Answer:
company B
company B
Explanation:
A company has comparative advantage in production if it produces at a lower opportunity cost when compared to other companies.
Opportunity cost of producing cell phones
company A = 100 / 50 = 2
company B = 200 / 150 = 1.3
The opportunity cost of company B is lower than that of company A. Company B has a comparative advantage in the production of cell phones
A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Company B produces 200 computers while company A produces 100 computer. Company B has an absolute advantage in the production of computers
Nick sees a commercial for a Brand X clothing company that depicts the wearers of the clothes out having a good time with friends. Although he doesn't particularly need new clothes, the commercial prompts him to buy a Brand X t-shirt. This illustrates a common.......... of advertising.
Answer:
Critique of
Explanation:
Advertising
This simply is used to give notice, pass informations, for notification etc. from a known source and it is delivered through a mass-mediated channel that is set up to persuade the masses.
The 3 main components of successful advertising includes information, reasoning, and emphases.
The critiques of advertising:
There are several critiques of advertising. It includes the fact that the society is wasting resources, companies manipulate people's tastes, it hinders competition because it creates the perception that products are more differentiated than they are, allowing higher assumptions or markups.
The 4 types of advertising criticisms includes the effect, taste, role, and appropriateness.
MC Qu. 90 Marks Corporation has two operating... 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 ExpensesTotal Allocation Basis Salaries$44,000 Number of employees Depreciation 21,000 Cost of goods sold Advertising 44,000 Net sales ItemDrilling Grinding Total Number of employees 900 2,100 3,000 Net sales$350,000 $525,000 $875,000 Cost of goods sold$91,200 $148,800 $240,000 The amount of salaries that should be allocated to Grinding for the current period is:
Answer:
$30,800
Explanation:
Amount of salaries to allocated to Grinding = Total salary cost * Number of employees in grinding/Total Number of employees
Amount of salaries to allocated to Grinding = $44,000 * 2,100/3,000
Amount of salaries to allocated to Grinding = $44,000 * 0.7
Amount of salaries to allocated to Grinding = $30,800
So, the amount of salaries that should be allocated to Grinding for the current period is $30,800
Financial information for Forever 18 includes the following selected data: ($ in millions except share data) 2021 2020 Net income $ 160 $ 171 Dividends on preferred stock $ 22 $ 17 Average shares outstanding (in millions) 250 300 Stock price $ 11.92 $ 10.87 Required: 1-a. Calculate earnings per share in 2020 and 2021.
Answer:
Earnings per share = (Net income - Preferred dividends) / Number of shares outstanding
2020:
= (171 - 17) / 300
= $0.51 per share
2021:
= (160 - 22) / 250
= $0.55 per share
On November 1, Bahama National Bank lends $3.7 million and accepts a six-month, 9% note receivable. Interest is due at maturity. Record the acceptance of the note and the appropriate adjustment for interest revenue at December 31, the end of the reporting period.
Answer:
11/01
Dr Cash $3.7 million
Cr Notes Payable $3.7 million
12/31
Dr Interest expense $55,500
Cr Interest payable $55,500
Explanation:
Preparation of the journal entries to Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.
11/01
Dr Cash $3.7 million
Cr Notes Payable $3.7 million
(To record issuance of the note)
12/31
Dr Interest expense $55,500
Cr Interest payable $55,500
(To record adjustment for interest expense)
Interest Expense = Face Amount x Interest Rate x Time Period
Interest Expense= $3.7 million x .09x 2/12 Interest Expense=$55,500
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Answer:
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Mr. and Mrs. Hennesy met with their adviser and concluded that they would need $40,000 per year after they retire in order to live comfortably. They plan to retire 10 years from now and expect to enjoy 20-year of happy retirement before they go to the great beyond. How much should they deposit now in a bank account paying 9 percent to reach financial happiness during retirement
Answer:
Mr. and Mrs. Hennesy
They should deposit $337,928.65 now.
Explanation:
a) Data and Calculations:
Amount required per year after retirement = $40,000
Period of years during retirement = 20 years
Total amount required for 20 years = $800,000 ($40,000 * 20)
Interest rate = 9%
N (# of periods) 10
I/Y (Interest per year) 9
PMT (Periodic Payment) 0
FV (Future Value) 800000
Results
PV = $337,928.65
Total Interest $462,071.35
In a job order costing system: Select one: A. Each department accumulates costs and then allocates them to all units produced. B. The processes involved in manufacturing products are essentially identical for all products. C. Production generally happens in a "continual flow". D. The end products are relatively homogenous. E. None of the above
Answer:
The correct answer is the option E: None of the above.
