Answer:
The simple rate of return on the investment is closest to 7.41%.
Explanation:
This can be calculated as follows:
Equipment cost = $135,000
Annual profit = Annual sales revenue - Annual operating expenses - Annual depreciation on the equipment = $75,000 - $38,000 - $27,000 = $10,000
Therefore, we have:
Simple rate of return on the investment = Annual profit / Equipment cost = $10,000 / $135,000 = 0.0741, or 7.41%
Therefore, the simple rate of return on the investment is closest to 7.41%.
Colleen Matthews had just turned 22 when her hard work finally started to pay off. Six months earlier Colleen graduated from a state university with a master’s degree in accounting. Colleen graduated with honors and was one of the youngest in her class. Unlike most of the intellectuals she had studied with throughout her career, Colleen was extremely social and had great communication skills. After graduation she took a job with a welI-known regional accounting firm. The firm specialized in assisting companies with their technology problems. Colleen knew that the connections and knowledge she would gain working for the firm would be beneficial throughout her career. Now, six months after graduation, she has a full-time job offer with one of the firm’s strongest clients.Within a few days on her new job, Colleen adapted to her new environment. Colleen and two other recent graduates were running the entire accounting department. However, it wasn’t long until Colleen began to notice that something wasn’t right. After a few weeks, Colleen realized that the firm’s executives were participating in illegal transactions. The company executives were importing expensive technological products from China and selling them under the table to contacts unknown to Colleen. Once the firm received the products at the shipping dock, the executives’ "personal employees" marked the products and took them to a separate location. The entire operation was done with little paperwork. The money received from the special products received special attention. Colleen was told to report this inflow of cash in an account called "Personal Executive Consulting Services." This categorization allowed the executives to personally use the money at their convenience.Earlier in the textbook we discussed the net worth method. How do you think the net worth method can help prosecutors determine the extent of these executives illegal income?
Answer:
Prosecutors of this case can use the net worth method to determine the extent these executives have been receiving illegal incomes by computing their wealth at the beginning and at the end of the period under investigation.
There will be an increase in the executives wealth, and since this increase cannot be traced to any legal income source, it will become taxable income, with the calculated penalties and fines.
Explanation:
The net worth method specifies that any increase in wealth, which is not traced to non-taxable sources, should be determined as a taxable income for the period under review. Ordinarily, the net worth is the difference between assets and liabilities. Since the executives use the money personally at their convenience, this will increase their personal wealth.
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results.
Machine 1 Measirement 17 15 15 17
Machine 2 Measurement 16 25 18 25
Machine 3 Measurement 23 24 23 22
What are the Mean chart three-sigma upper and lower control limits?
a. 22 and 18
b. 23.16 and 16.84
c. 22.29 and 16.71
d. 23.5 and 16.5
e. 24 and 16
Answer:
b. 23.16 and 16.84
Explanation:
Mean (X-bar) = Sum of observations / No of observations
Range (R) = Highest observation - Lowest observation
Machine 1
Mean (X-bar) = (17 + 15 + 15 + 17) / 4
Mean (X-bar) = 16
Range (R) = (17 - 15)
Range (R) = 2
Machine 2
Mean (X-bar) = (16 + 25 + 18 + 25) / 4
Mean (X-bar) = 21
Range (R) = (25 - 16)
Range (R) = 9
Machine 3
Mean (X-bar) = (23 + 24 + 23 + 22) / 4
Mean (X-bar) = 23
Range (R) = (24 - 22)
Range (R) = 2
Mean of means (X-double bar) = Sum of X-bar / Number of samples = (16 + 21 + 23) / 3 = 20
Mean of ranges (R-bar) = Sum of R / Number of samples = (2 + 9 + 2) / 3 = 4.33
From table of constants for calculating the 3-sigma upper and lower control limits, For n = 4, A2 = 0.729
UCL = X-double bar + (A2 x R-bar)
UCL = 20 + (0.729 x 4.33)
UCL = 23.1566
UCL = 23.16
LCL = X-double bar - (A2 x R-bar)
LCL = 20 - (0.729 x 4.33)
