Answer:
$2 million or $2,000,000
Explanation:
The computation of the revenue and gross profit or loss will appear in the company’s income statement in the first year is shown below:
= revenue recognized - cost incurred
The Total cost is
= $6 + $9
= $15
And, the revenue recognized is
= $6 ÷ $15 × $20
= $8
So, the gross profit is
= $8 - $6
= $2
hence, the gross profit is $2 million
On October 1, 2020, Jackson Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Jackson's management along with its counsel have concluded that it is probable that Jackson will be responsible for damages, and a reasonable estimate of these damages is $5,000,000. Jackson's insurance policy of $9,000,000 has a deductible clause of $500,000. How should Jackson Chemical report this information in its financial statements at December 31, 2020
Answer:
Jackson Chemical should report the $5,000,000 loss because we don't know if the insurance will actually pay out the policy.
Explanation:
Jackson chemical has to report $500,000 loss associated with the deductible would be accrued as liability in the company's financial statements at Dec 31, 2020 since it is probably that Jackson will be responsible for the damages.
$500,000 is the amount of the insurance policy's deductible Jackson will have to pay to receive the policy's benefits, which will cover the reasonably estimated damages.
Heels, a shoe manufacturer, is evaluating the costs and benefits of new equipment that would custom fit each pair of athletic shoes. The customer would have his or her foot scanned by digital computer equipment; this information would be used to cut the raw materials to provide the customer a perfect fit. The new equipment costs $107,000 and is expected to generate an additional $43,000 in cash flows for five years. A bank will make a $107,000 loan to the company at a 15% interest rate for this equipment’s purchase. Compute the recovery time for both the payback period and break-even time. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Chart Values are Based on:
10%
Cumulative Cash Inflow Present Value of Inflow Year Present Value PV Factor (Outflow) (Outflow)
(91,000) x 1.0000- (91,000) $ (91,000) 36,000 x 36,000 x 2.5 years
Answer:
Payback period = 2.49 years
Break-even time = 3.36 years
Explanation:
a. Calculation of payback period
The payback period can be described as the amount of time it will take a firm recover its cost on a project or an investment.
The payback period can be calculated as follows:
Equipment cost = $107,000
Annual cash flow = $43,000
Payback period = Equipment cost / Annual cash flow = $107,000 / $43,000 = 2.49 years
b. Calculation of break-even time
Note: See the attached excel file for the computation of the cumulative present value of inflow (outflow).
In the attached excel, the present value (PV) factor is calculated using the following formula:
PV factor = 1/(1 + r)^n ............................... (1)
Where;
r = interest rate = 15%
n = a particular year from 1 to 5.
Break even time can be described as the amount of time that is needed for both the discounted cash flows and the initial cost of a project to be equal.
The break-even time is calculated using the following formula:
Break-even time = X + (Y / Z) .................... (2)
X = Last year with a negative cumulative cash flow = 3
Y = Absolute value of cumulative cash flow at the end of period X = $8,821.32
Z = Present value of cash inflow for the period following X = $24,585.39
Break-even time = 3 + ($8,821.32 / $24,585.39) = 3 + 0.36 = 3.36 years
Products should be specified by brand because: a. price levels of brand items are low b. the number of potential suppliers is restricted c. it is difficult to develop accurate specifications for an item d. all of the above e. a and b above.
Answer:
C. It is difficult to develop accurate specifications for an item.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
Generally, these products are manufactured and distributed through different marketing channels to various wholesalers or retailers before it gets to the consumers or customers.
Hence, each product should be distinguished from another through its brand name in order to enhance easier identification by the customers.
Products should be specified by brand because it is difficult to develop accurate specifications for an item. Thus, when a supplier such as a retailer or wholesaler wishes to place an order to a manufacturer, he or she should specify the order by brand.
