Answer:
An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period of time.
Sales variance analysis is used by managers for: Select one: a. Planning purposes only. b. Budgeting purposes only. c. Control purposes only. d. Planning and control purposes. e. Planning and budgeting purposes.
Answer:
e. Planning and budgeting purposes.
Explanation:
Sales variance analysis is used by managers for planning and budgeting purposes, as this analysis allows managers to better understand the company's sales scenario in a given period in relation to different variables such as budgeted quantity, quantity sold and amount of profit made.
Through analysis, greater control and strategic planning and future budgets are possible so that an organization remains profitable and competitive in the market.
Elderly woman purchases a table from a local furniture store for $5,000. She decides she does not want the table because of a defect. The woman successfully cancels the payment on the credit card for payment of the table, and continues to keep the table despite the store requesting to pick the table up from woman. What statement is true:
Answer:
She cannot keep the table
Explanation:
In the given scenario we will look at the different parties and wether they are satisfied with the transaction.
The buyer picked the table after which she complained about a defect and refused to pay. Because she refused to pay she cannot take ownership of the table so she has to return it.
The store did not receive payment for the table so they have the right to request for the table back from the elderly woman.
So she cannot keep the table.
The statement that is true is that she cannot keep the table
In the given scenario, we will look at the different parties and whether they are satisfied with the transaction.
Here, the buyer picked the table after which she complained about a defect and refused to pay. Because she refused to pay she cannot take ownership of the table so she has to return it.
Now, the store did not receive payment for the table so they have the right to request for the table back from the elderly woman.
In conclusion, the statement that is true is that she cannot keep the table
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Prepare the December 31 adjusting entries for the following transactions.
a. Fees accrued but not billed, $6,300.
b. The Supplies account balance on December 31, $4,750.
c. Supplies on hand, $960
d. Wages accrued but not paid, $2,700
e. Depreciation of office equipment, $1,650
f. Rent expired during year, $10,800.
Answer and Explanation:
The journal entries are shown below:
a. Account receivable Dr $6,300
To Fees Revenue $6,300
(Being fees accrued is recorded)
b Supplies Expense $3,790 ($4,750 - $960)
To Supplies $3,790
(being supplies expense is recorded)
d. Wages Expense $2,700
To Wages Payable $2,700
(being wages expense is recorded)
e. Depreciation Expense $1,650
To Accumulated Depreciation $1,650
(being depreciation expense is recorded)
f. Rent Expense $10,800
To Prepaid Rent $10,800
(being rent expense is recorded)
The Northern Division of Southwest Clothing Inc. forecasts (has budgeted) the following income statement for the upcoming year: Sales $850,000 Variable Costs (520,000) Contribution Margin 330,000 Fixed Costs (480,000) Operating loss ($150,000) Unfortunately, every other division in the company is also expecting an operating loss for the coming year. The company's management is considering shutting down the Northern Division and has determined that $350,000 of the $480,000 Fixed Costs shown would be eliminated if that happens. If the Northern Division is shutdown, what is the change (impact) in Southwest's forecast operating results
Answer:
Operating loss will decrease by $20,000
Explanation:
Operating loss from normal business activities and if the division is not shut down = $150,000.
Operating loss if division is shut down by the management = $130,000 ($480,000 - $350,000) because the management has determined that $350,000 of the $480,000 Fixed Costs shown would be eliminated if that happens.
So, if the Northern Division is shutdown, the Operating loss will decrease by $20,000 (From $150,000 to $130,000)
Big Red Motors, Inc., employs 15 personnel to market its line of luxury automobiles. The average car sells for $75,000, and a 6 percent commission is paid to the salesperson. Big Red Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of $1,600 per mont plus a commission of 2 percent of the sales made by that salesperson. What is the amount of total monthly car sales at whit Big Red Motors would be indifferent as to which plan to select?
