Answer:
Vortex Company
Department A Department B
a. Contribution margin $246,100 $15,700
Net income $188,270 ($16,870)
b. Department B should not be eliminated unless the indirect costs allocated to it can be eliminated as well.
Explanation:
a) Data and Calculations:
Department A Department B
Sales $832,000 $448,000
Cost of goods sold 410,000 291,200
Gross profit $422,000 $156,800
Direct expenses:
Salaries 117,000 86,000
Insurance 13,500 10,900
Utilities 21,000 25,500
Depreciation 18,000 13,500
Maintenance 6,400 5,200
Total direct expenses $175,900 $141,100
Contribution margin $246,100 $15,700
Total indirect expenses 57,830 32,570
Net income $188,270 ($16,870)
Department Square footage Number of employees
A 29,400 66
B 12,600 44
Total 42,000 110
Indirect Costs: Costs Rates Department A Department B
Salaries $29,000 $0.02266 $18,850 $10,150 ($448/$1,280)
Insurance 6,600 $0.15714 4,620 1,980
Depreciation 14,800 $0.35238 10,360 4,440
Office expenses 40,000 $363.64 24,000 16,000
Total costs $90,400 $57,830 $32,570
Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.
A. $47,800
B. $70,000
C. $52,000
D. $40,100 20.
Answer:
A. $47,800
Explanation:
Calculation to determine the net cash outflow for the new machine after considering the sale of the old machine
First step
Loss on sale of old machine = 18000 - 32,000
Loss on sale of old machine = ($14,000)
Second step
Tax savings from loss on sale=14,000 x 30%
Tax savings from loss on sale = $4200
Third step
Net benefit from sale of old machine = Sales proceeds + tax on loss of sale
Net benefit from sale of old machine= $18,000 + $4200
Net benefit from sale of old machine= $22,200
Now let determine the Net cash outflow for new machine
Net cash outflow for new machine = Cost of new machine – Net benefit
Net cash outflow for new machine= $70,000 – $22,200
Net cash outflow for new machine= $47,800
Therefore the net cash outflow for the new machine after considering the sale of the old machine is $47,800
Last year, 7,980 units were produced and 7,680 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be: Multiple Choice the same as absorption costing.
Complete Question:
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 35 Selling and administrative $ 14 Fixed costs per year: Production $ 175,560 Selling and administrative $ 140,450 Last year, 7,980 units were produced and 7,680 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Multiple Choice
$6,600 less than under absorption costing.
$7,680 less than under absorption costing.
the same as absorption costing.
$7,680 greater than under absorption costing.
Answer:
The Southern Corporation
The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
$6,600 less than under absorption costing.
Explanation:
a) Data and Calculations:
Variable costs per unit:
Production $ 35
Selling and administrative $ 14
Fixed costs per year:
Production $ 175,560
Selling and administrative $ 140,450
Production units last year = 7,980 units
Sales units last year = 7,680 units
Ending inventory = 300 (7,980 - 7,680) units
Value of Ending inventory:
1. Variable Costing:
Production $ 35 * 300 = $10,500
2. Absorption Costing:
Variable Production $ 35 * 7,980 = $279,300
Fixed Production overhead $ 175,560
Total production costs = $454,860
Units produced = 7,980
Unit cost = $57
Ending inventory = $17,100 ($57 * 300)
Difference = $6,600 ($17,100 - $10,500)
out line four roles played by entrepreneurs in Kenya
Answer:
The roles of entrepreneurs in Kenya are:
Looking out for and spotting opportunities in the marketCreating jobsIncreasing the Internally Generated Revenue of KenyaDevelopment of InfrastructureExplanation:
Entrepreneurs know how to spot changes and patterns in business trends. When the market begins to tilt in a particular direction, entrepreneurs are quick to spot and take advantage of such. Many times, they even think of the demand before the market knows it to exist.Job creation is one of the reasons why SMEs are invaluable to any economy. Kenya inclusive. When a business does well, where it is located, this translates to increased revenue for the government. There are two main channels via which the government can make money from businesses:A. Company Income Tax
B. Taxes paid to the government by employees working in such establishments.
Countries that are business savvy run an environment that is enabling for entrepreneurs whilst providing tax incentives for top talent. Hence attracting more revenue to their coffers.
