of bonds issue = 800

Par value per bond = $1,000

Maturity period = 10 years

Coupon interest rate = 10%

Option price of each warrant = $15 per common stock share

Market price of the option = $3

Value of warrant = $4,800 ($3 * 800 * 2)

Allocation of bond price:

Bonds = $827,038 ($800,000/$804,800 * $832,000)

Warrants = $4,962 ($4,800/$804,800 * $832,000)

The total market value of the equity of ITM is $6 million, and the total value of its debt is $4
million. The treasurer estimates that the beta of the stock currently is 1.2 and that the expected
risk premium on the market is 10%. The Treasury bill rate is 4%, and investors believe that
ITM’s debt is essentially free of default risk.
a. What is the required rate of return on ITM stock?
b. Estimate the WACC assuming a tax rate of 40%.
c. Estimate the discount rate for an expansion of the company’s present business.
d. Suppose the company wants to diversify into the manufacture of rose-colored glasses.The beta
of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on
ITM’s new venture? (Assume that the risky project will not enable the firm to issue any
additional debt.)

Answers

Answer:

a. The required rate of return on Okefenokee stock is 16%.

b. WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. The required rate of return on Okefenokee's new venture is Ke = 18 %.

Explanation:

Here the given is,

E = $6 million, D = $4 million, Beta = 1.2,

Rmp = the expected risk premium on the market =10%.

Rf = The Treasury bill rate = 4%

a. The required rate of return on Okefenokee stock,

[tex]Ke = Rf + Beta \times Rmp = 4 + 1.2 \times 10 = 16%[/tex]%.

b. Tax rate, T = 40%

The proportion of debt =[tex]Wd = D / (D + E) = 4 / (6 + 4) = 0.4[/tex]

Proportion of equity, We = 1 - Wd = 1 - 0.4 = 0.6

Cost of debt, Kd = Risk-free rate as debt is free of default = 4%

[tex]WACC = Wd \times Kd \times (1 - T) + We\times Ke\\\\ = 0.4 \times4\times (1 - 40) + 0.6 \times 16\\\\ = 10.56%[/tex]

WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. Suppose the company wants to diversify into the manufacture of rose-colored glasses. The beta of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on Okefenokee's new venture? (You should assume that the risky project will not enable the firm to issue an additional debt)

[tex]Ke = Rf + Beta \times Rmp\\\\Ke = 4 + 1.4 \times 10 = 18%[/tex]

Ke = 18 %.

Camden Biotechnology began operations in September 2013. The following selected transactions relate to liabilities of the company for September 2013 through March 2014. Camden's fiscal year ends on December 31.Its financial statements are issued in April.2013a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $15,000,000 at the bank's prime rate (10.5% at the time). The company will pay no commitment fees.b. On October 1, borrowed $12 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 10% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.c. Received $2,600 of refundable deposits in December for reusable containers used to transport and store chemical-based products.d. For the September-December period, sales on account totaled $4,100,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)e. Recorded the adjusting entry for accrued interest.2014f. In February, issued $10 million of 10-year bonds at face value and paid the bank loan on the March 1 due date.g. Half of the storage containers covered by refundable deposits were returned in March. The remaining containers are expected to be returned during the next six months.Required:1. Prepare the appropriate journal entries for these transactions.2. Prepare the current and long-term liability sections of the December 31, 2013, balance sheet. Trade accounts payable on that date were $252,000.

Answers

Answer:

Cash (Dr.) $12,000,000

Short term notes payable (Cr.) $12,000,000

Cash (Dr.) $2,600

Liability of refundable (Cr.) $2,600

Interest Expense (Dr.) $250,000

Interest Payable (Cr.) $250,000

Accounts receivable (Dr.) $4,100,000

Sales Revenue (Cr.) $3,977,000

Sales Tax Payable (Cr.) $123,000

Cash (Dr.) $10,000,000

Bond Payable (Cr.) $10,000,000

Explanation:

Liability Schedule 2013,

Accounts Payable $252,000

Current Portion of notes payable $2,000,000

Interest Payable $250,000

Sales tax Payable $123,000

Liability for refundable deposit $2,600

Total Current Liability $2,627,600

Sheridan, Inc., has issued a three-year bond that pays a coupon rate of 7.0 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.6 percent, what is the market value of the bond

Answers

Answer:

$1,066.54

Explanation:

Calculation to determine the market value of the bond

Using this formula

Market value of bond = Coupon payment per period * [1-(1+i)^-n]/i + par value/(1+i)^n

Where,

i = interest rate per period

n = number of periods

Let plug in the formula

Market value of bond = 7%/2 * [1-(1+0.046/2)^-3*2]/(0.046/2) + 1000/(1+0.046/2)^3.2

Market value of bond = 3.5% * [1-(1+0.023)^-6]/(0.023) + 1000/(1+0.023)^6

Market value of bond=$1,066.54

Therefore the market value of the bond will be $1,066.54

Mo will receive a perpetuity of $27,000 per year forever, while Curly will receive the same annual payment for the next 40 years. If the interest rate is 7.1 percent, how much more are Mo's payments worth

Answers

Answer:

380281.69-360900.85=19380.84

Explanation:

Perpetuity present value, PV=A/rate

Ordinary Annuity present value, PV= A[(1-(1+7.1%)^40)/7.1%)]

A fixed coupon bond with 10 years left until maturity and a coupon that is paid semi-annually is currently trading at a yield of 6%. If the price of the bond is $1,223.16, then the coupon rate is ____%. Par value is $1,000.

Answers

Answer:

9%

Explanation:

FV = 1000

No of compounding period = 2

No of years = 10

Nper = 20

Yield to maturity = 6%/2 = 3%

PV = 1223.16

Coupon payment = PMT(Rate, Nper, Pv, Fv)

Coupon payment = $45

Coupon rate = Coupon payment * Compounding per year / FV

Coupon rate = $45 * 2 / 1000

Coupon rate = 0.09

Coupon rate = 9%

Marquis Company uses a weighted-average perpetual inventory system.
August 2 10 units were purchased at $12 per unit.
August 18 15 units were purchased at $14 per unit.
August 29 12 units were sold.
What is the amount of the cost of goods sold for this sale?
a. $121.38.b. $106.00.c. $160.00.

Answers

Answer:

The correct answer is "$136.44"

Explanation:

According to the question,

Total units will be:

= [tex]10 \ unit+15 \ unit[/tex]

= [tex]25 \ unit[/tex]

Average cost will be:

= [tex]\frac{[(10\times 12)+(15\times 14)]}{29}[/tex]

= [tex]\frac{120+210}{29}[/tex]

= [tex]\frac{330}{29}[/tex]

= [tex]11.38[/tex] ($)

hence,

The cost of sale will be:

= [tex]Units \ sold\times Average \ cost[/tex]

= [tex]12\times 11.38[/tex]

= [tex]136.44[/tex] ($)

The focus on establishing relationships with all customers has given way to a more targeted effort to seek higher-value customers.
A. True
B. False

Answers

it’s true the more comfortable you make the customer feel the better they feel coming to the place you are

Health Scan, Inc. paid $50,000 for X-ray equipment four years ago. The equipment was expected to have a useful life of 10 years from the date of acquisition with annual operating costs of $35,000. Technological advances have made the machine purchased four years ago obsolete with a zero salvage value. An improved X-ray device incorporating the new technology is available at an initial cost of $43,000 and annual operating costs of $23,000. The new machine is expected to last only six years before it, too, is obsolete. Asked to analyze the financial aspects of replacing the obsolete but still functional machine, Health Scan's accountant prepared the following analysis. After looking over these numbers, the Center's manager rejected the proposal.
Six-year savings [($35,000 − $23,000) × 6] $72,000
Cost of new machine (43,000)
Undepreciated cost of old machine (30,000)
Advantage (disadvantage) of replacement $(1,000)
Calculate the net benefit (cost) of purchasing the new machine.

Answers

the cost would be $42000 off and the mail

DEFINE visible trade and invisible trade​

Answers

Answer:

visible trade in economics, exchange of physically tangible goods between country involving import and export it is distinguished from invisible trade

Coronado Industries constructed a building at a cost of $30150000. Weighted-average accumulated expenditures were $12500000, actual interest was $1230000, and avoidable interest was $604000. If the salvage value is $2390000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is

Answers

Answer:

$709,100

Explanation:

Cost of the building = $30150000

Average accumulated expenditures = $12500000

Actual interest = $1230000

Avoidable interest =  $604000

Salvage value = $2390000

Useful life = 40 years

Depreciation expense for the first full year:

= ((Cost of the building + Avoidable interest) - Salvage value) / Useful life

= [($30150000 + $604000) - $2390000] / 40

= [$30754000 - $2390000] / 40

= $28364000 / 40

= $709,100

So, the depreciation expense for the first full year using the straight-line method is $709,100.

Read the following descriptions and identify the type of risk or term being described:

a. This type of risk relates to fluctuations in exchange rates.
b. This type of risk is inherent in a firmâs operations. A standard measure of the risk per unit of return. This can be used to reduce the stand-alone risk of an investment by combining it with other investments in a portfolio.
c. A standard measure of the risk per unit of return
d. This type of risk relates to fluctuations in exchange rates

Answers

Answer:

Foreign exchange risk

Explanation:

These are the risks that an international financial transaction could accrue because of fluctuations in the currency.

A standard measure of the risk per unit of return and this type of risk relates to fluctuations in exchange rates.

Therefore, according to the following descriptions, the type of risk or term being described is Foreign exchange risk.

Backus Inc. makes and sells many consumer products. The firm’s average contribution margin ratio is 26%. Management is considering adding a new product that will require an additional $12,000 per month of fixed expenses and will have variable expenses of $9 per unit.Required:a. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to 25%. (Round your answer to 2 decimal places.)b. Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly operating income by $7,500. (Do not round intermediate calculations.)

Answers

Answer and Explanation:

a. The computation of the selling price is given below:

= $9 ÷ (1 - 0.25)

= $12 per unit

b. The number of units that should be sold in the case when the operating income is increased by $7,500

= ($12,000 + $7,500) ÷ ($12 - $9)

= 6,500 units

Hence, the same should be considered and relevant

Sales $ 610,000 Cost of goods sold 430,000 Salaries 111,000 ($25,200 is indirect) Utilities 17,000 ($6,000 is indirect) Depreciation 48,800 ($17,200 is indirect) Office expenses 26,200 (all indirect) 1. Prepare a departmental income statement for 2019. 2.

Answers

Answer:

Sales                                                                                          $610,000

Less: Cost of Goods sold                                                        ($430,000)

Gross Profit                                                                               $180,000

Less:

 Salaries                                                 $111,000

 Utilities                                                  $17,000

 Depreciation                                         $48,800

 Office expenses                                   $26,200                 ($203,000)

Operating loss                                                                        ($23,000)

 

Wiley Hill opened Hill's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:
1. Wiley invested $41,000 cash in the corporation.
2. Wiley contributed $116,000 of equipment to the corporation.
3. The company paid $3,600 cash to rent office space for the month.
4. The company received $32,000 cash for repair services provided during March.
5. The company paid $7,800 for salaries for the month.
6. The company provided $4,600 of services to customers on account.
7. The company paid cash of $2,100 for monthly utilities.
8. The company received $4,700 cash in advance of providing repair services to a customer.
9. The company paid $6,600 cash in dividends to Wiley. (sole shareholder)
Based on this information, the balance in Stockholders' Equity reported on the Balance Sheet at the end of March would be:
A. $178,200.
B. $173,500.
C. $165,300.
D. $6,800.
E. $29,500.

Answers

Answer: B. $173,500.

Explanation:

First calculate the Net income:

= Repair services + Services on account - Rent - Salaries - Utilities

= 32,000 + 4,600 - 3,600 - 7,800 - 2,100

= $23,100

Equity is:

= Cash investment + Equipment investment + Net income - Dividends

= 41,000 + 116,000 + 23,100 - 6,600

= $173,500

A game has a saddle point when the maximin payoff value equals the minimax payoff value. true or false

Answers

Answer:

True

Explanation:

To answer this question, I'll use the following illustration.

Minimax = <10,18,15>

Maximax = <8,4,10>

The payoff of the minimax is 10 (i.e. the smallest) and the payoff of the maximax is 10 (i.e. the largest)

Both payoffs are equal; hence, 10 is the saddle point.

Select a commercial or Public Service Announcement (PSA) that uses an emotional appeal/Pathos.
Identify the organization along with the topic/issue presented in the PSA or commercial.
Using the information in this section, how would you characterize the way it persuades listeners with emotion?
Is it effective in persuading you as a listener? Why or why not?
Include a Reference page citing the source in APA format.

Write your response in a letter form.

Answers

Answer:

An announcement that applies an emotional appeal attempts to urge an emotional reaction from the general public so on suits the message contained within the announcement.

Select a commercial or public service announcement that uses an emotional appeal.

A public service announcement that shows the aftermath of environmental pollution

Using the information in this section, how would you characterize the way it persuades listeners with emotion?

When the general public feels guilty about not having the ability to try to do something about environmental degradation, there'll be a change from the utilization of inorganic to the use of organic materials. When companies that pollute the environment are charged or closed down, and when the people resort to planting more trees.

Is it effective in persuading you as a listener?

Yes.

Why or why not?

It is very effective in persuading because the listeners put themselves in the situation and feel the effect of not taking care of the environment.

Discuss your findings with your classmates.

When people feel guilty for not taking care of the environment, they're going to take social action aimed toward correcting things. The people imagine how the planet is going to be like 50 years from now and picture how their children and grandchildren will survive. they're therefore compelled to try to do something so on contribute to environmental protection and to support the ecology.

The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $39 per unit. Variable costs for the casing are $12 per unit and fixed cost is $6 per unit. Cotwold executives would like for the Molding Division to transfer 22,000 units to the Assembly Division at a price of $33 per unit. Assume that the Molding Division has excess capacity, but the Assembly Division requires the casing to be made from a specific blend of plastics. This would raise the variable cost per unit to $37.

Answers

Answer:

1. No, the Molding Division accept the $33 transfer price proposed by management.

2. The minimum transfer price that the Molding Division will accept is $37.

3. Mutually beneficial transfer price = $38.00

Explanation:

Note: This question is not complete as the requirements are missing. The requirements are therefore provided to complete the question before answering it as follows:

Required:

1. Should the Molding Division accept the $33 transfer price proposed by management?

2. Determine the minimum transfer price that it will accept.

3. Determine the mutually beneficial transfer price so that the two divisions equally split the profits from the transfer. (Round your answer to 2 decimal places.)

The explanation of the answers is now provided as follows:

Note: Since it is assumed that the Molding Division has excess capacity, the relevant cost to consider whether or not to accept is the variable cost per unit. The fixed cost per unit is not relevant as it will be incurred whether or not the transfer is accepted.

We can now proceed as follows:

1. Should the Molding Division accept the $33 transfer price proposed by management?

No, the Molding Division accept the $33 transfer price proposed by management. This is because it is lower than the variable cost per unit of $37 for casing from a specific blend of plastics required by the Assembly Division.

2. Determine the minimum transfer price that it will accept.

The minimum transfer price that the Molding Division will accept is $37. This is equal to the variable cost per unit of $37 for casing from a specific blend of plastics required by the Assembly Division.

3. Determine the mutually beneficial transfer price so that the two divisions equally split the profits from the transfer. (Round your answer to 2 decimal places.)

This can be determined as follows:

Profit per unit from selling to external customers = Selling price per unit to external customers - Variable cost per unit for casing from a specific blend of plastics required by the Assembly Division = $39 - $37 = $2.00

Mutually beneficial transfer price = Variable cost per unit for casing from a specific blend of plastics required by the Assembly Division + (Profit per unit from selling to external customers / 2) = $37 + ($2 / 2) = $38.00

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