Answer:
$2,133,136.53
Explanation:
Calculation for value of the levered firm
First step is to calculate the VU
VU= [$489,602 × (1 - .35)] / .167
VU= $1,905,636.53
Now let calculate the value of the levered firm
VL= $1,905,636.53 + .35($650,000)
VL= $2,133,136.53
Therefore the value of the levered firm is $2,133,136.53
Alexa and David are managers of different sales teams. Together, they decide to have a competition between teams to see who can bring in the most new clients this month. To increase the sense of competition, they create spirit days where they wear team colors (Alexa's team: blue, David's black), strategize ways to beat the other group, and keep a running total of who is winning on a white board. Alexa and David are employing ________ to increase productivity.
Incomplete question. The options read;
Social identity theoryParasocial interaction theoryLeader-member exchange theoryVigilant interaction theoryExpectancy theoryAnswer:
Vigilant interaction theory
Explanation:
Remember, we are told that Alexa and David kept a running total of who is winning on a whiteboard for the entire team to see while also strategizing ways to beat the opposing team.
According to the vigilant interaction theory, the productivity of a team is usually dependent upon the group's attentiveness during their group interaction.
Hence, we can thus conclude that Alexa and David are employing vigilant interaction theory to increase productivity.
The manager of the main laboratory facility at Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. Number of Lab Total Laboratory Tests Performed Overhead CostsMonth January 2,700 $22,900February 2,500 $23,500March 3,500 $29,800 April 4,000 $32,500May 4,600 $31,100 June 2,250 $22,000 July 2,000 $19,100 1. Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,200 lab tests are performed next month.2. Use the high-low method to determine UrbanFit's operating cost equation.
Answer:
Total cost= 9,871 + 4.615*x
x=number of lab tests
Explanation:
To calculate the variable and fixed costs using the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (31,100 - 19,100) / (4,600 - 2,000)
Variable cost per unit= $4.615
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 31,100 - (4.62*4,600)
Fixed costs= $9,871
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 19,100 - (4.615*2,000)
Fixed costs= $9,870
Total cost= 9,871 + 4.615*x
x=number of lab tests
Answer:
you need to use exel to find the awnser
Explanation:
The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The accounts have normal debit or credit balances.
Accounts Payable $39,100
Accounts Receivable 66,500
Accumulated Depreciation 21,500
Cash 80,300
Common Stock 94,800
Equipment 90,700
Income Tax Expense 10,500
Notes Payable (long-term) 1,500
Office Expenses 6,300
Rent Expense 164,200
Retained Earnings 99,900
Salaries and Wages Expense 128,700
Sales Revenue 325,600
Supplies 35,200
Prepare the closing entry required at September 30, 2018.
Answer:
30-Sep-18
Dr Sales revenue 325,600
Cr Income tax expense 10,500
Cr Office expenses 6,300
Cr Rent expense 164,200
Cr Salaries and wages expense 128,700
Retained earnings $15,900
Explanation:
Preparation of the closing entry required at September 30, 2018
30-Sep-18
Dr Sales revenue 325,600
Cr Income tax expense 10,500
Cr Office expenses 6,300
Cr Rent expense 164,200
Cr Salaries and wages expense 128,700
Retained earnings $15,900
(325,600-10,500-6,300-164,200-128,700)
(To record closing entries)
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)
Answer:
Underapplied overhead= $1,640
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 497,040 / 21,800
Predetermined manufacturing overhead rate= $22.8 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.8*21,500
Allocated MOH= $490,200
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 492,040 - 490,200
Underapplied overhead= $1,640
The term, obsolescence, as it relates to the useful life of an asset, refers to: Multiple Choice The halfway point of an asset’s useful life. A plant asset that is becoming outdated and no longer used. The inability of a company’s plant assets to function as designed. An asset's salvage value becoming less than its replacement cost. Intangible assets that have been fully amortized.
Answer:
A plant asset that is becoming outdated and no longer used.
Explanation:
Obsolescence can be regarded as situation whereby plant Asset is old and not been useful to produce goods/ services. It should be noted that obsolescence, as it relates to the useful life of an asset, refers to A plant asset that is becoming outdated and no longer used
Which of the following is the type of notice provided by recording?
