Answer and Explanation:
The preparation of the schedule of cost of goods manufactured is presented below:
Direct material $232,500
Direct labor $65,500
Factory overhead $27,600
Total manufacturing Cost $325,600
Beginning work in process $158,200
Total cost of work in process $483,800
Ending work in process -$163,000
Cost of goods manufactured $320,800
In this way it should be prepared
Break-Even Sales and Sales to Realize Income from Operations
For the current year ended October 31, Yentling Company expects fixed costs of $14,000,000, a unit variable cost of $200, and a unit selling price of $300.
a. Compute the anticipated break-even sales (units).
units
b. Compute the sales (units) required to realize income from operations of $1,400,000.
units
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
You are considering investing in the stock of PartyWagon, Inc. You expect a dividend of $1.25 next year, $1.31 in year 2, and $1.38 in year 3. At the end of three years, you expect to be able to sell the stock for $65. If you can purchase the stock for $32, what rate of return do you expect to earn
Answer: 29.93%
Explanation:
You can use Excel to solve for this.
Bear in mind that when given a series of cashflows, the expected return is the Internal Rate of Return (IRR).
Initial investment = $32
First cashflow = $1.25
Second cashflow = $1.31
Third cashflow = $1.38 + $65 selling price = $66.38
IRR = 29.93%
Joe had made an agreement with Auto Insurance Co. not to use his van for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza, Inc. For which type of violation will Joe not be covered under his insurance?
Answer:
.Concealment
Explanation:
From the question we are informed about Joe who had made an agreement with Auto Insurance Co. not to use his van for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza, Inc. the type of violation that Joe will not be covered under his insurance is Concealment.
Concealment can be regarded as omission of information during insurance process, which would definitely has effect on the issuance as well as the rate of an insurance contract. In a case whereby the insurer is unable to get access to the nondisclosed information and the
nondisclosed information is material as regards the decision-making process, nullification of the insurance contract can be carried out by the insurer.
Cary Inc. reported net credit sales of $300,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $500. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?
a) $2,500
b) $3,000
c) $2,980
d) $3,200
Answer: b. $3,000
Explanation:
The company's bad debt for the current year is said to be 1% of the credit sales because this is the usual rate for the past periods.
The bad debt expense for this year is therefore:
= Bad debt percentage * Credit sales
= 1% * 300,000
= $3,000
This will then be posted to the Allowance for Doubtful Accounts.
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.
The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000; setup, $50,000; and materials handling, $150,000. Norton manufactures two products: Product A and Product B. The activity-based usage quantities for each product by each activity are estimated as follows:
Assembly Setup Materials Handling
Product A 5,000 dlh 60,setups 25 moves
Product B 15,000 dlh 110 setups 250 moves
Total activity- 20,000 dlh 170setups 275 moves
base usage
Determine the activity rate for the set up activity.
a. $166 per setup
b. $294 per setup
c. $1,764 per setup
d. $118 per setup
Answer:
b. $294 per setup
Explanation:
The computation of the activity rate for the setup activity is given below:
Activity Rate is
= Total Activity Cost ÷ Cost Driver
Activity Rate for Setup Activity is
= $50,000 ÷ 170
= $294 per Setup
hence, the activity rate for the setup activity is $294
Therefore the option b is correct
The financial reporting for private not-for-profit entities primarily focuses on: Multiple Choice basic information for the organization as a whole. standardization of the fund information that is reported. inherent differences of various not-for-profit entities that impact reporting presentations. distinctions between current fund and noncurrent fund presentations.
Answer: basic information for the organization as a whole.
Explanation:
Private Not-for-profit organization as the term implies, are not operating to make a profit therefore their financial statements will generally not include measures that are aimed at showing profit like profit making organizations.
They will instead focus on talking about the entire organization as whole and what it has done so far in the current period. This is what is required of them by U.S. GAAP.
Louis Vuitton decides to invest $80,000,000 into a shoe factory in Milan from its money market account. The money market account was earning 1% in interest per year or $800,000. Louis Vuitton could have also earned $200,000 from investing the $80,000,000 in a handbag factory. What is its opportunity cost for Louis Vuitton based off of the information in presented this situation?
a. $200,000
b. $1,000,000
c. $80,000,000
d. $800,000
Answer:
d. $800,000
Explanation:
In opportunity cost parlance, we talk about the cost/benefit forgone of the next best alternative, not for all alternatives forgone.
