Answer:
Break-even point (dollars)= $6,000
Explanation:
Giving the following information:
Selling price per unit $ 2.00
Variable production cost per unit $ 0.30
Fixed production cost $ 3,000
Sales commission per unit $ 0.20
Fixed selling expenses $ 1,500
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Fixed costs= 3,000 + 1,500= 4,500
Unitary variable cost= 0.3 + 0.2= $0.5
Break-even point (dollars)= 4,500 / [(2 - 0.5) / 2]
Break-even point (dollars)= $6,000
If $800 is borrowed at 8% interest, find the amounts due at the end of 4 years if the interest is compounded as follows. (Round your answers to the nearest cent.)(i) annually(ii) quarterly(iii) monthly(iv) weekly
Answer:
(i) $133.12
(ii) $297.6
(iii) $300.8
(iv) $301.6
Explanation:
From the compounding formula;
Future value = Present value [tex](1+\frac{r}{m}) ^{mn}[/tex]
where r is the rate, m is the number of payment per year, and n is the number of years.
Interest = future value - present value
Given that present value = $800, r = 8%, n = 4 years.
(i) annually,
m = 1, so that;
Future value = 800[tex](1.08)^{4}[/tex]
= $933.12
Interest = $933.12 - $800
= $133.12
(ii) quarterly,
m = 3, so that;
Future value = 800[tex](1+\frac{0.08}{3}) ^{(4x3)}[/tex]
= 800(1.372)
= $1097.6
Interest = $1097.6 - $800
= $297.6
(iii) monthly,
m = 12, so that;
Future value = 800[tex](1+\frac{0.08}{12}) ^{(4x12)}[/tex]
= 800(1.376)
= $1100.8
Interest = $1100.8 - $800
= $300.8
(iv) weekly,
m = 54, so that;
Future value = 800[tex](1+\frac{0.08}{54}) ^{(4x54)}[/tex]
= 800(1.377)
= $1101.6
Interest = $1101.6 - $800
= $301.6
West Side Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $7.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 16 percent, what is the current share price?
a. $63.27.
b. $61.40.
c. $68.82.
d. $65.17.
e. $60.11.
Answer:
$77.81
Explanation:
We are given that West Side Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $7.50.
Required rate - 16%
Growth rate = 6%
We are supposed to find the current share price
Formula :[tex]P_0=\sum_{t=0}^{T}\frac{D_T}{(1+r)^t}+\frac{D_{T+1}}{r-G}(1+r)^{-T}[/tex]
D = Dividends
t = time
r = required rate
G= Growth rate
Substitute the values in formula :
[tex]P_0=\frac{16}{(1+0.16)^1}+\frac{12}{(1+0.16)^2}+\frac{11}{(1+0.16)^3}+\frac{7.50}{(1+0.16)^4}+\frac{7.50(1+0.06)}{0.16-0.06}(1+0.16)^{-4}\\P_0=77.81\\[/tex]
Lusk Corporation produces and sells 15,500 units of Product X each month. The selling price of Product X is $25 per unit, and variable expenses are $19 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $105,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice $43,000 $12,000 ($43,000) ($62,000)
Answer:
($62,000)
Explanation:
Calculation for the monthly financial advantage (disadvantage) for the company of eliminating this product
Keep Product X Drop Product X Difference
Sales $387,500 $0 $(387,500)
($25 per unit *15,500=$387,500)
Variable expenses $294,500 $0 $294,500
($19 per unit*15,500=$294,500)
Contribution margin $93,000 $0 $(93,000)
Fixed expenses $105,000 $74,000 $31,000
Net operating income (loss)$(12,000)$(74,000)$(62,000)
Therefore the monthly financial advantage (disadvantage) for the company of eliminating this product will be decrease in Net operating amount of ($62,000).
