Answer: Contract will be modified
Explanation:
Melinda has already gotten into the contract so going to the courts will not void it as she still has to perform her part of the contract.
The best the court can do is to modify the contract so that she no longer has to pay the exorbitant interest rates of 13% that she is paying. Even if there was to be an investigation, she still wouldn't get the contract voided because she still needs to fulfill her part so it will just be modified.
The contract will be modified.
Given that,
Melinda has a contract to pay 13% interest on a personal loan for 5 years. She decides the rate is unfair and files a complaint in court.Based on the information, the following things should be considered:
Since Melinda received the contract so here it is not a void contract because she have to perform her part.Also, the contract should be modified due to this she is not able to pay 13%Therefore, the contract should be modified.
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Assume that a company sets the transfer price for a product made by division A and sent to division B as full cost 10%. Further assume that division A is treated as a profit center. Discuss the incentives this situation creates for the manager of division A and why it is not in the company's best interest. (30 words maximum)
Answer and Explanation:
The manager of division A has the advantage of always selling at a profit since his department is positioned to always sell at profit to division B. However, selling at a transfer price to another department has the tendency to bring an incoherence of operations and decisions in the organization as a whole. If transfer price is high, it is possible that employees of department B may be demotivated as the high costs may negate operations and therefore look bad on their performance.
BCtronics Corp. issued 12 year bonds 2 years ago with a coupon rate of 9.2%. The bonds make semiannual payments and have a $1,000 par value. If these bonds currently sell for 104% of par value, what is the YTM
Answer:
8.60%
Explanation:
Face value of the bond = $1000
Years = 10 years (12-2). Semiannual number of periods = 20 (10*2)
Semiannual coupon rate = 9.2%/2 = 0.046
Semiannual coupon payment amount = 0.046*1000 = 46
Present value = 1000*104% = $1040
Value of YTM can be derived using Ms excel
Yield to maturity = YTM (No of periods, Payments, Present value, Face value) * 2
Yield to maturity = YTM (20, 46, 1040, 1000) * 2
Yield to maturity = 4.30% * 2
Yield to maturity = 8.60%
Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)
Answer:
$416
Explanation:
Calculation to determine the amount of joint processing cost that is allocated to Product A
First step is to determine the split-off Total
Yards Sales price
at split-off Total
A 800 *$6.50= $5,200
B 1,100* $8.25= $9,075
C 1,500*$8.00=$12,000
Total $26,275
Now let determine the amount of joint processing cost that is allocated to Product A
Product A joint processing cost=($5,200/$26,275) * $2,100
Product A joint processing cost=$416
Therefore Using a physical measurement method, what amount of joint processing cost is allocated to Product A is $416
Alyssa is working on a campaign to re-forest areas in Indonesia and needs to collate progress reports from the fund-raising and communication departments. She has yet to receive the communication report from the communications manager, Elizabeth. She knows that Elizabeth is working on multiple projects and is currently facing a time crunch. Which of the following should Alyssa use to write a persuasive direct request to Elizabeth asking for the progress report?
a. "We will establish a good image of our organization if we can send the reports on time."
b. "We can prevent delaying the third phase of our campaign if we send out the reports on time."
c. "I was wondering if you could send the report to me once you are relatively free from your work."
d. "Please send the progress report for the communication part of the campaign by March 20."
e. "The fund-raising department has sent in their report. Is there a way you can send in yours?"
Answer: b. "We can prevent delaying the third phase of our campaign if we send out the reports on time."
Explanation:
For Alyssa to write a persuasive direct request to Elizabeth asking for the progress report, she can write "We can prevent delaying the third phase of our campaign if we send out the reports on time"
The emphasis here is about being proactive and not delaying the work on ground so that the task will be completed on time. When compared to other options, it'll lead to non-delay of the task and the task will be sent on time rather than sending it when Elizabeth feels like sending it.
Big Joe's owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that originally cost $129,000. The facility itself cost $750,000 to build. As of now, the book value of the land and the facility are $129,000 and $186,500, respectively. Big Joe's received an offer of $610,000 for the land and facility last week. The firm rejected this offer even though it was advised that the offer was reasonable. If Big Joe's were to consider using this land and facility in a new project, what cost, if any, should it include in the project analysis
Answer:
$610,000
Explanation:
Based on the information given if he were to consider using the land and as well as the facility in a new project the COST that he should include in the PROJECT ANALYSIS will be the amount of $610,000 reason been that we were told received an offer of the amount of $610,000 for the land and as well as the facility last week.
