Answer:
Question Aa. Alternative 1–$1,253,600
Alternative 2 –$1,230,300
Differential effect $ 23,300
b.The company should replace the old machine.
c Sunk cost $250,400
Question Ba. Alternative 1–$488,000
Alternative 2 –$466,000
Differential effect $ 22,000
b.The company should replace the old machine.
c Sunk cost $250,000
Explanation:
Question Aa. Preparation of a differential analysis dated September 13
DIFFERENTIAL ANALYSIS
Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)
September 13
Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential
on Income (Alternative 2)
Revenues:
Proceeds from sale of old
machine $ 0 $64,500 $64,500
Costs:
Purchase price 0 –$483,600 –$483,600
Variable production costs (8 years)–$1,253,600 –$811,200 $442,400
($156,700*8=$1,253,600)
($101,400*8=$811,200)
Income (Loss) –$1,253,600 –$1,230,300 $ 23,300
b. The company should replace the old machine.
c. Calculation for The sunk cost
Using this for formula
Sunk cost= Book value- Accumulated
depreciation
Let plug in the formula
Sunk cost=$601,300-$350,900
Sunk cost=$250,400
Question Ba. Preparation of a differential analysis dated September 13
DIFFERENTIAL ANALYSIS
Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)
September 13
Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential
on Income (Alternative 2)
Revenues:
Proceeds from sale of old
machine $ 0 $231,000 $231,000
Costs:
Purchase price 0 –$545,000 –$545,000
Variable production costs (8 years)–$488,000 –$152,000 $336,000
($61,000*8=$488,000)
($19,000*8=$152,000)
Income (Loss) –$488,000 –$466,000 $ 22,000
b. The company should replace the old machine.
c. Calculation for The sunk cost
Using this for formula
Sunk cost= Book value- Accumulated
depreciation
Let plug in the formua
Sunk cost=$600,000-$350,000
Sunk cost=$250,000
Hordel Company needs to determine a markup for a new product. Hordel expects to sell 6,100 units and wants a target profit of $93 per unit. Additional information is as follows: Variable product cost per unit $ 80 Variable administrative cost per unit 35 Total fixed overhead 53,000 Total fixed administrative 11,050 Using the variable cost method, what markup percentage to variable cost should be used
Answer:
See below
Explanation:
Total variable cost = Variable product cost + Variable administrative cost per unit
= (6,100 × $80 per unit) + (6,100 × $35)
= $488,000 + $213,500
= $701,500
Total fixed cost = Total fixed overhead + Total fixed administrative cost
= $53,000 + $11,050
= $64,050
Total fixed cost per unit = $64,050 ÷ 6,100 = $10.5
Total cost = Total variable cost + Total fixed cost
= $701,500 + $64,050
= $765,550
Target profit = 6,100 × $93 = $567,300
Desired selling price = Total cost + Target profit
= $765,550 + $567,300
= $1,332,850
Desired selling price per unit = $1,332,850 ÷ 6,100 = $218.5
Therefore,
Markup percentage on variable cost
= [(Desired selling price per unit - Variable cost per unit) ÷ Variable cost per unit] × Variable cost per unit
= [($218.5 - 115) ÷ (115)] × 115
= 103.5%
Based on the Marshall Laws of Derived Demand, labor demand is more inelastic when a. workers are making a product that uses a highly labor intensive technology b. workers are making a product with more inelastic demand c. workers are making a product that uses a capital input with elastic supply d. workers are making a product that uses a technology with a fixed labor-capital ratio
Answer:
b
Explanation:
According to Marshall Laws of Derived Demand, labor demand is more inelastic in the following circumstances :
the cost of employing labour constitutes a small proportion of the total cost of production.the demand for the product is relatively inelasticlabour cannot be easily substituted for in the production processwhen the supply of other factors of production is inelasticIf we consider the effect of taxes, then the degree of operating leverage can be written as:
DOL = 1 + [FC × (1 – TC) – TC × D]/OCF
Consider a project to supply Detroit with 28,000 tons of machine screws annually for automobile production. You will need an initial $4,800,000 investment in threading equipment to get the project started; the project will last for 5 years. The accounting department estimates that annual fixed costs will be $1,150,000 and that variable costs should be $215 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the 5-year project life. It also estimates a salvage value of $525,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $320 per ton. The engineering department estimates you will need an initial net working capital investment of $460,000. You require a return of 14 percent and face a tax rate of 25.