Explanation:
To begin with, in the field of business management and accounting the concept known as "Job Order Costing" refers specifically to the system that the managers of a company use in order to establish a better organization when it comes to terms of costing and due to the fact that they tend to be organizations that elaborate products that differ from each other regarding the materials they need to be produced properly. So therefore that this method focuses in the fact the company needs to calculate every cost the best possible for every different product that needs different tasks and jobs.
The following information relating to a company's overhead costs is available.
Actual total variable overhead$73,000
Actual total fixed overhead$17,000
Budgeted variable overhead rate per machine hour$2.50
Budgeted total fixed overhead$15,000
Budgeted machine hours allowed for actual output 30,000
Based on this information, the total variable overhead variance is:_______.
Answer: $2,000 favorable
Explanation:
Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead
Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour
= 30,000 * 2.50
= $75,000
Total variable overhead variance = 75,000 - 73,000
= $2,000 favorable
Favorable because the actual amount was less than the budgeted one.
Assuming a specific single project with normal cash flows and a cost of capital of 10%, which of the following statements will ALWAYS be true?
a. If NPV > 0 at the stated cost of capital (i.e., 10%), then NPV will also be > 0 at a cost of capital of 12%.
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0.
Answer:
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0
Explanation:
The net present value shows the net worth of the assets or the project at the discount rate or the cost of capital. In the case when the net present value comes in positive so the internal rate of return should be more than the cost of capital
Also the profitability index lies between -1 and +1 so if the net present value is positive so the profitability should be more than 1
Hence, b to e statements are correct
Classifying all data in an organization may be impossible. There has been an explosion in the amount of unstructured data, logs, and other data retained in recent years. Trying to individually inspect and label terabytes of data is expensive, time consuming, and not productive. Different approaches can be employed to reduce this challenge. Which of the following is not one these approaches?
A. Classify only the data that is most vital and contains the highest risk to the organization
B. Classify data by point of origin or storage location.
C. Classify data at use or time of inception.
D. Classify all forms of data no matter the risk to the organization.
At the end of 2010 Jarrett Corp. developed the following forecasts of net income:
Year Forecasted Net Income
2011 $20,856
2012 $22,733
2013 $24,552
2014 $27,252
2015 $29,978
Management believes that after 2015 Jarrett will grow at a rate of 7% each year. Total common shareholders' equity was $112,768 on December 31, 2010. Jarrett has not established a dividend and does not plan to paying dividends during 2011 to 2015. Its cost of equity capital is 12%.
Required:
Compute the value of Jarrett Corp. on January 1, 2011, using the residual income valuation model.
Answer:
$83,057.11
Explanation:
The value of the company is the present value of its residual income where the residual income is the net income in each year minus the implicit cost of capital
residual income=net income-(cost of equity capital*beginning shareholders' equity)
2011:
residual income=$20,856-( $112,768*12%)
residual income=$7323.84
stockholders' equity at the end of 2011=$112,768+$20,856=$133,624
2012
residual income=$22733-( $133624 *12%)
residual income=$6,698.12
stockholders' equity at the end of 2012=$133,624+$22733=$156,357
2013:
residual income=$24552-(12%*$156357)
residual income=$5,789.16
stockholders' equity at the end of 2013=$156,357+$24552=$180,909
2014;
residual income= $27252-(12%*$180909)
residual income=$5,542.92
stockholders' equity at the end of 2014=$180,909+$27252=$208,161
2015:
residual income=$29,978-(12%*$208161)
residual income=$4,998.68
Terminal value of residual income=2015 residual income*(1+terminal growth rate)/(cost of equity-terminal growth rate)
Terminal value of residual income=$4,998.68*(1+7%)/(12%-7%)=$106,971.75
value of the company=$7323.84/(1+12%)^1+$6,698.12/(1+12%)^2+$5,789.16 /(1+12%)^3+$5,542.92/(1+12%)^4+$4,998.68/(1+12%)^5+$106,971.75/(1+12%)^5
value of the company=$83,057.11
Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total aftertax annual cash flow by $2 million indefinitely. The current market value of Teller is $54 million, and that of Penn is $84 million. The appropriate discount rate for the incremental cash flows is 10 percent. Penn is trying to decide whether it should offer 45 percent of its stock or $72 million in cash to Teller’s shareholders.
a. What is the cost of each alternative? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, i.e. 1,234,567.)
Cash cost $
Equity cost $
b. What is the NPV of each alternative? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, i.e. 1,234,567.)
