Answer:
Roan Paper Co.
Mixing Department
Production Cost Report for March:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Beginning inventory $350 $245 $200 $795
Costs added during
March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
less Ending inventory $115 $71 $74 $260
Cost of production $5,175 $3,174 $3,351 $11,700
2. General Journal:
Date Description Debit Credit
March
Cost of production $11,700
Direct Materials $5,175
Direct Labor $3,174
Manufacturing overhead $3,351
To record the cost of production for march.
Direct Materials costs $5,175
Direct Labor costs $3,174
Manufacturing overhead $3,351
Cash Account $8,526
Wages Payable $3,174
To record costs of materials, labor and overhead.
Explanation:
a) Data and Calculations for March:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Beginning inventory $350 $245 $200 $795
Costs added during
March 4,940 3,000 3,225 11,165
Total costs $5,290 $3,245 $3,425 $11,960
Total units = 5,000 ( Beginning = 300, March started = 4,200 and Ending = 500 units)
Beginning inventory of 300 and started and completed, 4,200 were 100% complete = 4,500
Ending inventory of 500 were 20% complete = 100 units.
b) Calculation of Equivalent units:
Direct Direct Manufacturing Total Costs
Materials Labor O/h Allocated
Units completed 4,600 4,600 4,600 4,600
Ending inventory 100 100 100 100
Production for March 4,500 4,500 4,500 4,500
Unit cost per
equivalent unit $1.15 $0.71 $0.74 $2.60
Cost of Ending WIP $115 $71 $74 $260
Cost of production $5,175 $3,174 $3,351 $11,700
b) Equivalent units are the units under production multiplied by their percentage of completion. Usually, completed units have 100% completion, while work in process do not have 100% completion with respect to conversion costs, especially. The purpose of calculating equivalent units is to determine accurate costs of units completed.
c) The weighted-average method in allocating production costs means that the beginning inventory, units started and completed in the period, and the equivalent units of ending inventory are added. Then the costs of materials, labor, and overhead are allocated based on the average costs.
The real rate is 4.1 percent and the inflation rate is 5.7 percent. What rate would you expect to see on a Treasury bill
Answer:
10%
Explanation:
The rate on a treasury bill is usually the nominal rate.
1 + Nominal rate = (1 + real rate ) x (1 + inflation rate)
(1.041) x (1.057) = 1.10
1.10 - 1 = 0.10 = 10%
Nominal rate = 10%
I hope my answer helps you
A corporation ran an ad which showed environmental experts praising its social initiatives. The ad encourage readers to visit its website to learn how they could help save the environment. Which copy style was used to describe the company's efforts to help preserve the environment
Answer:
institutional copy.
Explanation:
In the scenario described above, the institutional copy style was used, which can be defined as a type of advertisement whose objective is not to sell a product or service, but rather to promote the selling company through its policies, philosophies and objectives, with the objective of strengthening and creating its reputation so that customers are aware of their values and reputation, generating recognition and prestige.
This is what the company analyzed in the above question did by running an ad that shows environmental experts praising its social practices and encouraging readers to access its website and learn about its positive environmental practices
Your family business uses a secret recipe to produce salsa and distributes it through both smaller specialty stores and chain supermarkets. The chain supermarkets have been demanding sizable discounts, but you do not want to drop your prices to the specialty stores. True or False: One way to offer a lower price while defending yourself against antitrust lawsuits would be to offer a volume discount for larger salsa orders.
Answer:
The correct answer is the option: True.
Explanation:
To begin with, in order to establish a better relationship and also to increase the amount of the company's sales the managers has to establish a discount for larger salsa orders so in that way the big supermarket will buy more and will be satisfy for the discount and with the price they are getting and the specialty stores will understand that the difference in the price is due to the amount of the orders. Moreover, by doing that strategy the company is not breaking the antitrust law because there is no special arrengement between the company and the supermaket but is just a matter of volumen and if the specialty stores increases their orders then they will have the discount as well, and therefore the antitrust law is not been broke in any way.
Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. Which of the following types of diversification strategies is the firm pursuing?
a) geographic diversification strategyb) product-market diversification strategyc) product diversification strategyd) process diversification strategy
Answer:
a) geographic diversification strategy.
Explanation:
In this scenario, Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. The type of diversification strategies the firm is pursuing is a geographic diversification strategy.
Geographical diversification strategy can be defined as the process of diversifying your investments across various geographical regions (market) so as to improve profits or returns on investment and primarily to mitigate the overall business risk.
Hence, using the geographic diversification strategy Symphon Times Inc., is spreading its risk across various geographical regions or emerging nations by allocation of its resources in order to prevent them from being vulnerable to external conditions and to improve their performance and competitiveness. Thus, a geographic diversification strategy is simply a business management strategy that entails "not putting all your eggs in a basket" rather you should have them spread across in order to prevent or mitigate the overall risks.
Additionally, in order to preserve wealth and to reduce portfolio risks it is advisable that business owners such as Symphon Times Inc. engage in geographic diversification strategy.
The risk-free rate of return is 5 percent and the market risk premium is 12 percent. What is the expected rate of return on a stock with a beta of 1.4
Answer:
Expected rate of return= 21.8 %
Explanation:
The capital asset pricing model is a risk-based model for estimating the return on a stock.. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM,
E(r)= Rf + β×(Rm-Rf)
E(r)- expected return- ?
Rf-risk-free rate- 5%
β= Beta - 1.4
(Rm-Rf) - 12
E(r) = 5% + 1.4× (12%)= 21.8 %
Expected rate of return= 21.8 %
Ferkil Corporation manufacturers a single product that has a selling price of $100 per unit. Fixed expenses total $225,000 per year, and the company must sell 5,000 units to break even. If the company has a target profit of $67,500, sales in units must be:
Answer:
Break-even point in units= 6,500 units
Explanation:
Giving the following information:
Selling price per unit= $100
Fixed expenses total $225,000 per year
Break-even point= 5,000
Desired profit= $67,500
First, we need to calculate the contribution margin per unit:
Break-even point in units= fixed costs/ contribution margin per unit
5,000= 225,000 / contribution margin per unit
contribution margin per unit= 225,000/5,000
contribution margin per unit= $45
Now, we can determine the number of units to be sold:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (225,000 + 67,500) / 45
Break-even point in units= 6,500 units
In a world with no taxes, Modigliani and Miller (MM) show that a firm's capital structure does not affect its value. However, when taxes are considered, MM show a positive relationship between debt and value, i.e., the firm's value rises as it uses more and more debt, other things held constant.
A. True
B. False
Answer:
true
Explanation:
with taxes, the value of a company increases as more debt is used. the value of a company with debt is greater than the value of the company without debt for the same level of operating income.
according to the MM proposition, the value of the company with tax = Vu + tD
Where Vu is value of unlevered company and tD is tax rate multiplied by debt . tD is known as tax shield. As debt increases, the value of the tax shield increases and the value of the company increases
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance.
Asset Cost Residual Service Life Depreciation Depreciation
Value (Years) Method (Year 2)
A 31,000 5 DDB $30,000
B 30,000 8 SYD 35,00
C 87,000 6,000 SL 9,000
D 252,000 21,000 10 23,100
E 211,000 3,100 8 150%DB
Answer:
Asset Cost Residual Service Life Depreciation Depreciation
Value (Years) Method (Year 2)
A $125,000 $31,000 5 DDB $30,000
B $30,000 $12,000 8 SYD $3,500
C $87,000 $6,000 9 SL $9,000
D $252,000 $21,000 10 straight line $23,100
E $211,000 $3,100 8 150%DB $32,144.53
A) double declining balance:
2 x 1/5 x 0.6cost = $30,000
0.6cost = $30,000 / 0.4 = $75,000
cost = $75,000 / 0.6 = $125,000
B) 8 + 7 + 6 + 5 +4 + 3 + 2 + 1 = 36
depreciation year 2 = 7/36 x ($30,000 - residual value) = $3,500
$30,000 - residual value = $3,500 x 36/7 = $18,000
residual value = $30,000 - $18,000 = $12,000
C) straight line depreciation per year = net depreciable value / useful life
$81,000 / useful life = $9,000
useful life = $81,000 / $9,000 = 9
D) straight line since depreciation per year x useful life = net depreciable value
$23,100 x 10 = $231,000
E) 150% double declining
year 1 = 1.5 x 1/8 x $211,000 = $39,562.50
year 2 = 1.5 x 1/8 x $171,437.50 = $32,144.53
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold every year at a price of $5 per case. After the tax, 44 billion cases of cola are sold every year; consumers pay $6 per case, and producers receive $2 per case (after paying the tax).
The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $_________ per case, and the burden that falls on producers is $ _____ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Answer:
U.S. Tax Burden on Cola:
The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Explanation:
The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5). However, the cash received by producers reduced by $3 from $5 to $2. This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).
This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.
"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone. This because the price of cola would have increased to $9 per unit. Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.
The amount of the tax on a case of cola is $4 per case. Of this amount, the tax burden that falls on consumers is $1 per case, and the burden that falls on producers is $3 per case.
What do you mean by tax burden?Tax Burden is a measure of the tax liability imposed by the government on the citizens of a country.
The tax burden on consumers, represented by the price difference of cola from $ 5 to $ 6 per unit is $ 1 ($ 6 - $ 5).
However, producers' revenue has been reduced by $3 from $ 5 to $2.
This indicates that the total tax burden on both buyers and producers is $4 ($ 1 + $ 3).
This represents a total tax burden of $4 or approximately 67% based on the new sales value of cola or 80% based on the old sales value of cola.
Therefore, The statement is true; "The impact of taxes on the sale price would be huge if the tax was levied on consumers alone. This is because the price of cola would increase to $ 9 per unit.
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Next Friday, you plan to sell cakes at a bake sale to raise money for your school. You plan to charge $30 per cake, and you anticipate that you will sell 10 cakes. You can either purchase cakes to sell or bake them yourself. If you purchase the cakes, they will cost $15 each. If you bake your own cakes, your cost depends upon the number of cakes you bake, as shown in the table below.
Number of cakes Total cost of baked cakes ($) you bake 0 1 2 3 0 10 36 52 70 90 112 136 162 190 5 7 10
a) How many cakes should you bake? How many cakes should you purchase?
b) Given your answer to part a, how much in total will the 10 cakes cost cake(s) and purchasecake(s) you?
c) How much would it have cost you to bake all 10 cakes?
d) How much would it have cost you to purchase all 10 cakes?
Answer:
a) How many cakes should you bake? How many cakes should you purchase?
you should bake 5 cakes and purchase 5.b) Given your answer to part a, how much in total will the 10 cakes cost cake(s) and purchase cake(s) you?
$145c) How much would it have cost you to bake all 10 cakes?
$190d) How much would it have cost you to purchase all 10 cakes?
$150Explanation:
expected sales 10 cakes
price per cake $30
purchase price $15 per cake
Number of cakes Total cost of baked cakes ($) you bake
0 0
1 10
2 22
3 36
4 52
5 70 average price = $14 per cake
6 90 average price = $15 per cake
7 112
8 136
9 162
10 190
If you make 5 cakes your cost will be lower than if you purchase them. But if you want to bake 6 cakes, then the total cost is the same as purchasing them, therefore, it would be better to start purchasing them.
a) you should bake 5 cakes and purchase 5.
b) $145
c) $190
d) $150
The calculation is as follows:expected sales 10 cakes
price per cake $30
purchase price $15 per cake
Number of cakes Total cost of baked cakes ($) you bake
0 0
1 10
2 22
3 36
4 52
5 70 average price = $14 per cake
6 90 average price = $15 per cake
7 112
8 136
9 162
10 190
If you make 5 cakes your cost will be lower than if you purchase them. However, if you want to bake 6 cakes, so the total cost is the same as purchasing them, therefore, it would be better to start purchasing them.
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A share of BAC common stock has just paid a dividend of $1.00. The market return is 12% and the beta is 1.5. The three month T-bill rate is 4%. The expected long-run growth rate for this stock is 8%. What is the required return for the stock? What is the stock price?
Answer:
Required rate of return= 16%
Stock price= $13.50
Explanation:
A share of BAC common stock just made a dividend payment of $1
Market return is 12%
Beta is 1.5
Risk-free rate is 4%
Growth rate is 8%
The required rate of return for the stock can be calculated as follows
Required rate of return= Risk-free rate+beta×(market rate-risk-free rate)
= 4%+1.5(12%-4%)
= 4%+1.5×8%
= 4%+12
= 16%
The stock price can be calculated as follows
Stock price= dividend for the year/(rate of return-growth rate)
= (1×1.08)/(16/100-8/100)
= 1.08/0.16-0.08
= 1.08/0.08
= $13.50
Hence the required rate of return and the stock price is 16% and $13.50 respectively.
Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $320,000 and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? Select the correct answer. a. 4.38% b. 2.14% c. 3.26% d. 3.82% e. 2.70%
Answer: d. 3.82%
Explanation:
ROE = Net Income / Equity so Equity need to be ascertained.
1.75 = Total Assets/ Total Equity
Total Equity = Total Assets/ 1.75
1.33 = Revenue / Total Assets
Total Assets = Revenue / 1.33
= 320,000/1.33
= $240,601.50
Total Equity = 240,601.50/1.75
= $137,486.57
Old ROE = 10,549/ 137,489.57
= 0.07672582
= 7.67%
New ROE = (10,549 + 5,250) / 137,489.57
= 0.11491053466
= 11.49%
Difference = 11.49 - 7.67
= 3.82%
You deposit $500 in an account earning 5% interest compounded annually. How much will you have in the account in 10 years?
Answer:
Future Value= $814.45
Explanation:
Giving the following information:
Initial investment= $500
Interest rate= 5% interest compounded annually.
Number of years= 10
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
FV= 500*(1.05^10)
Future Value= $814.45
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements Depletion Expense, indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
A. Added to Net Income
B. Deduct from Net Income
1. Increase in accounts receivable
2. Increase in inventory
3. Decrease in prepaid expenses
4. Decrease in accounts payable
5. Increase in accrued liabilities
6. Increase in income taxes payable
7. Depreciation expense
8. Loss on sale of investment
9. Gain on disposal of equipment
10. Amortization expense
Answer:
1.B
2.B
3.A
4.B
5.A
6.A
7.A
8.A
9.B
10.A
Explanation:
The Net Income is adjusted with non-cash items and changes in working capital to reach Net Cash Flow from Operating Activities.
The Non Cash Expenses previously deducted must be added back whilst the Incomes previously included must be deducted from it.
The items that increase Working Capital must be deducted whilst items that decrease working capital must be added back.
Use the following demand schedule to determine total and marginal revenues for each possible level of sales.
Product
Price Quantity Demanded Total Revenue Marginal Revenue
$2 0 $ ---
2 $
2 2
2 3
2 4
2 5
What can you conclude about the structure of the industry in which this firm is operating?
The industry is purely monopolistic.
The industry is purely oligopolistic.
The industry is an example of monopolistic competition.
The industry is purely competitive.
Answer:
please check the attached image for the completed table containing the answers
The industry is purely competitive.
Explanation:
please check the attached image for a clear image of the table used in answering this question
Total revenue = product price x quantity demanded
for example, total revenue when quantity demanded is 2 is $ x 2 = $4
Marginal revenue is change in total revenue.
marginal revenue = total revenue - previous total revenue
e.g. marginal revenue when quantity demanded is 2 is = $4 - $2 = $2
the structure of the industry is a purely competitive market because price is equal to marginal revenue.
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Pharoah Company purchased equipment in 2020 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2021, there was $67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2022, the equipment was sold for $21,000.
Prepare the appropriate journal entries to remove the equipment from the books of Pharoah Company on March 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
Pharoah Company
General Journal
Debit Sale of Equipment $104,000
Credit Equipment account $104,000
To close the equipment account.
Debit Accumulated Depreciation $69,600
Credit Sale of Equipment $69,600
To close the accumulated depreciation account.
Debit Cash Account $21,000
Credit Sale of Equipment $21,000
To record the cash receipts from the sale.
Explanation:
a) Calculations:
Purchase price = $104,000
Salvage value = $8,000
Depreciable amount = $96,000
Depreciation per year = $9,600 ($96,000/10)
Accumulated Depreciation at Dec. 31, 2021 = $67,200
This shows that the equipment was bought 7 years ago (not clear from the question), because $9,600 x 7 = $67,200
b) Depreciation expense for 2022 = $2,400 ($9,600 x 3/12)
c) Total accumulated depreciation = $69,600 ($67,200 + 2,400)
d) The difference in the Sale of Equipment account is the loss on sale = $13,400 ($104,000 - 69,600 - 21,000). This shows that the equipment was sold at a loss of $13,400.
Brett Thiesen wants to make a political case for regional economic integration to his electorate. Which valid statement can he make in his regard?A) Those seeking a united europe have always had a desire to make another way in europe imminentB) Linking neighboring economies increases the potential for violent conflictC) making neighboring economies increasingly dependent on each other fails to create incentives for political cooperationD) Countries can enhance their political weight in the world by grouping their economiesE) free trade stimulates economic growth, which creates dynamic gains from trade
Answer:
If Brett Thiesen wants to make a political case for regional economic integration to his electorate, the valid statement he can make in this regard is
E) free trade stimulates economic growth, which creates dynamic gains from trade.
Explanation:
Free trade among regional countries is the only sure way to "stimulate economic growth and create dynamic gains from trade." According to wikipedia.com, "Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade." It is free trade system that created the European economy, enabling them to replace their national currencies with the Euro. Regional free trade also encourages the movement of not only goods, but also persons and services, and cultures.
Suppose that the federal administration plans to fight a deep, ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget accordingly to put the plan in motion immediately. Aggregate demand spending components include consumption (C), investment (I), government (G), and exports (X) minus imports (M). Analyze what the aggregate demand and aggregate supply model predicts about the infrastructure plan to answer three questions. Does the level of G increase ( ), decrease (-), or stay constant (0)
Answer: Increase (+)
Explanation:
The Government component of the Aggregate Demand refers to money spent by the Government/ Public sector to provide certain needs for the economy such as Education, Defense and Healthcare.
When the government spends on infrastructural development such as the scenario described in the text, they are engaging in a form of spending known as Government Investment. This will increase the amount of G in the aggregate demand model.
Bank A pays 2% interest compounded annually on deposits, while Bank B pays 1.75% compounded daily.
a. Based on the EAR (or EFF%), which bank should you use?
b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year?Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
Answer:
Bank A
Yes
Explanation:
Effective annual rate = ( 1 + periodic interest rate)^m - 1
periodic interest rate = interest rate / number of compounding per year
m = number of compounding per year
Bank A = (1 + 0.02) - 1 = 2%
Bank B = (1 + 0.0175 / 365)^365 - 1 = 1.7654%
Bank A should be chosen because the EAR is higher
Yes, it should. if one plans to withdraw during the year, Bank B would be a better option because the amount invested would earn interest when withdrawn.
if one plans to withdraw within the year, and he invests in Bank A, if withdrawal is made within the year, all interest would be forfeited.
a. Bank A should be selected.
b. Yes
Calculation of the EAR:Since we know that
Effective annual rate = ( 1 + periodic interest rate)^m - 1
Here,
periodic interest rate = interest rate / number of compounding per year
m = number of compounding per year
Now
Bank A = (1 + 0.02) - 1 = 2%
Bank B = (1 + 0.0175 / 365)^365 - 1 = 1.7654%
Bank A should be selected since the EAR is higher
b.
Yes, it should. In the case, one plans should be withdrawn at the time of year so here bank B should be a better option since the amount invested earned interest at the time of withdrawn.
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7. A fast-food chain plans to expand by opening several new restaurants. The chain operates two types of
restaurants, drive-through and full-service. A drive-through restaurant costs RM 100.000 to construct,
requires 5 employees, and has an expected annual revenue of RM 200.000. A full service restaurant
costs RM 150.000 to construct, requires 15 employees, and has an expected annual revenue of RM
500,000. The chain has RM 2,400,000 in capital available for expansion. Labor contracts require that
they hire no more than 210 employees, and licensing restrictions require that they open no more than
20 new restaurants.
(a) How many restaurants of each type should the chain open in order to maximize the expected
revenue? [1 point)
≤
Explanation:
Drive through Full Service
Annual revenue 200,000 500,000
Cost 100,000 150,000
Income 100,000 350,000
Employee 5 15
Income / employee 20,000 23,333.33
Using simultaneous equation ,
Let X represent the drive through service ,and Y represent the full service restaurant
Budget = 100,000x + 150,000y ≤ 2,400,000 (equation 1)
Employer = 5x + 15y ≤ 210 (equation 2)
(Divide equation 1 by 10 ,000)
10x+ 15y ≤ 240 (equation 3)
Using elimination method, multiply equation 2 by -2
10x +15y ≤240
-10x - 30y ≤-420
-15y ≤ -180
y≤ -180/-15
y = 12
substitute y = 12 in equation 3
10x + 15y≤240
10x +180 ≤240
10x≤240-180
10x≤60
x≤6
12 1,800,000 180
6 600,000 30
6 drive through services and 12 full services should be opened.
6 Drive through 12 full service 20
Cost 600,000 1,800,000 2,400,000
Employees 30 180
Net income 600,000 4,200,000
Strategic business units that have a relatively low market share but have the potential to grow are best categorized under _____ in the Boston Consulting Group (BCG) growth-share matrix.
Answer:
The answer is question marks
Explanation:
Boston Consulting Group (BCG) growth-share matrix are grouped into four:
Star
Question mark
Cash cows
Dogs.
Question mark, which is of interest to us in this question requires much closer consideration. They are growing rapidly and as a result consume large amounts of money.They have low market shares but have potential to gain market share and become stars and eventually cash cows when market growth slows At that stage(question marks), they do not generate much cash.
They are a starting point for most businesses.
Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?
a. The creation of the Soviet Union and the higher tariffs on imports.
b. Growing jingoistic nationalism and a negative population growth rate in major international markets.
c. Resistance to direct investment and increasing competition in export markets
d. Increasing Chinese domination in the manufacturing sector and the falling dollar in global markets
e.The decreased demand for U.S. goods in the global market and the growing influence of consumer rights advocacy in the home market
Answer:
The correct answer is the option C: Resistance to direct investment and increasing competition in export markets.
Explanation:
To begin with, the decade of 1960's was completely full of changes in the american life due to the big events that happened during that time. Moreover, the two most important challenges that the american economy had to face up were the fact that the direct investment was hardly constat and did not increase and the current fight in order to increase the competition in exports markets and all that because of the high expenditures that the government did due to the Vietnam War and the Space Race. Also, while the government spending increased the exports were reduce in the market because of the increase in the China's techonolgy exports.
Bendel Inc. has an operating leverage of 4.3. If the company's sales increase by 15%, its net operating income should increase by about:
Answer:
64.5%
Explanation:
The requirements of this question is to calculate increase in net operating income.
Increase = 15 percent
Operating leverage = 4.3
increase in net operating income.
Operating leverage x sales increase
= 15 x 4.3
= 64.5%
I hope this answer is helpful.
Turner Inc. produces two products P1 and P2. The company has provided you with the following information. Assume that the current sales volume of P1 and P2 reflects the long run sales mix of the firm.
P1 P2
Selling price per unit $30 $60
Variable cost per unit $10 $30
Numberof units sold 9,000 6,000
Total fixed costs $240,000
Select ALL statements that are true. All numbers in the answer choices are rounded off to 2 decimals. Breakeven volume in units is rounded off to the next higher integer.
A. 40% of Turner's revenue comes from P2
B. The operating leverage for Turner now is 0.47
C. Turner makes a contribution of $0. 57 per dollar of revenue, on the average.
D. Turner will breakeven when it reaches a revenue of $420,000.
E. The breakeven volume for Turner is 9,334 units
Answer:
B. The operating leverage for Turner now is 0.47 ⇒ TRUE
operating leverage = fixed costs / total costs = $240,000 / $510,000 = 0.47
C. Turner makes a contribution of $0. 57 per dollar of revenue, on the average. ⇒ TRUE
total contribution margin = ($20 x 9,000) + ($30 x 6,000) = $180,000 + $180,000 = $360,000
total revenue = $630,000
contribution margin per $ of revenue = $360,000 / $630,000 = $0.57
D. Turner will break even when it reaches a revenue of $420,000. ⇒ TRUE
break even point in $ = (6,000 x $30) + (4,000 x $60) = $180,000 + $240,000 = $420,000
Explanation:
A. 40% of Turner's revenue comes from P2 ⇒ FALSE
total revenue = $270,000 + $360,000 = $630,000
revenue from P2 = $360,000, which represents 57.14% of total revenue
E. The breakeven volume for Turner is 9,334 units ⇒ FALSE
in order to calculate break even point, we can prepare a bundle of products = 3P1 + 2P2
contribution margin per bundle = $120
break even point = $240,000 / $120 = 2,000 bundles
6,000 P1 and 4,000 P2
At Mattel, a marketing information system stores data on regional sales activities, promotional costs, and international inventory levels. These data are examples of external sources.
Answer:
It is false.
Explanation:
At Mattel, a marketing information system stores data on regional sales activities, promotional costs, and international inventory levels. These data are not examples of external sources but are internal sources.
Internal sources of market information are informations that are gotten from within the company such as regional sales activities, promotional costs, and international inventory.
However, the external sources of information are informations that are gotten outside of the company such as survey from customers, competitors etc.
One of the fastest way to acquire knowledge is to hire individuals or purchase entire companies that have valued knowledge.
A. True
B. False
Answer:
True
Explanation:
Knowledge is something that cannot just be acquired within a day. It requires lots of reading, studying different books, rigorous amount of trainings and carrying out various research to learn something new. All this takes some period of time, maybe months or years because there is a need to perfectly master the field of study.
Therefore one of the fastest ways to acquire knowledge at a fast rate is to hire an individual who is an expert in that field or purchase an entire company that has already gained the knowledge because trying to achieve that on your own is time consuming.
This is an added advantage to the organisation as it helps to increase its growth rate and face any form of competition in the market.
Hence the statement above is true.
43) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? A) $5776 B) $9626 C) $11,551 D) $13,476
Answer:
PV= $9,626.49
Explanation:
Giving the following information:
Cash flow= $1,500
Interest rate= 9%
Number of years= 10
First, we will determine the future value, using the following formulas:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {1,500*[(1.09^10) - 1]} / 0.09
FV= $22,789.395
Now, the present value:
PV=FV/(1+i)^n
PV= 22,789.395/(1.09^10)
PV= $9,626.49
Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October that one of its salesclerks had stolen an undetermined amount of cash receipts while taking the daily deposits to the bank. The following data have been gathered for October:
Cash in bank according to the general ledger $7,030
Cash according to the October 31 bank statement 16,240
Outstanding checks as of October 31 4,640
Bank service charge for October 20
Note receivable, including interest collected by bank in October 7,520
Requied:
a. Determine the amount of cash receipts stolen by the sales clerk.
b. What accounting controls would have prevented or detected this theft?
Answer:
a. Determine the amount of cash receipts stolen by the sales clerk.
$2,930
b. What accounting controls would have prevented or detected this theft?
It is simple, one single person cannot be in charge of collecting cash and making the deposits. At least 2 people must be involved in the process, that way, there will always be someone controlling what the other person does.
Explanation:
Reconciled bank statement:
Bank statement $16,240
- Outstanding checks $4,640
Reconciled bank statement $11,600
Cash account reconciliation:
Cash account balance $7,030
+ Note collected by bank $7,520
- Bank fees $20
Reconciled cash account $14,530
Amount stolen by sales clerk = $14,530 - $11,600 = $2,930
In a department, 35 comma 000 units are completed and transferred out and 12 comma 400 remain in ending WIP at 85% complete. If an equivalent unit costs $ 10.00 for direct materials, what is the value of materials transferred out?
Answer:
$350,000
Explanation:
The computation of the value of material transferred out is shown below:
= Completed and transferred units × equivalent cost for direct material per unit
= 35,000 units × $10
= $350,000
Therefore by multiplying the completed & transferred units with the equivalent cost for direct material per unit we can get the value of material transferred out
Cellar Wines has a debt-equity ratio of 0.54, sales of $728,700, net income of $94,900, and total debt of $382,000. What is the return on equity
Answer:
13.42%
Explanation:
Here is an solution to the question below.
Debt equity ratio = 0.54
Sales = $728700
Net income = $94900
Total debt = $382000
Total equity ratio = net income / (total debt/ debt equity ratio)
total debt/ debt equity ratio = 382000/0.54 = 707,407.4
Total equity ratio = 94900/707,407.4
= 0.1342 x 100
= 13.42%
This is the return on equity.