Answer: Please see explanation column for answers
Explanation
1.To record the issue of 8,000 shares of $20 par value.
Account titles and explanation Debit Credit
Cash Account $192,000
Common Stock( 8,000 shares x $20) $160,000 $160,000
Paid-in In Excess of Par $32,000
2. To record the issue of 4,000 shares of $1 stated value.
Account titles and explanation Debit Credit
Retained Earnings $4,000
Common Stock $4,000
3. To record the issue of 4,000 shares of no stated value.
Account titles and explanation Debit Credit
Retained Earnings $58,500
Common Stock $58,500
4.To record the issue of 2,000 shares of $50 par value.
Account titles and explanation Debit Credit
Cash $158,500
Preferred Stock( 2,000 shares x $50) $100,000
Paid-in In Excess of Par $58,500
A tyre manufacturer wants to set a minimum mileage guarantee on its new MX100 tyre. Tests reveal the mean mileage is 47,900 with a standard deviation of 2,050 miles and the distribution is a normal distribution. The manufacturer wants to set the minimum guaranteed mileage so that no more than 4% of the tyres will have to be replaced. What minimum guaranteed mileage should the manufacturer announce
Answer:
51,487.5
Explanation:
Calculation to determine the minimum guaranteed mileage should the manufacturer announce
Sinces no more than 4% of the tires will have to be replaced First step will be to determine the InvNorm(.96) using normal distribution table
InvNorm(100%-4%)
InvNorm(.96) = 1.75
Now let determine the minimum guaranteed mileage
Let x represent the Minimum guaranteed mileage
(2050*1.75)+47,900=x
x=3,587.5+47,900
x = 51,487.5
Therefore the minimum guaranteed mileage that the manufacturer should announce is 51,487
A 10-year loan in the amount of $100,000 is to be repaid in equal monthly payments. The interest rate is 12 percent, compounded monthly. What is the amount of principal paid in the loan payment for month 3
Answer:
The amount of principal paid in the loan payment for month 3 is:
= $443.45.
Explanation:
a) Data and Calculations:
Loan amount = $100,000
Interest rate per annum = 12%
Period of loan = 10 years or 120 months
Repayment of loan principal and interest = equal monthly payments.
3rd Month Payment:
Total payment = $1,434.71
Interest $991.26
Principal = $443.45
Schedule of Payment for the first 3 months:
Period PV PMT Interest FV
1 $100,000.00 $1,434.71 $1,000.00 $99,565.29
2 $99,565.29 $1,434.71 $995.65 $99,126.23
3 $99,126.23 $1,434.71 $991.26 $98,682.79
TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from India and assembles them domestically. Suppose that in the United States, a TV set sells for $400 and that 80% of the TV set’s value comes from the value of the imported components. The United States imposes a 40% tariff on TV sets and a 10% tariff on the TV set’s components. Assume that costs of producing components are the same in the United States and India and that transit costs are nonexistent. Based on the information provided, the effective rate of protection that TeleGlobal receives from the tariff is
Answer:
135 %
Explanation:
Given that,
The selling price of T.V. set in the U.S. = $400
The Tariff imposed on T.V. sets = 30%
The Tariff on its imported components = 10%
To find,
The effective rate of protection gained from tariff = ?
Method:
As we know
Effective rate of protection
= tariff on finished imported good + cost/price of its components * (tariff on imported good - tariff on components imported)/(price of final good - price of its components)
So, by putting the given values in above formulae;
= 40% + 80% of 400 * (40% - 10 %)/(400 - 80% of 400)
= 40 + 320 * (30)/(400 - 320)
= 360 * 30/(80)
= 360 * 30/80
= 135%
The bond contract rate determines the annual interest paid by multiplying the bond ______ value by the contract rate.
Answer:
par value
Explanation:
The bond's contract rate can also be regarded as bond's coupon rate. It can be explained as what the issuing company usually utilized in calculation of what it must pay as regards the interest on the bond. The market rate can be regarded as what other bonds which posses same risk pay in interest.