The benefit forgone of the next best alternative is the $800,000 that could have been earned if the funds have been invested in the money market account, in other words, $800,000.
If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is: (Note: EOM indicates the last day of each month.)
Answer:
EOM depreciation expense $100
accumulated depreciation $100
Explanation:
Depreciation is a method used in expensing the cost of an asset.
Yearly Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($3750 - $150) / 3 = $1200
Monthly depreciation = yearly depreciation / 12
1200 /12 = 100
Accumulated depreciation is sum of depreciation expense
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)
Newhard Company assigns overhead cost to jobs on the basis of 114% of direct labor cost. The job cost sheet for Job 313 includes $26,530 in direct materials cost and $10,500 in direct labor cost. A total of 1,400 units were produced in Job 313.
Required:
a. What is the total manufacturing cost assigned to Job 313?
b. What is the unit product cost for Job 313?
Answer:
Results are below.
Explanation:
Giving the following information:
Estimated overhead rate= 114% of direct labor cost.
Job 313:
Direct materials= $26,530
Direct labor= 10,500
Number of units= 1,400
First, we need to allocate overhead to Job 313:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10,500*1.14= $11,970
Now, the total cost:
Total cost= 26,530 + 10,500 + 11,970
Total cost= $49,000
Finally, the unitary cost:
Unitary cost= 49,000 / 1,400
Unitary cost= $35
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.
Park Company reports interest expense of $145,000 and income before interest expense and income taxes of $1,885,000. (1) Compute its times interest earned. (2) Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad
Answer:
(1) Park's times interest earned is 13.
(2) Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.
Explanation:
(1) Compute its times interest earned.
The times interest earned, also known as the interest coverage ratio, is a coverage ratio that calculates the proportionate amount of income that can be used to cover future interest expenses.
The times interest earned can be computed as follows:
Times interest earned = Income before interest expense and income taxes / Interest expense = $1,885,000 / $145,000 = 13
Therefore, Park's times interest earned is 13.
(2) Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad.
Because the ratio reveals how many times a company could pay interest with its pre-tax income, greater ratios are clearly better than lower ratios.
Since Park’s times interest earned of 13 is greater than its competitor’s times interest earned of 4, it therefore implies that Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.
Ruby is considering a college degree. She learned that the total costs (including the tuition, fees, and forgone wages) of a college degree is $120,000. Her annual income with a college degree will be $14,000 higher than a high school graduate. She is planning to work for 15 years after graduation. How does her ROI on college change if she decides to work for 30 years instead of 15 years
Answer: Increase of 3.2%
Explanation:
Return on Investment (ROI) is the return that Ruby would make over her college degree fees.
It is the internal rate of return that would equate her future earnings to the investment in college fees.
Change in ROI = 11.18% - 7.98
= 3.2%
Increase of 3.2%
Tangerine, Inc. provides the following data: Surround, Inc. Comparative Balance Sheet Dec. 31, 20X9 Assets Current Assets: Cash and Cash Equivalents $29,000 Account Receivable, Net 31,000 Merchandise Inventory 53,000 Total Current Assets $113,000 Property, Plant, and Equipment, Net 120,000 Total Assets $233,000 Liabilities Current Liabilities: Accounts Payable $4000 Notes Payable 3000 Total Current Liabilities $7000 Long-term Liabilities 84,000 Total Liabilities $91,000 Stockholders' Equity Common Stock $30,000 Retained Earnings 112,000 Total Stockholders' Equity $142,000 Total Liabilities and Stockholders' Equity $233,000 Calculate the debt to equity ratio.
Answer:
The debt to equity ratio is 0.64.
Explanation:
The debt to equity ratio can be calculated using the following formula:
Debt to equity ratio = Total Liabilities / Stockholders' Equity ……………………. (1)
Where:
Total Liabilities = $91,000
Stockholders' Equity = $142,000
Substitute the relevant data into equation (1), we have:
Debt to equity ratio = $91,000 / $142,000 = 0.64
Therefore, the debt to equity ratio is 0.64.
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.