Required:
a. What is the percentage change in OCF if the units sold changes to 28,000?
b. What is the DOL at the base-case level of output?
Answer:
a) 0% change
b) 0.393
Explanation:
Degree of operating leverage: DOL = 1 + [FC × (1 – TC) – TC × D]/OCF
Machine screws to be supplied = 28,000 tons
Initial investment in threading equipment = $4,800,000
project period = 5 years
annual fixed cost = $1,150,000
variable cost = $215 per ton = 215 * 28,000 = $6,020,000
salvage value of project after dismantling costs = $525,000
selling price of project = $320 per ton = $8,960,000
initial networking capital investment = $460,000
Return = 14%
tax rate = 25% = 0.25
a) Determine the percentage change in OCF if the units sold changes to 28,000
Given : DOL = 1 + [FC × (1 – TC) – TC × D]/OCF
OCF = [(contribution * number of units sold) - fixed costs] * ( 1-tax) + depreciation*tax ----------- ( 1 )
contribution = sales price - variable cost = 320 - 215 = $105
number of units sold = 28,000
depreciation = 4,800,000 / 5 = $960,000
back to equation 1
OCF = [[ ( 105 *28,000) - 1,150,000 ] * ( 1 - 0.25 ) + 960,000 * 0.25 ]
= $1,582,500
Hence the percentage change = 0% ( Initial units to be sold as given in the question = 28,000 as well )
b) Determine the DOL at the base-case level of output
DOL = 1 + [FC × (1 – TC) – TC × D] / OCF
= 1 + [ 1,150,000 * ( 1 - 0.25 ) - 0.25 * 960,000 ] / 1,582,500
= 622501 / 1,582,500 = 0.393
Your company has finished working on an open world video game, CyberPerson 2080. You now have a decision to make. You can auction your game off to a publisher, or you can keep your game and do the marketing and publishing yourself. If you auction your game off, your analytics team estimates there is a 25% chance you will earn $5 million, a 35% chance you will earn $12 million, and a 40% chance you will earn $16 million. If you keep your game, your marketing and publishing costs will be $7 million. If you keep your game, your analytics team estimates there is a 30% chance your game will be a critical and commercial hit, a 25% chance your game will sell well and make gross revenues of $12 million, and a 45% chance another similar game will come out at the same time and you will make gross revenues of $1 million.
If your game is a critical and commercial hit, there is a 60% chance it is on the "best of the year" lists and makes gross revenues of $64 million, a 35% chance it stays on the top seller lists for weeks and makes gross revenues of $28 million, and a 5% chance it makes gross revenues of $18 million. Assume you make decisions using expected value, and you are an expected value maximizer. If you make the optimal decision, how much will you expect to earn from your game?
Answer:
CyberPerson 2080
If you make the optimal decision, the amount you will expect to earn from your game is:
= $11.85 million.
Explanation:
a) Data and Calculations:
Expected value of game being a critical and commercial hit:
Probability Gross Revenue Expected Revenue
60% $64 million $38.4 million
35% 28 million 9.8 million
5% 18 million 0.9 million
100% $49.1 million
Value of auctioning game:
Probability Gross Revenue Expected Revenue
25% $5 million $1.25 million
35% $12 million $4.20 million
40% $16 million $6.40 million
100% $11.85 million
Value of keeping game:
Probability Gross Revenue Expected Revenue
100% -$7 million -$7.00 million
30% $49.1 million $14.73 million
25% $12 million $3.00 million
45% $1 million $0.45 million
100% $11.18 million
b) The optimal solution will be to auction the game and make $11.85 million, which is higher than $11.18 million made from keeping the game and doing the marketing and publishing.
Stockton Company Adjusted Trial Balance December 31 Cash 6,175 Accounts Receivable 2,278 Prepaid Expenses 694 Equipment 14,639 Accumulated Depreciation 2,479 Accounts Payable 1,546 Notes Payable 4,744 Common Stock 1,000 Retained Earnings 12,765 Dividends 969 Fees Earned 6,312 Wages Expense 2,622 Rent Expense 708 Utilities Expense 449 Depreciation Expense 262 Miscellaneous Expense 50 Totals 28,846 28,846 Determine the total assets.
