Answer:
$0
Explanation:
There is a provision that if the tax received on the money with respect to the valuation of the property is more than the $14,000 the same is to be taxable
Since there is $14,000 worth so no tax collection could be made on the gift amount
If the gift amount exceeds $14,000 the same is to be taxable
So the gift tax in 2016 would be $0
Variable costs as a percentage of sales for Lemon Inc. are 74%, current sales are $697,000, and fixed costs are $178,000. How much will operating income change if sales increase by $46,300
Answer:
Effect on income= $12,038 increase
Explanation:
Giving the following information:
Variable costs as a percentage of sales for Lemon Inc. are 74%
How much will operating income change if sales increase by $46,300.
To calculate the effect on income, we need to calculate the increase in total contribution margin:
Total contribution margin change= 46,300*(1-0.74)
Total contribution margin change= $12,038 increase
Effect on income= $12,038 increase
The table below represents how Marco feels about chocolate candy bars.
a. Fill in the missing values for total and marginal utility.
Marco's Utility
Chocolate Candy Bars Total Utility (utils) Marginal Utility (utils)
0 0 —
1 25
2 17
3 54
4
5 66 4
6 –1
b. Suppose Marco currently has two candy bars. You tell Marco you will give him either a soda, which gives him 22 utils of happiness, or two additional candy bars. Which is he likely to prefer?
options soda or two extra candy bars
Answer:
A. Chocolate Candy Bars Total Utility (utils) Marginal Utility (utils
0 0 —
1 25 25
2 42 17
3 54 12
4 62 8
5 66 4
6 65 –1
2. Soda
Explanation:
A.Chocolate Candy Bars Total Utility (utils) Marginal Utility (utils)
0 0 —
1 25 25
2 42 17
3 54 12
4 62 8
5 66 4
6 65 –1
1. In a situation where the consumption go up from 0 to 1, this means that total utility will from 0 to 25.
Therefore the , marginal utility will be 25 (25 – 0).
2. Total utility will be 42(25+17)
3. Marginal utility will be 12 (54-42)
4. The total utility for quantity of 5 is 66, while the marginal utility is 4.
Hence the total utility will be 62 (66 – 4) while marginal utility will be 4(12-8)
6. Total utility will be 65(66-1)
B. Based on( A )above Marco already has two candy bars, which gave him a total utility of 42 this means that when we Add soda his utility would increase to 64 (42 + 22)
And in a situation where he consumes four candy bars which is 2 candy bars + another 2 extra candy bars this means his utility will be only 62.
Based on this Soda will be the preferred one
Bramble Woodcrafters sells $202,300 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable. Bramble estimates the fair value of the recourse liability to be $8,710. Prepare the journal entry for Bramble to record the sale.
Answer:
Dr Cash $184,093
Dr Due from Factor $8,092
Dr Loss on Sale of Receivables $18,825
Cr Accounts Receivable $202,300
Cr Recourse Liability $8,710
Explanation:
Preparation of the journal entry for for Bramble to record the sale.
Dr Cash $184,093
$202,300 – [$202,300 * (.05 + .04)]
$202,300-(202,300*0.09)
$202,300-$18,207
=$184,093
Dr Due from Factor $8,092
($202,300 *.04)
Dr Loss on Sale of Receivables $18,825
(184,093+8,092-$211,010)
Cr Accounts Receivable $202,300
Cr Recourse Liability $8,710
(Accounts Receivable $202,300 + Recourse Liability $8,710 =$211,010)
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at auction for a price of $10,371,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,497,500.
What was his annual rate of return on this sculpture? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Annual rate of return %
Answer:
-4.25%
Explanation:
purchase price in 1999 = $12,497,500
purchase price in 2003 = $10,371,500
annual rate of return = {[($10,371,500 - $12,497,500) / $12,497,500] / (2003 - 1999)} x 100 = (-0.170114 / 4) x 100 = -4.25%
the annual rate of return refers to how much money you win or loss with an investment during a year. In this case, the investor lost $2,126,000 in 4 years, which resulted in a total loss of 17.01% for the whole period.