PLEASE HELP! WILL MARK BRAINLIEST!! 10 POINTS
Assume a visitor from another nation decides to open a checking account at J & R National Bank. The visitor deposits $20,000 that is new money to the Macro Islands economy. The central bank has set a required reserve ratio of 10%.
What is the change in the total amount that J & R National Bank can loan out? Explain.
Calculate the total amount that the bank can create? (Calculate means show your work.)
Now assume that the Macro Islands government decides to increase spending to fund new projects that will bring in more visitors. Explain what will happen to the demand for loanable funds and real interest rates as a result.
Answer: a)$18,000 and b)$200,000
Explanation:
a) Deposit = $20,000
Reserve=10%
=10%x20,000 =$2,000
Loan - Deposit = 20,000-2,000 = 18,000
b) 1/Req. Rate Return* loan amount
20,000/10% =$200,000
This encourages spending so there is a shift up and to the right.
As the government increases spending, demand for loans increases and therefore increases the interest rates.
I welcome Brainliest thanks.
. If it outsources the navigation system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $2000 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing
Answer: $2,425
Explanation:
Fruit Boat should not pay more for the contract than they would if they were producing the good themselves.
= Variable cost + Avoidable fixed costs + Opportunity cost per month
Avoidable fixed cost = (39,000 / 2) / 10 boats = 19,500 / 10 = $1,950
Opportunity cost per month = 2,000 / 10 boats
= $200
Contract price = 275 + 1,950 + 200
= $2,425
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period:
Office Expenses Total Allocation Basis
Salaries $30,000 Number of employees
Depreciation 20,500 Cost of goods sold
Advertising 41,500 Net sales
Item Drilling Grinding Total
Number of employees 1080 1620 2700
Net sales $326,625 $477,375 $804,000
Cost of goods sold $76,500 $127,500 $204,000
The amount of the total office expenses that should be allocated to Grinding for the current period is : ____________
Answer:
Total allocated costs= $63,221.7
Explanation:
First, we need to calculate the allocation rates based on the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Salaries= 30,000/2,700= $11.11 per number of employees
Depreciation= 20,500/204,000= $0.10 per cost of goods sold dollar
Advertising= 41,500/804,000= $0.052 per net sales dollar
Now, we can allocate costs to Grinding:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Salaries= 11.11*1,620= 17,998.2
Depreciation= 0.10*204,000= 20,400
Advertising= 0.052*477,375= 24,823.5
Total allocated costs= $63,221.7
Heath loves candy bars and gummy bears. After using his entire $30 budget at the local supermarket he finds that the marginal utility from the last candy bar he consumed was 30 and the last bag of gummy bears was 60. Assuming he has maximized his utility, what could be true about the prices of gummy bears and candy bars?
Answer:
Bag of gummy bears must cost twice as that of candy bar.
Explanation:
The cost of candy bar should be less than gummy bear because marginal utility of candy bar is lower than gummy bear. The candy bar will be consumed more therefore its price should be lower. When the price of good will be lower, it will be consumed more.
A company produces a single product. Variable production costs are $12.50 per unit and variable selling and administrative expenses are $3.50 per unit. Fixed manufacturing overhead totals $41,000 and fixed selling and administration expenses total $45,000. Assuming a beginning inventory of zero, production of 4,500 units and sales of 3,850 units, the dollar value of the ending inventory under variable costing would be: Multiple Choice $10,400 $5,850 $8,125 $13,975
Answer:
the third option is correct - $8,125
Explanation:
The calculation of the ending inventory under variable costing is given below:
Ending inventory value (Variable costing) os
= Variable production cost per unit × No. of units
= $12.50 × (4,500 - 3,850)
= $8,125,
Hence, the ending inventory under variable costing is $8,125
Therefore the third option is correct
Which of the following is a step in the creation of an Operational Definition?
a. select a sponsor
b. conduct a test to check for potential misinterpretation
c. list the suppliers
d. establish the problem
The answer to the question is D: Establish the problem.
The operational definition gives a meaning to used terminologies and procedures.
