Answer:
Answer to the following question is as follows;
Explanation:
It's determined by adding the purchase price among all fixed assets plus any modifications made to them. Then deduct any accrued depreciation from the total. In a nutshell, net fixed assets is a metric that indicates the true worth of a company's fixed assets.
Megan Corp. recognizes revenue over time to account for long-term contracts. At the date the contract is signed, the price is $600,000 and the expected costs to complete the contract are $400,000. The following information is available:
Year 1 Year 2 Year 3 Costs incurred to date $200,000 $350,000 $500,000 Estimated costs to complete 200,000 150,000 0 Progress billings 200,000 200,000 200.000
What is the amount of gross profit or loss that is recognized in year 2?
a. $30,000 loss
b. $40,000 gross profit
c. $150,000 loss
d. $200,000 gross profit
Answer:
a. $30,000 loss
Explanation:
Calculation to determine What is the amount of gross profit or loss that is recognized in year 2
First step is to calculate the Year 1 Cost to cost ratio using this formula
Year 1 Cost to cost ratio = 200,000 / ( Costs incurred + Cost to complete)
Let plug in the formula
Year 1 Cost to cost ratio= 200,000 / (200,000 + 200,000)
Year 1 Cost to cost ratio= 50%
Second step is to calculate the Gross profit or loss using this formula
Gross profit/Loss = 50% * ( Price - estimated cost to complete)
Let plug in the formula
Gross profit/Loss= 50% ( 600,000 - 400,000)
Gross profit/Loss= $100,000
Third step is to calculate the Year 2 Cost to cost ratio
Using this formula
Year 2 Cost to cost ratio = 350,000 / ( Costs incurred + Cost to complete)
Let plug in the formula
Year 2 Cost to cost ratio = 350,000 / (350,000 + 150,000)
Year 2 Cost to cost ratio = 350,000 / 500,000
Year 2 Cost to cost ratio = 70%
Now let calculate the gross profit or loss using this formula
Gross profit = 70% * ( Price - estimated cost to complete) - Previous Gross
Let plug in the formula
Gross profit= 70% ( 500,000 - 400,000) - 100,000
Gross profit= -$30,000
Gross Loss of $30,000 in Year 2
The last stage of the strategy-formulating, strategy-executing process is Multiple choice question. implementing and executing the strategy. making corrective adjustments. crafting a strategy. setting objectives.
Answer: making corrective adjustments.
Explanation:
The strategy-formulating, strategy-executing process allows for companies to come up with strategies and then implement them. The first step would be to actually think about a strategic vision and then set objectives on how the company can go about this vision.
Then the company should craft a strategy to match these objectives. After this is done, the strategy should be implemented and executed. The final step would then be to monitor and evaluate both the internal and external environment of the company so as to make corrective adjustments to the strategy to take advantage of the situation.
Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to a. both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices. b. only new customers who enter the market because of the lower prices. c. only existing customers who now get lower prices on the gowns they were already planning to purchase. d. Consumer surplus does not increase; it decreases.
Answer:
The answer is "Option a".
Explanation:
Dawn's bridal shop does have an evening gowns sale. The rise in consumer surplus is attributable to the fact that both existing customers now also have cheaper prices on the robes which previously planned to buy, as well as the new customers who enter the market due to lower prices even as advantages are identical but the prices are cheaper on the same robe. The current product and existing consumers are able t benefit from market sales, thereby increasing the excess of the new and current consumers.
Daniel derives utility from only two goods, cake (Qc) and donuts (Qd). The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows: MUc = Qd MUd = Qc Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3. What is Daniel's budget constraint?
