Answer: $3.10
Explanation:
Accounting breakeven = Fixed costs / Contribution margin
Fixed costs = Fixed costs + Depreciation = 27,000 + 18,000 = $45,000
50,000 units = 45,000 / Contribution margin
Contribution * 50,000 = 45,000
Contribution = 45,000 / 50,000
Contribution margin = 0.9
Contribution margin = Sales - Variable cost
0.9 = 4 - Variable cost
Variable cost = 4 - 0.9
= $3.10
1. ______ are costs that do not require a monetary payment
A) Accounting costs
B) Explicit costs
C) All opportunity costs
D) Implicit costs
2. Joe runs a restaurant. He pays his employees $200,000 per year. His ingredients cost him $50,000 per year. Prior to running his restaurant, Joe was a lawyer earning $150,000 per year. What would economists say is Joe’s cost of running the restaurant?
A) $150,000
B) $200,000
C) $250,000
D) $400,000
1. The cost that does not need a monetary payment is the implicit cost.
2. The cost of running the restaurant is $400,000.
1.
Implicit cost is normally:
The opportunity cost that occurred at the time when the company used the resources i.e. owned for the production without considering any payment regarding the resources.Here monetary payment should not be involved.Therefore rest of the given costs should involve monetary payments.
2. The cost of running the restaurant is as follows:
= Employee payment + ingredients cost + lawyer earnings
= $200,000 + $50,000 + $150,000
= $400,000
Therefore we can conclude that
1. The cost that does not need a monetary payment is the implicit cost.
2. The cost of running the restaurant is $400,000.
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The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $8.10/unit; direct labor, $11.10/unit; and manufacturing overhead, $373,100 $9.10/unit. Required: If anticipated production for 2013 is 41,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)
Answer:
Variable costing $28.3
Absorption costing $37.4
Explanation:
Calculation to determine the unit cost using variable costing and absorption costing.
VARIABLE COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit
Units cost $28.3
ABSORPTION COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit.
Fixed manufacturing overhead per unit $9.10/unit.
($373,100 ÷ 41,000 units)
Units cost $37.4
Therefore the unit cost using variable costing and absorption costing are:
Variable costing $28.3
Absorption costing $37.4
As a customer acquisition technique, events: a. Are considered mostly ineffective compared to mobile advertising or social media promotions b. Tend to be used independently of other acquisition techniques c. Can happen in an online environment d. Are primarily an offline channel
Answer: a. Are considered mostly ineffective compared to mobile advertising or social media promotions.
Explanation:
Customer acquisition techniques refers to the strategies that are helps in the identification of the potential leads which are then converted into active customers. Such techniques include personalized offer design, automated email marketing etc.
As a customer acquisition technique, events are considered mostly ineffective compared to mobile advertising or social media promotions.
Coke and Pepsi are examples of
Coke and Pepsi are examples of soft drinks.
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Demand for a specific design of dinning sets has been fairly large in the past several years and Statewide Furnishings, Inc. usually orders new dinning sets 10 times a year. It is estimated that the ordering cost is $400 per order. The carrying cost is $50 per unit per year. Furthermore, State Wide Furnishings, Inc. has estimated that the stock out cost is $120 per unit per year. Based on forecast, the annual demand is 600 units. State Wide Furnishings, Inc. has 350 working days in a year and its lead time is 14 working days.
Assume shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the annual ordering cost.
a. 592.82
b. 1472.01
c. 2051.28
d. 4116.11
e. None of the above
Answer:
e. None of the above
Explanation:
Annual demand, D = 600 units
Ordering cost, S = $400
Holding cost, H = $50
Economic order quantity without stock-out = SQRT(2*D*S/H)
Economic order quantity without stock-out = SQRT(2*600*400/50)
Economic order quantity without stock-out = 98
Total annual ordering cost = (D/Q)*S + (Q/2)*H
Total annual ordering cost = (600/98)*$400 + (98/2)*$50
Total annual ordering cost = $2,448.97 + $2,450
Total annual ordering cost = $4,898.97
Presented below are definitions of certain terms. Select the appropriate term from the dropdown list. Definitions 1. Quantity of input required if a production process is 100% efficient. 2. Managing by focusing on large differences from standard costs. 3. Record that accumulates standard cost information. 4. Preset cost for delivering a product or service under normal conditions. a. Standard cost card b. Management by exception c. Standard cost d. Ideal standard
Answer:
1. Ideal standard
2. Management by exception
3. Standard cost card
4. Standard cost
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.
On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.
