Answer:
Schweser Satellites Inc.
The incremental profit is:
= $845,000
Explanation:
a) Data and Calculations:
Selling price of Satellite Earth Station = $95,000 each
Total sales revenue = $4,750,000 ($95,000 * 50)
Fixed costs, F = $2.5 million
Annual production and sales units = 50 units
Total profits = $500,000
Total contribution = $3 million ($2.5 m + $500,000)
Variable costs = $1,750,000 ($4,750,000 - $3,00,000)
Variable cost per unit = $35,000 ($1,750,000/50)
Assets = $4 million
Equity = $4 million
Additional assets = 4.5 million
Additional fixed operating costs = $380,000
New assets = 8.5 million
Fixed operating costs = $2.88 million
Variable cost reduction per unit = $12,000
New variable cost per unit = $23,000 ($35,000 - $12,000)
Production and sales units = 65 (50 + 15)
New selling price per unit = $88,000
Cost of equity = 16%
Tax rate = 0%
Profit under new arrangements:
Contribution per unit = $65,000 ($88,000 - $23,000)
Total contribution margin = $4,225,000 ($65,000 * 65)
Fixed operating costs = $2,880,000
Net operating profit $1,345,000
Incremental profit = $845,000 ($1,345,000 - $500,000)
16. List five benefits of therapeutic massage
Stress relief, anxiety reduction, improved sleep quality, reduced muscle pain, muscle soreness, range of motion-flexibility, helps with immunity and inflammation.
Beginning inventory for the month contained 3,000 units that were 35% complete with respect to materials. 57,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be
Answer: 57,550 units
Explanation:
When using the weighted average method, the units completed and transferred out are assumed to include the opening inventory.
The weighted average equivalent units are therefore:
= Units completed and transferred out + Equivalent ending units
= 57,000 + (10% * 5,500)
= 57,000 + 550
= 57,550 units
Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $19,000 and that for the pulley system is $20,000. The firm's cost of capital is 12%. After-tax cash flows, including depreciation, are as follows:
Year Truck Pulley
1 $5,100 $7,500
2 5,100 7,500
3 5,100 7,500
4 5,100 7,500
5 5,100 7,500
Required:
a. Calculate the IRR for each project.
b. What is the correct accept/reject decision for this project?
c. Calculate the NPV for each project. Round your answers to the nearest dollar, if necessary.
d. What is the correct accept/reject decision for this project?
Answer:
Find attached excel file
Explanation:
The internal rate of return is the discount rate at which the present value of future cash flows is the same as the initial investment outlay, which can be determined using excel the IRR function shown below:
=IRR(values)
values are the cash flows from initial investment outlay up until the cash inflow in year 5.
The net present value is the present value of future cash flows discounted at the firm's cost of capital minus the initial investment outlay
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.
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maketing căn bản là gì
Answer:
Basic marketing typically involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a business firm, so as to enhance the availability of goods and services to meet the unending requirements, needs or wants of the end users or consumers through advertising and market research.
Basically, it comprises all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers.
Hence, basic marketing typically involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Marketing plan can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.
Generally, a marketing plan is made up of the four (4) Ps and these includes;
I. Product.
II. Price.
III. Place.
IV. Promotions.
A code of ethics for IT auditors and organizations primarily helps to set clear ___________. IT guidelines financial guidelines career goals expectations
Answer: IT guidelines
Explanation:
In the IT audit process, a computer system is checked to see if it not only performs the duties for which it was set up, but also if it protects the assets of the company and maintains data integrity.
A code of ethics for such a process would therefore be one that helps set clear IT guidelines to ensure that the computer system does what it is supposed to do and protects the company's assets as well.
A firm has inventory of $11,400, accounts payable of $9,800, cash of $750, net fixed assets of $13,125, long-term debt of $9,500, accounts receivable of $6,600, and total equity of $11,700. What is the common-size percentage for the inventory?
