Answer: $80,000
Explanation:
First, we'll need to calculate division 3's income from the increase in operations and this will be:
= (40000 × $5) - ($40000 × $3.20)
= $200,000 - $128,000
= $72000
Division 6 income from operation increase will be:
= 40000 × ($3.20 - $3.00)
= 40000 × 0.2
= $8000
Therefore, Square Yard Products Inc.'s total operating income will increase by:
= $72000 + $8000
= $80000
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 25,000 Variable expenses 17,500 Contribution margin 7,500 Fixed expenses 4,200 Net operating income $ 3,300 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income
Answer:
See
Explanation:
Selling price = $25,000/1,000 = $25
Variable cost = $17,500/1,000 = $17.5
1,001 units
Contribution margin income statement
Sales ($25,000 + $25)
$25,025
Less variable expenses
Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.
Fixed cost per unit $5.20
Variable cost per unit $10.81
Selling price per unit $34.55
Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Round answer to 2 decimal places.)
Minimum transfer price $ per unit
Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Round answer to 2 decimal places.)
Answer:
See below
Explanation:
1. If the small motor division has excess capacity,
Minimum transfer price = Variable cost + Opportunity cost
Variable cost per unit = $10.81
Add:
Opportunity cost per unit = $0.00 (Because the company has sufficient excess capacity)
Minimum transfer price = $10.81
2. If the small motor division has excess capacity,
Minimum transfer price = Variable cost + Opportunity cost
Variable cost per unit = $10.81
Add:
Opportunity cost per unit = $23.74 (As the company has no excess capacity, contribution lost is the opportunity cost)
Minimum transfer price = $34.55
N.B
Contribution lost = Selling price per unit - Variable cost per unit
= $34,55 - $10.8 = $23.74
A municipal power plant uses natural gas from an existing pipeline at an annual cost of $10,000 per year. A new pipeline would initially cost $35,000, but it would reduce the annual cost to $4000 per year. Assume an analysis period of 20 years and no salvage value for either pipeline. The interest rate is 7%. Using the equivalent uniform annual cost (EUAC), should the new pipeline be built
Answer: EUAC of new pipeline of $7,303.75 is less than the $10,000 of old pipeline so new pipeline should be built.
Explanation:
Equivalent Uniform Annual cost can be calculated as:
= Reduction in annual cost + (Initial Cost/ Present value interest factor of annuity, 7%, 20 years)
= 4,000 + (35,000 / 10.5940)
= 4,000 + 3,303.75
= $7,303.75
At the beginning of October, Bowser Co.’s inventory consists of 58 units with a cost per unit of $42. The following transactions occur during the month of October
October 4 Purchase 122 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30.
October 5 Pay cash for freight charges related to the October 4 purchase, $749.
October 9 Return 15 defective units from the October 4 purchase and receive credit.
October 12 Pay Waluigi Co. in full.
October 15 Sell 152 units of inventory to customers on account, $12,160. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $7 per unit for freight less $1 per unit for the purchase discount, or $56 per unit.]
October 19 Receive full payment from customers related to the sale on October 15.
October 20 Purchase 92 units of inventory from Waluigi Co. for $62 per unit, terms 3/10, n/30.
October 22 Sell 92 units of inventory to customers for cash, $7,360. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.)
Required:
Assuming that Bowser Co, uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions.
Answer:
Bowser Co.
Journal Entries:
Oct. 4:
Debit Inventory $6,100
Credit Accounts Payable (Waluigi Co.) $6,100
To record the purchase of goods, terms 2/10, n/30.
Oct. 5:
Debit Freight-in Expense $749
Credit Cash $749
To record the payment of freight for Oct. 4 purchase.
Oct. 9:
Debit Accounts Payable (Waluigi Co.) $750
Credit Inventory $750
To record the goods returned on account.
Oct. 12:
Debit Accounts Payable (Waluigi Co.) $5,350
Credit Cash $5,243
Credit Cash Discounts $107
To record the payment on account.
Oct. 15:
Debit Accounts Receivable $12,160
Credit Sales Revenue $12,160
To record the sale of goods on account.
Oct. 15:
Debit Cost of goods sold $8,512
Credit Inventory $7,600
Credit Freight-in $912
To record the cost of goods sold.
Oct. 19:
Debit Cash $12,160
Credit Accounts Receivable $12,160
To record the receipt of cash on account.
