Answer:
A
Decision: Project A should be selected.
B
NPV =$40,909.09
Explanation
A
Since the two projects would achieve the same objectives, the project with the lowest initial cost should be selected.
Kindly note that the $2 million already spend on project A is not a relevant cash flow because it is sunk cost. Hence, the initial cos outlay of project A will be $2 million which will be spent should the project be undertaken.
Project B on the other hand would cost $1.5 million in initial cost which is $500,000 cheaper than project A.
Decision: Project A should be selected.
B
The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 50,000
The NPV of the savings
NPV = 100,000× 1.1^(-1) - 50,000= 40,909.09
NPV =$40,909.09
Hyperion Manufacturing is expected to pay a dividend of $2.25 per share at the end of the year. The stock sells for $75 per share, and its required rate of return is 12%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate
Answer:
The equilibrium expected growth rate is 9%
Explanation:
Stock Price = Expected Dividend next year / (Required Return - Growth rate)
75 = 2.25/( 12% - growth rate)
75 * ( 12% - growth rate) = 2.25
75 * ( 0.12 - growth rate) = 2.25
9 - 75 * Growth rate = 2.25
9 - 2.25 = 75 * growth rate
6.75 = 75 * growth rate
Growth rate = 6.75 /75
Growth rate = 0.09
Growth rate = 9%
Assume that both firm A and firm B formally agree to each put up $10 million to form firm C. The operations of firm C are restricted to conducting research and development activities for the benefit of firms A and B. Firm C is a _____ of firms A and B.
Answer: a. joint venture.
Explanation:
A Joint Venture refers to when 2 or more entities come together and put up resources necessary to accomplish a certain task or venture that will be beneficial to all of them.
For example, BMW and Toyota jointly started research into utilizing hydrogen fuels and Google cooperated with NASA to create Google Earth.
Firm C is a Joint venture between Firms A and B.
Job 590 has a total cost of $ 29 comma 200. It has been charged manufacturing overhead costs of $ 7 comma 000. The rate is 75% of direct labor. What was the amount of direct materials charged to the job?
Answer:
Direct material= $12,867
Explanation:
Giving the following information:
Job 590:
Total cost= $29,200
Manufacturing overhead= $7,000
The rate is 75% of direct labor.
First, we need to calculate the direct labor cost:
Direct labor= allocated overhead/0.75
Direct labor= 7,000/0.75= $9,333
Now, we can calculate the direct material cost:
Total cost= direct material + direct labor + allocated overhead
29,200= direct material + 9,333 + 7,000
direct material= $12,867
Gross Profit MethodBased on the following data, estimate the cost of the ending merchandise inventory: Sales (net) $9,250,000 Estimated gross profit rate 36% Beginning merchandise inventory $180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000
Answer:
$205,000
Explanation:
The computation of the cost of the ending merchandise inventory is shown below:-
Cost of the ending merchandise inventory = Merchandise available for sale - (Net Sales - Gross profit)
= $6,125,000 - ($9,250,000 - $9,250,000 × 36%)
= $6,125,000 - ($9,250,000 - $3,330,000)
= $205,000
Therefore we applied the above formula so that the cost of ending merchandise inventory could come
An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit for this position
Answer: $2
Explanation:
From the question, we are informed that an investor purchases a stock for $38 and a put for $.50 with a strike price of $35 and that the investor sells a call for $.50 with a strike price of $40.
The maximum profit for this position will be the purchase price of the stock deducted from the strike price of call option. This will be:
= $40 - $38
= $2
Mr. and Mrs. Camarena's AGI (earned income) was $15,410. Their federal income tax withholding was $930. They had no itemized deductions and two dependent children, ages 18 and 19. If Mr. and Mrs. Camarena are entitled to a $4,732 earned income credit, compute their income tax refund. Assume the taxable year is 2019.
Answer: $5,662
Explanation:
In 2019, married couples filling jointly had a standard deduction of $24,400.
Mr. and Mrs. Camarena's AGI of $15,410 is below this and so they will not be taxed as all income below $24,400 for them is not Taxable.
The income tax refund they gain will therefore be just the earned income credit as well as their federal income tax withholding.
= 4,732 + 930
= $5,662
A manager with many direct subordinates has a wider___________ than does a manager with only a few subordinates. Employees make greater use of their skills and enjoy more opportunities for professional development in a organization
Answer:
Span of management
Explanation:
The span of management refers to managing the number of subordinates by the superior in an efficient and effective manner
In this, the superiors directly report to the superior with respect to the work, suggestions, grievances
This above explanation we are known as span of management
Therefore in the given scenario, the best option is the span of management that perfectly fits
Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Caroline: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Antonio: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Caroline: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.
