Answer: variable; fixed
Explanation:
In the short run, these workers are variable inputs, and the ovens are fixed Inputs.
In the short run, variable inputs in production can be changed to adapt to the changing economic conditions while fixed inputs cannot. In the long run however, all inputs are variable and so can be changed.
As this is the short run and the workers can be changed, they are the variable inputs.
The ovens however, cannot be changed so the ovens are the fixed inputs.
Jefferson Inc. (JI) is a relatively new company that wants to improve its employee rewards, compensation, and benefits. The company understands that there are effective reward systems that will motivate employees. However, JI management is not sure which would be the best for the company. Compensation, another important area, must also be improved so that it will satisfy all employees effectively. In addition, the company wants to create benefits to keep the employees not just satisfied, but also motivated. Yet another pressing issue is deciding on the training methods that are to be used to successfully teach the new employees.
JI believes that it will be on the right path if all of these changes can be successfully accomplished. The company plans to incorporate performance appraisals so it can be sure that the rewards, compensation, and benefits are effectively distributed. Refer to Jefferson, Inc. JI management must consider implementing the many different types of benefits. These include all of the following except :__________
a. insurance packages.
b. pension and retirement programs.
c. worker's compensation insurance.
d. Social Security.
e. profit sharing.
Answer:
E. Profit sharing
Explanation:
Employee benefits are the additional gains that employees enjoy in an organization in addition to their salaries.
There are different types of benefits that employers offer their employees.
Some of these are:
1. Medical benefits
2. Retirement benefits
3. Disability benefits
4. Insurance
5. Social security
E. T. C
Profit sharing is not an employee benefit so it is the odd 1 out of these options.
In order to safeguard the public health, environment, public beaches, water quality, and economy of south San Diego County, California, and Tijuana, Mexico, federal agencies in the United States and Mexico developed four alternatives for treating wastewater prior to discharge into the ocean. The project will minimize untreated wastewater flows that have caused chronic and substantial pollution in the Tijuana River Valley, the Tijuana River National Estuarine Research Reserve, coastal areas used for agriculture and public recreation, and areas designated as critical habitat for federal- and state-listed endangered species. For the costs and benefits estimated, which alternative should be selected on the basis of a B/C analysis at 6% per year and a 40-year project period?
Pond System Expand Plan Advanced Prima Partial Secondary
Capital cost, $5.8 76 2 48
M&O cost, $/year 5.5 5.3 2.1 4.4
Benefits, $/year 11.1 12.0 2.7 8.3
Answer:
Following are the solution to these question:
Explanation:
Follows are the AW calculation to the total cost and add according to the rank of the increasing costs.
[tex]= 58 (0.06646) + 5.5\\= \$ 9.35[/tex]
[tex]AWexpand = 76(\frac{A}{P}, 6\%, 40) + 5.3[/tex]
[tex]= 2 (0.06646) + 2.1\\\\= \$ 2.23\\\\[/tex]
[tex]AWprimary = 2(\frac{A}{P}, 6\%, 40) + 2.1\\\\[/tex]
[tex]= 2 (0.06646) + 2.1\\\\= \$ 2.23\\\\[/tex]
[tex]AW partial = 48(\frac{A}{P}, 6\%, 40) + 4.4\\\\[/tex]
[tex]= 48 (0.06646) + 4.4\\\\= \$ 7.59[/tex]
Calculating the benefits of the directly estimate on the DN of the first alternative and rank as follows: DN, Primary, Partial, Pond, Expand
[tex]Primary \ DN: \frac{\Delta B}{с} = \frac{2.7}{2.23}= 1.21 \ eliminate\ DN\\\\Partial \ Primary: \frac{\Delta B}{с} =\frac{(8.3-2.7)}{(7.59-2.23)}= 1.04 \ eliminate \ Primary\\\\Pond \ Partial: \frac{\Delta B}{с} = \frac{(11.1 - 8.3)}{(9.35-7.59)}= 1.59 \ eliminate \ Partial\\\\Expand \ Pond: \frac{\Delta B}{с} = \frac{(12.0 - 11.1)}{(10.35 - 9.35)}= 0.90\ eliminate\ Expand\\\\[/tex]
select the Pond system
ABC Corporation has total assets of 120 million, total liabilities of 80 million, Goodwill of 12 million, and 4 millions of shares outstanding. If you believe the reasonable price to tangible book value should be 1.6 for this company, what is the implied share price of ABC
Answer: $16
Explanation:
Implied share price = Book value per share * Price to tangible book value
Book value per share = (Assets - Liabilities) / Number of shares outstanding
= (120 - 80) / 4
= $10
Implied share price = 10 * 1.6
= $16
what is money placed in a checking account called
Answer:
bank account
Explanation:
A warranty guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.
t or f
Answer:
True
Explanation:
A warantee is a written assurance that some product or service will be provided or will meet certain specifications.
Hope this helps! <3
Warrants exercisable at $15 each to obtain 81000 shares of common stock were outstanding during a period when the average market price of the common stock was $20. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by:_________
a. 20250.
b. 81000.
c. 27000.
d. 60750.
Answer:
a. 20250
Explanation:
Calculation to determine diluted earnings per share will increase the weighted average number of outstanding shares
Diluted earnings per share=[$81,000- (81,000 × $15) ÷ $20 ]
Diluted earnings per share=[$81,000-($1,215,000÷$20)]
Diluted earnings per share=$81,000-$60,750
Diluted earnings per share=$20,250.
Therefore in computing diluted earnings per share will increase the weighted average number of outstanding shares by:$20,250
you observe thundering herd common stoc k selling for $40.00 per share. the next dividen is ecoected to be $2.00, and is expected to grow at a 4% annual rate forever. If your requir4ed rate of return is 12%, you should purchase the stock? A. Yes, because the presemt value of the expected future cash flows is greater than $40 g
Answer:
no, because the present value of the expected future cash flows is less than $40
Explanation:
The computation of the share price present value is given below:
= Next dividend ÷ (Required rate of return - growth rate)
= $2 ÷ (12% - 4%)
= $25
As we can see that the share price present value would be $25 but the stock selling price is $40 so the present value would be lower than $40 that means the stock should not be purchased
When Crossett Corporation was organized in January, Year 1, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock. Its earnings history is as follows: Year 1, net loss of $35,000; Year 2, net income of $125,000; Year 3, net income of $215,000. The corporation did not pay a dividend in Year 1.
Required:
a. How much is the dividend arrearage as of January 1, Year 1?
b. Assume that the board of directors declares a $25,000 cash dividend at the end of year 1 (remember that the year 1 and year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders?
Answer:
a. $0
The company was organized in January, Year 1. They do not have to pay dividends because the company just started operations. The cumulative dividends are only to be paid at the end of the period so there is no dividend arrear here.
b. Preferred shareholders are meant to get:
= 4,000 shares * 50 * 6%
= $12,000 per year
As they are owed $12,000 from the first year and are now owed for the second, the dividends they will get is:
= 12,000 + 12,000
Preferred Dividends = $24,000
Ordinary shareholders get what is left:
= 25,000 - 24,000
= $1,000
what more, could starbucks have done, to maximize it's chances of success with laboulange
Answer:
It probably felt like the end of the line last year when Starbucks announced plans to close all 22 La Boulange pastry shops. This was the very same croissant-creating brand that Starbucks CEO Howard Schultz once publicly praised as a key to boosting the quality of Starbucks baked goods.
But for La Boulange founder Pascal Rigo, the store closure wasn’t the end. It was a new beginning. At 56, Rigo is in the midst of making one of fast-casual’s most widely watched reinventions. In Humpty Dumpty-like fashion, he is gluing the broken pieces together again and has opened five stores in the San Francisco Bay Area—with two more on the way—under the name, La Boulangerie de San Francisco.
His grand plans: to reassemble La Boulangerie as a fast-casual powerhouse by opening up some 20 to 40 locations. He also plans to enlarge its 40,000-foot baked goods facility in San Francisco that attracts business from such high-profile retail clients as Costco and, reportedly, Trader Joe’s. While it may not be quite the magnitude of what Chipotle CEO Steve Ells accomplished after buying back Chipotle from McDonald’s, the guy who founded La Boulange has a nice chunk of it back from Starbucks.How is Starbucks diversifying itself by purchasing La Boulange? y increasing its product offerings to include bakery items. How does Starbucks' current market power increase its chances for success in expanding its product offerings to include bakery items?
have a good day/night
may i please have a branlliest
sorry if it wrong
if a bond with a $1,000 par value, 20 years to maturity, and a coupon interest rate of 10% was selling for $1100, then the yield to maturity on that bond is: A. is less than 10% B. is greater than 10% C. is 10% D. cannot be determined g
Answer:
a
Explanation:
the yield to maturity of a bond is the total return on a bond if the bond is held to maturity. it is the equivalent of the internal rate of return.
If the yield to maturity is greater than the bonds coupon rate the bond is selling at a discount
If the yield to maturity is less than the bonds coupon rate the bond is selling at a premium
If a bond’s coupon rate is equal to its yield to maturity, then the bond is selling at par.
the bond is selling at a premium as 1100 is greater than 1000. Thus, the ytm is less than 10%
A firm is a pure monopoly when: Group of answer choices there are only a few other very large firms selling similar products. it can sell all it can produce at any price it chooses. it is the only seller of a product that has very few close substitutes and entry into the market in the long run is unrestricted. it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run.
Answer: it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run.
Explanation:
A pure monopoly is referred to as a single supplier of a particular product in an industry. In such market, there no no substitute exists and such firms usually have a large market share.
They are price makers, profit maximizer, discriminate on prices and have a high barriers to entry. Due to their economies of scale, they prevent other sellers from entering the market in the long run.
Suppose that an initial $20 billion increase in investment spending expands GDP by $20 billion in the first round of the multiplier process. Also assume that GDP and consumption both rise by $18 billion in the second round of the process. Instructions: Round your answers to 1 decimal place. a. What is the MPC in this economy
Answer: 0.9
Explanation:
The marginal propensity to consume (MPC) is calculated by using the formula:
= Change in consumption / Change in income
where,
Change in consumption = $18 billion
Change in income = $20 billion
MPC = Change in consumption / Change in income
= $18 billion / $20 billion
= 0.9
Therefore, MPC is 0.9.
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $800 budgeted price and $375 budgeted variable cost. Each billable hour of staff time has a budgeted price of $210 and a budgeted variable cost of $120. For the most recent year, the partnership budget called for 5,000 billable partner-hours and 20,000 staff-hours. Actual results were as follows:
Partner revenue $4264,000 5200 hours
Staff revenue $4510,000 22,000 hours
Required
Compute the sales price and activity variances for these data. Also compute the mix and quantity variances.
Answer:
EZ-Tax
Partner Staff Total
a. Sales price variance $104,000 ($110,000) ($6,000) U
b. Activity variance $160,000 $420,000 $580,000 F
c. Mix variance $85,000 $180,000 $265,000 F
d. Quantity variance $189,000 $70,000 $259,000 F
Explanation:
a) Data and Calculations:
Partner Staff
Budgeted billable rate per hour $800 $210
Budgeted variable cost per hour 375 120
Budgeted billable hours 5,000 20,000
Budgeted revenue $4,000,000 $4,200,000
Budgeted variable cost 1,875,000 2,400,000
Actual revenue $4,264,000 $4,510,000
Actual billable hours 5,200 22,000
Actual billable rate per hour $820 $205
Budgeted billable rate per hour $800 $210
Variance in price $20 ($5)
Sales price variance $104,000 ($110,000) ($6,000)
Sales price variance = (Standard price - Actual price) * Actual billable hours
= ($800 - $820) * 5,200 + ($210 - $205) * 22,000
= $20 * 5,200 + ($5) * 22,000
= $104,000 - 110,000
= $6,000 U
Activity variance = (Actual billable hours - Standard billable hours) * Standard rate
= (5,200 - 5,000) * $800 + (22,000 - 20,000) * $210
= (200 * $800) + (2,000 * 210)
= $160,000 + 420,000
= $580,000 F
Partner Staff Total
Budgeted revenue $4,000,000 $4,200,000 $8,200,000
Budgeted variable cost 1,875,000 2,400,000 4,275,000
Budgeted contribution $2,125,000 $1,800,000 $3,925,000
Actual revenue $4,264,000 $4,510,000 $8,774,000
Actual variable cost 1,950,000 2,640,000 4,590,000
Actual contribution $2,314,000 $1,870,000 $4,184,000
Quantity variance $189,000 $70,000 $259,000
Quantity variance = Budgeted contribution - Actual contribution
= $3,925,000 - $4,184,000
= $259,000 F
Mix Variance:
Standard contribution margin $425 $90
Volume variance 200 2,000
Mix variance = $85,000 $180,000
In order to motivate our sales force to increase sales, we decided to increase our commissions and salaries and increase marketing. At the same time, our supplier increased its prices, and we felt we could pass that cost increase on to our customers in the form of price increase. However, with the additional pressure to make sales, coupled with the increased sales price, we had to loosen credit terms on sales. We also had to lease a little more distribution space and acquire another truck to handle the volume increase. Our shipping expense relates to gasoline on deliveries. Luckily, gas prices went down from what we originally expected this year.
In the table below, classify EACH ACCOUNT on the budget according to whether the variances in the performance report are consistent or inconsistent with the client’s story, or unexplained by the client’s story. Place an "X" in the appropriate column. If the Revenue/Spending Variance and Activity Variance differ with respect to one account (i.e., one is consistent and one is inconsistent) then indicate which belongs in which column.
Consistent
Inconsistent
Unexplained
Sales revenue
Cost of Goods Sold
Commission
Shipping Expense
Bad debt expense
Salaries
Lease of distribution center
Depreciation of fleet and equip
Advertising
Office rent, phone, internet
Answer:
Sales Revenue - Inconsistent
Cost of Goods Sold - Inconsistent
Commission - Consistent
Shipping expense - Inconsistent
Bad debt expense - Unexplained
Salaries - Consistent
Lease of distribution center - Consistent
Depreciation of fleet and equipment - Inconsistent
Advertising - Consistent
Office rent, Phone, Internet - Inconsistent
Explanation:
The increase in selling price will result in change in the revenue figure. The cost of distribution is increased due to handling the addition volume. This will result in an increase in shipping expense and cost of goods sold. Salaries and commission of the staff will remain consistent as there will be no change due to increase of selling price.
Factory Overhead Volume Variance Dvorak Company produced 5,100 units of product that required 3.5 standard hours per unit. The standard fixed overhead cost per unit is $2.50 per hour at 18,750 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer:
$2,250 Favourable
Explanation:
Calculation to determine the fixed factory overhead volume variance
Fixed factory overhead volume variance=$2.50 × [18,750 hrs. – (5,100 units × 3.5 hrs.)]
Fixed factory overhead volume variance=$2.50×[18,750 hrs. – 17,850 hrs]
Fixed factory overhead volume variance=$2.50×900
Fixed factory overhead volume variance=$2,250 Favourable
Therefore the fixed factory overhead volume variance will be $2,250 Favourable
Andrew is deciding whether to remain in the home he has lived in for the past ten years, which is located very near his work, or to move into a newer home that is located in the suburbs farther from his job. The old house was purchased for $160,000 and has a market value of $220,000. The new home can be purchased for $285,000. Which of the following is not relevant to Andrew's decision?
a. Driving distance to work
b. Cost of the old house
c. Market value of the old house
d. Cost of the new house
Answer:
The decision that is not relevant to Andrew is:
b. Cost of the old house.
Explanation:
a) The cost of the old house ($160,000) is not relevant to Andrew decision challenges. It is a sunk or past cost. Past costs are not relevant because they do not make a difference in the decision or the alternative to choose. Since Andrew will be impacted by the driving distance to work from his new house, the market value of the old house, and the cost of the new house, these are relevant in Andrew's decision.
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.
Example M1 M2
Susan has $8,000 in a two-year certificate of deposit (CD).
Larry has a roll of quarters that he just withdrew from the bank to do laundry.
Raphael has $25,000 in a money market account.
