Answer:
advertisements or promotions
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $3.80 per unit and fixed overhead costs of $74,000. The company incurred total overhead costs of $209,800 while operating at a volume of 40,000 units. The total controllable cost variance is:Multiple Choice$16,200 unfavorable.$10,000 favorable.$2,800 unfavorable.$2,800 favorable.$16,200 favorable.
Answer:
$16,200 favorable
Explanation:
The computation of the total controllable cost variance is shown below:
= Budgeted overhead - actual overhead
= (40,000 units × $3.80 + $74,000) - $209,800
= ($152,000 + $74,000) - $209,800
= $226,000 - $209,800
= $16,200 favorable
Hence, the total controllable cost variance is $16,200 favorable
Flingers Inc. reveals the following information in their annual report for FY 2017. Earnings and Expenses Sales $10,000,000 Cost of goods sold $5,000,000 Pretax earnings $500,000 Selected Balance Sheet Items Merchandise inventory $80,000 Total assets $2,000,000 Upper management plans to cut cost of goods sold by 6% for the coming year but retain the same sales. What will Flingers' pretax earnings be for 2018
Answer:
$800,000
Explanation:
The computation of the pre tax earnings for the year 2018 is shown below:
As we know that
Pretax Earnings = Sales - Cost of Goods Sold - Operating Expenses
Now put the given values
$500,000 = $10,000,000 - $5,000,000 - Operating expenses
So, the operating expenses is
= $5,000,000 - $500,000
= $4,500,000
Now the cost of good sold would be cut by 6%
So, the pre tax earnings for the year 2018 is
= $10,000,000 - ($5,000,000 × 0.94) - $4,500,000
= $10,000,000 - $4,700,000 - $4,500,000
= $800,000
why do monopolistic firms exhibit excess capacity?
Answer:
Excess capacity under monopolistic competition is caused by product differentiation that leads to product variety and quality, which is beneficial to consumers. Consumers generally do not prefer homogenous products. Technically, excess capacity increases consumer satisfaction.
Explanation:
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state 2uses of sulphuric iv acid
I'm dealing with "internal economies of scale". We are considering monopolistic competition as an example. We assumed that firms are symmetric: they face the same demand function and have the same cost function.
Why do firms falling in this situation, have different marginal cost functions? Why is it true that some are well performing and some are not?
Answer:
The concept of Micro-Economics are the elasticity of demand, marginal costs, the ... firm. ME deals with Demand analysis, Forecasting, Production function, Cost ... same. Because this is the world of competition and it has to be faced with all the possible options. 5. ... When we consider the demand for a commodity by all the.
Gamma Company budgeted to use 2 pounds of materials per unit at a budgeted cost of $100 per pound. Budgeted production and sales volume was 5,000 units. Actual production and sales volume was 4,000 units, and the company used a total of 8,080 pounds of materials at an actual cost of $102 per pound. The input price and input quantity variances are: Group of answer choices Input Price - Favorable; Input Quantity - Favorable Input Price - Favorable; Input Quantity - Unfavorable Input Price - Unfavorable; Input Quantity - Favorable Input Price - Unfavorable; Input Quantity - Unfavorable Not enough information
Answer:
Gamma Company
The input price and input quantity variances are:
Input Price - Unfavorable; Input Quantity - Unfavorable
Explanation:
a) Data and Calculations:
Budgeted pounds of materials per unit = 2
Budgeted cost per pound = $100
Budgeted material price per unit = $200
Budgeted production and sales volume = 5,000 units
Budgeted materials = 10,000 pounds
Actual production and sales volume = 4,000 units
Standard quantity of materials for actual production = 8,000 (4,000 * 2)
Actual quantity of materials used = 8,080
Quantity variance = 80 (8,080 - 8,000) Unfavorable
Total budgeted cost = $800,000 (8,000 * $100)
Total actual cost = $824,160 (8,080 * $102)
Price variance = $2 ($102 - $100) Unfavorable
Proctor Inc. was incorporated in 2014 and adopted a calendar year. Here is a schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2019. 2014 2015 2016 2017 2018 2019 $-0- $(3,800) $9,040 $(15,900) $-0- $-0- In 2020, Proctor recognized a $25,000 gain on the sale of business land. How is this gain characterized on Proctor's tax return
Answer:
This gain is characterized on Proctor's tax return as $15,900 ordinary gain and $9,100 Section 1231 gain.
