Answer:
A. $32,480
Explanation:
Calculation for The Incremental Income or loss on reworking the units
First step is to calculate the incremental revenue from reworking
Incremental revenue from reworking= ($22.60- $5.80)
Incremental revenue from reworking (= $16.80
Second step is to calculate net benefit per unit to rework
Net benefit per unit to rework= 16.80- 5.20
Net benefit per unit to rework = $11.60
Last step is to calculate the incremental income from reworking
Incremental income from reworking= ($11.60* 2,800 units)
Incremental income from reworking = $32,480
Therefore The Incremental Income or loss on reworking the units is:$32,480
Randolph Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is the company's margin of safety
Answer:
Margin of Safety = $124,038
Explanation:
Given:
Total Sale = $825,000
Sales price = $275 per unit
Variable cost per unit = $135
Fixed costs total = $356,860
Find:
Margin of Safety
Computation:
BEP Sale = FC / [(Sales per unit - VC) / Sales per unit]
BEP Sale = $700,962
Margin of Safety = Total Sale - BEP Sale
Margin of Safety = $825,000 - $700,962
Margin of Safety = $124,038
Comparing perfect first degree price discrimination to perfect competition one can conclude that: (i) Total social surplus is the same in either case (ii) Consumer surplus is higher under perfect
A. Only (1) is true
B. Only (ii) is true
C. Both (i) and (ii) are true
D. Neither (i) nor (i) is true
Answer:
C. Both (i) and (ii) are true
Explanation:
Under perfect price discrimination, consumer surplus doesn't exist since the supplier is selling the good or service at the maximum price that each consumer is willing to pay. This situation maximizes supplier surplus.
Under perfect competition, both supplier and consumer surplus exist.
Since total social surplus = supplier surplus + consumer surplus, total surplus should be the same in both situations.
Identify which of the following is a drawback for charisma-based authority:__________a) Charismatic leaders often focus too much on efficiency in governingb) Charisma cannot be passed on from one leader to the next
c) A charisma-based leadership style tends to be inflexibled) People tend to react negatively to charismatic leaders
Answer:
B) Charisma cannot be passed on from one leader to the next
Explanation:
The Charismatic authority ican be regarded as leadership style whereby
authority is exercise as a result of
special personal qualities put up by individual so that he/she can be attractive enough to bring influence on large number of people. It should be noted that some of drawback of this leadership style is that Charisma cannot be passed on from one leader to the next
Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ________.
Answer:
17.5%
Explanation:
Calculation for The simple rate of return on the investment
First step is to calculate the Depreciation
Depreciation =$400,000/5 years
Depreciation = $ 80,000
Second step is to calculate the annual incremental net operating income
Sales Revenue $250,000
Less Cash Operating Expenses ($100,000)
Less Depreciation ($80,000)
Annual incremental net operating income $70,000
($250,000-$100,000-$80,000)
Last step is to calculate the simple rate of return on the investment using this formula
Simple rate of return=Annual incremental net operating income/Initial investment
Let plug in the formula
Simple rate of return=$70,000/$400,000
Simple rate of return=0.175*100
Simple rate of return=17.5%
The simple rate of return on the investment is closest to 17.5%
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $13,751.00 exactly 12.00 years from today. Assuming that Derek believes the appropriate discount rate is 4.00%, how much is he willing to pay for this money machine?
Answer:
$8,588.83
Explanation:
To determine the amount that Derek would pay for the money machine, we are to calculate the present value of the lump sum to be received in 12 years.
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 11 = 0
Cash flow in year 12 = $13,751.00
I = 4%
Present value = $8,588.83
To find the PV 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
Mikan Company’s standard predetermined overhead rate is $9 per direct labor hour. For the month of June, 26,000 actual hours were worked, and 27,000 standard hours were allowed. How much overhead was applied? Overhead applied
Answer:
Allocated MOH= $234,000
Explanation:
Giving the following information:
Predetermined overhead rate= $9 per direct labor hour.
Actual direct labor hours= 26,000
To allocate manufacturing overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9*26,000
Allocated MOH= $234,000
Southern Home Cooking just paid its annual dividend of $0.74 a share. The stock has a market price of $14 per share and a beta of 1.16. The return on U.S. Treasury bills is 2.5 percent and the market risk premium is 6.8 percent. What is the firm’s cost of equity?