Answer and Explanation:
The identification is as follows:
As we know that
M! money supply involved all the currecies that have physical existance i.e. notes, coins, demand deposits etc
While on the other hand, M2 involves M1 + near money i.e. mutual funds, checking deposits, money market etc
Since Susan has 2 year CD so it would be classified as a M2 money supply
Since larry withdraw from the bank so it would be included in M1 and M2
And, since raphael has $25,000 in money market so would be classified as a M2 money supply
Oriole Company has issued three different bonds during 2022. Interest is payable annually on each of these bonds. 1. On January 1, 2022, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2022, were issued at face value. 2. On July 1, $854,000, 9%, 5-year bonds dated July 1, 2022, were issued at 101. 3. On September 1, $281,000, 7%, 5-year bonds dated September 1, 2022, were issued at 99. Prepare the journal entry to record each bond transaction at the date of issuance.
Answer:
Transaction 1
Debit : Cash ($1,000 x 1,000) $1,000,000
Credit : Bond Payable $1,000,000
Transaction 2
Debit : Cash ($854,000 x 101.30%) $865,102
Credit : Bond Payable $865,102
Transaction 3
Debit : Cash ($281,000 x 99%) $278,190
Credit : Bond Payable $278,190
Explanation:
On each issuance date recognize a cash inflow and a liability - Bond Payable to the extent of the amount paid on issue.
Cullumber Company incurred the following costs while manufacturing its product.
Materials used in product $121,000 Advertising expense $46,000
Depreciation on plant 61,000 Property taxes on plant 15,000
Property taxes on store 7,600 Delivery expense 22,000
Labor costs of assembly-line workers 111,000 Sales commissions 36,000
Factory supplies used 24,000 Salaries paid to sales clerks 51,000
Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.
Required:
Compute cost of goods manufactured.
Answer:
$328,400
Explanation:
Cost of Goods Manufactured is calculated in Manufacturing Account as follows :
Cost of Goods Manufactured = Beginning Work In Process Inventory + Total Manufacturing Costs - Ending Work In Process Inventory
therefore,
Cost of Goods Manufactured = $13,000 + ($121,000 + $61,000 + $15,000 + $111,000 + $24,000) - $16,600
= $328,400
Identify which of the following are primary activities and which are support activities in a value chain. Review Later A Inbound movement of materials Sales and promotion of products/services Management of cash inflows and outflows Movement of final products to customers Acquisition of materials from external source Quality assurance, control systems and work culture Maintenance of products Research and development Primary activities Support activities
Answer:
According to Michael Porter's value chain, Primary Activities are meant to create more value than they cost so that the company makes a profit while the support activities are meant to support the primary activities.
Primary Activities include:
Inbound movement of materials Sales and promotion of products/services Movement of final products to customers Maintenance of productsSupport Activities
Management of cash inflows and outflowsAcquisition of materials from external sourceQuality assurance, control systems and work culture Research and developmentSports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-line skates. The company has found it beneficial to split operations into two divisions based on the climate required for the sport: Snow Sports and Non-Snow Sports. The following divisional information is available for the past year:
Sales Operating Income Total Assests Current Liabilities
Snow Sports $57,00,000 1010,500 4,300,000 450,000
Non- Snow Sport 8500000 1332500 6500,000 750,000
Required:
a. Calculate each division's ROI.
b. Top management has extra funds to invest. Which division will most likely receive those funds? Why?
c. Can you explain why one division's ROI is higher? How could management gain more insight?
Answer:
Sports Company
a. Division's ROI:
SnowSports = 23.5%
Non-SnowSport = 20.5%
b. Naturally, management will invest in Division SnowSports. The company earns more returns on its investment in the division.
c. One division's ROI on investment because it earned more returns from the division when compared with its investment. This shows that SnowSports is more efficient than the other division in the use of resources.
Management can gain more insight by computing the Assets Turnover ratio and the operating leverage.
Explanation:
a) Data and Calculations:
Sales Operating Total Assets Current Liabilities
Income
Snow Sports $5,700,000 1,010,500 4,300,000 450,000
Non- SnowSport 8,500,000 1,332,500 6,500,000 750,000
ROI (Return on Investments) = Operating income/Total assets * 100
Snow Sports = $1,010,500/$4,300,000 * 100 = 23.5%
Non-SnowSport = $1,332,500/$6,500,000 * 100 = 20.5%
The following data are available relating to the performance of Seminole Fund and the market portfolio: Seminole Market Portfolio Average return 18 % 14 % Standard deviations of returns 30 % 22 % Beta 1.4 1.0 Residual standard deviation 4.0 % 0.0 % The risk-free return during the sample period was 6%. If you wanted to evaluate the Seminole Fund using the M2 measure, what percent of the adjusted portfolio would need to be invested in T-Bills
Answer:
0.8%
Explanation:
Calculation to determine what percent of the adjusted portfolio would need to be invested in T-Bills
Using this formula
M2 =(Rp - Rf) * σ m / σ p - (Rm - Rf)
Whrere,
Rp represent Return on Seminole Fund (14%)
Rf represent Risk free rate of return(6%)
Rm represent Return on Market Portfolio(18%),
σ m represent Standard Deviation of return on market portfolio (22%)
σ p represent Standard Deviation of return on fund (30%)
Let plug in the formula
M2= (18 - 6) * 22 / 30 - (14 - 6)
M2= (12 * 0.73 ) - 8
M2= 8.8 - 8
M2= 0.8%
Therefore the percent of the adjusted portfolio that would need to be invested in T-Bills is 0.8%
In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a.
central services
b.
peripheral services
c.
tertiary services
d.
core services
Lens Junction sells lenses for $44 each and is estimating sales of 16,000 units in January and 17,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 15 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,300 4,800 4,900 Direct materials: silicon 8,300 9,200 9,000 Direct materials: solution 11,000 12,200 12,900
Complete Question:
1. Prepare a sales budget. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX January February Expected Sales (Units) Sales Price per Unit Total Sales Revenue Total
2. Prepare a production budget. Lens Junction Production Budget For the Two Months Ending February 28, 20XX January February Expected Sales Total Required Units Required Production Total
3. Prepare direct materials budget for silicon. Lens Junction For the Two Months Ending Fabrant Materials, Purinat for Silinn February Expected Sales Total Required Units Required Production Total
4.Prepare direct materials budget for silicon.
Answer:
Lens Junction
1. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX
January February
Expected Sales (Units) 16,000 17,000
Sales Price per Unit $44 $44
Total Sales Revenue $704,000 $748,000
2. Lens Junction Production Budget For the Two Months Ending February 28, 20XX
January February
Expected Sales Total 16,000 17,000
Ending Inventory 4,800 4,900
Required Units 20,800 21,900
Beginning Inventory 4,300 4,800
Required Production Total 16,500 17,100
3 & 4. Lens Junction Direct Materials Budget For the Two Months Ending February
January February
Silicon Solution Silicon Solution
Expected Sales 32,000 48,000 34,000 51,000
Ending inventory 9,200 9,000 12,200 12,900
Total Required 41,200 57,000 46,200 63,900
Beginning inventory 8,300 11,000 9,200 12,200
Units Required 32,900 46,000 37,000 51,700
Explanation:
a) Data and Calculations:
Sales price of lenses per unit = $44
Estimated sales of lenses in January and February respectively = 16,000 and 17,000
Direct materials for each lense:
2 pounds of silicon at $2.50 per pound = $5.00
3 oz of solution at $3.00 per ounce = $9.00
Total cost of direct materials per unit = $14
15 minutes direct labor at $18 per hour = $4.50
Desired inventory levels:
Beginning inventory of finished goods:
January 4,300
February 4,800
March 4,900
Beginning inventory of direct materials:
Silicon Solution
January 8,300 11,000
February 9,200 12,200
March 9,000 12,900
In its first year, Barsky Corporation made charitable contributions totaling $30,000. The corporation's taxable income before any charitable contribution deduction was $250,000. In its second year, Barsky made charitable contributions of $15,000 and earned taxable income before the contribution deduction of $300,000. Assume neither year is 2020. Required: Compute Barsky's allowable charitable contribution deduction and its final taxable income for its first year. Compute Barsky's allowable charitable contribution deduction and its final taxable income for its second year
Answer:
Year 1:
total income before charitable contributions = $250,000
limit on charitable contributions = $250,000 x 10% = $25,000
taxable income after charitable contributions = $250,000 - $25,000 = $225,000
charitable contributions carried forward = $30,000 - $25,000 = $5,000
Year 2:
total income before charitable contributions = $300,000
limit on charitable contributions = $300,000 x 10% = $30,000
taxable income after charitable contributions = $300,000 - $15,000 - $5,000 = $280,000
Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 30,500 barrels of oil for purchase in June for $75 per barrel. Direct labor budgeted in the chemical process was $274,500 for June. Factory overhead was budgeted at $411,800 during June. The inventories on June 1 were estimated to be:
Oil $19,200
P1 12,900
P2 11,000
Work in process 15,900
The desired inventories on June 30 were:
Oil $21,100
P1 11,800
P2 10,400
Work in process 16,500
Required:
Use the preceding information to prepare a cost of goods sold budget for June.