Explanation:
The following sorted schedule of Proctor's net Section 1231 gains and (losses) reported on its tax returns through 2019 are given in the question.
2014 2015 2016 2017 2018 2019
$-0- $(3,800) $9,040 $(15,900) $-0- $-0-
The explanation of the answer is now given as follows:
The $9,040 Section 1231 profit in 2016 made the loss of $3,800 Section 1231 loss in 2015 to be recaptured in 2016.
Consequently, the only loss that must be recaptured in 2020 is the 2017 Section 1231 loss.
Therefore, we have:
Section 1231 gain = Gain on the sale of business land in 2020 - Section 1231 loss in 2017 = $25,000 - $15,900 = $9,100
Therefore, this gain is characterized on Proctor's tax return as $15,900 ordinary gain and $9,100 Section 1231 gain.
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produced 11,297 12,205 9,276 Each chair produced uses 4 board feet of wood. Management wants ending inventory levels of raw materials to equal 20% of the production needs (in wood) for the next month. How many board feet of wood does Tucker need to purchase in February? Round your answer to the nearest whole number. Don't round any intermediate calculations.
Answer:
Tucker Company
The number of board feet of wood that Tucker needs to purchase in February is:
= 46,297.
Explanation:
a) Data and Calculations:
Production Budget
January February March Total
Units Produced 11,297 12,205 9,276 32,778
Board fee for each chair 4 4 4 4
Total board feet required 45,188 48,820 37,104 131,112
Board feet required 45,188 48,820 37,104 131,112
Ending Materials Inventory 9,764 7,421
Beginning Materials Inventory (0) (9,764) (7,421)
Purchase of board feet 54,952 46,297
why the culture of a country might influence the costs of doing business in that country?
Answer:
Culture of a country can adversely affect the business
Explanation:
The culture of a country affects the costs of doing business in that country in the following ways -
a) In some countries, companies prefer to not work during the afternoon and hence they loose a large segment of business
b) Some countries entertain corruption practices and hence business do not flourish in such countries.
c) The pattern of working of government officials in a country affect the way in which an outsider entrepreneur is affected. The bad practices lower the ease of doing business and hence the business is lost
Explain the role of secondary data in gaining customer insights
Wildhorse Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 24,200 golf discs is:
Materials $ 12,342
Labor 36,542
Variable overhead 25,894
Fixed overhead 47,916
Total $122,694
Wildhorse also incurs 5% sales commission ($0.35) on each disc sold.
McGee Corporation offers Wildhorse $4.80 per disc for 4,800 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Wildhorse. If Wildhorse accepts the offer, its fixed overhead will increase from $47,916 to $53,006 due to the purchase of a new imprinting machine. No sales commission will result from the special order.
(a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Reject
Order Accept
Order Net Income
Increase
(Decrease)
Revenues $ $ $
Materials
Labor
Variable overhead
Fixed overhead
Sales commissions
Net income $ $ $
(b) Should Wildhorse accept the special order?
Wildhorse should
reject/accept
the special order .
Answer:
Wildhorse Company
Incremental Analysis for the special order:
Sales Revenue (4,800 * $4.80) $23,040
Variable cost (4,800 * $3.09) 14,832
Contribution margin $8,208
Fixed overhead increase 5,090
Net Income $3,118
b) Wildhorse should accept the special order.
