Parking lot staff budget Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows:

School Days Nonschool Days
Number of vehicles per day 3,000 8,000
Number of days per year 165 200

Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day.

Required:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
b. Determine the parking revenue for school days, nonschool days, and total.
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.

Answer:

Kampus Corporation

Journal Entries:

Jan 1 Debit Bonds Receivable (Argon Co.) $10,000

Credit Cash $10,000

To record a short-term investment in available-for-sale (AFS) debt securities.)

Jan 3 Debit Investments (Long-term) in Elmer, Inc. $36,000

Credit Cash $36,000

To record the long-term investment (1,200 shares of Elmer, Inc. at $30 each.)

Mar 31 Debit Cash $300

Credit Dividend Received $300

To record dividend received from Elmer's investment

($0.25 per share of 1,200 shares).

Jun 1 Debit Investment in Logan, Inc. $300,000

Credit Cash $300,000

To record the investment in 5,000 shares of $60 per share, representing a 40% equity ownership.

Sep 30 Debit Cash $10,000

Credit Investment in Logan, Inc. $10,000

To record dividend received from investment in Logan, Inc. ($2 per share of 5,000 shares).

Dec 31 Debit Investment in Logan, Inc. $60,000

Credit Retained Earnings $60,000

To record 40% share of the Net income of $150,000 in Logan, Inc.

Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.

Dec 31 Debit Unrealized Loss from Investment in Elmer, Inc. $6,000

Credit Investment in Elmer, Inc. $6,000

To record $5 lost in the (market) value of $25 per share.

Explanation:

a) Data and Analysis:

Jan 1 Bonds Receivable (Argon Co.) $10,000 Cash $10,000

a short-term investment in available-for-sale (AFS) debt securities.)

Jan 3 Investments (Long-term) in Elmer, Inc. $36,000  Cash $36,000 1,200 shares of Elmer, Inc. at $30 each.

Mar 31 Cash $300 Dividend Received $300

$0.25 per share of 1,200 shares.

Jun 1 Investment in Logan, Inc. $300,000 Cash $300,000

5,000 shares of $60 per share, represent a 40% ownership.

Sep 30 Cash $10,000 Dividend Received $10,000

$2 per share of 5,000 shares.

Dec 31 Investment in Logan, Inc. $60,000 Retained Earnings $60,000

40% share of the Net income of $150,000  in Logan, Inc.

Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.

Dec 31 Unrealized Loss from Investment in Elmer, Inc. $6,000 Investment in Elmer, Inc. $6,000 (market) value of $25 per share.

Answer:

a. oligopoly.

b. an economic profit.

c. economic profits will fall.

Explanation:

An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.

Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.

The characteristics of an oligopolistic market structure are;

I. Mutual interdependence between the firms.

II. Market control by many small firms.

III. Difficult entry to new firms.

Hence, a firm operating in the United States of America with only two other competitors in the industry is likely to be an industry that would be characterized as oligopoly.

Additionally, business firms operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.

In economics, market structure refers to how different industries are distinguished depending on the degree and form of product and services rivalry. It's based on the features that influence the outcomes and behaviors of businesses in a given market.

a) An oligopoly is a business that operates in the United States with only two other competitors in the same industry.

Reason:

An oligopoly is a market structure with a small number of enterprises and high entry barriers. A competitive environment in which there are just a few vendors reveals to be Oligopoly because there are only two competitors available in the business.

b) Oligopolistic businesses will almost certainly make an economic profit.

Reason:

In an oligopoly, all firms would have to work together to raise prices and make a bigger profit. The bulk of oligopolies form in industries where goods are essentially homogeneous and give essentially the same advantage to customers.

c) Economic earnings are expected to diminish or fall if international enterprises begin to supply the product, increasing the number of competitors.

Reason:

As the supply curve changes to the right, the market price begins to fall, and as a result, existing and new enterprises' economic earnings fall. Due to the entry of new enterprises, which pulls down the market price, economic profit is zero in the long term.