Answer:
240= 3Qc + 3Qd
Explanation:
The computation of the Daniel's budget constraint is shown below;
Given that
Daniel's income= $240
Price of cake (Pc) =$3
Price of donuts (Pd) =$3
So spending on cake = 3Qc
And,
Spending on donut= 3Qd
Finally
Total spending = 3Qc + 3Qd
Now the equation of budget constraint is
Income= (quantity of cake)(price of cake) + ( quantity of donut)(price of donut)
So,
Income= Qc Pc+ Qd Pd
240= 3Qc + 3Qd
The Daniel's budget constraint is shown below;
Given Information :
Daniel's income= $240 Price of cake (Pc) =$3 Price of donuts (Pd) =$3 Spending on cake = 3Qc Spending on donut= 3QdTotal spending = 3Qc + 3Qd
Now, the equation of budget constraint is
Income= (quantity of cake)(price of cake) + ( quantity of donut)(price of donut) Income= Qc Pc+ Qd Pd 240= 3Qc + 3QdLearn more :
https://brainly.com/question/24232944?referrer=searchResults
Ripka Company has 20,000 units in inventory that had a production cost of $4 per unit. These units cannot be sold through normal channels due to a significant technology change. These units could be reworked at a total cost of $30,000 and sold for $35,000. Another alternative is to sell the units to a junk dealer for $10,500. The relevant cost for Ripka to consider in making its decision is Select one: a. $110,000 for reworking the units b. $30,000 for reworking the units c. $80,000 of original product costs d. $35,000 for selling the units to the junk dealer
Answer:
Ripka Company
The relevant cost for Ripka to consider in making its decision is:
b. $30,000 for reworking the units
Explanation:
a) Data and Calculations:
Inventory = 20,000 units
Production cost already incurred = $4 per unit
Total production cost = $80,000 (20,000 * $4)
Total Cost of Reworking the units = $30,000
Sales revenue after rework = $35,000
Alternative sales revenue without reworking = $10,500
b) Relevant cost is the avoidable cost. The cost that can be avoided in this instance is the cost of reworking the units, amounting to $30,000.
Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results. Budgeted Actual Sales $ 300 per unit $ 435,000 Variable expenses $ 120 per unit $ 172,000 Fixed expenses (total) $ 125,000 $ 122,000 Units produced and sold 1,200 1,400 List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
LEWIS Co.
Flexible budget performance report
For month ended May 31
Flexible budget Actual results Variances Result
Sales $420,000 $435,000 $15,000 Fav
(1400*$300)
Variable expense $168,000 $172,000 $4,000 Unfav
(1400*$120)
Contr. margin $252,000 $263,000 $11,000 Fav
Fixed cost $125,000 $122,000 $3,000 Fav
Net Income $127,000 $141,000 $14,000 Fav
See similar solution here
brainly.com/question/14015382
The decision to increase wages had a high probability of effect on Walmart’s success, illustrated by Multiple Choice pilot tests confirming that turnover would decrease. lawsuits that had been dropped. support from labor and worker rights groups. increased morale among all employees. flexible schedules, more training, and more HR personnel.
Answer: pilot tests confirming that turnover would decrease.
Explanation:
Companies that have a lower turnover of employees are generally more successful than companies that don't because these companies spend less on job training for new staff, have a staff that is more motivated and the presence of regular staff that bond with customers will inspire those customers to buy more.
Walmart engaged in pilot tests to confirm this theory and increased wages in several test locations. These locations became more successful after the wage increase and so Walmart decided to apply it across the board.
The spot and 30-day forward rates ($/SF) for the Swiss franc are $.3075 (1.0695) and $.3120(1.0885), respectively. The franc is said to be selling at a forward: a. Premium of 16.88%. b. Premium of 17.56%. c. Discount of 6.39%. d. Discount of 15.10%. e. Discount of 17.31
Answer:
b. Premium of 17.56%.
