Answer:
Return on investment = -0.71%
Explanation:
The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment.
Dividend is the proportion of the profit made by a company which is paid to shareholders.
Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.
Therefore, we can can compute the return on the investment as follows:
Total Return on investment =
(Capital gain/ loss + dividend )/purchase price × 100
Capital loss = (184 -140) × 120 = - 480
Dividend = 427
Commission = 34 + 39 =-73
Net loss on investment = - 480 - 73 + 427= -126
Return on investment = -126 /(148× 120) = -0.71%
Return on investment = -0.71%
The negotiated ________ agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures.
Answer:
labor-management
Explanation:
Labor-management agreement is when the leaders and the employees of a company make an agreement that has the goal of protecting the rights of the parties involved and define aspects like salaries and working conditions of the employees. According to this, the answer is that the negotiated labor-management agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures because this agreement between employees and employers establishes the conditions the employees will receive for their services to avoid disputes and protect the rights of the parties.
Annual Worth and Capital Recovery Calculations U S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year?
Answer:
$5,601,632
Explanation:
we must first calculate the present value of the required investments and the annual costs:
initial investment = $13,000,000 + $10,000,000/1.1 = $22,090,909
annual costs = $1,200,000 x 5.0188 (PV annuity factor, 15%, 10 periods) = $6,022,560
present value of initial investment + annual costs = $28,113,469
we must calculate an annuity that has a present value = $28,113,469 with a 15% discount rate and 10 years:
annuity = $28,113,469 / 5.0188 = $5,601,631.67 ≈ $5,601,632
Southland Company is preparing a cash budget for August. The company has $16,300 cash at the beginning of August and anticipates $124,200 in cash receipts and $133,800 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000. The preliminary cash balance at the end of August before any loan activity is:
Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $193,800 per year. The company plans to sell 21,600 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $91,800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.40 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $91,800?
Answer:
1. $23.80
2. Break even Point (units) = 19,000 units and Break even Point (dollars) = $646,000
3. Unit sales to attain a target profit = 28,000 units and Dollar sales to attain a target profit = $952,000
4. Break even Point (units) = 28,500 units, Break even Point (dollars) = $969,000 and Dollar sales to attain a target profit = $1,428,000.
Explanation:
Variable Cost % = 100% - 30%
= 70%
Thus, variable expenses per unit = $34.00 × 70%
= $23.80
Break even Point is the level of activity where a firm makes neither a profit nor a loss.
Break even Point (units) = Fixed Cost / Contribution per unit
= $193,800 / ($34.00 ×30%)
= $193,800 / $10.20
= 19,000 units
Break even Point (dollars) = Fixed Cost / CM Ratio
= $193,800 / 0.30
= $646,000
Unit sales to attain a target profit = (Fixed Cost + Target Profit) / Contribution per unit
= ($193,800 + $91,800) / $10.20
= 28,000
Dollar sales to attain a target profit = (Fixed Cost + Target Profit) / CM Ratio
= ($193,800 + $91,800) / 0.30
= $952,000
When variable expenses reduce by $3.40 per unit.
Break even Point (units) = Fixed Cost / Contribution per unit
= $193,800 / ($34.00 - $23.80 - $3.40 )
= $193,800 / $6.80
= 28,500 units
Break even Point (dollars) = Fixed Cost / CM Ratio
= $193,800 / ($6.80/ $34.00)
= $969,000
Dollar sales to attain a target profit = (Fixed Cost + Target Profit) / CM Ratio
= ($193,800 + $91,800) / 0.20
= $1,428,000
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.
June 12, 2021, Provide services to customers on account for $33,800
September 17, 2021, Receive $19,000 from customers on account
December 31, 2021, Estimate that 40% of accounts receivable at the end of the year will not be received.
March 4, 2022, Provide services to customers on account for $48,800
May 20, 2022, Receive $10,000 from customers for services provided in 2021.
July 2, 2022, Write off the remaining amounts owed from services provided in 2021
October 19, 2022, Receive $39,000 from customers for services provided in 2022.
December 31, 2022, Estimate that 40% of accounts receivable at the end of the year will not be received.
Calculate net accounts receivable at the end of 2021 and 2022.