Answer:
See below
Explanation:
Preparation of cost of goods sold budget for June
Finished goods inventory June 1
Working in process Inventory June 1
Direct materials
Direct materials inventory, June 1
Direct material purchases
Cost of direct materials available for sale
When the existing spot rate exceeds the exercise price, a call option is ____, and a put option is ____. Group of answer choices out of the money; in the money out of the money; out of the money in the money; in the money in the money; out of the money
Answer:
in the money; out of the money.
Explanation:
Secondary market can be defined as a market where various investors sell and buy securities from other investors.
Some examples of secondary market around the world are New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and National Stock Exchange (NSE).
On the other hand, the primary market refers to the market where these securities that are being sold are issued or created.
In trading and investment, a stock option can be defined as a contract that states that the buyer as the right to buy (call) or sell (put) an asset at a particular price at any time but necessarily obligational. Thus, it is strictly at the discretion of the buyer (investor).
Generally, in a long (buy) position, a buyer hopes that the price of stocks will rise because he or she will typically profit from a rise in price.
However, a short (buy) position, a buyer hopes that the price of stocks will fall because he or she will typically profit from a fall in price.
A spot rate is the cash or exchange rate placed on a contract in the stock exchange market.
When the existing spot rate exceeds the exercise price, a call option is in the money, and a put option is out of the money.
Answer:
a a b c
Explanation:
Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:
Tech Support Department $516,000
Purchasing Department 89,600
Other corporate administrative expenses 560,000
Total corporate expense $1,165,600
The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows:
Tech Support Purchasing
Consumer Division 375 computers 1,960 purchase prder
Commercial Division 225 3640
Total 600 computers 5,600 purchase order
The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:
Consumer Commercial
Revenues $7,430,000 $6,184,000
Cost of goods sold 4,123,000 3,125,000
Operating expenses 1,465,000 1,546,000
Required:
Prepare the divisional income statements for the two divisions.
Answer:
Yozamba Technology
Divisional Income Statements:
Consumer Commercial Total
Revenues $7,430,000 $6,184,000 $13,614,000
Cost of goods sold 4,123,000 3,125,000 7,248,000
Gross profit $3,307,000 $3,059,000 $6,366,000
Operating expenses 1,465,000 1,546,000 3,011,000
Corporate expenses:
Tech Support 322,500 193,500 516,000
Purchasing 31,360 58,240 89,600
Other corporate administrative expenses 560,000
Total expenses $1,818,860 $1,797,740 $4,176,600
Net income (loss) $1,488,140 $1,261,260 $2,189,400
Explanation:
a) Data and Calculations:
Corporate expenses for the year ended December 31, 20Y7:
Tech Support Department $516,000 Number of computers
Purchasing Department 89,600 Number of POs
Other corporate administrative expenses 560,000
Total corporate expense $1,165,600
Usage of Service:
Tech Support Purchasing
Consumer Division 375 computers 1,960 purchase order
Commercial Division 225 3,640
Total 600 computers 5,600 purchase order
Overhead Rates:
Tech Support = $860 per computer ($516,000/600)
Purchase = $16 per purchase order ($89,600/5,600)
Allocation of Corporate Expenses:
Tech Support Purchasing Total
Consumer Division $322,500 $31,360 353,860
(375 * $860) (1,960 * $16)
Commercial Division 193,500 58,240 251,740
(225 * $860) (3,640 * $16)
Total $516,000 $89,600 $605,600
The following statements provide some analysis of policy regarding the global financial crisis of the late 2000s. Categorize each statement as positive or normative. Statement Positive or Normative?
a. The financial crisis was caused by faulty mathematical models that encouraged excessive risk taking.
b. The lack of effective regulation contributed to a risk-seeking culture in the financial services industry.
c. Central banks should have imposed tighter regulations on banks to prevent the financial crisis.
d. Executives of banks that received financial assistance from the government should not have received bonuses.
Answer:
Positive statement
Positive statement
normative statement
normative statement
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, the statement - the lack of effective regulation contributed to a risk-seeking culture in the financial services industry- can be test empirically
Normative economics is based value judgements, opinions and perspectives. For example, the statement - Central banks should have imposed tighter regulations on banks to prevent the financial crisis- is based on opinion. Everyone would have an opinion on what the Central bank should have done
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 5,100,000 $ 9,100,000 $ 8,200,000 Average operating assets $ 1,020,000 $ 2,275,000 $ 1,640,000 Net operating income $ 214,200 $ 746,200 $ 118,900 Minimum required rate of return 17.00 % 32.80 % 14.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 19% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity
Answer:
1. Return on Investment = Net operating income (NOI)/Average operating assets (AOA) * 100
Division A = 21%
Division B = 32.8%
Division C = 7.25%
2. Residual income (loss) = Operating Income - (Operating Assets x Target Rate of Return)
Division A = $40,800
Division B = $0
Division C = ($110,700)
3-a. If performance is being measured by ROI, Divisions A and C will accept the opportunity, while Division B will reject it because the actual rate of return of 19% is less than the minimum required rate of return of 32.8%.
3-b. Divisions A and C will accept the opportunity, while Division B will reject it.
Explanation:
a) Data and Calculations:
Selected sales and operating data for three divisions of different structural engineering firms are given as follows:
Division A Division B Division C
Sales $ 5,100,000 $ 9,100,000 $ 8,200,000
Average operating assets $ 1,020,000 $ 2,275,000 $ 1,640,000
Net operating income $ 214,200 $ 746,200 $ 118,900
Minimum required rate of return 17.00 % 32.80 % 14.00 %
1. Return on Investment = Net operating income (NOI)/Average operating assets (AOA) * 100
= 21% 32.8% 7.25%
Division A = 21% ($214,200/$1,020,000 * 100)
Division B = 32.8% ($746,200/$2,275,000 * 100)
Division C = 7.25% ( $118,900/$1,640,000 * 100)
2. Residual income (loss) = Operating Income - (Operating Assets x Target Rate of Return)
Division A = $40,800 ($214,200 - ($1,020,000 * 17%) )
Division B = $0 ($746,200 - ($2,275,000 * 32.8%))
Division C =($110,700) ( $118,900 - ($1,640,000 * 14%))
Investment opportunity that would yield a 19% rate of return:
Division A Division B Division C
Sales $ 5,100,000 $ 9,100,000 $ 8,200,000
Average operating assets $ 1,020,000 $ 2,275,000 $ 1,640,000
Net operating income (19%) $ 193,800 $ 432,250 $ 311,600
Minimum required rate of return 17.00 % 32.80 % 14.00 %
3-a. If performance is being measured by ROI, Divisions A and C will accept the opportunity, while Division B will reject it because the actual rate of return of 19% is less than the minimum required rate of return of 32.8%.
3-b. Divisions A and C will accept the opportunity, while Division B will reject it.
Residual income (loss) = Operating Income - (Operating Assets x Target Rate of Return)
Division A = $20,400 ($193,800 - ($1,020,000 * 17%))
Division B = ($313,950) ($432,250 - ($2,275,000 * 32.8%))
Division C = $82,600 ($311,600 - ($1,640,000 * 14%))