Explanation:
The computation is shown below:
Given that
Spot price = $0.3075
Forward rate = $0.3120
Now
Forward premium or discount is
= [(Forward rate - Spot rate) ÷ Spot rate] × (12 ÷ months) × 100
= [0.3120-0.3075) ÷ 0.3075 ] × (12 ÷ 1) × 100
= (.0045 ÷ 0.3075) × 12 ÷ 1 × 100
= 17.556 %
= 17.56 %
Hence, the Option B Premium of 17.56% is correct
2. The Lexington Property Development Company has a $10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is a. 9%
Answer:
$7721.83
Explanation:
the worth of the note today can be determined by calculating the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 and 2 = 0
Cash flow in year 3 = 10,000
I = 9%
PV = $7721.83
To determine the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Line Corporation's balance sheet showed the following amounts for their liability and stockholders' equity accounts: Current Liabilities, $5,000; Bonds Payable, $1,500; Lease Obligations, $2,000; and Deferred Income Taxes, $300. Total stockholders' equity was $6,000. The debt-to-equity ratio is
Answer:
1.47
Explanation:
Debt to equity ratio = Debt / Equity
Debt to equity ratio = (Current liabilities + Bonds payable + Lease obligations + Deferred income taxes) / Total stockholder's equity
Debt to equity ratio = ($5,000 + $1,500 + $2,000 + $300) / $6,000
Debt to equity ratio = $8,800 / $6,000
Debt to equity ratio = 1.47
EUR Spot Price $1.3579 $1.3527 $1.3588 $1.3580 July EUR Futures Contract Price $1.3750 $1.3782 $1.3827 $1.3713 The profit / loss posted to your account at the close of 3/02 is:.
Answer:
$2,850
Explanation:
The EUR spot price is $1.3579 whereas July futures contract have price of $1.3750. The contract size is EUR 125,000. The profit/ loss reported will be $2,850 based on the July futures contract price. On 3/03 the broker will get a margin call from the exchange.
The table shows Robinson Crusoe's production possibilities.
If Crusoe increases production of berries from 84.0 pounds to 104.0 pounds and production is efficient, his opportunity cost of producing 1 pound of berries is 1.3 pound of fish.
Crusoe's opportunity cost of producing an extra pound of berries____as he produces more berries
A. increases.
B. decreases.
C. sometimes increases and sometimes decreases.
D. does not change.
Possibility Berries (pounds) Fish (pounds)
A 0 144.0
B 16.0 140.0
C 30.0 132.0
D 42.0 120.0
E 52.0 104.0
F 84.0 84.0
G 60.0 60.0
H 66.0 32.0
I 70.0 0
Answer:
increases
Explanation:
U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 98,000 19,980 Labor (hours) 20,600 15,600 Raw materials (currency) $ 19,950 19,750 (FC) Capital equipment (hours) 59,250 5,600 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) c. Calculate raw material productivity figures (units/$ where $1
Answer:
a. Productivity = Sales /Labour Hour
U.S
Productivity = 98000 units/20600 hours
Productivity = 4.76
LDC
Productivity = 19980 units/15600 hours
Productivity = 1.28
Capital Productivity = Sales / Capital Equipment (Hours)
U.S
Capital Productivity = 98000 units/59250 hours
Capital Productivity = 1.65
LDC
Capital Productivity = 19980 units/5600 hours
Capital Productivity = 3.57
b. Multi-factor Productivity = Total Output (Sales) / (Labour Hours + Capital Equipment Hours)
U.S
Multi-factor Productivity = 98000 units/(20600+59250)
Multi-factor Productivity = 98000 units / 79850 hours
Multi-factor Productivity = 1.23
LDC
Multi-factor Productivity = 19980 units / (15600+5600)
Multi-factor Productivity = 19980 units / 21200 hours
Multi-factor Productivity = 0.94
c. Raw Material Productivity = Sales / Raw Materials Currency
U.S
Raw Material Productivity = 98000 units/$19950
Raw Material Productivity = 4.91
LDC
Raw Material Productivity = 19980 units / (19750 /10)
Raw Material Productivity = 19980 units / $1975
Raw Material Productivity = 10.12
When a perfectly competitive firm decides to shut down, Group of answer choices marginal cost is above average variable cost.
Answer:
price is below average variable cost
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
firms should shutdown when price is less than average variable cost and exit when price is less than average total cost
Use the cost information below for Ruiz Inc. to determine the total manufacturing costs incurred during the year: Work in Process, January 1 $ 52,400 Work in Process, December 31 38,200 Direct materials used $ 13,700 Total factory overhead 6,700 Direct labor used 27,700 Multiple Choice
Answer:
$48,100
Explanation:
Computation of total manufacturing cost incurred during the year is seen below;
Direct materials used
$13,700
Direct labor used
$27,700
Total factory overhead
$6,700
Total manufacturing cost incurred
$48,100
Therefore, the total manufacturing cost incurred during the year is $48,100
Respass Corporation has provided the following data concerning an investment project that it is considering:
Initial investment $160,000
Annual cash flow $54,000 per year
Salvage value at the end of the project $11,000
Expected life of the project 4 years
Discount rate 15%
The net present value of the project is closest to:____.