2021 2021
Total accounts receivable
Less: Allowance for uncollectible acounts
Net accounts receivable
Answer:
The Underwood Corporation
Calculation of the net accounts receivable at the end of 2021 and 2022:
2021 2021
Total accounts receivable $14,800 $9,800
Less: Allowance for uncollectible accounts 5,920 3,920
Net accounts receivable $8,880 $5,880
Explanation:
a) Accounts Receivable:
June 12, 2021: Service Revenue $33,800
Sept. 17, 2021: Cash receipts (19,000)
Dec. 31, 2021: Balance $14,800
March 4, 2022: Service revenue 48,800
May 20, 2022: Cash receipts (10,000)
July 2, 2022: Allowance for (4,800)
Oct. 19, 2022: Cash receipts (39,000)
Dec. 31, 2022: Balance $9,800
b) Allowance for uncollectible accounts:
Dec. 31, 2021: Bad Debts Expense $5,920
July 2, 2022: Accounts Receivable (4,800)
Dec. 31, 2022: Bad Debts Expense 2,800
Dec. 31, 2022: Balance $3,920
c) The allowance for doubtful accounts for The Underworld Corporation for 2022 will record a bad debts expense of $2,800, which represents the adjusting difference between the beginning balance of $5,920, the accounts receivable written off, and the ending balance of $3,920.
A regression analysis was performed to determine the relationship between the costs of a product (y), the time to make the product (x1 ), the number of different materials used (x2), and the amount spent on marketing the product (x3). The estimated regression equation is . What is the estimated cost if the time to make the product is 5 hours, the number of different materials used is 4, and the amount spent on marketing is $100? a. 83 b. 205.4 c. 213 d. 185.4
Answer: d. 185.4
Explanation:
x1 = The time to make the product which is 5 hours
x2 = the number of different materials used which is 4
x3 = the amount spent on marketing the product which is $100
The Regression equation is given as;
y = [tex]83 - 2x_{1} + 0.6x_{2} + 1.1x_{3}[/tex]
Cost = 83 - 2(5) + 0.6(4) + 1.1 (100)
Cost = 83 - 10 + 2.4 + 110
Cost = 185.4
Some companies resort to questionable means to enforce computer use policies. They use surveillance software to monitor employees' IT use. Every activity on the employee's computer is simultaneously tracked and recorded. Everything that the employee sees on their monitor can also be seen on the monitor of the person tracking them. The same software is used to monitor children's online activities and monitor spouses suspected on infidelity. Should employees be treated as undisciplined children of cheating spouses
Answer:
Its appropriate because the company monitors its employee's use of IT system during office time not their personal devices.
Explanation:
If the company is monitoring closely its own IT systems then it is appropriate as the company is keen in increasing the employee productivity during office time. This is also appropriate if the employee is told about the close monitoring because he will not access his personal things which includes payments of utilities and other item using online banking. So this is appropriate as it is not meant to harm the employee and is part of improving employee performance.
The desired reserve ratio is 3 percent. Robert deposits $3,000 in Bank America. Bank America keeps its minimum desired reserves and lends the excess to Fredrica. How much does Bank America lend to Fredrica?
Answer: $2,910
Explanation:
Bank America is required by law to keep 3% of all deposits as reserves and they can lend the rest which they did to Fredrica.
The amount they lent to Fredrica therefore is;
= 3,000 (1 - 3%)
= 3,000 * 97%
= $2,910
Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.)
A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit 80 1,000 2,088
Total fixed costs 73,200 660,000 3,758,400
Target profit 266,760 3,000,000 3,132,000
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to break even
Required sales dollars to break even
Required units to achieve target profit
Answer:
Contribution margin per unit
A = $120
B = $3,000
C = $3,132
Contribution margin ratio
A = 60%
B = 75%
C = 60%
Units to break even
A = 610 units
B = 220 units
C = 1,200 units
Sales dollars to break even
A = $122,000
B = $880,000
C = $6,264,000
Units to achieve target profit
A = 2,833 units
B = 1220 units
C = 2,200 units
Explanation:
Contribution margin per unit
Contribution margin = Sales - Variable Costs
A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit ($80) ($1,000) ($2,088)
Contribution Margin $120 $3,000 $3,132
Contribution margin ratio
Contribution margin ratio = Contribution / Sales × 100
A = $120 / $200 × 100
= 60%
B = $3,000 / $4,000 × 100
= 75%
C = $3,132 / $5,220 × 100
= 60%
Units to break even
Units to break even = Fixed Cost ÷ Contribution margin per unit
A = $73,200 ÷ $120
= 610 units
B = $660,000 ÷ $3,000
= 220 units
C = $3,758,400 ÷ $3,132
= 1,200 units
Sales dollars to break even
Units to break even = Fixed Cost ÷ Contribution margin ratio
A = $73,200 ÷ 60%
= $122,000
B = $660,000 ÷ 75%
= $880,000
C = $3,758,400 ÷ 60%
= $6,264,000
Units to achieve target profit
Units to achieve target profit = Fixed Cost + Target Profit ÷ Contribution margin per unit
A = $73,200 + 266,760 ÷ $120
= 2,833 units
B = $660,000 + 3,000,000 ÷ $3,000
= 1220 units
C = $3,758,400 + 3,132,000 ÷ $3,132
= 2,200 units
Crystal Apple Sales Company began 2014 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500 of common stock, and $3,100 of retained earnings. The following events occurred during 2014.