Regina recently landed her dream job at a local clothes outlet. Within a few weeks of working in her new employment, however, Regina began to engage in fraud. Regina committed the fraud by doing the following:
When people returned merchandise, Regina would ring up an amount that was greater than the value of the item that was being returned. Regina would then pocket the extra cash and give the customer the amount due. Regina found this method of fraud very effective because people were, in reality, returning something and inventory and register totals wouldn't be out of balance at the end of the day.
Required:
1. What type of fraud is Regina committing?
2. How could her employer detect this kind of fraud?
Answer:
Fraudulent disbursements,
card statement review
Explanation:
Fraudulent disbursements are very common and occur when an employee misappropriates company funds by making inappropriate payments, fraudulent. They are also called on-book frauds and can only be traced by putting systems that keep these practices in check. The most likely way to have caught the employee in the above case was to review the card statement and review purchases made and to what amount the refund from the company's card was made
Watson consulting, llc is a consultancy to consultants. They have bonds which have a face value of $1,000. The bonds carry a 3.5 percent semi-annual coupon, and mature in 10 years. What is the current price of these bonds if the yield to maturity (the going market rate, rd) is 5 percent
Answer:
The current market price is $ 883.08
Explanation:
The current market price can be ascertained using the pv excel function as follows:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield to maturity which is 5%/2
nper is the number of semiannual coupons in the bond i.e 10*2=20
pmt is the semiannual coupon=3.5%*1/2*$1000=$17.5
fv is the face value of the bond
=-pv(5%/2,20,17.5,1000)=$ 883.08
_______ is a political strategy for managers to exercise power unobtrusively. Controlling uncertainty Being irreplaceable Generating resources Building alliances Relying on objective information
Answer:
Controlling uncertainty
Explanation:
The following data are for Paso Robles Company for the year ended 2009 December 31: Costs: Direct material $ 90,000 Direct labor 130,000 Manufacturing overhead: Variable 45,000 Fixed 90,000 Sales commissions (variable) 25,000 Sales salaries (fixed) 20,000 Administrative expenses (fixed) 35,000 Selling price per unit $ 10 Units produced and sold 60,000 Assume direct materials and direct labor are variable costs. Prepare a contribution margin income statement and a traditional income statement.
Answer:
Net operating income= 165,000
Explanation:
Giving the following information:
We need to make a contribution format income statement.
First, we will calculate the total variable cost:
Direct material= 90,000
Direct labor= 130,000
Variable overhead= 45,000
Sales commissions (variable)= 25,000
Total variable cost= 290,000
Contribution margin income statement:
Sales= 60,000*10= 600,000
Total variable cost= (290,000)
Total contribution margin= 310,000
Fixed overhead= (90,000)
Sales salaries (fixed)= (20,000)
Administrative expenses (fixed)= (35,000)
Net operating income= 165,000
Proposal preparation is completed by Select one: a. a large team for a simple project. b. a single person when proposing a multimillion-dollar project. c. a proposal manager regardless of the project size. d. one or more people depending upon the requirements of the proposal.
Answer:
d. one or more people depending upon the requirements of the proposal.
Explanation:
A proposal can be defined as a plan or suggestion which are formally written to present an idea to an individual or organization for consideration.
Proposal preparation is completed by one or more people depending upon the requirements of the proposal.
In order to prepare a good proposal, it is very important to make it as formal as possible. The content of the proposal is strictly based on what the initiators wants to do or achieve, as well as how they wish to achieve.
Hence, a proposal is only prepared with regard to the requirements of the proposal and the number of people involved. Proposals are usually used by project managers or contractors seeking for a contract.
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports - the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below:
Fixed Cost per Month Cost per Course Cost per Student
Instructor wages $2,910
Classroom supplies $310
Utilities $1,250 $55
Campus rent $4,900
Insurance $2,100
Administrative expenses$3,600 $42 $3
For example, administrative expenses should be $3,600 per month plus $42 per course plus $3 per student. The company's sales should average $870 per student.