Answer:
39.19%
Explanation:
Calculation to determine the common-size percentage for the net fixed assets
Using this formula
Common-size percentage=Net fixed assets /(Inventory+Cash+Net fixed assets+Accounts receivable )
Let plug in the formula
Common-size percentage=$12,150 / ($11,400 + $850 + $12,150 + $6,600)
Common-size percentage= 39.19%
Therefore the common-size percentage for the net fixed assets is 39.19%
Brickhouse is expected to pay a dividend of $3.45 and $2.58 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 4.1 percent. What is the stock price today if the required return is 11.9 percent
Answer:
$32.6
Explanation:
Brickhouse is expected to pay a dividend of $3.45 and $2.58 over the next 2 years
The company is expected to increaser it's annual dividend at 4.1%
= 4.1/100
= 0.041
Required return is 11.9%
= 11.9/100
= 0.119
Therefore the stock price for today can be calculated as follows
= 2.58(1+0.041)/0.119-0.041
= 2.58(1.041)/0.078
= 2.6857/0.078
= 34.43
3.46/(1+0.119)+2.58/(1+0.119)^2+34.43/(1+0.119)^2
= 3.46/1.119+2.58/1.119^2+34.43/1.119^2
= 3.093+2.060+27.5
= 32.6
Hence the stock price for today is $32.6
Consider the baggage check-in process of a small airline. Check-in data indicates that from 9am to 10am, 190 passengers checked in. Moreover, based on counting the number of passengers waiting in line, airport management found that the average number of passengers waiting for check-in was 56.
Required:
How long did the average passenger have to wait in line?
Answer:
17.68 minutes
Explanation:i
In order to calculate the average time passenger had to wait in line, we would first divide the average number of passengers check-in in with the passengers checked in from 9 am to 10 am (which was the highest number of check-ins of the day). Then we would multiply that number by 60 minutes. As shown below:
First,
= 56 average number of passengers checked-in / 190 passengers checked-in from 9 to 10 am
= 0.2947
Then
= 0.2947 x 60 minutes
= 17.68 minutes
Hence, 17.68 minutes did the average passenger wait in line.
"Idaho Mining, Inc. borrows at prime plus 1.5% on its line of credit. The line requires a 15% compensating balance. If the prime rate is 9% and Idaho Mining plans on borrowing for a period of one year, what is the nominal APR of the line of credit?"
Answer:
the nominal annual percentage rate for the line of credit is 12.4%
Explanation:
The computation of the nominal annual percentage rate is given below:
Nominal Annual percentage rate is
= (Prime rate + line of credit) ÷ (1 - compensation balance percentage)
= (9% + 1.50%) ÷ (1 - 15%)
= 10.50% ÷ 85%
= 12.4%
Hence, the nominal annual percentage rate for the line of credit is 12.4%
The same should be considered
A Whopper combo meal costs $3.00 and gives you an additional 15 units of utility; a meal at the Embassy Suites costs $29.00 and gives you an additional 145 units of utility. Based solely on the information you have, using the theory of rational choice, you most likely would:
Answer:
be indifferent between the two meals
Explanation:
Marginal utility is the additional satisfaction received from consuming an additional unit of a good or service. Marginal utility is the additional utility derived from consuming one more unit of a good. the consumption decision is to consume more units of a good that gives the higher utility per good.
Marginal utility per good = marginal utility / price of the good
Whopper combo meal = 15 / 3 = 5
a meal at the Embassy Suites = 145 / 29 = 5
both meals have the same marginal utility of 5. She would be indifferent between consuming the two meals
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $148,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000.
Required:
a. Compute the depreciable cost per unit.
b. Prepare a depreciation schedule.
Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 9% sales tax. Record the entry for the $16,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
Answer:
See journal entries under the explanation below:
Explanation:
The journal entries will look as follows:
Dextra Computing
Journal Entries
Date Particulars Debit ($) Credit ($)
Sep 30 Cash 17.440
Sales 16,000
Sales Taxes Payable ($16,000 * 9%) 1,440
(To record the cash sale and 9% sales tax)
Cost of Goods Sold 11,200
Merchandise Inventory 11,200
(To record the cost of sales.)
Oct 15 Sales Taxes Payable ($16,000 * 9%) 1,440
Cash 1,440
(To record sending sales tax to the government.)
During the week, we will explore the differences between cash-basis and accrual-basis accounting, and learn the steps required to complete the accounting cycle. With that in mind, let's begin by discussing the following question:
Why do companies make adjusting entries?