1. The disagreement between these economists is most likely due to
a. differences in values
b. differences in scientific judgement
c.differences in perception verse reality.
2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Lawyers make up an excessive percentage of elected officials.
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.
Answer:
1) Option A. differences in values
2) Option C. Tariffs and import quotas generally reduce economic welfare
Explanation:
1) Difference in values which can also be called value conflicts are due to variations in belief systems. I.e. when the belief systems of two groups do not allign. While Antonio believes that government programmes should be reduced because they cause more harm than good, Caroline is of the opinion that despite the inefficiency of government programmes, they are still necessary for the less fortunate. This disagreement is as a result of value conflict.
2) Both economists agree on the inefficiency of government programmes. The focal point of Caroline's argument is that government's intervention in the economy is needed for the less fortunate. Based on this premise, two economies chosen at random will most likely agree to the proposition that tariffs and import quotas generally reduce economic welfare.
George operates a business that generated revenues from services of $50 million in 2019 and reported deductible expenses other than interest of $49 million in 2019, which included depreciation expense of $500,000. The business paid interest expenses of $800,000 in 2019, none of which was for loans used to purchase tax-exempt investments. What is the maximum business interest deduction that George will be eligible to claim this year
Answer:
$750,000
Explanation:
The Adjustable Taxable Income will be calculated first to compute the maximum business interest deduction that is allowable to George.
Step 1. Calculate Net Adjustable Taxable Income
Net Adjustable Taxable Income = Total revenue - Deductible expenses + Disallowed Expenses - Tax Exempt Revenue
Here
Total revenue is $50 million
Deductible expenses are $49 million
Disallowed Expenses includes a depreciation of $0.5 million
Tax Exempt Revenue is zero
So by putting values, we have:
Net Adjustable Taxable Income = $50 million - $49 million + $0.5 million
= $1.5 million
Net ATI = $1.5 million
Step 2. Calculate the maximum business interest deduction which is 50% of Net ATI
Maximum Business Interest Deduction = Net ATI * 50%
= $1.5 * 50% = $0.75 million
So Maximum Business Interest Deduction is $750,000.
The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.
Year 0 Year 1 Year 2 Year 3 Year 4
Investment $37,000
Sales revenue $19,000 $19,500 $20,000 $17,000
Operating costs 4,000 4,100 4,200 3,400
Depreciation 9,250 9,250 9,250 9,250
Net working capital spending 430 480 530 430 ?
Required:
a. Compute the incremental net income of the investment for each year.
b. Compute the incremental cash flows of the investment for each year.
Answer:
a.
Year 0 = $0
Year 1 = $5,750
Year 2 = $6,150
Year 3 = $6,550
Year 4 = $4,350
b.
Year 0 = ($37,000)
Year 1 = $14,570
Year 2 = $14,920
Year 3 = $15,270
Year 4 = $15,040
Explanation:
a. Computation of the incremental net income of the investment for each year.
Year 0 Year 1 Year 2 Year 3 Year 4
Sales revenue $19,000 $19,500 $20,000 $17,000
Less Operating costs $4,000 $4,100 $4,200 $3,400
Less Depreciation $9,250 $9,250 $9,250 $9,250
Net Income $0 $5,750 $6,150 $6,550 $4,350
b. Computation of the incremental cash flows of the investment for each year.
Year 0 Year 1 Year 2 Year 3 Year 4
Investment ($37,000)
Sales revenue $19,000 $19,500 $20,000 $17,000
Operating costs ($4,000) ($4,100) ($4,200) ($3,400)
Net working capital ($430) ($480) ($530) ($430)
Recovery $1,870
Cash flow ($37,000) $14,570 $14,920 $15,270 $15,040
Trade adjustment assistance:_________.a. provides financial assistance to all unemployed workers in the United Statesb. guarantees jobs for all workers displaced by imports or plant relocations abroadc. provides assisntace to about 20 percent of unemployed U.S. workers each yeard. provides cash assistance for workers displaced by imports or plant relocations abroad
Answer:
The correct answer is the option B: guarantees jobs for all workers displaced by imports or plant relocations.
Explanation:
To begin with, the name of "Trade Adjustment Assistance" or TAA refers to a federal program from the United States that establish that its government must act in the situations necessary in order to reduce the damage cause by imports that are felt by certain sectors of the U. S. economy. Moreover, this program's structure features four components and one of them is the program for workers in which is established that the TAA provides a variety of reemployment services to those workers who were displaced or lost their jobs due to the increase of the imports or the relocation of their work plants.