NPV cash $
NPV stock $
c. Which alternative should Penn choose?
Stock
Cash
Answer:
Penn Corp.
a. Cost of each alternative:
Cash cost $72 million
Equity cost $37.8 million
b) The NPV of each alternative:
NPV cash -$52 million ($20 - $72)
NPV stock $20 million ($20 - $0)
c. The alternative to choose:
Stock.
There is no cash flow with the offer of 45% of Penn's stock to the shareholders of Teller. Actually, there is no NPV with stock offer, except the administrative costs of issuing the shares to Teller's shareholders.
Explanation:
a) Data and Calculations:
After-tax annual cash flow = $2 million
Discount rate for the incremental cash flows = 10%
Present value of the perpetuity = $20 million ($2 m/10%)
Current market value of Teller = $54 million
Current market value of Penn = $84 million
Possible settlement options:
45% of stock = $37.8 million ($84 million * 45%)
Cash $72 million
Miller Juice, Inc. is not paying a dividend right now, but is expected to pay a $4.56 dividend three years from now. Investors expect that dividend to grow by 4% every year forever. If the required return on the stock investment is 14%, what should be the price of Miller Juice stock today
Answer:
$35.09
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
4.56 x (1.04) / (0.14 - 0.04) = $47.42
($47.42 + 4.56) / 1.14^3 = $35.09
Use the following information for the year ended December 31, 2022.
Supplies $1,500
Service revenue $19,000
Other operating expenses 10,000
Cash 15,000
Accounts payable 11,000
Dividends 6,000
Accounts receivable 4,000
Notes payable 1,000
Common stock 10,000
Equipment 9,500
Retained earnings (beginning) 5,000
Calculate the following:
a. Net income / (net loss)
b. Ending retained earnings
c. Total assets
Answer:
a. $9,000
b. $8,000
c. $30,000
Explanation:
a. Calculation to determine the Net income / (net loss)
Using this formula
Net Income = Revenues - Operating Expenses
Let plug in the morning
Net Income = $19,000 - $10,000
Net Income = $9,000
Therefore the Net income is $9,000
b. Calculation to determine Ending Retained Earnings
Using this formula
Ending Retained Earnings = Retained Earnings at the beginning + Net Income - Dividends paid
Let plug in the morning
Ending Retained Earnings = $5,000 + $9,000 - $6,000
Ending Retained Earnings = $8,000
Therefore Ending Retained Earnings $8,000
c. Calculation to determine the Total Assets
Using this formula
Total Assets = Supplies + Accounts receivables + cash + Equipments
Let plug in the formula
Total Assets = $1,500 + $4,000 + $15,000 + $9,500
Total Assets = $30,000
Therefore Total assets is $30,000
Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturityLPC issued the bonds:
Date Cash interest Effective interest Decrease in balance Outstanding balance
1/1/2021 $207,020
6/30/2021 $7,000 $6,211 $789 206,230
12/31/2021 7,000 6,187 813 205,417
6/30/2022 7,000 6,163 837 204,580
12/31/2022 7,000 6,137 863 203,717
6/30/2023 7,000 6,112 888 202,829
12/31/2023 7,000 6,085 915 201,913
6/30/2024 7,000 6,057 943 200,971
12/31/2024 7,000 6,029 971 200,000
Required:
What is the annual effective interest rate on the bonds?
Answer:
7%
Explanation:
Calculation to determine the annual effective interest rate on the bonds
Using this formula
Annual Stated interest = Annual cash interest / Face vale of bonds*100
Let plug in the formula
Annual Stated interest =($7000+$7000) / 200000*100
Annual Stated interest=$14,000/20,000
Annual Stated interest=7%
Therefore the annual effective interest rate on the bonds is 7%
Lopez Company has a single employee, who earns a salary of $60,000 per year. That employee is paid on the 15th and last day of each month. On January 15, based, in part, on the information set forth in the accounting records, the following must be withheld from the employee's pay: FICA—Social Security Taxes (at 6.2%), FICA—Medicare Taxes (at 1.45%), Employee Federal Income Taxes (in the amount of $400), Employee State Income Taxes (in the amount of $25), and Employee Medical Insurance (in the amount of $100). (The employee‘s paycheck has not yet been prepared.) Entries to prepare the January 15 journal entry for Lopez would include:
Answer:
Debit Salaries Expense $2,500
Credit FICA—Social Security Taxes Payable $155
Credit FICA—Medicare Taxes Payable $36.25
Cedit Employee Federal Income Taxes Payable $400,
Credit Employee State Income Taxes Payable $25
Credit Employee Medical Insurance Payable r $100
Credit Salaries Payable $1,783.75
Explanation:
Preparation of the January 15 journal entry for Lopez
January 15
Debit Salaries Expense $2,500
Credit FICA—Social Security Taxes Payable $155
(6.2%*$2,500)
Credit FICA—Medicare Taxes Payable $36.25
(1.45%*$2,500)
Cedit Employee Federal Income Taxes Payable $400,
Credit Employee State Income Taxes Payable $25
Credit Employee Medical Insurance Payable r $100
Credit Salaries Payable $1,783.75
($2,500-$155-$36.25-$25-$100)
MC Qu. 123 Fallow Corporation has... Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $450,000 $600,000 Salary expense 51,000 65,000 Cost of goods sold 155,000 275,000 The West Division occupies 11,250 square feet in the plant. The East Division occupies 6,750 square feet. Rent, which was $ 90,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.