The actual operating results for September appear below:
Actual
Revenue $52,780
Instructor wages $10,920
Classroom supplies $19,690
Utilities $1,880
Campus rent $4,900
Insurance $2,240
Administrative expenses $3,386
Required:
1. The Gourmand Cooking School expects to run four courses with a total of 64 students in September. Complete the company's planning budget for this level of activity.
2. The school actually ran four courses with a total of 56 students in September. Complete the company?s flexible budget for this level of activity.
3. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Answer:
The Gourmand Cooking School
1. Planning Budget for 4 courses and 64 students:
Fixed Cost Cost Cost Total
per month per Course per Student
Instructor wages $2,910 x 4 $11,640
Classroom supplies $310 x 64 19,840
Utilities $1,250 $55 x 4 1,470
Campus rent $4,900 4,900
Insurance $2,100 2,100
Administrative
expenses $3,600 $42 x 4 $3 x 64 3,960
Total expenses $43,910
Sales Revenue $870 x 64 $55,680
Operating profit $11,770
2. Flexible Budget for 4 courses and 56 students:
Fixed Cost Cost Cost Total
per month per Course per Student
Instructor wages $2,910 x 4 $11,640
Classroom supplies $310 x 56 17,360
Utilities $1,250 $55 x 4 1,470
Campus rent $4,900 4,900
Insurance $2,100 2,100
Administrative
expenses $3,600 $42 x 4 $3 x 56 3,936
Total expenses $41,406
Sales Revenue $870 x 56 $48,720
Operating profit $7,314
3. Flexible Budget Performance Report for September:
Actual Flexible Budget Variance
Cost Revenue Cost Revenue
Revenue $52,780 $48,720 $4,060 F
Instructor
wages $10,920 $11,640 720 F
Classroom
supplies 19,690 17,360 2,330 U
Utilities 1,880 1,880 0 None
Campus rent 4,900 4,900 0 None
Insurance 2,240 2,240 0 None
Administrative
expenses 3,386 3,386 0 None
Total
expenses $43,016 43,016 $41,406 41,406 1,610 U
Operating income $9,764 $7,314 2,450 F
Explanation:
a) Data:
1. Cost Formulas:
Fixed Cost Cost Cost Total
per month per Course per Student
Instructor wages $2,910
Classroom supplies $310
Utilities $1,250 $55
Campus rent $4,900
Insurance $2,100
Administrative
expenses $3,600 $42 $3
Sales Revenue $870
2. Actual operating results for September:
Revenue $52,780
Instructor wages $10,920
Classroom supplies 19,690
Utilities 1,880
Campus rent 4,900
Insurance 2,240
Administrative expenses 3,386
Total expenses $43,016 43,016
Operating income $9,764
3. Budget planning is an important aspect of managing The Gourmand Cooking School. It helps to make some educated forecasts about its future activities, performance, and position. With it, actual performances and positions can be compared and across different units of the organization. Budget planning and its performance reporting aid management in controlling the organization towards achieving its goals. It also creates motivation, propelling the organization toward a better future.
Live Preview, found in the Font group, uses which method for seeing different font sizes without committing to them?
double-clicking the sizes on the Size drop-down list
pointing the mouse pointer to the sizes on the Size drop-down list
Oright-clicking the cell and clicking Preview Size on the drop-down list
clicking the sizes on the Size drop-down list
Answer:
pointing the mouse pointer to the sizes on the Size drop-down list
Live preview is the feature inbuilt in various new gadgets, Words, and Excel. It enables the user to preview the type of font, the color, the table style, the cell style, the number style, and many more without making the changes in the existing files.
The correct option is "pointing the mouse pointer to the sizes on the Size drop-down list".
The method or the way by which the font group can be live previewed is by simply pointing the mouse pointer over the toolbar where the font group is displayed under the Home tab. The pointer is simply dragged to various font sizes to see the live preview of each font style.