1. Crystal Apple purchased additional inventory twice during 2018. The first purchase consisted of 800 apples that cost $20 each, and the second consisted of 1,200 apples that cost $24 each. The purchases were on account.
2. The company sold 2,040 apples for cash at a selling price of $40 each.
3. The company paid $44,800 cash on accounts payable for inventory purchases.
4. Crystal Apple paid $26,000 cash for operating expenses.
5. Assume an income tax rate of 30 percent. Crystal Apple paid income tax expense in cash.
Required:
a. Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.
b. Prepare an income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions.
Answer and Explanation:
a. The computation of ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average is shown below:-
Cost of goods sold = (200 × $18) + (800 × $20) + (1,040 × (2,040-200-800)
= (200 × $18) + (800 × $20) + (1,040 × $24)
= $3,600 + $16,000 + $24,960
= $44,560
Ending Inventory Under FIFO = (1,200 - 1,040) × (2,040-200-800)
= 160 × $24
= $3,840
Under LIFO method
Cost of goods sold is
= (1,200 × $24) + (800 × $20) + (40 × $18)
= $28,800 + $16,000 + $720
= $45,520
Ending Inventory Under LIFO is
= (200 - 40) × $18
= 160 × $18
= $2,880
Weighted Average cost flow Assumption
Weighted Average cost per apple = Cost of Beginning inventory and purchase ÷ Total apple available
Cost of Beginning inventory and purchases is
= (200 × $18) + (800 × $20) + (1,200 × $24)
= $3,600 + $16,000 + $28,800
= $48,400
Total apples available is
= 200 + 800 + 1,200
= 2,200
Weighted Average cost per apple is
= $48,400 ÷ 2,200
= $22
Cost of goods sold is
= 2,040 × $22
= $44,880
Ending Inventory is
= 160 × $22
= $3,520
b. The Preparation of income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions is prepared below:-
Income Statement Amount
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($44,560)
Gross Profit $37,040
Less: Operating Expenses ($26,000)
Income before income taxes $11,040
Less: Income tax (30% × $11,280) ($3,312)
Net Income $7,728
Balance Sheet
Assets
Cash $9,488
Inventory $3,840
Total Assets $13,328
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,828
Total Liabilities and Equity $13,328
Working note
cash = (opening + Sales - Purchases - Operating expenses - Income tax expenses )
= $2,000 + $81,600 - $44,800 - $26,000 - $3,312
= $9,488
Retained earning = (Opening + Net Income)
= $3,100 + $7,728
= $10,828
Statement of Cash Flow
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,312)
Net Increase in cash and
cash equivalents $7,488
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and cash equivalents $9,488
LIFO cost flow Assumption
Income Statement
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($45,520)
Gross Profit $36,080
Less: Operating Expenses ($26,000)
Income before income taxes $10,080
Less: Income tax (30% × $10,080) ($3,024)
Net Income $7,056
Balance Sheet
Assets
Cash $9,776
Inventory $2,880
Total Assets $12,656
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,156
Total Liabilities and Equity $12,656
Working note:-
Cash = (opening + Sales - Purchases payment - Operating expenses -Income tax expenses)
= $2,000 + $81,600 - $44,800 - $26,000 - $3,024
= $9,776
Retained earning = (Opening + Net Income)
= $3,100 + $7,056
= $10,156
Statement of Cash Flows
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,024)
Net Increase in cash and
cash equivalents $7,776
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and cash equivalents $9,776
Weighted Average cost flow Assumption
Income Statement
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($44,880)
Gross Profit $36,720
Less: Operating Expenses ($26,000)
Income before income taxes $10,720
Less: Income tax (30% × $10,720) ($3,216)
Net Income $7,504
Balance Sheet
Assets
Cash $9,584
Inventory $3,520
Total Assets $13,104
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,604
Total Liabilities and Equity $13,104
Working note
Cash = opening + Sales - Purchases payment - Operating expenses - Income tax expenses )
= $2,000 + $81,600 - $44,800 - $26,000 - $3,126
= $9,584
Retained earning = (Opening + Net Income)
= $3,100 + $7,504
= $10,604
Statement of Cash Flows
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,216)
Net Increase in cash and
cash equivalents $7,584
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and
cash equivalents $9,584
Future deductible amounts would be caused by Select one: a. Estimated Expenses and Prepaid Expenses b. Estimated Expenses, but not Prepaid Expenses c. Prepaid Expenses, but not Estimated Expenses d. Neither Estimated Expenses nor Prepaid Expenses
Answer:
The correct answer is:
Estimated Expenses, but not Prepaid Expenses (b.)