A) $67,000.
B) $160,516.
C) $516.
D) $(5,776).
Answer:
45,811.70Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-160,000
Cash flow in year 1 - 3 = $54,000
Cash flow in year 4 = 11,000
I = 15
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Prior to the 1990’s, De Beers diamonds maintained a near monopoly on diamond mining and diamond retail, __________ was high because they controlled supply and demand and controlled prices.
A. the threat of potential new entrants
B. the threat of substitutes
C. the bargaining power of buyers
D. the bargaining power of suppliers
E. rivalry among competitors
How has globalization made countries more independent
Answer:
Countries rely on each other for new industries. Countries rely on each other for chances to import. Countries rely on each other for an employment base. Countries rely on each other for cheaper products. Countries rely on each other for chances to export. Countries now rely on one another for vital resources.
The Tuck Shop began the current month with inventory costing $10,000, then purchased inventory at a cost of $35,000. The perpetual inventory system indicates that inventory costing $30,000 was sold during the month for $40,000. If an inventory count shows that inventory costing $14,500 is actually on hand at month-end, what amount of shrinkage occurred during the month
Answer:
$500 shrinkage
Explanation:
Calculation to determine the amount of shrinkage occurred during the month
Using this formula
Shrinkage=Ending inventory-Actual count
Let plug in the formula
Ending inventory=$10,000 + $35,000 - $30,000 Ending inventory= $15,000
Shrinkage=$15,000 - $14,500
Shrinkage= $500
Therefore the amount of shrinkage occurred during the month is $500
Classified stock differentiates various classes of common stock, and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control.A. TrueB. False
Answer: True
Explanation:
Classified stocks are referred to as the stocks of a publicly-traded company which possess different classes of stocks. Classified shares typically has some special privileges, like the dividend rights and the enhanced voting rights.
The use of classified stock allows the founders of a company to have control over the company despite not having to own the majority of the common stock. Therefore, the correct option is True.
The Gardner Company expects sales for October of $247,000. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $67,500. What is the amount of cash expected to be collected in October
Answer: $74100
Explanation:
Based on the information given, the amount of cash expected to be collected in October will be calculated thus:
October, credit sales will be:
= 60% x $247000
= $148200
Since the amount that'll be collected in October will be 50% of the credit sales. This will be:
= 50% × $148200
= $74100
ou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is - 3,
while group 2’s is - 5. Your marginal cost of producing the product is $40.
a. Determine your optimal markups and prices under third-degree price
discrimination.
b. Identify the conditions under which third-degree price discrimination
enhances profits
eehrhri48r8urrhhrjrjrjrjrjrjrjrj
roles of competition policy authorities in south Africa
Answer:
I hope you understand please follow me
Turk Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575. Which machine should Turk purchase
Answer:
E) Only Machine B is acceptable
Explanation:
The computation is shown below;
For Machine A
Year Cash Flow PV Factor PV of Cash Flow
0 -$9,000 1 -$9,000
1 $5,000 0.8696 $4,348
2 $4,000 0.761 $3,044
3 $2,000 0.6575 $1,315
NPV -$293
Machine B
Year Cash Flow PV Factor PV of Cash Flow
0 -$9000 1 -$9,000
1 $1,000 0.8696 $869.6
2 $2,000 0.761 $1,522
3 $11,000 0.6575 $7,232.5
NPV $624.1
As we can see that from the above calculations that the npv for machine A is in negative so the same should not be accepted but for machine the npv is in positive so the same should be accepted
Which of the following is a key consideration in selecting an allocation base?
a. The allocation base should have an indirect association with the cost objective.
b. The allocation base should be difficult to measure.
c. There should be logical association between the allocation base and the incidence of costs.
d. The allocation base should be out of the control of management.