The estimated current purchasing price of a discount bond with a face value of $ and a yield to maturity of
Answer:
The numbers are missing, so I looked for a similar question:
The estimated current purchasing price of a discount bond with a face value of $2,000 and a yield to maturity of 7% is ...
to determine the market price of discount bonds, we can use the following formula:
market price = face value / (1 + yield to maturity)
market price = $2,000 / (1 + 7%) = $2,000 / 1.07 = $1,869.16
Assume real per capita GDP in North Metropolania is $4,000 while in East Quippanova it is $1,000. The annual growth rate in North Metropolania is 2.33%, while in East Quippanova it is 7%. How many years will it take for East Quippanova to catch up to the real per capita GDP of North Metropolania?
a. about 10 years
b. about 30 years
c. about 40 years
d. about 120 years
e. East Vice City will never be able to catch up with North Midgar.
What will the income of the two countries be when it is equal?
Answer:
B
Explanation:
Rule of 70
70/2.33=30.04
Income will be $8,000
Type the correct answer in the box. Spell all words correctly. Who plans, codes, and creates web pages? plan, code, and create web pages.
Answer:
Web Developer
Explanation:
Usually, it is a team of experienced individuals that come together to come up with a web page design and make it a reality. This includes designing, planning, coding, and implementing. Usually, these individuals have a general job title of Web Developer. Within this job title, the individuals are usually split up into different subcategories that focus on specific aspects such as Front-End Web designer, Back-End developer, Web Server Management, etc. Each of these focuses on a specific aspect of the webpage, usually due to having more experience with that part of the development process.
Answer:
web developers
Explanation:
just took the test on plato
As a result of a thorough physical inventory, Coronado Company determined that it had inventory worth $321000 at December 31, 2020. This count did not take into consideration the following facts: Walker Consignment currently has goods worth $46300 on its sales floor that belong to Coronado but are being sold on consignment by Walker. The selling price of these goods is $75000. Coronado purchased $21100 of goods that were shipped on December 27, FOB destination, that will be received by Coronado on January 3. Determine the correct amount of inventory that Coronado should report.
Answer:
The correct cost of inventory that Coronado should report is $367300
Explanation:
The goods sent on consignment still belong to the consignor until they are sold off by the consignee. So, the consignor should add the unsold consignment goods in its inventory. Thus we will add the cost of goods sent on consignment to the value of inventory.
Value of inventory = 321000 + 46300 = $367300
The goods purchased by Coronado on 27 December with FOB destination should not be added to the cost of inventory as with FOB destination terms, the goods do not belong to the buyer until they are delivered to their destination by the seller.
Thus, the correct cost of inventory that Coronado should report is $367300
Bronski Corporation manufactures two products, Simple and Complex. The following information was gathered: Simple Complex Selling price per unit $37.00 $26.00 Variable cost per unit $32.00 $22.00 Total fixed costs are $18,000. Assume demand for either product exceeds the factory's capacity. It takes one hour of production time to make Simple and two hours to make Complex. The annual capacity of the plant is 10,000 hours. How many units of Simple and Complex should Bronski Corporation produce and sell to maximize profits
Answer:
The answer is "Option A".
Explanation:
Please find the correct question and its solution file.
A car dealer carries out the following calculations. List price $ 5,368.00 Options $ 1,625.00 Destination charges $ 200.00 Subtotal $ 7,193.00 Tax $ 431.58 Less trade-in $ 2,932.00 Amount to be financed $ 4,692.58 15% interest for 48 months $ 2,815.55 Total $ 7,508.13 MONTHLY PAYMENT $ 156.42 What is the annual percentage rate
Answer and Explanation:
Given interest rate =10%
Repayment months= 48 months,
Interest rate =10% for 48 monthsv
To calculate annual percentage rate,
The annual percentage rate = 2 * repayment months* interest rate divided by repayment months + 1
Annual percentage rate= 2*48*10%/48+1
=2*48*0.10/49
= 96*0.10/49
= 9.6/49= 0.1959= 19.59%
Therefore annual percentage rate = 19.59%
An investment offers $9,200 per year for 17 years, with the first payment occurring 1 year from now. Assume the required return is 12 percent. Requirement 1: What is the value of the investment today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 2: What would the value be if the payments occurred for 42 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 3: What would the value be if the payments occurred for 77 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 4: What would the value be if the payments occurred forever? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $
Answer:
1.
Present value = $65500.60053 rounded off to $65500.60
2.
Present value = $76009.84174 rounded off to $76009.84
3.
Present value = $76654.22671 rounded off to $76654.23
4.