LCL = 16.8434
LCL = 16.84
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash$82,000 Accounts payable$232,000 Other assets 760,000 Ferris, loan 43,000 Hardwick, loan 33,000 Hardwick, capital 270,000 Saunders, capital 170,000 Ferris, capital 160,000 Total assets$875,000 Total liabilities and capital$875,000 The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $230,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)
Question Completion:
Condensed Balance Sheet:
Cash $115,000
Other assets 760,000
Total assets $875,000
Accounts payable $232,000
Ferris, loan 43,000
Hardwick, capital 270,000
Saunders, capital 170,000
Ferris, capital 160,000
Total liabilities and capital $875,000
Answer:
The Partnership of Hardwick, Saunders, and Ferris
Proposed Schedule of Liquidation:
Net proceeds from sale of assets $526,000
Share of net proceeds:
Hardwick 4/10 * $526,000 $210,400
Saunders 3/10 * $526,000 $157,800
Ferris 3/10 * $526,000 $157,800 $526,000
Explanation:
a) Data and Calculations:
Condensed Balance Sheet:
Cash $115,000
Other assets 760,000
Total assets $875,000
Accounts payable $232,000
Ferris, loan 43,000
Hardwick, capital 270,000
Saunders, capital 170,000
Ferris, capital 160,000
Total liabilities and capital $875,000
Schedule of Assets Disposal:
Cash $115,000
Other assets:
40% of $760,000 ($304,000) sold for 230,000
60% of $760,000 ($456,000) sold for 456,000
Proceeds from disposal, including cash 801,000
Settlement of Accounts Payable -232,000
Settlement of Ferris, loan -43,000
Net proceeds 526,000
Hardwick Saunders Ferris
Capital accounts $270,000 $170,000 $160,000
Final settlement 210,400 157,800 157,800
In your own words write a definition for ecology ?
Answer:
the study of an organism sorrundings and the interactions between the organisms(them).
Explanation:
Jonathan has a debt of $3,000 that needs to be repaid with 3 annual equal principal repayments with interest on the outstanding balance. The debt has an annual effective interest rate of 8%. In order to match his payment obligations exactly, Jonathan decides to purchase the following zero coupon bonds. Time to Maturity Par Value 1 year $1,000 2 years $ 800 3 years $ 900 Calculate the number of units of the 3-year bond Jonathan should buy, assuming fractional purchase is possible
Answer:
Jonathan
The number of units of the 3-year bond that Jonathan should buy is:
3.88 or 3 and 22/25 bonds.
Explanation:
a) Data and Calculations:
Present value of debt = $3,000
Annual effective interest rate = 8%
Total future value of the debt with interest = $3,492.30
Equal annual repayment of the debt = $1,164.10 ($3,492.30/3)
Number of 3-year bond that Jonathan should buy = $3,492.30/$900 = 3.88 or 3 and 22/25 bonds
Time to Maturity Par Value
1 year $1,000
2 years $ 800
3 years $ 900
From an online calculator, the total amount to be paid with interest is $3,492.30:
N (# of periods) 3
I/Y (Interest per year) 8
PV (Present Value) 3000
FV (Future Value) 0
Results
PMT = $1,164.10
Sum of all periodic payments $3,492.30
Total Interest $492.30
Answer:
1.2
Explanation:
Given that we are making 3 Equal Principle Payments on a loan of $3000, the principle that we will repay each year will be [tex]\frac{3000}{3} = $1000[/tex].
First Year:
The interest that we will need to repay during the first year will be 3000*.08 which will be $240 dollars of interest, so we will be paying a total of 1000 + 240, or $1240 for the first year reducing the amount due to $2000.
Second Year:
The interest that we will need to repay during the second year will be 2000*.08 which will be $160 of interest, so we will be paying a total of 1000 + 160, or $1160 which will reduce the amount due $1000.
Third Year:
This is the year that we care for. We have a total interest amount of $80, so we will be paying a total of $1080 for the third year.
Given that the par value of the Zero Coupon bond for the third year is $900, we will need [tex]\frac{1080}{900} = 1.2[/tex] coupons for the final year, giving us our answer of 1.2 3-year bonds that Jonathan should buy.
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:
Direct materials $61,500
Direct labor 40,000
Overhead 25,500
At the split-off point, a batch yields 1,400 barlon, 2,900 selene, 2,800 plicene, and 3,700 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $24 per unit, plicene sells for $27 per unit, and corsol sells for $36 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.
