Answer:
See below
Explanation:
We will apply the formula below to compute the above given information.
= (Fixed cost + Desired profit) / Contribution margin
Given that;
Fixed cost = $400
Desired profit = $300
Contribution margin = Unit selling price - Unit variable cost = $4 - $2.5 = $1.5
Therefore,
= ($400 + $300) / $1.5
= $700 / $1.5
= 466.67
Therefore, Greg must sell 466.67 units of lemonade glasses to generate a profit of $300
Assume that a company sets the transfer price for a product made by division A and sent to division B as full cost 10%. Further assume that division A is treated as a profit center. Discuss the incentives this situation creates for the manager of division A and why it is not in the company's best interest. (30 words maximum)
Answer and Explanation:
The manager of division A has the advantage of always selling at a profit since his department is positioned to always sell at profit to division B. However, selling at a transfer price to another department has the tendency to bring an incoherence of operations and decisions in the organization as a whole. If transfer price is high, it is possible that employees of department B may be demotivated as the high costs may negate operations and therefore look bad on their performance.
Horton invests personally owned equipment, which originally cost $110,000 and has accumulated depreciation of $30,000 in the Horton and Matile partnership. Both partners agree that the fair value of the equipment was $60,000. The entry made by the partnership to record Horton's investment should be:________
A. Equipment 110,000 Accumulated Depreciation—Equipment 30,000 Horton, Capital 80,000
B. Equipment 80,000 Horton, Capital 80,000
C. Equipment 60,000 Loss on Purchase of Equipment 20,000 Accumulated Depreciation—Equipment 30,000 Horton, Capital 110,000
D. Equipment 60,000 Horton, Capital 60,000
Answer:
D. Equipment 60,000 Horton, Capital 60,000
Explanation:
The journal entry to record the horton investment is shown below;
Equipment $60,000
To Horton, Capital $60,000
(Being the horton investment is recorded)
Here the equipment is debited as it increased the assets and credited the horton capital as it also increased the stockholder equity
Therefore the option d is correct
Fischer Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direct labor, $27; variable overhead, $15; and applied fixed overhead, $32. Heath has received a quote of $60 from a potential supplier for this part. If Fischer buys the part, 75 percent of the applied fixed overhead would continue. Fischer Company would be better off by Select one: a. $60,000 to buy the part b. $216,000 to manufacture the part c. $30,000 to manufacture the part d. $348,000 to buy the part
Answer:
Difference= $60,000 in favor of buying
Explanation:
Giving the following information:
Number of units= 12,000
Make in-house:
Direct material, $15
direct labor, $27
variable overhead, $15
applied fixed overhead, $32
Buy:
Buying price= $60
If Fischer buys the part, 75 percent of the applied fixed overhead would continue.
First, we will calculate the avoidable fixed overhead per unit:
Avoidable fixed overhead= 32*0.25= $8
Now, the total differential cost of making in-house:
Total cost of production= 12,000*(15 + 27 + 15 + 8)
Total cost of production= 12,000*65
Total cost of production= $780,000
Total cost of buying= 60*12,000= $720,000
Difference= $60,000 in favor of buying
types of equilibrium
Tính nguyên giá tài sản cố định
Answer:
Answer to the following question is as follows;
Explanation:
It's determined by adding the purchase price among all fixed assets plus any modifications made to them. Then deduct any accrued depreciation from the total. In a nutshell, net fixed assets is a metric that indicates the true worth of a company's fixed assets.
BCtronics Corp. issued 12 year bonds 2 years ago with a coupon rate of 9.2%. The bonds make semiannual payments and have a $1,000 par value. If these bonds currently sell for 104% of par value, what is the YTM
Answer:
8.60%
Explanation:
Face value of the bond = $1000
Years = 10 years (12-2). Semiannual number of periods = 20 (10*2)
Semiannual coupon rate = 9.2%/2 = 0.046
Semiannual coupon payment amount = 0.046*1000 = 46
Present value = 1000*104% = $1040
Value of YTM can be derived using Ms excel
Yield to maturity = YTM (No of periods, Payments, Present value, Face value) * 2
Yield to maturity = YTM (20, 46, 1040, 1000) * 2
Yield to maturity = 4.30% * 2
Yield to maturity = 8.60%
what osi layer encrypts data sent from network
We invent the automobile to get us between two points faster, and suddenly we find we have to build new roads. And that means we have to invent traffic regulations ... and then we have to invent a whole new organization called the highway patrol. This assessment supports the idea that
Answer:
Invention is the mother of necessity
Explanation:
In the given instance it can be seen that the invention of the automobile necessitated the building of new roads which in turn necessitated invention of traffic's regulations and finally invention of a new organization called the highway patrol.
