Darren Company produces three products with the following costs and selling prices: Product X Y Z Selling price per unit $40 $30 $35 Variable costs per unit 24 16 20 Contribution margin per unit $16 $14 $15 Direct labor hours per unit 4 2 3 Machine hours per unit 5 7 4 If Darren has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:

Answers

Answer 1

Answer:

Darren Company

The ranking of the products from the most profitable to the least profitable use of the constrained resource is:

Z, X, and Y.

Explanation:

a) Data and Calculations:

Product                                          X        Y         Z

Selling price per unit                  $40    $30    $35

Variable costs per unit                 24       16      20

Contribution margin per unit     $16     $14     $15

Direct labor hours per unit            4         2        3

Machine hours per unit                 5         7        4

Limiting factor = 30,000 machine hours

Contribution per limiting factor   $3.20 $2.00 $3.75

Contribution per constrained resource:

X = $16/5 = $3.20

Y = $14/7 = $2.00

Z = $15/4 = $3.75


Related Questions

Suppose that in your first year of college you spend $31,300.00 more than you eam. In your second year, your expenses increase a bit, leading you to spend $31.900.00 more than you earn. This gap goes to $32.150.00 in your third year of college, then falls a bit to $32,150.00 in your fourth and final year ist attempt What is your deficit in your third year of college? s s How much debt do you have that year? S

Answers

Answer: See explanation

Explanation:

Based on the information provided in the question, the deficit in the 3rd year of college will be: = $32,150

The total debt that one owes in the 3rf year will then be the addition of the debts from the 1st to the 3rd year and this will be:

= $31,300 + $31,900 + $32,150

= $63,232

Answer:

1. $32,150

2. $95,350

Explanation:

The deficit in the third year is given in the introduction: $32,150

The deficit measures how expenditures in a given year match up with earnings, whereas the debt is the total accumulation of deficits.

The debt after your third year is the sum of the deficits from your first three years: $31,300 + $31,900 + $32,150 = $95,350

1. Combined, Barry and Cheri bring home $3,500 each month (after taxes) from their full-time jobs. Additionally, Barry receives $100 per month for the lawn maintenance services he provides to his relative. The typical American family spends money in the categories listed below. Use the suggested percentages to help you figure what Barry and Cheri will spend in each category. Put your answers in the blanks below.
Housing 30% _________

Transportation 20% _________

Food 15% _________

Insurance 07% _________

Savings 10% _________

Other 18% _________
Please help I will mark brainliest. Do NOT post any links or you will be reported

Answers

Answer:

Housing - $1080

Transportation $720

Food - $ 540

Insurance- $252

Savings- $360

Other - $648

Explanation:

The total money earned by both Barry and Cheri  is $3,500 + $ 100 = $3600

Housing 30% ____0.3 * 3600_____ = 1080

Transportation 20% ___0.2 * 3600______= 720

Food 15% _____0.15 * 3600____= 540

Insurance 07% ___0.07* 3600______= 252

Savings 10% ___0.1* 3600______= 360

Other 18% ____0.18 * 3600_____ = 648

Charlie Plopp is selling a horse. If he does not sell the horse, then he gets no revenue. Three types of people are interested in buying the horse: professional cowboys who value the horse at $H, recreational riders who value the horse at $M, and glue factory representatives who value the horse at $L, where H>M>L. There are two buyers visiting Charlie's barn, and while Charlie can't tell what type of buyers they are, he knows that each one is independently and equally likely to be one of the three types. He is considering two methods of selling the horse: Method 1: He posts the horse at a price of $M. Method 2: He runs a sealed-bid auction and sells to the highest bidder at the second highest bid. Assume bidders bid rationally, and if a buyer is indifferent between buying and not buying, he buys. Charlie gets higher expected revenue from Method 2 if and only if which of the following conditions holds?
A) H+ 5L > SM
B) H+4L > 7M
C) 2H + 5M > 4M
D) H+ 5L <8M
E) H+ 5L <5M

Answers

I think it’s E if not then it’s C

Joe obtained a box of antique Lenox china dishes that had been left at the town dump. He supplemented the sizeable buy incomplete set of dishes with other Lenox pies found at antique dealers. At dinner parties, he proudly told of the origin of the china. When Marlene discovered that Joe had taken her dishes from the town dump, she hired an attorney to obtain their return. What result?

