Answer:
The effect on net income is an increase by $6838.
Explanation:
Analysis of Accepting Special Offer
Savings :
Direct materials $8,484
Direct labor $11,413
Variable overhead $12,726
Fixed Overheads $3,000 $35,623
Total Savings
Costs :
Purchase Price ( $2.85 x 10,100 units) ($28,785)
Effect on Net Income $6,838
Note : We have considered the avoidable component of fixed costs in this calculation. Ignore common fixed costs (unavoidable) since they are irrelevant for decision making.
Conclusion :
The effect on net income is an increase by $6838.
Harry was on the phone negotiating the terms of a contract for the purchase of ball caps containing his university's logo with All Logos, LLC. They had agreed on the quantity (1200) and price ($2/cap), but could not agree on the delivery date, so Harry hung up. A few days later, Harry received an invoice in the mail, billing him for the caps, and advising that they would be shipped in 30 days' time. Under the UCC, has a contract been formed?
Answer: d. No, a contract has not been formed, since Harry has not signed a contract for the goods.
Explanation:
The Uniform Commercial Code (UCC) utilizes the Statute of Frauds which states that contracts for goods worth over $500 in value are to be signed for them to be valid.
The goods here are worth:
= 1,200 * 2
= $2,400
This contract is well worth over the $500 required for the contract to be signed which means that as Harry did not sign the contract, there is no contract.
Which of the following statements are true regarding owners' equity and ownership rights held in noncorporate entities?
a. Owners' equity for proprietorships and partnerships is usually referred to as capital.
b. No distinction is made between invested capital and retained earnings for a proprietorship or a partnership.
c. Neither proprietorships or partnerships issue stock.
Answer: A. Owners' equity for proprietorships and partnerships is usually referred to as capital.
B. No distinction is made between invested capital and retained earnings for a proprietorship or a partnership.
C. Neither proprietorships or partnerships issue stock.
Explanation:
The statements that are true regarding owners' equity and ownership rights held in noncorporate entities include:
• No distinction is made between invested capital and retained earnings for a proprietorship or a partnership.
• Neither proprietorships or partnerships issue stock.
• Owners' equity for proprietorships and partnerships is usually referred to as capital.
We should note that sole proprietorships and partnership typically don't have stockholders and shouldn't issue stock as they aren't separated from their founders.
Also, the owners' equity for proprietorships and partnerships is usually referred to as capital. We should note that for a sole proprietorship or a partnership, the equity is the owners capital account which can be seen on the balance sheet.
Based on the above explanation, all the options given above are correct.
define foreclosure economics.
Answer:
Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.
Cash Receipts Cash payments
January $528,000 $473,700
February 405,000 350,700
March 470,000 536,000
According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.
Required:
Prepare monthly cash budgets for January, February, and March.
Answer:
Ending Cash Balance as are follows:
January = $40,000
February = $67,535
March = $40,000
Also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
Explanation:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
January loan repayment = January Preliminary cash - January Interest expense - Minimum required cash balance = $94,300 - $800 - $40,000 = $53,500
February Loan repayment = January Loan Balance End of the Month = $26,500
March Additional Loan = Minimum required cash balance - March Preliminary cash balance = $40,000 - $1,535 = $38,465
From the attached excel file, we have Ending Cash Balance as follows:
January = $40,000
February = $67,535
March = $40,000
And also, Loan Balance End of Month as follows:
January = $26,500
February = $0
March = $38,465
On December 30, 2017, the Board of Directors of Blue Manufacturing, Inc. committed to a plan to discontinue the operations of its Owl division. Blue estimated that Owl's 2018 operating loss would be $750,000 and that the fair value of Owl's facilities was $450,000 less than their carrying amounts. The estimate for the 2018 operating loss turned out to be correct. Owl's 2017 operating loss was $1,000,000, and the division was actually sold for $400,000 less than its carrying amount in 2018. Blue's effective tax rate is 35%. In its 2017 income statement, what amount should Blue report as loss from discontinued operations
Answer:
$942,500
Explanation:
Calculation to determine what amount should Blue report as loss from discontinued operations
Using this formula
Loss from discontinued operations=[(Operating loss+Fair value)*Tax rate]
Let plug in the formula
Loss from discontinued operations=[($1,000,000+ $450,000)* (100% - 35% tax rate)]
Loss from discontinued operations=$1,450,0000*65%
Loss from discontinued operations= $942,500
Therefore what amount should Blue report as loss from discontinued operations is $942,500
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows: on the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Question
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:
Year cashflow
0 -100
1-10 15
0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project
Answer:
NPV= -$32.58
Explanation:
The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 5%,, Rm-15%, β- 1.30
Ke=5% + 1.30× (15-5)= 18%
The NPV = Present value of cash inflow - initial cost
= A×(1-(1+r)^(-10)/r - initial cost
A- 15, r-18%
NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58
NPV = -$32.58
In this simulation, theoretical utilization of the intensive care unit (ICU) is calculated as the flow rate of patients that arrive for service at the ICU in a given unit of time divided by the ICU’s capacity to serve customers in that same unit of time. You can think about this as demand/capacity. What is the theoretical utilization of the ICU if the mean inter-arrival time is 4 hour(s), the mean length of stay is 6 hour(s), and there are 4 beds in the ICU?