Answer: $600,000
Explanation:
The commission earned per car in the initial arrangement is:
= 6% * Total cars sales
With the second arrangement the amount spent would be:
= Salary of employees + commission
= (15 * 1,600) + (2% * total car sales)
= 24,000 + (2% * car sales)
Assuming total car sales is x, relevant expression is:
6% * x = 24,000 + (2% * x)
0.06x = 24,000 + 0.02x
0.06x - 0.02x = 24,000
0.04x = 24,000
x = 24,000 / 0.04
x = $600,000
It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true?
a. Total liabilities will be $132,709,346
b. The total investment for Baldwin will be $12,728,474
c. Working capital will remain the same at $12,936,641
d. Baldwin's long term debt will rise by $10,000,000
e. Total assets will rise to $212,378,526
Answer:
b.The total investment for Baldwin will be $12,728,474
During its first year of business, XYZ Inc. purchased $1,600 of supplies. By the end of
the year, only $500 of supplies remain in the supply cabinet. Determine the amount to be
reported in the Supplies account in the Adjusted Trial Balance section of the worksheet
prepared on December 31.
Answer:
$500
Explanation:
Since adjusted trial balance is often prepared at the end of an accounting period in which based on the information given the supplies in inventory is on the last day of the accounting period in which only the amount of $500 of supplies was remaining in the supply cabinet, therefore the amount to be
reported in the SUPPLIES ACCOUNT in the Adjusted Trial Balance section of the worksheet
prepared on December 31 will be $500 of supplies remaining in the supply cabinet.
Sandhill, Inc. has a unit selling price of $920, variable cost per unit of $510, and total fixed costs of $280,850. Compute the break-even sales units and sales dollars.
Answer:
(A) 685 UNITS
(B) 630,200 DOLLARS
Explanation:
Variable cost + Fixed cost = Total Cost
The break-even sales units would be the number of units Sandhill Inc. will sell in order to break even; that is, in order for their total cost to equal their total revenue.
If break-even point is the point where TR = TC then it is the same point at which PROFIT = 0
Recall that profit is the positive difference between total revenue and total cost. The negative difference (that is when TR < TC) is called loss.
Let X be = the break-even quantity or number of units, then we have
920x = 510x + 280850
Remember that VC varies or increases with the number of units produced, and so it has the x attached to it in this equation. FC on the other hand remains the same, regardless of the number of units produced.
So the left hand side of the equation has the total revenue, while the right hand side of the equation has the total cost.
Solving algebraically.
920x - 510x = 280850
410x = 280850
x = 280850 ÷ 410 = 685
ANSWER 1
The break-even sales units is 685 units.
The second computation is Sales in Dollars; at break-even sales units.
This revenue or sales is derived thus: Price per unit x Number of units
$920 x 685units = $630,200
ANSWER 2
The break-even total sales or total revenue is $630,200
KUDOS!
Customers exhibit a Poisson arrival distribution and the barber must provide an exponential service distribution. Market data indicates that customers arrive at a rate of 2 per hour. It will take an average of 20 minutes to give a haircut, and that business would remain unchanged with customers arriving at a rate of two per hour. Find the following information to help Benny decide if a second chair should be added:
a. The average number of customers waiting.
b. The average time a customer waits.
c. The average time a customer is in the shop.
Answer: the answer is b
Explanation:
Panther Co. had a quality-assurance warranty liability of $340,000 at the beginning of 2021 and $318,000 at the end of 2021. Warranty expense is based on 5% of sales, which were $50 million for the year. What amount of warranty costs were paid during
Answer: $2,522,000
Explanation:
Warranty costs paid during 2021 = Opening warranty liability + Warranty expense for the year - Closing warranty liability
Warranty expense for the year:
= 50,000,000 * 5% warranty expense
= $2,500,000
Warranty costs paid during 2021 = 340,000 + 2,500,000 - 318,000
= $2,522,000
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.
Bluegill Company sells 14,000 units at $240 per unit. Fixed costs are $168,000, and operating income is $1,176,000. Determine the following:
a. Variable cost per unit.
b. Unit contribution margin.
c. Contribution margin ratio.