Oct. 20:
Debit Inventory $5,704
Credit Accounts Payable (Waluigi Co.) $5,704
To record the purchase of goods on account.
Oct. 22:
Debit Cash $7,360
Credit Sales Revenue $7,360
To record cash sales.
Oct. 22:
Debit Cost of goods sold $5,626
Credit Inventory $5,626
To record the cost of goods sold.
Explanation:
a) Data and Analysis:
Oct. 4: Inventory $6,100 Accounts Payable (Waluigi Co.) $6,100, terms 2/10, n/30.
Oct. 5: Freight-in Expense $749 Cash $749
Oct. 9: Accounts Payable (Waluigi Co.) $750 Inventory $750
Oct. 12: Accounts Payable (Waluigi Co.) $5,350 Cash $5,243 Cash Discounts $107
Oct. 15: Accounts Receivable $12,160 Sales Revenue $12,160
Oct. 15: Cost of goods sold $8,512 Inventory $7,600 Freight-in $912
Oct. 19: Cash $12,160 Accounts Receivable $12,160
Oct. 20: Inventory $5,704 Accounts Payable (Waluigi Co.) $5,704
Oct. 22: Cash $7,360 Sales Revenue $7,360
Oct. 22: Cost of goods sold $5,626 Inventory $5,626 ($56 * 13 + $62 * 79)
Indicate the correct statement about the effect of the Reynolds number on the character of the flow over an object. If the Reynolds number is low enough, then the effect of viscosity is so:___.
a. high that there is a region near the plate where the fluid is stationary.
b. increases, then the size of the region around the object that is affected by viscosity increases.
c. is high enough, then the effect of viscosity is negligible and the fluid flows over the plate without sticking to the surface.
d. increases, then the extent of the region around the object that is affected by viscosity decreases.
Answer: d. increases, then the extent of the region around the object that is affected by viscosity decreases.
Explanation:
Viscosity simply refers to the measure of the resistance of a fluid to a flow. The Reynolds number helps in the prediction of flow patterns.
If the Reynolds number increases, then the extent of the region around the object that is affected by viscosity decreases.
This morning, you purchased a seventeen-year, 6.45% annual coupon bond with face value of $1,000 at a price of $1,030.04. Just after purchasing the bond, the yield to maturity of the bond falls to 5.50 percent and stays at that level throughout your investment period. If you sell your bond after holding it for seven years, what will be your realized rate of return
Answer:
6.73%
Explanation:
the price of the bond in seven years is:
PV = $1,000 / (1 + 5.50%)¹⁰ = $585.43
PV of coupon payments = $64.50 x 7.538 (PVIFA, 5.5%, 10 years) = $486.20
market price = $1,071.63
using an excel spreadsheet of financial calculator, the annual rate of return:
year 0 = -1030.04
year 1 = 64.5
year 2 = 64.5
year 3 = 64.5
year 4 = 64.5
year 5 = 64.5
year 6 = 64.5
year 7 = 1136.13
IRR = 6.73%
One of the requirements for a patent is that the invention be new, or___________ . An invention will not satisfy this requirement if it has already received a ___________or been described in a printed publication, unless the publication was made by __________in the year before filing the patent application. In addition, if the invention was in public use, on__________ , or otherwise available to __________elsewhere in the world, the invention is not patentable.
Answer:
Novel; patent; the inventor; sale; public.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of
I. Trademarks.
II. Patents.
III. Copyright.
One of the requirements for a patent is that the invention be new, or novel. An invention will not satisfy this requirement if it has already received a patent or been described in a printed publication, unless the publication was made by the inventor in the year before filing the patent application. In addition, if the invention was in public use, on sale, or otherwise available to the public elsewhere in the world, the invention is not patentable.
Anchor Company purchased a manufacturing machine with a list price of $91,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $3,400. Anchor paid $4,800 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $6,200 for the first year of operations. What is the cost of the machine
Answer:
$103,580
Explanation:
The Cost of Machine according to IAS 16 include Purchase costs less trade discounts and rebates plus any direct costs incurred to put the asset in the location and condition intended for use by management.
Calculation of the Cost of Machine
Purchase Price $91,000
Cash discount $91,000 x 2% ($1,820)
Transport Cost $3,400
Installation and testing costs $4,800
Insurance costs $6,200
Total Cost $103,580
Therefore,
the cost of the machine is $103,580
Hillary graduates from law school and gets a position in a law firm. At the same time the price of hamburger falls while other food prices have stayed the same. She notices that she buys less hamburger than she did before. Is she violating the law of demand?