Answer:
$26,265
Explanation:
Assets are economic resources controlled by the entity from which future economic benefits are expected to flow into the entity.
Total Assets Calculation
Cash $6,175
Accounts Receivable $2,278
Prepaid Expenses $694
Equipment $14,639
Accumulated Depreciation ($2,479)
Total $26,265
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875.
a. What is Logan's recognized gain?
b. Assume instead that Johnathan's land is worth $90,000 and he gives Logan $10,000 cash. Now what is Logan's recognized gain?
Answer:
A. $19,100 Recognized Gain or Fairmarket Value of ($23,875).
B.$19,100 Recognized Gain or Fairmarket Value of ($10,000).
Explanation:
a. Calculation to determine Logan's recognized gain
Based on the given information in a situation where Jonatha land is worth the amount of $90,725, which means Logan's RECOGNIZED GAIN will be $19,100, the lower of the REALIZED GAIN calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received of the amount of ($23,875).
b. Based on the information given assuming Johnathan and is been worth the Amount of $90,000 which therefore means that Logan's RECOGNIZED GAIN will be the amount of $19,100, the lower of the realized gain calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received OLog the amount of ($10,000).
Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the number of erroneous shipments has a direct effect on operating profit. The company estimates that every shipment error leads to a reduction of revenue by $3,000 and increased costs of about $2,000.
Sales $230,000
Cost of goods sold 150,000
Depreciation expense 30,000
Other expenses 20,000
Answer:
6
Explanation:
The computation of the shipping errors in the case of break even is given below;
But before that the net operating income is
Sales $230,000
Less: Cost of goods sold 150,000
Less: Depreciation expense 30,000
Less: Other expenses 20,000
Net operating income $30,000
Now the shipping errors is
= $30,000 ÷ ($3,000 + $2,000)
= 6
The following is information concerning a product manufactured by Ames Brothers. Sales price per unit $ 68 Variable cost per unit 43 Total fixed manufacturing and operating costs (per month) 430,000 a. Determine the unit contribution margin. b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.) c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.)
Answer:
Ames Brothers
a. Unit contribution margin = $25
b. Break-even units
= 17,200 units
c. Break-even units to earn a target profit
= 26,560 units
Explanation:
a) Data and Calculations:
Sales price per unit $ 68
Variable cost per unit 43
Contribution per unit $25
Total fixed manufacturing and operating costs (per month) 430,000
Target operating income = $234,000 per month
a. Unit contribution margin = $25
b. Break-even units = Fixed cost/Contribution margin per unit
= $430,000/$25
= 17,200 units
c. Break-even units to earn an operating income = (Fixed cost + Target Profit)/Contribution margin per unit
= ($430,000 + $234,000)/$25
= $664,000/$25
= 26,560 units
Swifty Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 69,000 with terms 2/10 n/30. On July 9, 2020, Swifty received full payment for the July 1 sale. Prepare the required journal entries for Swifty Co.
Answer:
July 1, 2020
Debit : Accounts Receivable $69,000
Credit : Sales $69,000
July 9, 2020
Debit : Cash $62,100
Debit : Discount allowed $1,380
Credit : Accounts Receivable $69,000
Explanation:
Note : Remove the discount from final payment.
The required journal entries for Swifty Co have been prepared above.
Parties to an administrative hearing may subpoena witnesses if they choose not to testify willingly.
True
False
Answer:
Parties to an administrative hearing may subpoena witnesses if they choose not to testify willingly.
True.
Which of the following is NOT one of the four factors of production?