In order to create an operational definition, the following steps are necessary for one to take:
You have to have an identification of the features that you want to measure, this is the same as the problem establishment.The next step lies in the selection of the instrument that you intend to useYou have to give a definition of the method of testingStatement of the criteria for decision makingDocumentation of the definitionLastly you have to test the operational definitionRead more at https://brainly.com/question/13402810?referrer=searchResults
Red Co. recorded a right-of-use asset of $170,000 in a 10-year finance lease. Payments of $27,667 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be
,Answer: $147,599.30
Explanation:
Lease payment = Interest component + Principal component
Year 1:
Interest = 10% * 170,000
= $17,000
Principal component = 27,667 - 17,000
= $10,667
Lease payable will drop to:
= Lease balance - Principal component
= 170,000 - 10,667
= $159,333
Year 2:
Interest = 10% * 159,333
= $15,933.30
Principal component = 27,667 - 15,933.30
= $11,733.70
Lease payable balance will drop to:
= 159,333 -11,733.70
= $147,599.30
41 had investments in stock funds 91 had investments in bond funds 60 had investments in money market funds 47 had investments in stock funds and bond funds 36 had investments in stock funds and money market funds 36 had investments in bond funds and money market funds 22 had investments in all three funds a. How many employees had no fund investments
Answer:
The answer is "22 and 80"
Explanation:
The important part is to understand how the Venn diagram can assist you with your numbers.
You cannot draw this one, and you can create one as follows:
the 3 sorts of funding, then make your way back thru the list
this is the figure in the center - "22 had all 3 funds"
where the four dimensions meet. In the next three statements, you'll be able to:
Work out where 2 circles connect (remember all 22 of those circles are connected).
That's because the numerals have been already placed throughout the center zone.
bond & money market solenoid valves at a ratio of [tex]36-22=14[/tex]
[tex]36-22=14[/tex] as to where the corporate market and the term deposit intersect
[tex]47-22=25[/tex] as to where equities and bonds connect You can use the top 3 statements to work out all the values in a table.
(Set of) just one circle (circle)
for stock the number is [tex]141-(22+14+25)=80[/tex]
for the bond, the number is[tex]91-(22+14+25)=30[/tex]
for the money market, the number is [tex]60-(22+14+14)=10[/tex]
(universal set) Lastly, get the number that goes into the rectangle.
[tex]\to 200-(80+30+10+25+14+14+22)=5[/tex]
[tex]a) 22\\b) 80[/tex]
Brownley Company has one service department and two operating (production) departments. Payroll Department costs are allocated to the two operating departments in proportion to the number of employees in each. Listed below are the operating data for the current period: Department Direct Expenses No.of Employees Payroll $ 26,000 Milling 80,000 52 Assembly 109,600 78 The total cost of operating the Milling Department for the current period is: rev: 12_17_2020_QC_CS-243789 Multiple Choice $90,400. $95,600. $10,400. $15,600. $80,000.
Answer:
$90,400
Explanation:
Calculation to determine Cost of operating mining department
Using this formula
Cost of operating mining department= Direct Cost + Payroll cost allocated
Let plug in the formula
Cost of operating mining department= 80,000 + (26,000/130)*52
(52+78=130)
Cost of operating mining department= 80,000 + $10,400
Cost of operating mining department= $90,400
Therefore Cost of operating mining department is $90,400
A company makes wireless routers. Their profit from each sale is $86.5. Every router that is returned as faulty results in a loss of $10.5. These routers cannot be resolved and therefore are scrapped. If 2% are faulty, what is the profit(or loss) the company can expect to make from selling 96.0 units
Answer:
The expected profit is $8,117.57
Explanation:
The computation of the profit or loss that the company could expect is given below:
The Probability of non-faulty router is
= 1 - 0.02
= 0.98
Now
Expected profit/loss is
= 96 × (0.98 × 86.5 - 0.02 × 10.6)
= $8,117.57
hence, The expected profit is $8,117.57
Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 percent compounded annually. Calculate the effective rates and state which bank offers the lowest cost of borrowed capital.
