Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $ 120 $ 112 Machine minutes needed per unit 10 minutes 8 minutes A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period
Answer:
$840,000
Explanation:
Calculation to determine What is the largest possible total contribution margin that can be realized each period
First step
L =120/10
L= 12
C= 112/8
C= 14
Now let the largest possible total contribution margin
Largest possible total contribution margin C=112*( 60,000/8 )
Largest possible total contribution margin C= 112*7500 units
Largest possible total contribution margin C = $840,000
Therefore the largest possible total contribution margin that can be realized each period is $840,000
Coronado Industries reported the following information for 2016: October November December Budgeted sales $470000 $420000 $510000 Budgeted purchases $290000 $226000 $268000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. Cost of goods sold is 35% of sales. Coronado purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. Accounts payable is used only for inventory acquisitions. How much cash will Coronado receive during November?
Answer: $445000
Explanation:
Based on the information that has been provided in the question, the amount of cash that Coronado will receive during the month of November will be:
= October sales × 50% + Novemeber sales × 50%
= ($470000 × 50%) + (420000 × 50%)
= $235000 + $210000
= $445000
Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 20% discount. During 2021, employees purchased 19 million shares; during this same period, the shares had a market price of $15 per share at the end of the year. Martin's 2021 pretax earnings will be reduced by:
Answer: $57,000,000
Explanation:
The employees purchased at a 20% discount which means that this 20% discount is the amount that would have to be covered by the company's pretax earnings:
= 19,000,000 * 15 * 0.2
= $57,000,000
Martin's pretax earnings will be reduced by $57 million because the company would have to cover the discount on the shares.
On October 1st of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy sales are made on account. The following information was used in preparing estimated cash collections :
Aug sales (actual) 50,000
Sep sales (actual) 60,000
Oct sales. (estimated) 30,000
Nov sales (estimated) 80,000
Dec sales (estimated) 70,000
approximately 65% of all sales are collected in the month of the sale, 20% is collected in the following month, and 15% is collected in the month thereafter.
Determine :
1. Budgeted collections from customers in October total : Choose from the following:
a. 49,500
b. 31,500
c. 140,000
d. 39,000
2. Budgeted collections from customers in Nov total : Choose from the following :
a. 170,000
b. 68,500
c. 67,000
d. 58,000
Budgeted collections from customers in Dec total : Choose from the following :
a. 66,000
b. 61,500
c.180,000
d. 63,500
Answer: 1. $39000
2. $67000
3. $66000
Explanation:
1. Budgeted collections from customers in October will be:
Current month sales = 30000 × 65% = 19500
Add: Collection from September = 60000 × 20% = 12000
Add: Collection from August = 50000 × 15% = $7500
Budgeted collections from customers in October total = $39000
2. Budgeted collections from customers in November total:
Current month sales = 80000 × 65% = 52000
Add: Collection from October = 30000 × 20% = 6000
Add: Collection from September = 60000 × 15% = $9000
Budgeted collections from customers in November total = $67000
3. Budgeted collections from customers in December total:
Current month sales = 70000 × 65% = $45500
Add: Collection from November = 80000 × 20% = $16000
Add: Collection from October = 30000 × 15% = $4500
Budgeted collections from customers in December total = $66000
Suppose that you are a speculator that anticipates an appreciation of the Singapore dollar (S$). You purchase a call option contract on Singapore dollars. Each contract represents S$40,000, with a strike price of $0.69 and call option premium of $0.03 per unit. Suppose that the spot price of the Singapore dollar is $0.70 just before the expiration of the call option contract. At this time, you call the contract and immediately sell the Singapore dollars to a bank at the current spot price.
Fill in the following table from your (the buyer's) perspective.