1. Ideal standard: quantity of input required if a production process is 100% efficient.
2. Management by exception: Managing by focusing on large differences from standard costs.
3. Standard cost card: record that accumulates standard cost information.
4. Standard cost: preset cost for delivering a product or service under normal conditions.
Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5,000 in currency into the bank, and the bank adds that currency to its reserves. What amount of excess reserves does the bank now have
Answer:
$4000
Explanation:
Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves
Total deposits = $100,000 + $5,000 = $105,000
Required reserves = 0.2 x 105000 = 21,000
total reserves = $20,000 + 5000 = 25,000
excess reserves = 25,000 - 21,000 = 4000
What is the IRR, assuming an industrial building can be purchased for $250,000 and is expected to yield cash flows of $18,000 for each of the next five years and be sold at the end of the fifth year for $280,000
Answer:
9.2%
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 = $-250,000
Cash flow in year 1 = $18,000
Cash flow in year 2 = $18,000
Cash flow in year 3 = $18,000
Cash flow in year 4 = $18,000
Cash flow in year 5 = $18,000 + $280,000
IRR = 9.2%
To determine 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.
Conflicts of interest a. have become less frequent today. b. always involve personal financial gain. c. are morally worrisome only when the employee acts to the detriment of the company. d. occur when employees have special or private interests that are substantial enough to interfere with their job duties.
Answer:
D
Explanation:
Conflicts of interest occur when employees have special or private interests that are substantial enough to interfere with their job duties
For example, imagine that there is an analyst who works in a firm. He comes across material non public information that the value of the shares of the company is about to plummet. This analyst has shares in the company.
A conflict of interest arises, he can either trade his shares and engage in insider trading or not trade his shares so as to protect the integrity of the capital market
the ethical step is not to trade
WHAT ARE THE BENEFITS OF PHYSICAL ERGONOMICS
Answer:
▫️Increased savings. • Fewer injuries. • More productive and sustainable employees. ...
▫️Fewer employees experiencing pain. • Implementing ergonomic improvements can reduce the risk factors that lead to discomfort.
▫️Increased productivity. • ...
▫️Increased morale. • ...
▫️Reduced absenteeism. •
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Explanation:
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Macrozine Inc. provides support for employees faced with ethical dilemmas. An ethics compliance officer is available in the Human Resources office or through an employee hotline. This is an example of ethical:_________
a. reasoning
b. awareness
c. whistle-blowing
d. action
Answer:
d. action
Explanation:
In Business, this would be an example of ethical action. These are actions that companies take in order to prove that they are committed to their employees. Especially making sure that they are safe, respected, and mentally/emotionally good within the work environment. By providing such services such as an employee hotline and a HR department they are providing resources for the employees to voice their concerns and needs in case of any dilemma in the company.
price elasticity of demand
Answer:
Price elasticity of demand is a measure of the change in the quantity purchased of a product in relation to a change in its price.
Explanation:
Paid for wages Rs. 2000 and for commission Rs. 3000. Journal entry for this?
Answer:
Wages A/c Dr.
To cash A/c
(being wages paid)
Commission A/c Dr
To cash A/c
(being comission paid)
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,827 bars) are as follows: Ingredient Quantity Price Cocoa 600 lbs. $0.40 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.70 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
Answer:
Roanoke Company
The standard direct materials cost per bar of chocolate is:
= $0.33.
Explanation:
a) Data and Calculations:
A batch of chocolate = 1,827 bars
Standard Costs for a batch:
Ingredient Quantity Price
Cocoa 600 lbs. $0.40 per lb.
Sugar 180 lbs. $0.60 per lb.
Milk 150 gal. $1.70 per gal.
Ingredient Quantity Price Total Cost
Cocoa 600 lbs. $0.40 per lb. $240.00 (600 * $0.40)
Sugar 180 lbs. $0.60 per lb. 108.00 (180 * $0.60)
Milk 150 gal. $1.70 per gal. 255.00 (150 * $1.70)
Total cost of batch of chocolate = $603.00
Cost per bar = $0.33 ($603.00/1,827)
When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices
Answer:
1. Responsive
2. Elastic
Explanation:
When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.
This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.
Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.
In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.
Calculate:
a. Return on equity = __________
b. Return on total assets = __________
c. Gross profit margin = __________
d. Net profit margin = __________
Answer:
return on equality
return on way
return on potos
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Return on Equity can be calculated as Return on Equity = Net Income / share holders equity. Return on Equity = 726 /2780. Thus, Return on Equity = 26.11%
What is Return on Equity?The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE). A corporation is better at turning its equity financing into profits the higher the ROE.
Although average ratios and those deemed "good" and "poor" might differ significantly from industry to industry, a return on equity ratio of 15% to 20% is typically regarded as good. The ratio would be regarded as low at 5%.
b)Return on Asset Ratio
Return on Asset Ratio = Net Income / Total Assets
Return on Asset Ratio = 726/ 5,320
Return on Asset Ratio = 13.65%
c)Gross Profit Margin
Gross Profit Margin = Gross Profit / Net Sales
Profit Margin = 1,558/ 2,768
Profit Margin =56.29%
d)Net Profit Margin
Net Profit Margin = Net Income / Net Sales
Profit Margin = 726/ 2,768
Net Profit Margin =26.23%
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As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,250 1,750 2,750 2,950 Hours per machine 318 194 393 315 Number of machines 5 7 6 5 Find the average of the monthly productivity figures (units per machine hour).