Therefore using this land and facility in a new project, the cost that he should include in the project analysis will be $610,000
Smith Corporation has two service departments: Data Processing and Personnel. Data Processing provides more service than does Personnel. Smith Corporation also has two production departments: A and B. Data Processing costs are allocated on the basis of assets used while Personnel costs are allocated based on the number of employees. Department Direct Costs Employees Assets used Data Processing $1,000,000 15 $700,000 Personnel 300,000 8 230,000 A 500,000 12 125,000 B 330,000 20 220,000 Refer to Smith Corporation. Using the direct method, what amount of Data Processing costs is allocated to A (round to the nearest dollar)
Answer:
$474,819
Explanation:
The computation of the amount of Data Processing costs is allocated to A is shown below:
Personal Cost
= 300,000 ÷ (12+20) × 12
= $112,500
And, the Data Processing Cost is
= 1000,000 ÷ (125,000 + 220,000) × 125,000
= 362,319
So, the Total cost is $474,819
Widget Manufacturing Company is preparing a profit budget and has projected that net sales will equal $470,000 for the period and that fixed manufacturing costs will be $150,000. Additionally, Widget expects variable manufacturing costs to be 35% of net sales. Widget manufacturing expects no changes to any inventory values from the beginning of the period to the end of the period. Use this information to determine Widget Manufacturing Company's budgeted gross profit. En g
Answer:
the Widget Manufacturing Company's budgeted gross profit is $155,500
Explanation:
The computation of the Widget Manufacturing Company's budgeted gross profit is shown below:
Value of Opening inventory = Value of Closing inventory
As we know that
Gross profit = Sales- Variable Expenses- Fixed cost
= $470,000 - $164,500(35% of $470,000 ) -$150,000
= $155,500
Hence, the Widget Manufacturing Company's budgeted gross profit is $155,500
26 . Alpha Co. can produce a unit of Beta for the following costs: Direct Material $4 Direct Labor 12 Overhead 20 TOTAL $36 An outside supplier offers to provide Alpha with all the Beta units it needs at $30 per unit. If Alpha buys from the supplier, Alpha will still incur 50% of its overhead. The proper decision and the total relevant cost to compare with the $30 purchase price are:
Answer:
b. Make, $26
Explanation:
Options are "A. Buy, $26. B. Make, $26. C. Buy, $36. D. Make, $36 E. Buy, $40"
Calculation of total relevant cost
Direct materials $4
Direct labor $12
Overhead $10 ($20 * 50%)
Total relevant cost $26
Since the relevant cost is $26 when making, so the proper decision and the total relevant cost to compare with the $30 purchase price are "Make, $26".
Koczela Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 29,000 $ 24,000 Finished goods $ 58,000 $ 62,000 Additional information: Direct materials $ 69,000 Direct labor cost $ 99,000 Manufacturing overhead cost incurred $ 75,000 Manufacturing overhead cost applied to Work in Process $ 73,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for May is:
Answer:
cost of goods manufactured= $246,000
Explanation:
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= 29,000 + 69,000 + 99,000 + 73,000 - 24,000
cost of goods manufactured= $246,000
Mystery, Inc. is contemplating selling bonds. The issue is to be composed of 800 bonds, each with a face amount of $750. How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par
Answer:
$570,000
Explanation:
Calculation to determine How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par
Using this formula
Total Amount borrowed=Bonds*Face value*95% of par
Let plug in the formula
Total Amount borrowed=800*$750*0.95
Total Amount borrowed=$570,000
Therefore the amount the Mystery, Inc. will be able to borrow (in total) if each bond is sold at 95% of par is $570,000
Tính nguyên giá tài sản cố định
Answer:
Answer to the following question is as follows;
Explanation:
It's determined by adding the purchase price among all fixed assets plus any modifications made to them. Then deduct any accrued depreciation from the total. In a nutshell, net fixed assets is a metric that indicates the true worth of a company's fixed assets.
Why do people establish their own business?
Answer:
financial freedom
Explanation:
the reasons people start their own business is usually because they desire financial freedom meaning they would like have more disposable resources for themselves.
applying macroeconomic knowledge to explain the fiscal policy of countries in 2008
Rules of Debit and Credit The following table summarizes the rules of debit and credit. Indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Credit Liability Credit Stockholders' equity: Common Stock Credit Retained Earnings Credit Dividends Debit Credit Income statement accounts: Revenue
The table represents the normal debit balance of the following accounts also the increment or decrement related to these accounts is as follows:
The following information should be considered:
The asset, dividend & expenses contains the normal debit balance. And, the liability & equity should contain the normal credit balance.Particulars Increase decrease normal balance
Asset debit credit debit
liability credit debit credit
common stock credit debit credit
retained earnings credit debit credit
dividend debit credit debit
revenue credit debit credit
expense debit credit debit
In this way, the above table should be presented.
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Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets
Answer:
$188.46 million
Explanation:
Firstly, calculate sales at full capacity
Sales at full capacity = Sales at current capacity / % of capacity
Sales at full capacity = $350 million / 0.65
Sales at full capacity = $538.46 million
Increase in sales without increase in fixed assets = Sales at full capacity - Sales at current capacity
Increase in sales without increase in fixed assets = $538.46 million - $350 million
Increase in sales without increase in fixed assets = $188.46 million
5.Which of the following is a valid Excel formula?
a) =C4*D4
b) B4*D4
c) Both =C4* and B4*D4
d) Neither =C4* nor B4*D4
The idea of rational expectations suggests that :_________
a) It is unrealistic for Congress to balance the federal budget during a recession.
b) Discretionary policies and fine-tuning can move the economy to full employment.
c) Economic policies are ineffective if the policies are anticipated.
Answer:C
Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.
Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and production Model A1) is presented below: Sales price per unit $30 Costs per unit: Direct material 7 Direct labor 4 Overhead (50% variable) 6 Selling costs (40% variable) 10 Production in units 10,000 Sales in units 9,500 Refer to Henderson Electronics Corporation. The Model B2 radio is currently in production and it renders the Model A1 radio obsolete. If the remaining 500 units of the Model A1 radio are to be sold through regular channels, what is the minimum price the company would accept for the radios
Answer:
$4
Explanation:
Calculation to determine the minimum price the company would accept for the radios
Minimum price=Selling costs (40% variable)*$10
Minimum price=$4
Therefore the minimum price the company would accept for the radios will be $4 because it COVER THE VARIABLE SELLING EXPENSE
The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer:
The analysis and refinement phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer: analysis and refinement
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the debit and credit columns show debits of $28,480 and credits of $38,055. This indicates that a.the company has a net income of $9,575 for the period. b.neither net income or loss can be calculated because it is found on the income statement c.the amounts are out of balance and need to be corrected. d.the company has a net loss of $9,575 for the period.
Answer:
This indicates that
d.the company has a net loss of $9,575 for the period.
Explanation:
a) Data and Calculations:
Total debits of the balance sheet (assets) = $28,480
Total credits of the balance sheet (liabilities + equity) = $38,055
Difference (net loss) = $9,575 ($38,055 - $28,480)
b) With the determination of the net loss of $9,575, the two sides (debits and credits) of the balance sheet will equal. This is because the net loss of $9,575 will reduce the credits from $38,055 to $28,480.
which industries operates at the primary stage of production
Answer:
raw material extraction
Explanation:
any industry that extract raw material for onward production is considered a primary stage.
J&H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages.
Last year, J&H Corp. reported a book value of $500 million in current assets, of which 20% is cash, 22% is short-term investments, and the rest is accounts receivable and inventory
The company reported $425.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period
The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $800 million in long-term assets last year
Income Statement For the Year Ended on December 31 (Millions of dollars)
Industry &H Corp Average $4,875 3,900 195 4,095 $780 Net sales $3,900 3,120 156 3,276 $624 62 $562 225 $337 Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net income $663 265 $398
Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true?
a. The company is using-$35.0 million in net operating working capital acquired by investor-supplied funds
b. J&H Corp.'s NOPAT is $374.4 million, which is lower than the industry average of $468.0 million
c. J&H Corp. has $110.0 million in nonoperating assets.
d. The firm uses $765.0 million of total net operating capital to run the business.
e. J&H Corp.'s net operating working capital is $75.0 million.
Answer:
c. J&H Corp. has $110 million in non operating assets.
e. J&H Corp's net operating working capital is $75 million.
Explanation:
NOPAT = EBIT ( 1 - Tax)
Tax is 40%
NOPAT = 663 * 60% = $698
Total currents assets $500 million and long term assets are 800 million.
The non Operating assets are 22% which is $110 million.
Net operating working capital = Current assets - Current liabilities
Net operating Working capital = 500 - 425 = $75 million.
what is a marginal cost?
When Alice started working, she has decided to deposit $250 a pay check into a savings account that earns an interest of 1% per month. She gets paid on the last day of every month. Which of the following expression may be used to determine the account value 10 years from now?
a. F= [250/0.01] (F/P, 1%, 60)
b. F = 250[(P/A, 1%, 120) (F/P, 12%, 5)]
c. F= 250(F/A, 1%, 120)
d. F = [3,000(P/A, 12%, 10)] [(F/P, 12%, 10)]
Answer:
The correct option is c. F= 250(F/A, 1%, 120).
Explanation:
Since she gets paid on the last day of every month, implies we are to the determine the future value (F) of an ordinary annuity. Therefore, the original expression for the future value (F) of an ordinary annuity is as follows:
F= A(F/A, i, n) …………………. (1)
Where:
F = Future value
A = Periodic or monthly amount = $250
F/A = Convert A to F
i = monthly interest rate = 1%
n = number of months = Number of years * number of months in a year = 10 * 12 = 120
Substituting the values into equation (1) except F/A, we have:
F= 250(F/A, 1%, 120) …………………… (1)
Therefore, the correct option is c. F= 250(F/A, 1%, 120).
Note:
Note that inputting equation into a scientific calculator will give the following future value (F):
F = $57,509.67
Differential Analysis for a Lease or Sell Decision Granite Construction Company is considering selling excess machinery with a book value of $282,400 (original cost of $400,700 less accumulated depreciation of $118,300) for $275,700, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $284,900 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $24,600.
Required:
Prepare a differential analysis, dated November 7 to determine whether Granite should lease (Alternative 1) or sell (Alternative 2) the machinery.
Answer and Explanation:
The preparation of the differential analysis is presented below:
Particulars Lease Machinery Sell Machinery Differential Effect on Income
Revenues $284,900 $275,700 $9,200
Costs $24,600 $13,785 $10,815
Income (Loss) $260,300 $261,915 -$1,615
It is better to sell the machinery as it has a loss of $1,615
You are considering purchasing a car with a sticker price of $36,270 (non negotiable with no down payment required). You wish to make monthly payments for six years and the most that you would like to pay is $600 a month. Your local bank/credit union has agreed to loan you the money at a 4.29% annual interest rate. Create an amortization table reporting the beginning/ending loan balance, total payment, the portion of payment going to interest and principal, and remaining loan balance. Create a IF statement that answers the question of whether you can afford the loan. What is your monthly loan payment and what is the total interest paid on the loan
Answer:
1. Amortization Table:
Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $36,270.00 $129.67 $442.59 $35,827.41
2 $35,827.41 $128.08 $444.17 $35,383.24
3 $35,383.24 $126.50 $445.76 $34,937.48
4 $34,937.48 $124.90 $447.35 $34,490.12
5 $34,490.12 $123.30 $448.95 $34,041.17
6 $34,041.17 $121.70 $450.56 $33,590.61
7 $33,590.61 $120.09 $452.17 $33,138.44
8 $33,138.44 $118.47 $453.79 $32,684.65
9 $32,684.65 $116.85 $455.41 $32,229.25
10 $32,229.25 $115.22 $457.04 $31,772.21
11 $31,772.21 $113.59 $458.67 $31,313.54
12 $31,313.54 $111.95 $460.31 $30,853.23
Year #1 End
13 $30,853.23 $110.30 $461.96 $30,391.27
14 $30,391.27 $108.65 $463.61 $29,927.67
15 $29,927.67 $106.99 $465.26 $29,462.40
16 $29,462.40 $105.33 $466.93 $28,995.47
17 $28,995.47 $103.66 $468.60 $28,526.88
18 $28,526.88 $101.98 $470.27 $28,056.60
19 $28,056.60 $100.30 $471.95 $27,584.65
20 $27,584.65 $98.62 $473.64 $27,111.01
21 $27,111.01 $96.92 $475.33 $26,635.68
22 $26,635.68 $95.22 $477.03 $26,158.64
23 $26,158.64 $93.52 $478.74 $25,679.90
24 $25,679.90 $91.81 $480.45 $25,199.45
Year #2 End
25 $25,199.45 $90.09 $482.17 $24,717.29
26 $24,717.29 $88.36 $483.89 $24,233.40
27 $24,233.40 $86.63 $485.62 $23,747.77
28 $23,747.77 $84.90 $487.36 $23,260.42
29 $23,260.42 $83.16 $489.10 $22,771.32
30 $22,771.32 $81.41 $490.85 $22,280.47
31 $22,280.47 $79.65 $492.60 $21,787.86
32 $21,787.86 $77.89 $494.36 $21,293.50
33 $21,293.50 $76.12 $496.13 $20,797.37
34 $20,797.37 $74.35 $497.91 $20,299.46
35 $20,299.46 $72.57 $499.69 $19,799.78
36 $19,799.78 $70.78 $501.47 $19,298.31
Year #3 End
37 $19,298.31 $68.99 $503.26 $18,795.04
38 $18,795.04 $67.19 $505.06 $18,289.98
39 $18,289.98 $65.39 $506.87 $17,783.11
40 $17,783.11 $63.57 $508.68 $17,274.43
41 $17,274.43 $61.76 $510.50 $16,763.93
42 $16,763.93 $59.93 $512.32 $16,251.60
43 $16,251.60 $58.10 $514.16 $15,737.45
44 $15,737.45 $56.26 $515.99 $15,221.45
45 $15,221.45 $54.42 $517.84 $14,703.61
46 $14,703.61 $52.57 $519.69 $14,183.92
47 $14,183.92 $50.71 $521.55 $13,662.37
48 $13,662.37 $48.84 $523.41 $13,138.96
Year #4 End
49 $13,138.96 $46.97 $525.28 $12,613.68
50 $12,613.68 $45.09 $527.16 $12,086.52
51 $12,086.52 $43.21 $529.05 $11,557.47
52 $11,557.47 $41.32 $530.94 $11,026.53
53 $11,026.53 $39.42 $532.84 $10,493.70
54 $10,493.70 $37.51 $534.74 $9,958.95
55 $9,958.95 $35.60 $536.65 $9,422.30
56 $9,422.30 $33.68 $538.57 $8,883.73
57 $8,883.73 $31.76 $540.50 $8,343.23
58 $8,343.23 $29.83 $542.43 $7,800.81
59 $7,800.81 $27.89 $544.37 $7,256.44
60 $7,256.44 $25.94 $546.31 $6,710.12
Year #5 End
61 $6,710.12 $23.99 $548.27 $6,161.86
62 $6,161.86 $22.03 $550.23 $5,611.63
63 $5,611.63 $20.06 $552.19 $5,059.43
64 $5,059.43 $18.09 $554.17 $4,505.27
65 $4,505.27 $16.11 $556.15 $3,949.12
66 $3,949.12 $14.12 $558.14 $3,390.98
67 $3,390.98 $12.12 $560.13 $2,830.85
68 $2,830.85 $10.12 $562.14 $2,268.71
69 $2,268.71 $8.11 $564.15 $1,704.57
70 $1,704.57 $6.09 $566.16 $1,138.40
71 $1,138.40 $4.07 $568.19 $570.22
72 $570.22 $2.04 $570.22 $0.00
Year #6 End
2. IF monthly payment is <$600, then take the loan.
3. The monthly payment is $572.26
4. The total interest paid on the loan is $4,932.42.
Explanation:
a) Data and Calculations:
Car loan = $36,270
Expected payment per month = $600
Loan interest rate = 4.29%
Period of payments = 6 years or 72 months
Results:
Payment Every Month $572.26
Total of 72 Payments $41,202.42
Total Interest $4,932.42
Tip Top Corp. produces a product that requires 11 standard gallons per unit. The standard price is $4.5 per gallon. If 4,500 units required 50,500 gallons, which were purchased at $4.27 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance
Answer:
Explanation:
To calculate the direct material price, quantity, and total variance; we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (4.5 - 4.27)*50,500
Direct material price variance= $11,615 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (11*4,500 - 50,500)*4.5
Direct material quantity variance= $4,500 unfavorable
Total direct material cost variance= 11,615 - 4,500
Total direct material cost variance= $7,115
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:
Answer:
the principal-agent problem
Explanation:
In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.
So the above should be the answer
types of equilibrium
Explain the relationships between a firm’s short-run production function and its short-run cost
function
Answer:
The answer is below
Explanation:
The relationships between a firm’s short-run production function and its short-run cost function can be explained by considering the firm's short-run cost function as a form of closely related but opposite in direction of its production function.
This implies that when the firm's short-run cost function increases its marginal product, its marginal cost decreases, and in contrast, when its marginal product decreases its marginal cost commences to increase