Answer:
Alomar Company
Allocation of Joint Costs:
Barlon = $10,002
Selene = $29,250
Plicene = $31,771
Corsol = $55,977
Explanation:
a) Data and Calculations:
Joint costs:
Direct materials $61,500
Direct labor 40,000
Overhead 25,500
Total joint costs $127,000
Joint Products Barlon Selene Plicene Corsol Total
Batch output units 1,400 2,900 2,800 3,700 10,800
Selling price per unit $17 $24 $27 $36
Sales value $23,800 $69,600 $75,600 $133,200 $302,200
Allocation of Joint Costs:
Barlon = $10,002 ($23,800/$302,200 * $127,000)
Selene = $29,250 ($69,600/$302,200 * $127,000)
Plicene = $31,771 ($75,600/$302,200 * $127,000)
Corsol = $55,977 ($133,200/$302,200 * $127,000)
The following data relate to the accounts of Blossom Company. a. Unpaid salaries and wages at year end amount to $450. b. Blossom Company owns bonds of another corporation that pay annual interest of $920. These bonds were purchased on April 1, 2020, and the next interest payment will be received on April 1, 2021. c. A two-year insurance policy was purchased on June 1, 2020. The $1,440 insurance premium was paid on that date and was debited to Prepaid Insurance. d. Service Revenue was credited for $720 on June 1, 2020. The amount represents a one-year advance payment for services to be performed by Blossom Company through May 31, 2021. e. The Supplies account shows a balance of $1,800 on December 31, 2020. A physical count of the supplies on hand at this date reveals a total of $850 available. Prepare the necessary adjusting journal entries indicated by each item for the year ended
Answer:
Blossom Company
Journal Entries
a. Debit Salaries and Wages Expense $450
Credit Salaries and Wages Payable $450
To record accrued salaries and wages.
b. Debit Interest Receivable $690
Credit Interest Revenue $690
To record interest on bonds for the year.
c. Debit Insurance Expense $420
Credit Prepaid Insurance $420
To record insurance expense for the year.
d. Debit Service Revenue $300
Credit Unearned Revenue $300
To record unearned revenue.
e. Debit Supplies Expense $950
Credit Supplies $950
To record the supplies expense for the year.
Explanation:
1. Data and Analysis:
a. Salaries and Wages Expense $450 Salaries and Wages Payable $450
b. Interest Receivable $690 Interest Revenue $690
c. Insurance Expense $420 Prepaid Insurance $420
d. Service Revenue $300 Unearned Revenue $300
e. Supplies Expense $950 Supplies $950
The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $7,500 cash. Purchase prepaid insurance to protect musical equipment over the next year for $3,060 cash. Purchase musical equipment for $10,500 cash. Obtain a loan from a bank by signing a note for $11,000.
Record the transactions. The company uses the following accounts:
Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.
Answer and Explanation:
The journal entries are shown below:
cash Dr $7,500
To Service revenue $7,500
(being cash receipts is recorded)
Prepaid insurance $3,060
To cash $3,060
(being cash paid is recorded)
Musical equipment Dr $10,500
To cash $10,500
(being cash paid is recorded)
Cash Dr $11,000
To note payable $11,000
(being receipt of the loan is recorded)
These four journal entries are need to be recorded
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.4 hours Standard labor rate $ 13.20 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,200 hours Actual total labor cost $ 92,160 Actual output 1,050 units What is the labor efficiency variance for the month
Answer:
the labor efficiency variance is $35,244 favorable
Explanation:
The computation of the labor efficiency variance is shown below:
As we know that
Efficiency Variance is
= Standard rate × (Standard hours - Actual Hours)
= $13.20 × (9.4 ×1,050 units - 7,200 hours)
= $13.20 × (9,870 hours - 7,200 hours)
= $35,244 favorable
hence, the labor efficiency variance is $35,244 favorable
Splish Company purchased a computer for $9,920 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,240 salvage value. On January 1, 2021, the estimates are revised. Splish now feels the computer will be used until December 31, 2022, when it can be sold for $620. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 g
Answer:
$2914
Explanation:
The following steps would be taken to determine the answer
1. Calculate depreciation expense given the initial information
2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense
3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value
4. calculate the depreciation expense using the new information and the book value
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($9,920 - $1240) / 5 = $1736
Accumulated depreciation = 1736 x 2 = $3472
Book value at the beginning of 2021 = 9920 - 3472 = $6448
Depreciation expense in 2021 = (6448 - 620) / 2 = $2914
Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% installment note for $150,000 guaranteed by City Bank of New York. If Sara sells for $200,000 cash, she will invest the after-tax proceeds in certificates of deposit yielding 6% interest. Sara’s cost of the asset is $25,000. Why would Sara prefer the installment sale?
Answer:
Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.