Jefferson Corp. decided to change its inventory valuation method from first in, first out (FIFO) to last in, first out (LIFO) in a period of rising prices. What was the result of the change for the ending inventory and net income?
a. Increases
b. Decreases
Answer:
decreases
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold
In a period of rising prices, changing from FIFO to LIFO means that the latest purchased goods would be of higher prices than the older goods. This would increase cost of goods sold and reduce net income.
Also, ending inventory would consist of older goods purchased at lower prices
Both net income and ending inventory would decrease
Imagine that to preserve the traditional way of life in small fishing villages, a government decides to impose a price floor that will guarantee all fishermen a certain price for their catch.
Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied.
With the enactment of this price floor for fish, what are some of the likely unintended consequences in the market?
Suggest some policies other than the price floor to make it possible for small fishing villages to continue.
Answer:
As a result of the price floor, price would increase. As a result, quantity demanded will decrease and the quantity supplied would increase.
Supply would exceed demand and as a result there would be an excess supply of fish.
As an alternative to the price floor, the government can subsidise the cost of fishing. This would reduce the cost of producing fish
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Juan owned 400 shares of Circle Corporation stock (adjusted basis of $102,000). He sold 200 shares for $40,800. Twenty days later he purchased 200 shares of the same stock for $30,600.
Required:
a. What is Juan's realized and recognized loss?
b. What is his basis in the newly acquired shares?
Answer:
a. -$10,200
b. $40,800
Explanation:
The computation of realized loss is shown below:-
Realized loss = Sales price - Adjusted basis
= $40,800 - ($102,000 × 200 ÷ 400)
= $40,800 - $51,000
= -$10,200
b. The computation of newly acquired shares is shown below:-
Basis for new acquired stock = Purchase price + Disallowed loss
= $30,600 + $10,200
= $40,800
We simply applied the above formula
The sticky-price theory of the short-run aggregate supply curve says that if the price level rises by 5% while firms were expecting it to rise by 2%, then some firms with high menu costs will have:________.
Answer:
to keep their prices the same
Explanation:
Remember, having a higher Menu cost implies that such a firm would suffer more if it adjusted its prices.
So the sticky-price theory makes the assumption that a firm that notices an increase in the prices of their products would keep their prices low out of fear that doing so would result in losses for the firm if demand changes negatively.
Pauley Company needs to determine a markup for a new product. Pauley expects to sell 22,000 units and wants a target profit of $16 per unit. Additional information is as follows: Variable product cost per unit $ 18 Variable administrative cost per unit 13 Total fixed overhead 20,500 Total fixed administrative 36,700 Using the variable cost method, what markup percentage to variable cost should be used
Answer:
variable markup % = 60%
Explanation:
total units sold 22,000
total costs associated with selling the 22,000 units:
variable production costs $18 x 22,000 = $396,000
variable S&A costs $13 x 22,000 = $286,000
fixed overhead = $20,500
fixed S&A = $36,700
total costs = $739,200
total cost per unit = $33.60
selling price = $33.60 + $16 = $49.60
markup percentage = [(sales price - unit cost) / unit cost] x 100
the total markup % = [49.60 - 33.60) / 33.60] x 100 = 47.62%
but since we are going to calculate the markup percentage solely based on variable costs, then:
variable cost per unit = $31
selling price = $49.60
the variable markup % = [49.60 - 31) / 31] x 100 = 60%
Follows a summary of Gold Corp.'s cash flows ($ in millions) for the year ended Dec. 31, 2020: Cash received from: Customers $ 3,150 Interest on investments 290 Sale of land 190 Sale of Rowdy's common stock 780 Issuance of debt securities 2,900 Cash paid for: Interest on debt $ 390 Income tax 170 Debt principal reduction 2,400 Purchase of equipment 5,800 Purchase of inventory 1,900 Dividends on common stock 470 Operating expenses 680 Gold Corp would report net cash inflows (outflows) from investing activities for the period of:
Answer:
Only two of the listed activities classify as investing activities. The cash flow form investing activities = cash received form the sale of land + cash paid for the purchase of equipment = $190 - $5,800 = -$5,610
Explanation:
Customers $ 3,150 ⇒ operating activity
Interest on investments 290 ⇒ operating activity
Sale of land 190 ⇒ investing activity
Sale of Rowdy's common stock 780 ⇒ financing activity
Issuance of debt securities 2,900 ⇒ financing activity
Interest on debt $ 390 ⇒ operating activity
Income tax 170 ⇒ operating activity
Debt principal reduction 2,400 ⇒ financing activity
Purchase of equipment 5,800 ⇒ investing activity
Purchase of inventory 1,900 ⇒ operating activity
Dividends on common stock 470 ⇒ financing activity
Operating expenses 680 ⇒ operating activity
A state savings bond can be converted to $100 at maturity six years from purchase. If the state bonds pay 8% annual interest (compounded annually), at what price must the state sell its bonds
Answer:
The state must sell its bonds at the price of $63.02.