Explanation:
An estimated expense is a forecast of the amount of costs that will be incurred in future, to fulfil a transaction. An example might be an amount forecasted to cover a warranty cost for a purchased product under warranty in case a fault develops. Estimated expenses are not debited at the time of projection, but at a certain time in the future, hence they are called Future deductible amounts. On the other hand, Prepaid Expense is a type of expenditure that has not been recorded yet by a company as an expense, but the amount has been paid in advance for the good or service, even though the product has not been consumed at the time of payment.
Under the constant-money-growth-rate rule, the annual money supply will be constant at the average annual growth rate of:________.
Answer:
real GDP
Explanation:
The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.
According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.
Danaher Woodworking Corporation produces fine furniture. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead $ 36,400 Capacity of the lathe 400 hours Actual results: Actual total fixed manufacturing overhead $ 36,400 Actual hours of lathe use 380 hours Required: a. Calculate the predetermined overhead rate based on capacity. b. Calculate the manufacturing overhead applied. c. Calculate the cost of unused capacity.
Answer:
a. Calculate the predetermined overhead rate based on capacity.
$91 per lathe hourb. Calculate the manufacturing overhead applied.
$34,580c. Calculate the cost of unused capacity.
$1,820Explanation:
Estimated total fixed manufacturing overhead $36,400
Capacity of the lathe 400 hours
predetermined overhead rate per lathe hour = $36,400 / 400 = $91
actual results:
Actual total fixed manufacturing overhead $36,400
Actual hours of lathe use 380 hours
applied overhead = $91 x 380 lathe hours = $34,580
cost of unused capacity = $36,400 - $34,580 = $1,820
Based on the HEADLINE article titled "Inflation and the Weimar Republic," which of the following is the best illustration of the wealth effect of inflation?
a. Workers were often paid daily and sometimes two or three times a day.
b. Debtors sought out creditors to pay them in valueless currency.
c. Profits fell as employees demanded frequent wage adjustments.
d. Businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
Answer: Businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
Explanation:
Inflation is when there is a general increase in the prices of goods and services on the economy.
The best illustration of the wealth effect of inflation based on the article titled "Inflation and the Weimar Republic," is that businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
This is because when there is inflation, theee will be rise in price and hence, the money the businessmen wanted to use won't be enough to get meet their needs hence they'll need more funds.
Pell Corporation is a company that manufactures computers. Assume that Pell: allocates manufacturing overhead based on machine hours estimated 9,000 machine hours and $ 90, 000 of manufacturing overhead costs actually used 15,000 machine hours and incurred the following actual costs: (click the icon to view the actual costs.) The company allocated manufacturing overhead of $150, 000 using a predetermined overhead rate of $ 10.00 per machine hour. The total actual manufacturing overhead costs are $84. What entry would Pell make to adjust the manufacturing overhead account for overallocated or underallocated overload?
Answer:
Adjusting entry is given below
Explanation:
DATA
Estimated Overhead = $150,000
Actual Overhead = $84,000
Under/Over allocated =?