Thus the value of an instalment payment would be greater than the value of a cash payment
Explanation:
g The liquidity trap refers to the situation where Multiple Choice the Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand. excessive consumer debt limits the growth in consumer spending necessary to bring the economy out of recession. the public debt is so large that federal borrowing drives up interest rates and discourages private sector spending. a financial crisis causes a run on banks and the elimination of billions in excess reserves.
Answer:
The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand
Explanation:
liquidity trap can be regarded as a case whereby monetary policy becomes ineffective as a result of very low interest rates, and activities of
consumers, whereby consumer will prefer saving their money instead of
investing it in some investment as well as higher-yielding bonds. It should be noted that the The liquidity trap refers to the situation where The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand
Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which of the following would be the most efficient way to make this change?
Use Format Painter.
Use Animation Painter.
Use font commands on the Home tab.
Use slide master.
Answer:
D. Use slide master.
Explanation:
Edge
On January 2, 2020, Marigold Corp. began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 592000 September 1, 2020 1806000 December 31, 2020 1806000 March 31, 2021 1806000 September 30, 2021 1219000 Marigold Corp. borrowed $3330000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12100000 in 7% bonds outstanding in 2020 and 2021. What were the weighted-average accumulated expenditures for 2020
Answer:
Marigold Corp.
The weighted-average accumulated expenditures for 2020 is:
= $3,000,000.
Explanation:
a) Data and Calculations:
Amount borrowed for construction = $3,330,000
Construction loan interest = 10%
Date of loan = January 2, 2020
Other loans:
7% bonds = $12,100,000
Date Expenditure Weight Weighted-Average
Expenditure
January 2, 2020 $ 592,000 21/21 $592,000
September 1, 2020 1,806,000 13/21 1,118,000
December 31, 2020 1,806,000 9/21 774,000
March 31, 2021 1,806,000 6/21 516,000
September 30, 2021 1,219,000 0/21 0
Weighted-average accumulated expenditure $3,000,000
Capitalized interest = $3,000,000 * 10% = $300,000
g Projects with different lives: Your firm is deciding whether to purchase a high-quality printer for your office or one of lesser quality. The high-quality printer costs $45,000 and should last four years. The lesser quality printer costs $35,000 and should last three years. If the cost of capital for the firm is 14 percent, then what is the equivalent annual cost for the best choice for the firm
Answer:
The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60
Explanation:
The equivalent annual cost is the present value of the printer machine divided by the present value annuity factor.
Annuity factor for n years = 1- (1+r)^(-n)/r
Annuity factor for four years = (1- 1.14^-4)/0.14 =2.9137
Annuity factor for three years =(1- 1.14^-3)/0.14= 2.3216
Printer Equivalent annual cost of printer
High quality 45,000/2.9137 15,444.22
Lesser quality 35,000/2.3216 15,075.60
The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60
You are the manager of a local bank. Due to unstable financial conditions, savers are worried that your bank may fail. When they show up in large numbers to withdraw their savings, you find that you do not have enough cash to meet the obligations. Where can you turn for a loan if no other bank will lend to you? The stock market The bond markets The discount window The market for overnight loans
Answer:
The discount window
Explanation:
As we can see that there is a liquidity problem for the bank as it has not enough funds to payoff back to the depositors. Also No other bank is ready to lend.
The discount window would be the monetary policy instrument that controlled by the central bank in which it permits the institutions that they are eligible for borrow the money so that they could meet their shortage and this money would be lend for short term duration by the central bank
Therefore it is a discount window
You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are a bit of a stretch. What's the best way to segment these prospects so that you can focus on those with the greatest potential first
Question:
You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are a bit of a stretch. What's the best way to segment these prospects so that you can focus on those with the greatest potential first
Options:
A. sort by personal characteristics, such as age and income level.
B. sort by customer types, such as commercial and reseller.
C. sort by customer types, such as restaurants, grocery stores, and food product manufacturers.
D. sort by end-use application, such as food preparation versus food product production
Answer:
The best choice is C) sort by customer types, such as restaurants, grocery stores, and food product manufacturers.
Explanation:
The above choice is called:
Firmographic Segmentation: This refers to focusing ones marketing efforts on Business to Business relationships. This is more beneficial because
businesses have set standards, they are easy to relate withthey already have a hub of numerous customers waiting to buy from themthere is an assurance of consistent demand for the herbsCheers
The best way to segment these prospects is : Sort by customer types such as restaurants, grocery stores, and food product manufacturers.
What is Firmographic Segmentation?Firmographic Segmentation is a term, given to a situation where a company lay more emphasis on Business to Business marketing relationships.