Coupon rate can as well be explained as nominal yield that is been paid by a fixed-income security. It is been regarded as annual coupon payments that is been paid by the issuer with relativity to the
par value or face of bond.
It should be noted that The bond contract rate determines the annual interest paid by multiplying the bond par value by the contract rate
Assume the equilibrium price for a good is $10. If the market price is $5, a:_____________
a. Shortage will cause the price to remain at $5
b. Surplus will cause the price to remain at $5
c. Shortage will cause the price to rise toward $10
d. Surplus will cause the price to rise toward $10
Answer:
c. Shortage will cause the price to rise toward $10
Explanation:
c. Shortage will cause the price to rise toward $10
The equilibrium price is $10 this any price below the equilibrium price will create a shortage in the market because at price lower than equilibrium price, the demand is greater than the supply. Thus, shortage will push the prices upwards or towards equilibrium price.
2. Through stores that employ a team-based management approach and that offer an appealing shopping environment / experience, Whole Foods can charge higher prices because they offer the highest quality natural and organic foods available with customer service superior to their competitors. This explanation is best described as Whole Foods' ______.
Answer:
differentiation strategy
Explanation:
Based on the information above, it is possible to affirm that Whole Foods is a company that uses a strategy of differentiation in its products and services, as its management approach is based on a team that offers an attractive shopping environment / experience, in addition to charging higher prices for offering high quality natural and organic foods, as well as superior customer service than its competitors.
The differentiation strategy consists of actions used by companies to make their products and services attractive to their potential audience, offering added benefits and advantages that the consumer can perceive and value, making the company more competitive and well positioned in relation to its competitors .
Company xyz made the following transactions 6 marks
Borrowed loan of ksh 50000 to start a business
Obtained Ksh 150,000 in cash from proceeds of sales
Paid out ksh 240000 in form of salaries
Purchased Ksh 600000 worth of machinery in cash
Purchased a track valued at Ksh 1, 500 000 by paying Ksh 300000 in cash and getting a
loan for the reminder
Paid rent of rent of Ksh 80000 and advertising of ksh 50,000 in cash each
Determine the value of the company’s assets, liability and equity
Answer:
Company XYZ
Total assets ksh 1,030,000
Total liabilities ksh 1,250,000
Total equity ksh (220,000)
Explanation:
a) Data and Analysis:
Cash ksh 50,000 Loan payable ksh 50,000
Cash ksh 150,000 Sales revenue ksh 150,000
Salaries expense ksh 240,000 Cash ksh 240,000
Equipment ksh 600,000 Cash ksh 600,000
Track ksh 1,500,000 Cash ksh 300,000 Loan payable ksh 1,200,000
Rent Expense ksh 80,000 Advertising Expense ksh 50,000 Cash ksh 130,000
Assets:
Cash ksh 50,000
Cash ksh 150,000
Cash ksh (240,000)
Equipment ksh 600,000
Cash ksh (600,000)
Track ksh 1,500,000
Cash ksh (300,000)
Cash ksh (130,000)
Total assets ksh 1,030,000
Liabilities:
Loan payable ksh 50,000
Loan payable ksh 1,200,000
Total liabilities ksh 1,250,000
Equity:
Sales revenue ksh 150,000
Salaries expense ksh (240,000)
Rent Expense ksh (80,000)
Advertising Expense ksh (50,000)
Total equity ksh (220,000)
Cost of debt with fees. Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 7.5 % with semiannual payments, and will use an investment bank that charges $25 per bond for its services. What is the cost of debt for Kenny Enterprises at the following market prices?
a. $982.48
b. $1,004.93
c. $1,068.15
d. $1,171.91
Answer:
Kenny Enterprises
Cost of Debt with fees:
Market Prices $982.48 $1,004.93 $1,068.15 $1,171.91
Cost of debt (b- a) $48.59 $26.14 ($37.08) ($140.84)
Cost of debt in percentage 4.86% 2.61% -3.71% -14.08%
Explanation:
a) Data and Calculations:
Market Prices $982.48 $1,004.93 $1,068.15 $1,171.91
Investment bank charges 25.00 25.00 25.00 25.00
a) Net bonds proceeds $957.48 $979.93 $1,043.15 $1,146.91
b) Repayments:
PV of interest payments $770.66 $770.66 $770.66 $770.66
PV of principal ($1,000) 235.41 235.41 235.41 235.41
Total repayments $1,006.07 $1,006.07 $1,006.07 $1,006.07
Cost of debt (b- a) $48.59 $26.14 ($37.08) ($140.84)
Cost of debt in percentage 4.86% 2.61% -3.71% -14.08%
Present values of interest payments:
N (# of periods) 40
I/Y (Interest per year) 7.5
PMT (Periodic Payment) 37.5
FV (Future Value) 0
Results
PV = $770.66
Sum of all periodic payments $1,500.00
Total Interest $729.34
Present value of principal repayment:
N (# of periods) 20
I/Y (Interest per year) 7.5
PMT (Periodic Payment) 0
FV (Future Value) 1000
Results
PV = $235.41
Total Interest $764.5
A company issued bonds 8 years ago with original maturity of 25 years, 7.5% coupon rate with semiannual coupon payments, and a par value of $1,000. The current market interest rate is 11.75%. What is the bond's price?
a. $718.52
b. $690.22
c. $780.75
d. $890.46
e. $814.97
A company issued bonds 8 years ago with original maturity of 25 years, 7.5% coupon rate with semiannual coupon payments, and a par value of $1,000. The current market interest rate is 11.75%. The bond's price is $718.52. Option A is the correct answer.
To calculate the bond's price, we can use the present value formula. The present value of a bond is the sum of the present value of its future cash flows, which are the coupon payments and the final principal repayment. Option A is the correct answer.
1. Determine the number of periods: The bond has an original maturity of 25 years and semiannual coupon payments, so there are a total of 50 periods (25 years * 2).
2. Calculate the periodic coupon payment: The coupon rate is 7.5% and the par value is $1,000. Therefore, the annual coupon payment is $1,000 * 7.5% = $75. Since there are semiannual coupon payments, the periodic coupon payment is $75 / 2 = $37.50.
3. Determine the market interest rate: The current market interest rate is 11.75%, which is the rate we will use to discount the bond's cash flows.
4. Calculate the present value of the coupon payments: We will use the present value of an annuity formula to calculate the present value of the 50 coupon payments. The formula is: PV = C * (1 - (1 + r)⁻ⁿ) / r, where PV is the present value, C is the periodic coupon payment, r is the periodic interest rate, and n is the number of periods.
Using the formula, PV = $37.50 * (1 - (1 + 11.75% / 2)⁻⁵⁰) / (11.75% / 2), the present value of the coupon payments is approximately $613.74.
5. Calculate the present value of the final principal repayment: The final principal repayment is the par value of $1,000. We will use the present value formula PV = F / (1 + r)ⁿ, where PV is the present value, F is the future value (par value), r is the periodic interest rate, and n is the number of periods.
Using the formula, PV = $1,000 / (1 + 11.75% / 2)^50,
the present value of the final principal repayment is approximately $104.78.
6. Add the present value of the coupon payments and the present value of the final principal repayment to get the bond's price:
$613.74 + $104.78 = $718.52.
Therefore, the correct answer is a. $718.52.
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In 2012 the minimum wage in Arizona was $7.65. If we assume the growth of this minimum wage is exponential and is growing at the rate of 2%, then the length of time until the minimum wage reaches d dollars is modeled by which formula:________
Answer:
I don't what should you do otherwise please marks me as brainliests.Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 170,000 shares of $6 par value common stock. During 2021, Roberto had the following transactions relating to stockholders' equity: Issued 17,000 shares of common stock at $8 per share. Issued 34,000 shares of common stock at $9 per share. Reported a net income of $170,000. Paid dividends of $85,000. Purchased 3,500 shares of treasury stock at $11 (part of the 34,000 shares issued at $9). What is total stockholders' equity at the end of 2021? a. $930,500. b. $522,500. c. $488,500. d. $1,100,500.
Answer:
c. $488,500
Explanation:
The computation of the total stockholder equity at the end of 2021 is given below:
Common stock issued (17000 × 8) $136,000.00
Another common stock issue (34000 × 9) $306,000.00
Net income $170,000.00
Less: Dividends $(85,000.00)
Less: Treasury stock purchase (3500 × 11) ($38,500.00)
Total Stock holder equity $488,500.00
g Todd Foley is applying for a $210,000 mortgage. He can select either a $1,470 monthly payment with no points or a $1,323 payment with 4 points. How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment
Answer:
57 months
Explanation:
Calculation to determine How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly
payments
Number of months to cover cost=(.04 x $210,000)/($1470-$1323)
Number of months to cover cost = $8400/147
Number of months to cover cost =57 months
Therefore the number of many months it will take Todd to cover the cost of the discount points if he takes the lower monthly
payments is 57 months
How does the design demonstrate the ability to analyze, research, and explore a variety of information sources to adequately address how the target market might interpret a designmessage
Answer:
Design should be analyzed, explored and researched carefully so that it adequately targets the audience.
Explanation:
A design has the ability o inclines people's decisions and allows for interpretation. The design is can be used to tell whether the product is going to stay in the market and helps in the identification of the target audience. The market can interpret the message in design in various ways such as by positive and negative. Thus design should be made keeping in mind the ethics and characteristics of the object. Design should match the traits of people.Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data is provided below. (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).) ($ in millions)CyberdyneVirtucon Net sales$39,905 $5,684 Net income 10,375 1,194 Operating cash flows 14,865 1,334 Total assets, beginning 58,905 15,184 Total assets, ending 60,905 14,884 Required: 1. Calculate the return on assets for both companies.
Answer:
Return on assets for Cyberdyne Systems and Virtucon are 0.2 and 0.1 respectively.
Explanation:
Return on asset is a measure of the ratio of the net income to the total average assets of an entity or organization. It givens and insight into the company's ability to generate profits from the use of its assets.
For Cyberdyne Systems, given that Net income $10,375 and the assets at the beginning and end of the period are $58,905 and $60,905
Total average assets = ($58,905 + $60,905)/2
= $59,905
Return on assets = $10,375/$59,905
= 0.17319088
To one decimal place = 0.2
For Virtucon, given that Net income $1,194 and the assets at the beginning and end of the period are 15,184 and 14,884
Total average assets = ($15,184 + $14,884)/2
= $15,034
Return on assets = $1,194/$15,034
= 0.079419981
To one decimal place = 0.1
Show the change in the market for gasoline that is consistent with the following statement:
"When a war breaks out in the Middle East, the price of gasoline rises, and the price of a used Cadillac falls." (Hint: Assume that used Cadillacs are gas guzzlers that are undesirable to own if gasoline becomes more expensive.)
Answer:
Supply reduces and supply curve shifts left. Price increasesExplanation:
The Middle East supplies a significant amount of the world's oil which means that conflict there could disrupt the movement of oil in the world.
In this scenario there is a conflict. This conflict would cause the supply of oil to reduce which means that the Supply curve will be forced to shift left to show that it has dropped.
This new supply curve will then intercept with the demand curve at a higher equilibrium price thereby leading to a price increase.
Leadership is primarily concerned with assuring:_________.
a. An effective daily operation in the present
b. A legacy of recognition from the past
c. A future vision and surviving change
d. None of these are correct
Answer:
a. An effective daily operation in the present
Explanation:
Leadership is a process of social influence in which it maxmize the others efforts for attainting the goals and objectives of an orgaznaition. It is the process of the social influence that maximize the other efforts
So as per the given situation, leadership is concerned with the effectieveness of the daily operation in the current situation
So as per the given situation, the option a is correct
You have just made your first $5,600 contribution to your retirement account. Assume you earn a return of 11 percent per year and make no additional contributions. a. What will your account be worth when you retire in 39 years
Answer:
the account be worth when you retire in 39 years is $327.932.30
Explanation:
The calculation of the account be worth when you retire in 39 years is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $5,600 × (1 + 0.11)^39
= $327,932.30
Hence, the account be worth when you retire in 39 years is $327.932.30
Coronado Company received proceeds of $209000 on 10-year, 5% bonds issued on January 1, 2016. The bonds had a face value of $220000, pay interest annually on January 1, and have a call price of 102. Coronado uses the straight-line method of amortization. Coronado Company decided to redeem the bonds on January 1, 2018. What amount of gain or loss would Coronado report on its 2018 income statement
Answer:
Coronado Company
The amount of gain or loss that Coronado would report on its 2018 income statement is:
= $13,200.
Explanation:
a) Data and Calculations:
Bonds proceeds = $209,000
Bonds face value = 220,000
Bonds Discounts = $11,000
Period of bonds = 10 years
Straight-line amortization = $1,100 annually
Interest payment = annually
Coupon rate rate = 5%
Fair value on January 1, 2017 = $210,100 ($209,000 + $1,100)
Fair value on January 1, 2018 = $211,200 ($210,100 + $1,100)
Call price = 102
Total call value (cash payment) = $224,400 ($220,000 * 102/100)
Loss to report on its 2018 income statement = $13,200 ($224,400 - $209,000 - $2,200)
Each unit requires 0.75 hours of direct labor at a cost of $6.50 per hour. What is the cost of direct labor for May?
Answer:
Direct labor cost = (units produced for May) x 0.75 x $6.50
Explanation:
Direct labor cost = units produced x direct labor hours x cost per unit
since units produced aren't given
Let units produced = 10,000 for May
Direct labor cost = 10,000 x 0.75 x $6.50 = $48,750
Suppose a company is considering the following 5 independent projects:
Project
A
B
C
D
E
initial Investment
$100
$300
$400
$500
-$200
NPV
$20
$30
$40
$45
$15
What projects, if any, should be selected if the capital budget is $500?
Answer:
A & C
Explanation:
NPV, The Net Present Value of an investment is used in finance to calculate the profitability of a projected investment.
Since the capital budgeted for any investment is $500 ; hence the total initial investment the company can make should not exceed $500 ;
The company will be looking indulge in the most profitable investment, this we can judge Yung the NPV of each investment :
Therefore, the total NPV on investment A and Investment C is the highest while maintaining the $500 capital budget value.
Investment : ___ NPV
$100 - - - - - - - - > $20
$400 - - - - - - - - > 40
$500 - - - - - - - - > $60
Organizational learning and creativity play an important role in helping managers improve their decisions. Managers must take steps to promote organizational learning and creativity at individual as well as group levels to improve the quality of decision making. Managers can encourage and promote entrepreneurship that mobilizes resources to take advantage of an opportunity to provide customers with new or improved goods and services. The quality of managerial decision making ultimately depends on innovative responses to opportunities and threats. How can managers increase their ability to make nonprogrammed decisions that will allow them to adapt to, modify, and even drastically alter their task environments so they can continually increase organizational performance
Answer:
Organization learning is the process by which the managers seeks employees desires and ability to understand the task environment.
Explanation:
Organizational learning plays an important role in managers by raising their ability to make programmer decisions that will allow them by adapting to, modifying, and even alter their work environment. Creativity helps managers in thinking and problem solving.Chance, Inc. sold 4,300 units of its product at a price of $137 per unit. Total variable cost per unit is $103, consisting of $71 in variable production cost and $32 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.a. $346,500 b. $499,500 c. $315,000 d. $661,500 e. $337,500
Answer:
Results are below.
Explanation:
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Unit product cost= direct material + direct labor + variable overhead
Unit product cost= $71
Now, the total sales and total variable cost:
Total sales= 4,300*137= $589,100
Total variable cost= 4,300*71= $305,300
Finally, the variable costing margin:
Variable costing margin= total sales - total variable cost
Variable costing margin= 589,100 - 305,300
Variable costing margin= $283,800
Allison bought a bond when it was issued by ABC Corporation 20 years ago. The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in eight years. Interest is paid every six months; the next interest payment is scheduled for six months from today. If the yield on similar risk investments is 8 percent, what should be the current market value (price) of the bond
Answer:
Current market value (price) of the bond = $ 1,081.11
Explanation:
The current market value (price) of the bond can be calculated using the following excel function:
Current market value (price) of the bond = PV(rate, NPER, -PMT, -FV) ........... (1)
Where:
rate = Semiannual yield on similar risk investments = yield on similar risk investments / 2 = 8% / 2 = 4%
NPER = Number of period = Year to maturity * Number of semiannuals in a year = 8 * 2 = 16
PMT = Payment = (FV * Coupon rate) / Number of semiannuals in a year = ($1,000 * 10%) / 2 = $50 = 50
FV = Face value = $1,000 = 1000
Substituting all the relevant value into equation (1), we have:
Current market value (price) of the bond = PV(4%, 10, -50, -1000)
Inputing =PV(4%, 10, -50, -1000) in any cell in excel sheet (Note: as done in the attached excel file), we have:
Current market value (price) of the bond = $ 1,081.11
Heidi is having trouble understanding the Black Lives Matter (BLM) movement and why her workplace sent out an email affirming the company's commitment to diversity and inclusion. This is probably because as a white woman from a small town with little exposure to diversity efforts, Heidi has not had much education about what BLM is trying to accomplish. She is wrestling with this new information about systemic racism and ultimately dismisses it as unfounded because it is contrary to her past experiences. This is an illustration of which of the following. Pick the best answer from the list based on our book's discussion of these terms:
a. Stereotyping
b. An entrenched mental model
c. Leader-Member Exchange Theory
d. Ethnocentrism
e. Social Identity Theory
Answer:
e. Social Identity Theory
Explanation:
Identity is the sense of who and what we are and also where do we belong. According to this social identity theory, people is most likely to [tex]\text{favor their ingroup}[/tex] over an outgroup as the former is a part of their self-identity. It means that people tend to overestimate the features of their own group to which they belong whereas they try to minimize the characteristics of the other groups.
In the context, Heidi is finding it difficult to understand about the new email by the company about the Black Lives Matter movement. She is a woman from a small town and do not have much exposure to the diversity efforts. She dismisses the email as unfounded as it was contrary to her past experiences. This shows an example of social identity theory.
Sales of battery-powered cars are increasing. People concerned with the environment are the primary buyers of battery-powered cars. Surveys show that people buy battery-powered cars are very concerned about pollution and its long-term impact on the environment. Other research also shows that people with battery-powered cars, compared to others, are more likely to use energy-saving appliances at home.
Which of the following statements best expresses the main conclusion of the above argument?
1. People concerned with the environment are likely to use energy-saving appliances.
2. Primary buyers of battery-powered cars are those concerned with the environment.
3. More people are concerned about the environment today than in the past.
Answer:
There are two statements that can better express the main conclusion of the above argument:
1. People concerned with the environment are likely to use energy-saving appliances.
2. Primary buyers of battery-powered cars are those concerned with the environment.
Explanation:
It is correct to say that both statements express the main conclusion of the above argument.
In the first premise it is said that "People concerned about the environment are the main buyers of battery-powered cars."
In the second premise, it is said that: "people with battery-powered cars, compared to others, are more likely to use energy-saving appliances at home."
Therefore, it is possible to conclude that the main buyers of battery-powered cars are those who care about the environment and also those who save energy at home.
Troy and Devon discuss adding an automobile detailing service at their convenience store based on their customers' point of view. Which of the following is a statement that a customer might consider regarding "promotion" in the marketing mix model?
a. Customers want a high-quality automobile detail service to have their cars cleaned.
b. Customers prefer to pay a fair amount of money to receive excellent service.
c. Customers want to know the benefits of using Troy's automobile detail service.
d. Customers prefer to use services that are near their work and home.
Answer:
c. Customers want to know the benefits of using Troy's automobile detail service.
Explanation:
since in the question it is mentioned that the troy and devon wants to discuss for adding up the detaling service of the automobile so here the promotion means that the customer wants to know about the benefits for using the automobile detailing service as this service is also at their convenience store
So, the option c is correct
Which is the type of stock that is commonly traded in stock exchanges? Hint: this is the form of company ownership that does not include voting rights on major issues such as the election of directors.
Answer:
Preferred shares
Explanation:
In simple words, Preferred shares (sometimes known as "preferred") are indeed a type of hybrid security that has both equities and guaranteed income features. A preferred share, like an equity instrument, indicates an ownership stake, has no expiration period and is recorded on the capital side of a corporation 's balance sheet.
ABC Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
Expected activity cost
Activity Estimated cost Product A Product B Total
Activity1 $22,000 400 100 500
Activity2 $16,240 380 200 580
Activity3 $14,600 500 250 750
The activity rate under the activity-based costing system for Activity 3 is closest to:
a. $70.45.
b. $28.87.
c. $19.47.
d. $58.40.
Answer:
it's c. $19.47
Explanation:
$14,600 divided by 750
The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as:
Answer: interest
Explanation:
Notes payable occurs when a promissory note is issued to the bearer by the firm. Notes payable can either be short term which is within a year or long term which is more than a year.
The difference between the amount received from issuing a note payable and the amount repaid at maturity is known as the interest.
What is the Selling Division’s opportunity cost per unit from selling 3,000 units to the Purchasing Division? g
Answer:
the opportunity cost per unit is $19
Explanation:
The computation of the opportunity cost per unit is shown below:
The opportunity cost per unit is
= Selling price per unit - variable cost per unit
= $34 - $15
= $19
Hence, the opportunity cost per unit is $19
The same should be considered and relevant
We simply deduct the variable cost per unit from the selling price per unit so that the opportunity cost could come
The per-unit opportunity cost of the Selling Division is $19 and the total opportunity cost will be $57,000.
What is an opportunity cost?Opportunity cost refers to the cost of a foregone alternative. It is the profit that can be achieved by choosing another available alternative.
In the given question, the company has two options, either to sell the product in the market or to sell it to the purchasing division.
If the company sells the product to the Purchasing Division, the opportunity cost will be the profit that can be achieved by selling the same in the market.The opportunity cost will be the contribution lost by not selling the product in the market.
The opportunity cost will be:
[tex]\rm Opportunity \:cost = Selling\:price - Variable \:cost\\\\\rm Opportunity \:cost = \$34 - \$15\\\\\rm Opportunity \:cost = \$19[/tex]
The number of units sold to the Purchasing Division is 3,000.
Therefore the total opportunity cost will be:
[tex]\rm Total \:opportunity \:cost = Number \:of\:units \times Opportunity \:cost\:per\:unit\\\\\rm Total \:opportunity \:cost = 3,000 \times \$19\\\\\rm Total \:opportunity \:cost =\$57,000[/tex]
Therefore the opportunity cost is $57,000.
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