Because governments need businesses to thrive, they provide every amenity that is necessary for businesses and their staff to be comfortable in such environments. This way, entrepreneurs indirectly influence the development of infrastructure.Cheers
Begin with a single sum of money at period 0. First, calculate a future value of that sum at 12.01%. Then discount that future value back to period 0 at 11.99%. In relation to the initial single sum, the discounted future value:_________
a. Is greater than the original amount
b. Is less than the original amount
c. Is the same as the original amount
d. Cannot be determined with the information given
Answer:
A
Explanation:
Let single sum = 100
The formula for calculating future value:
FV = P (1 + r)^nm
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
Future value in year 1 = 100 x 1.1201 = 112.01
Present value = future value / (1 + r)
112.01 / 1.1199 = 100.02
The discounted future value, 100.02 , is greater than, 100, the value at the initial stage by 0.02
During Year 1, Hardy Merchandising Company purchased $20,000 of inventory on account. Hardy sold inventory on account that cost $15,000 for $22,500. Cash payments on accounts payable were $12,500. There was $20,000 cash collected from accounts receivable. Hardy also paid $4,000 cash for operating expenses. Assume that Hardy started the accounting period with $18,000 in both cash and common stock.
Required:
a. Record the events in a horizontal statement model.
b. What is the balance of accounts recelvable at the end of 2018?
c. What is the balance of accounts payable at the end of 2018?
d. What are the amounts of gross margin and net income for 2018?
Answer:
[b] = $ 2500
[c] = $ 7500
[d] = Gross margin = 22500 – 15000 = $ 7500
Net Income = 7500 – 4000 = $ 3500
[e] = $ 3500
Explanation:
Here the solution is given as follows,
Terry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas, oil, and maintenance costs are 34 cents per mile. Terry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Terry expect to incur during July if he drove the car 1,534 miles
Answer:
Total cost= $984.62
Explanation:
Giving the following information:
Fixed cost= $460
Unitary variable cost= $0.34 per mile
Miles driven= 1,534
First, we need to establish the total cost formula:
Total cost= fixed cost + unitary variable cost*number of units
Total cost= 460 + 0.34*x
x= number of miles
Now, the total cost for the month:
Total cost= 460 + 0.34*1,543
Total cost= $984.62
You purchased a stock at a price of $47.52. The stock paid a dividend of $1.55 per share and the stock price at the end of the year was $52.34. What was the total return for the year
Answer:
13.40%
Explanation:
The price of the stock is $47.52
The stock paid a dividend of $1.55
The stock price at the end of the year is $52.34
Therefore the total return for the year can be calculated as follows
= 52.34-47.52+1.55/47.52
= 6.37/47.52
= 0.1340×100
= 13.40%
Hence the total return for the year is 13.40%
)An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxablecorporate paying 8.25 percent. What is the minimum marginal tax rate the investor must have toconsider buying the municipal bond
Answer: 30.3%
Explanation:
Because taxes are not paid on municipal bond interest, their interest rates are usually lower with the difference accounting for the taxes paid.
For a municipal bond to be similar to a corporate bond, the tax rate must be such that it makes them equal:
Municipal bond return = Corporate bond return * (1 - tax rate)
5.75% = 8.25% * (1 - tax)
1 - tax rate = 5.75% / 8.25%
1 = 0.6969697 + Tax rate
Tax rate = 1 - 0.6969697
= 30.3%
Higher customer satisfaction and more efficient use of resources are impacts of businesses that operate with a _______
a: cost saving motive
b: customer service motive
c: efficiency motive
d: profit motive
Answer:
customer service motive
Answer:
I believe it's C: efficiency motive.
Explanation:
I did inspect element on course hero for the same question, and the answer was highlighted. Additionally, the question seems to highlight efficient uses of resources purposefully in businesses, so it seems that efficiency motive also goes hand in hand with that.
Entries for Notes Payable A business issued a 60-day, 10% note for $96,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar.
Answer:
Business A
Journal Entries:
Debit Accounts Payable $96,000
Credit 10% Notes Payable $96,000
To record the issuance of a 60-day, 10% note to a creditor on account.
Debit 10% Notes Payable $96,000
Debit Interest Expense $1,600
Credit Cash $97,600
To record the payment of the note at maturing, including interest.
Explanation:
a) Data and Analysis:
Accounts Payable $96,000
10% Notes Payable $96,000
10% Notes Payable $96,000
Interest Expense $1,600
Cash $97,600
Machinery was purchased for $340,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $60,000 salvage value at the end of its 5-year useful life. Annual depreciation expense using the straight-line method will be a. $78,800. b. $57,200. c. $66,800. d. $56,000.
Answer:
$66,800
Explanation:
Depreciation is used in expensing the cost of an asset
Depreciation reduces the value of an asset
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Cost = $340,000. + $14,000 + $40,000 = $394,000
($394,000 - $60,000) / 5 = $66,800
Dome Metals has credit sales of $144,000 yearly with credit terms of net 120 days, which is also the average collection period. Assume the firm adopts new credit terms of 5/10, net 120 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 10 percent. The new credit terms will increase sales by 20% because the 5% discount will make the firm's price competitive.
Required:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
b. Should the firm offer a discount?
Answer:
a. The net change in income if the new credit terms are adopted is a net gain of $2,880.
b. Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
Explanation:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
Old sales = $144,000
New Sales = Old sales * (100% + Percentage sales increase) = $144,000 * (100% + 20%) = $172,800
Increase in Sales = New Sales - Old sales = $172,800 - $144,000 = $28,800
Increase in Profit from new sales = Profit Margin * Increase in Sales = 25% * $28,800 = $7,200
Average Accounts Receivable without discount = Average Collection Period * Average daily Sales = 120 * ($144,000 / 360) = $48,000
Average Accounts Receivable with discount = Average Collection Period * Average daily Sales = 10 * ($172,800 / 360) = $4,800
Reduction in Accounts Receivable = Average Accounts Receivable without discount - Average Accounts Receivable with discount = $48,000 - $4,800 = $43,200
Loan balance as a result of reduction in accounts receivable. Therefore, we have:
Interest Saving = Interest Rate * Loan Reduction = 10% * $43,200 = $4,320
Cost of Discount = Discount Rate * New Sales = 5% * $172,800 = $8,640
Net Gain (loss) = Increase in Profit form new sales + Interest Saving - Cost of Discount = $7,200 + $4,320 - $8,640 = $2,880
Therefore, the net change in income if the new credit terms are adopted is an net gain of $2,880.
b. Should the firm offer a discount?
Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
khái niệm giao tiếp trong tổ chức
Answer:
bu kin jhu
Explanation:
John jvghh bugs HHH jhu UV juggle
This Question: 1 pt
The law of demand
shown graphically by a
demand curve
When the price of a good drops, consumers purchase more of it because of
O A. the substitution effect only.
OB. neither the income nor the substitution effect.
O C. the income effect only
OD. both the income and substitution effect.
Click to select your answer
Type here to search
о
Answer:
C. the income effect only
Explanation:
In microeconomics, the income effect is the change in demand for a good or service caused by a change in a consumer's purchasing power resulting from a change in real income. This change can be the result of a rise in wages etc., or because existing income is freed up by a decrease or increase in the price of a good that money is being spent on
Inc. has just now paid a dividend of $2.50 per share (Div0); its dividends are expected to grow at a constant rate of 4 percent per year forever. If the required rate of return on the stock is 14 percent, what is the current value of the stock, after paying the dividend?
a. $26
b. $25
c. $17.86
d. $21.33
Answer: a. $26
Explanation:
Given the details in the question, the value of the stock can be calculated by the Gordon Growth Model:
= Next dividend / (Required return - growth rate)
= (Current dividend * growth rate) / (Required return - growth rate)
= (2.50 * (1 + 4%)) / (14% - 4%)
= 2.625 / 10%
= $26.25
= $26
Malouka participates in a research project for a large consumer behavior research firm. Each time she purchases items in a grocery store, she scans the barcodes of her products into an app, which sends her purchase data to the firm for analysis. Malouka is working with an example of automation known as __________.
Malouka is working with an automation example that we called the importing/exporting data.
The following information should be considered for the given situation:
Since she scans the barcodes of that product she purchased even all products are associated with the barcodes via using the mobile app.Also, she offered the research firm having more information like time, location, quantity, gender,etc.Therefore we can conclude that Malouka is working with an automation example that we called the importing/exporting data.
Learn more about the automation here: brainly.com/question/3147939
Based on a predicted level of production and sales of 20,000 units, a company anticipates total variable costs of $96,000, fixed costs of $24,000, and operating income of $163,200. Based on this information, the budgeted amount of contribution margin for 17,000 units would be:
The budgeted value of the contribution margin for 17,000 units should be $159,120.
But before determining the contribution margin value first determine the following amounts:
Current contribution margin = Fixed costs + Target operating income
= $24,000 + $163,200
= $187,200
Now contribution margin per unit is
= $187,200 ÷ 20,000 units
= $9.36 per unit
And, finally the contribution margin value should be
= 17,000 units × $9.36 per unit
= $159,120
Therefore, we can conclude that The budgeted value of the contribution margin for 17,000 units should be $159,120.
Learn more about the contribution margin here: brainly.com/question/15186113
What promotional strategy is being employed when Blue Cross/Blue Shield (a health insurance company) runs advertisements targeting Boeing Co. employees, in hopes that they will persuade their bosses to consider adopting a Blue Cross/Blue Shield insurance plan for their company
Answer:
Pull Strategy
Explanation:
Distribution Strategies
This simply covers the most favorable way to deliver product or service to target market/audience.
Types of distribution strategies
They includes :
1. Push Strategy:
2. Pull Strategy:
3. Combination of both: that is the use of both push and pull strategies.
Pull Strategy
In this type of strategy, marketing in this aspect is solely directed on the end consumer, who thereafter demands it from the retailer, who also then demands it from the wholesaler and lastly then the manufacturer. It is simply pulling of products through the channel. This strategy is used when consumers gather information and decide about their purchases before entering the retail outlet. Company moves their products through the distribution channel by building consumer demand for the products and thereafter influence/convince retailers to stock these products.
Types of marketing communications used in Pull strategy selling. They includes:
1. Advertising,
2. Consumer sales promotions,
3. Public relation.
When a company uses advertising to increase demand for their product or services, the pull promotional strategy is used. Blue Cross/ Blue shield uses the pull promotion strategy.
What is a strategy?
A strategy refers to the method or plan used to achieve the organization's goals.
A Pull marketing strategy is a type of strategy employed by an organization to create the demand for a product by various means like Sales promotion and discount, Advertising, Email marketing, Social media networks, etc.
Different marketing activities are involved to pull customers to their products.
Therefore, Blue cross employed the pull promotional strategy to target Boeing co. employees.
Learn more about Strategy here:
https://brainly.com/question/15860574
A frozen foods company changes an ingredient to meet a new government standard. This is an example of
O following a federal regulation.
O lowering prices for customers.
O reducing the risk for consumers.
o creating a new product.
On January 1, a machine with a useful life of 10 years and a residual value of $76000 was purchased for $280000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation
Answer:
ill try but no promises ok
difference between Kenyan and china culture
Chinese culture is one of the world's oldest cultures, tracing back to thousands of years ago. Important components of Chinese culture includes ceramics, architecture, music, literature, martial arts, cuisine, visual arts, philosophy and religion
Help please
Identify ways to reduce shrinkage
Answer:
Increase Employee Accountability. ...
Train Staff to Follow Security Policies and Procedures. ...
Consider Your Store Layout. ...
Develop a Culture of Loss Prevention. ...
Invest in Automated Cash Management Technology.
Describe two distinct reasons why someone who has never used a drug in his or her life might refuse a test at work. Convert those reasons into well-founded ethical arguments.
Answer: See explanation
Explanation:
The two main reasons why someone who has never used a drug in his or her life might refuse a test at work are provided below:
1. If there's no health related reason for the employer to perform the test.
2. When there's no reason by the employee to believe that drug use is occurring.
It should be noted that an employee can refuse a testing unless testing is mandatory for the job or when there's reasonable suspicion. In a situation where there's suspicion, then ethically, the drug test is reasonable as an employee who uses drug can be less productive than others.
Based on this argument, the privacy of the employee should be respected. For example, in a scenario whereby an employer request for a urine sample of the employee, this is an invasion of privacy. Even if the worker took the substance tbe previous night, he or she didn't take it while at work and hence, that isn't the concern of the employer.
Also, there is an argument of freedom. As individuals, we have the right to pursue our own happiness. This is a legal argument.
A manager spent 5 hours of his day in meetings. If he said that he spent 70% of his day, how many total hours did he work?
Answer:
The total hours the manager worked
= 7.14 hours
Explanation:
a) Data and Calculations:
Time spent by a manager in meetings per day = 5 hours
Percentage of time spent in meetings = 70%
Total hours the manager worked per day = 5/70% = 7.14 hours
b) The total hours that the manager worked per day = 7.14 hours or 7 hours 9 minutes (approximately). This is obtained by dividing the hours spent in meetings by the equivalent proportion that meetings consumed per day.