Explanation:
a) Data and Calculations:
Materials $ 12,342
Labor 36,542
Variable overhead 25,894
Total variable cost $74,778
Unit variable cost $3.09 ($74,778/24,200)
Fixed overhead 47,916
Total $122,694
Units produced = 24,200
Selling price per unit = $7
Additional cost:
Sales commission = $0.35 per disc
Special order for 4,800 discs at $4.80
Increase in fixed overhead $5,090 ($53,006 - $47,916)
Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
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In 2007, Lighthouse Funds acquired a 25% stake in Unibic from Unibic Australia for Rs. 200 million. In 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Unibic operated solely in the premium, high-margin cookies segment in India, with a share of around 8%. It had a market presence primarily in south India and was exporting to the Middle East and Hong Kong. It had strategic alliances to make cookies for various private players. However, it was not yet making profits and was cashstrapped... Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through the Indian biscuit industry, wherein glucose biscuits that had dominated the market, gradually lost out to cream biscuits and cookies. The reasons for the shift included rising disposable incomes leading to an increase in consumption of premium biscuits; a larger number of manufacturing facilities of premium biscuits; growing health awareness; innovation bringing in attractive new products; rising affordability of cookies; and increase in eye-catching packaging. Over the years, Unibic regularly introduced fresh and unique flavors, ultimately producing over 30 variants of cookies. Its products could be broadly categorized into chocolate, butter, milk, savory, and health. The company considered its target market to be between the ages of 14 and 40. It continued its efforts at innovation and produced new products which would appeal to its target market. In 2015, Unibic had used celebrity endorsement by signing on south Indian actor Shruti Hassan, for over a year.
It stated that it wanted someone who was relevant and would give the brand a boost to get to the numbers it wanted in the South...
Unibic didn’t advertise much in print media; TV remained the company’s core focus and got the largest chunk of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a similar marketing campaign across markets, Unibic employed a unique strategy in each market, thereby playing to its strengths in each market while keeping in mind the market conditions and consumption patterns...
From 2019 onward, Unibic started feeling the heat of the economic slowdown in India. The Indian economic slowdown of 2019 led to a serious and continuing decline in the country’s real estate, automobile and construction sectors and in overall consumption demand. The second quarter (July- September) of the financial year (April 2019-March 2020) witnessed a drastic fall in the gross domestic product (GDP) growth rate to 4.5%. The main reasons attributed to the fall in the GDP growth rate were – contraction in manufacturing activity, weakened investments, and lower consumption demand. As of 2020, Unibic had the largest wire cut cookie manufacturing plant in India. The plant had the capability to manufacture 100 tonnes of cookies each day, with five production lines. While it used 98% of its production capability to produce its own brand, the rest was used to manufacture for private label brands – six in India and 10 across the world. It had annual revenu7 es of Rs. 5 billion. It also exported its products to more than 21 countries including across Australia, North America, the UK, and Europe, Asia, the Middle East, and New Zealand. It derived 45% of its earnings from the south of India.
Answer and Explanation:
Unibic's main mistake was not to give importance to the fluctuation of demand for its products, in order to be able to adjust their prices to the demand rates that consumers presented. This is because as the demand for the product decreased, Unibic should decrease the price, allowing the product to remain attractive to consumers.
A second mistake was not following the standard of disclosure of other cookie makers. This is because if other companies that make cookies advertise their products in a specific place, it means that this place has a large number of cookie consumers, who will see the products and put them on their shopping lists.
A third mistake was the high expenditure on disclosure. Unibic decided to use the most expensive media vehicle to advertise a product, in addition to maintaining the contract with a celebrity, who should receive a high salary for his work. Unibic should have looked for cheaper vehicles, which would optimize its profit, but decrease spending.
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $119,000 of services on account. In 2021, the company wrote off uncollectible accounts of $4,800. By the end of 2021, cash collections on accounts receivable totaled $100,800. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Required:
a. What journal entry did Pincus record to write off uncollectible accounts during 2021?
b. What journal entry should Pincus record to recognize bad debt expense for 2021?
Answer:
Pincus Associates
Journal Entries:
a. Debit Allowance for Uncollectibles $4,800
Credit Accounts Receivable $4,800
To write off uncollectible accounts.
b. Debit Bad Debts Expense $5,470
Credit Allowance for Uncollectibles $5,470
To record bad debts expense for the period.
Explanation:
a) Data and Calculations:
Services on account = $119,000
Uncollectibles written off = $4,800
Cash collections on accounts = $100,800
Accounts receivable balance = $13,400 ($119,000 - 4,800 - 100,800)
Estimated uncollectible allowance = 5% of accounts receivable balance
= $670 ($13,400 * 5%)
Analysis:
a. Allowance for Uncollectibles $4,800 Accounts Receivable $4,800
b. Bad Debts Expense $5,470 Allowance for Uncollectibles $5,470 ($4,800 + $670)
Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, at a market interest rate of 8 percent. The bonds had a total face value of $250,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the straight-line method to amortize the bond premium.
Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.
Answer:
Dr Cash $300,328
Cr To Bonds Payable $250,000
Cr To Premium on Bonds payable $50,328
Dr Interest Expense $24,026
Dr Premium on bonds payable $3,474
Cr Cash $27,500
Explanation:
Preparation of the required journal entries to record the bond issuance and the first interest payment on December 31.
Dr Cash $300,328
Cr To Bonds Payable $250,000
Cr To Premium on Bonds payable $50,328
($300,328-$250,000)
(Being bond issued at a premium is recorded)
Dr Interest Expense $24,026
($300,328 × 8%)
Dr Premium on bonds payable $3,474
($27500-$24,026)
Cr Cash $27,500
($250,000 ×11%)
(Being interest expense recorded)
The Magnetron Company manufactures and markets microwave ovens. Currently, the company produces two models: full-size and compact. Production is limited by the amount of labor available in the general assembly and electronic assembly departments, as well as by the demand for each model. Each full-size oven requires 2 hours of general assembly and 2 hours of electronic assembly, whereas each compact oven requires 1 hour of general assembly and 3 hours of electronic assembly. In the current production period, there are 500 hours of general assembly labor available and 800 hours of electronic assembly labor available.
In addition, the company estimates that it can sell at most 220 full-size ovens and 180 compact ovens in the current production period. The earnings contribution per oven is $120 for a full-size oven and $130 for a compact oven. The company would like to find an earnings-maximizing production plan for the current production period.
Required:
Formulate the above problem as a linear optimization model
Answer:
Max: [tex]Z = 120x + 130y[/tex]
Subject to:
[tex]2x + y \le 500[/tex]
[tex]2x + 3y \le 800[/tex]
[tex]x \le 220[/tex]
[tex]y \le 180[/tex]
[tex]x,y \ge 0[/tex]
Explanation:
Given
Let:
[tex]x \to Units\ of\ full\ size[/tex]
[tex]y \to Units\ of\ compact\ size[/tex]
Required
Formulate a linear optimization model
Constraints for time:
For the general assembly (hours), we have the following parameters:
[tex]x \to 2[/tex]
[tex]y \to 1[/tex]
So, the expression is:
[tex]2x + y[/tex] --- (1)
For the electronic assembly (hours), we have the following parameters:
[tex]x\to 2[/tex]
[tex]y \to 3[/tex]
So, the expression is:
[tex]2x + 3y[/tex] --- (2)
Solving further [Time available]:
[tex]General\ Assembly \to 500[/tex]
[tex]Electronic\ Assembly \to 800[/tex]
So, (1) and (2) becomes:
[tex]2x + y \le 500[/tex]
[tex]2x + 3y \le 800[/tex]
Constraints for selling:
[tex]Full\ Size \to 220[/tex] --- at most
[tex]Compact \to 180[/tex] -- at most
The above can be represented as:
[tex]x \le 220[/tex]
[tex]y \le 180[/tex]
Earnings contribution:
[tex]Total\ Full\ Size \to 120[/tex]
[tex]Total\ Compact \to 130[/tex]
The objective function to be maximized can then be modelled as:
[tex]Z = 120x + 130y[/tex]
In wintry conditions, highway safety is improved by treating road services with substances that will provide traction and/or melt snow and ice. Sand and rock salt are two widely used substances. Recently, a combination of beet juice and rocksalt is being used in some parts of the country to treat road surfaces. Suppose you have been asked to provide a list of factors to consider for a switch from rocksalt alone to using a combination of beet juice and rocksalt. Name the major considerations you would take into account in making a decision in the following categories: cost considerations, environmental considerations, both positive and negative, and other considerations.
Answer:
There will be cost consideration, economic consideration, environmental consideration, human factors and social factors.
Explanation:
There should be most important consideration which the highway authorities should analyze is cost. The authorities should identify the additional cost which will need to be incurred in order to use the combination of beet juice and rock salt. There should be reliability considered that the road are not affected with the use of beet juice and there is no breakage on the roads. The environment is not affected with the use of these material.
At the beginning of the current period, Shamrock Corp. had balances in Accounts Receivable of $187,800 and in Allowance for Doubtful Accounts of $9,630 (credit). During the period, it had net credit sales of $860,400 and collections of $687,720. It wrote off as uncollectible accounts receivable of $7,381. However, a $2,859 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,070 at the end of the period.
Required:
a. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts.
b. What is the net realizable value of the receivables at the end of the period?
Answer:
See below
Explanation:
The net realizable values are as follows
ai For accounts receivables
Ending balance of account receivables = Beginning balance of account receivables + Credit sale - Collections uncollectible amount
= $187,800 + $860,400 - $687,720
= $360,480
aii For allowance for doubtful debt
= Beginning balance + Previously written off amount - Uncollectible amount + Bad debt expense
= $9,630 + $2,859 - $7,381 + $18,412
= $23,070
when calculating the cash account, which of the following must be subtracted
Answer:
Profit (or Loss) = Total Income - Total Expenses
Explanation:
Cash accounts deal with transactions that involves cash basis, not accrual basis. Thus there would majorly be cash inflows and cash outflows, which can be referred to as income and expenses respectively.
In calculating the cash account, subtract the sum of all cash outflow (expenses) from the sum of all cash inflow (income).
i.e Profit (or Loss) = Total Income - Total Expenses
Sole Mates Inc. is planning a one-month campaign for July to promote sales of one of its two shoe products. A total of $100,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign:
Tennis Shoe Walking Shoe
Unit selling price $85 $100
Unit production costs:
Direct materials $19 $32
Direct labor 8 12
Variable factory overhead 7 5
Fixed factory overhead 16 11
Total unit production costs $50 $60
Unit variable selling expenses 6 10
Unit fixed selling expenses 20 15
Total unit costs $76 $85
Operating income per unit $9 $15
No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 7,000 additional units of tennis shoes or 7,000 additional units of walking shoes could be sold without changing the unit selling price of either product.
Required:
Prepare a differential analysis as of June 19, 2014, to determine whether to promote tennis shoes (Alternative 1) or walking shoes (Alternative 2).
Answer:
Sole Mates Inc.
Differential analysis:
Tennis Shoe Walking Shoe
Unit selling price $85 $100
Unit production costs:
Direct materials $19 $32
Direct labor 8 12
Variable factory overhead 7 5
Unit variable selling expenses 6 10
Total variable costs $40 $59
Contribution margin per unit $45 $41
Tennis Shoe Walking Shoe Difference
Alternative 1 Alternative 2
Total contribution margin $315,000 $287,000 $28,000
Advertising costs (100,000) (100,000) 0
Total income (loss) ($215,000) $187,000 $28,000
Promote the Tennis Shoes (Alternative 1) because it will bring in more contribution margin than Alternative 2.
Explanation:
a) Data and Calculations:
Budgeted advertising costs = $100,000
Tennis Shoe Walking Shoe
Unit selling price $85 $100
Unit production costs:
Direct materials $19 $32
Direct labor 8 12
Variable factory overhead 7 5
Fixed factory overhead 16 11
Total unit production costs $50 $60
Unit variable selling expenses 6 10
Unit fixed selling expenses 20 15
Total unit costs $76 $85
Operating income per unit $9 $15
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 31% per year - during Years 4 and 5, but after Year 5, growth should be a constant 4% per year. If the required return on Computech is 14%, what is the value of the stock today
Answer: $17.42
Explanation:
Dividend at year 3, D3 = $1.50
D4 = $1.50 × 1.31 = $1.965
D5 = $1.965 × 1.31 = $2.57415
D6 = $2.57415 × 1.04 = $2.677116
P5 = D6/(r-g)
P5 = $2.677116 /(0.14 - 0.04)
= $2.677116 / 0.10
= $26.77116
Then, the the value of the stock today will be:
= 1.50/1.14³ + 1.965/1.14⁴ + (2.57415+26.77116)/1.14^5
= 1.0124573 + 1.1634377 + 15.241034
= 17.416929
= $17.42 Approximately
please help with accounting homework
Answer:
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Explanation:
A manufacturer, whose MARR is 8%, is considering two alternative plant layouts, A1 and A2. The first cost represent the expenses of rearranging the current layout to the alternative new layout and the annual savings represent the reduction in the production costs of the new layout compared to the current layout. Using the internal rate of return as the decision criterion, what course of action do you recommend? Year A1 A2 First Cost 0 $120,000 $130,000 Annual Savings 1 to infinity $11,000 $14,500
Answer:
Choose Alternative : A2
Explanation:
MARR = 8%
Alternatives : A1 and A2
Year A1 A2
First cost 0 $120,000 $130,000
Annual savings 1 to infinity $11,000 $14,500
determine what course of action to recommend
Incremental rate of return for infinite project ( r ) i.e. from A2 - A1
Apply this formula below to resolve the question
-first cost of more expensive alternative - (-first cost of less expensive alternative) + savings of more expensive/r - savings of less expensive/r = 0
= - 130,000 - ( - 120,000 ) + 14500 / r - 11,000 / r = 0
= -130,000 + 120,000 = 11,000 / r - 14,500 / r
= - 10,000 = - 3500 / r
∴ r = 3500 / 10000 = 0.35 = 35%
The incremental rate of return from A2 - A1 = 35% which is > MARR ( 8%)
hence choose alternative A2
Oriole Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories:
Product Cost Net realizable value
Market A $128000 $134000
B 90000 85000
C 179000 181000
After Oriole Company applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:___.
a. $405000.
b. $392000.
c. $400000.
d. $397000.
Answer:
b. $392000.
Explanation:
The computation of the inventory balance reported on the balance sheet is shown below:
Product Cost Net realizable value Lower value
A $128000 $134000 $128,000
B $90,000 $85,000 $85,000
C $179,000 $181,000 $179,000
Total $392,000
If wages are sticky, then a greater than expected increase in the price level Group of answer choices reduces the real costs of production, so the aggregate quantity of goods and services rises. raises the real costs of production, so the short-run aggregate supply curve shifts left. raises the real costs of production, so the aggregate quantity of goods and services declines. reduces the real costs of production, so the short-run aggregate supply curve shifts right.
Answer:
reduces the real costs of production, so the short-run aggregate supply curve shifts right.
Explanation:
The sticky-wage model or theory is an economical concept used to describe how in reality, wages may go up easily but slowly moves down and stays above the equilibrium because workers are resistant to nominal wage cut. This model was developed by John Maynard Keynes and he posited that, sticky-wage may lead to real-wage unemployment, as well as causing disequilibrium in the labor market.
In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
If wages are sticky, then a greater than expected increase in the price level reduces the real costs of production, so the short-run aggregate supply curve shifts right.
In the short-run, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price). The short-run nominal fluctuations basically cause a change in the level of production. In the short-run, as a result of a shift in the aggregate supply; an increase in money consequently to result in increase the level of production (output).
Raphael lives in Detroit and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Raphael does not operate this boat business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Manuel's costs in the following tab/e as either an implicit cost or an explicit cost of selling pianos.
a. The salary Manuel could earn if he worked as a financial advisor
b. The rental income Manuel could receive if he chose to rent out his showroom
c. The wholesale cost for the pianos that Manuel pays the manufacturer
d. The wages and utility bills that Manuel pays
Answer:
Implicit cost
The salary Manuel could earn if he worked as a financial advisor
b. The rental income Manuel could receive if he chose to rent out his showroom
explicit cost
c. The wholesale cost for the pianos that Manuel pays the manufacturer
d. The wages and utility bills that Manuel pays
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials.
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Only explicit cost is considered when calculating accounting profit while both explicit and implicit costs are considered in calculating economic profit.
Accounting profit= total revenue - explicit cost
Economic profit = accounting profit - implicit cost
If Manuel did not sell pianos, he would be working as a financial advisor, this is his next best option. Thus the salary he would have earned as a financial advisor is his explicit cost
If he did not use the showroom, he could have rented it out. Renting it out is his next best option. Thus the income from renting the showroom is his explicit cost
The wholesale cost of the pianos, wages and utility bills are monies actually expended in the course of running the business. Thus they are explicit costs
V144
QUESTION 2
A bus driver covers a certain distance in 3 hours at an average
speed of
80 km/h.How long will the journey take at an average speed of 50
km /h?
There are 96 boys and 120 girls in Grade 9. Write down the ratio
of thenumber of boys to the number of girls in the class.
QUESTION 3
Find the HCF and LCM of 172 and 258.
QUESTION 4
Answer:
3hr=80km/r
?=50km/R
(50*3)/80=1.88hr
On January 1, 2020, Cullumber Company had the following stockholders' equity accounts.
Common Stock ($10 par value, 75,000 shares issued and outstanding) $750,000
Paid-in Capital in Excess of Par-Common Stock 180,000
Retained Earnings 500,000
During the year, the following transactions occurred.
Jan. 15 Declared a $1.00 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 5% stock dividend to stockholders of record on April 30, distributable
May 15. On April 15, the market price of the stock was $15 per share.
May 15 Issued the shares for the stock dividend.
July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $13. (The new par value is $5.)
Dec. 1 Declared a $0.40 per share cash dividend to stockholders of record on December 15, payable January 10, 2021.
Dec. 31 Determined that net income for the year was $200,000.
Required:
Journalize the transactions and the closing entries for net income and dividends.
Answer:
Cullumber Company
Journal Entries:
Jan. 15 Debit Cash Dividends $75,000
Credit Dividends payable $75,000
To record the declaration of $1.00 per 75,000 shares.
Feb. 15 Debit Dividends payable $75,000
Credit Cash $75,000
To record the payment of dividends.
Apr. 15 Debit Stock Dividends $37,500
Credit Stock Dividends payable $37,500
To record the declaration of 5% stock dividends on 75,000 shares.
May 15 Debit Stock Dividends payable $37,500
Credit Common stock $37,500
To record the issuance of stock for dividends.
July 1 Stock split (2-for-1) 75,000 shares No financial entry
Dec. 1 Debit Cash Dividends $60,000
Credit Dividends payable $60,000
To record the declaration of cash dividends of $0.40 on 150,000 shares.
Dec. 31 Debit Net income $200,000
Credit Retained earnings $200,000
To close net income to retained earnings.
Debit Retained Earnings $167,500
Credit Cash Dividends $130,000
Credit Stock Dividends $37,500
To close the dividends accounts to retained earnings.
Explanation:
a) Data and Analysis:
Common stock ($10 par value, 75,000 shares
issued and outstanding) $750,000
Paid-in Capital in Excess of Par-Common Stock 180,000
Retained Earnings 500,000
Jan. 15 Retained earnings (Cash Dividends) $75,000 Dividends payable $75,000 ($1.00 * 75,000)
Feb. 15 Dividends payable $75,000 Cash $75,000
Apr. 15 Retained earnings (Stock Dividends) $37,500 Stock Dividends payable $37,500 (75,000 * 5%)
May 15 Stock Dividends payable $37,500 Common stock $37,500
July 1 Stock split (2-for-1) 75,000 shares No financial entry
Dec. 1 Retained earnings (Cash Dividends) $60,000 Dividends payable $60,000 ($0.40 * 150,000)
Dec. 31 Net income $200,000 Retained earnings $200,000
Which descriptions are examples of Logistics Planning and Management Services workers? Check all that apply.
Lucretia supervises workers who organize the products in a warehouse.
Jeff organizes the redevelopment of areas contaminated by pollution.
Beatrice sells tickets to passengers for trips, and advises them about travel routes.
Stephanie inspects vehicles and equipment to make sure they meet safety standards.
Marcel oversees the transportation activities of an organization.
Armand analyzes procedures for shipping and storage to identify ways to make them more efficient.
Answer:
A,E,F
Explanation:
Brainliest Please
Answer:
A, E, F
Explanation:
Hope this helps, have a great day (;
The income statement of Whitlock Company is presented here.
WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020
Sales revenue $7,407,400
Cost of goods sold Beginning inventory $1,920,000
Purchases 4,485,300
Goods available for sale 6,405,300
Ending inventory 1,445,800
Total cost of goods sold 4,959,500
Gross profit 2,447,900
Operating expenses 1,081,100
Net income $1,366,800
Additional information:
1. Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
4. Accrued expenses payable decreased $100,000 during the year.
5. Operating expenses include depreciation expense of $70,000.
Required:
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Whitlock Company, using the indirect method.
Answer:
$1,146,800
Explanation:
Preparation for the operating activities section of the statement of cash flows for the year ended November 30, 2020
WHITLOCK COMPANY
Partial Statement of Cash FlowsFor the Year Ended November 30, 2020
Cash flows from operating activities
Net income $1,366,800
Adjustments to reconcile net income to net cash provided by operating activities..
Activities
Depreciation expense $70,000
Decrease in inventory $500,000
Decrease in accrued expenses payable ($100,000)
Increase in prepaid expenses ($150,000)
Increase in accounts receivable ($200,000)
Decrease in accounts payable($340,000)($220,000)
Net cash provided by operatingActivities $1,146,800
($1,366,800-$220,000)
Therefore the operating activities section of the statement of cash flows for the year ended November 30, 2020 is $1,146,800
Zintendo, Inc., produces and sells a single product, the Zintendo Stitch gaming console, whose selling price is $400.00 per gaming console and whose variable costs are $224.00 per gaming console. The company's fixed costs are $5,935,750 per year. The current sales volume for the year ended 12/31/2020 is 36,300 gaming consoles.
Required:
a. Prepare a contribution margin income statement for the year ended 12/31/2020 at the current sales volume.
b. Determine the break-even point for the year.
c. What is the company's margin of safety for the year?
Answer and Explanation:
a. The preparation of the contribution margin income statement is presented below
Sales (36,300 × $400) $14,520,000
Less: variable cost (36,300 × $224) $8,131,200
Contribution margin $6,388,800
Less: fixed cost - $5,935,750
net income $453,050
b. The break even point is
In units
= Fixed cost ÷ contribution margin per unit
= $5,935,750 ÷ ($400 - $224)
= 33,726 units
In dollars
= Fixed cost ÷ contribution margin ratio
= $5,935,750 ÷ ($176 ÷ $400)
= $13,490,341
c. The margin of safety
In units
= Total sales units - break even units
= 36,300 - 33,726
= 2,574 units
In dollars
= Total sales - break even sales
= $14,520,000 - $13,490,341
= $1,029,659