Mayan Company had net income of $132,000. The company had 89,000 shares of common stock issued. The company had 9,000 shares of treasury stock. The company declared a $27,000 dividend on its preferred stock. There were no other stock transactions. What is the company's Earnings Per Share
Answer:
The company's Earnings Per Share is $1.18
Explanation:
Earnings per share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Stock Holders
= ($132,000 - $27,000) / 89,000
= $1.179775 or $1.18
The production possibilities curve represents: a) The maximum amount of labor and capital available for production. b) Combinations of goods and services among which consumers are indifferent. c) Maximum combinations of products available with fixed resources and technology. d) The maximum rate of growth of capital and labor in an economy.
Answer:
c) Maximum combinations of products available with fixed resources and technology.
Explanation:
The production possibilities curve (PPC) is also known as the production possibilities frontier (PPF) and its a curve which illustrates the maximum (best) combinations of two products that can be produce in an economy if they both depend on these factors;
1. Technology is fixed.
2. Resources are fixed.
Hence, the production possibilities curve represents maximum combinations of products available with fixed resources and technology. This ultimately implies that the manufacturing or production of one item (product) is likely to rise or increase provided the production of the other item (product) falls or decreases.
Additionally, the production possibilities curve influences the choice of production used by companies and as such it helps to make the best decision regarding the optimum product mix for a company. This simply means that, all points in a production possibilities curve is efficient and resources should be used efficiently or to the fullest.
Milar Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.7 pounds $ 4 per pound
Direct labor 0.1 hours $ 20 per hour
Variable overhead 0.1 hours $ 4 per hour
In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
a. $1,690 U
b. $1,540 F
c. $1,540 U
d. $1,690 F
Answer:
Direct material price variance= $1,690 favorable
Explanation:
Giving the following information:
Direct materials 7.7 pounds $ 4 per pound
During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
actual price= 65,910/16,900= $3.9
Direct material price variance= (4 - 3.9)*16,900
Direct material price variance= $1,690 favorable
Jim's Espresso expects sales to grow by 9.6 % next year. Assume that Jim's pays out 80.7 % of its net income. Use the following statements and the percent of sales method toforecast:
a. Stockholders' equity
b. Accounts payable
The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
Balance Sheet
Assets
Cash and Equivalents $15,050
Accounts Receivable 2070
Inventories 4090
Total Current Assets $21,210
Property, Plant and Equipment 10050
Total Assets $31,260
Liabilities and Equity
Accounts Payable $1,580
Debt 3930
Total Liabilities $5,510
Stockholders' Equity 25750
Total Liabilities and Equity $31,260
Income Statement
Sales $204,560
Costs Except Depreciation (99,880)
EBITDA $104,680
Depreciation (5,960)
EBIT $98,720
Interest Expense (net) (410)
Pretax Income $98,310
Income Tax (34,409)
Net Income $63,901
Answer:
Stockholder equity = $36,513
Accounts payable = $1,428
Explanation:
Sales next year= 204,560 * ( 1 + 9.6%)
=204,560 * 0.904
=184922.24
=$184,922
Net income next year = 184,922 * (63,901 / 204,560)
=57766.42
=$55,766
Dividend paid next year= 55,766 * 80.7%
= 45,003.16
=$45,003
a. Stockholder equity =25750 + 55,766 - 45,003
= $36,513
b. Accounts payable = 1,580 * ( 184922 / 204,560)
=1,428.31
=$1,428
A company is considering investing in a new machine that requires a cash payment of $47907 today. The machine will generate annual cash flows of $19946 for the next three years. What is thw internal rate of return if the company buys this machine
Answer:
12%
Explanation:
Calculation for the internal rate of return if the company buys this machine
Using this formula
IRR = Initial investment/Annual Cash flow
Where,
Initial investment =$47,907
Annual Cash flow =$19,946
Let plug in the formula
IRR= $47,907/$19,946
=2.402
Using PV factor table = 2.402
IRR = 12%
Therefore internal rate of return if the company buys this machine will be 12%
A support level is the price range at which a technical analyst would expect the Multiple Choice demand for a stock to decrease substantially. price of a stock to fall. supply of a stock to increase dramatically. supply of a stock to decrease substantially. demand for a stock to increase substantially.
Answer:
The answer is D. demand for a stock to increase substantially.
Explanation:
The point where technical analysts expect a substantial increase in the demand for a stock to occur is called a support level.
Most stock prices remain stable and fluctuate up and down. The lower limit to these fluctuations is called a support level - the price range where a stock appears cheap, making its demand to increase substantially.
On January 1, Parson Freight Company issues 8.0%, 10-year bonds with a par value of $3,200,000. The bonds pay interest semiannually. The market rate of interest is 9.0% and the bond selling price was $2,982,557. The bond issuance should be recorded as:
Answer:
Dr Cash 2,982,557
Dr Discount on bonds payable 217,443
Cr Bonds payable 3,200,000
Explanation:
Preparation for the bond issuance Journal entry
Since we were told that the Company has par value of the amount of $3,200,000 and the bond selling price of $2,982,557 which means the bond issuance should be recorded as:
Dr Cash 2,982,557
Dr Discount on bonds payable 217,443
(3,200,000-2,982,557)
Cr Bonds payable 3,200,000
Bank Reconciliation and Entries
The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $11,810. The bank statement indicated a balance of $15,100 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $5,440.
b. A deposit of $5,660, representing receipts from October 31, had been made too late to appear on the bank statement.
c. The bank had collected $2,940 on a note left for collection. The face of the note was $2,790.
d. A check for $770 returned with the statement had been incorrectly recorded by Deaver Consulting as $700. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account.
e. A check drawn for $740 had been incorrectly charged by the bank as $40.
f. Bank service charges for October amounted to $60.
Instructions:
1. Prepare a bank reconciliation.
2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.
Answer:
1)
bank statement reconciliation:
bank balance $15,100- outstanding checks -$5,440+ deposits in transit $5,660- error in charging check -$700total $14,620
cash account reconciliation:
cash account balance $11,810
+ note collected $2,940
- error made recording check -$70
- bank service fees -$60
total $14,620
2)
income statement:
interest revenues increase by $150
bank fees increase by -$60
profits increase by $90
assets:
cash increases by $2,810
supplies increase by $70
notes receivable decreases by $2,790
total increase $90
liabilities:
do not change
equity:
increase by $90, since profits increase by $90
cash flow statement:
operating cash flow increases by $2,810
Complete the following matrix to analyze the human factors that influence organizational change. Write 1 or 2 complete sentences to explain your rationale for each factor. An example has been provided. Human Factors That Influence Organizational Change Example: Resistance Influence on Organizational Change Example of Global Influence (if any) Example of National Influence (if any) Example: Causes delay in implementing change Example: Workers resist change to avoid outsourcing Example: Workers do not know position of the company in the marketplace Organizational Cause of Factor Example: Occurs because of how change is implemented by leadership 1. Loss of control 2. Uncertainty about future 3. Loss of face 4. Concern about competence 5. Fear of more work 6. Past resentments 7. Feeling threatened References
During May, Keenan Company accumulated 570 hours of direct labor costs on Job 200 and 610 hours on Job 305. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 200 and $23 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May.
Answer:
Dr work-in process $ 25,430.00
Cr wages payable $ 25,430.00
Explanation:
The total labor cost on jobs is the total hours spent on each job multiplied by direct labor cost per hour as shown thus:
Job 200=570*$20=$11,400.00
Job 305=610*$23=$14,030.00
Total direct labor cost on both jobs=$11,400.00 +$14,030.00 =$ 25,430.00
The journal entries in respect of labor cost of $25,430.00 is to debit work-in process and again a credit goes to wages payable
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:
Common Stock, $10 par $440,000
Paid-In Capital from Sale of Treasury Stock-Common 33,200
Paid-In Capital in Excess of Par-Common Stock 132,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Preferred 4% Stock, $50 par 1,020,000
Retained Earnings 2,057,400
Treasury Stock-Common 38,500
Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. There are 3,500 shares of common stock held as treasury stock.
Required:
Prepare the Stockholders' Equity section of the balance sheet as of July 31, the end of the current year.
Answer:
Specialty Auto Racing Inc.Stockholders' Equity section of the balance sheet as at July 31:
Authorized Share Capital:
Common Stock, 200,000 $10 par
Preferred 4% Stock, 50,000 $50 par
Common Stock, Issued share capital, $10 par $440,000
Paid-In Capital in Excess of Par-Common
Stock (132,000 + 33,200) 165,200
Treasury Stock-Common, 3,500 shares (38,500)
Preferred 4% Stock, $50 par 1,020,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Retained Earnings 2,057,400
Total Equity $3,705,300
Explanation:
The Stockholders equity section of the balance reports the Preferred stock, common stock, additional paid‐in‐capital, retained earnings, and treasury stock. It also discloses information regarding the par value, authorized shares, issued shares, and outstanding shares for each type of stock.
The Paid-in Capital from sale of Treasury stock- common of $33,200 is added to the Paid-in Capital in Excess of Par- Common Stock as there is no separate account for it.
Drag each option to the correct location on the image. Match the pairs to their respective categories.
The correct answers are Pairs of Substitutes: tea- coffee, butter-margarine, petroleum-natural gas; Pairs of Complementary goods: printer-ink cartridge, pen-refill
Explanation:
In economics and related fields, substitutes are goods or products that are considered similar by customers and due to this, one product can replace the other. For example, butter and margarine are substitutes because they have similar properties and uses, which makes one product replace the other. This also occurs with tea and coffee, and petroleum and natural gas because one product can replace the other. Also, because of this, it is common customers buy only one of the products rather than both depending on preferences, price, availability, etc.
On the other hand, complementary goods are those that are used together, this often implies customers buy the two products and changes in one product affect the other. This occurs in the case of printer and ink cartridge because the products are used together and buying a printer often implies customers need to buy the cartridges. Similarly, pens and refills for pens are used and bought together, and one cannot replace the other.
A 22-year, semiannual coupon bond sells for $1,066.57. The bond has a par value of $1,000 and a yield to maturity of 6.78 percent. What is the bond's coupon rate
Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $700 million. The depreciation expense for 2020 is expected to be $150 million. The capital expenditures for 2020 are expected to be $375 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 13%. The WACC is 11%. The firm has $199 million of non-operating assets. The market value of the company's debt is $3.534 billion. 120 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today
Answer:
The company's stock price today should be $71.17 per share.
Explanation:
The corporate valuation model approach can be used to estimate this by using the following steps:
Step 1: Calculation of the free cash flow
Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:
Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure
For this question, we therefore have:
Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million
Step 2: Calculation of Value of operations (Vo)
Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million
Step 3: Calculation of the Firm value
Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million
Step 4: Calculation of value of equity
Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million
Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.
Step 5: Calculation of stock price per share today
Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share
Therefore, the company's stock price today should be $71.17 per share.
Maisley Company decided to analyze certain costs for June of the current year. Units started into production equaled 28,000 and ending work in process equaled 4,000. With no beginning work in process inventory, how much is the conversion cost per unit if ending work in process was 25% complete and total conversion costs equaled $140,000
Answer:
The conversion cost per unit is $4.83
Explanation:
First step is to determine the Total Equivalent units of Production for Conversion costs.
Assuming that Maisley Company uses the FIFO method in its production, the following is the Total Equivalent Units of production for conversion costs :
To Finish Opening Work In Process 0
Started and Completed 28,000
Closing Work In Process (4,000 × 25%) 1,000
Total Equivalent Units of production 29,000
Then find cost per equivalent unit of production for conversion costs.
Cost per equivalent unit = Total Current Period Cost / Total Equivalent Units of production
= $140,000 / 29,000
= $4.827586
= $4.83
Conclusion :
The conversion cost per unit is $4.83
A firm with total liabilities and owners’ equity of $100,000 and net sales of $50,000 would have a total asset turnover of
Answer:
= 50000 / 100000 * 100
= 0.50
Explanation:
" Frequently, beer manufacturers run television ads showing attractive, young people having fun and, of course, drinking their beer. These ads are designed primarily to create: "
Answer: To create interest in the youths that it's actually for them mostly.
Explanation:
The way an advert is carried out or planned describes who they are communicating to. The content of the advert targets about 80% of it's market by the content it uses when carrying out the advert. When as advert uses young people frequently, it is primarily targeting the young people to build interest in it's product. So the content of an advert describes the market it wants to sell to.
If beer companies makes use of young people for their adverts then it is known that they simply want more patronize and interest from those young people.
High fixed costs and low variable costs are typical of which approach? product process mass customization repetitive product and mass customization
Answer:
Product and mass customization.
Explanation:
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.
High fixed costs and low variable costs are typical of product and mass customization.
Hence, the high fixed costs are usually a determinant for pricing a product that aren't produced in mass because to break even, businesses would need to rake in more revenues to meet the the increasing (high) fixed costs.
However, when this products are manufactured in mass, this would help to cut or lower down the total cost of production.
When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.8% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced.
(a) Find the amount refinanced. (Round your answer to the nearest cent.)
(b) Find their new monthly payment. (Round your answer to the nearest cent.) $
(c) How long will it take to pay off this new loan if they pay $1200 each month? (Round your answer up to the next whole number.)
Answer:
b
Explanation:
The formula used to calculate the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n months at a monthly interest rate of r is P = L [r(1 +r)n]/[(1 + r)n- 1]