1. Entrepreneurship
2. Natural resources
3. Human Resources
4. Production Resources
Aardvark Enterprises has agreed to be acquired by Lawson Products in exchange for $16,000 worth of Lawson Products stock. Lawson has 1,100 shares of stock outstanding at a price of $15 a share. Aardvark has 1,700 shares outstanding with a market value of $21 a share. The incremental value of the acquisition is $3,800. What is the value of Lawson Products after the merger? $51,520 $41,440 $56,000 $49,280 $44,800
Answer: $56000
Explanation:
The value of Lawson Products after the merger will be calculated thus:
Number of shares = 1100
Price of share = $15
Value of Lawson share = $16500
Number of shares = 1700
Price of share = $21
Value of Aardvark share = $35700
Market value of both firms will be:
= $16500 + $35700
= $52200
We then less incremental earnings from the market value and this will be:
= $52200 + $3800
= $56000
Therefore, the value of Lawson Products after the merger is $56000
Starling Co. is considering disposing of a machine with a book value of $24,600 and estimated remaining life of five years. The old machine can be sold for $5,700. A new high-speed machine can be purchased at a cost of 65,300. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,300 to $19,600 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)
Answer:
The answer is "decrease of $41,100".
Explanation:
5-year cost-saving =[tex](23300-19600)\times 5 = \$18,500[/tex]
old machine Sale value = [tex]\$5,700[/tex]
Differential effect on income = cost savings for 5 years +Sale value of old machine - purchase cost of the new machine
[tex]= 18500+ 5700 - 65300\\\\= - 41,100[/tex]
On January 1, Boston Enterprises issues bonds that have a $2,100,000 par value, mature in 20 years, and pay 7% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months
Answer:
$73,500
Explanation:
Calculation to determine How much interest will Boston pay (in cash) to the bondholders every six months
Semiannual cash interest
payment =$2,100,000 × 7% × 1/2
Semiannual cash interest
payment = $73,500
Therefore How much interest will Boston pay (in cash) to the bondholders every six months is $73,500
Your firm has a contract to build one custom-designed machine that costs $100,000,000. This machine will operate at a paper recycling plant. It will take 1,000,000 pieces of paper per day, shred them into tiny fragments, grind them into paper dust, and create pulp used to make recycled paper envelopes. You need a gear motor to run at 10 horsepower with an output speed of 10 RPM. Your other option is buy a 10 horsepower, 1750 RPM motor, and design your own transmission system to reduce the speed to 10 RPM. Your firm has 10 engineers, and 2 of them would work full-time for six months to get the transmission system designed and built. The purchased gear motor would cost $10,000 and the purchase motor would cost $3,000. The transmission parts would cost another $3,000, saving you $4,000. Time is of the essence. You have only 6 months to design and build your machine.
Which makes more sense to you, buy the gear motor, or buy an AC motor and design and build your own gear transmission system?
Answer:
Buy the gear motor
Explanation:
Given that form the question Time is very important factor to be considered hence it will make more sense to buy the gear motor rather than buying the an AC motor because you cannot rely on the two engineers working fulltime for 6 months because of the factor of uncertainty which might lead to delay in shipment . also the difference in cost is not much compared to the value of the contract ( $1 billion )
Cost of Gear motor = $10,000
cost of AC motor = $3000 + $3000 = $6000
1a. Suppose that, if their income rises by $100, all households in Normalia raise their spending by $80.
The MPC in Normalia is:____.
MPS in Normalia is:____.
b. Suppose that the MPC in South Pangea is 0.6.
If a South Pangean household earns an extra $100, by how much will they increase their spending?
2. Suppose that the MPC in North Laurasia is .5.
a. What is the spending multiplier for the North Laurasian economy?
b. If the government spends an extra $1000, by how much with the economy grow?
Answer:
0.2
0.8
40
2
2000
Explanation:
Marginal propensity to consume is the proportion of disposable income that is spent on consumption
Marginal propensity to consume = amount consumed / disposable income
Marginal propensity to save is the proportion of disposable income that is saved
Marginal propensity to save = amount saved / disposable income
MPC + MPS = 1
Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $53,200 with an adjusted basis of $31,920 for $35,112. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $15,960 for $10,374. What is the amount and character of Lena's gain or loss?
Answer:
Ordinary gain $3,192; Loss $5,586
Explanation:
Calculation to determine the amount and character of Lena's gain or loss
Based on the information given she has an ORDINARY GAIN § 1245 DEPRECIATION RECAPTURE of the amount of $3,192 calculated as ($35,112 − $31,920) from the sale of the first equipment as well as § 1231 LOSS of the amount of $5,586 ($10,374 − $15,960) from the sale of the second equipment.