Answer:
no, since other things are not held constant, including her income
Explanation:
The law of demand states that price has an inverse relationship with quantity demanded of a good. As price increases the demand reduces, and as price decreases quantity demanded increases.
However this is true when all other factors reman constant.
In the given scenario the price of hamburger has fallen but Hilary buys less of it. This looks like a violation of the law of demand, but her income has changed so the law of demand may not hold here.
All factors do not remain constant.
Hilary's behaviour can be explained by the concept income effect. Where an increase in income leads to the consumer buying more of expensive goods than cheaper ones.
As a result of a thorough physical inventory, Sheridan Company determined that it had inventory worth $320800 at December 31, 2020. This count did not take into consideration the following facts: Herschel Consignment currently has goods worth $46300 on its sales floor that belong to Sheridan but are being sold on consignment by Herschel. The selling price of these goods is $74900. Sheridan purchased $22000 of goods that were shipped on December 27, FOB destination, that will be received by Sheridan on January 3. Determine the correct amount of inventory that Sheridan should report.
Answer:
Sheridan Company
The correct amount of inventory that Sheridan should report is:
= $367,100
Explanation:
a) Data and Calculations:
December 31 Inventory based on physical inventory = $320,800
Goods held on consignment by Herschel = 46,300
December 27, FOB destination goods ($22,000) 0
Correct amount of inventory that Sheridan should report $367,100
b) Goods on consignment are generally the property of the consignor (supplier) and not the consignee's (retailer's). Therefore, they must appear in the balance sheet of the consignor. Goods on FOB destination remain the property of the supplier until they reach the buyer's destination. This is why it is not included above.
During 2018, Raines Umbrella Corp. had sales of $763,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $462,000, $103,000, and $148,500, respectively. In addition, the company had an interest expense of $73,800 and a tax rate of 22 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.)
a. What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.)
b. What is the company's operating cash flow? (Do not round intermediate calculations.)
Answer and Explanation:
The computation is shown below;
a. The net income or loss for the year 2018 is
Sales $763,000
Less: COGS $462,000
Less: A&S expenses $103,000
Less: Depreciation $148,500
EBIT $49,500
Less: Interest $73,800
Taxable income -$24,300
Less: Taxes(22%) $0
Net income(loss) -$24,300
Net loss = $24,300
b. The operating cash flow is
OCF = EBIT + Depreciation - Taxes
= $49,500 + $148,500 - $0
= $198,000
Answer each of the following independent questions. Required: Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $88,000 cash immediately, (2) $34,000 cash immediately and a six-period annuity of $9,300 beginning one year from today, or (3) a six-period annuity of $18,400 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.1 Assuming an interest rate of 7%, determine the PV value for the above options.
1.2 Which option should Alex choose? Option (1) Option (2) Option (3)
2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2022. Weimer will make annual deposits of $175,000 into a special bank account at the end of each of 10 years beginning December 31, 2013. Assuming that the bank account pays 8% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2022?
Table of calculation function?
Payment?
N?
I?
Future value?
Answer:
option 1
$4,056,237.49
Explanation:
To determine the better option, we have to determine the present value of options 2 and 3
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
option 2
Cash flow in year 0 = $34,000
Cash flow in year 1 to 6 = $9,300
I = 7 %
PV = 78,328.82
Option 2
Cash flow in year 1 to 6 = $$18,400
I = 7 %
PV = 87704.33
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
It is the first option that has the highest value
The formula for calculating future value = A / annuity factor
Annuity factor = {[(1+r) n] - 1} / r
P = Present value
R = interest rate
N = number of years
the primary reason business owners make investments and take risks in a private enterprise system is to
a. make a profit
b. satisfy customer needs
C. develop new products
d. meet government requirements
Answer:
I don't do business but I think it would be to a
The primary reason as to why the business owners make investments and take risks in a private enterprise system is to make a profit. Therefore, the option A holds true.
What is the significance of profit-making?A profit making activity can be referred to or considered as an activity that is conducted by an individual or an organization, where the primary motive of such activity is to ensure profits by using the factors of production as such.
Apart from a non-profit organization, all the other businesses and enterprises conduct business activities in the regular course of conduct, because business is a profit-making activity throughout the period of its existence.
Therefore, the option A holds true and states regarding the significance of a profit-making activity.