Answer:
C. There should be logical association between the allocation base and the incidence of costs.
Explanation:
We define the allocation base as that quantity through which the overhead cost and be allocated to. This base is usually in the form of a quantity. It could be the kilowatts used in hours, or the machine hours used.
It should be able to show to a logical extent how the cost object used the resources to which it is assigned
What is the reason AD is downward sloping ? what causes AD to shift? Define OKun's law
subject Macroeconomics, please please help...
Answer:
Increased spending power.
Explanation:
At a lower price level, consumers are likely to have higher disposable income and therefore spend more.
Vincenzo Martin and Sasha Boudrakis have started a new firm, The Fan Base. Vincenzo is a well-known marketing guru who advises major league sports franchises on how to maximize the revenue from their teams' brands and logos. Sasha, meanwhile, is mostly silent in the operation. He has invested $2 million to get The Fan Base off the ground, and in return he receives 25% of the firm's annual profits. The Fan Base is organized as a Group of answer choices corporation. limited liability company (LLC). sole proprietorship. general partnership. limited partnership.
Answer: limited partnership
Explanation:
With the description given in the question, the The Fan Base is organized as a limited partnership. A limited partnership has a general partner, whom has an unlimited liability and a limited partner.
A limited partnership is when two or more partners go into business together, and in this case, the limited partners will be liable only up to the amount that they invested in the business.
The following information pertains to Lightning Inc., at the end of the year:
Credit Sales $75,000
Accounts Payable 13,900
Accounts Receivable 8,200
Allowance for Uncollectible Accounts $900 credit
Cash Sales 24,000
Lightning uses the percentage-of-credit-sales method and estimates 4% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?
$3,900
$4,860
$3,000
$2,100
Answer:
$3900
Explanation:
Calculation to determine the ending balance of the allowance account after the year-end adjustment
Balance in allowance for uncollectible account$ 900
Add Bad debts during the period $3,000
($75,000*4%)
Ending Balance in allowance for uncollectible account$ 3,900
($900+$3,000)
Therefore the ending balance of the allowance account after the year-end adjustment is $3900
For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio
The question is incomplete. The complete question is :
For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio?
Initial cost = $10,000,000
O & M cost / year = $450,000
Estimated annual benefits = $850,000
Life = 25 Years
Salvage value = $1 million
MARR = 6%
Solution :
Given :
Initial cost = $10,000,000
Salvage, S = $1,000,000
O and M Cost/year = AOM = $450,000
Benefit per year, AWB = $ 850,000
Equivalent initial cost per year = C
Equivalent salvage per year = S x (A/F, 0.06, 25) = 1,000,000 x (A/F, 0.06, 25)
Let us calculate the interest factors,
[tex]$(A/P,i,n)=\frac{i}{1-\frac{1}{(1+i)^n}}$[/tex]
[tex]$(A/P,0.06,25)=\frac{0.06}{1-\frac{1}{(1+0.06)^{25}}}=0.078226718$[/tex]
[tex]$(A/P,i,n)= \frac{i}{(1+i)^n-1}[/tex]
[tex]$(A/P,0.06, 25)= \frac{0.06}{(1+0.06)^{25}-1} = 0.018226718[/tex]
The equivalent initial cost per year = AWC = 10000000 x 0.078226718 = $ 782267.18
Equivalent salvage per year, AWS = 1,000,000 x 0.018226718 = $ 18226.72
Conventional B-C ratio = AWB/(AWC-AWS+AOM)
= 850000/(782267.18-18226.72+450000)
= 0.7001
Modified B-C ratio = (AWB-AOM)/(AWC-AWS)
= (850000-450000)/(782267.18-18226.72)
= 0.5235
In this case. both the conventional B-C ratio and modified B-C ratio are less than 1, the project is not acceptable.
Are executive pay levels unreasonable? Why or why not
Answer:
In my opinion, some corporate salaries for high-ranking executives are excessively high for the functions that these people have in these companies and the impact that their work has on their economy and on the well-being of society as a whole.
It is that, although we live in a capitalist, free and democratic society in which everyone has the right to earn the sum of money that their employer is willing to pay, the truth is that in certain cases (or in most cases ) Said salaries are not justified based on the contributions that said executives make in their day-to-day work.