The question is incomplete. The complete question is :
A manufacturer believes that the cost function : [tex]$C(x) =\frac{5}{2}x^2+120 x+560$[/tex] approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the marginal cost goes beyond $210. What is the most units the manufacturer can produce and still make a profit? What is the total cost at this level of production?
Solution :
Given the cost function is :
[tex]$C(x) =\frac{5}{2}x^2+120 x+560$[/tex]
Now, Marginal cost = [tex]$\frac{d}{dx}C(x)$[/tex]
So, if the marginal cost = $ 210, then the manufacturer also makes a profit and if it goes beyond $ 210 than the manufacturer cannot make a profit.
Therefore, we have to equate : [tex]$\frac{d}{dx}C(x)= \$ 210$[/tex]
[tex]$\frac{d}{dx}C(x)= \frac{5}{2}(2x)+120 = 210$[/tex]
[tex]$5x + 120 = 210$[/tex]
[tex]$5x=210-120$[/tex]
[tex]$5x=90$[/tex]
[tex]$x=45$[/tex]
So when x = 45, then C(x) = $ 8042.5
Therefore, the manufacturer [tex]$\text{can make up}$[/tex] to 45 units and [tex]$\text{still makes a profit.}$[/tex] This leads to a total cost of $ 8042.5
Paul, a calendar year single taxpayer, has the following information for 2020: AGI $175,000 State income taxes 13,500 State sales tax 3,000 Real estate taxes 18,900 Gambling losses (gambling gains were $12,000) 6,800 Paul's allowable itemized deductions for 2020 are: a.$16,800. b.$39,200. c.$10,000. d.$42,200.
Answer:
b.$39,200
Explanation:
Calculation to determine Paul's allowable itemized deductions for 2020
Using this formula
2020 itemized deductions=State income taxes+Real estate taxes+Gambling losses
Let plug in the formula
2020 itemized deductions=$13,500+$18,900+$6,800
2020 itemized deductions=$39,200
Therefore Paul's allowable itemized deductions for 2020 are $39,200
Peter, Paul, and Mary go to an all-you-can-eat buffet. The normal entrance fee is $20, but Peter gets in free because it is his birthday and they have a special. Paul uses a coupon and only pays $10. Mary is the only one to pay the full $20. They are all equally hungry and have an equally large appetite. If they are all rational decision makers, the person who should eat the most is:
Answer:
mary
Explanation:
A rational consumer would consume up to the point that marginal benefit equal marginal cost
Mary paid $20. this means that she places a value of $20 on the meal.
Paul paid $10. this means that he places a value of $10 on the meal
The value Mary places is 20, so she places a higher value and she would consume the most
Peter enters free and thus there is no marginal cost attached to this decision. He should consume the least
Lake Incorporated purchased all of the outstanding stock of Huron Company paying $961,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were: Book Value Fair Value Current assets (net) $ 130,300 $ 124,700 Property, plant, equip. (net) 614,000 769,000 Liabilities 151,800 175,000 Lake would record goodwill of:
Answer:
$242,300
Explanation:
Goodwill = Purchase Price - Net Assets taken over at Fair Value
where,
Purchase Price = $961,000
Net Assets taken over at Fair Value = $ 124,700 + $769,000 - $175,000 = $718,700
therefore,
Goodwill = $961,000 - $718,700 = $242,300
conclusion :
Lake would record goodwill of $242,300
What are the two types of economic inequality
Explanation:
Two types of economic inequality:
Wealth and income inequality
Bernie is a former executive who is retired. This year Bernie received $190,000 in pension payments and $15,200 of Social Security payments. What amount must Bernie include in his gross income
Answer:
$202,920
Explanation:
Calculation to determine determine What amount must Bernie include in his gross income
Using this formula
Gross income=Pension payments Received+85% of social security benefits
Let plug in the formula
Gross income=$190,000 + ($15,200 * 85%)
Gross income=$190,000+$12,920
Gross income=$202,920
Therefore The amount that Bernie must include in his gross income is $202,920
Quantum Inc. has warrants outstanding that allow the holder to purchase 1.5 shares of stock per warrant at $30 per share (exercise price). Thus, each individual share can be purchased at $30 with the warrant. The common stock is currently selling for $36. The warrant is selling for $12.
Required:
a. What is the intrinsic (minimum) value of this warrant?
b. What is the speculative premium on this warrant?
c. What should happen to the speculative premium as the expiration date approaches?