For more information regarding the oligopoly market, refer to the link: https://brainly.com/question/14285126?referrer=searchResults

Answer and Explanation:

The preparation of the production budget is presented below:

Particulars             VCH                  MTV

Expected Sales:  

Eastern zone        12500            12960

Midwest zone       19000           19800

Western zone          14500        9840

Add: Desired inventory 6900 5250

Less: Opening inventory (2900) (4000)

Production in units  50,000 43,850

Answer:

amount of direct materials that should be used for each unit of finished product including an allowance for normal inefficiencies, such as scrap and spoilage.

Explanation:

Standard quantity per unit is defined as materials that the manufacturer needs to complete a unit of a product. It also allows for inefficiencies such as spoilage and scrap.

It is used by managers to reduce wastage that exists during production by allocation of only the required amount of direct materials in the production process.

Question Completion:

Drop-down menu:

- excludable

- non-excludable

- rivalrous

- non-rivalrous

- common goods

- club goods

- public goods

- private goods

Answer:

Correct words to finish the sentences:

Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are__non-excludable___.

If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are__rivalrous___.

Considering those two characteristics, fish in the ocean are_common goods___.

Explanation:

The two key characteristics of a public good are: it is non-excludable and non-rivalrous.  A common good is non-excludable but rivalrous. A private good is excludable and rivalrous.  A club good is excludable and non-rivalrous.

Non-excludable refers to goods that are costly and impossible for a person to exclude other users from using the goods.

Non-rivalrous good refers to goods that a person can use without preventing others from using the goods.

Answer:

E

Explanation:

Money is an economic unit that is generally accepted as a medium of exchange in the economy

Functions of money  

1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans

2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans

3. Store of value : money can retain its value over the long term, this it can be used as a store of value

M1 includes the most liquid from of money. It includes currency, demand deposits and checking account.

A check is not a form of money. It can be defined as a note or an instruction to a bank to make a payment. The payment can either be honoured or not be honoured

Answer:

n= 12.25 years

Explanation:

Giving the following information:

Present value= $10,200

Future value= $17,800

Interest rate= 6.2%

First, we need to calculate the number of years it will take the investment to reach $17,80. We need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(17,800/10,200) / ln(1.062)

n= 9.25 years

Now, the total number of years:

n= 9.25 + 3

n= 12.25 years

Answer:

1. Total cost of customer order shipped via LTL carrier is $9,114.

2. XYZ company would save $162 by using the alternate shipping/delivery method.

3. The cost of these two methods would be the same when the number of customers is approximately 6.

Explanation:

To ease answering the question, let us first the define as follows:

N = Number of customers = Number of Order

A = Each customer order shipped via LTL carrier costs = $147

B = Average order weight = 750

C = Warehouse break-bulk fee per hundred weight = 13

D = Total cost of weight = ((N * B) / 100) * C

E = Local LTL delivery fee = $36

F = Total Local LTL delivery fee = N * E

G = Full TL shipment cost (220 miles) = 675

H = Total cost of shipping using 3PL = D + F + G

I = Total cost of customer order shipped via LTL carrier = N * A

J = Difference between the cost of the two methods = I - H

1. What is the total cost of delivering to all customers via LTL carrier (current method

This can be calculated using E above as follows:

Total cost of customer order shipped via LTL carrier = E = N * A = 62 * $147 = $9,114

2. How much money would XYZ company save by using the alternate shipping/delivery method?

From the definitions above, we have:

N = Number of orders = 62

D = Total cost of weight = ((N * B) / 100) * C = ((62 * 750) / 100) * 13 = $6,045

F = Total Local LTL delivery fee = N * E = 62 * 36 = $2,232

G = Full TL shipment cost (220 miles) = $675

H = Total cost of shipping using 3PL = D + F + G = $6,045 + $2,232 + $675 = $8,952

I = Total cost of customer order shipped via LTL carrier = $9,114

J = Difference between the cost of the two methods = I - H = $9,114 - $8,952 = $162

Therefore, XYZ company would save $162 by using the alternate shipping/delivery method.

3. At what number of customers would the cost of these two methods be the same?

H = Total cost of shipping using 3PL = D + F + G = (((N * B) / 100) * C) + (N * E) + G ............ (1)

Substituting all the relevant value into equation (1), we have:

H = (((N * 750) / 100) * 13) + (N * 36) + 675

I = N * 147

Equating H and I and solve for N, we have:

(((N * 750) / 100) * 13) + (N * 36) + 675 = N * 147

((N0.01 * 7.50) * 13) + 675 = N147 - N36

(N0.075* 13) + 675 = N111

N0.975 + 675 = N111

675 = N111 - N0.975

N110.025 = 675

N = 675 / 110.025

N = 6.13496932515337.