To know more about live preview, refer to the link:
https://brainly.com/question/20761178
If you deposit $1000 in a bank account that pays 12% interest compounded annually, how much would be in your account after 6 years?
Answer:
The amount in the account after 6 years is $ 1,973.82
Explanation:
The future value at year 6 can be computed using the future value formula below:
FV=PV*(1+r)^n
PV is the amount deposited which is $1000
r is the interest rate of 12%
n is the number of years which is 6
FV=$1000*(1+12%)^6
FV=$1000*1.973822685
FV=$ 1,973.82
The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016:
Number of Days Unpaid Total Accounts Receivable Historical % Uncollectible
Not yet due $128,200 3%
1-30 days past due $90,900 13%
31-60 days past due $55,300 19%
Over 60 days past due $33,500 37%
Required:
a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,457 on July 31, 2016. Prepare the required adjusting entry to record Bad Debt Expense for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b. Johnston Supplies, Inc. writes off $3,251 of uncollectible accounts on August 15, 2016. Prepare the required adjusting entry to record the write-off. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15
Answer:
a. June 30, 2016 adjusting entry for bad debt expense
Dr Bad debt expense 9,108
Cr Allowance for doubtful accounts 9,108
b. August 15, 2016, uncollectible accounts are written off
Dr Allowance for doubtful accounts 3,251
Cr Accounts receivable 3,251
c. Allowance for doubtful accounts
debit credit
June 30, 2016 $38,565
August 15, 2016 $3,251
August 15, 2016 $35,314
Explanation:
Number of Days Total Accounts Historical % Total
Unpaid Receivable Uncollectible
Not yet due $128,200 3% $3,846
1-30 days past due $90,900 13% $11,817
31-60 days past due $55,300 19% $10,507
Over 60 days past due $33,500 37% $12,395
Total $38,565
definition of home trade
Answer:
Domestic trade, also known as internal trade or home trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail
A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. The management forecasts 2% growth in sales each month. Total July sales are anticipated to be:
Answer:
Budgeted sales July= $63,000
Explanation:
Giving the following information:
A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit.
To calculate the budgeted sales, we simply need to multiply the number of units sold for the selling price:
Budgeted sales July= 6,000*10.5= $63,000
The Bank of Bramblewood would like to increase its loans to customers, but it is currently mandated by a high reserve rate. As a Federal Reserve member bank, it will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the ________________.
Answer: discount rate
Explanation:
It should be noted that the discount rate is the rate that is charged by the Federal Reserve when any of its member banks borrow money from it.
Therefore, Federal Reserve member bank, the Bank of Bramblewood will borrow additional funds from the Fed and charge its customers an interest rate that is higher than the discount rate.
You can now sell 40 cars per month at $20,000 per car, and demand is increasing at a rate of 3 cars per month each month. What is the fastest you could drop your price before your monthly revenue starts to drop
Answer:
More than $1500 price per car per month has to be dropped.
Explanation:
Given:
price per car = $20,000
car sale per month = 40
rate of increase in demand = 3
Solution:
Revenue R = Price × Quantity = P * Q
From the above given data
P = 20,000
Q = 40
R = P*Q
dQ/dt = 3
We have to find the rate at which the price is to be dropped before monthly revenue starts to drop.
R = P*Q
dR/dt = (dP/dt)Q + P(dQ/dt)
= (dP/dt) 40 + 20,000*3 < 0
= (dP/dt) 40 < 60,000
= dP/dt < 60000/40
= dP/dt < 1,500
Hence the price has to be dropped more than $1,500 before monthly revenue starts to drop.