Select one:
a reasonable
b. constructive
c. protective d. actual
Answer:
b
Explanation:
Creative Images Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Creative Images Co.:
Violet Lozano, Capital $880,000
Violet Lozano, Drawing 12,000
Fees Earned 702,400
Wages Expense 480,000
Rent Expense 69,000
Supplies Expense 11,000
Miscellaneous Expense 14,600
Required:
Journalize the two entries required to close the accounts.
Answer:
Journal 1
Debit : Fees Earned $702,400
Credit : Income Statement $702,400
Closing off Revenue against Income Statements
Journal 2
Debit : Income Statement $574,600
Credit : Wages Expense $480,000
Credit : Rent Expense $69,000
Credit : Supplies Expense $11,000
Credit : Miscellaneous Expense $14,600
Closing off Expenses against Income Statements
Explanation:
The Income Statement accounts for Incomes and expenses. Therefore, close off the Income Accounts against the Income Statement as well as Expenses Accounts.
Communicating Negative News EffectivelyAt some point, everyone will have to deliver bad news. The bad feelings associated with this type of message can be alleviated if the receiver knows the reason for the bad news, feels the news is revealed sensitively, thinks the matter is treated seriously, and believes that the decision is fair. When applying these strategies, make sure to follow the writing process and determine whether to use a direct or an indirect pattern in your message. Read the following scenario:Your company started using shipping company two months ago. During your short relationship with a new the company, you notice that it regularly inflates its shipping rates, fails to meet scheduled deliveries, and loses packages. You decide to write a letter to them ending the business relationship. 1. What are your goals when responding to the previous scenario? A. To encourage follow-up correspondence from the receiver. B. To ensure that the company knows you are angry.C. To convey fairness.D. To avoid creating legal liability for your company.E. To make the receiver understand the bad news.2. Staying calm and using polite language while offering a clear explanation of why the negative message was necessary helps the sender to:___.A. Limit legal liability.B. Be firm in their decision.C. Project a professional image.D. Avoid apologizing.
Answer:
Communicating Negative News Effectively
1. The goals when responding to the previous scenario is:
E. To make the receiver understand the bad news.
2. Staying calm and using polite language while offering a clear explanation of why the negative message was necessary helps the sender to:___
D. Avoid apologizing.
Explanation:
To effectively communicate negative news to a recipient, the sender needs to clarify her goal. The goal is the purpose that she wants to achieve through the communication. There are many goals one can pursue when delivering negative news. They include avoiding further clarification, legal liability, or erroneous admission of guilt, maintaining relationships, reducing tensions, and achieving the intended outcome.
The balance sheet of Sheffield Company at December 31, 2019, includes the following.
Notes receivable $51,200
Accounts receivable 195,600
Less: Allowance for doubtful accounts 24,600 $222,200
Transactions in 2020 include the following.
1. Accounts receivable of $151,300 were collected including accounts of $67,500 on which 4% sales discounts were allowed.
2. $5,670 was received in payment of an account which was written off the books as worthless in 2019.
3. Customer accounts of $24,800 were written off during the year.
4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,900. This estimate is based on an analysis of aged accounts receivable.
Required:
Prepare all journal entries necessary to reflect the transaction above.
Answer:
S/n Accounts titles Debit Credit
1. Cash[$151,300 - ($67,500*4%)] $148,600
Sales Discounts ($67,500*4%) $2,700
Accounts Receivable $151,300
2. Accounts Receivable $5,670
Allowance for Doubtful Accounts $5,670
Cash $5,670
Accounts Receivable $5,670
3. Allowance for Doubtful Accounts $24,800
Accounts Receivable $24,800
4. Bad Debt Expense $15,430
Allowance for Doubtful Accounts $15,430
Workings:
$24,600 + $5,670 - $24,800 = $5,470
$20,900 - $5,470 =
An order has been received from an overseas customer for 3700 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.90 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1550 units for regular customers. The minimum acceptable price per unit for the special order is closest to:
Answer: $88.62
Explanation:
First find the costs associated with the order.
= Direct material + Direct labor + Variable manufacturing overhead + Variable selling expense + Contribution margin lost from cutting back production for regular customers
Contriution margin lost from cutting production = Selling price - Direct material - Direct labor - Variable manufacturing overhead - Variable selling expense
= 120.10 - 51.10 - 9.80 - 5.20
= $54
= (3,700 * 51.10) + (3,700 * 9.80) + (3,700 * 2.80) + ((5.20 - 2.90) * 3,700) + ( 54 * 1,550)
= $327,900
Price per unit = 327,900 / 3,700
= $88.62
Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchases are denominated in terms of the Brazilian real (BRL). During 2020, Spindler acquires 400 surfboards at a price of BRL 1,600 per surfboard, for a total of BRL 640,000.00. Spindler will pay for the surfboards when it sells them. Relevant exchange rates are as follows:
Date U.S. Dollar per Brazilian Real (BRL)
1-Sep-20 $0.24
1-Dec-20 0.23
31-Dec-20 0.25
1-Mar-21 0.235
Required:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
Answer:
a. The effect on reported income in 2020 is a foreign exchange gain of $6,400.
b-1. The effecton reported income in 2020 is a foreign exchange loss of -$12,800.
b-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
c-1. The effect on reported income in 2020 is a foreign exchange loss of -$6,400.
c-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.
Explanation:
a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?
Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is higher than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.23) = $6,400
b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?
b-1. Since the U.S. Dollar per Brazilian Real on 1-Dec-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-De-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.23 - $0.25) = -$12,800
b-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?
c-1. Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:
Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.25) = -$6,400
c-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:
Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600
Calculate the consumer surplus in the market for gasoline if the market price is $3.50. Price ($ per gallon) Quantity of gasoline (millions of gallons) 0 40 80 120 160 200 240 280 320 360 400 440 480 520 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Demand Price Consumer surplus
Answer:
The consumer surplus in the market for gasoline is $250 million
Explanation:
Consuemr Surplus
It is the difference between the consumer is willing to pay for the commodity and the actual market price.
The consumer surplus can be calculated as follow
Consumer Surplus = 0.50 x ( Maximum Price - Market Price ) x Quantity
Where
Maximum Price = $6.00
Market Price = $3.50
Quantity = 200 million gallons
Placing values in the formula
Consumer Surplus = 0.50 x ( $6.00 - $3.50 ) x 200
Consumer Surplus = $250 million
Note: The graph in the question was missing, it is attached for your reference.
explain the various functions of an entrepreneur
Larkspur, Inc. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below.Date Numer of Units Unit priceMay 7 46 $10July 28 36 15On June 1, Larkspur, Inc. sold 23 units, and on August 27, 36 more units. Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e.g. 5.125.)
Answer:
Following are the solution to this question:
Explanation:
Calculating the cost of the product sold:
FIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 23 units costing of [tex]\$ 10[/tex] each [tex]= 230[/tex]
13 units costing of [tex]\$ 15[/tex] each [tex]= 195[/tex]
[tex]\$425[/tex]
Total cost of product sold[tex]= \$655[/tex]
LIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$15[/tex] each = 540
Total cost of product sold [tex]= \$ 770[/tex]
Average cost:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$13.051[/tex] each [tex]= \$469.836[/tex]
Total cost of product sold [tex]= \$699.836[/tex]
Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective interest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $185,953. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for $13,016 and crediting cash for $12,000. What is the annual stated interest rate for the debenture bonds
Answer: 12%
Explanation:
Stated interest rate is used in the calculation of the annual interest payment.
Interest payment = Face value of bonds * Stated interest rate
Annual Interest payment = Semi annual interest payment * 2
= 12,000 * 2
= $24,000
24,000 = 200,000 * Stated interest
Stated interest = 24,000 / 200,000
= 0.12
= 12%
If in the textile markets we know that two brands, X and Z, are substitutes. Suppose that the supply of X increases and, at the same time, the supply of the Z decreases. Other things being equal, what would be the expectations for the change in the equilibrium quantities in the two markets
Answer:
Equilibrium quantity of X increases and that of z decreases.
Explanation:
If two goods are substitutes then 1 can be used in the place of the other. As supply of Z falls, we would have market demand to be greater than supply. This brings about a price rise. The price rise will make consumers of Z to want it less and opt for a cheaper good X. Increase in the demand for X causes its supply to rise in the market.
So we would have increase in equilibrium quantity of X and that of Z would fall.
Part U16 is used by Mcvean Corporation to make one of its products. A total of 16,500 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 3.60 Direct labor $ 8.20 Variable manufacturing overhead $ 8.70 Supervisor's salary $ 4.10 Depreciation of special equipment $ 2.50 Allocated general overhead $ 7.70 An outside supplier has offered to make the part and sell it to the company for $27.50 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $28,500 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:
Answer:
Financial disadvantage = 45,750
Explanation:
First of all, we need to sort out the data given in this question.
Data Given:
Per Unit Direct materials = $ 3.60
Direct labor = $ 8.20
Variable manufacturing overhead = $ 8.70
Supervisor's salary = $ 4.10
Depreciation of special equipment = $ 2.50
Allocated general overhead = $ 7.70
Offer by outside supplier = $27.50
So,
Cost of making = [(3.60+8.20+8.70+2.50)*16,500]+28,500 (Opportunity cost)
Cost of Making = (23*16,500)+28,500
Cost of Making = 408,000
Cost of buying = 16,500*27.50
Cost of buying = 453,750
Financial disadvantage = Cost of making - Cost of buying
Financial disadvantage = 453,750 - 408,000
Hence,
Financial disadvantage = 45,750
Kingston Company, which needs 10,000 units of a certain part to be used in its production cycle, can make or buy the part. If Kingston buys the part from Utica Company, Kingston could not use the released facilities in another manufacturing activity within the coming year. 60% of the fixed overhead applied will continue regardless of which decision option is chosen. The following per-unit cost information to make the part by Kingston is available: Direct materials $ 37 Direct labor 148 Variable overhead 74 Fixed overhead applied 93 $ 352 Cost to buy the part from Utica Company $ 85 In deciding whether to make or buy the part, Kingston's total relevant cost to make the part would be:
Answer: $2,962,000
Explanation:
60% of the fixed overhead cannot be avoided which means that only 40% can be avoided. This is the amount to include in the analysis.
To make 10,000 units, the cost would be:
= Direct materials + Direct labor + Variable Overhead + Fixed overhead applied
= (10,000 * 37) + ( 10,000 * 148) + (10,000 * 74) + (10,000 * 93 * 40%)
= 370,000 + 1,480,000 + 740,000 + 372,000
= $2,962,000
The Work-in-Process inventory account of a manufacturing firm shows a balance of $3,250 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $510 and $310 for materials, and charges of $410 and $670 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:
Answer:
$1.25
Explanation:
With regards to the above and given that;
Direct material = $510 310
Direct labor = $410 $670
Manufacturing overhead?
Work in process = Direct material + Direct labor + manufacturing overhead
$3,250 = $820 + $1,080 + MOH
$3,250 - $1,900 = MOH
MOH = $1,350
Overhead rate = MOH/Direct labor hour
= $1,350/1080
= $1.25
why is it difficult to visualize a business entity without external users?
Answer:
Since businesses require an exchange of goods and services, external users must be involved.
Explanation:
A business is an entity set up for the sole purpose of producing goods and services that will be sold to interested buyers for a profit. The producers within an organization cannot consume all that they have produced by themselves. They need others- external users to purchase that which they have made.
In return, they make some profit through the exchange. So, because a business entity does work that requires exchange, there must be external users.
External users must be involved since businesses demand the trade of goods and services. Business decisions are largely influenced by external users.
Who are external users?External users of business transactions are those entities interested in a company's financial results, it includes creditors, suppliers, investors, banks, financial institutions, government along with others.
A business is an entity formed solely for the aim of generating goods and services that will be sold for a profit to interested buyers.
An organization's producers can't consume what they've created on their own. They require external users to purchase what they have created in exchange for profit from the transaction.
Hence, a business entity cannot visualize itself without external users. because a business entity performs work that necessitates interchange, for which external users are required.
To learn more about external users, refer to the link:
https://brainly.com/question/26261281
This year Don and his son purchased real estate for an investment. The price of the property was $630,000, and the title named Don and his son as joint tenants with the right of survivorship. Don provided $358,000 of the purchase price and his son provided the remaining $272,000. Has Don made a taxable gift and, if so, in what amount
Answer:
$28,000
Explanation:
Calculation for Don taxable gift amount
Taxable gift amount=[$358,000 − ($630,000)/2] − $15,000
Taxable gift amount=[$358,000 −$315,000] − $15,000
Taxable gift amount=$43,000-$15,000
Taxable gift amount=$28,000
Therefore Don has made a taxable gift of the amount of $28,000
Solver provides sensitivity analysis information on all of the following except the a. range of values for objective function coefficients which do not change optimal solution. b. impact on optimal objective function value of changes in constrained resources. c. amount by which the right hand side of the constraints can change and still the shadow price is accurate. d. impact on right hand sides of changes in constraint coefficients.
Answer:
The correct answer is OPTION D (impact on right hand sides of changes in constraint coefficients).
Explanation:
Solver is an excel program that can be used to solve systems of equations even solve for multiple equations, using a powerful iteration technique in a bid to get a closer approximation to the solution of a problem.
A sensitivity report is one of the three reports that can be generated using the solver which can solve for the effect of how changes in the constraints no matter how small could still affect the overall solution.
The objective function is a target cell.
The solver doesn't provide information on how the impact on the right-hand sides of changes in constraint coefficients as information showed is that as long as there is a positive less than or equal constraints, increasing the values of the right-hand side values of constraints would not change the optimal solution.
Quantity of Flower A Total Utility Marginal Utility Quantity of Flower B Total Utility Marginal Utility 1 16 16 1 30 30 2 30 14 2 46 16 3 42 12 3 61 15 4 52 10 4 75 14 5 60 8 5 88 13 6 66 6 6 100 12 7 70 4 7 111 11 Your mother needs help deciding how many of two kinds of flowers to purchase for a bouquet she is making. She wants to purchase two kinds of flowers: Flower A and Flower B. If the price of Flower A is $2 and the price of Flower B is $3, how many of Flower A should your mother purchase for her bouquet to maximize her utility if she can spend at most $17 on flowers
Answer:
she should buy 4 As and 3 Bs
Explanation:
utility per dollar
flower A flower B total money spent
1 flower 8 10 $5
2 flowers 7.5 7.67 $10
3 flowers 7 6.78 $15
4 flowers 6.5 $17
total 29 24.45 $17
Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's: A. desire to increase prices throughout the economy. B. inability to conduct open-market operations. C. need to generate revenue to pay for spending. D. responsibility to increase nominal interest rates by increasing expected inflation.
Answer:
C. need to generate revenue to pay for spending.
Explanation:
Inflation can be defined as the persistent rise in the price of goods and services in an economy.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation
Hence, hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's need to generate (tax) revenue to pay for spending.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 47,000 Units sold 42,000 Selling price per unit $ 84 Selling and administrative expenses: Variable per unit $ 4 Fixed (per month) $ 560,000 Manufacturing costs: Direct materials cost per unit $ 17 Direct labor cost per unit $ 7 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 893,000
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Calculate the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Calculate the unit product cost.
b. Prepare a contribution format income statement for May.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary product cost= 17 + 7 + 3 + (893,000 / 47,000)
Unitary product cost= 27 + 19
Unitary product cost= $46
Now the income statement:
Sales= 42,000*84= 3,528,000
COGS= (42,000*46)= (1,932,000)
Gross profit= 1,596,000
Total Selling and administrative expenses= (42,000*4) + 560,000= (728,000)
Net operating profit= 868,000
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Unitary variable product cost= 17 + 7 + 3
Unitary variable product cost= $27
Now, the income statement:
Sales= 3,528,000
Total variable cost= 42,000*(27 + 4)= (1,302,000)
Total contribution margin= 2,226,000
Total fixed manufacturing cost= (893,000)
Total Selling and administrative expenses= (560,000)
Net operating profit= 773,000
Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25,0000 which a larger order than the company has ever handled before. They have called a business strategy meeting to ensure success of this project.; the Operations Manager has presented two different manufacturing options for consideration by the board:
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Which option should the board select and why?
Answer: Option A
Explanation:
From the question, the demand given is 250,000
For Option A,
Fixed cost = $25000
Variable cost = $0.1 per candle
Total cost = Fixed cost + Variable cost
Total cost = $25000 + ($0.1 × 250,000)
= $25,000 + $25,000
= $50,000
For Option B,
Fixed cost = $10000,
Variable cost = $0.5 per candle
Total cost = Fixed cost + Variable cost
Total cost = $10000 + ($0.5 × 250,000)
= $10,000 + $125,000
= $135,000
Therefore, the board should select option A as the total cost is cheaper than option B.
what is capital? in your own words. economics.
Answer:
In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. ... In classical economics, capital is one of the four factors of production. The others are land, labor and organization
Jacques, who is age 45, has just resigned from his current job. He worked for Ace, which sponsors a cash balance plan and a standard 401(k) plan. Each of the plans uses the longest permitted vesting schedule and both plans are top heavy. He has a balance of $40,000 in the cash balance plan, has deferred $20,000 into the 401(k) plan and has employer matching contributions of $10,000. If he has been employed for three years, but only participating in the plans for the last two years, how much does he keep if he leaves today
Answer: hahaha
Explanation:
CDF Inc. is contemplating the acquisition of Pogo Company. The values of the two companies as separate entities are $20 million and $10 million, respectively. CDF estimates that by combining the two companies, it will reduce marketing and administrative costs by $500,000 per year in perpetuity. CDF can either pay $14 million cash for Pogo or offer Pogo a 55% holding in CDF. If the opportunity cost of capital is 10%,a. What is the gain from merger? b. What is the cost of the cash offer? c. What is the cost of the sock alternative? d. What is the NPV of the acquisition under the cash offer? e. What is the NPV under the stock offer?
Answer: See explanation
Explanation:
a. What is the gain from merger?
This will be calculated by dividing the cost savings by the opportunity cost of capital. This will be:
= $500,000 / 10%
= $500,000 / 0.1
= $5,000,000
= $5 million
b. What is the cost of the cash offer?
This will be the difference between the cash cash paid and the value of the firm acquired which will be:
= $14 million - $10 million
= $4 million
c. What is the cost of the sock alternative?
First, we calculate the value of the merged company which will be:
= $20 million + $10 million + $5 million
= $35 million
Then, cost of stock alternative will be:
= (35 million x 55%) – $10 million
= ($35 million × 0.55) - $10 million
= $19.25 million - $10 million
= $9.25 million
d. What is the NPV of the acquisition under the cash offer?
This will be:
= $5 million - $4 million
= $1 million
e. What is the NPV under the stock offer?
This will be:
= $5 million - $9.25 million
= -$4.25 million
Clarisa, an engineering manager, wants to purchase a resort accommodation to rent to skiers. She is considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in the area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If Clarisa spends an average of $500 per month for utilities and the investment increases at a rate of 2% per month, how long would it be before she could sell the property for $100,000 more than she has in
Answer:
18.5 months approximately
Explanation:
initial investment x (1 + appreciation rate)ⁿ = initial investment + $100,000 + ($500 x n)
$250,000 x (1 + 2%)ⁿ = $350,000 + $500n
1.02ⁿ = $350,000/$250,000 + $500n/$250,000
1.02ⁿ = 1.4 + 0.002n
I tried to solve it by trial and error:
50 months:
2.69 ≠ 1.5
40 months:
2.21 ≠ 1.48
30 months:
1.81 ≠ 1.46
20 months:
1.49 ≈ 1.44 ⇒ getting closer
18 months:
1.43 ≈ 1.44 ⇒ almost
18.5 months:
1.44 = 1.44 ✓