Answer and Explanation:
The computation is shown below:
a.
Contribution per unit
= Selling price per unit - Variable costs per unit
= $300 - $200
= $100 per unit
Now
Break even point (units)
= Fixed costs ÷ Contribution margin per unit
= $14,000,000 ÷ $100
= 140,000 units
And,
b)
Sales units required for a target profit of $1,400,000
So,
= (Fixed costs + Target profits) ÷ Contribution margin per unit
= ($14,000,000 + $1,400,000) ÷ $100
= 154,000 units
Angel Toys is a producer of tiny dolls for children. Following is information about its revenue and cost structure: Assume that the current sales level is 14,000 dolls. What impact would a 10% increase in sales have on income
Answer: D. Income would increase by about 51%
Explanation:
Income before sales increase:
= Sales - Variable costs - Fixed costs
= (8 * 14,000 units) - ( (1.20 + 0.40) * 14,000 units) - (40,000 + 32,000)
= 112,000 - 22,400 - 72,000
= $17,600
Income after sales increase:
New sales = 14,000 * (1 + 10%) = 15,400 units
= (8 * 15,400) - ( (1.20 + 0.40) * 15,400) - (40,000 + 32,000)
= $26,560
Percentage increase:
= (26,560 - 17,600) / 17,600
= 50.9%
= 51%
Identify the situation below that will result in a favorable variance.
a. Actual costs are higher than budgeted costs.
b. Actual income is lower than expected income.
c. Actual expenses are higher than budgeted expenses.
d. Actual revenue is higher than budgeted revenue.
e. Actual revenue is lower than budgeted revenue.
Answer:
d. Actual revenue is higher than budgeted revenue.
Explanation:
When the Actual income/revenue/benefit is higher than the budgeted/estimated income/revenue/benefit, the variance will be favorable.
When the Actual income/revenue/benefit is lower than the budgeted/estimated income/revenue/benefit, the variance will be unfavorable.
When the Actual expense/cost/loss is higher than the budgeted/estimated expense/cost/loss, the variance will be unfavorable.
When the Actual expense/cost/loss is lower than the budgeted/estimated expense/cost/loss, the variance will be favorable.
a.
As the actual cost incurred is higher than the cost estimated, then the variance in both costs is unfavorable.
b.
As the actual Income earned is lower than the income estimated, then the variance in both incomes is unfavorable.
c.
As the actual expense incurred is higher than the expense estimated, then the variance in both expenses is unfavorable.
d.
As the actual revenue incurred is higher than the revenue estimated, then the variance in both revenues is favorable.
e.
As the actual revenue earned is lower than the revenue estimated, then the variance in both revenues is unfavorable.
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
ABC Corp. is expected to pay an annual dividend in the amount of $2.50 a share next year. This dividend constantly grows by 5 percent per year. The current price of the company’s stock is $50.60 per share. What is the cost of equity?
Answer:
9.94%
Explanation:
The cost of equity can be determined from the constant dividend growth model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
50.60 = 2.5 / (r - 0.05)
50.60(r - 0.05) = 2.5
(r - 0.05) = 2.5 / 50.60
(r - 0.05) = 0.0494
r = 0.0494 + 0.05
r = 0.0994
r = 9.94%
Aber Inc. plans to develop a shopping center. In the first quarter, they spent the following amounts: Acquisition of land $15000 Surveys and legal fees 600 Land clearing 200 Fencing 1000 Install lighting and signage 860 What amount should be recorded as the cost of land in the books of the corporation
Answer: $15,800
Explanation:
When it comes to fixed assets like land, all costs that were necessary to acquire the land and to get it ready for use are capitalized - included in the cost of the fixed assets.