The importance of firmographic segmentation are :
It enables businesses have set standards.Businesses are easy to relate with.There is an assurance of consistent demand.Hence, the best way to segment these prospects is to sort by customer types such as restaurants, grocery stores, and food product manufacturers.
Learn more about Firmographic Segmentation here : https://brainly.com/question/24882209
Economists who advocate the Keynesian theory of economics would say that prices and wages are sticky and decreases in AD will decrease employment. sticky and decreases in AD will decrease unemployment. flexible and decreases in AD will decrease employment. flexible and decreases in AD will decrease unemployment. flexible and increases in AD will increase unemployment.
Answer:
flexible and increases in AD will increase unemployment.
Explanation:
Keynesian economics can be regarded as macroeconomic theory that base on effects of total spending in the economy as well as its effects on inflation, output and employment. With regards to this theory, Keynes serve as advocate that speak that about increased government expenditures as well as lower taxes in order to stimulate demand as well as saving the global economy from depression.
It should be noted that Economists who advocate the Keynesian theory of economics would say that flexible and increases in AD will increase unemployment.
Laurie owns land that serves as security for a $60,000 mortgage. Her basis in the land is $20,000 and the fair market value is $50,000. Laurie is not personally liable for the loan. The bank forecloses on the property. What is the tax consequence to Laurie?
A. Laurie recognize income in the amount of his discharge of indebtedness; $60,000.
B. Laurie has a gain on the transfer and must recognize income of $40,000.
C. Laurie has $40,000 of income; a gain of $30,000 on the transfer and discharge of indebtedness of $10,000.
D. Both (a) and (b).
E. None of the above.
Answer:
D. Both a and b.
Explanation:
Laurie has land of $60,000 as mortgage. Her basis in the land is $20,000 which means she can recognize the income of $40,000 as a gain on transfer. The fair market value of land is $50,000, the amount of discharge of indebtness is $60,000 which is the amount of mortgage.
You are considering purchasing a dump truck. The truck will cost $45,000 and have an operating and maintenance cost that starts at $15,000 the first year and increases by $2,000 per year thereafter. Assume that the salvage value at the end of 5 years is $9,000 and interest rate is 12%. The equivalent annual cost of owning and operating the truck is most nearly:
Answer:
The equivalent annual cost of owning and operating the truck is most nearly:
= $29,616.
Explanation:
a) Data and Calculations:
Costs PV Factor Present Value
Year 0 Truck purchase $45,000 1 $45,000
Year 1 Operating &
maintenance cost 15,000 0.893 13,395
Year 2 O&M cost 17,000 0.797 13,549
Year 3 O&M cost 19,000 0.712 13,528
Year 4 O&M cost 21,000 0.636 13,356
Year 5 O&M costs 23,000 0.567 13,041
Year 5 Salvage value -9,000 0.567 -5,103
Total costs $106,766
Annuity factor at 12% after 5 years = 3.605
Equivalent annual cost = $29,616 ($106,766/3.605)
A company had credit sales of $46,000 and cash sales of $18,000 during the month of May. Also during May, the company paid wages of $16,000 and utilities of $5800. It also received payments from customers on account totaling $15,800. At the beginning of May, the company had a cash balance of $25,000. What is the company's cash balance at the end of May
Answer:
the cash balance at the end of May is $37,000
Explanation:
The computation of the cash balance at the end of May is shown below:
= Opening cash balance + cash sales + received payment - paid wages - utilities
= $25,000 + $18,000 + $15,800 - $16,000 - $5,800
= $37,000
Hence, the cash balance at the end of May is $37,000
We simply applied the above formula to determine the cash balance at the end of May
Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
Required:
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order.
b. Briefly explain the reason why accepting this additional business will increase operating income.
c. What is the minimum price per unit that would produce a positive contribution margin?
Answer:
18000*2
Explanation:
As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the resulting output exceeds that which would occur in a perfectly competitive industry. b. the losses that occur are a sign that consumers are not harmed by the firm's exercise of market power. c. it ensures productive efficiency. d. the regulated firm will always break even.
Answer: c. it ensures productive efficiency.
Explanation:
The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.
With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.
This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.
Therefore, the correct option is C "it ensures productive efficiency".
The average variable costs of a company are equal to $20 per unit produced at its current level of output in the short run. Its average fixed costs are equal to $30 per unit produced. The total costs at this output level are equal to $2,500.
Required:
a. What is the company’s current output level?
b. What are the total variable costs at this output level?
c. What are the total fixed costs?
Answer:
Results are below.