PV of perpetuity = $76666.66667 rounded off to $76666.67
Explanation:
The payments from the investment can be classified as being an ordinary annuity as the payments made by the investment offer are of constant amount and occur at the end of the period, occur after equal intervals of time and are for a defined and finite time period except for the payments made in case of requirement 4. The formula to calculate the present value of annuity that will be used in requirement 1, 2 and 3 is attached.
1.
Present value = 9200 * [(1 - (1 + 0.12)^-17) / 0.12]
Present value = $65500.60053 rounded off to $65500.60
2.
Present value = 9200 * [(1 - (1 + 0.12)^-42) / 0.12]
Present value = $76009.84174 rounded off to $76009.84
3.
Present value = 9200 * [(1 - (1 + 0.12)^-77) / 0.12]
Present value = $76654.22671 rounded off to $76654.23
4.
If the payments occur for an infinite period of time, they can be classified as a perpetuity.
The formula to calculate the present value of perpetuity is as follows,
PV of perpetuity = Cash Flow / r
Where,
r is the required rate of return or discount rate
PV of perpetuity = 9200 / 0.12
PV of perpetuity = $76666.66667 rounded off to $76666.67
Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service. Analyze the factors that impact your choice of inputs to produce the chosen product or service. Examine the production decisions that you would make based on the analysis of the factors impacting the choice of inputs to produce the chosen product or service.
Answer:
The product is Organic and Inorganic Ice cream.
It will be sold from a high street location.
The focus is on the wholesale market.
The equipment consists of the following:
One unit of pasteuriser linked One unit of homogeniser One unit of cooler One unit of ageing vat One large batch freezerOne unit each of fruit–feeder and a ripple-pumpOne Blast Freezer and One Cold StoreAnother factor is labour. For a small-sized operation like ours, we don't need more than 3 staff:
Production and Quality Control executiveAccounting and Marketing executive and front desk officerThe size of labour is small because the company is small and is focused on wholesalers, not retailers. It also makes for good business sense to keep to a very lean Human Resource structure. Effectiveness and efficiency will be optimised with the use of technology.
Our choice to go wholesale stems from the fact that there is a huge gap for unbranded icecream. Because it is cheaper, people don't mind forgoing the big brands for an equally good cup or bucket of ice cream.
Cheers
Jasper Corp. has a selling price of $44, and variable costs of $25 per unit. When 14,600 units are sold, profits equaled $133,000. How many units must be sold to break-even?
A. 19,000
B. 12,000
C. 14,333
D. 5,000
Answer:
Break-even point in units= 7,600
Explanation:
Giving the following information:
Selling price= $44
Unitary variable cost= $25
When 14,600 units are sold, profits equaled $133,000.
First, we need to calculate the total fixed costs:
Fixed costs= Total contribution margin - net income
Fixed costs= 14,600*(44 - 25) - 133,000
Fixed costs= $144,400
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 144,400 / (44 - 25)
Break-even point in units= 7,600
Space Fuel Inc. is considering establishing a new propellant depot to provide space vehicles a refueling point in their trek to Mars. If placed in a LaGrange point, the depot could save $50,000K annually. The depot can be constructed for $200,000K today and will be used for a period of 10 years. It has a salvage value of $10,000K at the end of its useful life. The new depot will require an annual maintenance cost of $9,000K. Capital financing is available at 4.78% per semiannual period compounded monthly. Find the present worth.
Answer:
NPV = $55,894.45
Explanation:
the initial outlay of the project is $200,000
the salvage value is $10,000
useful life 10 years
annual costs $9,000
annual savings $50,000
luckily there are no taxes in space
we must determine the effective interest rate in order to be able to discount the future cash flows
(1 + 0.0478/6)¹² - 1 = 9.99%
the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000
net cash flow for year 10 = $41,000 + $10,000 = $51,000
using a financial calculator, the NPV = $55,894.45
At the current year-end, Simply Company found that its overhead was underapplied by $2,500, and this amount was not considered material. Based on this information, Simply should:
Answer:
Close to the cost of goods sold
Explanation:
Since in the question it is mentioned that the simply found that the overhead was underapplied by $2,500 that means the expected overhead is less than the actual one
So the same is to close to the cost of goods sold account i.e. expenses account
Therefore the simply should close the $2,500 of underapplied overhead to the cost of goods sold
Pharrell, Inc., has sales of $589,000, costs of $269,000, depreciation expense of $69,000, interest expense of $36,000, and a tax rate of 35 percent. The firm paid out $38,000 in cash dividends. What is the addition to retained earnings?
Answer:
$101,750
Explanation:
Pharell incorporation has a sales of $589,000
The cost is $269,000
The depreciation expense is $69,000
The interest expense is $36,000
The tax rate is 35 percent
The cash dividend paid out is $38,000
Therefore the additional retained earnings can be calculated as follows
= $589,000-$269,000-$69,000-$36,000
= $215,000
$215,000 × 35/100
$215,000 × 0.35
= $75,250
$215,000-$75,250-$38,000
= $101,750
Hence the additional retained earnings is $101,750
Sampson Industries has an annual plant capacity of 70,000 units; current production is 59,000 units per year. At the current production volume, the variable cost per unit is $26.00 and the fixed cost per unit is $4.80. The normal selling price of Sampson's product is $41.00 per unit. Sampson has been asked by Caldwell Company to fill a special order for 7,000 units of the product at a special sales price of $20.00 per unit. Caldwell is located in a foreign country where Sampson does not currently operate. Caldwell will market the units in its country under its own brand name, so the special order is not expected to have any effect on Sampson's regular sales. Read the requirementsLOADING.... Requirement 1. How would accepting the special order impact Sampson's operating income? Should Sampson accept the special order? Complete the following incremental analysis to determine the impact on Sampson's operating income if it accepts this special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Incremental Analysis of Special Sales Order Decision Total Order (7,000 units) Revenue from special order $140,000 Less expenses associated with the order: Less: Variable manufacturing cost 182,000 Contribution margin $(42,000) Less: Additional fixed expenses associated with the order – Increase (decrease) in operating income from the special order
Answer:
Sampson Industries
1. How would accepting the special order impact Sampson's operating income?
The acceptance of the special order will decrease Sampson's operating income by $42,000.
2. Should Sampson accept the special order?
No. Sampson should not accept the special order. It does not make any contribution in reducing the fixed costs. Instead, it decreases the net income. Special orders should be accepted when they add to the contribution in defraying the fixed costs, even if they do not add to the net income.
Explanation:
a) Data and Calculations:
Annual plant capacity = 70,000 units
Current production = 59,000
Variable cost per unit = $26.00
Fixed cost per unit = $4.80
Normal Selling price per unit = $41
Special order = 70,000
Price of special order = $20
Incremental Analysis of Special Sales Order Decision
Total Order (7,000 units)
Revenue from special order $140,000
Less expenses associated with the order:
Less: Variable manufacturing cost 182,000
Contribution margin $(42,000)
Less: Additional fixed expenses associated with the order –
Increase (decrease) in operating income from the special order ($42,000)
Why would an organization decide to use focal-point reviews instead of the less burdensome anniversary model for performance appraisals? And, in your opinion and based on your HR knowledge, which method is better?
Explanation:
In my opinion, the use of focal point reviews is more advantageous for an organization than the anniversary model for employee performance evaluations, since in the anniversary evaluation there is an annual performance evaluation, carried out on the employee's hiring date or at the end of the year, this model may be more complex due to the difficulty of organizing the evaluation of all employees, since there are different dates for hiring employees, which can mean a problem with the agenda that interferes with the evaluation.
Focal point reviews, on the other hand, are more advantageous because they can be carried out whenever there is an identification of reduced performance of employees, and allow managers to carry out integrated performance evaluations, which gives the advantage of eliminating some type of bias that compromises the fairness of the assessment. In the focal point reviews, there is an employee evaluation based on comparisons between employee performance, which ensures greater efficiency in evaluating and developing actions to improve employee performance.