Answer and Explanation:
Adjusting entries is to made for recording all types of expenses and revenues in a correct manner. There are some transactions such as accrued interest or revenue that could be realize at the time when the entries are depend upon the documents and transactions should be recorded. It is to be made in order to prepared the correct financial statements by considering the prepaid expenses that are adjusted, depreciation expense, unearned revenue etc
Hexon Printing Company projected the following information for next year: Selling price per unit $80 Contribution margin per unit $40 Total fixed costs $120,000 Tax rate 40% How many units must be sold to obtain an after-tax profit of $60,000
Answer:
Break-even point in units= 5,500
Explanation:
Giving the following information:
Selling price per unit $80
Contribution margin per unit $40
Total fixed costs $120,000
Tax rate 40%
Desired profit= $60,000
First, we need to calculate the earnings before tax:
EBT= desired profit / (1 - t)
EBT= 60,000 / (1 - 0.4)
EBT= $100,000
Now, the break-even point in units using the following formula:
Break-even point in units= (fixed costs + EBT)/ contribution margin per unit
Break-even point in units= (120,000 + 100,000) / (80 - 40)
Break-even point in units= 5,500
If you had to recommend one product, which product would you recommend they create? Underline or highlight your answer:
● Organic Bloom Shampoo.
● Moisturizing Black Soap Shampoo with Dandruff Control.
● Coconut Protein Shampoo and Conditioner.
Answer:
the second option
Explanation:
my dandruff is pretty bad
Moisturizing Black soap Shampoo with Black dandruffs Ultimate control is what I would seriously recommend. A lot of people are getting dandruffs and lices more nowadays, so the product would be very fitting for the demand.
During its most recent fiscal year, Raphael Enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. Fixed costs amounted to $729,000 and pretax income was $999,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question
Answer:
$2,889,000
Explanation:
Sales units = 270,000 units
Sale Price = $17.10
Fixed cost = $729,000
Sales Value = 270,000 * $17.10
Sales Value = $4,617,000
Contribution Margin = Sales- Fixed cost
Contribution Margin = $4,617,000 - $729,000
Contribution Margin = $3,888,000
Variable Cost = Contribution margin- Pretax income
Variable Cost = $3,888,000 - $999,000
Variable Cost = $2,889,000
So, $2,889,000 is the amount that should have been reported as variable costs in the company's contribution margin income statement for the year in question.
If a firm enjoys economies of scale,
its average total cost will increase as production increases
its total costs will decrease as production increases
its average total cost will decrease as production increases
its marginal revenue will increase as production increases
Answer: Its average total cost will decrease as production increases
Explanation: Variable cost will decrease as a result of economies of scale, therefore the cost/unit or average total cost will decrease.
Cash Short and Over Entries
Listed below are the weekly cash register tape amounts for service fees and the related cash counts during the month of July. A change fund of $100 is maintained.
Date Change Fund Cash Register Actual Cash
Receipt Amount Counted
July 2 $100 $281.80 $379.00
July 9 100 311.50 411.50
July 16 100 304.10 406.90
July 23 100 318.20 416.00
July 30 100 293.60 397.50
1. Determine the ending balance of the cash short and over account.
2. Does it represent an expense or revenue?
Answer:
1. Ending balance of cash short and over account:
Ending cash = 100 beginning balance + Cash register amount - Actual cash counted
July 2 = 100 + 281.80 - 379.00
= $2.80 shortage because actual cash is less than it should be
July 9 = 100 + 311.50 - 411.50
= $0
July 16 = 100 + 304.10 - 406.90
= $2.80 surplus because actual cash is more
July 23 = 100 + 318.20 - 416.00
= $2.20 shortage
July 30 = 100 + 293.60 - 397.50
= $3.90 surplus
Balance = Surplus - shortages
= (3.90 + 2.80) - (2.80 + 2.20)
= $1.70
2. This is revenue because it is a surplus.
A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. The company returned $275 worth of merchandise and then paid the invoice within the 2% cash discount period. The total cost of this merchandise is:________
A. $3,725.00.
B. $3,925.00.
C. $3,995.00.
D. $4,000.50
E. $4,075.00.
The total cost of the merchandise purchased by the company is E. $4,075.00.
Data and Calculations:
Cost of goods purchased =$4,000
Freight-in = $350
Returned goods = $275
The total cost of goods = $4,075 ($4,000 + $350 - $275)
The cash discount received for early payment = $81.50 ($4,075 x 2%).
Thus, the total cost of the merchandise purchased by the company is E. $4,075.00.
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outline the various challenges that you are likely to face during the implementation of a dam.
Answer:
gybgdgzhdndnxn nxnnxndndnenens
Lewis Company's standard labor cost of producing one unit of Product DD is 3.3 hours at the rate of $12.4 per hour. During August, 43,900 hours of labor are incurred at a cost of $12.60 per hour to produce 13,100 units of Product DD.