Explanation:
The at which the state must sell its bond can be calculated using the present value (PV) as follows:
PV = FV / (1 + r)^n ......................... (1)
Where;
PV = Present value or the price at which the state must sell its bond = ?
FV = Future value of the bond or the value the state savings bond can be converted to at maturity = $100
r = Annual interest rate = 8%, or 0.08
n = number of years = 6
Substituting the values into equation (1), we have:
PV = $100 / (1 + 0.08)^6
PV = $100 / (1.08)^6
PV = $100 / 1.586874322944
PV = $63.02
Therefore, the state must sell its bonds at the price of $63.02.
Bronski Corporation manufactures two products, Simple and Complex. The following information was gathered: Simple Complex Selling price per unit $37.00 $26.00 Variable cost per unit $32.00 $22.00 Total fixed costs are $18,000. Assume demand for either product exceeds the factory's capacity. It takes one hour of production time to make Simple and two hours to make Complex. The annual capacity of the plant is 10,000 hours. How many units of Simple and Complex should Bronski Corporation produce and sell to maximize profits
Answer:
The answer is "Option A".
Explanation:
Please find the correct question and its solution file.
true or false. a factor that can come between the purchase intention and purchase decision is the attitude of others g
Answer:
True
Explanation:
Before a consumer makes a decision to buy a product, several factors can affect him. Two distinct factors are the attitude of others and unexpected situational factors. When the customer notices that a lot of people around him have a negative disposition or opinion about a product, they are likely to be discouraged from buying that product.
This is even more likely to happen if the consumer lacks enough motivation to buy that product. So the attitude of others can affect the buyer's intention which is his motivation and the final decision to purchase that product.
A lot of factors can come between purchase intensions. A factor that can come between the purchase intention and purchase decision is the attitude of others is a true statement.
The more positive a person's attitude toward the a product, the greater their purchase intentions.
Another factor consider is perceived playfulness that also affects purchase intention positively.
The factors that affect a consumer's purchase intention can be said to be product perception, shopping experience, customer service etc.
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Reporting Net Sales after Sales Discounts and Sales Returns [LO 6-4]
The following transactions were selected from among those completed by Bear’s Retail Store:
Nov. 20 Sold two items of merchandise to Cheryl Jahn, who paid the $400 (total)
sales price in cash. The goods cost Bear’s $300.
25 Sold 20 items of merchandise to Vasko Athletics at a selling price of
$4,000 (total); terms 3/10, n/30. The goods cost Bear’s $2,500.
28 Sold 10 identical items of merchandise to Nancy’s Gym at a selling price
of $6,000 (total); terms 3/10, n/30. The goods cost Bear’s $4,000.
29 Nancy’s Gym returned one of the items purchased on the 28th. The item
was in perfect condition and credit was given to the customer.
Dec. 6 Nancy’s Gym paid the account balance in full.
30 Vasko Athletics paid in full for the invoice of November 25.
Required:
Compute the net sales revenue to be reported over the two months.
Answer:
$9,638
Explanation:
Computation for the net sales revenue to be reported over the two months.