Answer:
a. Variable cost per unit:
= (Sales - Fixed costs - Operating income) / number of units sold
= ((14,000 units * 240) - 168,000 - 1,176,000) / 14,000
= 2,016,000 / 14,000
= $144 per unit
b. Unit contribution margin:
= Selling price - Variable cost per unit
= 240 - 144
= $96
c. Contribution margin ratio:
= Unit contribution margin / Selling price
= 96 / 240
= 40%
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $330,000 for the machine and is leasing it to Zone for $40,000 per year, an amount that will return 10% to Calloway. The present value of the lease payments is $330,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021
Answer:
Dr Interest receivable $29,000
Cr Interest revenue $29,000
Explanation:
Preparation of the appropriate interest entry on December 31, 2021
December 31, 2021
Dr Interest receivable $29,000
Cr Interest revenue $29,000
[($330,000-$40,000)*10%]
($290,000*10%)
(To record Interest)
You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal
Answer:
$1,000,000
Explanation:
The full question is shown below:
You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)
In order to receive $80,000 per year forever, one needs to save the present value of the annual cash flow using the present value formula for perpetuity as provided below:
PV of perpetuity=annual cash flow/annual interest rate
PV of perpetuity=$80,000/8%
PV of perpetuity=$1,000,000
The debt to owners' equity ratio is a common type of liquidity ratio
Answer: No
Explanation: D/E is a solvency ratio. Liquidity ratios are quick and current ratios.
Senior managers are responsible for making specific plans to implement the strategy. The above statement is true or false. explained
Answer:
True
Explanation:
There is often litter along highways but rarely in people's yards. Which of the following statements help explain this observation?
a. No one cares if there is litter on the highway
b. When a person litters along a highway, others bear the negative externality of having to clean it up.
c. Littering in your own yard imposes costs to you, so you are less likely to do it.
Answer:
b
c
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.
Many exchange-traded funds limit their portfolios to:___________
a. high quality securities
b. stocks and bonds of companies in a particular industry
c. stocks included in an aggregate measure of stock prices
d. stocks that respond to changes in consumer prices (the Consumer Price Index or CPI)
Fore Farms reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $5 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $12 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no tem
Answer: Hello your question is incomplete attached below is the complete question
answer:
1) attached below
2) Net operating income ( loss ) = - $104 million
Explanation:
Pretax operating loss = - $137 million
Non deductible Losses ; $5 million fine paid in 2021 ,
estimated $12 million loss from contingency that will be tax deductible in 2022
Enacted tax rate = 25%
Taxable operating income = - $120 million
attached below is the solution
Desks by Daisy sells a student desk for $100 per unit. The variable cost per desk is $40 and Daisy's fixed costs of producing the desks equals $15,000 per month. Daisy needs to sell _______ desks per month in order to break-even.
Answer:
250
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$15,000 / (100 - 40)
$15,000 / 60
250
a face value of $450 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $388,844,955, what interest expense would it recognize in its 2021 income statement
Answer:
$7,776,899
Explanation:
Calculation to determine what interest expense would it recognize in its 2021 income statement
Interest expense= $388,844,955 * 8% * (3 months/12 months)
Interest expense= $31,107,596.4 * 3/12
Interest expense= $7,776,899
Therefore the interest expense that would be recognize in its 2021 income statement is $7,776,899
A number of factors influence the sample size for a substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size?
a. Greater reliance on internal control
b. Greater reliance on substantive analytical procedures
c. Smaller expected frequency of errors
d. Smaller measure of tolerable misstatement
Answer: D. Smaller measure of tolerable misstatement.
Explanation:
The sample size simply means the number of participants that are included in a study. They're the group of subjects which are picked and selected from the population and represents the general population for that study.
From the options given, it should be noted that a smaller measure of tolerable misstatement will lead to a larger sample size.
Using the following information, what is the amount of gross profit?