Answers

Answer:

The result of  Marlene hiring an attorney to obtain her return would only be successful if she did not voluntarily give up her right to ownership of the plates and can provide an evidence to that effect

Explanation:

The result of  Marlene hiring an attorney to obtain her return would only be successful if M can produce an evidence showing that she did not intentionally dump the plates into the town dump ( i.e. she did not voluntarily give up her right to ownership of the plates ) If not the plates will be transferred to give to Joe under the code name " finders keepers "

Anthony operates a part time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of $1,500 in Year 1, $2100 in Year 2, and $3,200 in Year 3, If Anthony's required rate of return is 10%, then the most he would be willing to pay for the new diagnostic computer system would be (Ignore income taxes.):
Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using the tables provided.
a. $4,599
b. $5,501
c. $5,638
d. $5,107

Answers

Answer:

b

Explanation:

The highest amount he would be willing to pay should equal the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $1500

Cash flow in year 2 = 2100

Cash flow in year 3 = 3200

I = 10%

PV = 5503.38

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  

On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus addi- tional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2021, 240,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2021. 2. Is depletion considered part of the product cost and included in the cost of inventory (yes/no)

Answers

Answer and Explanation:

The computation is shown below;

1. The depletion expense for the year 2021 is as follows;

= $4,500,000 ÷ 900,000 tons × 240,000 tons

= $1,200,000

2. Yes the depletion would be the part of the product cost and the same would be involved in the inventory cost as it is to be shown under the cost of goods sold when the income statement is prepared

Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $56 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber, and beet juice emerge from the crushing process. The beet fiber can be sold as is for $32 or processed further for $24 to make the end product industrial fiber that is sold for $44. The beet juice can be sold as is for $52 or processed further for $32 to make the end product refined sugar that is sold for $78. How much profit (loss) does the company make by processing the intermediate product beet juice into refined sugar rather than selling it as is?

a. $(6)
b. $(12)
c. $(39)
d. $(60)

Answers

Answer:

The answer is A. $ 6

Explanation:

If the beet juice is sold as is:

Selling price: $52

Costs: $56 + $18 = $74

Loss: $(22)

If beet juice is processed into sugar and sold:

Selling price: $78

Costs: $56+ $18+ 32= $106

Loss:($28)

Therefore there is an additional $6 loss.

The Laramie Factory produces expensive boots. It has two departments that process all the items. During January, the beginning work in process in the tanning department was 40% complete as to conversion and 100% complete as to direct materials. The beginning inventory included $6,000 for materials and $18,000 for conversion costs. Ending work-in-process inventory in the tanning department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was 60% complete as to conversion. Beginning inventories included $7,000 for transferred-in costs and $10,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments follows: Tanning Finishing Beginning work-in-process units 5,000 4,000 Units started this period 14,000 ? Units transferred this period 16,000 18,000 Ending work-in-process units ? 2,000 Material costs added $18,000 ? Conversion costs 32,000 $19,000 Transferred-out cost 50,000 ?
Required: Prepare a production cost worksheet using weighted-average costing for the finishing department.

Answers

Answer:

The Laramie Factory

Finishing Department

Production Cost Worksheet, using weighted-average costing

Cost assigned to:              Materials    Conversion       Total

Units transferred out        $66,348        $28,062      $94,410

Ending work in process        7,372                935          8,307

Total cost accounted for $73,720         $28,997     $102,717

Explanation:

a) Data and Calculations:

                                                     Materials                     Conversion

                                                 Tanning  Finishing      Tanning  Finishing

Beginning work in process     100%          100%           40%          60%

Cost of beginning WIP         $6,000          $7,000     $18,000      $10,000

Ending work in process          100%           100%          40%          30%

Additional information:

                                                     Tanning    Finishing

Beginning work-in-process units  5,000         4,000

Units started this period               14,000       16,000

Units transferred out this period 16,000       18,000

Ending work-in-process units       3,000         2,000

                                                      Materials                     Conversion

                                                 Tanning  Finishing      Tanning  Finishing

Beginning work in process     100%          100%           40%          60%

Beginning work in process done this period               60%          40%

Ending work in process          100%           100%          40%          30%

Cost of beginning WIP         $6,000        $7,000     $18,000       $10,000

Costs added                          18,000      $66,720      32,000         19,000

Total costs of production  $24,000      $73,720    $50,000      $29,000

Transferred-out cost                                                  

Equivalent units

                                                       Materials                        Conversion

                                                     Tanning   Finishing      Tanning  Finishing

 Units started and completed       16,000       18,000         16,000     18,000

Ending work-in-process units       3,000        2,000           1,200          600

Equivalent units of production    19,000      20,000        17,200      18,600

Cost per equivalent units                Materials                        Conversion

                                                  Tanning   Finishing      Tanning  Finishing

Total cost of production          $24,000   $73,720      $50,000   $29,000

Equivalent units of production   19,000    20,000          17,200      18,600

Cost per equivalent unit            $1.263    $3.686          $2.907     $1.559

Tanning Department

Cost assigned to:              Materials    Conversion     Total

Units transferred out        $20,208       $46,512      $66,720

Ending work in process        3,789           3,488            7,277

Total costs                        $23,997      $50,000      $73,997

Finishing Department

Cost assigned to:              Materials    Conversion     Total

Units transferred out        $66,348        $28,062       $94,410

Ending work in process        7,372                935           8,307

Total cost accounted for $73,720         $28,997      $102,717

Sheridan Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 0.5 hour per unit, and the allowance for rest periods and setup is 0.5 hours and 0.4 hours, respectively. The standard direct labor hours per unit is

Answers

Answer:

$15.90

Explanation:

Standard direct labor rate per hour = Hourly wage rate per hour + Average raise in the hourly wage rate + Payroll taxes per hour + Fringe benefits per hour

Standard direct labor rate per hour = $12.00 + $0.30 + $1.20 + $2.40

Standard direct labor rate per hour = $15.90

Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $600,000. The terms of the loan are 3.5% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $fill in the blank 168512f2f010003_1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank.

Answers

Answer:

a. Total interest due for the loan = Loan amount * Interest rate p.a * Months/12 months = $600,000 * 3.5% * 8/12 = $14,000

Interest due for each month = $14,000 / 8 months = $1,750

b. Journal Entries for payment of interest and final settlement

Date        Account Title and Explanation    Debit    Credit

Oct 20     Interest Expenses                         $1,750

                      Cash                                                       $1,750

                (Interest payment entry passed)  

May 20    Interest Expenses                          $1,750

                Loan                                               $600,000

                      Cash                                                           $601,750

               (Entry passed for loan and final interest payment)

The graph above shows supply and demand for a popular brand of coffee. A gas crisis affects shipping costs. What would a coffee company do in anticipation of a rise in shipping costs, and how would that effect the equilibrium price? (1 point)

Group of answer choices

Add S2 to the right of S, showing increase in supply and equilibrium price.

Add S2 to the left of S, showing decrease in supply and increase in equilibrium price.

Add D3 to the left of D2, showing decrease in equilibrium supply and equilibrium price.

Add D3 to the right of D2, showing increase in equilibrium supply and equilibrium price.

Answers

Answer:

Add S2 to the left of S, showing decrease in supply and increase in equilibrium price.

Explanation:

I did this and got it right

n order for an item to be considered a gift: Group of answer choices a. It must be given without any characteristics of control left with the giftor. b. The item cannot be exchanged for an agreement to provide a contra gift or service. c. It must represent a contract. d. Both a and b are required for an item to be considered a gift. e. Both a and c are required for an item to be considered a gift.

Answers

Answer:

a. It must be given without any characteristics of control left with the giftor.

b. The item cannot be exchanged for an agreement to provide a contra gift or service.

Explanation:

According to the Internal revenue system (IRS) gift means any transfer made to an individual either in direct way or indirect and the full considered would not be collected in return. In other way, lets take an example that you gave a big amount check and gift some investment to the individual other than your dependent or your wife so here it means you gave a gift

Therefore the option a and b is correct

Externalities and the Coase Theorem: My neighbor never cuts his grass or cleans up his yard. Doing the work necessary to make the yard look nice would cause $400 of disutility for him. On the other hand, having to look at his messy yard causes me $600 in disutility.
a. Suppose I have the right to require him to clean up his yard, though he can continue to have a messy yard if he pays me enough to get me to accept it. Will he pay me, or will he clean up his yard? Explain.
b. Suppose instead that he has the right to keep his yard as he wishes, but I can pay him to clean it up if I wish. Will I pay him enough to get him to clean up his yard? Explain.
c. Based on your answers to (a) and (b), does the final result (whether or not the yard gets cleaned up) depend on the definition of property rights (whether he has the right to a messy yard, or whether I have the right to require him to clean it up)? Explain. Does the definition of property rights affect the overall well-being of the two parties involved? (Am I better off in one case or the other? Is my neighbor better off in one case or the other?) Explain.

Answers

Answer:

Externalities and the Coase Theorem

a. He will not pay me, but he can clean up his yard, paying $400.  He cannot pay me $600 (enough) to make me accept his messy yard.

b. I can pay him enough to get him to clean up his yard.  I have $600 disutility to pay for his $400 disutility.  This means that I can pay him enough and have some change.

c. The final result does not depend on the definition of property rights.  Rights are not absolute.  There are accompanying obligations, e.g. cleaning up his messy yard.  Therefore, there will be no violation of his property rights when he is mandated by a relevant governmental authority to clean up his yard or have his rights revoked.

d. The definition of property rights does not affect the overall well-being of the two parties involved.  If his yard starts getting messy to the extent of disturbing neighbors, his property rights will be limited.  I can still be better off with or without his property rights.  I only need a cooperative and understanding neighbor to enhance my well-being.

Explanation:

a) Data and Calculations:

My neighbor's disutility of cleaning his yard = $400

My disutility of having to look at his messy yard = $600

Disutility refers to the uselessness of a thing, signalling the absence of value.

b) According to the Coase theorem, when transaction costs are low and affordable, causing disutility, the two parties involved can bargain with an efficient outcome, despite the existence of some externalities.  Private parties have been known to fail to resolve the problem of externalities when they did not get the involvement of outside parties, e.g. courts and arbitration panels.

In Western culture, when you borrow ideas and words from other sources, you must cite them properly. Well-documented data from solid sources will help reinforce your professional credibility. Familiarize yourself with the kinds of materials and sources you need to document in business writing. Also, develop good research habits, and be aware of when and how to use quotations. Complete the following sentence.

It is important to document report data properly in order to:_________

Answers

Answer:

help reinforce your professional credibility.

It is important to document report data properly in order to help reinforce your professional credibility.

What is professional credibility?

Esty, honesty, trustworthiness, and other qualities that make you who you are. Your education, experience, performance, and proven professional progress all contribute to your professional reputation.

Professional recognition is crucial because it increases our reputation and fosters confidence among the individuals we work with. Personal qualities that characterize you as a person, such as honesty, integrity, and trustworthiness, make up your personal credibility.

Your education, experience, performance, and clearly established professional job history and progression all contribute to your professional reputation.

Thus, to help reinforce your professional credibility.

For more information about professional credibility, click here:

https://brainly.com/question/28189846

#SPJ2

Cabot Company manufactures two products, Product C and Product D. The company estimated it would incur $177,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Data concerning the current period's operations appear below:
Product C Product D
Estimated volume 3,800 units 3,000 units
Direct labor hours per unit 1.20 hours 0.80 hour
Direct materials cost per unit $11.60 $23.70
Direct labor cost per unit $10.80 $7.20
Requried:
a-1. Compute the predetermined overhead rate under the current method.
a-2. Determine the unit product cost of each product for the current year.
b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below:
Activity Cost Pools Estimated Overhead Costs Expected Activity
Product C Product D Total
Machine setups $12,890 180 190 370
Purchase orders 77,340 960 1,300 2,260
General factory 94,680 7,885 5,025 12,910
Total $184,910
Determine the unit product cost of each product for the current period using the activity-based costing approach.

Answers

Answer:

Results are below.

Explanation:

a)

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= 177,910 / (1.2*3,800 + 0.8*3,000)

Predetermined manufacturing overhead rate= $25.56 per direct labor hour

Now, we can allocate overhead to each Product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product C= 25.56*4,560= $116,553.6

Product D= 25.56*2,400= $61,344

Unitary overhead Product C= 116,553.6/3,800= $30.67

Unitary overhead Product D= 61,344/3,000= $20.45

Finally, the unitary cost per product:

Product C= 30.67 + 11.6 + 10.8= $53.07

Product D= 20.45 + 23.7 + 7.2= $51.35

b)

First, we need to calculate the activities rates:

Machine setups= 12,890/370= $34.84

Purchase orders= 77,340/2,260= $34.22

General factory= 94,680/12,910= $7.33

Now, we allocate costs to each product:

Product C:

Machine setups= 34.84*180= 6,271.2

Purchase orders= 34.22*960= 32,851.2

General factory= 7.33*7,885= 57,797.05

Total= $96,919.45

Product D:

Machine setups= 34.84*190= 6,619.6

Purchase orders= 34.22*1,300= 44,486

General factory= 7.33*5,025= 36,833.25

Total= $87.938.85

Finally, the unitary overhead and unitary total cost:

Product C:

Unitary overhead= 96,919.45/3,800= $25.51

Unitary product cost= 25.51 + 11.6 + 10.8= $47.91

Product D:

Unitary overhead= 87,938.85/3,000= $29.31

Product D= 29.31 + 23.7 + 7.2= $60.21

Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a performance bonus of $50,000 if the building is completed by July 31, 2018. The bonus is reduced by $10,000 each week that completion is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by Probability
31-Jul-18 65%
7-Aug-18 25%
14-Aug-18 5%
21-Aug-18 5%

Required:
Determine the amount of the transaction price.

Answers

Answer:

$995,000

Explanation:

The computation of the amount of the transaction price is shown below;

July 31, 2018 ($950,000+$50,000) × 0.65 =  $650,000

August 7, 2018  ($950,000+$40,000) × 0.25 = $247,500

August 14, 2018 ($950,000 + $30,000) × .05 = $49,000

August 21, 2018 ($950,000 + $20,000) × .05 = $48,500

Total $995,000

In this way it should be calculated

LaTanya Corporation is planning to issue bonds with a face value of $107,000 and a coupon rate of 6 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.
Round your final answer to whole dollars.) Required: Compute the issue (sale) price on January 1 of this year for each of the following independent cases:
a. Case A: Market interest rate (annual): 6 percent.
b. Case B: Market interest rate (annual): 4 percent.
c. Case C: Market interest rate (annual): 7 percent.

Answers

Answer:

A. $107,005

B. $119,842

C. $101,228

Explanation:

Computation for the issue (sale) price on January 1 of this year

a. Case A: Market interest rate (annual): 6 percent

Table value are based on:

n= 7

i= 6%

Cash Flow Table Value Amount Present Value

Par (maturity value) 0.6651 $107,000 $71,166

Interest (annuity) 5.5824 6,420 35,839

($107,000*6%=$6,420)

Issue Price 107,005

Therefore The Issue Price for Case A is $107,005

b. Case B: Market interest rate (annual): 4 percent

Table value are based on:

n= 7

i= 4%

Cash Flow Table Value Amount Present Value

Par (maturity value) 0.7599 107,000 81,309

Interest (annuity) 6.0021 6,420 38,533

Issue Price $119,842

Therefore the Issue Price for Case B is $119,842

c. Case C: Market interest rate (annual): 7 percent.

Table value are based on:

n= 7

i= 7%

Cash Flow Table Value Amount Present Value

Par (maturity value) 0.6227 107,000 66,629

Interest (annuity) 5.3893 6,420 34,599

Issue Price $101,228

Therefore The Issue Price for Case C is $101,228

What is organization? Explain elements with definition.

Answers

Answer:

An organisation is a business that has grown so big that it earns a lot of money

Explanation:

__ is NOT considered a high risk investment.

A. Investing in stocks

B. Investing in CDs

C. Investing in start-up ventures

D. Investing in entrepreneurial activities

Answers

B or D I believe I remember the question but it’s one of those 2

Ginger feels like she is very qualified for a Revenue job. Which qualifications does Ginger most likely have?

foreign language fluency, communication skills, and teamwork

physical fitness, stress management, and communication skills

public speaking skills, stress management, and debating skills

integrity, ability to analyze tax forms, and good math skills

Answers

integrity, ability to analyze tax forms, and good math skills.

Answer:

integrity, ability to analyze tax forms, and good math skills.

Explanation:

Santos Unlimited (SU) was originally unlevered with 4200 shares outstanding. However, after a major financial restructure, SU now has $37000 of debt, with an annual interest expense of 8 percent. The restructuring has reduced the number of shares to 3800. A group of shareholders of SU are not convinced that this move towards adopting financial leverage is a good idea. Their main argument is that there is now some range of EBIT, however low, that will make the shareholders worse off than before.

Required:
Help understand the situation better by computing the level of earnings before interest and tax (EBIT) that would make shareholders indifferent between being unlevered (i.e. not having any debt) and levered (i.e. having debt). Assume a 34 percent corporate tax rate.

Answers

Answer:

                            Unlevered             Levered

EAT       EBIT * (1-t)         EBIT - Interest - Tax

No. of shares         4,200                   3,800

Payoff per share holder = EAT / Number of shares. At Indifference point, per share payoff should be equal in both cases

EBIT * 0.66 / 4,200 = (EBIT - (37,000*8%) * 0.66) / 3,800

0.66*EBIT / 4,200 = [0.66*EBIT - 2,960*0.66] / 3,800

3,800 * 0.66EBIT = 4,200*[0.66EBIT - 1,954]

2,508 EBIT = 2,772 EBIT - 8,206,800

2,772 EBIT - 2,508 EBIT = 8,206,800

264 EBIT = 8,206,800

EBIT = 8,206,800/264

EBIT = 31086.36363636364

EBIT = $31,086.36

First Fiddler's Bank has foreclosed on a home mortgage and is selling the house at auction. There are three bidders for the house, Ernie and Betsy. First Fiddler's does not know the willingness to pay of these three bidders for the house, but on the basis of its previous experience, the bank believes that each of these bidders has a probability of 1/3 of valuing it at $700, 00 a probability of 1/3 of valuing at $400, 000, and a probability of 1/3 of valuing it at $300, 000. First Fiddler's believes that these probabilities are independent among buyers, and that Ernie and Betsy are rational bidders. If First Fiddler's sells the house by means of a second-price, sealed-bid auction (Vickrey auction), what will be the bank's expected revenue from the sale? (Choose the closest option.)
A) $466, 667
B) $400, 000
C) $300, 000
D) $420, 000
E) $377, 778

Answers

Answer:

First Fiddler's Bank

If First Fiddler's sells the house by means of a second-price, sealed-bid auction (Vickrey auction), the bank's expected revenue from the sale is:

A) $466, 667.

Explanation:

a) Data and Calculations:

Probability      Property Value                       Expected Value

1/3                       $700,000                           $233,333 ($700,000 * 1/3)

1/3                         400,000                              133,333 ($400,000 * 1/3)

1/3                        300,000                              100,000 ($300,000 * 1/3)

Bank's expected revenue from the sale = $466,666

b) The bank's expected revenue is calculated as the product of the possible revenue outcomes and their probabilities.  Then the dividends are added up to arrive at the expected revenue.

Marigold Company produces one product, a putter called GO-Putter. Marigold uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $850,000 comprised of $300,000 of variable costs and $550,000 of fixed costs. Marigold applies overhead on the basis of direct labor hours. During the current year, Marigold produced 81,800 putters, worked 97,800 direct labor hours, and incurred variable overhead costs of $173,825 and fixed overhead costs of $642,300.

Required:
Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.

Answers

Answer:

Marigold Company

Predetermined variable overhead rate:

= $3 per dlh

Predetermined fixed overhead rate:

= $5.50 per dlh

Explanation:

a) Data and Calculations:

Direct labor hour to produce one GO-Putter = 1 hour

Production capacity for GO-Putter = 100,000 units per year

Budgeted overhead costs:

Total overhead at normal capacity = $850,000

Variable overhead costs = $300,000

Fixed overhead costs = $550,000

Total estimated direct labor hours = 100,000 dlh (100,000 units * 1 hour)

Overhead application basis = Direct labor hours

Actual results:

Units of GO-Putters produced = 81,800

Direct labor hours used = 97,800

Variable overhead costs = $173,825

Fixed overhead costs = $642,300

Predetermined variable overhead rate:

= $300,000/100,000 = $3 per dlh

Predetermined fixed overhead rate:

= $550,000/100,000 = $5.50 per dlh

Use the following selected data from Business Solutions’s income statement for the three months ended March 31, 2020, and from its March 31, 2020, balance sheet to complete the requirements.



Computer services revenue $ 29,466
Net sales (of goods) 20,820
Total sales and revenue 50,286
Cost of goods sold 14,424
Net income 20,709
Quick assets 89,224
Current assets 97,736
Total assets 123,672
Current liabilities 855
Total liabilities 855
Total equity 122,817

Required:
1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio.
2. Compute the current ratio and acid-test ratio.
3. Compute the debt ratio and equity ratio.
4. What percent of its assets are current? What percent are long term?

Answers

Answer:

1. Gross margin with service revenue

Gross margin = Total revenue- Cost of good sold

Gross margin = 50,286 - 14,424

Gross margin = $35,862

Gross margin ratio = 34498/50,286 *100

Gross margin ratio = 68.60%

Gross margin without service revenue

Gross margin = Net (good) sale - Cost of good sold

Gross margin = 20,820 - 14,424

Gross margin = $6,396

Gross margin ratio = 6,396/20,820*100

Gross margin ratio = 30.72%

Profit margin ratio = 20,709/50,286*100

Profit margin ratio = 41.18%

2. Current ratio = Current assets/Current liabilities

Current ratio = 97,736/855

Current ratio = 114:1

Acid test ratio = Quick assets/current liabilities

= 89,224/855

= 104 : 1

3. Debt ratio= Current liabilities/total assets

Debt ratio= 855/123,672

Debt ratio= 0.0069134

Debt ratio= 0.69%

Equity ratio= Total equity/total assets

Equity ratio= 122,817/123,672

Equity ratio= 0.993087

Equity ratio= 99.31%

What is one step in identifying the main idea of a text?

Group of answer choices

Determine what the text says about the topic

Go to the glossary and find words related to the topic

Look for the lesson the author wants the reader to learn

Use context clues to understand the meaning of new words

Answers

Answer:

i believe the first option " determine what the text says about the topic" might be the correct answer

Answer: the answer is c

Explanation:

I am way too late but i took the same test

Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables:

May 24 Sold merchandise on account to Old Town Cafe, $19,400. The cost of goods sold was $14,000.
Sept. 30 Received $4,100 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible.
Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $15,300 cash in full payment.

Answers

Answer:

Zippy Interiors Company

Journal Entries:

May 24 Debit Accounts receivable (Old Town Cafe) $19,400

Credit Sales revenue $19,400

To record the sale of goods on account.

Debit Cost of goods sold $14,000

Credit Inventory $14,000

To record the cost of goods sold.

Sept. 30 Debit Cash $4,100

Debit Allowance for Uncollectible Accounts $15,300

Credit Accounts receivable (Old Town Cafe) $19,400

To record the receipt of cash and write-off of balance as uncollectible.

Dec. 7 Debit Accounts receivable (Old Town Cafe) $15,300

Credit Allowance for Uncollectible Accounts $15,300

To revise the previously written-off uncollectible account.

Debit Cash $15,300

Credit Accounts receivable (Old Town Cafe) $15,300

To record the receipt of cash in full settlement of account.

Explanation:

a) Data and Calculations:

May 24 Accounts receivable (Old Town Cafe) $19,400 Sales revenue $19,400  Cost of goods sold $14,000 Inventory $14,000

Sept. 30 Cash $4,100 Allowance for Uncollectible Accounts $15,300 Accounts receivable (Old Town Cafe) $19,400

Dec. 7 Accounts receivable (Old Town Cafe) $15,300 Allowance for Uncollectible Accounts $15,300

Cash $15,300 Accounts receivable (Old Town Cafe) $15,300


How do credit
scores play a role
in the inequity (a
lack of fairness
or justice) that
exists in our
society?

Answers

Answer: In response to aggressive marketing by the “big three” multinational credit bureaus – Equifax, Experian and TransUnion – employers, landlords and insurance companies now use credit reports and scores to make decisions that have major bearing on our social and economic opportunities. These days, your credit history can make or break whether you get a job or apartment, or access to decent, affordable insurance and loans. Credit reports and scores are not race neutral. Rather, they embed existing racial inequities in our credit system and economy – to the point that a person’s credit information serves as a proxy for race. For decades, banks have systematically redlined black and Latino neighborhoods, refusing to make conventional loans or locate branches in non-white and lower-income areas, notwithstanding laws that obligate banks to meet the credit needs of all communities they serve, consistent with safe and sound banking operations. Thanks to financial services deregulation and the advent of asset-backed securitization, a multi-billion dollar “fringe” financial system has filled the void, characterized by high-cost, destabilizing products and services, from payday loans to check-cashers – which banks typically also own or finance.

Explanation:

Adison Winery had beginning long-term debt of $37,761 and ending long-term debt of $43,118. The beginning and ending total debt balances were $46,693 and $51,620, respectively. The company paid interest of $4,201 during the year. What was the company's cash flow to creditors

Answers

Answer:

See below

Explanation:

The company's cash flow to creditors is the total amount of money available to be paid to creditor. It is a cash flow because the money goes out of the company in order to be paid to creditors

Therefore, the company's cash flow to creditors is computed as;

= Interest paid - (Ending long term debt - Beginning long term debt)

= $4,201 - ($43,118 - $37,761)

= $4,201 - $5,357

= -$1,156

Hence, operating cash flow to creditors is -$1,156

One day, while Barbara was parking her car at the mall, she backed into another car. She got out of her car to see what happened. The other driver was not there at the time. Barbara could not see any damage, so she continued on her way. Which of the following statements is true about this situation? Because there was no obvious damage, Barbara has no liability. Barbara should have left a note for the other driver. Barbara’s action is an example of a hit-and-run. Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.

Answers

Answer: Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.

Explanation:

Hit and run occurs when there's a traffic collision with another car or human being and the person who caused the collision doesn't stop and therefore doesn't provide necessary information details which are required by law to the other person affected.

With regards to the scenario discussed in the question, Barbara should have left a note for the other driver and Barbara’s action is an example of a hit and run.

She should have left a note which will consist of details of how she can be reached in case there's further damage on the car.

Select the correct answer from each drop-down menu.
Which functions of management do manufacturing and service businesses use to maximize their operations?
Manufacturing and service businesses use the four management functions—planning,
,
, and controlling—to increase the productivity of their operations.

Answers

Answer:

organising and staffing

Explanation:

Answer:

Organizing and staffing

Explanation:

Plato/Edmentum

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