Learn more about profit-making activity here:
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A business must decide whether to open a new office in China. If it opens the
branch, it will increase its chances of selling a high volume of its products in
China. On the other hand, the business will have to spend a lot of money to
make the branch operational.
What would be an opportunity cost for the business if it chooses not to open
the new branch in China?
O A. The business would increase its marginal benefits on each
product it makes
O B. The business would lose the chance to make more money in
China.
O C. The business would have to open a new branch in a different
country
O D. The business would be able to use the money it saves on other
projects.
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102. Assuming that no interest is payable, make the entry to record the redemption. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Dr Bonds payable 1,600,000
Dr Loss on redemption of bonds 36,800
Cr Cash 1,632,000
Cr Discount on bonds payable 4,800
Explanation:
Loss/gain on redemption of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss
Adjustment for Accrued Expense
Joos Realty Co. pays weekly salaries of $17,250 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry assuming that the accounting period ends on Tuesday.
If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6
Answer and Explanation:
The adjusting entry is shown below:
Salary expense Dr ($17,250 ÷ 5 days × 2 days) $6,900
To Salary payable $6,900
(Being salary expense is recorded)
here salary expense is debited as it increased the expense and credited the salary payable as it also increased the liabilities
AP* Price discrimination occurs when differences in a product's price reflect differences in marginal costs differences in a product's price reflect differences in marginal costs a products's average cost is greater than its average revenue a products's average cost is greater than its average revenue differences in a product's price do not reflect differences in costs of production differences in a product's price do not reflect differences in costs of production a product's average cost is less than its average revenue a product's average cost is less than its average revenue the supply of the product is elastic
Answer:
differences in a product's price do not reflect differences in costs of production.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
One of the importance associated with the pricing of products is that, it improves the image of a business firm.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
This ultimately implies that, price discrimination occurs when differences in a product's price do not reflect differences in costs of production.
On January 1, 2019, Metco Inc. reported 268,000 shares of $5 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 3,000 shares of its common stock at a price of $38.00 per share. On August 19, 2019, 610 of these treasury shares were sold for $46.50 per share. Metco's directors declared cash dividends of $0.40 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. Calculate the number of shares of stock issued in the stock dividend.
Answer:
The number of shares of stock issued in the stock dividend is 5,312.20 shares.
Explanation:
This can be determined as follows:
Number of shares before stock dividend = Number of shares reported on January 1, 2019 - Number of shares purchased for its treasury on March 24, 2019 + Number of treasury shares were sold on August 19, 2019 = 268,000 - 3,000 + 610 = 265,610
Number of dividend shares = Number of shares before stock dividend * Rate of stock dividend issued = 265,610 * 2% = 5,312.20
Therefore, the number of shares of stock issued in the stock dividend is 5,312.20 shares.
Matching Definitions with Information Releases Made by Public Companies Following are the titles of various information releases. Match each definition with the related release by entering the appropriate letter in the space provided.
Definitions Information Release
Report of special events (e.g., auditor changes, mergers) (1) Form 10-Q
filed by public companies with the SEC.
Brief unaudited report for quarter normally containing (2) Quarterly report
summary income statement and balance sheet.
Quarterly report filed by public companies with the SEC (3) Press release
that contains additional unaudited financial information.
Written public news announcement that is normally (4) Annual report
distributed to major news services.
Annual report filed by public companies with the SEC (5) Form 10-K
that contains additional detailed financial information.
Report containing the four basic financial statements for (6) Form 8-K
the year, related notes, and often statements by
management and auditors.
Answer:
1. Form 10-Q ⇒ Quarterly report filed by public companies with the SEC that contains additional unaudited financial information.
2. Quarterly report. ⇒ Brief unaudited report for quarter normally containing! summary income statement and balance sheet.
3. Press release ⇒ Written public news announcement that is normally distributed to major news services.
4. Annual report ⇒ Report containing the four basic financial statements to the year, related notes, and often statements by management and auditors.
5. Form 10-K ⇒ Annual report filed by public companies with the SEC that contains additional detailed financial information.