Given a 4 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,600, $1,800, $1,800, and $2,100. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
$8,348.51
Explanation:
Computation of the year 6 future value of deposits
6 years Future value = $1,600 × (1 + 0.04)^5+ $1,800 × (1 + 0.04)^4+ $1,800 × (1 + 0.04)^3+ $2,100 × (1 + 0.04)^2
6 years Future value= $1,946.64 + $2,105.75 + $2,024.76 + $2,271.36
6 years Future value= $8,348.51
Therefore the year 6 future value of deposits will be $8,348.51
Suppose that a nation has a labor force of 100 people. In January, Amy, Barbara, Carine, and Denise are unemployed; in February, those four find jobs, but Evan, Francesco, George, and Horatio become unemployed. Suppose further that every month, the previous four who were unemployed find jobs and four different people become unemployed. Throughout the year, however, the same three people — Ito, Jack, and Kelley — continually remain unemployed because their skills are a poor match with employers' requirements. a. Calculate this nation's frictional unemploymentLOADING... rate. nothing% (Enter your response as a percentage rounded to two decimal places.)
Answer:
frictional unemployment rate = 4%
Explanation:
Ito, Jack, and Kelley fall under structural unemployment, meaning that they are unemployed because their skills do not match the requirements for current job openings.
Every month, other 4 people lose their jobs, but then find a new job next month (first Amy, Barbara, Carine, and Denise, then Evan, Francesco, George, and Horatio, and then 4 others). These people suffer from frictional unemployment, which refers to temporal transitions between jobs. These transactions may even be voluntary, i.e. people quitting their jobs in order to search for better jobs.
total frictional unemployment = 4 people
total labor force = 100 people
frictional unemployment rate = 4 / 100 = 4%
Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is _____, the third day is _____, and the fourth day is _____.
a. $40; $33.33; $25
b. $30; $20; $0
c. $30; $10; $10
d. $80; $100; $100
Answer: b. $30; $20; $0
Explanation:
Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is $30, the third day is $20, and the fourth day is $0.
The marginal cost is the extra cost per day of going to Dollywood.
Second day
Marginal cost = Second day price - First day
= 80 - 50
= $30
Third day
Marginal cost = Third day price - Second day
= 100 - 80
= $20
Fourth Day
Marginal cost = Fourth day price - third day
= 100 - 100
= $0
Acme-Jones Corporation uses a weighted-average perpetual inventory system. August 2, 40 units were purchased at $27 per unit. August 18, 24 units were purchased at $29 per unit. August 29, 42 units were sold. What was the amount of the cost of goods sold for this sale?
Answer:Cost of goods sold=$1,165.5
Explanation:
Using the weighted-average perpetual inventory system.
August 2 =40 units x $27per unit = $1080
August 18=24units x $29 per unit = $696
Weighted average cost per unit = (1080 + 696)/64 = $27.75per unit
Therefore, Cost of goods sold = $27.75 x 42 = $1,165.5
Neil and John both need $20,000 to clear off a mortgage payment after 10 years. Neil invests $15,000 at 3 percent per annum of simple interest for 10 years, and John invests $15,000 at 3 percent compound interest compounded annually for 10 years. Who would be able to repay the amount from this investment easily?
Answer:
John
Explanation:
Neil will have the following amount after ten years.
Simple interest is calculated using the formula,
I= p x r x t
where I= interest, P= principal amount, r = interest rate, t is time
for Neil interest will be= $15,000 x 3/100 x 10
=$15,000 x 0.03 x 10
=$4500
Neil will have principal + interest amount
=$4,500 + $15,000
=$19,500
John invested in a compound interest account.
The amount after ten years will be
The formula for compound interest is
FV = PV × (1+r)^n
where FV = Future Value
PV = Present Value
r = annual interest rate
n = number of periods
After ten years, John will have
Fv= $15,000 x (1 + 3/100)^10
Fv= $15,000 x (1.03)^10
FV =$15,000 x 1.34391
Fv = $15,158.75
John will be able to clear his mortgage.
John will be able to repay the amount from this investment easier than Neil.
Because Neil has invested in simple interest, his amount at the end of 10 years will be equal to the interest earned and the principal amount.
According to the problem:
P (principal) = $15,000, I = 3%=0.03 and t =10 years
Therefore, I = P x r x t = 15,000 x 0.03 x 10 = $4,500
The amount at the end of 10 years
= principal + interest
= 15,000 + 4,500
= $19,500
On the other hand, John has invested his $15,000 in 3 percent compound interest compounded annually for 10 years.
