Answer:
Product modification
Explanation:
-Product lining refers to offering different goods that are sold separately.
-Product bundling refers to offering different goods that are sold as a group.
-Product modification is a change that is made to a product to make it more appealing and adjust it to customers' needs.
-Product churning is when companies sell an important amount of products to a point that it doesn't benefit the customers.
-Product sabotage is when companies get customers to buy the products that generate more revenue instead of the options with a lower price.
According to this, the answer is that product modification involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales because it refers to making changes to a product to adapt it to customers needs and make it more appealing.
Create a chart containing the three forms of business organizations: proprietorships, partnerships, and corporations. Include key users of financial information, and briefly explain their roles.
Answer:
a. Owner
b. Partners
c. Stakeholders
Explanation:
The key users of financial information of a proprietorship is the owner.
The key users of financial information of a partnership are partners.
The key users of financial information of a corporation are the stakeholders.
In a proprietorship the owner invests, manages and gains profit from the organization.
In a partnership the partners invest, manage and each partner gain profits from the organization.
While in a corporation the shareholders invest, the employees manage and the profits made are gained by the shareholders in the form of dividends.
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method
Nov. 5 Purchased 600 units of product at a cost ot s10 per unit. Terms of the sale are 2/10, n/60 the invoice is dated
Nov. 7 Returned 25 defective units from the November 5 purchase and received full credit.
Nov. 15 Paid the amount due from the November 5 purchase, less the return on November 7.
Answer:
A Merchandising Company
Journal Entries:
Nov. 5:
Debit Inventory $6,000
Credit Accounts Payable $6,000
To record the purchase of 600 units of a product at a cost of $10 per unit, terms, 2/10, n/60.
Nov. 7:
Debit Accounts Payable $250
Credit Inventory $250
To record the return of 25 defective units.
Nov. 15:
Debit Accounts Payable $5,750
Credit Cash Discount $115
Credit Cash Account $5,635
To record payment on account.
Explanation:
The journal entries show the accounts affected by each transaction. Two or more accounts are usually affected. One account receives value and is debited and the other gives value, and it is credited.
The trade terms 2/10, n/60 implies that a cash discount of 2% on the outstanding balance exists for early settlement on account within 10 days and the credit period should not exceed 60 days or two months.
ABC Bank is offering 3.6 percent compounded quarterly on its savings accounts. You deposit some amount of cash in the saving account today. After 5 years, you have $89,719 in your account. How much did you deposit today
Answer:
PV= $74,999.97
Explanation:
Giving the following information:
Interest rate= 0.036/4= 0.009
Number of quarters= 5*4= 20
Future value= $89,719
We need to determine the initial inventment. We will use the following formula:
PV= FV/(1+i)^n
PV= 89,719/ (1.009^20)
PV= $74,999.97
One of your customers has just made a purchase in the amount of $23,200. You have agreed to payments of $445 per month and will charge a monthly interest rate of 1.26 percent. How many months will it take for the account to be paid off?
Answer:
85.43 months
Explanation:
Purchase = $23,200
Payment per month = $445
Interest rate = 1.26%
Therefore the solution is:
$23,200 = $445[(1 − 1/1.0126^t) / .0126]
t = 85.43 months
When labor productivity increases over time, generally A) it is due to increases in the number of workers b) so do average wages C) it results in higher prices for goods and services .
Answer:
b) so do average wages
Explanation:
In perfect competition's equilibrium, productive factors are paid according to their marginal productivity. This means that productive factors' payments will be directly explained by their productivity. This comes from the fact that a firm maximizes profits, subject to its budget constraint, in an optimal way. Equilibrium solution will result in the following condition: [tex]\frac{MP_L}{MP_K} =\frac{P_L}{P_K}=\frac{Wages}{P_K}[/tex], where [tex]MP_L[/tex] is the marginal productivity of labour and [tex]PM_K[/tex] is the marginal product of capital,[tex]P_L[/tex] is the price of labour (or wages) and [tex]P_K[/tex] is the price of capital. Then, because the price of labour is proportional to its productivity, if labour productivity rises, the price of labour will increase.Determine the estimate of the mean when the process is in control.Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
The question is incomplete! Complete question along with answer and step by step explanation is provided below.