6. Form 8-K ⇒ Report of special events (e.g., auditor changes, mergers) filed by public companies with the SEC.
The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed. The costs must be broken into their fixed and variable elements so that the cost behavior of the power usage activity can be properly described. Machine hours have been selected as the activity driver for power costs. The following data for the past eight quarters have been collected:
Quarter Machine Hours Power cost
1 20000 26000
2 25000 38000
3 30000 42500
4 22000 37000
5 21000 34000
6 18000 29000
7 24000 36000
8 28000 40000
1. Prepare a scattergraph by plotting power costs against machine hours. Does the scattergraph show a near relationship between machine hours and power cost?
2. Using the high and low points (i.e., the high-low method), compute a power cost formula.
3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination.
Answer:
Explanation:
1-a See the attached photo for the a scattergraph.
1-b. Yes, the scattergraph show a near relationship between machine hours and power cost.
2. The power cost formula using the high and low points is as follows:
Total power cost = -7000 + (1.65 * Machine hours)
3-a. The power cost formula using the method of least squares is as follows:
Total power cost = 6454 + (1.21 * Machine hours)
3-b. R² = Coefficient of determination = 0.8969, or 89.69%
Explanation
1-a. Prepare a scattergraph by plotting power costs against machine hours.
Note: See the attached photo for the a scattergraph by plotting power costs against machine hours.
1-b. Does the scattergraph show a near relationship between machine hours and power cost?
Note that Scattergraph is interpreted by looking by looking for trends in the data as there is movement from left to right.
From the attached a scattergraph, it can be observed that there is an uphill pattern as there is a movement from left to right. This indicates that there a near positive relationship between power costs against machine hours.
Therefore, the scattergraph show a near relationship between machine hours and power cost.
2. Using the high and low points (i.e., the high-low method), compute a power cost formula.
2-a. Calculation of variable cost elements
Variable cost per machine hour = (Highest Power Costs - Lowest Power Costs) / (Highest machine hours – Lowest machine hours) = (42500 - 26000) / (30000 - 20000) = 1.65 per hour
2-b. Calculation of fixed cost elements
Total power cost = Total Fixed Cost + Total Variable Cost ................. (1)
Where;
Total Variable Cost = Variable cost per machine hour * Machine hours ……….. (2)
Substitute equation (2) into equation (1), we have:
Total power cost = Total Fixed Cost + (Variable cost per machine hour * Machine hours) ……………………. (3)
Using highest machine hours and substitute relevant values into equation (3), we have:
42500 = Total Fixed Cost + (1.65 * 3000)
42500 = Total Fixed Cost + 49,500
Total Fixed Cost = 42500 - 49,500
Total Fixed Cost = -7000
2-c Computation of a power cost formula
Substituting Variable cost per machine hour = 1.65 and Total Fixed Cost = -7000 into equation (3), we can compute the power cost formula as follows:
Total power cost = -7000 + (1.65 * Machine hours) ………………. (4)
Equation is the power cost formula.
3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination.
Note: See the attached excel file for the calculations of Total of Machine Hours (x), Power cost (y), xy, x^2, and y^2.
Since Σ = Total of or summation of, we can therefore obtain the following from the attached excel file:
Σx = 190,800
Σy = 282,500
Σxy = 6,878,400,000
Σx² = 4,666,540,000
Σy² = 10,188,250,000
N = Number of quarters = 8
3-a. Use the method of least squares to compute a power cost formula
Step 1: Calculation of variable cost per rental return
To calculate the variable power cost per machine hour, the following formula is used:
Variable power cost per machine hour = (NΣxy − ΣxΣy) /((NΣx²) − (Σx)²) ……………… (5)
= (Σxy – (1/8)ΣxΣy) /((Σx²) – (1/8)(Σx)²)
=(6,878,400,000 – ((1/8) * 190,800 * 282,500)) / (4,666,540,000 – ((1/8) * 190,800²))
Substituting the relevant values into equation (5), we have:
Variable cost per rental return = ((8 * 6,878,400,000) - (190,800 * 282,500)) /((8 * 4,666,540,000) - 190,800²)
Variable power cost per machine hour = 1.21
Step 2: Calculation of quarterly fixed power cost
This can be calculated using the following formula:
Fixed Cost per quarter = {Σy - (Variable power cost per machine hour * Σx) / N ....... (6)
Substituting the relevant values into equation (6), we have:
Fixed Cost per quarter = (282,500 - (1.21 * 190,800)) / 8
Fixed Cost per quarter = 6,454
Step 3: Computation of the power cost formula
Substituting Variable cost per machine hour = 1.21 and Total Fixed Cost = 6,454 into equation (3) in part 2 above, we can compute the power cost formula as follows:
Total power cost = 6454 + (1.21 * Machine hours) ………………. (4)
Equation (4) is the power cost formula.