Purchases $37,000
Merchandise inventory, September 1 6,100
Selling expense 1,050
Merchandise inventory, September 30 6,800
Sales 91,000
Interest expense 1,040
Administrative expense 1,010
Rent revenue 1,700
Answer:
Gross profit= $54,700
Explanation:
Giving the following information:
Purchases $37,000
Merchandise inventory, September 1 6,100
Merchandise inventory, September 30 6,800
Sales 91,000
First, we need to calculate the cost of goods sold:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 6,100 + 37,000 - 6,800
COGS= $36,300
Now, the gross profit:
Gross profit= sales - COGS
Gross profit= 91,000 - 36,300
Gross profit= $54,700
Which of the following statements accurately describe the effect of the increase in government borrowing?
a. National saving decreases by less than $20 billion.
b. Investment increases by less than $20 billion.
c. Public saving decreases by exactly $20 billion.
d. Private saving increases by less than $20 billion.
Answer:
d. Private saving increases by less than $20 billion.
Explanation:
Because the interest rate has increased, investment and national saving decline and private saving increases. The increase in government borrowing reduces public saving. From the figure you can see that total loanable funds (and thus both investment and national saving) decline by less than $20 billion, while public saving declines by $20 billion and private saving rises by less than $20 billion.
quizlet
Mordica Company’s standard labor cost per unit of output is $22.00 (2.00 hours x $11.00 per hour). During August, the company incurs 2,340 hours of direct labor at an hourly cost of $9.90 per hour in making 1,300 units of finished product.
Required:
Compute the total, price, and quantity labor variances.
Solution :
Total labor variance = [(standard rate x standard hours) - (actual rate x actual hours)]
= [$11 x (1300 x 2)] - ($9.90 x 2340)
= $28600 - $23166
= $ 5434 unfavorable
Labor price variance = ( standard rate - actual rate) x actual hours
= ($11.00 - $9.90) x 2340
= $ 1.1 x 2340
= $2574 favorable
Labor quantity variance = standard x (standard hours - actual hours)
= $11.00 x [(1300 x 2) - 2340]
= $11.00 x (2600 - 2340)
= $11.00 x 260
= $2860 unfavorable
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:
An overhead variance report includes which of the followings: _________
a. Variable and fixed flexible budget costs
b. Variable and fixed actual results
c. Variable and fixed sales results
d. Variable and fixed variances
Answer: a. Variable and fixed flexible budget costs
Explanation:
An overhead variance report shows the difference between the overhead that was actually incurred to either produce or sell vs the overhead that was budgeted.
Overhead can either be fixed or variable so an overhead report will include both fixed and variable budgeted costs which will then be compared to fixed and variable actual overhead costs.
Last year, you purchased a stock at a price of $64.00 a share. Over the course of the year, you received $2.20 per share in dividends and inflation averaged 2.7 percent. Today, you sold your shares for $69.00 a share. What is your approximate real rate of return on this investment
Answer:
8.55%
Explanation:
Calculation to determine your approximate real rate of return on this investment
First step is to calculate the Nominal return
Nominal return = ($69 - $64+ $2.20)/$64
Nominal return=7.2/$64
Nominal return= 0.1125
Now let calculate the Approximate real return
Approximate real return = 0.1125 - 0.027
Approximate real return= 0.0855*100
Approximate real return=8.55%
Therefore your approximate real rate of return on this investment is 8.55%
A company has already incurred $7,200 of costs in producing 6,000 units of Product XY. Product XY can be sold as is for $31 per unit. Instead, the company could incur further processing costs of $10 per unit and sell the resulting product for $35 per unit. Should the company sell Product XY as is or process it further
Answer: Sell as is or lose $36,000
Explanation:
If the company sells as is, they could sell at a price of $31 per unit.
If they process further and sell at $35, they would incur a cost of $10 per unit which leaves them with profit of:
= 35 - 10
= $25
This is lower than the selling price if they sell as is and will therefore give a loss of:
= (31 - 25) * 6,000 units
=- $36,000
Company should sell as is so as not to lose $36,000
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