Answer:
For the monthly revenue starts to drop, the price of the car has to drop more than $1500
Explanation:
Given that:
Price of a car = $20,000
quantity = 40
demand rate = 3
the fastest you could drop your price before your monthly revenue starts to drop can be calculated by using the formula
R = P × Q
i.e themontly revenue function R is the product of the price per unit P times the number of units sold Q
Differentiating with respect to time; we have :
[tex]\dfrac{dR}{dt}=(\dfrac{dP}{dt} )Q+P(\dfrac{dQ}{dt})[/tex]
[tex](\dfrac{dP}{dt} )40+20000 \times 3<0[/tex]
[tex](\dfrac{dP}{dt} )40+60000 <0[/tex]
[tex](\dfrac{dP}{dt} )40 <-60000[/tex]
[tex](\dfrac{dP}{dt} ) <\dfrac{-60000}{40}[/tex]
[tex](\dfrac{dP}{dt} ) <-1500[/tex]
Therefore; For the monthly revenue starts to drop, the price of the car has to drop more than $1500
Joan has the following assets and liabilities: Credit card balance$1,000 Cash$200 Government bonds$3,000 Checking$300 Car loan balance$10,000 Car$15,000 What is Joan's money demand
Answer:
$500
Explanation:
Money demand can be described as the part of an assets in which an individual is ready to hold as cash, this cash can be used to purchase goods and services.
In the scenario described above, Joan's money demand is
= Cash balance+Checking account balance
Cash balance = $200
Checking account balance = $300
Money demand= $200+$300
= $500
Hence Joan's money demand is $500
Allowance for Doubtful Accounts has a debit balance of $441 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 3% of sales. If net credit sales are $903,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a.$26,649 b.$27,531 c.$27,090 d.$441
Answer: $27,090
Explanation:
From the question, we are informed that the allowance for doubtful accounts has a debit balance of $441 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of sales and that the net credit sales are $903,000.
The amount of the adjusting entry to record the estimate of the uncollectible accounts will be 3% of $903,000. This will be:
= 3% × $903,000
= 3/100 × $903,000
= 0.03 × $903,000
= $27,090
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. What is the expected return on Bo's complete portfolio?
Answer:
The expected return on Bo's complete portfolio will be "10.32%".
Explanation:
The given question is incomplete. Please find attachment of the complete question.
According to the question, the given values are:
Port's expected return,
[tex]R_p=12 \ percent[/tex]
T-bill's expected return,
[tex]R_t=3.6 \ percent[/tex]
Port's weight,
[tex]W_p=80 \ percent \ i.e.,\ 0.80[/tex]
T-bill's weight,
[tex]W_t=20 \ percent \ i.e., \ 0.20[/tex]
Now,
The Bo's complete portfolio's expected return will be:
⇒ [tex]W_p\times R_p+W_t\times R_t[/tex]
On substituting the given values, we get
⇒ [tex]0.80\times 12 \ percent+0.20\times 3.6 \ percent[/tex]
⇒ [tex]10.32 \ percent[/tex]
Note: percent = %
In your opinion, does having two different existing labor federations (AFL-CIO and Change to Win) strengthen or weaken the ability of organized labor to represent the interests of employees today? Support your position.
Answer:
They weaken their ability to represent the interests of employees
Explanation:
The two organizations American Federation of Labor(AFL) and Congress of Industrial organizations(CIO) work differently regarding their approach to representing labor or employees. They have had disagreements in the past, from CIO breaking out of AFL to some violent exchanges and differing policies to representing labour. These differences make it less effective to represent employees as these unions are not entirely unified.
QUESTION 2
You spend RM 50,000 a year with e-book website and has done so for many years and now you are having some issues with the publisher. In your meeting with an e-book publisher representative, a particular e-book from the website has become too expensive at RM 50 a month, and it caused you to earn some extra income. You are going to unsubscribe if they do not change the subscription plan. What would you do if the representative suggested for a "free" subscription for your customer for a few months?
Answer:
would accept the offer
Explanation:
Yes, this appears to be a cost-effective decision because the fact is that, I have been spending for years with this particular e-book website and by offering me a "free" subscription for a few months gives me ample time to adjust to the new subscription fee. I it even caused me to earn some extra income.
It a common practice for some businesses to offer free subscription plans to all or some of their customers for a brief time period after which they will start paying.
