Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment. Select one: a. test b. test c. test d. test
Answers
Answer:
The answer is "[tex]\$ 137,000[/tex]"
Explanation:
Please find the complete question in the attached file.
Commercial sector contribution margin
[tex]=\$137,000[/tex]
Margin per unit of contribution = sales price – Unit cost variables
Margin of Contributions = Revenue Sales - Fixed expenses
Aerospace industry variable costs
[tex]=\$280,000- \$143,000 =\$ 137,000[/tex]
Related Questions
Projected free cash flows should be discounted at the firm's weighted average cost of capital to find the value of its operations. True False
Answers
Answer:
True
Explanation:
Projected free cash flows should be discounted at the firm's weighted average cost of capital to find the value of its operations.
Free Cash flow is refereed to all cash available for distributions after all obligations are taken into account.
So free cash flow from the planning period and representative period should be discounted back using firm's weighted average cost of capital to find the value of its operations.
If something happens to alter the quantity supplied at any given price, then a. the supply curve shifts. b. we move along the supply curve. c. the supply curve becomes flatter. d. the supply curve becomes steeper.
Answers
Answer:
B
Explanation:
When they act as a profit-maximizing cartel, the total industry profit in the flowers market is per day. Suppose the flowers each company produces are regarded as perfect substitutes, such that if either company charged a price lower than the other, that company would receive all the business and profits in the industry. If both firms attempt to undercut each other, however, the result would be pricing at marginal cost and zero profit for both firms. The two firms intend to operate together in this market indefinitely, and at the beginning of each day, both firms individually choose whether to continue charging the collusive price. A firm that undercuts in a given month will receive (almost) the entire monopoly profit in that period, but no profit in any future periods. If the probability that both firms will continue operating and charging the collusive price in the next period is 0.60, then the expected stream of profits for one firm in the collusive equilibrium is . Tacit collusion is therefore in this scenario. Suppose a third firm with the exact same costs and similarly substitutable flowers enters the market. If this firm joins the cartel, the expected stream of profits for an individual firm is now (again assuming a probability of 0.60 that production occurs in the next period). In this case, a tacit collusive agreement is
Answers
Answer:
Total industry profit is $32 per day.
Tacit collusion is better in this situation
Expected profit in collusive equilibrium is $23.7
Tacit collusive agreement is not beneficial.
Explanation:
When the firms do not collude the total industry profit is $32 per day whereas if the firms collude the profits will decline to $23. This clearly shows that tacit collusion agreement is not beneficial for both the firms.
A put option that expires in six months with an exercise price of $45 sells for $2.34. The stock is currently priced at $48, and the risk-free rate is 3.5 percent per year, compounded continuously. What is the price of a call option with the same exercise price
Answers
Answer: $6.12
Explanation:
The price of a call option with the same exercise price will be calculated thus:
According to Put-Call Parity, it should be noted that the Call Price will be:
= Put Price + Stock Price - [Exercise Price × e ^-(r × t)]
= $2.34 + $48 - [$45 × e ^ -[0.035 * (6/12)]]
= $50.34 - [$45 × 0.9827]
= $50.34 - $44.22
= $6.12
Therefore, the price is $6.12
On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $67,000 and $1,075, respectively. During 2022, Larry's wrote off $2,200 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,300 at December 31, 2022. Bad debt expense for 2022 would be
Answers
Answer:
$6,425
Explanation:
The computation of the bad debt expense for the year 2022 is given below;
Given that
Beginning allowance for uncollectible accounts = $1,075
Accounts written-off = $2,200
Now
Unadjusted balance of allowance for uncollectible accounts is
= Beginning allowance for uncollectible accounts - Accounts written-off
= $1,075 - $2,200
= -$1,125
And, the Ending balance of allowance for uncollectible accounts is $5,300
So,
Bad debt expense is
= Ending balance of allowance for uncollectible accounts - Unadjusted balance of allowance for uncollectible accounts
= $5,300 - (-$1,125)
= $6,425
Why would anyone in their right mind buy a brand new car in the spring when they know that new car models will appear in late summer and early fall and the dealers will use?