Transaction Per Unit Per Contract
Selling price of $0.92 _________
- Purchase Price of 5$ -$0.86 _________
- Premium Paid for Option -$0.02 _________
Net profit _________ _________
Answer: $1600
Explanation:
Selling price:
Per unit = $0.92
Per contract = $0.92 × 40000 = $36800
Purchase price of $5:
Per unit = -$0.86
Per contract = -$0.86 × 40000 = -$34400
Premium Paid for Option:
Per unit: -$0.02
Per contract = -$0.02 × 40000 = -800
Net profit = $36800 + (-$34400) + (-800)
= $36800 - $34400 - $800
= $1600
The net profit is $1600
Bissell Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan assets Balance, January 1 $ 500,000 Balance, January 1 $ 258,000 Service cost 198,000 Actual return 33,000 Interest cost 36,000 Annual contribution 119,000 Benefits paid (87,000 ) Benefits paid (87,000 ) Balance, December 31 $ 647,000 Balance, December 31 $ 323,000 The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense for the year
Answer:
$205,200
Explanation:
Calculation of Pension Expense
Service Cost $198,000
Interest cost $33,000
Expected return on the plan assets ($25,800) (258000*10%)
Pension Expense $205,200
So therefore, the pension expense for the year is $205,200.
Mark and Mike are having a few beers together. Mike tells Mark about his lifelong quest to find the elusive pink elephant in the wilds of Africa. Mike tells Mark that Mike has spent 25 years and $2,000,000 to corner the animal in a specific field in Congo. Mike goes on to say that once he catches the animal, the San Diego zoo will pay him $100,000,000 for the animal. Mark decides to double-cross Mike and flies to the Congo with a crew and captures the animal exactly where Mike's crew had cornered it. Mike sues claiming the animal belongs to him. Who owns the animal?
a. Neither Mike or Mark. The animal is not personal property and cannot be owned.
b. Both Mike and Mark. They would own the animal as implied partners.
c. Mark. Since he captured the animal.
d. Mike. Since he spent enormous time and had the animal cornered.
Answer: c. Mark. Since he captured the animal.
Explanation:
With regards to the information given, the owner of the animal is Mark because he's the one who captured the animal.
It should be noted that the fact that Mike tells Mark that Mike has spent 25 years and $2,000,000 to corner the animal in a specific field in Congo doesn't mean that he's the owner of the animal.
Upon capturing the animal, under the law of ownership, the animal now belongs to Mark as he's the owner.
Electricity for All (EFA) is preparing for their Initial Public Equity Offering (IPO). Being in a highly regulated industry, and with no plans for expanding, EFA plans to payout all of its earnings as dividends that are expected to the be same. If the expected rate of return on its equity is 13% and a fair IPO price is $145 per share, what is EFA's dividend per share
Answer:
the dividend per share is $18.85 per share
Explanation:
The computation of the dividend per share is shown below:
We now that
price per share = Dividend ÷ (required rate of return - growth rate)
$145 = Dividend ÷ (13% - 0%)
So, the dividend is
= $145 × 13%
= $18.85 per share
Hence, the dividend per share is $18.85 per share
The COM 341 Medical Supplies is in charge of maintaining hospital supplies at UVic Hospital. The lead time for replenishment deliveries is 6 days. It was calculated that the mean demand for a 3-day period was 60 units, with a standard deviation of 7 units. Please assume that demand follows a normal distribution. COM 341 Medical Supplies would like to maintain a 90% service level.
Required:
What is the appropriate reorder point?
Answer:
reorder point = 132.67 ≈ 133 units
Explanation:
z score for service level 90% = 1.28
lead time = 6 days
mean demand 60 units for 3 days period, 20 per day
standard deviation of demand = 7 units
reorder point = (20 x 6) + {1.28 + √[(7x7)/3] x √6} = 120 + 12.67 = 132.67 ≈ 133 units
Ruby Red manufactures, markets, and distributes citrus flavored soft drinks across the globe. Ruby Red hired a collection agency in 2018 to increase collection rates from customers. As a result, Ruby estimates that only 2% of its 2019 credit sales will be written off, compared to the 4% of 2018's credit sales that were estimated to be uncollectible. At December 31, 2019, Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts and credit sales of $1,570,000.