1. Compute the total labor variance.
2. Compute the labor price and quantity variances.
3. Compute the labor price and quantity variances, assuming the standard is 3.7 hours of direct labor at $12.70 per hour.
Answer:
Compute the total labor variance.
Explanation:
Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT INPUT 49,200 cages Production time 630 labor hours Sales price: $3.40 per unit Wages $ 7.40 per hour Raw materials (total cost) $ 31,000 Component parts (total cost) $ 15,355.
Required:
Find the total productivity in Units Sold and Dollars of Sales per Dollar Input.
Answer:1) Total productivity in units sold = 0.96 units sold per dollar input
2) Total productivity in dollars== $ 3.28 dollars in sales per dollar input
Explanation:
Total output = output cages x sales price = 49,200 cages x $3.40 per unit = = $ 167,280
Total Input =wages+components+ raw materials
Wages = 630 labor hours x $7.40 = $4,662
Raw materials = $ 31,000
Component parts = $ 15,355
Total input =$51,017
1) Total productivity in units sold = Output in units / Input in dollars
=49,200 cages/$51,017 =0.96 units sold per dollar input
2) Total productivity in dollars= Output in dollars / Input =$ 167,280/$51,017 = $ 3.28 dollars in sales per dollar input
Aspen Technologies has the following budget data:
Estimated direct labor hours 8,200 Estimated direct labor dollars $64,200 Estimated factory overhead costs $170,100
If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is:_______.
a. $24.89
b. $20.74
c. $31.12
d. $16.60
Answer:
Overhead rate = $20.74
Explanation:
Below is the given values:
Given the direct labor hours = 8200
Direct labor dollars = $64200
Factory overhead costs =$170100
Use below formula to find the overhead rate.
overhead rate = Overhead cost / Direct labor hours
Now plug the values in formula:
Overhead rate = 170100 / 8200
Overhead rate = $20.74
Lemon company purchased 100 units for $20 each on January 31. It purchased 200 units for $30 each on February 28. It sold 200 units for $50 each from March 1 through December 31. If the company uses the first-in, first-out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31?
A. $6,350.
B. $4,350.
C. $1,600.
D. $4,750.
Answer:
Find detailed explanations below
Explanation:
Under the first-in-first-out inventory valuation method, the earlier stocks are sold first and the latest stocks remain in inventory.
In essence, the 200 units sold comprise of 100 units purchased on January 31 at $20 each and 100 units from purchases made on February 28 at $30 each as computed below
Cost of goods sold=(100*$20)+(100*$30)
Cost of goods sold=$5,000(the options are wrong)
The correct question for the options is provided below:
A company purchased 80 units for $20 each on January 31. It purchased 190 units for $25 each on February 28. It sold 190 units for $80 each from March 1 through December 31. If the company uses the first-in, first-out inventory costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.)
A.
$6,350
B.
$4,350
C.
$1,600
D.
$4,750
Cost of goods sold=(80*$20)+(110*$25)
Cost of goods sold=$4,350
A lower inflation rate will decrease the after-tax real interest rate when the government taxes nominal interest income.
a. True
b. False
False, SHOULD INCREASE after-tax real interest rates.
plan content of paragraph in outline form
Describe the events that occur in an efficient market in response to new information that causes the expected return to exceed the required return. What happens to the market value
Answer:
The efficient market hypothesis tells, in an equilibrium, the price of stocks or security is an unbiased estimate of the true values.
Explanation:
Thus, in the equilibrium, of security prices are neither an overvalued nor are undervalued. Suppose the investors learn new information about the company that suggests there stock is worth more than the current price. The security gets undervalued expected return exceeds the required return. Increased in demand for security from the investors with this new information will thus bid up the market value plus reduce its expected return until they are equal.A depreciation adjustment would include a debit to _____________________ and __________________________ to _______________
Answer:
Depreciation Expense, Credit, Accumulated Depreciation.
How would you need to shift the supply and demand curves in a market to result in a situation where equilibrium quantity increases while the equilibrium price change is indeterminate?
a. Supply must increase while demand decreases.
b. Either supply or demand must increase.
c. Both supply and demand must increase.
Answer:
C
Explanation:
An increase in supply would lead to a rightward shift of the supply curve. As a result price decreases and quantity increases.
An increase in demand leads to a rightward shift of the demand curve. As a result, equilibrium price and quantity increases.
Taking these two effects together, there is an increase in equilibrium quantity and an indeterminate change in equilibrium price