Answer:
$187,750
Explanation:
Computation for operating income for the West Division.
OPERATING INCOME FOR THE WEST DIVISION
Sales $450,000
Less Cost of goods sold ($155,000)
Gross profit $295,000
($450,000-155,000)
Less: Salary Expense ($51,000)
Allocated rent ($56,250)
($90,000 * 11250/18,000)
West Division income $187,750
Total area of both division = 11,250 + 6,750 = 18,000 square feet
Therefore operating income for the West Division is $187,750
Which of the following statements about the monetary aggregates is true?
a. The growth rates of M1 and M2 always track each other closely.
b. M1 is greater than M2.
c. When the growth rate of M2 increases, the growth rate of M1 must also increase.
d. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same.
Given that, in billions of U.S. dollars, we have in currency, in demand deposits, in traveler's checks, in savings deposits, and in other checkable deposits. The total M1 amount in this economy is $__________
Answer: D. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same.
Explanation:
1. Since M2 = M1 + Saving deposit + Time deposits + Money Market deposit of individuals, then from the options given, the true statement about the monetary aggregate is that when you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same. Therefore, the fire option is D.
2. Your second question isn't well written but let's assume some figures in order to solve the question.
Let's say,
Currency = $863.2 billion
Demand deposit = $573.5 billion
Traveler's cheque = $3.8 billion
Savings deposit = $5237.8
Other checkable deposit = $319
Therefore, the total M1 amount in this economy will be:
M1 = Currency + Demand deposit + Travelers check + Other checkable deposits
= 863.2 + 573.5 + 3.8 + 319
= $1759.5 billion
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 6,100,000 $ 10,100,000 $ 9,200,000 Average operating assets $ 1,525,000 $ 5,050,000 $ 2,300,000 Net operating income $ 317,200 $ 929,200 $ 225,400 Minimum required rate of return 15.00 % 18.40 % 12.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity
Answer:
1. See the calculations under part 1 below.
2. We have:
Division A's Residual Income (loss) = $88,450
Division B's Residual Income (loss) = $0
Division C's Residual Income (loss) = ($50,600
3.a. Only Division C will accept the investment opportunity.
3.b. Divisions A and C will accept the investment opportunity.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Selected sales and operating data for three divisions of different structural engineering firms are given as follows:
Division A Division B Division C
Sales $ 6,100,000 $ 10,100,000 $ 9,200,000
Average operating assets $ 1,525,000 $ 5,050,000 $ 2,300,000
Net operating income $ 317,200 $ 929,200 $ 225,400
Min. req'd rate of return 15.00 % 18.40 % 12.00 %
Required:
1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover.
2. Compute the residual income (loss) for each division.
3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?
The explanation of the answers is now provided as follows:
1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover.
The relevant formulae to use are as follows:
Margin = Net Operating Income / Sales
Turnover = Sales / Average Operating Assets
Return on Investment = Margin * Turnover
Therefore, we have:
Division A:
Margin = $317,200 / $6,100,000 = 0.0520, or 5.20%
Turnover = $6,100,000 / $1,525,000 = 4 times
Return on Investment = 5.2% * 4 = 0.2080, or 20.80%
Division B:
Margin = $929,200 / $10,100,000 = 0.0920, or 9.20%
Turnover = $10,100,000 / $5,050,000 = 2 times
Return on Investment = 9.20% * 2 = 0.1840, or 18.40%
Division C:
Margin = $225,400 / $9,200,000 = 0.0245, or 2.45%
Turnover = $9,200,000 / $2,300,000 = 4 times
Return on Investment = Margin * Turnover = 2.45% * 4 = 0.0980, or 9.80%
2. Compute the residual income (loss) for each division.
The formula for calculating this is:
Residual Income (loss) = Net Operating Income - Minimum Required Return * Average Operating Assets
Therefore, we have:
Division A's Residual Income (loss) = $317,200 - (15.00 % * $1,525,000) = $88,450
Division B's Residual Income (loss) = $929,200 - (18.40 % * $5,050,000) = $0
Division C's Residual Income (loss) = $225,400 - (12.00 % * $2,300,000) = ($50,600)
3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return.