Answer and Explanation:
The computation is given below:
For Bank A,
Effective annual rate is
= (1 + 0.10 ÷ 12)^12 - 1
= 10.47%
For Bank B,
Effective annual rate is
= (1 + 0.11 ÷ 4)^4 - 1
= 11.46%
And,
For Bank C,
Effective annual rate = 12%
Therefore, Bank A is best to borrow at lowest effective annual rate
Profit Center Responsibility Reporting for a Service Company
Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:
Revenues—N Region $1,039,000
Revenues—S Region 1,281,400
Revenues—W Region 2,205,700
Operating Expenses—N Region 658,400
Operating Expenses—S Region 762,600
Operating Expenses—W Region 1,333,900
Corporate Expenses—Dispatching 518,400
Corporate Expenses—Equipment Management 259,700
Corporate Expenses—Treasurer’s 158,000
General Corporate Officers’ Salaries 349,000
The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:
North South West
Number of scheduled trains 5,400 6,500 9,700
Number of railroad cars in inventory 1,200 2,000 1,700
Question Completion:
1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations Thomas Railroad Company Divisional Income Statements For the Quarter Ended December 3:1 North South West Revenues Operating expenses Income from operations before service department charges Service department charges: Dispatching Equipment Management Total service department charges Income from operations
2. What is the profit margin of each division? Round to one decimal place Region North Region South Region West Region Identify the most successful region according to the profit margin Profit Margin 0%6
3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?
a. The method used to evaluate the performance of the divisions should be reevaluated
b. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).
c. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).
d. None of these choices would be Included
e. All of these choices (a, b & c) would be included.
Answer:
Thomas Railroad Company
1. Thomas Railroad Company
Divisional Income Statements
For the Quarter Ended December 3:
Divisions North (N) South (S) West (W)
Revenues $1,039,000 $1,281,400 $2,205,700
Operating expenses 658,400 762,600 1,333,900
Income from operations
before service
department charges $380,600 $518,800 $871,800
Service department charges:
Dispatching $63,600 $106,000 $90,100
Equipment management 39,500 47,550 70,950
Total service
department charges $103,100 $153,548 $161,050
Income from operations 277,500 $365,252 $710,750
2. Profit margin ratio 26.7% 28.5% 32.2%
West's performance is above all the rest, with a profit margin of 32.2%.
3. e. All of these choices (a, b & c) would be included.
Explanation:
Divisions North (N) South (S) West (W)
Revenues $1,039,000 $1,281,400 $2,205,700
Operating expenses 658,400 762,600 1,333,900
Corporate Expenses—Equipment Management 259,700
Corporate Expenses—Treasurer’s 158,000
General Corporate Officers’ Salaries 349,000
Additional data:
Divisions North (N) South (S) West (W) Total
Number of scheduled trains 5,400 6,500 9,700 21,600
Number of railroad cars in inventory 1,200 2,000 1,700 4,900
Corporate Expenses—Equipment Management 259,700/4,900 = $53
Corporate Expenses—Treasurer’s 158,000/21,600 = $7.315
North (N) South (S) West (W) Total
Service departments costs:
Dispatching $63,600 $106,000 $90,100 $259,700
Equipment management 39,500 47,550 70,950 158,000
General Corporate Officers’ Salaries 349,000
Hollywood Construction Company recognizes revenue over time according to percentage of completion for its long-term construction contracts. During 2018, Hollywood began work on a $3,000,000 fixed-fee construction contract, which was completed in 2021. The accounting records disclosed the following data at year-end:
Cumulative contract costs incurred Estimated costs to complete at end of year
2018 $200,000 $1800,000
2019 $1100,000 1100,000
2020 2,000,000 4,00,000
For the 2020 year, Hollywood should have recognized gross profit on this contract of :___________
Answer:
Recognized gross profit on this contract for the 2020 year = $100,000
Explanation:
Note: See the attached excel file for the Calculation of Recognized Gross Profit on this contract for the 2020 year (in bold red color).
In the attached excel file, Recognized Gross Profit for Each Year is calculated using the following formula:
Recognized Gross Profit = Revenue for Current Period - Actual Cost Incurred
From the attached excel file, we have:
Recognized gross profit on this contract for the 2020 year = $100,000
A _____________ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.
Answer: differentiation strategy
Explanation:
The differentiation strategy refers to the marketing strategy that is designed in order to distinguish the product and services of a company from other companies.
Product differentiation helps in the development of a strong value proposition which ensures that the product is attractive to the audience. The differentiation strategy ensures that the product is unique from others and this creates a competitive advantage.