This illustrates how necessity in a given situation forces people to invent technologies and processes that will tackle the present challenge.
There is no future preplanning of the inventions, but they come as the need arises.
Differential Analysis for a Lease or Sell Decision Granite Construction Company is considering selling excess machinery with a book value of $282,400 (original cost of $400,700 less accumulated depreciation of $118,300) for $275,700, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $284,900 for five years, after which it is expected to have no residual value. During the period of the lease, Granite Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $24,600.
Required:
Prepare a differential analysis, dated November 7 to determine whether Granite should lease (Alternative 1) or sell (Alternative 2) the machinery.
Answer and Explanation:
The preparation of the differential analysis is presented below:
Particulars Lease Machinery Sell Machinery Differential Effect on Income
Revenues $284,900 $275,700 $9,200
Costs $24,600 $13,785 $10,815
Income (Loss) $260,300 $261,915 -$1,615
It is better to sell the machinery as it has a loss of $1,615
When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________.
Answer: right; left
Explanation:
When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the right and the demand curve for Treasury bonds shifts to the left.
Liquidity is highly sought after in the bond market such that more liquid securities have a higher demand than less liquid securities.
Should Treasury bills become less liquid, their demand would decrease which would result in the demand curve for treasury bills shifting to the left.
More people would then switch over to Corporate bonds which would have more liquidity. The increase in demand for corporate bonds will lead to the demand curve for corporate bonds shifting to the right.
Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)
Answer:
$416
Explanation:
Calculation to determine the amount of joint processing cost that is allocated to Product A
First step is to determine the split-off Total
Yards Sales price
at split-off Total
A 800 *$6.50= $5,200
B 1,100* $8.25= $9,075
C 1,500*$8.00=$12,000
Total $26,275
Now let determine the amount of joint processing cost that is allocated to Product A
Product A joint processing cost=($5,200/$26,275) * $2,100
Product A joint processing cost=$416
Therefore Using a physical measurement method, what amount of joint processing cost is allocated to Product A is $416
26 . Alpha Co. can produce a unit of Beta for the following costs: Direct Material $4 Direct Labor 12 Overhead 20 TOTAL $36 An outside supplier offers to provide Alpha with all the Beta units it needs at $30 per unit. If Alpha buys from the supplier, Alpha will still incur 50% of its overhead. The proper decision and the total relevant cost to compare with the $30 purchase price are:
Answer:
b. Make, $26
Explanation:
Options are "A. Buy, $26. B. Make, $26. C. Buy, $36. D. Make, $36 E. Buy, $40"
Calculation of total relevant cost
Direct materials $4
Direct labor $12
Overhead $10 ($20 * 50%)
Total relevant cost $26
Since the relevant cost is $26 when making, so the proper decision and the total relevant cost to compare with the $30 purchase price are "Make, $26".
Tip Top Corp. produces a product that requires 11 standard gallons per unit. The standard price is $4.5 per gallon. If 4,500 units required 50,500 gallons, which were purchased at $4.27 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance
Answer:
Explanation:
To calculate the direct material price, quantity, and total variance; we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (4.5 - 4.27)*50,500
Direct material price variance= $11,615 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (11*4,500 - 50,500)*4.5
Direct material quantity variance= $4,500 unfavorable
Total direct material cost variance= 11,615 - 4,500
Total direct material cost variance= $7,115
Alyssa is working on a campaign to re-forest areas in Indonesia and needs to collate progress reports from the fund-raising and communication departments. She has yet to receive the communication report from the communications manager, Elizabeth. She knows that Elizabeth is working on multiple projects and is currently facing a time crunch. Which of the following should Alyssa use to write a persuasive direct request to Elizabeth asking for the progress report?
a. "We will establish a good image of our organization if we can send the reports on time."
b. "We can prevent delaying the third phase of our campaign if we send out the reports on time."
c. "I was wondering if you could send the report to me once you are relatively free from your work."
d. "Please send the progress report for the communication part of the campaign by March 20."
e. "The fund-raising department has sent in their report. Is there a way you can send in yours?"
Answer: b. "We can prevent delaying the third phase of our campaign if we send out the reports on time."
Explanation:
For Alyssa to write a persuasive direct request to Elizabeth asking for the progress report, she can write "We can prevent delaying the third phase of our campaign if we send out the reports on time"
The emphasis here is about being proactive and not delaying the work on ground so that the task will be completed on time. When compared to other options, it'll lead to non-delay of the task and the task will be sent on time rather than sending it when Elizabeth feels like sending it.
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:
Answer:
the principal-agent problem
Explanation:
In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.