Question:
A local mattress manufacturer wants to know if its manufacturing process is in or out of control and has hired you, a statistics expert in the field, to analyze its process. Specifically, the business has run 20 random samples of size 5 over the past month and has determined the mean of each sample.
95.72 95.44 95.4 95.5 95.56 95.72 95.6 95.24 95.46 95.44 95.8 95.2 94.82 95.78 95.18 95.32 95.08 95.22 95.04 95.48
a. Determine the estimate of the mean when the process is in control.
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
Answer:
[tex]Mean = \bar{x} = 95.4[/tex]
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
Explanation:
a. Determine the estimate of the mean when the process is in control.
The mean is given by
[tex]Mean = \bar{x} = \frac{\sum x}{n}[/tex]
Where n = 20 samples
Using Excel,
=AVERAGE(number1, number2,....)
The mean is found to be
[tex]Mean = \bar{x} = 95.4[/tex]
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
The Upper Control Limit (UCL) is given by
[tex]$ UCL = \bar{x} + \frac{3 \cdot s}{\sqrt{n} } $[/tex]
Where [tex]\bar{x}[/tex] is the mean, s is the standard deviation and n is the size of random samples that is 5 (not 20)
[tex]UCL = 95.4 + \frac{3 \times 0.50}{\sqrt{5} } \\\\UCL = 95.4 + 0.671 \\\\UCL = 96.07[/tex]
The Lower Control Limit (UCL) is given by
[tex]$ LCL = \bar{x} - \frac{3 \cdot s}{\sqrt{n} } $[/tex]
[tex]LCL = 95.4 - \frac{3 \times 0.50}{\sqrt{5} } \\\\LCL = 95.4 - 0.671 \\\\LCL = 94.73[/tex]
So the control limits are
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
The process is in control based on the obtained results.
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
Patrick Inc. makes industrial solvents sold in 5-gallon drum containers. Planned production in units for the first 3 months of the coming year is: January43,800 February41,000 March50,250 Each drum requires 5.5 gallons of chemicals and one plastic drum container. Company policy requires that ending inventories of raw materials for each month be 15% of the next month's production needs. That policy was met for the ending inventory of December in the prior year. The cost of one gallon of chemicals is $2.00. The cost of one drum is $1.60. Required: 1. Calculate the ending inventory of chemicals in gallons for December of the prior year, and for January and February. What is the beginning inventory of chemicals for January
Answer:
Ending inventory (December) = $72,270
Ending inventory (January) = $67,650
Ending inventory (February) = $82,912.50
Beginning Inventory (January ) = $72,270
Explanation:
The ending inventory of chemicals in gallons :
Note : Based on Company policy, this was determined as 15% of next month's production needs.
Ending inventory (December) = 43,800 × 15% × 5.5 gallons × $2.00
= $72,270
Ending inventory (January) = 41,000 × 15% × 5.5 gallons × $2.00
= $67,650
Ending inventory (February) = 50,250 × 15% × 5.5 gallons × $2.00
= $82,912.50
The beginning inventory of chemicals for January is equal to the Ending inventory for December that is $72,270
A company incurs $2,700,000 of overhead each year in three departments: Ordering and Receiving, Mixing,?
and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available:
Department Expected use of Driver Cost
Ordering and Receiving 2,000 $800,000
Mixing 50,000 1,000,000
Testing 1,500 900,000
Production information for Slime is as follows:
Expected use of Driver
Ordering and Receiving 1,600
Mixing 30,000
Testing 1,000
Compute the amount of overhead assigned to Slime.