Solution
Under/Over allocated Overhead = Estimated Overhead - Actual Overhead
Under/Over allocated Overhead = $150,000 - $84,000
Under/Over allocated Overhead = $66,000
We had over-allocated manufacturing overhead with $66,000
To adjust manufacturing Overhead account we should make the following entry
Entry DEBIT CREDIT
Manufacturing Overhead $66,000
Cost of goods sold $66,000
Principal-principal conflicts occur within one class of principals, such as a disagreement among certain majority stockholders and other majority stockholders.
a. True
b. False
Answer: False
Explanation:
The principal to principal conflict typically exists between the two main categories of shareholders, which are the controlling shareholders and the second one which is the minority shareholders
Therefore, the analysis in the question that the principal-principal conflicts occur within one class of principals, such as a disagreement among certain majority stockholders and other majority stockholders is not true.
Baxter Company produces Frisbees using a threeminusstep sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated Manufacturing Overhead?
The options are:
A) When the Frisbees are in WIP InventoryWIP Inventory-Molding
B) When the Frisbees are in WIP InventoryWIP Inventory-Finishing
C) When the Frisbees are in WIP InventoryWIP Inventory-Coloring
D) All of the above
Answer:
D) All of the above
Explanation:
Manufacturing overhead is defined as all manufacturing cost incurred in producing a good that cannot be traced directly to the product in an economically feasible way.
For example processes in Work In Process stage of manufacturing such as labour and utility expenses are manufacturing overhead costs. Work in process is the manufacturing stage where goods are converted from raw goods to partially finished goods.
So all the options given which are on the WIP are correct.
The price level increases. The short-run aggregate supply curve will Choose one: A. shift to the right. B. shift to the left. C. remain unchanged.
Answer:
Option C, remain unchanged, is the right answer.
Explanation:
Option C is correct because the increase in the price level will result in the movement along with the given supply curve but in the question, option A says shifts to the right and in option B it says the shift to the left. Therefore these options are wrong. However, the supply curve remains the same because due to an increase in the price level the supply curve does not shift. Therefore option C will be the right option.
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 675,000 $ 450,000 $ 225,000 Variable expenses 405,000 315,000 90,000 Contribution margin 270,000 135,000 135,000 Traceable fixed expenses 150,000 75,000 75,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 65,000 Net operating income $ 55,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
Answer:
Piedmont Company
1. Computation of the Companywide break-even point:
Break-even point = Fixed Cost/Contribution per margin
= $215,000/$27 = 7,963 units
2. Computation of the break-even point in dollar sales for the North region:
Break-even point in dollar sales = Fixed Costs/Contribution margin percentage
= $107,500/30% = $358,333
3. Computation of the break-even point in dollar sales for the South region:
= $107,500/60% = $179,1667
Explanation:
a) Data
Piedmont Company Contribution format segmented income statement as shown:
Total Company North South
Sales $ 675,000 $ 450,000 $ 225,000
Variable expenses 405,000 315,000 90,000
Contribution margin 270,000 135,000 135,000
Traceable fixed expenses 150,000 75,000 75,000
Segment margin 120,000 $ 60,000 $ 60,000
Common fixed expenses 65,000 32,500 32,500
Net operating income $ 55,000 $27,500 $27,500
NB: The common fixed expenses must be shared in some way to calculate the break-even points.
b) Total fixed costs:
Company-wide = $215,000 ($150,000 + 65,000)
North = $107,500 ($75,000 + 32,500)
South = $107,500 ($75,000 + 32,500)
c) We assume that the sales unit of 5,000 each for the two regions. Total units = 10,000
d) Contribution per margin:
Company-wide = $270,000/10,000 = $27
North = $135,000/5,000 = $27
South = $135,000/5,000 = $27
e) Contribution margin percentage:
= Contribution/Sales x 100
Company-wide = $270,000/$675,000 x 100 = 40%
North = $135,000/$450,000 x 100 = 30%
South = $135,000/$225,000 x 100 = 60%
f) The break-even point is the quantity of sales that must be achieved for the fixed costs to be fully covered and no profit or loss is recorded. It is the point at which fixed costs are equal to the contribution. The contribution is the difference between the sales value and the variable costs.