According to the problem: P
= $15,000
I
= 3% = 0.03
n
= 10
Therefore, according to the formula
M = P( 1 + i )n where M is the final amount at the end of the term, we have
M = 15,000(1+0.03)10
= 20,158.75 (approximately).
= $20,158.75
Therefore, John will be able to repay the debt from this investment easily, because Neil is $500 short of the required amount.
Whats y'alls fav basketball team?
Answer:
I think my favorite is the Los Angeles Lakers I haven't watch basketball in a while.
Explanation:
Mine is San Frisco 49ers, I love the colors and overall they are just a great team! hbu?
suppose you want to open a shoe company sugges names for this
Answer:
New Kick
Boundless
Brave Sole
Laced
Donghai transferred the following assets to Starling Corporation. Adjusted Basis Fair Market Value Cash $120,000 $120,000 Machinery 48,000 36,000 Land 108,000 144,000 In exchange, Donghai received 50% of Starling Corporation's only class of stock outstanding. The stock has no established value. However, all parties believe that the value of the stock Donghai received is the equivalent of the value of the assets she transferred. The only other shareholder, Rick, formed Starling Corporation five years ago. a.Donghai has a basis of $276,000 in the stock of Starling Corporation. b.Starling Corporation has a basis of $48,000 in the machinery and $108,000 in the land. c.Donghai has no gain or loss on the transfer. d.Starling Corporation has a basis of $36,000 in the machinery and $144,000 in the land.
Answer:
Option D
Explanation:
Starling Corporation has a basis of $36,000 in the machinery and $144,000 in the land.
Note: As Donghai transferred the assets to Starling Corporation. Option D is absolutely correct because Acquiring Company should record asset at fair value therefore Starling Corporation has to record machinery & Land at Fair value
You’ve borrowed $26,838 on margin to buy shares in Company BBYT, which is now selling at $42.6 per share. You invest 1,260 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. At what price will you receive a margin call?
Answer:
the price that received a margin call is $32.77
Explanation:
The computation of the price that received a margin call is shown below:
= Borrowed amount ÷(Number of shares - ( Number of shares × Maintenance margin %))
= $26,838 ÷ (1,260 shares - (1,260 × 35%))
= $32.77
Hence, the price that received a margin call is $32.77
We simply applied the above formula and the same is to be considered
Kayla Sampson, an antiques dealer from Mankato, Minnesota, received her monthly billing statement for April for her MasterCard account. The statement indicated that she had a beginning balance of $600, on day 5 she charged $150, on day 12 she charged $300, and on day 15 she made a $200 payment. Out of curiosity, Kayla wanted to confirm that the finance charge for the billing cycle was correct. (a) What was Kayla’s average daily balance for April without new purchases?
Answer: $493.3
Explanation:
Kayla's average daily balance for April without new purchases will be:
We should note that she has opening balance of $600 for 14 days without purchase, $400 balance for 16 days from April 15-30. This will be:
= [($600 × 14) + ($400 × 16)]/2
= ($8400 + $6400)/30
= $14800/30
= $493.3
What is the present value on January 1, 2016, of $30,000 due on January 1, 2021, and discounted at 12% compounded annually?What is the present value on July 1, 2016, of $8,000 due January 1, 2021, and discounted at 16% compounded quarterly?What is the amount of the present value discount (the difference between future value and present value) on $8,000 due at the end of 5 years at 10% compounded annually?
Answer:
1. Future Value = 30,000
Rate = 0.12
Annual period, NPER = 5
Present value, PV = PV(0.12, 5,0,-30,000 ,0)
Present value, PV = $17,022.81
2. Future value = 8,000
Quarterly rate = 16%/4 = 4%
Number of quarters, Nper = 4.5*4 = 18
Present value, PV = PV (4% , 18, 0, -8,000 , 0)
Present value, PV = $3,949.02
3. Future value = 8,000
Annual rate = 0.1
Annual period, Nper = 5
Present value, PV = PV(0.1, 5, 0, -8000, 0)
Present value, PV = $4,967.37
Present value Discount = 8,000 - 4,967.37
Present value Discount = $3,032.63
Answer:
1. The Present value on January 1, 2016 of $30,000 due on January 1, 2021 and discounted at 12% is:
$17,022.80
2. The present value on July 1, 2016 of $8,000 due January 1, 2021, and discounted at 16% compounded quarterly is:
$3,949.02
3. The amount of the present value discount (the difference between future value and present value on $8,000 due at the end of 5 years at 10% compounded annually is:
$3,032.63
Explanation:
You will need to invest $17,022.80 at the beginning to reach the future value of $30,000.00.