Answer: 2.81 per hour
Explanation:
Average monthly productivity = (January productivity + February productivity + March productivity + April productivity) / 4
January productivity:
= Units produced / ( Hours per machine * Number of machines )
= 2,250 / ( 318 * 2 )
= 3.537
February productivity:
= 1,750/ ( 194 * 4 )
= 2.255
March productivity:
= 2,750 / ( 393 * 3 )
= 2.332
April productivity:
= 2,950/ ( 315 * 3)
= 3.121
Average monthly productivity = (3.537 + 2.255 + 2.332 + 3.121)/ 4
= 2.81 per hour
Several years ago, Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world. This market was not perfectly competitive because this situation violated the:
Answer:
price-taking assumption.
free entry assumption.
Explanation:
A perfectly competitive market is one in which different firms compete for consumers of their products. The characteristics of the perfectly competitive market are:
- products are nearly identical
- all the firms are price takers. That is they are not able to determine price independently
- buyer knowledge of information about products is perfect and available to all
- free entry and exit to the market
- resources are perfectly mobile
In the given scenario above two of these rules are not obeyed.
Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world.
So they determine the price ( they are not price takers)
Also since they own nearly all the aluminium reserves there is no free entry for new firms
In the two-country model of international labor mobility:________
A) the long-run equilibrium assumes countries' policies place significant restrictions on migration.
B) the long-run equilibrium assumes that desired migration exceeds actual migration.
C) the long-run equilibrium assumes that actual migration exceeds desired migration.
D) the long-run equilibrium is the result of a divergence of the real wages in the two countries.
E) the long-run equilibrium assumes that desired and actual migration are equal.
Larned Corporation recorded the following transactions for the just completed month.
$79,000 in raw materials were purchased on account.
$77,000 in raw materials were used in production. Of this amount, $65,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $109,500 were paid in cash. Of this amount, $100,900 was for direct labor and the remainder was for indirect labor.
Depreciation of $195,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer:good question. Wait for the answer
Explanation:
Assume that, on January 1, 2021, Sosa Enterprises paid $2,140,000 for its investment in 33,000 shares of Orioles Co. Further, assume that Orioles has 110,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Orioles' identifiable net assets was $7,160,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value of its identifiable net assets is attributable to $1,900,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Orioles during 2021: Net Income $ 400,000 Dividends declared and paid $ 240,000 Market price of common stock on 12/31/2021 $ 80 /share What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.
Answer:
$2,152,750
Explanation:
Calculation to determine What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.
Acquisition price for 30% share $2,140,000
($33,000 / $110,000 * 100=30%)
Add: Net income $120,000
($ 400,000 * 30%)
Less: Dividend ($72,000)
($240,000 * 30%)
Less: Excess depreciation ($35,250)
($940,000 / 8 yrs*30%)
[$10,000,000-$7,160,000-$1,900,000)=$940,000]
Investment reported in Balance $2,152,750
Therefore the amount that Sosa Enterprises would report in its year-end 2021 balance sheet for its investment in Orioles Co is $2,152,750
On December 31, Ott Co. had investments in equity securities as follows:
Cost Fair value Lower of cost or fair value
Mann Co. $10,000 $8,000 $8,000
Kemo, Inc. $9,000 $11,000 $9,000
Fenn Corp. $11,000 $9,000 $9,000
$30,000 $28,000 $26,000
The Mann investment is classified as held-to-maturity, while the remaining securities are classified as available-for-sale. Ott does not elect the fair value option for reporting financial assets. Ott's December 31, Year 1, balance sheet should report total marketable debt securities as:_____.
a. $29,000.
b. $26,000.
c. $30,000.
d. $28,000.
Answer:
c. $30,000.
Explanation:
The calculation of the total marketable debt securities reported in the balance sheet is given below;
= Mann Co cost + Kemo Co fair value + Fenn corp fair value
= $10,000 + $11,000 + $9,000
= $30,000
Hence, the total marketable debt securities reported in the balance sheet is $30,000
Therefore the option c is correct
Annual interest rate 4.00%
Loan Amount 4923275
Years 7
Grace Period 2 Years
Loan Period 5 Years
Total 7 Years
Project 1.5 years (development or initial investment period)
further 10 years of operation (life of the project)
Repayable in 5 equal installments.
I need figures for interest expense, interest paid, and principal repayment. Anyone can help me?
Answer:
formula is PRT÷10
Explanation:
so solve it
Plant assets sometimes are purchased as a group in a single transaction for a lump-sum price. This transaction is called a __________, or group, bulk, or basket purchase.
Answer:
Lump-Sum Purchase
Explanation:
Plant assets
This is simply known as well founded or important assets of an essential or useful life of more than one accounting period and are normally used in the operation of a business. One of the major characteristic of plant assets is that they are often used in operations.
They are known also as resources that has physical substance, used mainly in the operations of a business and it is not intended for sale to customers.
Plant assets are also called property, plant, equipment; plant and equipment; and fixed assets.
It is also discard (done away with) if it is not useful anymore to the company, and it has no market value.
what is reductionasim
Answer:
Thus, the ideas that physical bodies are collections of atoms or that a given mental state (e.g., one person's belief that snow is white) is identical to a particular physical state (the firing of certain neurons in that person's brain) are examples of reductionism.
Explanation:
Tin Roof's net cash flows for the next three years are projected at $72,000, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. What is the value of the firm if the WACC is 9.32%
Answer:
$1,279,622.65
Explanation:
The value of the company is the present value of its future cash flows for the three-year planning horizon plus the present value of its continuing value beyond year 3, all discounted using the WACC as the appropriate discount rate.
continuing value=year 3 cash flow*(1+terminal growth rate)/(WACC-terminal growth rate)
continuing value= $84,000*(1+3.2%)/(9.32%-3.2%)=$1,416,470.59
present value of continuing value=$1,416,470.59/(1+9.32%)^3=$1,084,198.23
present value of 3-year cash flows=$72000/(1+9.32%)^1+$78,000/(1+9.32%)^2+$84,000/(1+9.32%)^3
present value of 3-year cash flows=$195,424.42
value of the company=$1,084,198.23+$195,424.42
value of the company=$1,279,622.65
Team Sports has 4.9 million shares of common stock outstanding, 2.9 million shares of preferred stock outstanding, and 29 thousand bonds. If the common shares are selling for $3.90 per share, the preferred share are selling for $15.9 per share, and the bonds are selling for 98.91 percent of par, what would be the weight used for common stock in the computation of Team's WACC
Answer:
The weight used for common stock in the computation of Team's WACC is 20.35%.
Explanation:
Since par value of a bond is $1,000, we have:
Bond selling price = Bond par value * Selling price percentage = $1,000 * 98.91% = $989.10
the weight used for common stock in the computation of Team's WACC can be calculated as follows:
Value of common stock = Number of shares of common stock outstanding * Common stock price per share = 4,900,000 * $3.90 = $19,110,000
Value of preferred stock = Number of shares of preferred stock outstanding * Preferred stock price per share = 2,900,000 * $15.9 = $46,110,000
Value of bond = Number of bonds * Bond selling price = 29,000 * $989.10 = $28,683,900
Team's total value = Value of common stock + Value of preferred stock + Value of bond = $19,110,000 + $46,110,000 + $28,683,900 = $93,903,900
Therefore, we have:
Weight of common stock = Value of common stock / Team's total value = $19,110,000 / $93,903,900 = 0.2035, or 20.35%
Therefore, the weight used for common stock in the computation of Team's WACC is 20.35%.
If the United States passed a tariff on imported steel which of the following would directly benefit?
A. Foreign steal companies
B. All Americans would benefit because of the lower price for steel
C. Businesses which imports steel
D. American steel producers
businesses which imports steel C
Kevin promises to pay Macarena, his daughter, $5,000 if she obtains her degree at Brookdale community College, where she is currently in her first year. Macarena graduates. If a Court refuses to enforce the agreement it would most likely be because:
Question Completion with Options:
A. Macarena finished college.
B. Obtaining a college degree benefits Macarena.
C. A job can be hard to find after college.
D. Macarena was already in college.
Answer:
If a Court refuses to enforce the agreement it would most likely be because:
D. Macarena was already in college.
Explanation:
Macarena was currently in her first year when the promise was made by her father. This means that Macarena is not giving any consideration for the father's promise. But, if she enters the college based on the promise and eventually graduates in the college, then the court will not likely refuse to enforce the agreement. Kevin's promise to pay Macarena $5,000 is not enforceable because of past consideration.
Using the high-low method, the fixed cost is calculated ______. Multiple select question. by adding the total cost to the variable cost using either the high or low level of activity before the variable cost is calculated after the variable cost per unit is calculated
Answer:
is calculated after the variable cost per unit is calculated
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities, etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses, etc.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Using the high-low method, the fixed cost is calculated : After the variable cost per unit is calculated.
What is costing?Costing refers to the measurement of the cost of production of goods and services whereby, the fixed costs and variable costs associated with production are examined.
Fixed costs are costs that do not vary with the level of output, while variable cost are cost that varies with the activity level.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Hence, using the high-low method, the fixed cost is calculated after the variable cost per unit is calculated.
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