Answer:
A. $9.00
B. $3.00
C. Decrease
Explanation:
a. Calculation to determine the intrinsic (minimum) value of this warrant
Using this formula
I = (M – E) × N
Where,
I represent Intrinsic value of a warrant
M represent Market value of common stock
E represent Exercise price of a warrant
N represent Number of shares each warrant entitles theholder to purchase
Let plug in the formula
I=($36 – $30) *1.5
I=$6*1.5
I = $9.00
Therefore the intrinsic (minimum) value of this warrant is $9.00
b. Calculation to determine the speculative premium on this warrant
Using this formula
S = W – I
Where,
S representSpeculative premium
W represent Warrant price
I represent Intrinsic value.
Let plug in the formula
S=$12-[($36 – $30) *1.5]
S=$12 – $9
S = $3.00
Therefore the speculative premium on this warrant is $3.00
c.What should happen to the SPECULATIVE PREMIUM as the expiration date approaches is for it to DECREASE and thereby approach $0.
In a responsibility accounting system: Question 6 options: A. Each accounting report contains only (or clearly segregates) those items that are controllable by the responsible manager. B. Each accounting report contains all items allocated to a responsibility center. C. Organized and clear lines of authority and responsibility are only incidental. D. All managers at a given level have equal authority and responsibility. E. All of the above.
Answer:
A. Each accounting report contains only (or clearly segregates) those items that are controllable by the responsible manager.
Explanation:
A responsibility center is a business entity given a specific goals and objectives, procedures and policies, as well as dedicated personnel for generating financial reports in a company.
. An analyst has determined that the intrinsic value of Coca Cola stock is $80 per share using the capitalized earnings model. If the typical P/E ratio in the computer industry is 22, then it would be reasonable to assume the expected EPS of Coca Cola in the coming year is
Answer:
$3.64
Explanation:
We know that :
Price / Earning ratio (P/E ratio) = Price per Share ÷ Earnings per Share
thus :
Earnings per Share = Price per Share ÷ Price / Earning ratio
= $80 ÷ 22
= $3.636 or $3.64
therefore,
the expected EPS of Coca Cola in the coming year is $3.64
spectrum corp desires a 25% target gross profit after covering all product costs: considering the total product costs assigned to the products c and d, what would spectrum have to charge the customer to achieve that gross profit
Answer:
Note: "The full question is attached as picture below"
Required selling price for product = Total product cost / Product cost as a percentage of selling price
Note: When the gross profit rate is 25%, this means that Product cost as a percentage of selling price is 75%
Total cost assigned for product C = $1,396
Total cost assigned for product D = $3,158
What would Oak have to charge the customer to achieve that gross profit?
Charge to the customer for Product C:
= $1,396 / 0.75
= $1861.333333333333
= $1,861.33
Charge to the customer for Product D:
= $3,158 / 0.75
= $4210.666666666667
= $4,210.67
Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $84, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $145 million, a coupon rate of 5 percent, and sells for 95 percent of par. The second issue has a face value of $130 million, a coupon rate of 4 percent, and sells for 107 percent of par. The first issue matures in 24 years, the second in 9 years. Both bonds make semiannual coupon payments.
Required:
a. What are the company's capital structure weights on a book value basis?
b. What are the company's capital structure weights on a market value basis?
Answer:
Dinklage Corp.
a. The company's capital structure by book value:
Weights:
Equity = 9.84%
Debt = 90.16%
b. The company's capital structure by market value:
Weights:
Equity = 64.55%
Debt = 35.45%
Explanation:
a) Data and Calculations:
Outstanding common stock = 6 million shares
Current share price = $84
Book value per share = $5
Total equity book value = $30 million (6,000,000 * $5)
Total equity market value = $504 million (6,000,000 * $84)
First bond's face value = $145 million
Coupon rate = 5%
Selling price = 95% of par
Market value of first bond = $145 * 95% = $137.75 million
Second bond's face value = $130 million
Coupon rate = 4%
Market value = $130 * 107% = $139.1 million
Total market value of bonds = $276.85 million ($137.75 + $139.1)
Book value of bonds = $275 million ($145 + $130)
a. The company's capital structure by book value:
Equity = $30 million
Debt = $275 million
Total firm's value = $305 million
Weights:
Equity = $30/$305 * 100 = 9.84%
Debt = $275/$305 * 100 = 90.16%
b. The company's capital structure by market value:
Equity = $504 million
Debt = $276.85 million
Total firm's value = $780.85 million
Weights:
Equity = $504/$780.85 * 100 = 64.55%
Debt = $276.85/$780.85 * 100 = 35.45%
Using the high-low method, Company X has determined the variable portion of its cost formula for electricity to be $2 per unit. For the month of July Company X estimates that total electricity cost will amount to $66,000 based on producing 30,000 units. The amount of fixed electricity cost estimated for July is:
Answer:
Fixed cost= $6,000
Explanation:
Giving the following information:
July:
Total cost= $66,000
Number of units= 30,000
Varaible cost per unit= $2
First, we need to calculate the total variable cost:
Total variable cost= 2*30,000
Total variable cost= $60,000
Now, the fixed cost:
Fixed cost= 66,000 - 60,000
Fixed cost= $6,000
Oriole Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $280000 and credit sales are $2810000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Oriole Company make if the Allowance for Doubtful Accounts has a credit balance of $2800 before adjustment
Answer:
Dr. Bad debt expense. $11,200
---------To Allowance for doubtful accounts $11,200
Explanation:
Given that:
Accounts receivable balance = $280,000
Total credit sales = $2,810,000
5% of accounts receivables will be bad debt = $280,00 × 5% = $14,000
Credit balance allowance for doubtful account = $2,800 and it must increase to $14,000 I.e $14,000 - $2,800 = $11,200
Adjusting journal entry
Dr Bad debt expense $11,200
-------- Cr Allowance for doubtful accounts $11,200
Apt Adapt Inc. is formed to coordinate the design and delivery of projects and products to help communities cope with the effects of climate change. The stated purpose is to have a material positive impact on society and the environment, and to make a profit. Apt Adapt is
Answer:
A benefit corporation.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries. It is considered to be one of the most complicated and expensive type of organization. Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.
In this scenario, Apt Adapt Inc. is a benefit corporation because it was established to coordinate the design and delivery of projects and products that would help communities cope with the effects of climate change.
Hence, Apt Adapt is considered to be a benefit corporation because it has material positive impact on society and the environment, while making a profit.
In response to dwindling sales of organic meats, Hain Celestial executives decided to promote the sale of organically grown nuts as an alternative source of protein, which is an excellent example of a firm's:
Answer:
Product substitute
Explanation:
Product substitute is defined as one that meets similar needs of the consumer. As demand for one of such goods rises the demand of the other tends to fall as the meet similar needs.
In the given scenario organic meats are seen as being substituted by organically grown nuts as a source of protein.
So when Hain Celestial has dwindling sales of organic meats they were considering organically grown nuts as a different product to give to customers
The price of the stock at the beginning of 2018 was $56.81 and you sold the stock at $68.14 at the end of the year. What is the dividend yield (use your answer from 3a above), capital gain(loss), and total percentage return
Question Completion:
The total dividends paid is $1,743,400 and the outstanding shares are 1,300,000.
Answer:
a. The dividend per share = $1.34
b. The dividend yield = 1.97%
c. The capital gain = $11.33
d. The total percentage return = 22.3%.
Explanation:
a) Data and Calculations:
Dividends paid = $1,743,400
Outstanding shares = 1,300,000
Dividends per share = $1.34 ($1,743,400/1,300,000)
Dividend yield = Dividend per share/Stock price
= $1.34/$68.14 = 1.97%
Capital gain = $11.33 ($68.14 - $56.81)
Total return = $12.67 ($11.33 + $1.34)
Total percentage return = Total return/Beginning Stock Price * 100
= $12.67/$56.81 * 100
= 22.3%
Choice Co. uses a discount rate of 8% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 8 years has thus far yielded a net present value of ($496,541) [a negative number]. This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (Ignore income taxes.) Use the attached (in the exam introduction) present value tables to determine the appropriate discount factor(s). Use it to the .000 decimal. Or, use your calculator or Excel present value function. Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive
Answer:
A. $86,400
B. $919,520
Explanation:
A. Calculation to determine how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive
Using this formula
Additional cash flows from the intangible benefits = Negative net present value to be offset / Present value factor
Let plug in the formula
Additional cash flows from the intangible benefits = $496,541 / 5.747
Additional cash flows from the intangible benefits = $86,400
Therefore how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive is $86,400
b. Calculation to determine how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive
Using this formula
Automated equipment Salvage value = Negative net present value to the offset /Present value factor
Let plug in the formula
Automated equipment Salvage value= $496,541 / 0.540
Automated equipment Salvage value= $919,520
Therefore how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive is $919,520
Silver Corporation incurred costs of $600,000 for managing the wholesale division during the year. The customer details of the company were as follows: X Y Z Sales $600,000 $400,000 $200,000 COGS $40,000 $20,000 $15,000 How much cost will be allocated to customer Y, if a cause-effect relationship cannot be established with any cost driver
Answer: $200,000
Explanation:
The cost will be allocated to customer Y, if a cause-effect relationship cannot be established with any cost driver will be calculated thus:
Total sales = $600,000 + $400,000 + $200,000 = $1,200,000
The percentage of Y on total sales will be:
= $400,000/$1,200,000 × 100
= 1/3 × 100
= 33.33%
Therefore, the cost that's allocated to Y will then be:
= $600,000 × 33.33%
= $600,000 × 0.3333
= $200,000
Therefore, the correct answer is $200,000
If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $431,000 before taxes
If $60,000.00 is the total sales from selling toaster ovens at $16.00 each, then the total units of toaster ovens sold would be 3,750.00 units. If expenses where given, say for example, 40% of the sales, with a profit before tax of $60,000.00, then total sales should be $84,000.00 equivalent to 5,250 units of toaster ovens.
PERSONAL FINANCE 10 POINTS// WILL GIVE BRAINLIEST
What is likely to be TRUE about making financial decisions as people get older?
A.
Financial decisions become bigger and more complex.
B.
Making decisions is easier as there are fewer risks involved.
C.
There are fewer major decisions to make.
D.
Financial situations will be simpler with fewer consequences.
Financial decisions become bigger and more complex.
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 15% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $100,000 to Ski Outfit. By the end of the year, $76,000 of the merchandise has been sold to customers for a total of $105,800. What amount of inventory will Mogul report at year end
Answer:
$24,000
Explanation:
According to the consignment accounting, it States that any inventory sent on consignment by the consignor to the consignee, belongs to the consignor until the inventory is sold by the consignee.
Regarding the above, Mogu company sent inventory costing $100,000 and out of this, only $76,000 has been sold. The remaining inventory still belongs to the consignor and the amount of this inventory is;
$100,000 - $76,000 = $24,000
Therefore, Mogul would report $24,000 worth of inventories at year end.
The subject of the auditing procedure observing is least likely to be: a. procedures. b. inventory taking. c. personnel d. processes. e. physical assets.
Answer:
e. physical assets.
Explanation:
Audit procedures can be regarded as processes or techniques, or methods that is been followed by auditors in obtaining audit evidence that will give them enablement to make a conclusion as regards to set audit objective so they can express their opinion. audit procedures can as well be called audit programs. It should be noted that The subject of the auditing procedure observing is least likely to be physical assets. physical asset can be regarded as item of economic, even exchange value which has a material existence. They are regarded asPhysical assets tangible assets. Example is
properties, equipment,
Joint ventures offer low potential for leveraging a firm's existing competencies because they typically entail a short-term relationship between two or more firms.
A. True
B. False
Answer:
B. False
Explanation:
The main purpose of the joint venture is to help two or more companies so that they are in the position to gain the competitive advantage. So the potential for firm leverage that is existed would be high instead of low due to this reason also
So as per the given situation, the option b is correct
Hence, the option a is not correct
There are different types of business. Joint ventures offer low potential for leveraging a firm's existing competencies is a False statement.
A joint venture is known as when two or more businesses gather their resources and expertise together to achieve a set goal.It is also called a partnership between 2 or more firms where there is significant equity stake by the partners and often resulting in the creation of a new business entity.
Joint ventures uses a good amount of equity investment from each partner and can lead to the establishment of a new separate entity.
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Practice Do It! Review 02 The following information is available for Sunland Company. April 1 April 30 Raw materials inventory $10,000 $13,500 Work in process inventory 5,400 3,710 Materials purchased in April $98,000 Direct labor in April 80,300 Manufacturing overhead in April 156,000 Prepare the cost of goods manufactured schedule for the month of April.
Answer:
Cost of goods manufactured=$332,490
Explanation:
Giving the following information:
April 1 April 30
Raw materials inventory $10,000 $13,500
Work in process inventory 5,400 3,710
Materials purchased in April $98,000
Direct labor in April 80,300
Manufacturing overhead in April 156,000
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 5,400 + (10,000 + 98,000 - 13,500) + 80,300 + 156,000 - 3,710
cost of goods manufactured=$332,490
Scenario: Suppose there are only two firms in an industry, and their products are perfect substitutes for each other. Each firm had a fixed marginal cost of $5 and zero fixed cost of operation. The highest the consumers of this product are willing to pay for it is $10, and there are 200 consumers in this market. Refer to the scenario above. Suppose Firm 1 and Firm 2 have to come up with a pricing strategy simultaneously. In this case, Firm 1 will charge ________, and firm 2 will charge ____
Answer:
In this case, Firm 1 will charge $5, and firm 2 will charge $5
Explanation:
In a competitive market, where two companies have identical products, The companies try to capture the market by lowering the price of the product to attract the consumers in the market.
Firm 1 and Firm 2 are competitors with identical products and they will try to overcome their competitor. As the production of the product has a marginal cost of $5 and no fixed cost.
hence the price should be more than or equal to the marginal cost of the product to avoid losses.
As per pricing strategy simultaneously, the price should be as follow
Firm 1 Price = $5
Firm 2 Price = $5
Terps Corp.'s comparative balance sheet at December 31, 2021 and 2020 reported accumulated depreciation balances of $1,245,000 and $900,000, respectively. Property with a cost of $75,000 and a carrying amount of $57,000 was the only property sold in 2021. Depreciation charged to operations in 2021 was
Answer:
See below
Explanation:
Depreciation charged to operations in 2021 is computed as;
=
A very large company would be most likely to have a(n) ___ at the ahead of its accounting department.
A. Executive vice president
B. Controller
C. Chief financial officer
D. Accounting manager
A very large company would be most likely to have a Chief financial officer as the head of its accounting department.
The Chief Financial Officer (CFO) would most likely be in charge of the accounting division of a very large corporation. A company's Chief Financial Officer (CFO) is in charge of all financial operations, including accounting, budgeting, financial reporting, and forecasting. The day-to-day accounting activities of a corporation are managed by the controller, who holds a mid-level role. The basic duties of the accounting manager include leading a group of accountants and supervising the creation of financial statements and reports. Even though the executive vice president may be in charge of the entire organization, they could not have specific knowledge of accounting and finance.
A Chief Financial Officer (CFO) is a senior executive accountable for directing the financial actions of a firm. Monitoring cash flow, assessing the firm's financial advantages and disadvantages, and creating strategies for financial expansion are all tasks assigned to the CFO. Also, they are in charge of supervising the creation of predictions and current financial reports. In conclusion, the CFO is essential to the efficient management of a company's finances.
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Investment X offers to pay you $5,500 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for five years. a. Calculate the present value for Investments X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the present value for Investments X and Y if the discount rate is 15 percent.
Answer:
Investment X = $39,093.02
Investment Y = $34,635.81
b
Investment X =$26,243.71
Investment y =$26,817.24
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Investment X
Cash flow each year from year 1 to 9 = $5,500
PV when I is 5% = $39,093.02
PV when I is 15% =$26,243.71
Investment Y
Cash flow each year from year 1 to 5 = $8,000
PV when I is 5% = $34,635.81
PV when I is 15$26,243.71% = $26,817.24
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The balance sheet of Subsidiary shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and the fair value of its liabilities is $15,000. Parent paid $95,000 to acquire Subsidiary. Parent should record goodwill on this purchase of:______.
A) $23,600.
B) $20,000.
C) $3,600.
D) $5,000.
Answer:
b. $20,000
Explanation:
Goodwill = Investment in Subsidiary - (Asset With book value - Liability with book value) - (Fair value of Asset - Book value of Asset)
Goodwill = $95,000 - ($86,400 - $15,000) - ($90,000 - $86,400)
Goodwill = $95,000 - $71,400 - $3,600
Goodwill = $20,000
So, parent should record goodwill on this purchase of $20,000
What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a dividend of $1.36 per year? The required rate of return is 12.5 percent.
a. $11.24
b. $9.52
c. $10.88
d. $10.64
e. $11.47
Answer:
$10.88
Explanation:
Calculation to determine What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities
Using this formula
Maximum payment for common stock=Dividend/Required rate of return
Let plug in the formula
Maximum payment for common stock=$1.36/.125 Maximum payment for common stock= $10.88
Therefore What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities is $10.88
Jiffy Co. expects to pay a dividend of $3.00 per share in one year. The current price of Jiffy common stock is $60 per share. What is the cost of internal common equity (retained earnings) if the long-term growth in dividends is projected to be 9 percent indefinitely
Answer:
the cost of the internal common equity is 14%
Explanation:
The computation of the cost of internal common equity is shown below;
Stock Price = Dividend per share ÷ (required rate of return - growth rate)
$60 = $3 ÷ (required rate of return - 0.09)
60 required return - $5.4 = $3
60 required return = $8.4
So, the required return is
= 8.4 ÷ 60
= 14%
Hence, the cost of the internal common equity is 14%