3-b. Evaluate the coefficient of determination.
This can be evaluated using the following formula:
R² = Coefficient of determination = (NΣxy – ΣxΣy) / ((NΣx² - (Σx)²) * (NΣy² - (Σy)²))^0.5 ……….. (5)
Substituting the relevant values into equation (5) we have:
R² = ((8 * 6,878,400,000) – (190,800 * 282,500)) / (((8 * 4,666,540,000) – 190.800²) * ((8 * 10,188,250,000) – 282,500²))^0.5
R² = 0.8969, or 89.69%
Suppose you have to wait in line to purchase a soft drink at a Missouri State - Tulsa football game. The drink costs one dollar. While waiting in line, you hear the crowd roar as someone scores a touchdown. While running back to your seat, you fall and spill your drink on another spectator. What is your opportunity cost for the drink?
A. the cost of the drink plus the lost enjoyment of not seeing Missouri State score another touchdown (it couldn't have been Tulsa)
B. the cost of the drink, the lost enjoyment of not seeing the Missouri State touchdown, your thirst (you didn't get a drink), and the discomfort (to the other spectator) of sitting in the sun with wet, sticky clothing
C. the lost enjoyment of not seeing the Missouri State touchdown, your thirst (you didn't get a drink), and the discomfort (to the other spectator) of sitting in the sun with wet, sticky clothing
D. the lost enjoyment of not seeing the Missouri State touchdown, your thirst (you didn't get a drink), and your discomfort (assuming the other spectator responded by throwing his drink in your lap) of sitting in the sun with wet, sticky clothing
A publishing house is using 400 printers and 200 printing presses to produce books. The printers' wage rate is $20 and the price of a printing press is $100. The last printer added 20 books to total output, while the last press added 50 books to total output. In order to maximize the number of books published with a budget of $28,000, the publishing house
Answer:
The publishing house is not using cost minimizing combination of printers and printing press.
Explanation:
The publishing house go towards more of printers and less of printing press because the cost of printing price is almost three times higher than the cots of printers. Also the output of printing press is lower and the output of printers is almost double. The publishing house should use such a combination of both the available resources which maximizes its revenue.
Roberta transfers property with a tax basis of $495 and a fair market value of $546 to a corporation in exchange for stock with a fair market value of $356 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $190 on the property transferred. What is the amount realized by Roberta in the exchange
Answer: $546
Explanation:
The amount realized by Roberta in the exchange will be gotten through the addition of the fair value of the stock that was acquired to the liability that's assumed by the corporation. This will be:
Fair value of stock acquired = $356
Add: Liability assumed by corporation = $190
Amount realised = $356 + $190 = $546
You and your friends want to buy a condo at the beach to time share. Each of you has single peaked preferences with a most preferred value that you are willing to spend. These values are: Mabel, $10,000; Gertrude, $20,000; Myron, $30,000; Wilber, $40,000; and you, $50,000. The condo costs $150,000. Explain how to implement a uniform rule mechanism to allocate costs and shares.
Answer:
Individual Cost Shares to be enjoyed
Mabel $10,000 10000 / 150000 = 6.67%
Gertrude $20000 20000 / 150000 = 13.3%
Myron $30000 30000 / 150000 = 20%
Wilber $40000 40000 / 150000 = 26.6%
You $50000 50000 / 150000 = 33.3%
Explanation:
peaked preferences
Most preferred value to spend :
Mabel = $10,000
Gertrude = $20,000
Myron = $30,000
Wilber = $40,000
you = $50,000
cost of Condo = $150,000
Implementing a Uniform rule mechanism to allocate costs and shares
The uniform rule ; ∑ j∈I Uj (p) = Ω.
where Ω = fixed amount of resource
hence the summation of all allotment should = Ω ( $150,000 )
Number of friends = 5
cost of condo = $150,000
If divide equally each person will have to pay ; $150,000 / 5 = $30,000
Total money to be spent by friends = 10,000 + 20,000 + 30,000 + 40,000 + 50,000 = $150,000
Individual Cost shares to be enjoyed
Mabel $10,000 10000 / 150000 = 6.67∑%
Gertrude $20000 20000 / 150000 = 13.3%
Myron $30000 30000 / 150000 = 20%
Wilber $40000 40000 / 150000 = 26.6%
You $50000 50000 / 150000 = 33.3%
∑shares ≈ 100% ( 150,000 )
On January 1, 2019, Tonika Company issued a four-year, $10,700, 7% bond. The interest is payable annually each December 31. The issue price was $10,018 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense?