FV (Future Value) $30,000.00
PV (Present Value) $17,022.80
N (Number of Periods) 5.000
I/Y (Interest Rate) 12.000%
PMT (Periodic Payment) $0.00
Starting Investment $17,022.80
Total Principal $17,022.80
Total Interest $12,977.19
2. You will need to invest $3,949.02 at the beginning to reach the future value of $8,000.00.
FV (Future Value) $7,999.99
PV (Present Value) $3,949.02
N (Number of Periods) 18.000
I/Y (Interest Rate) 4.000%
PMT (Periodic Payment) $0.00
Starting Investment $3,949.02
Total Principal $3,949.02
Total Interest $4,050.97
Total Interest $7,446.85
You will need to invest $4,967.37 at the beginning to reach the future value of $8,000.00.
FV (Future Value) $8,000.00
PV (Present Value) $4,967.37
N (Number of Periods) 5.000
I/Y (Interest Rate) 10.000%
PMT (Periodic Payment) $0.00
Starting Investment $4,967.37
Total Principal $4,967.37
Total Interest $3,032.63
The value of Investment A at the end of year 5 is $20,000. Assuming that interest is compounded annually, and the interest rate is 8%, what is the present value of this investment at the beginning of year 1
Answer:
PV= $13,611.66
Explanation:
Giving the following information:
Future Value (FV)= $20,000
Number of periods (n)= 5 years
Interest rate (i)= 8%
To calculate the present value, we need to use the following formula:
FV= PV*(1+i)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 20,000 / (1.08^5)
PV= $13,611.66
Schwering Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $68,000; Order Filling, $136,040; and Other, $61,400. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
MHs (Machining) Orders (Order Filling)
Product D7 11,220 3,040
Product U1 22,780 760
The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:_______.
a. $35.80 per order.
b. $69.85 per order.
c. $9.40 per order.
d. $25.40 per order.
Top of Form
Schwering Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $81,600; Order Filling, $161,500; and Other, $68,200. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
MHs (Machining) Orders (Order Filling)
Product D7 13,200 4,000
Product U1 26,800 1,000
What is the overhead cost assigned to Product U1 under activity-based costing?
Bottom of Form
The controller of Hartis Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:
Wall Mirrors Specialty Windows
Total expected units produced 7,700 1,450
Total expected material moves 770 1,350
Expected direct labor-hours per unit 14 7
The total materials handling cost for the year is expected to be $17,153.10.
If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the wall mirrors is closest to:______.
a. $8,864.
b. $13,841.
c. $16,170.
d. $10,513.
Answer:
Instructions are below.
Explanation:
1)
Order Filling, $136,040
Orders (Order Filling)
Product D7 3,040
Product U1 760
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order Filling= 136,040/3,800
Order Filling= $35.8 per order
2)
Overhead costs:
Machining, $81,600
Order Filling, $161,500
Activity data appear below:
MHs (Machining) Orders (Order Filling)
Product D7 13,200 4,000
Product U1 26,800 1,000
First, we need to calculate the activity rate for each activity:
Machining= 81,600/40,000= $2.04 per machine hour
Order Filling= 161,500/5,000= $32.3 per order
Now, we can allocate overhead to product U1:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product U1= 2.04*26,800 + 32.3*1,000= $86,972
3)
Wall Mirrors Specialty Windows
Total expected units produced 7,700 1,450
Expected direct labor-hours per unit 14 7
The total materials handling cost for the year is expected to be $17,153.10.
Total direct labor hours, and predetermined overhead rate:
Total direct labor hours= 14*7,700 + 7*1,450= 117,950
Material Handling activity rate= 17,153.1/117,950= $0.145 per direct labor hour
Now, we allocate overhead:
Wall Mirrors= 0.15*107,800= $16,170