A) markdowns to move that old inventory
B) information systems to move that old inventory
C) pull systems to move that old inventory
D) lost sales to move that old inventory
Answers
Answer:
A) markdowns to move that old inventory
Explanation:
An inventory is an accounting term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.
When new car models appear in late summer and early fall, the dealers will use markdowns to move the old inventory.
A markdown price can be defined as the reduction in the original selling price of a good or service, in order to increase the level of sales. Also, it's used to describe a fall in the value of an asset.
Basically, a markdown is commonly used by businesses to stimulate the demand for their goods and services at a reduced price.
On the other hand, a mark-up price is simply the difference between the cost price of a good (product) or service and its selling price.
A firm has expected EBIT of $910, debt with a face and market value of $2,000 paying an 8.5% annual coupon, and an unlevered cost of capital of 12%. If the tax rate is 21%, what is the value of the equity
Answers
Answer: $4410
Explanation:
Firstly, the value of the levered firm will be:
= EBT( 1- Tax) / Unlevered cost of capital + Debt Value ( Tax Rate)
= 910(1 - 21%) / 12% + 2000(21%)
= 910( 1 - 0.21)/0.12 + 2000(0.21)
= 5990 + 420
= 6410
Then, the value of equity will be:
= VAlue of Firm - Value of Debt
= $6410 - $2000
= $4410
If the Federal Reserve conducts a $10 million open-market sale and the reserve requirement is 20%, the maximum change in the money supply is: a decrease of $10 million. a decrease of $8 million. an increase of $10 million. a decrease of $50 million.
Answers
Answer:
a decrease of $50 million.
Explanation:
Calculation to determine what the maximum change in the money supply is:
Using this formula
Maximum change in the money supply=Federal Reserve /Reserve requirement
Let plug in the formula
Maximum change in the money supply=$10/20%
Maximum change in the money supply=$50 million Decrease
Therefore the maximum change in the money supply is: a decrease of $50 million.
Flynn Company's monthly bank statement showed the ending balance of cash of $18,500. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,500, outstanding checks of $2,000, a NSF check of $700, bank service charges of $30 and the EFT from a customer in payment of the customer's account of $1,500. Use the information above to answer the following question. What journal entry should be recorded by Flynn Company for the EFT
Answers
Answer:
Flynn Company
Journal Entry
Account Titles Debit Credit
Cash $1,500
Accounts Receivable $1,500
To record the direct credit through EFT on account.
Explanation:
a) Data and Analysis:
Ending balance according to bank statement = $18,500
Bank reconciliation adjustment for:
Deposit in transit = $1,500
Outstanding checks = $2,000
NSF check = $700
Bank Charges = $30
EFT (Electronic Fund Transfer) = $1,500
Analysis:
Cash $1,500 Accounts Receivable $1,500
Companies HD and LD have identical tax rates, total assets, and return on invested capital (ROIC), and their ROIC exceeds their after-tax cost of debt, (1-T) r d. However, Company HD has a higher debt ratio and thus more interest expense than Company LD. Which of the following statements is correct?
A) company hd has a lower roa than company ld.
B) company hd has a lower roe than company ld.
C) the two companies have the same roa.
D) the two companies have the same roe.
E) company hd has a higher net income than company ld.
Answers
Answer: A) company hd has a lower ROA than company ld.
Explanation:
Company HD has more debt than Company LD which is why they have a higher interest expense. Interest expense is deducted from revenue to reach net profit so Company HD will have a lower profit than Company LD.
Return on Assets is calculated by dividing Net Income by Total assets. With Company HD having a lower net income, it will also have a lower ROA as a result seeing as the numerator will be lower than that of company LD.
Entreprenewship is a process of
to
birth
to
an
entreprise. Discuss
Answers
Answer:
Entrepreneurship is a process of giving birth to an enterprise with example. ... “An entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation.” -Joseph Schumpeter Entrepreneur is the person responsible for setting up a business or an enterprise.