a) $1,350,000
b) $2,025,000
c) $1,645,234d) $1,840,000
Answer:
Total allocated overhead= $1,840,000
Explanation:
Giving the following information:
Department Expected use of Driver Cost
Ordering and Receiving 2,000 $800,000
Mixing 50,000 1,000,000
Testing 1,500 900,000
Production information for Slime is as follows:
Expected use of Driver
Ordering and Receiving 1,600
Mixing 30,000
Testing 1,000
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Ordering and Receiving= 800,000/2,000= $400 per order
Mixing= 1,000,000/50,000= $20 per mixing hour
Testing= 900,000/1,500 = $600 per test
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Ordering and Receiving= 400*1,600= 640,000
Mixing=20*30,000= 600,000
Testing= 600*1,000= 600,000
Total allocated overhead= $1,840,000
Which of the following markets has a barrier to entry? A. There are already many fast food restaurants in the City of Buffalo. B. Stan's Garbage Company runs the only trash collection service in town. C. Crystal develops a new product and patents it. D. Gold can only be mined in certain places in the world.
Answer: C. Crystal develops a new product and patents it.
Explanation:
A Patent is one of the ways that a monopoly can be formed in an industry. A Patent is a government issued guarantee that other entities should not tamper with the product that was patented unless they get permission from the patentee to do so.
Patents in the United States usually last for 20 years and in that time only the people who patented it may use it. This is a Government enforced barrier to entry as other companies cannot make the product in question thereby creating a monopoly for the people that did patent it.
In theory, Texas has a dual-budget system, meaning the budget authority is shared by the governor and the legislature; however, in practice, the primary player(s) in the budget is/are
Answer:
The legislature.
Explanation:
A budget can be defined as a financial plan of estimated revenues, resources and expenses over a specific period of time in a particular country. It is usually reevaluated based on future plans and objectives periodically, typically on an annual basis.
In theory, Texas has a dual-budget system, meaning the budget authority is shared by the governor and the legislature; however, in practice, the primary player in the budget is the legislature.
In accordance with the guidelines set by the Legislative Budget Board (LBB) in Texas, all agencies in the state prepares and send a Legislative Appropriations Request (LAR) to the Legislative Budget Board (LBB) and the Governor’s Office of Budget, Planning and Policy (GOBPP).
The legislature is the primary player in the budget process because it is responsible for reviewing the budget proposals through the House Finance Committees and the Senate.
The legislature being the primary player in the budget comprises of ten (10) members from the Texas House of Representatives and Texas Senate, it is chaired by the Lieutenant Governor. A single bill is then passed after the appropriation bill has been voted on by the respective chambers.
Additionally, the single bill is then sent to the Comptroller's office for verification and certification, and lastly it's signed by the Governor into law.
Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. Which of the following is true regarding the offer of the reward?A. The bank is likely to prevail because Ursula only provided past consideration.
B. The bank is likely to prevail because Ursula was tainted by being Victor's girlfriend.
C. The bank is likely to prevail because no valid bilateral contract existed.
D. Ursula is likely to prevail because a valid bilateral contract existed.
E. Ursula is likely to prevail because an enforceable unilateral contract exists based on her provision of information leading to the capture of Victor.
Answer:
E. Ursula is likely to prevail because an enforceable unilateral contract exists based on her provision of information leading to the capture of Victor.
Explanation:
A unilateral contract is in existence because safe bank has made an offer to pay $10,000. And in a unilateral contract when an offerer like safe bank makes an offer, the offer is accepted through actual performance which Ted has done through information Ursula provided. Therefore Ursula would prevail because unilateral contracts are enforceable by the law.
A nation's central bank auctions off a new issue of 10-year bonds. What is the short-run effect on the nation's economy
Answer: Aggregate Demand Decreases
Explanation:
When the Central Bank sells bonds, it is engaging in Open Market Operations to reduce the amount of money in the Economy by taking money out of people's hands ( the money they will use to buy the bonds).
When money supply in the economy decreases, it will have the opposite effect on Interest rates as they will increase because money is no longer readily available.
When this happens both businesses and Individuals will reduce the amount of money they borrow for investment and consumption respectively which are both components of Aggregate Demand.
Aggregate Demand therefore decreases and the AD curve shifts to the LEFT to depict this.
Parton owes $3 million that is due on February 28. The company borrows $2,400,000 on February 25 (5-year note) and uses the proceeds to pay down the $3 million note and uses other cash to pay the balance. How much of the $3 million note is classified as long-term in the December 31 financial statements
Answer:
$2,400,000
Explanation:
Based on the information given, How much of the $3 million note that is classified as long-term in the December 31 financial statements will be $2,400,000 because we were told that
Parton owes the amount of $3 million which is due on February 28 while the company borrows the amount of $2,400,000 on February 25 (5-year note) which means that the amount that the company borrowed on February 25 on a 5 year note will be classified as long-term in the December 31 financial statements.
The total system view of the marketing concept builds on the idea that
Multiple Choice
sales should be the firm's high-level objective.
a company should not have specialized departments.
each department in an organization should do what it does best.
all departments—not just marketing—should be guided by customer needs.
None of these answers is correct.
Answer: all departments—not just marketing—should be guided by customer needs.
Explanation:
The goal in marketing is for the needs of the customers to be identified. The customers have a vital role to play in every organization.
According to the marketing concept, every effort of a business should be directed towards satisfying customers which in turn brings about a profit.
Therefore, The total system view of the marketing concept builds on the idea that all departments and not just marketing should be guided by customer needs.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $5,000 cash and $21,500 of photography equipment in the company in exchange for common stock. 2 The company paid $2,400 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $950 cash. 20 The company received $2,250 cash in photography fees earned. 31 The company paid $882 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Pose-for-Pics
General Journal:
August 1:
Debit Cash Account $5,000
Debit Photograph Equipment $21,500
Credit Common Stock $26,500
To record the investment of cash and equipment by Madison Harris.
August 2:
Debit Insurance Prepaid $2,400
Credit Cash Account $2,400
To record the payment for insurance for 24 months.
August 5:
Debit Office Supplies $950
Credit CAsh Account $950
To record the purchase of office supplies.
August 20:
Debit Cash Account $2,250
Credit Photography Fees Earned $2,250
To record the receipt of cash for fees.
August 31:
Debit Utilities Expense $882
Credit Cash Account $882
To record the payment of cash for August utilities.
Explanation:
The general journal entries are used to initiate the recording of business transactions as they occur on a daily basis. While there other specialized journals, the general journal can be used to record any type of transaction. The journal shows the accounts that are debited and credited in the general ledger.
On June 30, Daughtry Limited issues 8 %, 20-year bonds payable with a face value of $ 130 comma 000. The bonds are issued at 86 and pay interest on June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.)
Requirements
1. Journalize the issuance of the bonds on June 30.
2. Journalize the semiannual interest payment and amortization of the bond discount on December 31.
Requirement 1. Journalize the issuance of the bonds on June 30. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Requirement 2. Journalize the serniannual interest payment and amortization of the bond discount on December 31. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Answer:
June 30
Dr Cash 111,800
Dr Discount on bonds payable 18,200
Cr Bonds payable 130,000
Dec 31
Dr Interest expense 5,655
Cr Discount on bonds payable 455
Cr Cash 5,200
Explanation:
1. Preparation of the Journal entry fornthe issuance of the bonds on June 30.
June 30
Dr Cash 111,800
(86%×130,000)
Dr Discount on bonds payable 18,200
(100%-86%×130,000)
Cr Bonds payable 130,000
(To record bond issue)
2. Preparation of the Journal entry for the semiannual interest payment as well as the amortization of the bond discount on December 31.
Dec 31
Dr Interest expense 5,655
Cr Discount on bonds payable 455
(18,200/40)
Cr Cash (130,000*8%*6/12) 5,200
(To record interest)
What are the macroeconomic conditions affecting the IT industry?
Select "yes" for those statements that are accurate and choose "no" for those that are not.
From a social-cultural perspective, Ricoh is a strong brand name because of the strong privacy policies it has in place.Yes/No
Answer:
The answer is Yes.
Explanation:
Yes, the given statement is accurate because nowadays people are more concerned and insecure about privacy. Since it is given that Ricoh is a strong brand that means people are already believing in it and its privacy policy attracts more consumers. Therefore, it can be said that is will affect the IT industry at the macroeconomic level.
We would expect the interest rate on Bond A to be lower than the interest rate on Bond B if the two bonds have identical characteristics except that:___________
a. Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation.
b. Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York.
c. Bond A has a term of 1 year and Bond B has a term of 5 years.
d. All of the above are correct.
Answer:
The option (d) is correct
Explanation:
Solution
From the given question, option (d) is correct because Bond A has a lower term of maturity, issued by a financially weak corporation and compared to government security it is offering lower returns implies it has a lower interest rate than bond B having identical characteristics expect the above.
You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 6.8 percent per year. How much will you have in eight years?
Answer:
The amount you will have in eight years is $29,679.56
Explanation:
In order to calculate the amount you will have in eight years we would have to use the following formula:
amount you will have in eight years=PV*(1+r)∧n
According to the given data:
PV=$20,000
r=6.8%
n=6
Therefore, amount you will have in eight years=$20,000*(1+6.8%)∧6
amount you will have in eight years=$29,679.56
QS 18-9 CVP analysis and target income LO P2 SBD Phone Company sells its waterproof phone case for $107 per unit. Fixed costs total $197,000, and variable costs are $32 per unit. Compute the units of product that must be sold to earn pretax income of $224,500.
Answer:
Break-even point in units= 5,620 units
Explanation:
Giving the following information:
Selling price= $107 per unit.
Fixed costs total $197,000
Variable costs= $32 per unit.
Desired profit= $224,500
To calculate the number of units required to reach the objective, we need to use the following formula:
Break-even point in units= (fixed costs desired profit) / contribution margin per unit
Break-even point in units= (197,000 + 224,500) / (107 - 32)
Break-even point in units= 5,620 units
Equipment was purchased for $78000 on January 1, 2018. Freight charges amounted to $4400 and there was a cost of $10400 for building a foundation and installing the equipment. It is estimated that the equipment will have a $15100 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2019, if the straight-line method of depreciation is used
Answer:
The amount of accumulated depreciation at December 31, 2019 is $31,080
Explanation:
Straight line method, charges a fixed amount of depreciation over the use of an asset in the business.
Depreciation Expense Using Straight line method is calculated as :
Depreciation Expense = (Cost - Salvage Value) / Estimated useful life
First step is to determine the cost of the equipment.
Calculation of Cost of Equipment :
Purchase price $78,000
Freight charges $4,400
Installation costs $10,400
Total Costs $92,800
Then calculate the depreciation expense :
Depreciation Expense = ($92,800 - $15,100) / 5 years
= $15,540
Accumulated depreciation by December 31, 2019 is calculated as :
Accumulated depreciation = $15,540 × 2
= $31,080
Conclusion :
The amount of accumulated depreciation at December 31, 2019 is $31,080.
Green T-Shirt Processing incurs only fixed and variable costs in its operations. When 10,000 T-shirts are produced, the company’s managerial accountant noted a fixed cost per shirt of $1.00 and a variable cost per pot of $6.00.
If production is expected to increase, which of the following statements is true?a. The fixed cost per T-shirt will not change; the variable cost per T-shirt will decrease.b. Total fixed costs will decrease; the variable cost per T-shirt will not change.c. The fixed cost per T-shirt will decrease; the variable cost per T-shirt will increase.d. Total fixed costs will remain unchanged; total variable costs will increase
Answer:
.d. Total fixed costs will remain unchanged; total variable costs will increase
Explanation:
Fixed cost is cost that does not vary with production e.g rent
Variable costs are costs that vary with production. If production increases, variable costs rises and if production is reduced, variable cost falls. Examples of variable costs are wages and cost of raw materials.
If production increases, more workers and raw materials would be needed, so variable cost would increase.
I hope my answer helps you
If income elasticity of demand is 2.12, it means that quantity demanded will __________ by 2.12 percent for every __________ percent __________ in income.
Answer:
rise, 1.0, rise
Explanation:
As we know that
Income elasticity of demand is
= Percentage change in quantity demanded ÷ Percentage change in income
So,
Percentage change income
= 2.12% ÷ 2.12
= 1%
Therefore if the income increased that also leads to increase in quantity demanded
We simply applied the Income elasticity of demand formula so that we can get to know the situation
Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year.
Poinsettias Fruit Trees
Sales $970,000 $3,100,000
Variable cost of goods sold 460,000 1,630,000
Direct fixed overhead 160,000 200,000
A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000.
Required:
Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing.
Answer:
Poinsettias records a loss of $118,125
Fruit Trees records a profit of $92,325
The company therefore records an overall $25,800 loss
NB: See the workings below see the assumption mad to allocate common expenses since none is given in the question.
Explanation:
Variable costing income statement is a type of income statement that records variable cost separately first to determine the contribution margin and thereafter record the fixed cost which is further split into direct fixed expenses and common expenses.
The segmented income statement for Gorman Nurseries for the coming year can therefore be presented as follows:
Gorman Nurseries Inc.
Segmented Income Statement
For the coming year
Particulars Poinsettias ($) Fruit Trees ($) Total ($)
Sales 970,000 3,100,000 4,070,000
Variable COGS (460,000) (1,630,000) (2,090,000)
Variable selling exp. (w1.) (38,800) (124,000) (162,800)
Contribution margin 471,200 1,346,000 1,817,200
Direct fixed overhead (160,000) (200,000) (360,000)
Direct fixed S $ Admn exp. (146,000) (87,000) (233,000)
Segment margin 165,200 1,059,000 1,224,200
Common fixed overh. (w2a) (176,077) (623,923) (800,000)
Common S $ Admn ex (w2b) (107,248) (342,752) (450,000)
Segment Net Income (loss) (118,125) 92,325 (25,800)
Workings:
w1. Variable selling expenses = Sales * Commission percentage
Poinsettias = $970,000 * 4% = $38,8000
Fruit Trees = $3,100,000 * 4% = $124,000
w2. Allocation of common expenses using the following assuptions:
a) Use cost of goods sold (COGS) to allocate Common fixed overhead:
Poinsettias = (460,000 / 2,090,000) * $800,000 = $176,077
Fruit Trees = (1,630,000 / 2,090,000) * $800,000 = $623,923
b) Use common selling and administrative expense using Sales:
Poinsettias = (970,000 / 4,070,000) * $450,000 = $176,077
Fruit Trees = (3,100,000 / 4,070,000) * $450,000 = $623,923
If increasing the number of goods produced is one way to increase productivity what is the other way to increase productivity?
A. Raise the price of the goods
B. Decrease the resources invested
C. Increase market share
D. Lower the quality of the materials used
Answer:
Explanation:
Start with D. You might be able to make a cheaper product and increase your profit margin, but eventually the word would would get around and it may lower your productivity because the sales would decrease.
The market determines whether or not you would be able increase the market share. I suppose this answer is possible, but it would mean that you would need to have capital to do it. The market need not cooperate. I wouldn't pick C unless I had to.
How can you reduce the resources invested? That should decrease the number of objects originally need for manufacturing the poduct in the first place. Not B.
Raise the price of the goods? How can that help? That increases the profit margin, not the number of goods produced.
I don't know what the best answer is out of these 4. None of them seem appropriate.
If I had to choose, I guess the best one is D
Answer:
im pretty its C
Explanation:
The objective of financial reporting include all of the following except to provide information that Group of answer choices is useful to the IRS in assessing taxes to business entities. is useful to those making investment decisions. is useful to those lending out money to business entities. is useful to creditors in making decisions about providing resources to business entities.
Answer:
is useful to the IRS in assessing taxes to business entities.
Explanation:
The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
The objective of financial reporting include all of the following to provide information that:
1. Is useful to those making investment decisions. This information would help creditors to determine whether they should lend to a client or not; or assist investors in deciding whether they should invest in a business or not.
2. Is useful to those lending out money to business entities. When investors and creditors are well furnished with financial information about an organization, they would be able to assess the amounts of cash, timing, and uncertainty of cash flows from dividends or interest.
3. Is useful to creditors in making decisions about providing resources to business entities.
In conclusion, the financial report is not useful to the Internal Revenue Service (IRS) in assessing taxes to business entities.
Given the position of the 3D printer in the growth stage of its lifeâ cycle, which of the following OMâ Strategy/Issues should the makers of 3D printers be least concerned with at the currentâ time?A) forecasting B) cost cutting C) increasing capacity D) product and process reliability E) enhancing distribution
Answer: cost cutting
Explanation:
3D printing technology is a from of technological innovation which people not many people know about and is less understood by the people and therefore few people might see reason to buy it.
The increase in the competitors offering the product and a price reduction can actually help the product from from the introduction to the growth stage of its life cycle.
The makers of the 3D printers should be more conceened with enhancing distribution, increasing capacity, forecasting and product and process reliability. They should be less concerned about cost-cutting as there are bigger issues to solve.
If the product line is discontinued, $4,000 of the fixed costs would be avoided. Also, the freed-up capacity would generate $6,000 of additional contribution margin from the expansion of other product lines. If Courtney discontinues the product line, the effect on overall income will be
Answer:
CourtneyDiscontinued Product Line:
The overall income will increase by $10,000 ($4,000 + 6,000).
Explanation:
In a decision to discontinue a product line, the relevant costs to consider are the avoidable costs. These are costs that will no longer be incurred when a line is discontinued. They are relevant to the decision, unlike costs that will not change as a result of the discontinued product line.
Incremental revenue that will be resulting from a discontinued product line is also relevant. For example, the additional contribution margin of $6,000 is relevant to the decision of whether to continue or discontinue the product line, all other things remaining equal.
Please prepare a bank reconciliation for December 31, 2018 using the following information:
Deposits in transit 4,900
Bank statement balance December 31, 2018 18,500
Not sufficient funds checks (NSF) 600
Cash balance per the general ledger Dec 31, 2018 21,500
Bank service charges on bank statement 300
Checks outstanding 800
Interest income on bank statement 2,000
Answer:
You're welcome.
Explanation:
Jay Seago is suing the manufacturer of his car for $3.5 million because of a defect that he believes caused him to have an accident. The accident kept him out of work for a year. The company has offered him a settlement of $700,000, of which Jay would receive $600,000 after attorneys’ fees. His attorney has advised him that he has a 50% chance of winning his case. If he loses, he will incur attorneys’ fees and court costs of $75,000. If he wins, he is not guaranteed his full requested settlement. His attorney believes that there is a 50% chance he could receive the full settlement, in which case Jay would realize $2 million after his attorney takes her cut, and a 50% chance that the jury will award him a lesser amount of $1 million, of which Jay would get $500,000. Using decision tree analysis, decide whether Jay should proceed with his lawsuit against the manufacturer.
Answer:
Since the expected value is higher for not suing ($600,000), then Jay should not sue. The expected value of the best case scenario in case of suing is only $500,000 and in the expected value of the worst case scenario is -$37,500.
Explanation:
he decides to not sue = expected value $600,000
he decides to sue:
50% chance of winning
expected value
$2,000,000 x 50% x 50% = $500,000$500,000 x 50% x 50% = $125,00050% chance of losing
expected value = -$75,000 x 50% = -$37,500