Answer:
The theoretical utilization of the ICU is:
= 0.25 or 25%
Explanation:
Inter-arrival time or flow rate of patients that arrive for service at the ICU = 4 hours
Mean length of stay = 6 hours
ICU's capacity to serve customers in 6 hours = 4*6 = 24 bed-hours
Total demand = 6 hours
Therefore, the theoretical utilization = flow rate of patients that arrive for service at the ICU in a given unit of time divided by ICU's capacity to serve customers in that same unit of time
= 6 hours/24 bed-hours
= 0.25
Carey Company owns a plot of land on which burried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Carey wishes to sell the land now. It has located two potenital buyers. Buyer A, who is willing to pay $480,000 for the land now, or Buyer B, who is willing to make 20 annual payments of $75,000 each, with the first payment to be made 5 years from today. Assuming that the appropraite rate of interest is 9%, wo whom should Carey sell the land. Show calculations.
Answer:
Carey should accept buyer A's offer
Explanation:
we need to compare the present values of both proposals:
Present value of proposal A = $480,000
Present value of proposal B:
present value of annuity in 5 years = $75,000 x 9.1285 (PVIFA, 9%, 20 periods) = $684,637.50
present value (today) = $684,637.50 / (1 + 9%)⁵ = $444,967.40
Chuck Wagon Grills, Inc., makes a single productâa handmade specialty barbecue grill that it sells for $210. Data for last yearâs operations follow:
Units in beginning inventory 0
Units produced 20,000
Units sold 19,000
Units in ending inventory 1,000
Variable costs per unit:
Direct materials $ 50
Direct labor 80
Variable manufacturing overhead 20
Variable selling and administrative 10
Total variable cost per unit $ 160
Fixed costs:
Fixed manufacturing overhead $ 700,000
Fixed selling and administrative 285,000
Total fixed costs $ 985,000
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses absorption costing. Prepare an income statement.
1. The computation of the unit product cost for one barbecue grill for Chuk Wagon Grills, Inc., using absorption costing, is $185.
2. The preparation of the income statement for Chuk Wagon Grills, Inc., using absorption costing, is as follows:
Chuk Wagon Grills, Inc.
Income StatementFor the year ended December 31,
Sales revenue $3,990,000
Cost of goods sold 3,515,000
Gross profit $475,000
Selling and Admin. Costs:
Variable 190,000
Fixed 285,000 $475,000
Net income $0
What is absorption costing?The absorption costing method captures the total cost of production, including direct and indirect costs.
The costs of selling and administration, whether variable or fixed, are treated as period costs and not assigned to products.