So the above should be the answer
You managed a risky portfolio with an expected rate of return of 28% and a standard deviation of 78%. The T-bill rate is 5%. Your client stipulates that the complete portfolio's standard deviation should be less than 12%. What proportion of your client's total investment should be invested in the risky portfolio
Answer:
Portfolio standard deviation = Weight in Risky portfolio * Standard deviation of Risky portfolio
12% = Weight in risky Portfolio * 78%
Weight in risky Portfolio = 12% / 78%
Weight in risky Portfolio = 0.1538
Weight in risky Portfolio = 15.38%
Stock Weight Return Weighted Return
Risky portfolio 0.1538 28.00% 4.31%
Risk free Asset 0.8462 5.00% 4.23%
Portfolio Return 8.54%
Magnolia Candle Inc. pays 10% of its purchases on account in the month of the purchase and 90% in the month following the purchase. If purchases are budgeted to be $11,900 for March and $12,700 for April, what are the budgeted cash payments for purchases on account for April?
Answer:
Total cash disbursement= $12,620
Explanation:
Giving the following information:
10% of purchases on account are paid in the month of the purchase
90% of purchases on account are paid in the month following the month of the purchase
Purchases:
March= $11,900
Abril= $12,700
Cash payment April:
Purchase on account from April= 12,700*0.9= 11,430
Purchase on account from March= 11,900*0.1= 1,190
Total cash disbursement= $12,620
Smith Corporation has two service departments: Data Processing and Personnel. Data Processing provides more service than does Personnel. Smith Corporation also has two production departments: A and B. Data Processing costs are allocated on the basis of assets used while Personnel costs are allocated based on the number of employees. Department Direct Costs Employees Assets used Data Processing $1,000,000 15 $700,000 Personnel 300,000 8 230,000 A 500,000 12 125,000 B 330,000 20 220,000 Refer to Smith Corporation. Using the direct method, what amount of Data Processing costs is allocated to A (round to the nearest dollar)
Answer:
$474,819
Explanation:
The computation of the amount of Data Processing costs is allocated to A is shown below:
Personal Cost
= 300,000 ÷ (12+20) × 12
= $112,500
And, the Data Processing Cost is
= 1000,000 ÷ (125,000 + 220,000) × 125,000
= 362,319
So, the Total cost is $474,819
which industries operates at the primary stage of production
Answer:
raw material extraction
Explanation:
any industry that extract raw material for onward production is considered a primary stage.
Explain the solution evolved by their CIO, Mr V.Subramanium
Answer:
Hi lodi e
Explanation:
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Gago✓✓
what is a marginal cost?
Production efficiency is a situation in which the economy is getting all that it can from its resources and _____ produce more of one good or service without producing _____ of something else. A. can; less B. cannot; equal C. cannot; more D. cannot; less
Answer:
B is the correct answer for that question
Production efficiency exists as a condition in which the economy stands to obtain all that it can from its resources and cannot have better of one good or benefit without having less of something else.
What is production efficiency?
Productive efficiency exists concerned with yielding goods and services with the optimal mixture of inputs to yield maximum results for the lowest cost. To be constructively efficient indicates the economy must be producing on its exhibition possibility boundary.
Production efficiency exists as a condition in which the economy stands to obtain all that it can from its resources and cannot have better of one good or benefit without having less of something else.
Therefore, the correct answer is option D. cannot; less.
To learn more about production efficiency refer to:
https://brainly.com/question/9563570
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The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer:
The analysis and refinement phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer: analysis and refinement
Consider to communities: Alpha and Omega. Alpha has 10 residents, 5 who earn $60,000 and 5 who earn $20,000. Omega also has 10 residents, 5 who earn $300,000 and 5 who earn $50,000
Part 1. The income inequality ratio in Alpha is and the income inequality ratio in Omega is
Part 2. Alpha and Omega each have 10 residents. The top two residents in Alpha have an average income of $90,000, and the bottom two residents in Alpha have an average income of $30,000. The top two residents in Omega have an average income of $250,000, and the bottom two residents in Omega have an average income of $50,000. How much would the top two residents in Alpha have to earn in order for Alpha to have the same income inequality ratio as Omega? The top two Alpha residents would need to earn $ each Part 3 (1 point) Suppose Alpha's community grew to 15 residents with the following incomes: 2 residents' income $175.000 300,000 260,000 65,000 1 resident's income 1 resident's income 3 residents' income 3 residents' income 2 residents' income 1 resident's income 1 resident's income 1 resident's income 26,000 105,000 650,000 18,000 140,000 The new income inequality ratio in Alpha is:_____. (Round to two decimal places.)
Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and production Model A1) is presented below: Sales price per unit $30 Costs per unit: Direct material 7 Direct labor 4 Overhead (50% variable) 6 Selling costs (40% variable) 10 Production in units 10,000 Sales in units 9,500 Refer to Henderson Electronics Corporation. The Model B2 radio is currently in production and it renders the Model A1 radio obsolete. If the remaining 500 units of the Model A1 radio are to be sold through regular channels, what is the minimum price the company would accept for the radios
Answer:
$4
Explanation:
Calculation to determine the minimum price the company would accept for the radios
Minimum price=Selling costs (40% variable)*$10
Minimum price=$4
Therefore the minimum price the company would accept for the radios will be $4 because it COVER THE VARIABLE SELLING EXPENSE
Big Joe's owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that originally cost $129,000. The facility itself cost $750,000 to build. As of now, the book value of the land and the facility are $129,000 and $186,500, respectively. Big Joe's received an offer of $610,000 for the land and facility last week. The firm rejected this offer even though it was advised that the offer was reasonable. If Big Joe's were to consider using this land and facility in a new project, what cost, if any, should it include in the project analysis
Answer:
$610,000
Explanation:
Based on the information given if he were to consider using the land and as well as the facility in a new project the COST that he should include in the PROJECT ANALYSIS will be the amount of $610,000 reason been that we were told received an offer of the amount of $610,000 for the land and as well as the facility last week.
Therefore using this land and facility in a new project, the cost that he should include in the project analysis will be $610,000
You expect to receive the annual property Net Operating Income (NOI) from a certain property as follows: Year 1 $20,000 Year 2 $22,000 Year 3 $30,000 Year 4 $31,000 Year 5 $40,000 3) What is the Total Present Value of the property given the 5 year holding period?
Answer:
The answer is "353281.88".
Explanation:
In this question, the total present value for cash flow was its notion which states the today's currency is worth more than tomorrow. In other terms, money received by tomorrow is not as large as today.
Using formula:
Total present value of cash inflow [tex]= 104913.35+248368.53=353281.88[/tex]
The Merchandise Inventory account on a classified balance sheet is reported in the: Multiple choice question. current assets section plant assets section long-term investments section intangible assets section
Answer: Current Assets section
Explanation:
Merchandise inventory is a current account because it is expected that the inventory will be sold off during the period and won't go into the other period. It will therefore be placed in the current assets section.
As a current asset, when new inventory is purchased, the merchandise inventory account id debited to show that it has increased and when inventory is sold, the account is credited to show its decrease.
Answer: The Merchandise Inventory account on a classified balance sheet is reported in the: current assets section.
Explanation: read blue highlight in attachment
a. might make you better off if your nominal wages fall more rapidly than prices. b. automatically occurs when there are more goods with falling prices than there are goods with increasing prices. c. would negatively affect producers but positively affect consumers because producers must accept lower prices. d. automatically implies that, on average, everyone is better off because prices have fallen.
Answer:
c. would negatively affect producers but positively affect consumers because producers must accept lower prices
Explanation:
In the case of deflation, it negatively impact the producers but on the other side it impact positively to the consumers as the producers are ready to accept at the lower price also
So as per the given situation, the deflation should be fit to the above option
Therefore the other options should be considered irrelevant and hence not considered
Sal’s satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are QNY = 60 - 0.25PNY QLA = 100 - 0.50PLA where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C =1000 +40Q where Q=QNY +QLA What are the profit-maximizing price and quantity for the New York?
Answer:
For New York, the profit-maximizing price is $100 and the profit-maximizing quantity is 25.
Explanation:
For both Los Angeles and New York, we have:
C = 1000 + 40Q where Q=QNY +QLA
MC = dC/dQ = 40 ………………………. (1)
For New York, we have:
QNY = 60 - 0.25PNY ……………… (2)
Solving for PNY, we have:
0.25PNY = 60 - QNY
PNY = (60 / 0.25) - (1/0.25)QNy
PNY = 240 - 4QNY ………………. (3)
RNY = Revenue in New York = PNY * QNY = (240 - 4QNY)QNY = 240QNY – 4QNY^2 ………. (5)
MRNY = dRNY/dQNY = 240 - 8QNY ……….. (5)
Since profit is maximized when MC = MR, we therefore equate equations (1) and (5) and solve for QNY as follows:
40 = 240 - 8QNY
8QNY = 240 - 40
8QNY = 200
QNY = 200 / 8 = 25
Substituting QNY = 25 into equation (3), we have:
PNY = 240 - (4 * 25) = 240 - 100 = 100
Therefore, the profit-maximizing price is $100 and the profit-maximizing quantity is 25 for the New York.