Cost of land = Acquisition cost + Surveys and legal fees + Land clearing to get it ready for use
= 15,000 + 600 + 200
= $15,800
Lester hopes to earn $1100 in interest in 1.5 years time from $22,000 that he has available to invest. To decide if it's feasible to do this by investing in an account that compounds quarterly, he needs to determine the annual interest rate such an account would have to offer for him to meet his goal. What would the annual rate of interest have to be
Answer:
The answer is "3.27%"
Explanation:
[tex]P = \$ 22,000\\\\t = 1.5\\\\I= \$ 1,100\\\\A=P+I=\$22,000+1,100=\$ 23,100\\\\n = 4\\\\[/tex]
Using formula:
[tex]\bold{A=P(1+\frac{r}{n})^{nt}}\\\\[/tex]
[tex]23,100=22,000(1+\frac{r}{4})^{4\times 1.5}\\\\23,100=22,000(1+\frac{r}{4})^{6}\\\\\frac{23,100}{22,000}=(1+\frac{r}{4})^{6}\\\\1.05=(1+\frac{r}{4})^{6}\\\\1.05^{\frac{1}{6}}=(1+\frac{r}{4})\\\\1.008164846=(1+\frac{r}{4})\\\\1.008164846-1=\frac{r}{4}\\\\0.008164846=\frac{r}{4}\\\\r=0.008164846\times 4\\\\r=0.03266\\\\r=3.266\% \approx 3.27\%[/tex]
Pick the correct statement related to net working capital from below. Multiple Choice Net working capital can be ignored in project analysis because any expenditure is normally recouped at the end of the project. Net working capital requirements, such as an increase in accounts receivable, create a cash inflow at the beginning of a project. Net working capital is rarely affected when a new product is introduced. Net working capital can create either an initial cash inflow or outflow. Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.
Answer:
Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.
Explanation:
Net working capital is the difference between current assets and current liabilities. Net working capital measures a company's liquidity.
In project analysis, net working capital is part of the cost. It is usually subtracted from cash inflows.
Net working capital is a cash outflow.
Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.
s borrows $12,000 for a shortterm purpose. The loan will be repaid after 120 days, with Simpson paying a total of $12,400. What is the approximate cost of credit using the APR, or annual percentage rate, calcula
Answer:
the approximate cost of credit using the APR, or annual percentage rate is 10.34%
Explanation:
The computation is shown below:
Interest Paid should be
= $12,400 - $12,000
= $400
Now
Cost of capital for 120 days is
= $400 ÷ 12000
= 3.33%
And, finally
Annual percentage rate is
= 3.33% × 365 ÷ 120
= 10.34%
Hence, the approximate cost of credit using the APR, or annual percentage rate is 10.34%
Multitasking refers to :_____________
a. the skill of coordinating the completion of multiple health projects at the same time.
b. a specific committee structure that allows for various committee members to function in different capacities to conduct committee work.
c. a type of professional preparation that prepares health education students to work in various settings such as schools, public health departments, and corporations.
d. the skill to utilize multiple computer programs at the same time
Answer:
the answer would be d
Explanation:
Multitasking involves overlapping and interleaving the execution of several programs
The descriptive term used to explain how people, businesses, and countries around the world are more interdependent because of the changes in forces like transportation, media, technology, and global finance is ________.
Answer:
Globalization
Explanation:
Globalization can be regarded as process which involves integration as well as interaction of people across the globe as well as companies and governments across the world. Globalization has improved as result of advances in transportation as well as communication technology which makes the to come together.
It should be noted that Globalization explained how people, businesses, and countries around the world are more interdependent because of the changes in forces like transportation, media, technology, and global finance.
Because of ________ if a city government decides to spend money on beautifying its downtown and attracting tourism to its city when no money has been devoted to those efforts before, then gains in tourism may be significant. Group of answer choices
Answer:
The answer is the production possibility frontier.
A local moving company has collected data on the number of moves they have been asked to perform over the past three years.Moving is highly seasonal,so the owner/operator,who is both burly and highly educated,decides to apply the multiplicative seasonal method (based on a linear regression for total demand)to forecast the number of customers for the coming year.What is his forecast for each quarter?
Year 1 Year 2 Year 3
Quarter Demand Quarter Demand Quarter Demand
1 20 1 27 1 33
2 40 2 45 2 45
3 45 3 55 3 55
4 30 4 40 4 40
Answer:
NO SE
Explanation:
A list of financial statement items for Oriole Company includes the following: accounts receivable $17,500; prepaid insurance $3,250; cash $13,000; supplies $4,750; and debt investments (short-term) $10,250.
Required:
Prepare the current assets section of the balance sheet listing the items in the proper sequence.
Answer:
$48,750
Explanation:
Preparation of the current assets section of the balance sheet listing the items in the proper sequence
ORIOLE COMPANY Partial Balance Sheet Current assets
Cash $13,000
Debt investments $10,250
Accounts receivable $17,500
Supplies $4,750
Prepaid insurance $3,250
Total current assets $48,750
Therefore the current assets section of the balance sheet listing the items in the proper sequence is $48,750
A lender uses these tools to help prequalify you for a mortgage
Answer:
Following are the summary of tools/documents that are used by lenders to pre-qualify their customers for a mortgage :
1. Tax returns, W-2s, and 1099s are examples of income as well as employment records.
2. Bank, pension, and brokerage accounts property declarations
3. Settlements on your obligations on a regular basis as well as any real estate debt statements.
4. Rent deposits, divorce, insolvency, and repossession records are all kept on file.
Integrity Accounting Firm provides various financial services to organizations. Integrity has decided to price its jobs at the total variable costs of the job plus 14.3 percent. The job for a medium-sized dance club client included the following costs:
Direct materials $20,000
Direct labor (partners and staff accountants) 150,000
Depreciation (using straight-line method) on
Integrity’s office building 50,000
Required:
Calculate the price charged by The J. Escobar Law Firm to the dance club.
Answer:
$194,310
Explanation:
The price charged by The J. Escobar Law Firm to the dance club is as follows:
Direct Materials $20,000
Direct Labour $150,000
Total Variable Cost of Jobs $170,000
14.3% Mark up on TVC $24,310
The price charged ro the club $194,310
Describe how an unrelated tenant in common or joint tenant should protect him- or herself from potential liability (for negligence, injury to guests, or casualty loss) if his or her fellow tenants are not willing to buy insurance to do so?
Answer:
Tenancy in common
Explanation:
This tenant could use a legal agreement known as Tenancy in common. This agreement is established between two people who are co-tenants of a residence, but while one person is interested in purchasing insurance to protect themselves from potential liability, the other tenant is not willing to purchase insurance. In this case, Tenancy in common, allows only one of the tenants to have support with the right of survivorship and in case that tenant dies, the right will not pass to the other tenant.
The ledger of Mai Company includes the following accounts with normal balances: D. Mai, Capital $10,100; D. Mai, Withdrawals $1,350; Services Revenue $24,000; Wages Expense $13,900; and Rent Expense $3,800.
Prepare the necessary closing entries from the available information at December 31.
Answer:
Dec. 31
Dr Service Revenue $24,000
Cr Income Summary $24,000
Dec. 31
Dr Income Summary $17,700
Cr Wages expense $13,900
Cr Rent expense $3,800
Dec. 31
Dr Income Summary $6,300
Cr Retained Earnings $6,300
Dec 31
Dr Services Revenue $1,350
Cr D. Mai, Withdrawals $1,350
Explanation:
Preparation of the necessary closing entries from the available information at December 31.
General Journal
Dec. 31
Dr Service Revenue $24,000
Cr Income Summary $24,000
Dec. 31
Dr Income Summary $17,700
($13,900+$3,800)
Cr Wages expense $13,900
Cr Rent expense $3,800
Dec. 31
Dr Income Summary $6,300
Cr Retained Earnings $6,300
($24,000-$17,700)
Dec 31
Dr Services Revenue $1,350
Cr D. Mai, Withdrawals $1,350
Air Destinations issues bonds due in 10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments are made semi-annually. The market rate for this type of bond is 12%. Using present value tables, calculate the issue price of the bonds
Answer: $471,324.61
Explanation:
Price of a bond = Present value of coupon payments + Present value of face value at maturity
Coupon payments = 500,000 * 11% * 1/2 years = $27,500
Periodic yield = 12%/ 2 = 6% per semi annual period
Periods = 10 * 2 = 20 semi annual periods
Coupon payment is constant so it is an annuity.
Price of bond = Present value of annuity + Present value of face value at maturity
= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods
= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰
= $471,324.61
On December 1 of 2017, APU, a U.S. company, makes a sale to a Spanish customer. Sales price is 1,600,000 euro, and the spot rate is $1.45 per euro. APU allows the customer 3 months to pay On March 1 of 2018, APU collects the sales amount with spot rate $1.49 per euro.
Prepare the journal entries.
Answer:
APU
Journal Entries:
December 1, 2017:
Debit Accounts receivable $2,320,000
Credit Sales Revenue $2,320,000
To record the sale of goods on account.
March 1, 2018:
Debit Cash $2,384,000
Credit Accounts receivable $2,320,000
Credit Gain from Foreign Exchange $64,000
To record the receipt of cash, including the gain from forex.
Explanation:
a) Data and Analysis:
December 1, 2017: Accounts receivable $2,320,000 Sales Revenue $2,320,000 (1,600,000 * $1.45)
March 1, 2018: Cash $2,384,000 (1,600,000 * $1.49) Accounts receivable $2,320,000 Gain from Foreign Exchange $64,000 (1,600,000 * ($1.49 - $1.45)
On January 1, 2021, G Corp. granted stock options to key employees for the purchase of 87,000 shares of the company's common stock at $26 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2023, by the grantees still in the employ of the company. No options were terminated during 2021, but the company does have an experience of 6% forfeitures over the life of the stock options. The market price of the common stock was $32 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should G charge to compensation expense for the year ended December 31, 2021
Answer:
the compensation expense for the year is $327,120
Explanation:
The computation of the compensation expense for the year is given below:
= (Number of stock options to be purchased × (1 - forefeiture percentage) × fair value per option)) ÷ 2
= (87,000 shares × (1 - 0.06) × $8)) ÷ 2
= $327,120
Hence, the compensation expense for the year is $327,120
The same should be considered and relevant too
Answer the following questions based on the tables below.
Buyer Willingness to Pay for One Unit
A $35
B 33
C 27
D 22
E 21
F 13
G 13
H 12
I 6
Seller Willingness to Sell One Unit
A $4
B 9
C 12
D 14
E 15
F 21
G 23
H 30
I 51
a. The quantity demanded at a price of $10 is: _______________.
b. The quantity demanded at a price of $25 is: ___________
Answer:
8
3
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
A consumer would demand for a product as long as he can earn a positive consumer surplus
When price is 10, there is a consumer surplus for buyers A to H. buyer I, would earn a negative consumer surplus if he purchases the product. Thus, the quantity demand at that price would be 8
When price is $25, there is a consumer surplus for buyers A to C. From buyer D, buyers would have a negative consumer surplus so they would not purchase the product
Compute the amount of raw materials used during November if $32,000 of raw materials were purchased during the month and if the inventories were as follows:
Inventories Balance November 1 Balance November 30
Raw materials $7,800 $4,400
Work in process $6,400 $7,900
Finished goods $10,400 $12,400
a. $40,500.
b. $40,300.
c. $37,800.
d. $43,800.
Answer:
Results are below.
Explanation:
Giving the following information:
Purchases= $32,000
Beginning inventory= $7,800
Ending inventory= $4,400
To calculate the direct material used, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 7,800 + 32,000 - 4,400
Direct material used= $35,400
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
Mitch and Jennifer have adjusted gross income of $125,000 and they have not planned for their children's education. Their children are ages 17 and 18 and the parents anticipate paying $20,000 per year, per children for education expenses. Which of the following is the most appropriate recommendation to pay for the children's education?
A) 529 Savings Plan
B) PLUS Loan
C) Pell Grant
D) Coverdell ESA
Answer: B) PLUS Loan
Explanation:
Seeing as they did not plan ahead and the children are about to start school, the best option they have is a loan. In light of that, they should go for a Parent Loan for Undergraduate Students (PLUS) loan.
A PLUS loan is provided by the Federal government to parents to help them pay for the tuition fees of their children at undergraduate level. It has a lower interest rate but is only given to people whose credit history are not to bad.
A company's flexible budget for 12,000 units of production showed total contribution margin of $24,000 and fixed costs, $16,000. The operating income expected if the company produces and sells 15,000 units is:________
a) $34,000.
b) $10,000.
c) $18,667.
d) $8,000.
e) $14,000.
Answer:
e. $14,000
Explanation:
Operating income for 15,000 units = Proportionate contribution - Fixed cost
Operating income for 15,000 units = [($24,000/12,000)*15,000] - $16,000
Operating income for 15,000 units = $30,000 - $16,000
Operating income for 15,000 units = $14,000
So, the operating income expected if the company produces and sells 15,000 units is $14,000.
1. Costs that do not change with the change in the level of production for some time is classified as ________.
a. variable costs.
b. fixed costs.
c. mixed costs.
d. none of these choices are correct.
2. Under variable costing, the cost of goods manufactured consists of all except:_____.
a. direct materials.
b. direct labor.
c. variable factory overhead.
d. fixed factory overhead.
3. Costs that have characteristics of both a variable cost and a fixed cost are classified as ________.
a. variable costs.
b. fixed costs.
c. mixed costs.
d. none of these choices are correct.
Answer:
1. b. fixed costs.
2. d. fixed factory overhead.
3. c. mixed costs.
Explanation:
Costs are usually classified as fixed and variable cost. Fixed cost are cost that don not vary with the level of activities (usually expressed as units of production or sales) of an organization.
Variable cost on the other hand are cost that varies with the level of activity. A combination of these cost is called mixed cost.
Under variable costing, all cost are dependent on activity level hence are not fixed.
ai là người giàu nhất thế giới
Answer:
Jeff Bezos
Explanation:
Jeff Bezos là người sáng lập Amazon và có giá trị tài sản ròng là 205 tỷ USD
Đây là danh sách các nhà vận chuyển tiền được xếp hạng:
https://www.forbes.com/real-time-billionaire/#114ff8bb3d78
Jeff Bezos is the founder of Amazon and has a net worth of $205 billion Here's a list of billionaire's ranked:
https://www.forbes.com/real-time-billionaires/#114ff8bb3d78
Copy equipment was acquired at the beginning of the year at a cost of $50,320 that has an estimated residual value of $4,600 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,143,000 copies. This year, 288,000 copies were made. a. Determine the depreciable cost. $fill in the blank 1 b. Determine the depreciation rate. Round your answer to two decimal places. $fill in the blank 2 per copy c. Determine the units-of-output depreciation for the year
Answer:
Annual depreciation= $11,520
Explanation:
Giving the following information:
Purchase price= $50,320
Salvage value= $4,600
Estimated copies= 1,143,000
First, we need to calculate the depreciable value:
Depreciable value= purchase price - salvage value
Depreciable value= 50,320 - 4,600
Depreciable value= $45,720
Now, the depreciable rate:
Depreciable rate= depreciable value / /useful life of production in copies
Depreciable rate= 45,720/1,143,000
Depreciable rate= $0.04 per copie
Finally, the annual depreciation:
Number of copies= 288,000
Annual depreciation= 0.04*288,000
Annual depreciation= $11,520
Match each example to the appropriate term.
a. Trees used to make paper
1. Human capital
2. Technological knowledge
3. Physical capital
b. A printing press used to make books.
1. Human capital
2. Technological knowledge
3. Physical capital
c. A method of organizing workers to increase production per hour.
1. Human capital
2. Technological knowledge
3. Physical capital
d. The skills workers learn during a training session.
1. Human capital
2. Technological knowledge
3. Physical capital
Answer:
a equals 3
b equals 3
c equals 1
d equals 2
Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $500,000 of direct costs but also 20% of the Maintenance Department (M) cost and a Maintenance Department that includes not only $250,000 of direct costs but also 40% of the Janitorial Department? (Hint: This equation is derived from the two separate equations representing each department's costs.)
a. J = ($500,000 × 0.20) + [($250,000 × 0.20) + J]
b. J = $500,000 – (0.20 × $250,000) – (0.20 × J)
c. J = $500,000 + [(0.20 ÷ $250,000) + (0.40 ÷ J)]
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Answer:
The equation that represents the algebraic expressions for the two equations needed to capture the total costs of the Janitorial Department is:
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Explanation:
a) Data and Calculations:
Direct costs Percent of Service Dept.
Janitorial Department (J) $500,000 20% of M
Maintenance Department (M) $250,000 40% of J
b) The reciprocal services method reapportions the costs of the service departments to other service departments using a system of simultaneous equations. With its complications, the reciprocal method is the most accurate and equitable method for apportioning service departments' costs to production departments.