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Answer:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Explanation:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Answer:
the answer is demand for a good can be inelastic at a low price, but elastic at a high price.
Explanation:
Suppose a firm has an annual expenses of $170,000 in wages and salaries, $75,000 in materials, $60,000 in rental expense, and $5,000 in interest expense on capital. The owner-manager does not choose to pay himself, but he could receive income of $30,000 by working elsewhere. The firm earns revenues of $420,000 per year.
1. What are the annual economic costs for the firm described above?
$310,000.
$320,000.
$340,000.
$400,000.
2. What is the economic profit for the firm described above?
$10,000.
$20,000.
Loss of $80,000.
$80,000.
3. To receive a normal profit the firm described above would have to:
Reduce expenses by $10,000.
Earn $80,000 more in revenue.
Earn $80,000 less in revenue.
Earn $310,000 more in revenue.
Answer:
1. The annual economic costs for the firm described above is:
= $340,000.
2. The economic profit for the firm described above is:
= $80,000.
3. To receive a normal profit the firm described above would have to:
None of the above.
Explanation:
a) Data and Calculations:
Wages and salaries expenses = $170,000
Cost of materials = $75,000
Rental expense = $60,000
Interest expense on capital = $5,000
Total expenses = $310,000
Opportunity cost = $30,000
Total costs = $340,000
Revenue per year = $420,000
1. The annual economic costs for the firm described above is:
= $340,000 ($310,000 + $30,000).
2. The economic profit for the firm described above is:
= $80,000 ($420,000 - $340,000).
3. To receive a normal profit the firm described above would have to:
None of the above.
The normal profit = $110,000 ($420,000 - $310,000)
If there are 360 million people living in the U.S, but 1 million died of health issues leaving 289 million eligible workers, what is the unemployment rate if 170 million are in the labor force and 7 million are actively seeking work?
Answer: 4.12%
Explanation:
Unemployment rate only includes people who are actively looking for work and no discouraged workers or those who have retired:
Unemployment rate = Number of unemployed looking for work / Labor force
= 7,000,000 / 170,000,000
= 4.12%
, G's employees each earned an average of $870 per week. A total of 600 vacation weeks earned in 2021 were not taken during 2021. Wage rates for employees rose by an average of 6 percent by the time vacations actually were taken in 2022. What is the amount of G's 2022 salaries expense related to 2021 vacation tim
Answer:
$31,320
Explanation:
Calculation to determine the amount of G's 2022 salaries expense related to 2021 vacation tim
G's employees earned average of $870 per week.
Total vacation week in 2021 wew not taken - 600 week
Total salary expense of G corporation = $870 per week × 600
Total salary expenses = $522,000
If Wage rates for employees rose by an average of 6 percent
The amount of G's 2022 salaries expense = Total salary expenses × wage rate
The amount of G's 2022 salaries expense = $522,000 × 6%
The amount of G's 2022 salaries expense = $31,320
Therefore the amount of G's 2022 salaries expense related to 2021 vacation tim is $31,320
Omega Enterprises budgeted the following sales in units: January 40,000 February 30,000 March 50,000 Omega's policy is to have 30% of the following month's sales in inventory. On January 1, inventory equaled 8,000 units. February production in units is: a.36,000. b.40,000. c.20,000. d.28,000. e.26,500.
Answer:
a. 36,000
Explanation:
Calculation to determine what February production in units is:
Sales for the month 30,000
Add Ending inventory 15,000
(50,000*0.3)
Less Beginning inventory (9,000)
(30,000*0.3)
February production in units 36,000 units
Therefore February production in units is: 36,000 units
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $23.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will increase by $1.46 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.03 million per year and cost $1.93 million per year over the 10-year life of the project. Marketing estimates 17.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 22.00%. The WACC is 14.00%.
Required:
Find the NPV (net present value).
Answer:
Net cash flow in year 0 = initial investment + increase in working capital
Net cash flow in years 1 to 9 = income after taxes + depreciation
Net cash flow in year 10 = income after taxes + depreciation + recovery of working capital
the percentage of buyers shifting from regular to diet drink is irrelevant for this project
IRR is calculated using the IRR function in Excel, with the inputs of values being the array of cells containing the net cash flows
IRR = 16.7627%