Therefore the amount and character of Lena's gain or loss will be Ordinary gain of $3,192 and Loss of $5,586.
Generic Company sponsors an unfunded postretirement plan providing healthcare benefits. The following information relates to the current year's activity of Generic's postretirement benefit plan: Postretirement benefit expense $150 million Service cost $120 million Amortization of net gain–AOCI $10 million Prior service cost–AOCI none Retiree benefits paid (end of year) $30 million The interest cost for the year is: Group of answer choices $40 million $20 million $30 million $50 million
Answer: $40 million
Explanation:
Based on the information given in the question, the interest cost for the year will be calculated as follows:
Interest cost = Postretirement benefit expense - Service cost + Amortization of net gain–AOCI
Interest cost = $150 million - $120 million + $10 million
Interest cost = $40 million
Say one morning you are considering whether to take UBER or riding the train to work. Both mediums would cost you about $4, but you have already paid in advance for the train (since you pay a flat fee at the beginning of the month). If the UBER would take slightly less time than the train ride, and you are mostly concerned with the time it takes you to get to work, you should:________
a) take the train since you already paid for it
b) take the UBER
c) be indifferent between either modes of transportation
d) find another way to get to work
Answer:
B
Explanation:
The flat fee paid for the train represents sunk cost. sunk cost is cost that is incurred and cannot be recovered. it should not be considered when making future decisions
You value getting to work early, the Uber is faster, so you should take the uber
Since you are mostly concerned with the time to get to work and less with the cost, you should still a). take the train since you already paid for it.
After all, the time-saving of the UBER ride is slightly less than the train ride, and you have already paid for the train ride.
Based on the tone of the underlying message, the time difference between the train ride and the UBER is not significant for you to lose $4.
Thus, you should only consider the UBER if the time difference is significant and your business at the office may be in jeopardy.
Learn more: https://brainly.com/question/18622205
what's the meaning of GDP?
what's the meaning of GDP?
It means Gross domestic product.
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
Gross domestic product tracks the health of a country's economy. It represents the value of all goods and services produced over a specific time period within a country's borders. ... Investors can use GDP to make investments decisions—a bad economy means lower earnings and lower stock prices.
Sheffield Corp. had accounts receivable of $250,000 on January 1, 2019. The only transactions that affected accounts receivable during 2019 were net credit sales of $5,225,000, cash collections of $5,155,000, and accounts written off of $20,000.
Answer:
300000is the answer make me branlist
The standards for product V28 call for 8.3 pounds of a raw material that costs $19.00 per pound. Last month, 2,200 pounds of the raw material were purchased for $41,360. The actual output of the month was 240 units of product V28. A total of 2,100 pounds of the raw material were used to produce this output.
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
Answer:
Results are below.
Explanation:
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (19 - 18.8)*2,200
Direct material price variance= $440 favorable
Actual price= 41,360 / 2,200= $18.8
Now, we can determine the direct material quantity variance:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8.3*240 - 2,100)*19
Direct material quantity variance= $2,052 unfavorable
Bramble Corp. recorded operating data for its shoe division for the year. Sales $2000000 Contribution margin 440000 Controllable fixed costs 180000 Average total operating assets 880000 How much is controllable margin for the year? 22% 50% $260000 $440000
Answer: 260000
Explanation:
The controllable margin for the year will be calculated thus:
Contribution margin = 440000
Less: Controllable Fixed Costs = 180000
Controllable margin will now be:
= 440,000 - 180,000
= 260,000
Therefore, the controllable margin will be 260000
Stitch Fix is an online personal styling service that was founded in 2011. This company combines computer algorithms with human stylists to deliver a personalized online shopping experience to customers through a subscription service. Users fill out a survey that outlines their style preferences and price range, then stylists hand-select clothing and ship it to the customers. Which of the following statements most likely does not represent an opportunity for Stitch Fix?
A. increasing life expectancy by 5 years.
B. increase in the company's efficiency due to improvements in the value chain.
C. global economic growth will reach 10% next year.
D. a growing population of environmentally conscious consumers.
Answer:
A
Explanation:
there is no correlation between the clothes been made for customers and an increase in life expectancy
The company's efficiency is increased as a result of tailoring customers clothes to be exactly what they want.