Dalrymple Bay Coal Terminal, a coal-handling facility and export terminal in Queensland, Australia, has issued triple-A rated bonds for $680 million in Australian dollars. The bonds will be used to refinance existing bank debt caused by the acquisition of eases from the Queensland government in 2002. The Commonwealth Bank of Australia acted as investment bankers to the transaction. This means the Commonwealth Bank of Australia:
Answer: B. Bought the bonds from Dalrymple and sold them to the public
Explanation:
Investment Banks help companies issuing new securities in diverse ways to ensure that they raise the capital they are looking for. Some of the ways they help include; underwriting securities and market research. The main way they help companies issuing new securities however, is underwriting.
With Underwriting, the Investment Bank usually buys all the securities on offer from the Issuing company, then sells them at higher price to make a profit. This helps the issuing company because they get to sell all or most of their securities so it reduces uncertainty.
The Commonwealth Bank of Australia therefore bought the bonds from Dalrymple and sold them to the public.
What is the shortcut for the Find/Replace command screen?
O F5
O Ctrl + ?
O Ctrl + F
O F4
Answer it i Crtl+F
Explanation:
Answer:
is
3. Ctrl + F
Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 40% Zebra shareholder throughout the year.
Operating income (sales) $100,000
Cost of goods sold (40,000)
Depreciation expense (MACRS) (10,000)
Administrative expenses (5,000)
§1231 gain 21,000
Depreciation recapture income $25,000
Short-term capital loss from stock sale (6,000)
Long-term capital loss from stock sale (4,000)
Long-term capital gain from stock sale 15,000
Charitable contributions (4,500)
a. Calculate Sammy’s share of Zebra’s nonseparately computed income or loss.
b. Calculate Sammy’s share of any Zebra long-term capital gain.
Answer:
a. $70,000
b. $6,000
Explanation:
Non separately income = Operating income +Depreciation recapture income -COGS -ADM expense -depreciation
= $100,000 + $25,000 - $40,000 - $5,000 - $10,000
= $70,000
a. Sammy share of Zebra’s non-separately computed income or loss
= $70,000 * 0.40
= $28,000
b. Sammy share in Long term capital gain
= $15,000 * 0.40
= $6,000
How did the corporate culture of Enron contribute to its bankruptcy? Did Enron’s bankers, auditors, and attorneys contribute to Enron’s demise? If so, how? What role did the company’s chief financial officer play in creating the problems that led to Enron’s financial problems?
Answer:
Corporate Culture Of Enron:
The culture at Enron was not promoting integrity and core values of business ethics. The corporate culture of the company has been supporting unethical behavior of employees prevailing in the workplace. There have been no importance given to business ethics. The company punished the employees who appeared to be weak resource for the organization and department were forced to fire low ranking employees creating Job security issues for them. The employees then engaged in such illegal activities to keep themselves at the top rank even at the cost of company. There was also miscommunication in the organization about its performance to the stakeholders.
Explanation:
Contribution of Banker's, Auditors and Attorneys:
Auditors were responsible for ensuring accuracy of financial statements. Anderson deceived many investors who relied on companies financial statements. Anderson certified financial statements of the company without questioning them about the relevancy and accuracy. Anderson was found guilty of obstructing justice by destroying Enron's related auditing documents. Attorneys helped to mold some of company's special purpose partnership. These deals lead to demise of the company. Merrill Lynch replaced research analyst after his coverage of the Enron company which dissatisfied the company executives. Merrill Lynch was subject to threats by Enron that it would loose $750 million from stock offerings.
Role Of CEO:
The CEO of the company contributed to the bankruptcy of the company by involving in unconsolidated partnerships and special purpose entities. He was involved in exploiting the market by using techniques that rapidly exploit deregulating markets. He tripled the staff of Enron for demeaning the Enron's Credit Rating.
Indicate what components of GDP (if any) each of the following transactions would affect. a. Your parents buy a new house from a local builder. b. Your parents pay an accountant to file their tax returns. c. New York hires workers to plow snow after a snowstorm. d. Honda expands its factory in Ohio. e. Ford sells a Mustang from its inventory to the Martinez family. f. Aunt Polly buys a new air conditioner from a domestic manufacturer. You buy a new Toshiba computer. g. the Jackson family buys an old Victorian house from the Walker family.
Answer:
a. Consumption spending
b. consumption spending
c. government spending
d. investment
e. consumption and investment
f. consumption spending
g. not included in GDP
Purchase of a Toshiba laptop is consumption spending
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used or old products
5. sale or purchase of intermediate products
Consumption spending includes expenditures by households on durable and non durable goods and services
the following are durable consumption by households and are included in the calculation of GDP :
Purchase of a house
Purchase of a mustang
Purchase of an air conditioner
purchase of a computer
the purchase of the old Victorian house isn't included in the calculation of GDP because it is old. Only items produced in the current year are included in the GDP. if the old home is counted, it would be double counting
hiring an accountant is an example of purchase of services by households and it is consumption spending.
Spending by businesses are included in investment spending.
expenditure by the government or state are included in government spending
A firm expects to sell 25,200 units of its product at $11.20 per unit and to incur variable costs per unit of $6.20. Total fixed costs are $72,000. The total contribution margin is:
Answer:
The answer is $126,000
Explanation:
Contribution Margin is calculated as selling price minus the variable cost. It measures the ability of the sales price to cover the variable cost incurred on the goods produced.
Selling price per unit - $11.20
Variable cost per unit - $6.20
Contribution margin = $11.20 - $6.20
= $5
Total contribution margin is
$5 x 25,200 units
= $126,000
During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Sales $2,150,000 Manufacturing costs: Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed manufacturing cost 288,000 1,824,000 Selling and administrative expenses: Variable $204,000 Fixed 96,000 300,000 Required: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 $ Cost of goods sold: $ $ $ 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31, 2016 $ Variable cost of goods sold: $ $ $ Fixed costs: $ $ 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2). The income from operations reported under costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future month under costing.
Answer:
1) YoSan Inc.
Income Statement
For the month ended July 31, 202x
Sales revenue $2,150,000
- Cost of goods sold $1,520,000
Gross profit $630,000
- S & A expenses $300,000
Operating profit $330,000
2) YoSan Inc.
Income Statement
For the month ended July 31, 202x
Sales revenue $2,150,000
- Variable costs:
Direct materials $800,000 Direct labor $350,000 Variable manufacturing cost $130,000Variable S & A expenses $170,000 $1,450,000Contribution margin $700,000
- Period costs:
Fixed manufacturing cost $288,000Fixed S & A expenses $96,000 $384,000Operating profit $316,000
3) When you prepare a variable costing income statement, the ending inventory of finished goods and WIP only includes variables costs. All fixed or period expenses are included during the period that they occur and are not carried over to the next period. I.e. the ending inventory (400 units) for next month will be lower under variable costing.
Demron is in serious negotiations to purchase a welding machine that will enable them to perform their own welding. They currently have their welding outsourced at a cost of $1.50 per weld and a fixed cost of $45,000. Their marketing team feels that they can sustain an annual sales volume sufficient to require 35,000 welds. If a fancy new welding rig costs $13,500 what is the maximum variable cost per weld that Demron should be willing to pay in order to bring this process in-house
Answer:
Demron
Outsourcing welding or Purchasing a welding machine for in-house welding:
Cost of outsourcing:
Variable cost = $1.50 x 35,000 = $52,500
Fixed cost 45,000
Total outsourcing costs $97,500
Cost of purchasing a welding machine:
Fixed cost = $13,500
Maximum Variable costs = $84,000
Total in-house cost = $97,500
Maximum variable cost per weld
= $84,000/35,000
= $2.40
Explanation:
This problem of outsourcing welding activities of Demron Company or buying the welding machine to enable in-house welding is like a make or buy decision challenge. The appropriate approach to tackling this challenge is to determine the total costs under each option. The option that yields the greater outcome is chosen. However, for Demron's case, a determination of the maximum variable costs that are acceptable for in-house option to be selected is made. The level required for this determination is the level of costs that makes no difference between outsourcing and in-housing welding.