Net Sales
Date Particulars Amount
Nov. 20 Sales $ 400
Nov. 25 Sales $ 4,000
Nov. 28 Sales $ 6,000
Nov. 29 Sales Returns $ (600)
(1/10 units *6,000)
Dec. 6 Sales Discount $ (162) [(6,000-600)*3/100]
Net sales $ 9,638
Therefore the net sales revenue to be reported over the two months will be $9,638
Answer:
$9,638
Explanation:
Computation for the net sales revenue to be reported over the two months.
Explanation:
If Joel earns a 7 percent after-tax rate of return, $27,000 received in two years is worth how much today
Answer: $23571
Explanation:
For this question, we have to calculate the present value of $27,000 with the given rate and the time that have already been given in the question to know the worth tiday. This will then be:
= $27,000 x PVIF (7%, 2)
= $27,000 x 0.873
= $23,571
Dean exchanges a business storage facility with a $120,000 adjusted basis for $40,000 cash and a parking lot with a $140,000 FMV. What is the amount of gain which Dean recognizes on the exchange
Answer:
$40,000
Explanation:
This transaction lacks commercial substance, therefore, Dean should only recognize the boot (cash received) as gain from this transaction. The adjusted basis for Dean's "new" parking lot is $120,000, the same adjusted basis as the business storage facility.
This happens because the boot was not more than 25% of the value of the total consideration received by Dean (cash + parking lot). If the boot is 25% or more, then the sale must be reported as a cash sale.
If XYZ common stock has a $4 dividend, a yield of 4.2%, a price-to-earnings (P/E) ratio of 12, and it is trading at $96, its approximate earnings per share (EPS) is
Answer:
$8
Explanation:
According to the given situation, the computation of earnings per share is shown below:-
Earnings per share = Stock price ÷ Price-to-earnings
= $96 ÷ 12
= $8
Therefore we have applied the above formula to determining the earnings per share.
The same is to be considered
We simply divided the stock price by the price to earning so that the earning per share could come
Relationship marketing A. applies to B2B selling in relationship dyads, but not B2C selling. B. applies to B2C selling but not to B2B selling. C. is a non-electronic approach to building personal relationships in a B2B or B2C environment. D. views the sale as the beginning, not the end, of a relationship. E. A and C are both correct
Answer:
Relationship marketing
D. views the sale as the beginning, not the end, of a relationship.
Explanation:
The emphasis with relationship marketing is the ability to retain and satisfy customers and not just the sales transactions. Relationship marketing tries to attract, connect, date, and maintain the customer as an asset that should be cultivated for lifetime value. It builds that human connection between a brand and its customers that is necessary in a romantic relationship. It follows the footsteps of a romance with attraction, connection, dating, relationship, marriage, and flourishing love.
customer retention and satisfaction rather than sales transactions.
Linden, Inc. uses a 5,700 square foot factory space that it rents for $2,800 a month for all its manufacturing activities. Linden has decided to switch to an activity-based costing system, and has identified its activities as follows: Preparation and Setup, Machining, Finishing, and Quality Control. 2,600 square feet of the factory are used for machining, while 1,300 square feet (each) are used for Preparation and Setup and Quality Control. Finishing uses 500 square feet. When assigning indirect costs to each activity, how much factory rent should be assigned to the Preparation and Setup cost pool
Answer:
$639
Explanation:
Rent assigned to preparation and setup = Total rent / Total space * Space used by preparation and setup
= $2,800 / 5,700 * 1,300
= 638.5965
= $639
Therefore, the factory rent that would be assigned to Preparation and Setup cost pool is $639.
a. Consumption schedule The variable on the vertical (y) axis is (Click to select) and the variable on the horizontal (x) axis is (Click to select) . These variables are (Click to select) related. b. Saving schedule The variable on the vertical (y) axis is (Click to select) and the variable on the horizontal (x) axis is (Click to select) . These variables are (Click to select) related. c. What is the fundamental reason that the levels of consumption and saving in the United States are each higher today than they were a decade ago
Answer:
a. Consumption schedule
The variable on the vertical (y) axis is Consumption and the variable on the horizontal (x) axis is disposable income .