Explanation:
thank me later
The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals reflects the
Answers
Answer:
The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals reflects the marketing concept.
Explanation:
The marketing concept is fascinated with the idea of satisfying the customer's wants by producing goods to solve the customer's problem.
The marketing notion states that a business should attempt to meet client wants while pursuing its objectives.
This implies that the marketing concept is the idea that an organization should strive to satisfy customer needs while trying to achieve its goals.
Therefore, the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals reflects the marketing concept.
describe the importance of administrative office management
Answers
Answer:
Office management helps to maintain a close relationship between different department of people. It regularly supplies order,command and instruction to different people.It oerformsvarious function like planning , organising,controling, staffing,supervising, motivating,and effective leadership.
Explanation:
i hope this will help you
Những nhân tố ảnh hưởng đến hành vi mua hàng của người tiêu dùng là gì
Answers
Nhận thức, động cơ, học tập, niềm tin và thái độ là tất cả các yếu tố tâm lý ảnh hưởng đến việc mua hàng của người tiêu dùng. Quá trình mọi người lựa chọn và giải thích thông tin để đưa ra quyết định mua hàng được gọi là nhận thức.
why is price discrimination not possible under perfect market conditions
Answers
Price discrimination is not possible under perfect market conditions due to availability of many firms in the market which restrict to capture of the market.
What is Price discrimination?Price discrimination is a technique to maximize the profit of the organization. In price discrimination, a similar product will be sold in different markets, in this case, the consumer will move to the lowest price or either with the quality and tries to negotiate.
In perfect market competition, there is a large number of firms are available so sellers can not discriminate the prices of products and services as many options or alternatives are available to Buyers who sell similar products.
This market structure provides easy entry and exit to the market as they are having no barriers due to having the least competition.
Learn more about Perfect market conditions, here:
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To avoid potential liability for misconduct in corporate operations, directors can refrain from reasonable supervision of work delegated to a. none of the choices. b. corporate employees. c. corporate officers. d. board committees.
Answers
Answer:
c. corporate officers.
Explanation:
In the case when the potential obligation is to be avoided for any misconduct while having operations in the corporate so the directors could refrain from the supervision of the delegated work to the corporate officers so that the work could not harm that result in help in attains the goals & objectives
Therefore the option c is correct
Metlock, Inc. uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: Units Per unit price Total Balance, 1/1/2017 270 $5.0 $1350 Purchase, 1/15/2017 140 ..5 672 Purchase, 1/28/2017 140 ..5 700 An end of the month (1/31/2017) inventory showed that 220 units were on hand. How many units did the company sell during January 2017?
Answers
Answer:
330 units
Explanation:
Particulars Units
Opening 270 Units
Add: Purchases 140 Units
Add :Purchases 140 Units
Total 550 Units
Less: Closing 220 Units
Sales 330 Units
So, the total units the company sold during January 2017 is 330 units.
The capital budgeting committee of the Caldwell Pipe Corporation is evaluating the possibility of replacing its old pipe-bending machine with a more advanced model. Information on the existing machine and the new model follows: Existing machine New machine Original cost $200,000 $400,000 Market value now 80,000 Market value in year 5 0 20,000 Annual cash operating costs 40,000 10,000 Remaining life 5 yrs 5 yrs Refer to Caldwell Pipe Corporation. If the company buys the new machine and disposes of the existing machine, corporate profit over the five-year life of the new machine will be ________ than the profit that would have been generated had the existing machine been retained for five years. Select one: a. $230,000 lower b. $150,000 lower c. $150,000 higher d. $170,000 lower
Answers
Answer:
c. $150,000 higher
Explanation:
Operating cost of old machine = $40,000 per year
For 5 years, $40,000*5 years = $200,000
Operating cost of new machine = $10,000 per year
For 5 years, $10,000*5 = $50,000
Operating cost of new machine ($50,000) < ($200,000) Operating cost of the old machine. Thus, this will have a positive effect of $150,000 ($200,000-$50,000) on the corporate profit.
makes their first monthly payment (including principal and interest), what amount will they record into their interest expense account
Answers
Answer:
The amount Highest Cost Contractors will record into their interest expense account is $60.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The Highest Cost Contractors, Inc. took out an installment loan on 11/1 in the amount of $12,000 for 61 months with an annual interest rate of 6%. On 11/31 when Highest Cost Contractors makes their first monthly payment (including principal and interest), what amount will they record into their interest expense account?