Answer:
10.39%
Explanation:
Calculation for What is the firm’s cost of equity
Using this formula
Cost of equity=Treasury bills+(Beta*Market risk premium)
Let plug in the formula
Cost of equity=0.025 + (1.16 x 0.068)
Cost of equity=0.025 + 0.0789
Cost of equity=0.1039*100
Cost of equity=10.39%
Therefore the firm’s cost of equity will be 10.39%
Denise has $13,424 in a savings account with the District 113 Teacher's Credit Union. While economic conditions have caused the credit union to struggle financially, Denise need not worry because her deposits are insured by the:
Answer:
Explanation:
$120= the amount to pay for the shoe
$20 paid for the month
Balance to pay = $100
Then 3% interest rate on credit card = 3% of $100=$3
Therefore amount to pay = $3+$100=$103
Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following data:
Variable cost per unit $15
Total fixed costs $90,000
Desired profit $150,000
a. $23
b. $10
c. $8
d. $15
Answer:
c. $8
Explanation:
Calculation to determine the selling price
First step is to calculate the Markup percent
Markup percent= (90,000 + 150,000) / (30,000 x 15)
Markup percent = .533
Now let calculate the selling price
Selling price=533 x $15 per unit
Selling price= $8
Therefore the Selling price will be $8
Identify and explain the components of management compensation and the tradeoffs that compensation designers make.
Incorrect/Incomplete question: Complete question read;
Which of the following statements correctly describes management compensation options?
A) Managers do not receive fixed salaries; instead their compensation is based on bonuses and incentives.
B) Perks (perquisites) were eliminated as part of the Sarbanes-Oxley Act.
C) Bonuses are typically awarded for meeting or achieving specific goals.
D) Stock options and awards are part of fixed salary compensation.
Answer:
C) Bonuses are typically awarded for meeting or achieving specific goals.
Explanation:
All the options above with the exception of option C rightly describes management compensation plans. Remember, the term compensation includes both cash and non-cash payments an employee may receive for performing their duties well.
Hence, managers may award certain bonuses (eg 5% salary bonuses, etc) to their employees for working diligently to meet specific goals (like meeting a sales target, new customer acquisition targets, etc).
a single person making $240 weekly and claiming 1 allowance would have $13 withheld for income taxes.A married person making $240 weekly and claiming 1 allowance would have $3 withheld for income taxes.Do you think this is fair?Why or Why not?
A consumer purchases new windows for his/her home to replace the original windows put in when they house was built, this could be an example of what type of benefit?
A. Resource benefit
B. The actual window
C. Product
D. Sensory benefit
Answer:
D. Sensory benefit
Explanation:
Sensory benefit is the method that is used by marketers to promote their products in such a way that they appeal to the emotions of buyers.
When a consumer buys this way it is more of an emotional response than a need born of necessity.
In the given instance the consumer purchases new windows for his/her home to replace the original windows put in when they house was built.
It does not mean the old windows are not functioning well, but due to personal preference the consumer decides to replace the windows
After year 3, free cash flows are expected to grow at a constant 5% a year indefinitely. The discount rate is 10%. The firm has debt of $50 million, cash of $20 million and has 10,000,000 shares outstanding. What is the price of the stock
Answer:
The price of the stock = $26.69
Explanation:
Missing question at inception is as follows "A firm expects the following free cash flows: Year 1: $10 million, Year 2: $12 million, Year 3: $15 million"
Year Cash-flows"million D. rate at 10% Discounted cash flows
1 10 0.9091 9.0910
2 12 0.8264 9.9168
3 15 0.7513 11.2695
4 315 0. 7513 236.6595
Total $266.9368
The price of the stock = Total Present value of cash flows / Number of Shares outstanding
The price of the stock = $266,936,800 / 10,000,000 shares
The price of the stock = $26.69368
The price of the stock = $26.69
Thus, the price of the stock is $26.69 per share
Note:
Present value of future cash flows at year 3 = 15*(1.05/10%-5%) = 15*(1.05/5%) = 15 * 21 = $315 million
Discount rate for each year = 1/(1+r)^1 = 1/(1+0.10)^1 = 1/1.10 = 0.90909
Under what conditions do you think the U.S. dollar might weaken against other major currencies (i.n. the euro, yen and yuan)
Answer:
In simple words, Currency depreciation relates to the decrease in the worth of the dollar compared to some other economy in the sense regarding U.S. dollar. The weakening of the US dollar will lead to a number of economic variables. They include fiscal system, increasing rates or rising prices, currency request, economic development, and rates for exports.
What are some of your strengths areas? Think about the top 2/3 skills you would advertise about yourself, consider what others come to you for advice about.
Answer:
Some of my strength areas are trustworthiness, creativity and solving problems, leadership and organization, analytical skills, determination, and empathy.
Explanation:
Every person's core strengths or skills should fall into these three main areas: personal, play, and work. Personal skills deal with the fundamental skills that give the background to every activity that a person undertakes. Play skills define the human interaction and relationship with others. Work skills specify one's attitude to work and how a person achieves her goals in the work environment.
It costs Crane Company $28 of variable costs and $15 of allocated fixed costs to produce an industrial trash can that sells for $76. A buyer in Mexico offers to purchase 3000 units at $30 each. Crane Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income
Answer:
Effect on income= $6,000 increase
Explanation:
Giving the following information:
Unitary variable cost= $28
Selling price= $30
Number of units= 3,000
Because it is a special offer and there is unused capacity, we will not take into account the allocated fixed costs.
Effect on income= 3,000*(30 - 28)
Effect on income= $6,000 increase
Question 27 (2 points)
Which of the following is not one of the four factors of production?
Entrepreneurship
Human resources
Production resources
Natural resources
Answer:
Entrepreneurship
Explanation:
Carefully set sales territories A) can reduce travel time but increase costs. B) can reduce confusion about who has responsibility for a set of sales tasks. C) always include at least one metropolitan area. D) always reduce the cost of sales calls. E) can increase travel time while reducing costs.
Answer:
B) can reduce confusion about who has responsibility for a set of sales tasks.
Explanation:
The carefully set sales territories reduce the confusion with respect to the responsibility for setting out the selling task
Therefore as per the given situation, the option B is correct as it fits to the situation
Thus, all the other options are incorrect
Hence, the option B is correct
review financial website or publications and three examples of a bond. for each bond gather the following information and complete the table coupon rate selling price maturity date
Answer:
Company Coupon Rate Selling Price Maturity Date
Bombardier Inc. 7.5% $96.40 3/15/2025
NGL Energy Partners LP 6.875% $97.50 10/15/2021
Disney 2.150% $101.45 9/17/2020
Explanation:
from the Plato
The Coupon Rate, Selling Price and Maturity Date are important terms in a bond contract.
What are the bonds terms?The coupon rate is the yield that determines the amount that an investor is expected to receive, the selling price is the present value of the cash amounts that will received by the bond owner and the maturity date is the date at which the bond will mature for full repayment.
The gathered information from the financial website includes:
Company Coupon Rate Selling Price Maturity Date
Bombardier Inc. 7.5% $96.40 3/15/2025
NGL Energy Partners LP 6.875% $97.50 10/15/2021
Disney 2.150% $101.45 9/17/2020
Read more about bonds
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Presented below is information available for Crane Company.
Current Assets
Cash $ 3500
Short-term investments 50000
Accounts receivable 56000
Inventory 80000
Prepaid expenses 25000
Total current assets $ 214500
Total current liabilities are $73000.
The acid-test ratio for Crane is:__________
Answer:
the acid-test ratio is 1.5 times
Explanation:
The computation of the acid-test ratio is as follows:
Acid test Ratio = Quick assets ÷ current liabilities
where,
Quick Assets is
= Cash + short tern investments + Account receivable
= $3,500 + $50,000 + $56,000
= $109,500
And, the current liabilities is $73,000
So, the acid-test ratio is
= $109,500 ÷ $73,000
= 1.5 times
Hence, the acid-test ratio is 1.5 times
Food King gathered the following information for the fourth quarter of 20X9: Budgeted sales for October $25,000 Monthly Expenses: Salary expense $1,500 Rent expense $1,000 Depreciation expense $400 Sales commissions 10% of sales Advertising expense 8% of sales Miscellaneous expense 5% of sales Monthly sales are expected to increase by 5% each month. Prepare an operating expense budget for the fourth quarter (for three separate months) of 20X9.
Answer and Explanation:
The presentation of the operating expense budget is presented below:
Particulars October November December
Budgeted sales $25,000 $26,250 $27,562.5
($25,000 × 1.05) ($26,250× 1.05)
Salary Expense $1,500 $1,500 $1,500
Rent expense $1,000 $1,000 $1,000
Depreciation
expense $400 $400 $400
Sales Commission $2,500 $2,625 $2,756
($25,000 ×10%) ($26,250 × 10%) ($27,562.50 × 10%)
Advertising expense $2,000 $2,100 $2,205
($25,000 ×8%) ($26,250 × 8%) ($27,562.50 × 8%)
Miscellaneous expense $1,250 $1,312.5 $1,378
($25,000 ×5%) ($26,250 × 5%) ($27,562.50 × 5%)
Total Monthly expenses $8,650 $8,937.5 $9,239
Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 13%, a before-tax cost of debt of 10%, and a tax rate of 40%. The company’s retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year D1 is $3, and the current stock price is $35.
a. What is the company’s expected growth rate?
b. If the firm’s net income is expected to be $1.6 billion, what portion of its net income is the firm expected to pay out as dividends?
Answer and Explanation:
The computation is shown below
a. Given that
WACC = 13%
Before-tax cost of debt = 10%
As we know that
WACC = After tax Cost of debt × Weight of debt + Cost of equity × weight of equity
13% = 10% × (1 - 0.40) × 0.40 + X × 0.60
13% = 6% × 0.40 + X × 0.60
13% = 2.4% + X × 0.60
10.6% = X × 0.60
X = 17.67%
Now
Cost of equity = D1 ÷ Price + g
0.1767 = $3 ÷ 35 + g
g = 9.10%
Now
B) Growth rate = (1 - payout ratio) × ROE
.0910 = ( 1 - X) × 0.2667
Payout ratio = 65.88
As we know that
ROE = net income ÷ shareholders equity
= $1.6 billion ÷ $6 billion
= 26.67%
Now the portion of the net income for the dividend would be
= 65.88 × $1.6 billion
= 1.054 billion
Inflation makes certain things less valuable in real terms, including: Group of answer choices your full college scholarship. real estate and precious metals. anything expressed in dollars. a fixed monthly pension payment.
Answer:
anything expressed in dollars
Explanation:
In the case when there is an inflation that makes specific things less valuable in the real terms is the thing that expressed in dollars
As per the given options, the full scholarship of college, real estate and the fixed month pension payment represent the more valuable
But the remaining option i.e. anything expressed in dollars show the less valuable
So, the same is to be considered
The objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions. provide incentive for firms to maintain regulation emission levels. provide adequate incentive for firms to reduce their emissions by more. ensure firms must pay the pollution charge for all reduced emissions.
Answer:
provide adequate incentive for firms to reduce their emissions by more.
Explanation:
Pollution charge can be regarded as a tax imposed on firms based on the quantity of pollution emmitted to atmosphere by the firm. With imposition of pollution tax, profit-maximizing firm would have the incentive to look out for ways to reduce the firm's emissions provided the marginal cost required to reduce the emissions is not equal or more than the tax. It should be noted that the objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions provide adequate incentive for firms to reduce their emissions by more.
The objective of imposing a higher pollution tax is to ensure firms provide adequate incentives for firms to reduce their emissions by more.
A levy called a pollution tax is imposed on people who pollute or harm the environment. This tax's primary goal is to lessen harm to the environment. A component of the economic system intended to lessen pollution and its damaging effects on the environment is the pollution tax. Polluters are taxed for the harm their actions do to the environment and other people.
Pollution taxes include the carbon tax. Based on the amount of carbon that is released during combustion, it imposes a tax on the production, distribution, or use of fossil fuels.
Learn more about the Pollution Taxes here:
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What are the legal steps to take when trying to start a business
There are 3 major forms of business ownership
Sole Proprietorship
Partnership
Private Limited Liability Company
If you are to start a business, which of these form of business would you pick and what are your reasons
Answer:
partnership
Explanation:
because I don't know what I will do if i don't have a partner and you two would brainstorm so you can do it well and right
The Domingos family bought a new refrigerator. How much more or less is the amount they spent than the amount they budgeted?Budgeted: $1,345.60 Spent: $1,354.66
technical school provide formal.......?
Answer:
Sin la escuela técnica proporciona formalmente recurso muy importantes para los estudiantes debido a su exigencia académica y de rendimiento para lo cual los estudiantes deben estar preparados para así poder lograr los objetivos de la escuela técnica y otras metas.
Explanation:
Gracias.
#cuidemonosdesdecasa.
When creditors, managers, and investors look at expenses as a percentage of revenue, they are __________.
Answer:
Doing a financial statement analysis.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.
Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.
Journalize the following transactions for Combs Company.
(a) Purchased 6,000 units of raw materials on account for $11,500. The standard cost was $12,000.
(b) Issued 5,600 units of raw materials for production. The standard units were 5,800.
Answer: See explanation
Explanation:
a. Debit: Raw material $12000
Credit: Account payable $11500
Credit: Material price variance $500
(To record material purchase)
b. Debit: Work in process 11600
Credit: Raw material 11200
Credit: Material price variance 400
(To record material issued)
Note:
Material price variance for (a)= 12000 - 11500 = 500
Work in progress = 5800 × 2 = 11600
Material price variance for (b) = 11600 - 11200 = 400
Additional information:During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Note: The full question is attached as picture below
Statement of cash flow - Pharaoh Company
Cash Flows From Operating Activities
Net Income $780
Adjustment
Depreciation Expenses $130
Gain On Sale Of Investment -$70
Increase In Receivable -$470
Decrease In Inventories $240
Increase In Accounts Payable $280
Decrease In Accrued Liabilities -$70
$40
Net Cash From Operating Activities $820
Cash Flows From Investing Activities
Sale Of Long Term Investment $190
(1400-1280)+70
Purchase Of Plant Assets -$190 $0
Net Cash Used Investing Activities $0
Cash Flows From Financing Activities
Repayment Of Bonds Payable -$140
Issue Of Common Stock $210
Payment Of Dividends -$260
Net Cash From Financing Activities -$190
Net Increase In Cash And Cash Equivalents $630
Beginning Cash Balance $1,130
Ending Balance $1,760