These variables are directly related.
On the Consumption schedule, the variables on the y axis are the different levels of consumption whilst the variables on the x are amounts of disposable income.
Consumption and disposable income are directly related because when the amount of disposable income increases, the amount that consumers can spend will increase as well as it comes from the disposable income that a consumer has.
b. Saving schedule
The variable on the vertical (y) axis is Saving and the variable on the horizontal (x) axis is disposable income .
These variables are directly related.
On the Saving schedule the x axis which is for the independent variable is the Disposable income whilst the dependent variable on the y axis is for Savings.
Savings and Disposable income are directly relate because when a person has more money after taxes (disposable income), they will be able to save more money.
c. Real GDP and disposable income are higher.
The Real GDP of the United States as well as disposable income have increased over the past decade which means that people are able to both consume and save more s shown above.
Assume Brad has a choice between two deposit accounts. Account WH has an annual percentage rate of 7.35% with interest compounded continuously. Account MW has an annual percentage rate of 7.45% with interest compounded monthly. Which account provides the highest effective annual return?
Answer: Account MW which compounds monthly provides a higher effective rate at 7.71%
Explanation:
Use the Effective Interest rate formula to see which offers the higher return.
Account WH;
Compounded continuously;
= e^(interest rate) - 1
= e^7.35% - 1
= 7.63%
Account MW
Compounded per month
= (( 1 + interest / compounding period) ^ period) - 1
= (( 1 + 7.45%/12) ^ 12) -1
= 7.71%
Wyle Co. has $3.9 million of debt, $1 million of preferred stock, and $2.1 million of common equity. What would be its weight on preferred stock
Answer:
Weight of Preferred stock = 0.1428571429 or 14.28571429% rounded off to 14.29%
Explanation:
The capital structure of a business is made up of at least one or at most all of the following components namely Debt, Preferred Stock and Common Equity. The ratio in which each of these components form the capital structure might differ from business to business. The weightage of each component in the capital structure can be calculated by dividing the market value of each component by the sum of the market value of all the components.
Weight of a component = Market Value of component / Sum of market value of all components
Weight of Preferred stock = 1,000,000 / (3,900,000 + 1,000,000 + 2,100,000)
Weight of Preferred stock = 0.1428571429 or 14.28571429% rounded off to 14.29%
stock that has a current price of $25.00, a beta of 1.25, and a dividend yield of 6%. If the Treasury bill yield is 5% and the market portfolio is expected to return 14%, what should MUSS’s stock sell for at the end of an investor's two year investment horizon?
Answer:
$30.2067
Explanation:
From the given question, using the dividend discount model
[tex]V_0 = \dfrac{D_1}{r - g}[/tex]
where:
r is the Expected return on stock and be calculated as:
Expected return on stock = Risk free rate + Beta × (Expected Market Return - Risk free rate)
Expected return on stock = 5% + 1.25 × (14% - 5%) = 16.25%
However, the current price in this process will b used as the dividend price for all future expenses.