3-a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?
The decision criterion is for a division to accept the investment opportunity if its Return on Investment (ROI) is lower than 17%.
Based on the results in part 1 above, only Division C will accept the investment opportunity.
3-b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?
The decision criterion is for a division to accept the investment opportunity if its minimum required rate of return is lower than 17%.
Based on the information in the question, Divisions A and C will accept the investment opportunity.
MC Qu. 108 Western Company is preparing.... Western Company is preparing a cash budget for June. The company has $11,300 cash at the beginning of June and anticipates $30,700 in cash receipts and $35,900 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Answer: Borrow $3,900
Explanation:
The amount of cash that the company will have in June would be:
= Beginning cash + Cash receipts - Cash disbursements
= 11,300 + 30,700 - 35,900
= $6,100
The bank however, expects Western to maintain a cash balance of $10,000. To get to that $10,000, Western would need to borrow the rest.
The amount to be borrowed is:
= 10,000 - 6,100
= $3,900
Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2020 profit of $300,000, assuming a single sole proprietor with no other earned income.
Answer: $25,802.70
Explanation:
Social security
Social security rates in 2020 for a single sole proprietor is 12.40% on the first $137,700:
= 12.40% * 300,000
= $17,074.80
Medicare Tax
First you need to remove a deduction of 7.65% from the income:
= 300,000 * (1 - 7.65%)
= $277,050
Medicare tax is 2.90% of this adjusted amount in addition to 0.9% for any amount above $200,000:
= (2.90% * 277,050) + (0.9% * (277,050 - 200,000))
= 8,034.45 + 693.45
= $8,727.90
Total Social security and Medicare:
= 17,074.80 + 8,727.9
= $25,802.70
Cochran's Furniture Outlet is issuing 25-year, 9 percent callable bonds. These bonds are callable in 4 years with a call premium of $45. The bonds are being issued at par and pay interest semi-annually. What is the yield to call
Answer:
a. Nper = 30
Explanation:
PMT = 45
FV = `1000
Price Pv = -1180
Rate (YTM) = ?
Using the MsExcel Rate function to derive YTM
Nominal annual yield to maturity = Rate(Nper, Pmt, -Pv, Fv) * 2
Nominal annual yield to maturity = Rate(30, 45, -1180, 1000) * 2
Nominal annual yield to maturity = 7.04%
b. Nper = 10
PMT = 45
Call Price = 1090
Price Pv = -1180
Rate (YTC) = ?
Using the MsExcel Rate function to derive YTM
Nominal annual yield to call = Rate(Nper, Pmt, -Pv, Fv) * 2
Nominal annual yield to call = Rate(10, 45, -1180, 1090) * 2
Nominal annual yield to call = 6.31%
C. Yes, the bond issue should call because the YTC is less than the YTM.
Denise will receive annual payments of $10,000 for the next 25 years. The discount rate is 6.8 percent. What is the difference in the present value of these payments if they are paid at the beginning of each year rather than at the end of each year
Answer: $8,069.29
Explanation:
If it is paid at the beginning of the year, it accumulates an extra year of interest and would be an Annuity Due.
If it is paid at the end, it is an ordinary annuity.
Present value of annuity due = Annuity * Present value interest factor of Annuity due, 6.8%, 25 periods
= 10,000 * 12.673521
= $126,735.21
Present value of annuity = Annuity * Present value interest factor of annuity, 6.8%, 25 periods
= 10,000 * 11.866592
= $118,665.92
Difference :
= 126,735.21 - 118,665.92
= $8,069.29
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $23,490 and variable expenses of $7,047. Product Y45E had sales of $34,800 and variable expenses of $13,920. The fixed expenses of the entire company were $15,200. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:____________
Answer:
Contribution margin ratio = Contribution margin / Sales
Product C90B CMR = ($23,490 - $7,047) / $23,490 = $16,443 / $23,490 = 0.7 = 70%
Product Y45E CMR = ($34,800 - $13,920) / $34,800 = $20,880 / $34,800 = 0.6 = 60%
The rule, the Higher the contribution margin ratio, the lower the Break-Even point. So, if sales mix shifts to product C90B, overall Break-even point Decreases.