By approximating to a whole number since we are talking about human being, we have:

N = 6

At what number of customers would

Therefore, the cost of these two methods would be the same when the number of customers is approximately 6.

Answer:

The responses to these question can be defined as follows:

Explanation:

Given:

                          [tex]Bond \ A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Bond \ B\\\\[/tex]

[tex]Face \ Value \ \ \ \ \ \ \ \ \ \$1,000 \ \ \ \ \ \ \ \ \ \$ 1,000\\\\ Rate \ of \ Coupon \ \ \ \ \ \ \ \ \ 6\% \ \ \ \ \ \ \ \ \ 7\% \\\\Maturity \ in \ Years \ \ \ \ \ \ \ \ \ 15 \ \ \ \ \ \ \ \ \ 20 \\\\Selling - Price \ \ \ \ \ \ \ \ \ -\$ 908.92 \ \ \ \ \ \ \ \ \ \$960 \\\\ Yield \ To \ Maturity \ \ \ \ \ \ \ \ \ 7\% \ \ \ \ \ \ \ \ \ 7.39\% \\\\Total\ Outstanding \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \$ 3,30,00,000\\\\[/tex]

[tex]Rate\ Tax \ \ \ \ \ \ \ \ \ 40\% \\\\selling\ Price \ \ \ \ \ \ \ \ \ PV(7\% , 15 ,60, 1000)\\\\Yield \ To\ Maturity \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ RATE(20, 70, -960,1000)[/tex]

For point a:

Before tax   [tex]FACE \ \ VALUE \ \ \ \ \ \ \ \ \ \ MARKET \ \ VALUE \ \ \ \ \ \ \ \ \ \ WEIGHT \ \ \ \ \ \ \ \ \ \ COST \ \ \ \ \ \ \ \ \ \ WACC\\\\[/tex][tex]Dr \ 1 \ \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \ 25449760 \ \ \ \ \ \ \ \ \ \ 0.445473 \ \ \ \ \ \ \ \ \ \ 7 \ \ \ \ \ \ \ \ \ \ 3.11831\\\\Dr \ 2 \ \ \ \ \ \ \ \ \ \ \$3,30,00,000 \ \ \ \ \ \ \ \ \ \ 31680000 \ \ \ \ \ \ \ \ \ \ 0.554527 \ \ \ \ \ \ \ \ \ \ 7.39 \ \ \ \ \ \ \ \ \ \ 4.097955\\\\[/tex]

                                               [tex]57129760 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 7.216266\\\\[/tex]

For point b:

After tax

[tex]FACE \ \ VALUE \ \ \ \ \ \ \ \ \ \ MARKET \ \ VALUE \ \ \ \ \ \ \ \ \ \ WEIGHT \ \ \ \ \ \ \ \ \ \ COST \ \ \ \ \ \ \ \ \ \ WACC\\\\Dr \ 1 \ \ \ \ \ \ \ \ \ \ \$2,80,00,000 \ \ \ \ \ \ \ \ \ \ 25449760 \ \ \ \ \ \ \ \ \ \ 0.445473 \ \ \ \ \ \ \ \ \ \ 4.2 \ \ \ \ \ \ \ \ \ \ 1.870986\\\\Dr \ 2 \ \ \ \ \ \ \ \ \ \ \$3,30,00,000 \ \ \ \ \ \ \ \ \ \ 31680000 \ \ \ \ \ \ \ \ \ \ 0.554527 \ \ \ \ \ \ \ \ \ \ 4.434 \ \ \ \ \ \ \ \ \ \ 2.458773\\\\[/tex]                                             [tex]57129760 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4.329759\\\\[/tex]

So,  

In a, answer is  [tex]7.22\%[/tex]

In b, answer is  [tex]4.33\%[/tex]

Answer:

Cost allocation

Explanation:

Cost allocation means the process where the identification, aggregation, and the allocating of the cost is made to the various cost objects. It plays an important role as the cost i.e. incurred for generating a particular product or rendering a service would be determined

So if the manufacturing overhead cost assigned and the other indirect cost so this we called cost allocation

Answer:

Fraud Investigators Inc.

1. Journal Entries:

March 31:  Debit Accounts Receivable $21,000

Credit Service Revenue $21,000

To record the rendering of service on account.

Oct. 31: Debit Allowance for Uncollectible Accounts $1,300

Credit Accounts Receivable $1,300

To write-off uncollectible accounts.

Dec. 15: Debit Accounts Receivable $760

Credit Allowance for Uncollectible Accounts $760

To reverse a previously written-off account.

Dec. 15: Debit Cash $760

Credit Accounts Receivable $760

To record the cash collected from the customer.

Dec. 31: Debit Bad Debts Expense $460

Credit Allowance for Uncollectible Accounts $460

To record bad debts expense for the year.

A) Debit Accounts Receivable $34,000

Credit Service Revenue $34,000

To record the rendering of service on account.

B) Debit Allowance for Uncollectible Accounts $1,950

Credit Accounts Receivable $1,950

To write off uncollectible accounts.

C1) Debit Accounts Receivable $810

Credit Allowance for Uncollectible Accounts $810

To reverse a previously written-off debt.

C2) Debit Cash $810

Credit Accounts Receivable $810

To record the receipt of cash from the customer.

D) Debit Bad Debts Expense $590

Credit Allowance for Uncollectible Accounts $590

To record bad debts expense for the year.

2. Transaction  Net Receivable  Net Sales   Income From Operation

        A                  +34,000           +34,000           +34,000

        B                  -1,950                 NE                   -1950

        C                  +/- 810                NE                    +810

        D                   NE                     NE                    -590

Explanation:

a) Data and Analysis:

March 31:  Accounts Receivable $21,000 Service Revenue $21,000

Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300

Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760

Dec. 15: Cash $760 Accounts Receivable $760

Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460

A) Accounts Receivable $34,000 Service Revenue $34,000

B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950

C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810

C2) Cash $810 Accounts Receivable $810

D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590

Answer:

8.19%

Explanation:

Calculation to determine the company's WACC

First step is to calculate the CAPM rate of equity

Using this formula

CAPM rate of equity = Risk free rate + market risk premium * beta

Let plug in the formula

CAPM rate of equity=3.75%+(11.7%-3.75%)*0.93

CAPM rate of equity=11.14%

Second step is to calculate the DDM rate of equity

Using this formula

DDM rate of equity= Expected dividend next year/Price today + Growth rate

Let plug in the formula

DDM rate of equity=3/64.8+5.3%

DDM rate of equity=9.93%

Third step is to calculate the Cost of equity using this formula

Cost of equity = Average of CAPM and DDM

Let plug in the formula

Cost of equity=(11.14%+9.93%)/2

Cost of equity= 10.54%

Fourth Step is to calculate the Cost of debt (after tax)

Cost of debt (after tax) using financial calculator to compute YTM

PV -1047.5

FV 1000

PMT 1000*6.5%/2 32.5

N 22*2 44

Compute I 3.05%

YTM =3.05%*2 6.10%

Tax rate = 23%

Hence,

Rate of debt (after tax) = 6.1%*(1-23%)

Rate of debt (after tax) = 4.70%

Fifth step is to calculate the Rate of preferred stock using this formula

Rate of preferred stock = Annual dividend/Current price

Let plug in the formula

Rate of preferred stock=4.65/94.3

Rate of preferred stock=4.93

Sixth step is to calculate the Weight

Market value

Source

equity 240000*64.8= 15552000

debt 1047.5*9300= 9741750

preferred stock 8300*94.3=782690

Total 26076440

equity 15552000/26076440= 59.64%

debt 9741750/26076440=37.36%

preferred stock 782690/ 26076440=3.00%

Now let calculate compute WACC

WACC= weight * cost

equity 59.64%*10.54%=6.28%

debt 37.36%* 4.70% =1.76%

preferred stock3.00%*4.93%=0.15%

WACC = 8.19%

(6.28%+1.76%+0.15%)

Therefore the company's WACC is 8.19%

Answer:

SHEILA

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Sheila's opportunity cost in producing berries = 10/40 = 0.25

Jim's opportunity  cost in producing berries = 8/24 = 0.33

Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries

Answer:

c. net income will be understated.

Answer:

B. False

Explanation:

I majored in Business

Answer:

d. People are willing to accept a currency in the future as compensation for debts accrued earlier

Explanation:

Money can be used to pay your current debts at a later date since $100 will still be $100 in the future. They might lose some of its value due to inflation, but they do not spoil or rot, and will probably be accepted in the future. imagine trying to pay an old debt with rotten tomatoes or an old cow.

Answer:

The Excel YEAR function returns the year component of a date as a 4-digit number.

Explanation:

Answer:

D. The quantity of a good demanded is equal to the quantity supplied.

Explanation:

Deman will not change, but supply decrease. Demand will decrease.

Answer:

Cost of goods sold = $576,900

Explanation:

The budgeted cost of goods sold will be the sales volume in 2020 multiplied by cost per unit .

Sales volume in year 2020= (100-10)% ×  sales figure for 2019

                                            = 90% × 160,250=  144,225  

Cost of goods sold per unit =  cost of goods sold in 2019/Sales units in 2019

                                              = 641,000/160250=$4

Cost of goods sold =  $4× 144,225 =  $576,900

Cost of goods sold = $576,900

Answer:

Usher Co.

a. The units produced during the period is:

= 16,200 units

b. The pounds of raw materials purchased and used during the period is:

=  82,980 pounds

c. The actual cost per pound of raw materials is:

= $4.90

Explanation:

a) Data and Calculations:

Standard Cost Card

Direct materials (5 pounds at $5 per pound) $25.00

Direct labor (0.90 hours at $10)                           9.00

Variable overhead (0.90 hours at $4 per hour)  3.60

Fixed overhead (0.90 hours at $9 per hour)       8.10

                                                                         $45.70

Variances

Costs                        Total Standard Cost     Price         Quantity

Direct materials                     $405,000      $8,298 F   $9,900 U

Direct labor                               145,800        4,590 U     7,200  U

Units produced = Total standard cost/direct materials standard cost per unit

= $405,000/$25

= 16,200 units

Pounds of raw materials purchased and used = (Total standard cost + Unfavorable Quantity Variance)/direct materials standard cost per pound

= ($405,000 + $9,900)/$5

= 82,980 pounds

Actual costs:

Direct materials = $406,602 ($405,000 - $8,298 + $9,900)

Actual price per pound = $4.90 ($406,602/82,980)

Direct labor = $157,590 ($145,800 + 4,590 + 7,200)

Actual price per pound = ((Actual Quantity * Standard Price) - Favorable Price Variance)/Actual Quantity

= ((82,980 * $5) - $8,298)/82,980

= ($414,900 - $8,298)/82,980

= $406,602/82,980

= $4.90

A. The units produced during the period are 16200 (rounded off to nearest zero).

B. 82980 pounds of raw material was being required during the period.

C. The actual cost of raw materials come out of $4.90/pound

[tex]\rm units\ produced=\dfrac{\rm{total standard cost}}{\rm{direct materials}}\\\\units \ produced = \dfrac{405000}{25}\\\\\rm units\ produced = 16200[/tex]

So, 16200 units were produced.

[tex]\rm raw\ material\ used = \dfrac{\rm{total\ standard\ cost+\ unfavourable \ quantity\ variance}}{\rm{direct\ material \ standard\ cost\ per \pound}} \\\\ =\dfrac{4149000}{5}\\\\=829800[/tex]

So, 829800 pounds of raw material was consumed during the period.

Hence, the answers are calculated as

Actual cost per pound = $4.90

Raw material consumed and purchased = 829800 pounds

Units produced = 16200 units

To know more about raw materials, please refer below links.

https://brainly.com/question/730278

Answer:

COGS= $960,000

Explanation:

Giving the following information:

Beginning inventroy= $65,000

Ending inventory= $55,000

Total Purchase=  220,000 + 140,000 + 170,000+ 420,000= $950,000

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning inventory + cost of goods purchased - ending inventory

COGS= 65,000 + 950,000 - 55,000

COGS= $960,000

Answer:

multiply ur answer by 0.2 if you want to solve for the income tax rate

Explanation:

Answer:

Cliff Consulting

a) Annual Break-even point in sales revenue is:

= $800,000

b) Annual margin of safety is:

= $400,000

c) If fixed costs increases by $80,000, the break-even point in sales revenue

= $945,455

d) Dollar Sales Revenue required to provide an after-tax net income of $250,000 is:

= $1,375,375

e) Abbreviated Contribution Income Statement

Sales revenue       $1,375,375

Variable costs =          618,919

Contribution =        $756,456

Fixed costs               440,000

Before tax income    316,456

Income tax (21%)        66,458

After-tax income   $249,998

equivalent to $250,000

Explanation:

a) Data and Calculations:

CLIFF CONSULTING

Contribution Income Statement

For the Year Ended September 30

Sales revenue                                      $ 1,200,000

Variable costs

Cost of services                     $ 480,000

Selling and administrative          60,000 540,000

Contribution margin                                660,000

Fixed Costs -selling and administrative 440,000

Before-tax profit                                      220,000

Income taxes (21%)                                    46,200

After-tax profit                                       $ 173,800

Break-even point in sales revenue = Fixed costs/Contribution margin ratio

= $440,000/0.55

= $800,000

Annual margin of safety = normal sales revenue minus break-even sales revenue

= $1,200,000 - $800,000

= $400,000

Contribution margin ratio = contribution margin/sales revenue * 100

= $660,000/$1,200,000 * 100 = 55%

If fixed costs increases by $80,000, the break-even point in sales revenue

= ($440,000 + $80,000)/0.55 = $520,000/0.55 = $945,455

To achieve after-tax net income of $250,000, the required dollar sales revenue:

Net income after-tax = $250,000

Tax rate = 21%

Net income before tax = $250,000/1-21%

= $250,000/0.79 = $316,456

Sales dollars to achieve target profit = (Fixed costs + Target Profit/1 - 0.21)/Contribution margin

= ($440,000 + ($250,000/0.79))/0-55

= ($440,000 + $316,456)/0.55

= $756,456/0.55

= $1,375,375

Abbreviated Contribution Income Statement

Sales revenue       $1,375,375

Variable costs =          618,919

Contribution =        $756,456

Fixed costs               440,000

Before tax income    316,456

Income tax (21%)        66,458

After-tax income   $249,998

After-tax income is equivalent to $250,000

Answer:

Journal Entries:

a. Debit Raw materials $92,000

Credit Accounts payable $92,000

To record the purchase of raw materials on account.

b. Debit Work-in-Process $40,000

Debit Manufacturing overhead $25,000

Credit Raw materials $65,000

To record direct and indirect materials.

c.  Debit Payroll Expense $65,000  

Credit Cash $65,000

To record the payment of payroll.

Debit Work-in-Process $45,000 (direct labor)

Debit Manufacturing overhead $20,000 (indirect labor)

Credit Payroll Expenses $65,000

To record the payment of direct and indirect labor.

d. Debit Manufacturing overhead $7,750

Credit Cash $7,750

To record the payment for other overhead costs.

e. Debit Work-in-Process $54,000

Credit Manufacturing overhead $54,000

To record overhead applied at the rate of 120% of direct labor cost.

f. Debit Finished goods $69,000

Credit Work-in-Process $69,000

To record the transfer of completed jobs to finished goods inventory.

g. Debit Cost of goods sold $69,000

Credit Finished goods $69,000

To record the cost of goods sold.

h. Debit Accounts receivable $98,000

Credit Sales revenue $98,000

To record the sale of goods on account.

Explanation:

a. Raw materials $92,000 Accounts payable $92,000

b. Work-in-Process $40,000 Manufacturing overhead $25,000 Raw materials $65,000

c.  Payroll Expense $65,000  Cash $65,000 Work-in-Process $45,000 (direct labor) Manufacturing overhead $20,000 (indirect labor) Payroll Expenses $65,000

d. Manufacturing overhead $7,750 Cash $7,750

e. Work-in-Process $54,000 Manufacturing overhead $54,000 (at the rate of 120% of direct labor cost)

f. Finished goods $69,000 Work-in-Process $69,000

g. Cost of goods sold $69,000 Finished goods $69,000

h. Accounts receivable $98,000 Sales revenue $98,000

Answer:

$404,800

Explanation:

Calculation to determine How much rent is allocable to the assembly department using the direct method of allocation

Using this formula

Rent =Area used by Assembly department / Total Area used by Manufacturing Departments x Total Rent paid

Let plug in the formula

Rent =36,850/ (36,850+30,150) x $736,000

Rent=36,850/67,000*$738,000

Rent=0.55*$736,000

Rent= $404,800

Therefore How much rent is allocable to the assembly department using the direct method of allocation is $404,800

Answer:

5.7255

Explanation:

From the given information:

[tex]T_1 \to \text{time between car accident \& reporting claim} \\ \\ T_2 \to \text{time between reporting claim and payment of claim}[/tex]

The joint density function of [tex]T_1[/tex] and [tex]T_2[/tex] is:

[tex]f(t_1,t_2) = \left \{ {{c \ \ \ 0<t_1<6, \ \ \ 0<t_2<6, \ \ \ t_1+t_2<10} \atop {0} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ otherwise} \right.[/tex]

Area(A): [tex]= 6\times 6 - \dfrac{1}{2}*2*2[/tex]

= 34

The limits are:

[tex]\text{limits of } \ t_1 \ from \ 0 \ is \ 10 \to t_2 \\ \\ \text{limits of } \ t_2 \ from \ 0 \ is \ 4 \to 6[/tex]

Also;

[tex]\text{limits of } \ t_1 \ is \ 0 \to 6 \\ \\ \text{limits of } \ t_2 \ is \ 0 \to 4[/tex]

∴

[tex]\iint f(t_1,t_2) dt_1dt_2 =1 \\ \\ c \iint 1dt_1dt_2 = 1 \\ \\ cA = 1 \\ \\ \implies c = \dfrac{1}{34}[/tex]

To find;

[tex]E(T_1+T_2) = \iint (t_1+t_2)c \ \ dt_1dt_2 \\ \\ \implies \dfrac{1}{34} \Big[\int \limits^4_0 \int \limits^6_0(t_1+t_2) dt_1 \ dt_2 + \int \limits^6_4 \int \limits^{10-t_2}_0(t_1+t_2) dt_1 dt_2 \Big] \\ \\ \implies \dfrac{1}{34} (120 + \dfrac{224}{3}) \\ \\ = \mathbf{5.7255}[/tex]

Answer:

See below

Explanation:

Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021 would be calculated as;

Step 1

= $413,000 × 1%

= $413,000 × 0.01

= $4,130

Step 2

= $3,000 - $3,690

= ($690)

Step 3

= $4,130 + ($690)

= $4,130 - $690

= $3,440

Therefore, Rahal's final balance in its allowance for uncollectible accounts at December 31, 2020 is $3,440

Answer:

I and II are true

Explanation:

I. Increases in the demand for a good, which is produced by a competitive industry, will raise the short-run market price

In the short run of the competitive industry when the market demand for goods rises then the price of these goods will also increase. This is because the price equals marginal revenue. Therefore, when price rises then marginal revenue will increase and as a result, the marginal cost curve moves up and firms produce more quantity of goods. This statement is therefore true.

II. Increases in the demand for a good, which is produced by a competitive industry, will raise the long-run market price

The effect of the increase in goods demand is the same in the long run of the competitive industry as it is in the short run. Therefore, a rise in demand would raise the price of the goods above ATC (Average Total Cost). Hence, the above statement is also true.

Answer:

$6,779

Explanation:

Calculation to determine the incremental annual cash flow associated with the project

First step is to calculate the depreciation

Depreciation=[($64,000/6 years)-($82,000/10 years)

Depreciation=$10,667-$8,200

Depreciation=$2,467

Now let calculate the Incremental annual cash flow

Incremental annual cash flow ={($9,000-$2,467)

-[($9,000-$2,467)*34%]+$2,467}

Incremental annual cash flow =[($6,533-$2,221)+$2,467]

Incremental annual cash flow =$4,312+$2,467

Incremental annual cash flow=$6,779

Therefore the incremental annual cash flow associated with the project is $6,779