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 80,000 $25,100,000 92,000 27,206,000 120,000 32,120,000 a. Determine the variable cost per unit a
Answer:
Variable cost per unit= $175.5
Explanation:
Giving the following information:
Units Produced Total Costs
80,000 $25,100,000
92,000 $27,206,000
120,000 $32,120,000
To calculate the variable cost per unit under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (32,120,000 - 25,100,000) / (120,000 - 80,000)
Variable cost per unit= 7,020,000 / 40,000
Variable cost per unit= $175.5
Craigmont Company's direct materials costs are $4,900,000, its direct labor costs total $8,710,000, and its factory overhead costs total $6,710,000. Its conversion costs total:
Answer:
Conversion costs= $15,420,000
Explanation:
Giving the following information:
Direct material= $4,900,000
Direct labor costs= $8,710,000
Factory overhead costs= $6,710,000
The conversion costs are the sum of the direct labor and factory overhead.
Conversion costs= 8,710,000 + 6,710,000
Conversion costs= $15,420,000
Integrated Potato Chips just paid a $2.7 per share dividend. You expect the dividend to grow steadily at a rate of 6% per year.
Required:
a. What is the expected dividend in each of the next 3 years?
b. If the discount rate for the stock is 12%, at what price will the stock sell today?
c. What is the expected stock price 3 years from now?
Answer:
a.
D1 = $2.862 rounded off to $2.86
D2 = $3.03372 rounded off to $3.03
D3 = $3.2157432 rounded off to $3.22
b.
Price today is $47.7
c.
3 years from now the price will be $56.81
Explanation:
a.
The dividend growth is expected to be constant forever. Thus, the dividend for such a stock will be calculated as follows,
Dn = D0 * (1+g)^n
Where,
D0 is the most recently paid dividendg is the constant growth raten is the number of periods/yearsD1 = 2.7 * (1+0.06)^1 = $2.862 rounded off to $2.86
D2 = 2.7 * (1+0.06)^2 = $3.03372 rounded off to $3.03
D3 = 2.7 * (1+0.06)^3 = $3.2157432 rounded off to $3.22
b.
The constant growth model of DDM will be used to calculate the price of the stock today. The formula for the stock price today under this model is,
P0 = D1 / (r - g)
Where,
r is the required rate of return or discount rateP0 = 2.862 / (0.12 - 0.06)
P0 = $47.7
c.
To calculate the price of the stock 3 years from now, we will use the constant growth model. However, instead of using D1, we will use D4 to calculate the P3 or price 3 years from now.
P3 = 2.7 * (1+0.06)^4 / (0.12 - 0.06)
P3 = $56.81
Consider a fast food café of your choice. Apply 4 V’s of Operation. Describe each V as ‘High’, ‘Low’ or ‘Moderate’ with one liner reason.\
Answer:
The classification of the particular question is outlined in the following segment including its clarification.
Explanation:
For both the data analysis, the "Jack throughout the Box" Fast foodservice Business throughout Florida, the US should be regarded. The 4Vs including its cafe's business seem to be about the volume, variety, differences, as well as accessibility including its brand operational activities. The 4V high meaning is large, small to medium-sized in terminology.
Volume: The amount including its corporation that has made the drinks sector profitable in designed to offer the sector people good of profits. In such a product, the need for another quantity is strong regarding the market pricing and therefore profits.Variety: Again for F and B platforms the range of foods the company has seems to be of significant importance. Taking into consideration the need for other sales on either the road carrier as well as selecting the enterprise must have ample choices in their beverages.Variation: Variations throughout the numerous perspectives including its deal in the reduced variety establishments need modifications that fit the Florida information of the product. For a company like Jack throughout the Box, this varying want is medium through business objectives.Visibility: The visibility of something like the company for something like the coffee shop on the roadside that is created to give the company's productivity. The prominence including its company is important for its somewhat cafe, which then in terms of improvement is taken into consideration to have been medium."In order to be classified as a _______________, a firm must be owned by the people who run it on a day-to-day basis and cannot have publicly issued stock."
Answer:
private company
Explanation:
a private company is a company whose shares are not sold publicly - they are not traded on the public stock exchange. they also owned by the people who run them and not by managers.
Private firms are not bound by the Securities and Exchange Commission's (SEC) filing requirement.
Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to
Answer:
$53,700
Explanation:
Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced
=($5.20 + $3.75) * 6,000 units
=$8.95 * 6,000
=$53,700
The total amount of direct manufacturing cost incurred is closest to $53,700
you are planning t save for retirement over the next 30 years. To do this, you will invest $850 per month in a stock account and $350 per month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account assuming a 25 year withdrawal period? stock account value retirement
Answer:
$13,287.70
Explanation:
The computation of the amount at withdrawal is to be determined by using the excel spreadsheet in which we applied the formulas like future value, PMT
Given that
Time period = 30 years
Withdrawal period = 25 years
Invested amount in stock account = $850
Invested amount in bond account = $350
Return on stock = 10%
Return on bond = 6%
Based on the above information
The withdrawal amount os $13,287.70
Assume ExxonMobil's price dropped to $35 overnight. Given the dividend growth rate of ExxonMobil of 8.00% and the last annual dividend of $1.70, what is the implied required rate of return necessary to justify the new lower market price of $ 35? What is the implied required rate of return necessary to justify the new lower market price of $ 35?
Answer:
Re = 13.26%
Explanation:
we can use the dividend growth model:
P₀ = Div₁ / (Re - g)
P₀ = $35Div₁ = $1.70 x 1.08 = $1.836g = 8%Re = cost of equity or required rate of return = ?$35 = $1.836 / (Re - 0.08)
Re - 0.08 = $1.836 / $35 = 0.0526
Re = 0.0526 + 0.08 = 0.1326 = 13.26%
Businesses adopt and identify target markets for their products to: a. maximize the impact of the cost of marketing. b. coerce people into buying products they do not need. c. adopt consumer-friendly pricing strategies such as price skimming for new products. d. collect information from the external marketing environment.
Answer: maximize the impact of the cost of marketing
Explanation:
The target market is a particular group of consumers that the advertisement of a product or service is typically aimed at.
Businesses adopt and identify target markets for their products to maximize the impact of the cost of marketing. When the target market for a product or service has been known by a company, the business can find the most efficient and effective strategy to advertise their product. This will help in the minimization of cost of marketing.
In a duopoly game we observe the following payouts: if the two firms collude they will each earn $50,000. If one firm cheats then he earns $60,000 and the other firm earns -$10,000. If both firms cheat then they each earn zero economic profit. In this game what is the Nash equilibrium?
Answer:
the Nash equilibrium for both players is to collude
Explanation:
A duopoly is when there are two firms operating in an industry.
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
the Nash equilibrium for both players is to collude because it is the best outcome for both players. if, a player cheats, there is a chance that the other player would cheat and both firms would end up earning a zero economic profit
Based on the various payoffs to be made, the Nash Equilibrium for this game would be that both firms should collude.
The Nash Equilibrium is the outcome that would be most beneficial for both firms to stay in. If either of them leave, they would incur losses.
If both firms decide to collude and one cheats, the other firm would cheat as well to avoid making a loss which would lead to both of them making zero economic profit.
Both firms will therefore collude so as to make $50,000 a piece.
In conclusion, the Nash Equilibrium is collusion between the two firms.
Find out more at https://brainly.com/question/7141724.
Journalize the following transactions assuming a perpetual inventory system:
May 5
Purchased merchandise from Archie Co., $6,000, terms FOB shipping point, 2/10, n/30.
Prepaid freight costs of $100 were added to the invoice.
May 12
Issued a debit memo to Archie Co. for $2,500 of merchandise returned from purchase on May 5.
May 14
Paid Archie Co. for invoice of May 5, less debit memo of May 12.
Answer:
May 5
Merchandise Inventory $6,000 (debit)
Freight Charges $100 (debit)
Accounts Payable : Archie Co. $6,000 (credit)
Cash $100 (credit)
May 12
Accounts Payable : Archie Co. $2,500 (debit)
Merchandise Inventory $2,500 (credit))
May 14
Accounts Payable : Archie Co. $3,500 (debit)
Discount Received $70 (credit)
Cash $3,430 (credit)
Explanation:
May 5
Recognize the Assets of Merchandise and a Liability : Accounts Payable : Archie Co. as a result of purchase.
Also Recognize the Freight Expenses since this is a F.O.B delivery
May 12
De-recognize the Liability : Accounts Payable - Archie Co. and the Merchandise Inventory asset to the extend of Merchandise returned to Archie Co.
May 14
De-recognize the Liability : Accounts Payable : Archie Co. of $3,500 and the Cash assets to the extend of Payment made to Archie Co less cash discount of $3,430 .