A. Interest expense 1,052
Bond discount 205
Cash 847
B. Interest expense 847
Cash 847
C. Interest expense 805
Bond discount 42
Cash 847
Answer:
C. Interest Expense 805
Bond discount 42
Cash 847
Explanation:
The interest expense is calculated based on effective interest rate. The issue price is 10,018 which is the actual price and with effective interest rate interest amount is determined. The interest expense has cash value and bond discount.
10,018 * 8% = 804.45 approximately 805.
A company pays its employees $3,850 each Friday, which amounts to $770 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:
Answer:
$3080
Explanation:
Calculation to determine what the amount of salaries earned but unpaid at the end of the accounting period is:
Salaries earned but unpaid at the end of the accounting period =3850-$770
Salaries earned but unpaid at the end of the accounting period =$3080
Both __________ and __________ affect the awareness and motivation of a firm to undertake actions and responses. a. first-mover advantages; corporate size b. market commonality; resource similarity c. management capabilities; competitive analysis d. speed of management decisions; management actions
Answer:
b. market commonality; resource similarity
Explanation:
The two things that can impact the awareness and the motivation so that the firm could take the actions and responses is that the market commodity where the company deals with and the similarity of the resources. These two things would be required that can impact the awareness and the motivation level of the firm
hence, the option b is correct
Data on the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) for each of 992 senior managers at CPA firms are saved in CORSUS.txt
a) Construct a histogram for the data and use it to evaluate the validity of the normality assumption.
b) Obtain the mean and standard deviation for the data and use these statistics to evaluate the validity of the normality assumption.
c) Obtain the interquartile rage for the data and use these statistics to evaluate the validity of the normality assumption
Answer:
A) attached below
B) mean value = 67.755, std = 26.871
C) IQR( interquartile range ) = 37
Explanation:
A) Construct a histogram for the data and use it to evaluate the validity of normality assumption
Using Minitab to construct the Histogram from the shape of the Histogram we can see that the Normality assumption is valid because the shape is fairly symmetric
screenshot of Histogram is attached below
B) Obtain the mean and standard deviation for the data and use these statistics to evaluate the validity of the normality assumption.
still using Minitab to determine the std and mean values
mean value = 67.755, std = 26.871
Next : find the percentage of the observation that lie within 1,2 and 3 std from the mean
For one(1) std from the mean the interval = ( 40.884, 94.626 )
percentage of observation = 665 / 992 = 67.04
For two(2) std from the mean; The interval = ( 14.013 , 121.497 )
percentage of observation = 946 / 992 = 95.36%
For three(3) std from the mean ; The interval = ( -12.858, 148.368 )
percentage of observations = 991 / 992 = 99.90%
The percentages from the above calculations indicates the validity of the normality assumption
C) Obtain the interquartile rage for the data and use these statistics to evaluate the validity of the normality assumption
using MINITAB
since the data are assumed Normal; Ratio = [tex]\frac{IQR}{S} = 1.3[/tex]
std (s) = 26.871, IQR( interquartile range ) = 37
Next check if IQR / S will be = 1.3
= 37 / 26.871 = 1.377 ( This validates the normality assumption )
Windsor Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance for Doubtful Accounts $3,350 Sales Revenue (all on credit) 834,000 Sales Returns and Allowances 53,540 Prepare the journal entry to record bad debt expense assuming Windsor Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Acc
Answer:
See below
Explanation:
1.
Bad debts ($145,600 × 4/100) = $5,824 - $3,350 = $4,000 Dr
...................To Allowance for doubtful account $4,000 Cr
(To record the estimation of 4% of bad debts on gross account receivable after adjusting the credit balance)
2.
Bad debts ($145,600 × 4/100) = $5,824 + $3,350 = $9,174 Dr
..............To Allowance for doubtful accounts $9,184 Cr
(To record 4% of account receivable but allowance for doubtful account).
explain the difference between production control and production planning
Answer:
Planning of the manufacturing process is deciding in advance what to do, how to do, when to do it and who is to do it. Controlling of the manufacturing process measures the digression of actual performance from the standard performance and takes corrective actions.
Explanation: