Answer:
b) Beverly has absolute advantage in both activities.
Explanation:
Absolute advantage is defined as the ability of an entity to produce more output given the same resources as other entities.
It shows superior production capacity of one entity over another.
In the given scenario Jean-Luc earns ten dollars for time spent in the labor market or can produce a meal worth five dollars for an hour of cooking. On the other hand, suppose Beverly earns fifteen dollars for time spent in the labor market or can produce a meal also worth fifteen dollars for an hour of cooking.
For both time spent in the labour market and in home cooking Beverly outperforms Jean-Luc so she has absolute advantage in bother activities.
Prepaid (deferred) expenses adjustments LO P1 For each separate case below, follow the three-step process for adjusting the supplies asset account at December 31. nts
Step 1: Determine what the current account balance equals
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Skipped Assume no other adjusting entries are made during the year eBook
a. The Supplies account has a $360 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $140 of supplies remaining.
Hint Supplies
Step 1: Determine what the current account balance equals.
Print Step 2: Determine what the current account balance should equal.
eferences Step 3: Record the December 31, adjusting entry to get from step 1 to step 2
b. The Supplies account has an $950 debit balance to start the year. Supplies of $2,400 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $725 of supplies remaining. Supplies
Step 1: Determine what the current account balance equals
Step 2: Determine what the current account balance should equal.
Step 3 Record the December 31, adjusting entry to get from step 1 to step 2
Answer:
a. In the adjusting entries, Supplies expenses is $220.
b. In the adjusting entries, Supplies expenses is $2,625.
Explanation:
a. The Supplies account has a $360 debit balance to start the year. No supplies were purchased during the current year. A December 31 physical count shows $140 of supplies remaining.
Note: See the attached excel file for Steps 1, 2 and 3.
In the attached excel file, the Supplies expense in the adjusting entries is calculated as follows:
Supplies expense = What the current account balance – What the current account balance should be = $360 - $120 = $220
b. The Supplies account has an $950 debit balance to start the year. Supplies of $2,400 were purchased during the current year and debited to the Supplies account. A December 31 physical count shows $725 of supplies remaining.
Note: See the attached excel file for Steps 1, 2 and 3.
In the attached excel file, the Supplies expense in the adjusting entries is calculated as follows:
Supplies expense = What the current account balance + Supplies purchased during the current year – What the current account balance should be = $950 + $2,400 - $725 = $2,625
elaborate on the meaning of contemporary socio-economic issues.
Answer: See explanation
Explanation:
Contemporary Socio-economic issues are the challenges that are faced by the society. It should be noted that these problems and challenges have s negative impact on the economy and the society as a whole.
Some of the contemporary socio-economic issues that are faced by the society are poverty, corruption, illteracy, unemployment, etc.
These issues poses a challenge to the government and government seek ways to address them.
Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $667,500 plus $667,500 in cash. Simone's tax basis in the Purple stock was $263,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives
Answer: $667,500 gain recognized and a basis in Plum stock of $263000
Explanation:
The amount of gain that Simone recognize in the exchange and her basis in the Plum stock she receives will be:
Gain realized = $667500 + $667500 - $263000 = $1598000
Cash Received = $667500
The Gain recognized will be the lesser amount between the gain realized and cash received which will be $667500.
Therefore, the answer is $667,500 gain recognized and a basis in Plum stock of $263000
nflation, recession, and high interest rates are economic events that are best characterized as being A.factors associated with market risk. B.unsystematic risk that can be diversified away. C.risks that are beyond the control of investors and thus should not be considered by security analysts or portfolio managers. D.irrelevant except to governmental authorities like the Federal Reserve. Epany-specific risks that can be diversified away.
Answer:
A. Factors associated with market risk.
Explanation:
Inflation, recession, and high-interest rates are economic events that all investors need to be aware of. Diversification can lower these risks, but does not eliminate them. They generally are beyond the control of investors, but they should always be considered by security analysis, portfolio managers, and stockbrokers. They are not irrelevant in any way, shape, or form. Everything done with stocks, bonds, and mutual funds should be coordinated based on inflation, recessions, and high interest rates.
You are given the following information: sales, $260; expenses other than depreciation, $140; depreciation expense, $50; marginal income tax rate, 35%. Calculate the net after-tax cash flow effect of the preceding information using both the indirect and direct methods. (Round your answers to 2 decimal places.)
Answer:
See below
Explanation:
1. The net cash after-tax cash flow effect of the preceding information of using the indirect method.
First, we need to calculate the pretax income.
Pretax income = Sales - Expenses other than depreciation - depreciation expense
Pretax income = $260 - $140 - $50 = $70
Also,
Tax expense = 35% × pretax income $70 = $24.5
Therefore, the indirect method would be;
Pretax income
$70
Less:
Tax expense
($24.5)
After tax income
$45.5
Add:
Depreciation expense
$50
After-tax cash flow
$95.5
Direct method
After tax cash operating income
[($260 - $140 - $50) × (1 - tax rate 35%)]
$45.5
Add :
Depreciation expense
$50
After tax cash flow
$95.5
Here are three things you could do if you do not attend your economics class: go to a free outdoor yoga class with some friends (you value this at $15), go on a hike (you value this at $13), or go in to work (you could earn $20 during the economics class). The opportunity cost of going to your economics class is:
Answer:
C
Explanation:
$25 dollars because this is the highest valued alternative forfeited
The Opportunity Cost of going to economics is $20 (if you go in for work) because that’s the the best alternative
What is Opportunity Cost?In microeconomic theory, the opportunity cost of a particular activity option is the loss of value or benefit that would be incurred by engaging in that activity, relative to engaging in an alternative activity offering a higher return in value or benefit.
What is meant by Economics?Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics is a field which analyzes what's viewed as basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions.
Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it:
employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these
elements.
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Here are a series of Mondelēz’s publicly announced objectives for enhancing sustainability:
Reducing production waste to landfill sites by 60 percent
Reducing our energy and GHG in manufacturing
Educating employees to reuse water and improve processes
Reducing the impact of our operations
Addressing child labor in the cocoa supply chain
Reducing packaging material
Eliminating 50 million pounds of packaging material
Buying certified commodities
Which of these are best considered strategic plans? Tactical plans? Operational plans? Which ones might qualify as programs? Projects? Policies? Be sure to explain your reasoning for each item.
Answer:
Strategic plans are made by the upper echelon of a company's management. They are long term and done with the intent to achieve company wide missions and visions.
Tactical plans come next and are made by the middle-level managers. They are not as long term as strategic plans and are typically less than a year but more than half a year. They are done to meet the strategic plans.
Operational plans are not very long term and are typically under half a year. They aim to meet strategic plans and are done by low-level management. It is usually detailed as it aimed at a particular goal.
Strategic Plans
Reducing production waste to landfill sites by 60 percent.Reducing the impact of our operations. Addressing child labor in the cocoa supply chain.Tactical Plans
Reducing our energy and GHG in manufacturing.Educating employees to reuse water and improve processes.Reducing packaging material.Operational Plans
Eliminating 50 million pounds of packaging material.Buying certified commodities.Projects are specific and so have specific goals as they aim to achieve a particular mission. They have a defined start and finish.
Programs on the other hand are a group of projects which would produce individual results that when put together, contribute to the larger goal of the program.
Policies are the guidelines that a company institutes in order to meet their goals.
Projects
Reducing production waste to landfill sites by 60 percent.Eliminating 50 million pounds of packaging material.Educating employees to reuse water and improve processes.Policies
Buying certified commodities.Reducing packaging material.Addressing child labor in the cocoa supply chain.Programs
Reducing our energy and GHG in manufacturing.Reducing the impact of our operations.Based on the information given, the strategic plans will be:
Reducing production waste to landfill sites by 60 percent.Reducing the impact of our operations.Addressing child labor in the cocoa supply chain.The tactical plans will be:
Reducing our energy and GHG in manufacturing.Educating employees to reuse water and improve processes.Reducing packaging material.The operational plans will be:
Eliminating 50 million pounds of packaging material.Buying certified commodities.The projects are:
Reducing production waste to landfill sites by 60 percent.Eliminating 50 million pounds of packaging material.Educating employees to reuse water and improve processes.The policies are:
Buying certified commodities.Reducing packaging material.Addressing child labor in the cocoa supply chain.The programs are:
Reducing our energy and GHG in manufacturing.Reducing the impact of our operations.Strategic plans are used for the determination of the vision of the company and the identification of goals.
Tactical plans are important to achieve strategic plans. Operational plans are required for planning strategic objectives.
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The following statement is TRUE about Lean A. Lean means forcing people to work faster and harder with fewer resources. B. Lean is about improving processes. All businesses have processes, so all businesses can improve and benefit from adopting lean. C. Just-In-Time is when parts/supplies arrive at the last possible moment. D. Lean is all about cost-cutting and results in much of the workforce getting fired. E. Lean will cost a lot of money to introduce in an organization.
Answer: B. Lean is about improving processes. All businesses have processes, so all businesses can improve and benefit from adopting lean.
Explanation:
Lean is all about improving processes by cutting costs and removing unproductive activities that are weighing the company down so that the company can benefit from being more efficient.
As every company uses processes to function, they can all benefit from adopting lean. Lean is relatively cheap to introduce and will bring value to the customer as well.
The correct statement about Lean is "Lean is about improving processes. All businesses have processes, so all businesses can improve and benefit from adopting lean."
What is Lean?Lean manufacturing refers to production method that primarily focuses on reducing time within the system and response time that is taken by the customers.
It therefore improves the process of manufacturing, delivery, collection from customers. It does not involves forcing anyone to work faster but try to find ways to reduce ideal time.
Therefore the correct option is B.
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Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 15.0%. The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? Do not round your intermediate calculations.
What is the total cost of a 15-year mortgage if the monthly payment is $1718.70? A. $447,585.60 B.$281.683.80 C. $309, 366.00 D.
$285, 794.12
Answer:
Total Cost = $309,366
Explanation:
Given:
Number of year = 15 year
Monthly payment = $1,718.70
Find:
Total Cost
Computation:
Total Cost = Number of year x 12 months x Monthly payment
Total Cost = 15 x 12 x 1,718.70
Total Cost = $309,366
The exact indifference curves of different investors:_______
a) cannot be known with perfect certainty. can be calculated precisely with the use of advanced calculus.
b) although not known with perfect certainty, do allow the advisor to create more suitable portfolios for the client.
c) cannot be known with perfect certainty and, although not known with perfect certainty, do allow the advisor to create more suitable portfolios for the client.
Answer:
Option c) cannot be known with perfect certainty and, although not known with perfect certainty, do allow the advisor to create more suitable portfolios for the client.
Explanation:
The indifference curves notably cannot be calculated on a precise point but the theory does allow for the invention or creation of more suitable portfolios for investors that has dissimilar levels of risk tolerance.
An Indifference curve is commonly known as a line. The line depicts or shows combinations of goods among which a consumer is indifferent. It shows also the combinations of goods that can be are affordable. In the curve,consumer tend to not like or desire one combination of goods to another combination of goods that is shown on a curve/line.
Joan runs a drop-in play center and until recently she was the only business in town where families could find reasonably-priced entertainment for their children. Joan learned that two fast-food restaurants with play areas are being built nearby so she is coming up with ways to convince her customers that her center is preferable. Which of Porter's five competitive forces is Joan specifically worried about
Answer:
The answer is "Threats of substitute products or services "
Explanation:
The threat of substitutes is that other goods can be imported outside a consumer's industry. It happens whenever companies in one sector were expected to fight with firms that manufacture substitute products or services. Another of the five forces that decide the strength of competition in the industry, was its risk of substitutes. When substitute products offer a reasonably close number of benefits at competitive prices, therefore the reasonable structure of the industry threatens.
Swift Co. produces footballs. It incurred the following costs this year: Direct materials $35,000 Direct labor 31,000 Fixed manufacturing overhead 22,000 Variable manufacturing overhead 38,000 Fixed selling and administrative expenses 23,000 Variable selling and administrative expenses 14,000 What are the total product costs for the company under variable costing
Answer:
$104,000
Explanation:
With regards to the above information,
the variable costing method incorporates all variable production cost including the direct material , direct labor and variable overhead.
Given that;
Direct material = $35,000
Direct labor = $31,000
Variable manufacturing overhead = $38,000
Therefore,
Total variable cost
= $31,000 + $35,000 + $38,000
= $104,000
The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,000 liters in beginning work in process inventory (30% complete). During the period 71,000 liters were completed. The ending work in process was 5,000 liters (70% completed). All inventories are costed by the first-in, first-out method. What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process
Answer:
73,000 units
Explanation:
Equivalent units
Focus on the work done during the production period when using FIFO.
Direct materials = 68,000 + 5,000 = 73,000 units
therefore,
the total equivalent units for direct materials (using the FIFO method is 73,000 units
SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce lock show that manufacturing costs total $23.25 per lock. An analysis of this amount indicates that $13.40 of the total cost has a variable cost behavior pattern, and the remainder is an allocation of fixed manufacturing overhead. The normal selling price of this model is $31.00 per lock. A chain store has offered to buy 12,000 ZForce locks from SureLock at a price of $16.25 each to sell in a market that would not compete with SureLock's regular business. SureLock has manufacturing capacity available and could make these locks without incurring additional fixed manufacturing overhead.
Required:
a. Calculate the effect on SureLock's operating income of accepting the order from the chain store.
b. If SureLock's costs had not been classified by cost behavior pattern, is it likely that a correct special order analysis would have been made?
Yes
No
Answer:
The answer is "".
Explanation:
In point a:
Operating profits of SureLock to recognize the order:
[tex]= \$ 12,000 \times (\$16.25-\$13.40)\\\\= \$12000 \times \$2.85 \\\\= \$34,200[/tex]
In point b:
In this question the second point is false Since losses of SureLock were not classified as per the cost pattern of behavior, a proper custom-made analysis is probably to be performed.
Thomlin Company forecasts that total overhead for the current year will be $11,898,000 with 156,000 total machine hours. Year to date, the actual overhead is $7,955,000 and the actual machine hours are 85,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$140 per machine hour b.$51 per machine hour c.$76 per machine hour d.$94 per machine hour
Answer:
Predetermined manufacturing overhead rate= $76.27 per machine hour
Explanation:
Giving the following information:
Thomlin Company forecasts that total overhead for the current year will be $11,898,000 with 156,000 total machine hours.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 11,898,000 / 156,000
Predetermined manufacturing overhead rate= $76.27 per machine hour
Assume that JQH’s returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?Assume that JQH’s returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?2.5%16%68%13.5%none
Answer:
13.5%
Explanation:
From this question we have the following information
We have mean return = 10
Standard deviation = 5
We use this formula
Z = x - mean/standard deviation
X is between 15 and 20
15< X< 20
= 15-10/5 < Z < 20-10/5
= 1 < z < 2
Using the Statistical table,
P(z < 2) = 0.9772
P(z< 1) = 0.8413
0.9772 - 0.8413 = 0.1359 x 100
= 13.5%
The probability of JQH stock providing a return within the range 15% to 20% = 13.5%
Thank you
All of the following are true about using a predetermined overhead rate to apply overhead except, Multiple Choice Estimates are used to calculate the rate. Using this rate provides managers with up-to-date estimates of the costs of their processes during the period. A single allocation basis may fail to provide useful allocations for all production departments. The rate is prepared at the beginning of the period. The rate is used to apply overhead at the end of the accounting period.
Answer:
The rate is used to apply overhead at the end of the accounting period.
Explanation:
The formula to compute the predetermined overhead rate is shown below:
= Estimated manufacturing overhead cost ÷ estimated activity
So for this the estimates should be used, the rate should be prepared after the starting. IF there is a single allocation basis so it would not suceed to allocate for all the production departments also this rate would helpful for the managers with respect to keep up to date estimates
Therefore the last option is correct
A sample of 240 observations is selected from a normal population standard deviation of 24
Sage Hill Inc. wishes to lease machinery to Thiensville Company. Thiensville wants the machinery for 4 years, although it has a useful life of 10 years. The machinery has a fair value at the commencement of the lease of $47,000, and Sage Hill expects the machinery to have a residual value at the end of the lease term of $27,000. However, Thiensville does not guarantee any part of the residual value. Thiensville does expect that the residual value will be $45,000 instead of $27,000.
Required:
What would be the amount of the annual rental payments Sage Hill demands of Thiensville, assuming each payment will be made at the end of each year and Sage Hill wishes to earn a rate of return on the lease of 6%?
Answer:
bud im sorry but cay you simplify this sentance
Explanation:
$29198 / [ 1 - ( 1 + 0.06 )-4 / 0.06 ]
= $29198 / 3.46510561283
= $8426 [ Rounded off to zero decimal places ]
bud i tried but i think its wrong im only in 6th
Purdum Farms borrowed $10 million by signing a five-year note on December 31, 2015. Repayments of the principal are payable annually in installments of $2 million each. Purdum Farms makes the first payment on December 31, 2016 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2016, after the first payment is made
Answer:The amount of $2 million will be reported as current liabilities on 31 December 2017 while the amount of $6 million will be reported as long term liabilities.
Explanation:
Current liabilities are the short term liabilities expected by businesses to fund within a year's time period.
while
Long term liabilities, , are the liabilities which businesses can fund after a year elapses.
To that effect , The outstanding amount on 31 December 2016 after the first repayment will be
10- 2= $8 million
From $8 million outstanding, $2 million will be paid on 31 December 2017 which is within a year.
Therefore, this amount of $2 million will be reported as a current liability since it is payable within a one year period.
The remaining amount which is
8 - 2 = $6million will now be reported as a Long term liability since it would be payable after more than a year.
The amount of $2 million will be reported as current liabilities on 31 December 2017 while the amount of $6 million will be reported as long term liabilities.
Current liabilities are the short term liabilities expected by businesses to fund within a year's time period.While,
Long term liabilities, , are the liabilities which businesses can fund after a year elapses.To that effect ,
The outstanding amount on 31 December 2016 after the first repayment will be: 10- 2= $8 millionFrom,
$8 million outstanding
$2 million will be paid on 31 December, 2017 which is within a year.
Therefore,
This amount of $2 million will be reported as a current liability since it is payable within a one year period.
The remaining amount ,
8 - 2 = $6million will now be reported as a Long term liability since it would be payable after more than a year.
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Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below. The MARR is 18% per year. At the end of the useful life, the investment will be sold. A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method.
A B C
Investment cost $27,000 $56,000 $42,500
Annual expenses $15,000 $13,000 $23,000
Annual revenues $23,000 $30,000 $32,000
Market value $6,500 $7,500 $9,000
Useful life 10 years 10 years 10 years
IRR 27,6% 28,1% 17,8%
Answer:
Project B has the highest PW, therefore,, it should be selected.
Explanation:
A B C
Investment cost -$27,000 -$56,000 -$42,500
Annual expenses $15,000 $13,000 $23,000
Annual revenues $23,000 $30,000 $32,000
Market value $6,500 $7,500 $9,000
NCFs (1-9) $8,000 $17,000 $9,000
NCF 10 $14,500 $24,500 $18,000
PW or NPV $10,195 $21,832 -$334
Keating Co. is considering disposing of equipment with a cost of $76,000 and accumulated depreciation of $53,200. Keating Co. can sell the equipment through a broker for $29,000, less a 5% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $48,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is a.$10,140 b.$5,915 c.$8,450 d.$12,675
Answer:
c.$8,450
Explanation:
Calculation for what The net differential income from the lease alternative is
Using this formula
Net differential income = Lease amount - estimated expenses - net sale of equipment
Let plug in the formula
Net differential income= $48,000-$12,000-($29,000-($29,000*5%)
Net differential income=$48,000-$12000-($29,000-$1,450)
Net differential income=$48,000-$12000-$27,550
Net differential income=$47,000-$39,550
Net differential income= $8,450
Therefore The net differential income from the lease alternative is $8,450
One of the most important applications of ratio analysis is to compare a company's performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as a comparative analysis and trend analysis, respectively.
The analysis that involves calculating the growth rates of all items from the balance sheet and income statement relative to a base year is called a:
a. percentage change analysis.
b. cash flow change analysis.
c. common size income statement analysis.
d. common size balance sheet analysis.
Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. over the past three years.
The company did not issue new shares during these three years, and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company's relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios.
Ratios Calculated
Year 1 Year 2 Year 3
Price-to-cash-flow 2.80 1.96 1.57
Inventory turnover 5.60 4.48 3.58
Debt-to-equity 0.60 0.48 0.38
Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report?
A. A decline in the inventory turnover ratio can be explained by the new inventory management system that the company recently adopted, which led to more efficient inventory management.
B. Blue Hamster Manufacturing Inc.’s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 0.38.
C. A plausible reason why Blue Hamster Manufacturing Inc.’s price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.
D. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors.
Answer: a. percentage change analysis.
B. Blue Hamster Manufacturing Inc.’s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 0.38.
D. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors
Explanation:
1. The analysis which has to do with the calculation of the growth rates of all items from balance sheet and the income statement which is relative to a base year is referred to as the percentage change analysis.
2. The statements that can be included in the analysis report from the question include:
• Blue Hamster Manufacturing Inc.’s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 0.38
• A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors.
You decide to purchase a new refrigerator. You have the choice of an Energy Star refrigerator for $2,000 or a standard unit for $1,800. The Energy Star unit costs 10 cents per hour less to run. If you buy the Energy Star unit and run it for 10 hours per day for a year, how long will it take you to recover the $200 extra cost
Answer:
It will take 83 days to recover the extra cost
Explanation:
To determine the length of time it will take to recover the extra cost, it will be logical that we compare the $200 extra cost to the total savings in running cost made for a year and covert this into days
The total savings in running cost is the cost savings per hour multiplied by the number of hours in a year.
The calculations are set below:
Savings in running cost per hour = $0.1
Total savings in a year = 365 days × $0.1 × 24 = $876
Extra cost of Energy Star refrigerator = $200
If total savings for a year is $876 , then equivalent length of time to save $200 would be
Length of time = 200/876 × 365 days = 83 days
It will take 83 days to recover the extra cost
Naumann Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 190 100 % Variable expenses 38 20 % Contribution margin $ 152 80 % Fixed expenses are $110,000 per month. The company is currently selling 1,000 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $56. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected
Answer:
-$8,000
Explanation:
With regards to the above, we need to compute first the variable cost per unit
Variable cost per unit = $38 per unit + $56 per unit = $94
New contribution margin per unit = $190 per unit - $94 per unit = $96
New unit monthly sales
= 1,000 units + 500 units
= 1,500 units
New total contribution margin
= 1,500 units × $96 per unit
= $144,000
The current total contribution margin
= 1,000 units × $152 per unit
= $152,000
Therefore, the change in total contribution margin and in net operating income
= New total contribution margin - Current total contribution margin
= $144,000 - $152,000
= -$8,000
A ___ is a tax on imported goods. A ___ is a quantitative restriction on imported goods.
Cost,subsidy
Regulation, standard
Tariff,quota
At the end of its first year of operations, Loring Industries estimates that sales returns in the amount of $20,000 will occur during Year 2. The cost of the inventory expected to be returned is $12,000. All of Loring’s sales are made for cash and the company uses a perpetual inventory system. Assume that no returns have occurred as of the end of Year 1. Prepare the appropriate adjusting journal entry to record the expected sales returns and the inventory expected to be returned in Year 2.
Answer: See explanation
Explanation:
The appropriate adjusting journal entry to record the expected sales returns will be:
Debit: Sales return = $20,000
Credit: Refund liabilities = $20,000
(For expected sales return).
The appropriate adjusting journal entry to record the inventory expected to be returned in Year 2 will be:
Debit: Inventory-Sales Return = $12000
Credit: Cost of goods sold = $12000
most of a distribution manager's decisions must balance cost reduction against which other benefit?
Answer: Superior customer service
Explanation:
Just took the quiz
Pelusoec Co., a manufacturer of snowmobiles, is considering outsourcing the production of its headlights to an outside supplier. In the company’s current in-house production process, each headlight requires $4 of direct materials, $3 of direct labor, and $6 of total manufacturing overhead. 40% of the manufacturing overhead is a common fixed cost that would be unaffected by the outsourcing decision, while the remaining 60% is traceable to the outsourcing decision. At what outside supplier price would the company be indifferent between making and buying the headl
Answer: $10.60
Explanation:
The supplier price which would make the company indifferent is the cost that the company would incur if they produced it themselves.
= Direct labor + Direct materials + Affected manufacturing overhead
= 4 + 3 + (6 * 60%)
= $10.60