Explanation:
First, we need to calculate the number of units produced:
Number of units= total cost/ average unitary cost
Number of units= 2,500 / (20 + 30)
Number of units= 50 units
Now, the total variable cost:
Total variable cost= 50*20
Total variable cost= $1,000
Finally, the fixed costs:
Fixed cost= 50*30
Fixed cost= $1,500
During January, the solar cell factory begins 57,000 solar cells, and completes 53,000 of them. The remaining 4,000 solar cells are 25% through the production process. 61,000 solar cells are sold during the month.Actual production costs (i.e., costs put into production during the month) are $12.9 million: $3.1 million direct material and $9.8 million fixed overhead.1. After all needed adjustments have been made, and under absorption costing, what is the total cost included in (20 points)a. finished goods inventory as of January 31
Answer:
"2000 units" is the right solution.
Explanation:
The given values are:
Transferred from WIP,
= 53,000 units
Units sold,
= 61,000 units
Beginning inventory,
= 10000 units
Now,
The total number of finished goods will be:
= [tex]( Beginning \Inventory + Transferred \ from \ WIP - Units \ Sold )[/tex]
On substituting the values, we get
= [tex]( 10000 + 53000 - 61000 )[/tex]
= [tex]2000 \ Units[/tex]
For the quarter ended March 31, 2020, Croix Company accumulates the following sales data for its newest guitar, The Edge: $315,200 budget; $303,200 actual. In the second quarter, budgeted sales were $382,000, and actual sales were $392,700. Prepare a static budget report for the second quarter and for the year to date.
Answer:
Croix Company
Static budget report
Second quarter Year to date
Product line Budget Actual Diff Budget Actual Diff
New guitar 382,000 392,700 10,700F 697,200 695,900 1,300 U
Explanation:
Total budgeted sales for 2020 = Sales of first quarter + Sales of second quarter
Total budgeted sales for 2020 = $315,200 + $382,000
Total budgeted sales for 2020 = $697,200
Total actual sales for 2020 = Sales of first quarter + Sales of second quarter
Total actual sales for 2020 = $303,200 + $392,700
Total actual sales for 2020 = $695,900
Purvell Corporation has just acquired a new machine with the following characteristics (Ignore income taxes.): Cost of the equipment $ 50,000 Annual cash savings $ 15,000 Life of the machine 8 years The company uses straight-line depreciation and a $5,000 salvage value. Assume cash flows occur uniformly throughout a year except for the initial investment and the salvage at the end of the project. The simple rate of return would be closest to:
Answer:
18.75%
Explanation:
Calculation to determine what The simple rate of return would be closest to:
First step is to calculate the Depreciation using this formula
Depreciation = (Cost - Salvage value)/ life
Let plug in the formula
Depreciation= ($50,000-$5000)/8 years
Depreciation=$40,000/8
Depreciation=$5,625
Second step is to calculate the annual net cash savings:
Annual cash savings $15,000
Less: Depreciation ($5,625)
(45,000/8 = $5,625)
Annual net cash savings $ 9,375
($15,000-$5,625)
Now let calculate the Simple rate of return
Using this formula
Simple rate of return = Annual net cash savings / Initial investment
Let plug in the formula
Simple rate of return= $9,375/$50,000
Simple rate of return= 18.75%
Therefore The simple rate of return would be closest to:18.75%
A store has the following sales for the next three month: May $ 240,000 June $ 200,000 July $ 190,000 Cash sales are 25% and all the remaining credit sales (75%) are collected in the month following the sale. The total amount of cash expected to be collected from customers in July is
Answer:
$197,500
Explanation:
Calculation for July cash collections
Cash collection = $ 190,000 x 25 % + $ 200,000 x 75 %
= $197,500
The total amount of cash expected to be collected from customers in July is $197,500.
A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 495 $2,100 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
Answer:
Ending inventory cost= $599
Explanation:
Giving the following information:
June 1 150 units $ 390 (2.6)
June 10 200 units 585 (2.93)
June 15 200 units 630 (3.15)
June 28 150 units 495 (3.3)
Ending inventory in units= 200
To calculate the ending inventory, first, we need to calculate the average price:
Average price= (2.6 + 2.93 + 3.15 + 3.3) / 4= $2.995
Now, the ending inventory:
Ending inventory= 2.995*200
Ending inventory= $599
The recent electric bills for the Rafael family were as follows. August, $187.55, September, $197.34; October. $200.44; and November, $256.88. Find the average monthly expenditure.
Answer:
210.55
Explanation: