Answer:
0.085
Explanation:
The computation of the expected change in the quantity of teenage is shown below:
As we know that
Price elasticity of supply = Percentage change in quantity supplied ÷ Percentage change in price
where,
Percentage change in price is
= (p1 + p2) ÷ 2 ÷ (p2 - p1)
= ($7.25 + $8.75) ÷ 2 ÷ ($8.75 - $7.25)
= 8 ÷ 0.5
= 16
Now the change in the quantity of supplied is
= 1.36 ÷ 16
= 0.085
A financial analyst tells you that investing in stocks will allow you to double your money in 7 years. What annual rate of return is the analyst assuming you can earn
Answer:
10.4%
Explanation:
there are two ways that you can calculate this:
using the rule of 70, the annual interest rate = 70 / 7 = 10%
or
we can calculate it
2 = 1 x (1 + i)⁷
⁷√2 = ⁷√(1 + i)
1.104 = 1 + i
i = 0.104
i = 10.4%
the second way is more exact, so we should choose it
Match each type of insurance with an example of when the insurance
company would make a payment.
Renter's
insurance
?.
You cause an accident
that damages someone
else's car.
Liability coverage
?
You have to take a month
off from work because of
a broken leg.
Health insurance
2
Your stereo and computer
are stolen from your
apartment
Disability
insurance
?
You go to the emergency
room after a car accident.
Answer:
See below
Explanation:
Renter's insurance
Your stereo and computer are stolen from your apartment. Renters insurance provides coverage for policyholder's properties other than their dwelling place.
Liability coverage
You cause an accident that damages someone else's car. It protects against claims arising from damages to other people or their properties.
Health insurance
You go to the emergency room after a car accident. Offers insurance coverage for medical bills incurred by the policyholder or their dependents.
Disability Insurance
You have to take a month off from work because of a broken leg. Provides protection against loss of income as a result of serious bodily injuries to the policyholder.
For students not wanting a traditional major in marketing or accounting, for example, YSU decided to create a general business major, which allowed any combination of the easiest business courses to comprise the program. The competitive priority achieved in this example is:
Answer:
The correct approach is "Customization".
Explanation:
Customization continues to recognize a consumer preference but instead wants to increase consumer satisfaction whilst also implementing the merchandise to individual communities. Configuration of the software systems throughout meeting personal eligibility criteria. Before the next organization could streamline its operational activities utilizing software applications, one must first ensure that the computer seems to be capable of automating together all procedures it requires.A responsibility center is best described as: Multiple Choice any part of an organization whose manager has control over and is accountable for cost, profit, or investments. any part of an organization that has responsibility for managing product and service quality. any financial sub-unit within an organization that has the responsibility to account for the performance of other organizational sub-units. any part of an organization that has responsibility for optimizing customer service and satisfaction
Answer:
any financial sub-unit within an organization that has the responsibility to account for the performance of other organizational sub-unit
Explanation:
The responsibility center is the functional entity within a business that have their own goals and objectives, staff who is dedicated to their work, rules, regualtions, policies, procedures. It generally provide the managers the responsibility for the generation of the revenue, expenses that are incurred or the fund that is invested
So the above represent the answer
Cullumber Corp. had total variable costs of $247,500, total fixed costs of $193,500, and total revenues of $450,000. Compute the required sales in dollars to break even.
Answer:
$430,000
Explanation:
The first step is to calculate the contribution margin
= revenues-variable cost
= $450,000-$247,500
= $202,500
The contribution margin ratio can be calculated as follows
= 202,500/450,000
= 0.45×100
= 45%
Therefore the required sales to break even in dollars can be calculated as follows
= 193,500/45
= 4300×100
= $430,000
Which is the simplest way to setup a business?
A. Cooperative
B. Corporation
C. Partnership
D. Sole
Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 179,800 Permanent differences (16,300 ) 163,500 Temporary difference-depreciation (13,400 ) Taxable income $ 150,100 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 14,300 As of December 31, 2021 $ 27,700 The enacted tax rate was 26% for 2020 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2021?
Answer:
$7,202
Explanation:
Calculation for What should be the balance in Kent's deferred tax liability account as of December 31, 2021?
December 31, 2021 Deferred tax liability=$ 27,700 x 26%
December 31, 2021 Deferred tax liability=
= $7,202
Therefore What should be the balance in Kent's deferred tax liability account as of December 31, 2021 is $7,202
Arktec manufacturing must choose between the following two capacity options:
Fixed cost (per year) Varriable cost (per year)
Option 1 $500,000 $ 2 per unit
Option 2 $100,000 $10 per unit
A. What would the cost be for each option if demand level is 25,000 units per year? If it is 75,000 units per year? SHOW WORK
B. In general, which option do you think would be better as volume levels increase? as they decrease? why? SHOW WORK
C. What is the indifference point? SHOW WORK
Answer:
See below
Explanation:
A. The cost for each for each option;
•If demand level is 25,000 units per year
Option 1 = $500,000 + ($2 × 25,000 unit
= $500,000 + $50,000
= $550,000
Option 2 = $100,000 + ($10 × 25,000 units)
= $100,000 + $250,000
= $350,000
• If the demand level is 75,000 units per year
Option 1 = $500,000 + ($2 × 75,000 units)
= $500,000 + $150,000
= $650,000
Option 2 = $100,000 + ($10 × 75,000 units)
= $100,000 + $750,000
= $850,000
B. As the volume level increases, option 1 will be better since the variable cost is lower. As the volume decreases, option 2 will be better as the fixed cost is lower.
C. The indifference point
= Differential fixed cost/Differential variable cost per unit
= [$500,000 - $100,000]/[$10 -$2]
= $400,000/$8
= 50,000 units
A professional who searches for mispriced securities in specific areas such as merger-target stocks, rather than one who seeks strict (risk-free) arbitrage opportunities is engaged in
Answer:
Risk arbitrage.
Explanation:
This strategy in business dealings is seen to be forced up when a form of security is been sold from a firm to another. This is done with its value been raised very high; not minding the risk been involved. It can also be described as a form of exploitation of the market especially when seen to be imbalanced. Especially in the trade of stocks; here, these stocks are been bought during these imbalance period and been given out for sale at high and outrageous prices.
a. The summary of significant accounting policies is located in note 2 to the financial statements. Locate the section on property and equipment. What depreciation method does American Eagle use
Answer:
American Eagle uses the straight-line depreciation method in depreciating its property, plant, and equipment.
Explanation:
The straight-line depreciation method involves applying the same rate on the initial depreciable amount or the same amount of depreciation expense throughout the asset's useful life. For American Eagle, this method involves the estimation of the useful life of each property, plant, and equipment class. The company has established that its buildings have 25 years useful life, leasehold improvements 10 years, fixtures and equipment 5 years, while information technology assets have 3 to 5 years. This implies that after deducting any estimated salvage value, the depreciable amount (basis) of the asset is divided by the number of estimated useful life. For building, this can also be expressed in percentage terms as 4% (100/25); for leasehold improvements as 10% (100/10); for fixtures and equipment as 20% (100/5); and same for information technology.
Question 1 (14 points)
Imagine that you own your business. You are producing a product (it could be a service). You would like to differentiate your product.
a. (6 points) Why would you want to differentiate your product?
b. (8 points) How would you do it? How would your product differ? Please provide a specific product: a detailed explanation of your original product and how you would differentiate it. Please do not use the examples covered in class.
Question 2 (15 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product. Imagine further that you or your consumers face an asymmetric information problem.
a. (5 points) Please explain in detail what this asymmetric information problem, and who is facing it (your firm or your consumers).
b. (10 points) Please explain how you solved this problem.
Question 3 (11 points)
Imagine that you own your business. It does not need to be the same as in other questions, you are allowed to pick a different firm or product.
a. (3 points) Think about your production process. Please explain the technology that you use in the production process.
b. (8 points) How do you think the technology that you use, affects the market structure and/or the demand of your product? Note that this question is NOT about how technology affects your production process, therefore, NOT about productivity, NOT about the cost structure.
Answer:
a. (6 points) Why would you want to differentiate your product?
Because differentiating your product is one of the two basic business strategies, the other one being reducing the price of the product. Differentiating your product allows you to gain competitiveness in a contested market.
b. (8 points) How would you do it? How would your product differ?
An product that can be differentiated is a yogurt. The market for yogurt is very competitive so differentiation is necessary. The yogurt could be flavored in less common ways: like saffron, kiwi or cucumber, and the technique could be adapted from Greek Yogurt to give a healthier style.
a. (5 points) Please explain in detail what this asymmetric information problem, and who is facing it (your firm or your consumers).
The problem of asymmetric information occurs when one party of the transaction has more information than the other party. In a typical business transaction, the managers of the firm have more information than consumers, so consumers would be facing the problem of asymmetric information.
b. (8 points) How do you think the technology that you use, affects the market structure and/or the demand of your product?
Technology can make the market structure more competitive or less, but it usually makes it more competitive. Technology also improves the productiviy and efficiency of the production process, which leads to costs reductions than pass through price. This in turn raises demands for the product.
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 41,000 speaker sets:
Sales $3,362,000
Variable costs 840,500
Fixed costs 2,310,000
Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $20.00 per set; annual fixed costs are anticipated to be $1,986,000.
Required:
1. Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States.
2. Determine the break-even point in speaker sets if operations are shifted to Mexico.
3. Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.
4. If variable costs remain constant, by how much must fixed costs change?
5. If fixed costs remain constant, by how much must unit variable cost change?
6. Determine the impact (increase, decrease, or no effect) of the following operating changes.
A) Effect of an increase in direct material costs on the break-even point.
B) Effect of an increase in fixed administration costs on the unit contribution margin.
C) Effect of an increase in the unit contribution margin on net income.
D) Effect of a decrease in the number of units sold on the breakeven point.
Answer:
1. $211,500 and $3,644,000
2. 32,033 speaker sets (Mexican)
3. 32,033 speaker sets (Mexican required Break even)
4. $323,954 decrease
5. $11,11 decrease
6. Determining Effects :
A. decrease
B. no effect
C. increase
D. no effect
Explanation:
Part 1
a
Income = Contribution (Sales - Variable Costs) - Fixed Costs
therefore,
Income = $3,362,000 - $840,500 - $2,310,000 = $211,500
b
Double the figure of income = $211,500 x 2 = $423,000
Sales to achieve target profit = Target Profit + Fixed Cost ÷ Contribution Margin
where,
Contribution Margin = Contribution (Sales - Variable Costs) ÷ Sales
= ($3,362,000 - $840,500) ÷ $3,362,000
= 0.75
therefore,
Sales to achieve $423,000 profit = ($423,000 + $2,310,000) ÷ 0.75
= $3,644,000
Part 2
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
Fixed Cost = $1,986,000
Contribution per unit = ($3,362,000 / 41,000) - $20.00 = $62.00
therefore,
Break even point (speaker sets) = $1,986,000 ÷ $62.00
= 32,033 speaker sets
Part 3
Mexico :
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
Fixed Cost = $1,986,000
Contribution per unit = ($3,362,000 / 41,000) - $20.00 = $62.00
therefore,
Break even point (speaker sets) = $1,986,000 ÷ $62.00
= 32,033 speaker sets
United States :
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
Fixed Cost = $2,310,000
Contribution per unit = ($3,362,000 / 41,000) - ($840,500 / 41,000) = $61.50
therefore,
Break even point (speaker sets) = $2,310,000 ÷ $61.50
= 37,561 speaker sets
Part 4
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
US Fixed Cost = $2,310,000
Fixed Cost Required = Unknown
Contribution per unit = $82.00 - $20.00 = $62.00
therefore,
Fixed Cost = Breakeven Point x Contribution per unit
= 32,033 speaker sets x $62.00
= $1,986,046
Change in Fixed Costs = $323,954 decrease ($2,310,000 - $1,986,046)
Part 5
Break even point (speaker sets) = Fixed Cost ÷ Contribution per unit
where,
US Fixed Cost = $2,310,000
US Contribution per unit = $82.00 - $20.00 = $62.00
Contribution per unit = $82.00 - V = Unknown
therefore,
Contribution per unit = Fixed Costs ÷ Breakeven point
= $2,310,000 ÷ 32,033 speaker sets
= $73.11
Variable Cost = Selling Price - Contribution per unit
= $82.00 - $73.11
= $8.89
Change in Variable Cost = $11,11 decrease ($20.00 - $8.89)
The terms of an invoice are 3/10, n/25. This means that a
Answer:
see below
Explanation:
This expression represents terms of credit as offered by a seller.
The first digit 3, represents is the discount offered as a percentage of the invoice amount. The second digit 10, is the number of days the discount is availablen stands for netThe last digit 25, is the number of days within which the net is expected if the discount option is not taken.This means that
A discount of 3 % is available on the total invoice if the buyer pays within 10 days from the invoice date. Otherwise, the full invoice amount should be paid within 25 days from the invoice date.
"Many service companies collect data via a follow-up survey of their customers. Suppose, in order to ascertain customer sentiment, a certain air line sends an email to customers immediately following a flight. The following question is asked, among others. How likely are you to recommend this air line to others?"
Answer: Categorical; Ordinal
Explanation:
The data that are collected by the airline in this case is referred to as categorical.
The categorical variables are simply referred to as categorical variables because they can be segregated into groups. Also, the measurement of scale that is used is the ordinal scale.
Ordinal data is a kind of categorical data with a set order or scale to it.
Comment
There are different ways to respond to an issue. Due to the fact that the response stated are five choices, therefore, the response is a categorical response.
When you look at the five responses for the labels for the customer responses, you will see that a nominal scale is being used.What is a categorical response?
Categorical is known to be the term for all single-choice or multiple-choice response to a given question.
See full question below
Airline Customer Satisfaction. Many service companies collect data via a fol-low-up survey of their customers. For example, to ascertain customer sentiment, Delta Air Lines sends an email to customers immediately following a flight. Among other questions, Delta asks:
How likely are you to recommend Delta Air Lines to others?
The possible responses are: Definitely
Will
Probably Will
May or May Not
Probably Will Definitely Will Not
Not
a. Are the data collected by Delta in this example quantitative or categorical?
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Companies HD and LD have the same tax rate, sales, total assets, and basic earnings power. Both companies have positive net incomes. Company HD has a higher debt ratio, and therefore a higher interest expense. Which of the following is correct?
a. Company HD has a lower equity multiplier.
b. Company HD has more net income.
c. Company HD pays more in taxes.
d. Company HD has a lower ROE.
e. Company HD has a lower times-interest-earned (TIE) ratio.
Answer:
Company HD pays less in taxes
Explanation:
In the case when the company HD and LD have the similar rate of tax, sales revenue, etc even both have favorable net incomes also the company Hd contains greater debt ratio due to which it has more interest expense so that means company hd would pay less taxes
Therefore the above represent the answer
and, this is the answer but the same is not provided in the given options
Answer:
Company HD pays less in taxes
Explanation:
Describe a historical situation where a failure to assess and correctly interpret the external environment resulted in a business' failure. What elements of the external environment were missed
Answer: Nokia case- Lack of assessment for the smart phone
Explanation:
Nokia had a big influence in the international market for cell phone products in the global market. They could not make the assessment for the external market adequately for the need of the smart phone technology. This resulted in their major failure and they began loosing global recognition and lost the entire market share due to the shift from keypad technology to smart phone technology. They could not interpret correctly their external environment and lack of market assessment
Prepare a business plan for farming five cows for milk production ?
Answer:
Creating a dairy farming business plan is always a good strategy, it will be your saviour as it will act as a reference guide for your business.
Executive summary
Summary.
Company description.
Market Analysis.
Organization description.
Product Line.
Marketing plan.
Marketing team.
Funding request and use.
Explanation:
As she prepared financial documents to be discussed at her company's
annual shareholders' meeting, Linda added an appendix to the financial overview that details all financial transactions in the last fiscal year.
Which of the accounting principles below is she observing?
a) Matching Principle
b) Measurement Principle
c) Full Disclosure Principle
d) Time Period Principle
Answer: c) Full Disclosure Principle
Explanation:
The Full Disclosure Principle is a principle in accounting that tries to reduce any information asymmetry between a company and the people who are to have access to their financial statement.
It does so by requiring that all relevant information to the financial statements such as financial overviews for the period are added to the statements so that the readers can understand the transactions that took place as well as the accounting methodology used.
In general, the production and use of capital ________ the productivity of labor and normally ________ wages. A) enhances; drives up B) enhances; drives down C) diminishes; drives down D) has no effect on; has no effect on
Answer: B. enhances; drives down
Explanation:
Capital are the resources that are used by an organization which can bring about an increase in the production of such organization. Organizations undertake capital investment in order to enhance productivity and also increase revenue.
In such cases, this helps in driving down wages. This is because when an organization uses more of capital in its productive activities, less of labor is required which can help drive down wages.
How is IMC involved in creating social meaning for a brand?
Answer:
Step-By Step Explanation:
A robust ______________ can go a long way to reducing project problems over the life of the project and will establish how, when and to whom information must be supplied.
Answer:
Communication plan.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
The fundamentals of Project Management are considered universal across most businesses and professions.
The fundamentals of Project Management includes;
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and controlling of the project
5. Adapting and closure of project.
A communication plan can be defined as a project plan which explicitly outlines or states the set of people who needs an information, when it is delivered and what communication channel should be used to deliver the information to the stakeholders.
Hence, a robust communication plan can go a long way to reducing project problems over the life of the project and will establish how, when and to whom information must be supplied.
4. Suppose the supply of apples sharply increases because of perfect weather conditions throughout the growing season. Assuming no change in demand, explain the effect on the equilibrium price and quantity of apples. Explain why the quantity demanded increases even though demand does not change.
Answer:
Apples supply increase imply new equilibrium at lower price, higher quantity. Demand downwards expansion on the curve itself is due to lower price.
Explanation:
Market is at equilibrium where Market Demand = Market Supply, & downward sloping demand curve intersects upward sloping demand curve.
If supply of apples increase & supply curve shifts rightwards, there is Excess Supply at previous equilibrium. Excess Supply creates competition among sellers, reduces new market price.
At lower price, demand expands & supply contratcs. New Equilibrium quantity is higher where new (rightwards shifted) supply curve intersects demand curve.
Quantity demanded increases (expands - downwards movement on demand curve) due to lower price, despite of no change in demand.
Increased apple supply implies a new equilibrium of lower price and increased quantity. The supply curve's downwards growth is attributable to reduced prices.
Global market equals available supply, and the downward sloping arc meets an upwards sloping demand curve.
There is Excess Quantity at the prior equilibrium if the production of apples increases and the supply curve changes rightwards. Excess supply encourages sellers to compete, lowering the new market price.
Notwithstanding no change in the market, the quantity demanded increases due to a reduced price.
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F brown lent us 4000 giving us the money by cheque
Answer:
See below
Explanation:
This transaction is affecting the bank's balance and F brown accounts. It is increasing the bank balance( asset account) by 4000 and increasing accounts payable/F brown ( liabilities account) by 4000.
An increase in assets is debited while an increase in liabilities is credited.
The journal entry will be
Bank A/c Dr. 4000
F brown A/c 4000
Global trade with China is Multiple Choice too risky and not worth the effort. dependent upon the success of multinational corporations. an emerging business opportunity for several companies. illegal based on World Trade Organization (WTO) rulings.
Answer:
an emerging business opportunity for several companies.
Explanation:
China is a developed nation with so many businesses that cut across the world. The country is filled with entrepreneurs who are constantly seeking to expand their horizons through collaboration with other nations.
Entrepreneurs who are seeking better ways to do business or the latest technologies to deploy in their businesses can benefit by collaborating with China.
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $ 605,000 Cost of goods sold 425,000 Salaries 112,000 ($15,000 is indirect) Utilities 14,000 ($3,000 is indirect) Depreciation 42,000 ($10,000 is indirect) Office expenses 20,000 (all indirect) 1. Prepare a departmental income statement for 2019. 2.
Answer:
Part 1
JANSEN COMPANY
Departmental Income Statement—Ski Department
Sales $605,000
Cost of Sales ($425,000)
Gross Profit $180,000
Direct Expenses
Salaries ($97,000)
Utilities ($11,000)
Depreciation ($32,000)
Other Expenses ($38,000)
Operating profit $2,000
Part 2
JANSEN COMPANY
Departmental Contribution to Overhead—Ski Department
Sales $605,000
Cost of Sales ($425,000)
Gross Profit $180,000
Direct Expenses ($140,000)
Contribution $40,000
Less Overheads
Salaries ($15,000)
Utilities ($3,000)
Depreciation ($10,000)
Office Expenses (20,000)
Total Overheads $48,000
Contribution to overhead $40,000 : $48,000
Part 3
No. Jansen should not eliminate the ski department because it is making a profit on it on (Contributing towards the company costs)
Explanation:
Hie, I have attached the full question as pdf below
If the department is making a loss on its own, it must be eliminated. Departments must make a contribution towards the costs of the company overall
Shown as follows are selected transactions of the architectural firm of Baxter, Claxter and Stone. Inc.
April 5 Prepared building plans for Spangler Construction Company. Sent Spangle: an invoice for $13,200 requesting payment within 30 days, (The appropriate revenue account is entitled Drafting Fees Earned.)
May 17 Declared a cash dividend of S2.400. The dividend will not he paid until June 25.
May 29 Received a SS.4(H) bill from Bob Needham. CPA. for accounting services performed during May Payment is due by June 10. (The appropriate expense account is entitled Professional Expenses.)
June 4 Received full payment from Spangler Construction Company for the invoice sent April 5.
June 10 Paid Bob Needham, CPA, for the bill received on May 29.
June 25 Paid the cash dividend declared On May 17.
Required:
a. Prepare journal entries to record the transactions in the firm's accounting records.
b. Identify any of these transactions that will not result in a change in the company's net income.
Answer:
Baxter, Claxter and Stone. Inc.
a. Journal Entries:
April 5:
Debit Accounts Receivable (Spangler) $13,200
Credit Drafting Fees Earned $13,200
To record the provision of building plans to customer.
May 17:
Debit Dividend Expense $2,400
Credit Dividends Payable $2,400
To record the declaration of cash dividend.
May 29:
Debit Professional Expenses $
Credit Professional Expenses Payable $
To record the receipt of bill from Bob Needham, CPA for accounting services.
June 4:
Debit Cash Account $13,200
Credit Accounts Receivable (Spangler) $13,200
To record the receipt of full payment.
June 10:
Debit Professional Expenses Payable $
Credit Cash Account $
To record the payment of bill to Bob Needham.
June 25:
Debit Dividends Payable $2,400
Credit Cash Account $2,400
To record the payment of dividend.
b. Transactions that will not result in a change in the company's net income are:
May 17 Declared a cash dividend of S2.400. The dividend will not he paid until June 25.
June 4 Received full payment from Spangler Construction Company for the invoice sent April 5.
June 10 Paid Bob Needham, CPA, for the bill received on May 29.
June 25 Paid the cash dividend declared On May 17.
Explanation:
The listed transactions will not affect the net income of the company. Dividends are paid out of net income. The other transactions are transactions involving cash flow. They are not revenue and expenses transactions, which affect net income.
Do you think that some people are more susceptible to psychological marketing than others? Explain
Answer: yes, because some people studied the material which would make it easier for the to catch on.
Explanation:
Perrette Motor Company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt engine has a 100,000-mile warranty and is purchased by auto shops, large motor pools in companies and governmental units, and some individual auto owners. The plant at Dayton, Ohio, specializes in the Ford V6 engine. Approximately 630 to 830 engines are rebuilt each month, and the costs of the plant are assigned to monthly production using weighted-average process costing. The current month began with a work-in-process inventory of 120 engines which were 50% complete for materials and 50% complete for conversion costs. The materials cost in beginning work-in-process was $68,000, while the conversion cost was $73,200. A total of 530 engines were completed and shipped out during the month, and total materials cost of $636,000 and conversion cost of $731,400 were incurred during the month. The ending work-in-process of 220 units was 50% complete for materials and 30% complete for conversion costs.
Required:
Compute the cost per equivalent unit for materials and conversion for the month.
material cost per equivalent unit:
conversion cost per equivalent unit;
Answer:
Perrette Motor Company
Computation of the cost per equivalent unit for materials and conversion for the month:
1. Material cost per equivalent unit: $1,100
2. Conversion cost per equivalent unit: $1,350
Explanation:
a) Data and Calculations:
Units % of completion Equivalent unit
Materials Conversion Materials Conversion
Beginning WIP 120 50% 50% 60 60
a) Started and
Completed 530 100% 100% 530 530
b) Ending WIP 220 50% 30% 110 66
Equivalent units 640 596
Cost of production:
Materials Conversion
Beginning WIP $68,000 $73,200
Started & completed 636,000 731,400
Total cost $704,000 $804,600
Equivalent units 640 596
Cost per equivalent unit $1,100 $1,350
b) When calculating the equivalent units under the weighted average process costing method, the units beginning work-in-process are not taken into consideration, but the costs are.
1. Max purchased a used car for $3400. He paid 62 % sales tax. How much tax did he pay?
Answer:
$2,108
Explanation:
Max purchases a used car for $3400.
The sales tax paid was 62%
The tax amount would be 62% of $3,400
=62/100 x $3,400
=0.62 x $3,400
=$2,108
Tax amount = $2,108
Develop an Excel model for the following LP transportation problem. Solve the problem using Solver and match the correct answer to the questions. Warehouse City E City F City G City H Warehouse Supply A 0.53 0.21 0.52 0.41 4500 B 0.31 0.37 0.41 0.28 5000 C 0.56 0.32 0.56 0.33 4000 D 0.41 0.54 0.34 0.52 5500 City Demand 4,400 3,500 5,500 5,600 Match the correct answer to the following questions: 1. What is the value of the objective function
Answer:
The objective function is:
Minimization (Z) = 0.53Xae + 0.21Xaf + 0.52Xag + 0.41Xah + 0.31Xbe + 0.37Xbf + 0.41Xbg + 0.28Xbh + 0.56Xce + 0.32Xcf + 0.56Xcg + 0.33Xch + 0.41Xde + 0.54Xdf + 0.34Xdg + 0.52Xdh
Explanation:
Solution:
We are asked to find the value of the objective function in this data given.
So,
Let Xae be the number of units shipping from warehouse A to city E.
Similarly, we have Xaf, Xag, Xah
Let Xbe be the number of units shipping from warehouse B to city E .
Similarly, we have Xbf, Xbg, Xbh
Let Xce be the number of units shipping from warehouse C to city E .
Similarly, we have Xcf, Xcg, Xch
Let Xde be the number of units shipping from warehouse D to city E .
Similarly, we have Xdf, Xdg, Xdh
Furthermore,
0.53 is the shipping cost of 1 unit from warehouse A to City E.
So, the shipping cost of Xae units from warehouse A to City E is 0.53Xae.
Similarly, we have other corresponding costs.
Hence,
The objective function is:
Minimization (Z) = 0.53Xae + 0.21Xaf + 0.52Xag + 0.41Xah + 0.31Xbe + 0.37Xbf + 0.41Xbg + 0.28Xbh + 0.56Xce + 0.32Xcf + 0.56Xcg + 0.33Xch + 0.41Xde + 0.54Xdf + 0.34Xdg + 0.52Xdh