Required:
Use the percentage of credit sales method to calculate the bad debt expense.
Answer:
$31,400
Explanation:
Ruby estimates that only 2% of its 2019 credit sales will be written off
Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts
Ruby Red has credit sales of $1,570,000.
Bad debt expense = Credit sales * 2% of its 2019 credit sales
Bad debt expense = $1,570,000 * 2/100
Bad debt expense = $1,570,000 * 0.02
Bad debt expense = $31,400
You bought a share of Bavarian Sausage stock for $46.50 at the beginning of the year. During the year the stock paid a $2.75 dividend and at the end of the year it trades at $52.75. What is the total return of your stock investment
Answer:
$9
Explanation:
Given the information above, total return of stock investment is computed as;
Total returns = Dividend + Increase in stock price
Dividend = $2.75
Increase in stock price = $52.75 - $46.5 = $6.25
= $2.75 + $6.25
= $9
Total return of my stock investment is $9
Dollar returns
= (9/46.5) × 100
= 19.35%
Suppose you borrow $8,000 of principal that must be repaid at the end of two years, along with interest of 4 percent a year. If the annual inflation rate turns out to be 6 percent,
Instructions: Enter your responses rounded to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
a. What is the real rate of interest on the loan?
b. What is the real value of the principal repayment?
Hint: Future value = Present value × (1 + Growth in prices)t, where t is the number of years evaluated, e.g., The real value of loan repayment = Amount of loan × (1 + Real interest rate)t
c. Who loses, the debtor or the creditor?
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Bob is investing in a partnership with Andy. Bob contributes as part of his initial investment, Accounts Receivable of $120,000; an Allowance for Doubtful Accounts of $18,000; and $12,000 cash. The entry that the partnership makes to record Bob's initial contribution includes a Group of answer choices
Answer:
Credit to Bob, Capital for $114,000
Explanation:
Based on the information given the entry that the partnership makes to record Bob's initial contribution includes a CREDIT TO BOB, CAPITAL FOR $114,000 Calculated using this formula
Bob, Capital=Accounts Receivable-Allowance for Doubtful Accounts+Cash
Let plug in the formula
Bob, Capital=$120,000-$18,000+$12,000
Bob, Capital=$114,000
An exchange economy has two consumers, named Jimmy and Sue, and two commodities, apples and bananas. Jimmy’s initial endowment is 2 units of apples and 4 unit of bananas. Sue’s initial endowment is 4 apples and 4 units of bananas. Jimmy’s utility function over apples and bananas is U(AJ, BJ) =AJ1/2 BJ1/2. Sue’s utility function is of the form U(AS, BS) =AS+BS, where AJ and BJ are the amounts of apples and bananas for Jimmy and AS and BS are amounts of apples and bananas for Sue.The equation of the contract curve in terms of Jimmy’s coordinates is:________
a. BJ= 2AJ
b. BJ=(A2J)/2
c. BJ=AJ
d. BJ= (8AJ)/(1+AJ)
e. None of the above
Answer:
(a) BJ = AJ
In equilibrium, apples and bananas have the same price.
Jimmy’s consumption bundle must be 3 apples and 3 bananas
i just did this
Explanation:
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he following information for Cooper Enterprises is given below: December 31, 2021Assets and obligations Plan assets (at fair value) $600,000 Accumulated benefit obligation 1,110,000 Projected benefit obligation 1,200,000Other Items Pension asset / liability, January 1, 2021 30,000 Contributions 360,000 Accumulated other comprehensive loss 503,700 There were no actuarial gains or losses at January 1, 2021. The average remaining service life of employees is 10 years. What is the amount tha
Answer:
the amortization of Other Comprehensive Loss for 2022 is $38,370
Explanation:
The computation of the amortization of Other Comprehensive Loss for 2022 is shown below;
= (Accumulated other comprehensive loss - 10% of Projected benefit obligation) ÷ given no of years
= ($503,700 - 10% of $1,200,000) ÷ given no of years
= ($503,700 - $120,000) ÷ 10 years
= $38,370
hence, the amortization of Other Comprehensive Loss for 2022 is $38,370
The same would be considered
Question 1 Accounting for Construction Contracts 10 Marks
XYZ Ltd signs a contract on 30 June 2015, agreeing to build a bridge for ABC Limited at a
contract price of $40 million. XYZ Ltd estimates that construction costs will be as follows:
___________________________________________________
Year Ending Cost
___________________________________________________
30 June 2016 $10 000 000
30 June 2017 $16 000 000
30 June 2018 $ 6 000 000
$32 000 000
The contract provides that ABC will make payments on 30 June of each year as follows:
2016 $8 000 000
2017 $20 000 000
2018 $12 000 000
$40 000 000
XYZ now estimates at the beginning of the 2017 financial year that construction costs will be
as follows:
_________________________________________________
Year Ending Cost
___________________________________________________
30 June 2016 $10 000 000
30 June 2017 $21 000 000
30 June 2018 $15 000 000
$46 000 000
Required:
Calculate:
a) Percentage of completion for each of the three years. (4 marks)
b) Revenue to be recognised in each of the three years. (3 marks)
c) Gross profit/loss to be recognised in each of the three years. (3 marks)
Answer:
1st part of the question
a. percentage completion year 2016=cost incurred to date/estimated total cost
=31%.
likewise 2017: percentage completion is 50%
and 2018:percentage completion is 19%
Explanation:
2016
ie: 10000000/32000000
=31.25 or 31%
2017
ie: 16000000/32000000
=50%
2018
ie: 6000000/32000000
=18.75% or 19%
3 ways to prvent hazards in the laboratory
1-Do not use laboratory containers or refrigerators to store drinks or
food, or put chemicals in food containers
(bottles of water, etc.).
2-Work whenever possible in the fume cupboard, especially
if you handle volatile, toxic powdered products, when you do
experiments that generate fumes or gases, etc.
3-Use personal protective equipment (gloves, glasses,
masks, etc.) suitable for each job and risk.
Hope this can help youg The corporate charter of Imp Company authorized the issuance of 10 million, $1 par common shares. During 2021, its first year of operations, the company had the following transactions: January 1 sold 8 million shares at $15 per share June 3 purchased 2 million shares of treasury stock at $18 per share December 28 sold the 2 million shares of treasury stock at $20 per share What amount should the company report as additional paid-in capital in its December 31, 2021, balance sheet
Answer:
$116 million
Explanation:
Calculation of Additional Paid-in-Capital
Jan 1: 8 million*$14 $112 million
June 3: 2 million*$17 ($34 million)
Dec 28: 2 million*$19 $38 million
Paid-in-Excess capital $116 million
So, the company should report $116 million as additional paid-in capital in its December 31, 2021, balance sheet.
The W.C. Pruett Corp. has $800,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 8%. In addition, it has $600,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $2.88 million, its average tax rate is 30%, and its profit margin is 3%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places.
Answer:
1. TIE ratio = EBIT / Interest expense
EBIT = [ (Annual sales x profit margin) / (1 - tax rate) ] + Amount of debt x interest rate
= [ ($2,880,000 x 3%) / (1 - 0.30) ] + $800,000 x 8%
= 187428.57143
= $187,428.57
TIE ratio = $187,428.57 / ($800,000 x 8%)
TIE ratio = $187,428.57 / $64,000
TIE ratio = 2.92857
TIE ratio = 2.93
2. ROIC = [ EBIT x (1 - tax rate) ] / (Amount of debt + common stock)
= [$187428.57 x (1 - 0.30) ] / ($800,000 + $600,000)
= 0.093714285
= 9.37%
What types of behaviors does the average customer exhibit
Explanation:
there are four types of consumer behavior : habitual buying behavior , variety-seeking behavior , dissonance-reduding buying behavior , complex buying behavior
If we add successive laborers to work a given amount of land on a wheat farm, eventually:____.
a. the increases in wheat harvested will get larger and larger.
b. average total cost will fall to zero.
c. the increases in wheat harvested will rise at a constant rate.
d. the increases in wheat harvested will get smaller and smaller.
Answer:
d. the increases in wheat harvested will get smaller and smaller.
Explanation:
A marginal rate of technical substitution (MRTS) can be defined as an economic principle which is typically used to represent the rate at which a factor such as capital must decrease so that the same level or quantity of production is maintained when another factor such as labor is changed (increased).
An isoquant is the slope of a marginal rate of technical substitution (MRTS) which connects the two input factors provided that the level of output or production is the same.
Also, the diminishing marginal rate of technical substitution refers to the decline (fall) in marginal rate of technical substitution (MRTS) along an isoquant that produces the same quantity (level) of output.
When an isoquant has a diminishing marginal rate of technical substitution, the corresponding isoquants are convex to the origin. Thus, the marginal rate of technical substitution (MRTS) would continue to diminish as more of a factor such as capital is used.
If we add successive laborers to work a given amount of land on a wheat farm, eventually the increases in wheat harvested will get smaller and smaller.
Answer:
d. the increases in wheat harvested will get smaller and smaller.
Explanation:
If we add successive laborers to work a given amount of land on a wheat farm, eventually: the increases in wheat harvested will get smaller and smaller.
The following is not one of the main reasons that makes evaluation of public projects difficult.
A. Public projects are subject to higher values of MARR
B. They often have differences in the impacts and benefits to different members of society
C. They are often motivated by political goals
D. Project lives often very long
Why is public sector economic analysis / evaluation of projects more challenging?
A. Impact on wider society
B. Project Objectives
C. Length of life cycle of projects
D. Determining the value of MARR
E. All the above
Answer:
A
E
Explanation:
Lara Technologies is considering a cash outlay of $227,000 for the purchase of land, which it could lease out for $36,150 per year. If alternative investments that yield a 15% return are available, the opportunity cost of the purchase of the land is
Answer:
the opportunity cost of the land purchase is $34,050
Explanation:
The computation of the opportunity cost of the land purchase is shown below;
= Cash outlay × return percentage
= $227,000 × 15%
= $34,050
Hence the opportunity cost of the land purchase is $34,050
We simply multiplied the cash outlay with the return percentage so the same would be calculated
A decentralized organization is one in which: a. each employee in the organization is given permission to make decisions about their company. b. only top-level management is given decision-making authority. c. managers at various levels throughout the organization are given decision-making authority. d. each stockholder is given decision-making authority.
Answer:
c. managers at various levels throughout the organization are given decision-making authority.
Explanation:
An organizational structure can be defined as the process which typically involves dividing an organization into various functional units.
Basically, the organizational structure comprises of three (3) main dimensions and these are;
I. The vertical dimension: this is typically the decision-making responsibilities (decentralization and centralization).
II. The horizontal dimension: this divides the organization into subunits.
III. Integrating mechanisms: it is based typically on the strategic mechanism that controls the various subunits within an organization.
In the vertical dimension of an organizational structure, decentralization can be defined as a practice which typically involves giving decision-making authority to the lowest chain of command.
This ultimately implies that, in a decentralized organization, decision-making authority and power isn't concentrated at the top level (echelon) of the organization.
Hence, a decentralized organization is an organizational structure in which managers at various levels throughout the organization are given decision-making authority.
A firm wants to create a weighted average cost of capital (WACC) of 12 percent. The firm's cost of equity is 16 percent and its pre-tax cost of debt is 6 percent. The tax rate is 20 percent. What does the debt-equity ratio (D/E) need to be for the firm to achieve its target WACC
Answer: 0.56
Explanation:
After tax cost of debt is:
= 6% * ( 1 - 20%)
= 4.8%
Assume that the weight for debt is "x" which would mean that the weight for Equity is "1 - x".
WACC = (Weight of equity * cost of equity) + (Weight of debt * After tax cost of debt)
0.12 = ( (1 - x) * 0.16) + 0.048x
0.12 = 0.16 - 0.16x + 0.048x
0.12 - 0.16 = - 0.112x
x = -0.04 / -0.112
x = 35.7%
Weight of equity = 1 - 35.7% = 64.3%
Debt to equity ratio:
= 35.7% / 64.3%
= 0.56
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Received a $3,000.00 check from Pacific Stores. The check pays $3,061.22 of the Dec. 3 sale on account, S395, less 2% discount. R403.
Answer:
Accounts Receivable Credit- $3061.22
Sales Discount Debit- $61.22
Cash Debit- $3000
Explanation:
The journal entry for the given transaction is provided in the attachment below. The discount allowed to the credit customers will amount to $61.22.
What is a journal entry?The journal entry refers to the primary record of transactions and events in chronological order and monetary terms. They are the basis for preparation of subsidiary books.
The expenses, and assets are debited when increased whereas the liabilities and income increase are credited.
For the given transaction, the receipt of cash will increase the cash balance, hence will be debited. The accounts receivables will be reduced hence credited. The difference will be the discount, that is an expense for the business therefore will be debited.
The journal entry for the given transaction is given in the attachment.
Learn more about journal entries here:
https://brainly.com/question/17439126
If Serena runs her own business and is responsible for everything, she is a/an
Answer:An entrepreneur
Explanation:
An entrepreneur is an individual who starts and runs a business with limited resources and planning, and is responsible for all the risks and rewards of her business venture.
An organization takes active countermeasures to protect its systems, such as installing firewalls. This approach is known as _____________ .
Answer:
Risk reduction.
Explanation:
Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits.
This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions. Also, it is considered to be the most important part of any organization or project.
A firewall is a network security protocol that monitors and controls inbound and outbound traffic based on set aside security rules.
Generally, a firewall is used to control access to a computer or network, as it creates a barrier between a computer or a network and the internet in order to protect against unauthorized access. It is a security system pre-installed on most computers to essentially inspect data being transmitted to or from a computer.
Furthermore, firewalls are typically bidirectional, it checks all sent and received data and only allow authorized traffic through.
Hence, when an organization takes active countermeasures to protect its systems, such as installing firewalls. This approach is known as risk reduction because it mitigates, minimizes or limits (reduces) the chances of its systems and data being circumvented or compromised by a hacker, intruder and third party.
Jack Flubber, who owns Sons of Flubber Construction Co., and runs it as a proprietorship, had gross profits last year of $120,000. He has $7,000 in exemptions and deductions. He paid $30,000 in taxes. If he paid himself a salary of $65,000 and a dividend of $15,000 taxed at 20%, how much he would save if he decided to incorporate as a closely held corporation with a 25% tax rate (choose the closest answer)
Answer: He won't be able to save
Explanation:
The options are:
a. He won't be able to save.
b. Around $4k
c. Around $7k
d. Around $8k
Based on the information given in the question, the amount that he'll save will be:
Firstly, we calculate the corporate tax which will be:
= ($120000 - $65000) × 25%
= $55000 × 25%
= $13750
Then, Flubber's personal tax will be:
= ($80000 - $7000) × 20%
= $73000 × 20%
= $14,600
Therefore, the total tax will be:
= $14600 + $13,750
= $28,350
Then, the total amount saved will be:
= $30,000 - $28,350
= $1650
Based on the options given, he won't be able to save.