The explanation of the answer is now provided as follows:
The amount of interest can be calculated as follows:
Amount of interest to record = Amount of installment loan * (Annual interest rate / Number of months in a year)
Amount of interest to record = $12,000 * (6% / 12)
Amount of interest to record = $60
Therefore, the amount Highest Cost Contractors will record into their interest expense account is $60.
viết lý do chọn đề tài hay về chiến lược xúc tiến của công ty grab
Answers
Answer:
đồ án phân tích việc thực hiện chiến lược marketing của Grab tại Việt Nam ... soát ... lược giá (Price) 18 1.3.3 Chiến lược phân phối .20 1.3.4 Chiến lược Xúc tiến hỗn ... lược cấp công ty Tổng tài sản Grab Singapore 2014 - 2015 Doanh thu Grab ... lý Trong trình học tập hướng dẫn thầy Đỗ Thanh Tùng em hoàn thành đề tài .
How should you ideally start a negotiation discussion?
A.
displaying how sharp and aggressive you can be in negotiations
B.
being unbiased and open-minded
C.
revealing your interest in the product
D.
revealing your budget and the highest price you can pay
Answers
Answer:
the answer is c
Explanation:
to get the convo started you should pin point what it is exactly what you like
Sally has a credit card balance of $500 . The credit card company charges a nominal interest rate of 16 percent a year on unpaid balances. The inflation rate is 5 percent a year. Calculate the real interest rate that Sally pays the credit card company.
Answers
Answer:
10.48%
Explanation:
Real interest rate = (1 + nominal interest rate) / (1 + inflation rate) - 1
1.16/1.05 - 1 = 10.48
Nominal interest rate is real interest rate plus inflation rate
Real interest rate is interest rate that has been adjusted for inflation
Brodrick Company expects to produce 21,000 units for the year ending December 31. A flexible budget for 21,000 units of production reflects sales of $504,000; variable costs of $63,000; and fixed costs of $141,000. Assume that actual sales for the year are $595,600 (26,900 units), actual variable costs for the year are $114,000, and actual fixed costs for the year are $133,000. Prepare a flexible budget performance report for the year.
Answers
Answer:
Brodrick Company
Flexible Budget Performance Report for the year ended December 31
Flexible Actual Variance
Budget Budget
Sales unit 21,000 26,900 5,900 units F
Sales revenue $645,600 $595,600 $50,000 U
Variable costs 80,700 114,000 33,300 U
Fixed costs 141,000 133,000 8,000 F
Total costs $221,700 $247,000 $25,300 U
Profit $423,900 $348,600 $75,300 U
Explanation:
a) Data and Calculations:
Flexible Budget for 21,000 units
Sales revenue = $504,000
Variable cost = $63,000
Fixed costs = $141,000
Flexing the budget with 26,900 units:
Sales revenue = $645,600 ($504,000/21,000 * 26,900)
Variable costs = $80,700 ($63,000/21,000 * 26,900)
Contingency planning is also known as Group of answer choices a trend analysis. scenario planning and scenario analysis. organizational opportunities. strategic planning. scenario goal-setting and plans.
Answers
Answer:
scenario planning and scenario analysis.
Explanation:
Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
Contingency planning is also known as scenario planning and scenario analysis.
Basically, a contingency planning is a type of plan that is typically designed by a business firm to take into account a possible future circumstance or event based on a forecast.
On June 25, Ritts Roofing extended an offer of $250,000 for land that had been priced for sale at $300,000. On July 9, Ritts accepted the seller’s counteroffer of $275,000. On October 1, the land was assessed at a value of $280,000 for property tax purposes. On December 22, Ritts was offered $305,000 for the land by a national retail chain. At what value should the land be recorded in Ritts Roofing's records? $ fill in the blank 1
Answers
Answer:
$275,000
Explanation:
The computation of the value that should the land be recorded is shown below:
= Value at which rits accepted the counteroffer of the seller
= $275,000
Hence, the alue that should the land be recorded is $275,000
Basically it records the cost value as per the cost concept
The same should be considered
Byrde Company purchased a truck. The seller asked for $11,000, but Byrde paid only $10,000 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $15,000. What amount does Byrde record on its financial statements for the truck
Answers
Answer:
Byrde Company
The amount that Byrde should record on its financial statements for the truck is:
= $10,000.
Explanation:
a) Data and Calculations:
Seller's asking price = $11,000
Amount paid after negotiation = $10,000
Fair price for the truck = $15,000
b) The amount to be recognized or recorded by Byrde on its financial statements for the truck is the cost price, that is, the amount that Byrde paid actually for the truck. The fair price cannot be recognized, since GAAP does not allow for noncurrent assets to be recognized at their fair prices. The historical cost is objective and verifiable, unlike the $15,000 fair price or the seller's asking price.
The amount that should be recorded on the financial statement for the truck is $10,000.
Given that,
The asked value is $11,000.The Company paid the amount of $10,000.The great deal amount should be $15,000.Since the truck was purchased for $10,000 so the same amount should be recorded on the financial statements.
Therefore we can conclude that the amount that should be recorded on the financial statement for the truck is $10,000.
Learn more about the financial statement here: brainly.com/question/14951563
The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $163,000 Cash dividends declared for the year 50,800 Net income for the year 98,000 What is the ending balance for retained earnings?a. $261,000.
b. $14,200.
c. $210,200.
d. $282,000.
e. $112,200.
Answers
Answer:
$210,200
Explanation:
The retained earning at the beginning of the year is $163,000
The cash dividend is $50,800
The net income is $98,000
Therefore the ending balance for retained earning can be calculated as follows
= 163,000+98,000-50,800
= 261,000-50800
= 210,200
Hence the ending balance for retainerd earnings is $210,200
Assume the two countries specialize based on their comparative advantage. If the two countries engage in trade and one unit of food is exchanged for 5 units of clothing, will these terms of trade be mutually beneficial?
Answers
Answer:
None of the country have comparative advantage in producing food.
Explanation:
Marland and Teckana are the two countries who produces food and clothing. Marland can produce 20 units of food or 120 units of clothing while Teckana can produce 20 units of food or 80 units of clothing. Since both countries can produce same units of food neither country has comparative advantage in producing food. If the countries engage in exchange for 1 unit of food for 5 units of clothing Teckana country can benefit from the trade because it will get 100 units of clothing for 20 units of food.
Preferred stock has a par (face) value of $80. The annual dividend is $6.00 per share. Investors in this preferred stock have a required rate of return equal to 8%. Compute the current price of a share of the preferred stock.
Round to the second decimal place.
Answers
Answer: $75
Explanation:
Using the Gordon Growth Model:
Price of stock = Next year dividend / (Required return - growth rate)
Growth rate is 0% as dividend does not change per year.
Price of stock = 6 / 8%
= $75
Use this information for Train Corporation to answer the question that follow. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $46,100 $29,000 Direct operating expenses 27,200 20,600 Sales 94,500 67,500 Interest expense $2,200 General overhead 19,400 Income tax 4,200 The net income for Train Corporation is:__________.
a. $13,300
b. $86,900
c. $70,900
d. $39,100
Answers
Answer:
a. $13,300
Explanation:
The computation of the net income for train corporation is given below:
= Sales - cost of goods sold - direct operating expense - interest expense - general overhead - income tax
= $94,500 + $67,500 - $46,100 - $29,000 - $27,200 - $20,600 - $2,200 - $19,400 - $4,200
= $13,300
Hence, the correct option is a.