Which of the following The holding-period return (HPR) on a share of stock is equal to(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds
Answer: D. I, II, and III.
Explanation:
The demand for investment funds determines the demand for loanable funds and when this is higher than the supply, the rate increases. The reverse it true. It therefore affects real interest rates.
The savings of households and business firms are the source of loanable funds so if these are high relative to demand, the rate will decrease. The reverse is true.
Government demand for funds will increase interest rates as the supply will decrease when the government borrows massively. The reverse is true.
All three therefore impart real interest rates.
Moccasin Company manufactures cotton shirts. 18,000 shirts are produced during the first week of July. The unit quantity standard is 3 meters cloth per shirt and the actual quantity used was 0.50 meters per shirt. Determine the quantity of cloth that should be used for the actual output of 18,000 shirts.
Answer: 54,000 meters
Explanation:
When determining the quantity of cloth t be used in the making of the shirts, it is best to use the standard quantity because this is what the company thinks that it needs to be able to produce a shirt.
Quantity of cloth for 18,000 shirts:
= Number of shirts * standard quantity per shirt
= 18,000 * 3
= 54,000 meters
what are the four characteristics of bussiness negotiation
Answer: ability to express thoughts precisely
integrity is the most important characteristics
having a listening skill
voluntary communication where no one is forced to have this negotiation
Explanation:
Năm trước, doanh thu đạt được 1 triệu $, trong đó 250.000 là doanh thu bán chịu; số dư khoản phải thu khách hàng trung bình là 41.096$. Năm nay, công ty kỳ vọng doanh thu sẽ tăng thêm 50%, tỷ lệ doanh thu bán chịu/doanh thu không đổi, kỳ thu tiền bình quân tăng 50% (giả sử một năm có 365 ngày). Nếu khoản phải thu tăng thêm được tài trợ từ bên ngoài (chẳng hạn như vay ngân hàng) thì công ty cần thêm nguồn tài trợ này là bao nhiêu?
punda mavana Umbi. posddajh jzushl Unni Sunni nayye mayiru
what is probability/impact matrix
Explanation:
probability and impact metrix is a tool for the project team iad in prioritizing risks.
Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory rate based on direct labor hours. Information for the month of May, Bugaboo's first month of operations, follows:
Budgeted Unit Volume Direct Labor Hours per unit
Fluffs 80,000 boxes 0.10
Crinkles 60,000 boxes 0.20
Snaps 20,000 boxes 0.50
Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit.
Bugaboo's budgeted overhead costs for May are:
Indirect Labor $280,000
Utilities $65,000
Supplies $45,000
Depreciation $30,000
Total $420,000
Assume that Bugaboo sells all the boxes it produces in May. Round your answers to two decimal places, if necessary.
a. Compute Bugaboo's plantwide factory overhead rate for May.
$_______per direct labor hour
b. Compute May's product cost for each type of cookie.
Cost per box Fluffs Crinkles Snaps
Total manufacturing cost $____ $____ $ ____
Answer:
Bugaboo Co.
a. Bugaboo's plantwide factory overhead rate for May.
$14 per direct labor hour
b. May's product cost for each type of cookie.
Fluffs Crinkles Snaps
Cost per box $3.00 $4.90 $11.55
Total manufacturing cost $240,000 $294,000 $231,000
Explanation:
a) Data and Calculations:
Budgeted Unit Volume Direct Labor Hours Total DLH
per unit
Fluffs 80,000 boxes 0.10 8,000
Crinkles 60,000 boxes 0.20 12,000
Snaps 20,000 boxes 0.50 10,000
Total direct labor hours for the three products = 30,000
Budgeted overhead costs for May are:
Indirect Labor $280,000
Utilities $65,000
Supplies $45,000
Depreciation $30,000
Total $420,000
Overhead rate per direct labor hour = $14 ($420,000/30,000)
Fluffs Crinkles Snaps
Direct labor hours 8,000 12,000 10,000
Direct materials per unit $0.75 $0.40 $0.30
Direct materials $60,000 $24,000 $6,000
Direct labor costs 68,000 102,000 85,000
Overhead allocated 112,000 168,000 140,000
Total production costs $240,000 $294,000 $231,000
Cost per box $3.00 $4.90 $11.55