Also, Stitch Fix contributes to GDP as a result they can contribute to global economic growth
On January 1, Year 1, Eureka Company issued $290,000 of 4-year, 5% bonds at face value. The annual cash payment for interest is due on January 1 of each year beginning January 1, Year 2. Based on this information, what is the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1
Answer:
$304,500
Explanation:
Interest payable on December 31, year 1 = $290,000 * 5%
Interest payable on December 31, year 1 = $14,500
Total amount of liabilities to be reported on the Balance Sheet, year 1:
= $290,000 + $14,500
= $304,500
So, the total amount of liabilities related to these bonds that will be reported on the balance sheet at December 31, Year 1 is $304,500.
Assume that a profit-maximizing firm which competes in a purely competitive product industry has only two factor inputs, labor and capital, and that resource prices remain constant. This firm finds that the marginal revenue product of labor (MRP) when divided by the price for labor (MRC) is less than one. The firm also finds that the marginal revenue product for capital (MRP) when divided by the price (MRC) is greater than one. If this firm wishes to produce the same amount of output with these two resources, but minimize the cost of output, this firm must employ:________
a. less labor and more capital
b. more capital
c. more labor and capital
d. less labor
e. more labor and less capital
Answer: a. less labor and more capital
Explanation:
When the Marginal Revenue Product of Labor (MRP) is divided by the price for labor (MRC), the result is less than 1. This means that for every dollar spent on labor, labor produces less than a dollar. The labor is therefore not efficient.
This is the reverse for capital where the marginal revenue product for capital (MRP) when divided by the price (MRC) is greater than one which means that for every dollar investment in capital, more than a dollar is made.
As capital is more efficient, it would make sense to invest more in capital whilst reducing the investment in labor as this would lead to more gain for the company.
Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 90900 Work in process, ending 7800 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?
Answer:
Equivalent units of production= 98,700
Explanation:
Giving the following information:
Physical Units Work in process, beginning 0
Completed and transferred out 90,900
Work in process, ending 7,800
Materials are added at the beginning of the process.
To calculate the equivalent units, we need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 0 + 90,900 + 7,800*1
Equivalent units of production= 98,700
Because the materials are added at the beginning of the process, the percentage of completion is 100%.
A company buys a machine for $69,000 that has an expected life of 7 years and no salvage value. The company uses straight-line depreciation. The company anticipates a yearly net income of $3,300 after taxes of 38%, with the cash flows to be received evenly throughout each year. What is the accounting rate of return
Answer:
9.57%
Explanation:
Accounting rate of return = Annual after tax net income/Average investment
Accounting rate of return = $3,300 / ($69,000/2)
Accounting rate of return = $3,300 / $34,500
Accounting rate of return = 0.095652174
Accounting rate of return = 9.57%
g If nominal GDP is $4,000 billion and the amount of money demanded for transactions purposes is $800 billion, it can generally be concluded that Multiple Choice the asset demand for money is $3,200 billion. the total demand for money is $4,800 billion. on average, each dollar will be spent five times a year. the supply of money needs to be increased to meet the demand.
Answer:
on average, each dollar will be spent five times a year.
Explanation:
Based on the information given it can generally be concluded that ON AVERAGE, EACH DOLLAR WILL BE SPENT FIVE TIMES A YEAR reason been that nominal GDP of the amount of $4,000 billion Divided by $800 billion which is the amount of money that was demanded for transactions purposes will give us 5 indicating that on average, each dollar will be spent five times a year.
Calculated as:
nominal GDP /Money demanded
=$4,000 billion/$800 billion
=5
Therefore it can generally be concluded that on average, each dollar will be spent five times a year.
Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January
Answer:
the actual direct deposit payroll is $12,843
Explanation:
The computation of the actual direct deposit payroll is shown below;
= Total salary - withholdings
= (15 × 40 × $30) - Federal income tax - state income tax - FICA tax
= $18,000 - ($18,000 × 0.15) - ($18,000 × 0.06) - ($18,000 × 7.65%)
= $12,843
Hence, the actual direct deposit payroll is $12,843
Basically we applied the above formula