Data and Calculations:Selling price per unit = $210
Total sales revenue = $3,990,000 ($210 x 19,000)
Beginning inventory = 0 units
Units produced = 20,000
Units sold = 19,000
Ending inventory = 1,000
Variable costs per unit:Direct materials $ 50
Direct labor 80
Variable manufacturing overhead 20
Variable selling and administrative 10
Total variable cost per unit $ 160
Fixed costs:Fixed manufacturing overhead $ 700,000
Fixed selling and administrative 285,000
Total fixed costs $ 985,000
Absorption Costing:Direct materials $ 50
Direct labor 80
Variable manufacturing overhead 20
Total variable production cost per unit = $150
Total variable production cost = $3,000,000 ($150 x 20,000)
Fixed manufacturing overhead $ 700,000
Total manufacturing costs = $3,700,000 ($3,000,000 + $700,000)
Unit product cost = $185 ($3,700,000/20,000)
Cost of goods sold = $3,515,000 ($185 x 19,000)
Cost of ending inventory = $185,000 ($185 x 1,000)
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Exercise 5-10 (Algo) Multiproduct Break-Even Analysis [LO5-9] Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 112,000 $ 56,000 $ 168,000 Variable expenses 41,320 9,080 50,400 Contribution margin $ 70,680 $ 46,920 117,600 Fixed expenses 81,060 Net operating income $ 36,540 Required: 1. What is the overall contribution margin (CM) ratio for the company
Answer:
Contribution margin ratio= 0.7
Explanation:
Giving the following information:
Total
Sales $168,000
Variable expenses 50,400
To calculate the contribution margin ratio, we need to use the following formula:
Contribution margin ratio= (sales - total variable cost) / sales
Contribution margin ratio= (168,000 - 50,400) / 168,000
Contribution margin ratio= 0.7
Which of the following scenarios are macroeconomic in nature? Select all that apply. Group of answer choices A firm is trying to decide whether it should expand into another state. Microsoft is considering buying another firm to help it expand its social media presence. The GDP of France has fallen to an inflation adjusted low. The U.S. unemployment rate falls to 8.5% in December. The central bank of the United States increased interest rates by 0.5%. A town passes a law to make it illegal for homeowners to burn leaves.
Answer:
The GDP of France has fallen to an inflation adjusted low.
The U.S. unemployment rate falls to 8.5% in December.
The central bank of the United States increased interest rates by 0.5%.
Explanation:
Economics encompasses how people use scarce resources.
Macroeconomics is commonly defined as the act of distributing or allocating the resources of an entire economy to achieve an aggregate economic goals. participants. The three scenarios above aim to achieve economic goals. The study of how groups of individuals choose to allocate the scarce resources available to them is very important in an economy.
Vaughn Manufacturing records purchases at net amounts. On May 5 Vaughn purchased merchandise on account, $79000, terms 2/10, n/30. Vaughn returned $6700 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. The amount to be recorded as a purchase return is
Answer:
Vaughn Manufacturing
Purchases at net value ($79000-2%) $77,420.00
Less: Purchase return ($6700-2%) $6,566.00
Net payable $70,854.00
The amount to be recorded as a purchase return is $6,566. When net method is used all purchase is recorded assuming discount will be availed. Similarly when goods are returned that amount is also adjusted with discount.
Diamond Company has three product lines, A, B, and C. The following financial information is available:
Item Product Line A Product Line B Product Line C
Sales $70,000 $145,000 $32,000
Variable costs $42,000 $77,000 $20,000
Contribution margin $28,000 $68,000 $12,000
Fixed costs:
Avoidable $6,300 $19,000 $8,950
Unavoidable $5,000 $14,500 $4,000
Pre-tax operating
income $16,700 $34,500 $(-950 )
Assuming that Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, operating income for the company will likely:
a. Increase by $7,200.
b. Increase by $3,300.
c. Increase by some other amount.
,Answer:
See below
Explanation:
A B C
Sales revenue
$70,000 $145,000 $32,000
Variable costs
($42,000) ($77,000) ($20,000)
Contribution margin
$28,000 $68,000 $12,000
Fixed costs
Operating income loss
The total operating income is
= $16,700 + $34,500 + ($950)
= $50,250
Should the fixed cost of C be eliminated, the operating income/(loss) of C
= $6,000 - $950
= $5,050
This is the net increase in the total operating income
Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $55,000
Sales tax 5,000
Shipment of machine 800
Insurance on the machine for the first year 500
Installation of machine 1,600
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine.
Answer:
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
Explanation:
Preparation of the journal entry to Record the above expenditures for the new machine.
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
(62,400+500-2900)
Equipment:
Purchase price ($55,000) + Sales tax (5,000) + Shipping (800) + Installation (1,600) =
Total cost 62400
Cash:
Shipment of machine (800) + Insurance on the machine ((500)) +Installation of the machine (1,600) = 2900
Suppose that the Federal Reserve decides to decrease the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values.
Federal Reserves Assest Liabilities
Commercial Reserves Assets Liabilities
For the Federal Reserve, what are assets? What are liabilities?
a. Monetary base; Reserves
b. Monetary base; Treasury bills
c. Treasury bills; Reserves
d. Reserves; Treasury bill
e. Treasury bills; Monetary base
Answer:
1. Federal Reserves:
Assets : $300
The Fed purchased these T-bills so they will form part of the Fed's assets as they are now owned by the Fed.
Liabilities: $300
Liabilities of the Fed will increase by $300 because the banks will deposit the money they got from the purchase in the Fed.
Commercial Banks:
Treasury Bills: -$300
The Treasury bills will reduce by $300 to reflect that the Fed purchased $300 worth of T-bills from the banks.
Reserves: $300
Reserves will increase because the banks would have made money from selling the T-bills to the Fed.
2. e. Treasury bills; Monetary base
Treasury bills are assets to the Fed in this case because as explained, they own these T-bills now after purchasing them.
The monetary base however, is a liability because it represents commercial bank reserves held in the Fed. They owe the banks this money thereby making it a liability.
All of the following lead people to be credit constrained except a person's credit history. savings. collateral. banking regulations. b. The most important consequence of credit constraints on individuals is difficulty in obtaining gainful employment. an ability to retire at an earlier age. lower interest rates on bank loans. an inability to smooth consumption.
Answer:
Banking regulations Lower interest rates on bank loans.Explanation:
Being credit constrained means that one is unable to borrow because the lenders do not think the individual is capable of paying back.
A person's credit history, savings level and collateral are all very useful in determining if they have the ability to pay back debt. Banking regulations do not directly lead to a credit constraint.
Lower interests on bank loans is only given to more creditworthy entities whom the bank feels will be able to pay back. A credit constrained person is risky and will therefore draw a higher rate from banks to balance that risk.
Credit constraints mean the inability of a person to borrow money from the market. the banking regulations and lower interest rates are the exceptions for persons credit-constrained.
What is credit constrained?It is the inability of a borrower to borrow more money from the lender because, in the opinion of the lender, the borrower does not have the creditworthiness that he/she would pay the debt in time.
The following are the exception to persons being credit-constrained :
The Banking regulationsBank loan with lower interest rate.Therefore, it can be said the above option aptly explains the exception that leads to persons being credit-constrained :
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Robert, a highly experienced software engineer, joins a new company as the manager of a large group of employees. In his first meeting with the employees of the new organization, he explains his expectations on the behavior of employees. He also lets the employees know that noncompliance with his norms will result in withholding the rewards that they receive. Which of the following types of power is Robert using here?
a. reward
b. transformational
c. referent
d. coercive
Answer:
reward, maybe even referent
Explanation:
Robert is using rewarding to let people know that they need to work or they won't be rewarded.
A business must decide whether to open a new office in China. If it opens the
branch, it will increase its chances of selling a high volume of its products in
China. On the other hand, the business will have to spend a lot of money to
make the branch operational.
What would be an opportunity cost for the business if it chooses not to open
the new branch in China?
O A. The business would increase its marginal benefits on each
product it makes
O B. The business would lose the chance to make more money in
China.
O C. The business would have to open a new branch in a different
country
O D. The business would be able to use the money it saves on other
projects.
Methods analysis is particularly valuable when it is used on jobs that: (I) are high in labor content. (II) are done frequently. (III) involve a high degree of automation and mechanization. (IV) are unsafe, tiring, unpleasant, and/or noisy. A. I, II, III, and IV B. I, II, and IV only C. II and III only D. II and IV only E. I and III only
Answer:
B. I, II, and IV only
Explanation:
Job specialization can be defined as a strategic process which typically involves the ability of employees working in an organization to develop specific skills, knowledge, great expertise or professionalism and experience to perform their duties, tasks or job functions effectively and efficiently.
In order to gain the requisite skills, expertise and knowledge for job specialization, it is very important for the employees to have undergone an extensive training and a good number of years in work experience.
The primary purpose of job specialization is to increase efficiency and productivity because the employees are able to specialize in the use of specific tools (equipments) to accomplish their tasks, as well as limit the level of error or mistakes in the production process.
In Business management, method analysis can be defined as the study of the detailed process for the performance of a job i.e how a job is done. Thus, method analysis gives a detailed report on the tasks involved in the performance of a job and how they are to be done.
Basically, methods analysis is particularly valuable when it is used on jobs that:
1. Are high in labor content.
2. Are done frequently.
3. Are unsafe, tiring, unpleasant, and/or noisy.
Spiess Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel $ 775,000 Variable expenses, Apparel $ 314,000 Traceable fixed expenses, Apparel $ 201,000 Sales revenues, Accessories $ 799,000 Variable expenses, Accessories $ 425,000 Traceable fixed expenses, Accessories $ 128,000 Common fixed expenses totaled $401,000 and were allocated as follows: $172,000 to the Apparel business segment and $229,000 to the Accessories business segment. Required: Prepare a segmented income statement in the contribution format for the company.
Answer:
Spiess Corporation
The segmented income statement in the contribution format for December:
Apparel Accessories Total
Sales revenues, $ 775,000 $ 799,000 $1,574,000
Variable expenses, 314,000 425,000 739,000
Contribution margin $461,000 $374,000 $835,000
Traceable fixed expenses, 201,000 128,000 329,000
Common fixed expenses 172,000 229,000 401,000
Total expenses $373,000 $357,000 $730,000
Net income $88,000 $17,000 $105,000
Explanation:
a) Data and Calculations:
Apparel Accessories
Sales revenues, $ 775,000 $ 799,000
Variable expenses, 314,000 425,000
Traceable fixed expenses, 201,000 128,000
Common fixed expenses 172,000 229,000
b)Spiess' segmented income statement presents the revenues and costs according to the business segments to enable the managers understand how their specific segments are performing vis-a-vis others in Spiess Corporation. It serves as a managerial tool for business insights.
Wildhorse Co. is a full-service manufacturer of surveillance equipment. Customers can purchase any combination of equipment, installation services, and training as part of Wildhorse’s security services. Thus, each of these performance obligations are separate with individual standalone selling prices. Laplante Inc. purchased cameras, installation, and training at a total price of $88,100. Estimated standalone selling prices of the equipment, installation, and training are $81,000, $6,300, and $2,700, respectively. How should the transaction price be allocated to the equipment, installation, and training?
WeAnswer:
Equipment $79,290
Installation $6,167
Training $2,643
Explanation:
Calculation to determine How should the transaction price be allocated to the equipment, installation, and training
First step is to calculate the total estimated fair value
Total estimated fair value = $81,000+$6,300+$2,700
Total estimated fair value =$90,000
Now let calculate How should the transaction price be allocated
Equipment= ($81,000 ÷ $90,000)*$88,100
Equipment= 90%*$88,100
Equipment=$79,290
Installation=($6,300 ÷ $90,000)* $88,100
Installation= 7%*$88,100
Installation=$6,167
Training=($2,700 ÷ $90,000)*$88,100
Training= 3%*$88,100
Training=$2,643
TOTAL
Equipment=$81,000
Installation=$6,300
Training=$2,700
Total $90,000
Equipment=$79,290
Installation=$6,167
Training=$2,643
Total $88,100
Equipment=90%
Installation=7%
Training=3%
Total 100%
Therefore the transaction price that should be allocated to the equipment, installation, and training are :
Equipment $79,290
Installation $6,167
Training $2,643
You just decided to begin saving for retirement. You will make deposits of $1,000 per month into a retirement account that earns 8.00% p.a. The first deposit is made today and the last deposit will be made when you retire exactly 30 years from today. (Note: you make 361 total monthly deposits into your retirement account.) You will begin to make withdrawals from the account the first month after you retire. If you plan to live an additional 25 years and leave $900,000 to your heirs, you will be able to withdraw $_____ each month. (Note: you make 300 total monthly withdrawals from your retirement account.)
Answer:
Monthly withdraw= $4,752.01
Explanation:
Giving the following information:
Monthly deposit= $1,000
Number of perios= 361 months
Interest rate= 0.08/12= 0.0067
First, we need to calculate the Future Value at the moment of retirement:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,000*[(1.0067^361) - 1]} / 0.0067
FV= $1,513,584.37
Now, we can calculate the monthly withdraw:
PV= 1,513,584.37 - 900,000= $613,584.27
Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]
Monthly withdraw= (613,584.37*0.0067) / [1 - (1.0067^-300)]
Monthly withdraw= $4,752.01
The basic economic problem is that consumers have too many products and services to choose from.
a. True
b. False
The Sheridan Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $36 a night. Operating costs are as follows:
Salaries $4,000 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $832 per month
Maid service $6 per room
Other costs $12 per room
Required:
a. Determine the inn's break-even point in number of rented rooms per month.
b. Determine the inn's break-even point in dollars.
Answer:
Results are below.
Explanation:
First, we need to calculate the unitary variable cost and the fixed costs:
Unitary variable cost= 6 + 12= $18
Total fixed costs= 4,000 + 1,500 + 1,300 + 832
Total fixed costs= $7,632
Now, to calculate the break-even point both in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 7,632 / (36 - 18)
Break-even point in units= 424 per month
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 7,632 / (18/36)
Break-even point (dollars)= $15,264
North Company has completed all of its operating budgets. The sales budget for the year shows 50,900 units and total sales of $2,301,800. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $303,800. Interest is estimated to be $11,820. Income taxes are estimated to be $200,800. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.
Answer:
North Company
Budgeted multiple-step income statement for the year ending December 31, 2020
Sales $2,301,800
Less Cost of Goods Sold (50,900 units x $23) ($1,170,700)
Gross Profit $1,131,100
Less Expenses
Operating Expenses
Selling and administrative expenses $303,800
Operating Profit $827,300
Non Operating Expenses
Interest $11,820
Income taxes $200,800
Net Income (Loss) $614,680
Explanation:
North Company budgeted multiple-step income statement for the year ending December 31, 2020 is prepared above.
What method can help to avoid typos when writing a function that includes a range?
Answer:
clicking and dragging to select the range
Assume the cholesterol levels in a certain population have mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured and the sample mean x is determined. What is the z-score for a sample mean x = 180?
a. –3.75
b. –2.50
c. −0.83
d. 2.50
The required z-score for the given sample mean would be -0.83. which is the correct answer would be an option (C).
What is Z -score?A Z-score is defined as the fractional representation of data point to the mean using standard deviations.
Given the mean µ= 200 and standard deviation σ = 24. The cholesterol levels for a random sample of n = 9 individuals are measured sample mean is 180.
To determine the Z-score for the given sample mean
⇒ z-score = (X-ц )/σ
Here,
ц = 200
σ = 24
X = 180
Substitute the values in the above formula,
⇒ z-score = (180 - 200)/24
⇒ z-score = -20 /24
⇒ z-score = -0.833
Therefore, the required z-score for the given sample mean would be -0.83.
Hence, the correct answer would be an option (C).
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Aqua Corporation uses the weighted average method in its process costing system. Cost data for its work in process department follow:
Materials Conversion
Beginning work in process $67,000 $48,000
Costs added during the period $125,000 $225,000
Assuming equivalent units of production for materials are 90,000 and for conversion are 20,000, the cost per equivalent unit for materials during the period is closest to: ________
a. $3.89
b. $1.75
c. $1.39
d. $2.13
Answer:
See below
Explanation:
The cost per equivalent unit for materials during the period is closest is computed as;
Beginning work in process
$67,000
Add:
Costs added during the period
$125,000
Balance
$192,000
÷
Units of production for materials
90,000
= $2.13
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $157,452.975 / $157,452.975/ $157,452.975/ $157,452.975 The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to ________.
Answer:
21%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-400,000.
Cash flow in year 1 - 4 = $157,452.975
IRR = 21%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Jack and Jill are the only two residents in a neighbourhood, and they would like to hire a security guard. The value of a security guard is $50 per month to Jack and $90 per month to Jill. Irrespective of who pays the guard, the guard will protect the entire neighbourhood and charge $120 per month for the service. Suppose Jack earns $4,000 per month and Jill earns $8,000 per month.
a. With a proportional tax of 1 percent on income, how much would Jack and Jill pay, and would it be enough to pay for the security guard?
Jack would pay $ _____.
Jill would pay $ _____.
This tax _____ be enough to pay for the security guard.
b. Suppose instead that Jack proposes a payment scheme under which Jack and Jill would each receive the same net benefit from hiring the guard. How much would Jack and Jill pay now?
Jack would pay $ _____.
Jill would pay $ _____.
Would both Jack and Jill vote for this scheme? _____
Answer:
Jack and Jill
a. With a proportional tax of 1 percent on income, it would be enough to pay for the security guard $120.
Jack would pay $ __40___.
Jill would pay $ __80___.
This tax _will____ be enough to pay for the security guard.
b. Based on net benefit from the guard:
Jack would pay $ __43___.
Jill would pay $ _ 77____.
Would both Jack and Jill vote for this scheme? __No___ Jack will feel cheated by Jill in the sum of $3. Jack will likely prefer the 1% based on income.
Explanation:
a) Data and Calculations:
Value of a security guard for Jack = $50 per month
Value of a security guard for Jill = $90 per month
Total value of a security guard for both Jack and Jill = $140 ($50 + $90)
Cost of hiring a guard = $120 per month
Jack's monthly earnings = $4,000
Jill's monthly earnings = $8,000
Total monthly earnings for both Jack and Jill = $12,000
a. Proportional tax of 1 percent on income = $120 ($12,000 * 1%)
Jack will pay $4,000 * 1% = $40
Jill will pay $8,000 * 1% = $80
Total = $120
b. Net benefit scheme:
Jack will pay $50/$140 * $120 = $43
Jill will pay $90/$140 * $120 = $77
Total = $120