Dividend Yield = Current Dividend/The Share Price
Current dividend D0 = 6% × $25.00 = $1.50
D₁ = D₀ × (1 + g)
D₁ = 1.5 × (1 + g)
Thus, we can now employ the use of the growth dividend model (constant) to determine the value of g as follows:
[tex]25 = \dfrac{1.5 \times (1 + g)}{0.1625 - g}[/tex]
By cross multiply, we have:
4.0625 - 25g = 1.5 + 1.5g
collect like terms, we have:
4.0625 - 1.5 = 1.5g + 25g
2.5625 = 26.5g
Divide both sides by 26.5, we have:
2.5625/26.5 = 26.5g/26.5
g = 9.67%
Similarly, suppose the value for the second year-end to be Y₂;
Then the constant growth dividend model can be computed as:
[tex]Y_2 = \dfrac{D_3}{r - g}[/tex]
where;
D₃ = D₂ × (1 + g)
D₂ × (1 + g) = D₁ × (1 + g) × (1 + g)
D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g)
D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g) = D₀ × (1 + g) × 3
D₃ = 1.5 × (1 + 9.67%) × 3
D₃ = $1.9876
Finally:
[tex]Y_2 = \dfrac{D_3}{r - g}[/tex]
[tex]Y_2 = \dfrac{1.9876}{0.1625 - 0.0967}[/tex]
Y₂ = $30.2067
According to Paine, errors of judgment in an organization often reveal: Group of answer choices A culture and management philosophy that operates different from how it appears "in the books" A culture and management philosophy that is insensitive or indifferent to ethical concerns A culture and management philosophy motivated primary by greed and self-interest A culture and management philosophy that sets out to deceive
Answer: A culture and management philosophy that is insensitive or indifferent to ethical concerns
Explanation:
According to Paine, errors of judgment in an organization often reveal culture and management philosophy that is insensitive or indifferent to ethical concerns.
Error of judgement occurs when a poor decision is made by an organization or company which leads to a business error. To avoid judgement error, information should be scrutinized totally end every biases should be removed.
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 390,000 Direct labor 261,000 Variable overhead 235,000 Production was 180,000 units. Fixed manufacturing overhead was $851,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes; direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Variable manufacturing overhead per unit is expected to remain the same. Required: a. Prepare a cost estimate for a volume level of 144,000 units of product this year. b. Determine the costs per unit for last year and for this year.
Answer:
Results are below.
Explanation:
First, we need to calculate the unitary costs:
Direct materials= 390,000/180,000= $2.17
Direct labor= 261,000/180,000= $1.45
Variable overhead= 235,000/180,000= $1.31
Now, we determine the new costs:
Direct materials= 2.17*1.2= $2.604
Direct labor= 1.45*1.04= $1.508
Fixed overhead= 851,000*1.1= $936,100
Total cost for 144,000 units:
Total cost= 144,000*(2,604 + 1,508 + 1.31) + 936,100
Total cost= 144,000*5.422 + 936,100
Total cost= $1,716,868
Finally, the unitary cos for both years:
Last year= 2.17 + 1.45 + 1.31= $4.93
This year= $5.422
The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2014. (b) Indicate the account title to which each expenditure should be debited.
1. Paid $7,000 of accrued taxes at the time the plant site was acquired. choose an account title
2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. choose an account title
3. Paid $850 sales taxes on a new delivery truck. choose an account title
4. Paid $21,000 for parking lots and driveways on the new plant site. choose an account title
5. Paid $250 to have the company name and slogan painted on the new delivery truck. choose an account title
6. Paid $8,000 for installation of new factory machinery. choose an account title
7. Paid $900 for a 1-year accident insurance policy on the new delivery truck. choose an account title
8. Paid $75 motor vehicle license fee on the new truck.
Answer with Explanation:
According to International Accounting Standard IAS 16 Property, Plant and Equipment, the cost of the asset acquired must include all the cost necessary to make it ready for its intended use.
This means that the expenditure that is the legal cost or must be very important for making it ready for use must form part of the asset.
The double entry of such transaction is as under:
Dr Non Current Asset XX
Cr Cash or Cash Equivalent Paid or Payables XX
From the above criteria, we can say that following accounts must be debited:
1. Paid $7,000 of accrued taxes at the time the plant site was acquired.
Dr Land-Plant Site $7,000
Cr Accrued Taxes $7,000
2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit.
Dr Factory Machine $200
Cr Cash $200
3. Paid $850 sales taxes on a new delivery truck.
Dr Delievery Truck $850
Cr Sales Tax - Not refundable $850
If the sales tax is refundable while we file tax returns then it must not be included in cost as it is paid for completing formalities of the vendor company.
4. Paid $21,000 for parking lots and driveways on the new plant site.
Dr Land-Plant Site $21,000
Cr Cash $21,000
5. Paid $250 to have the company name and slogan painted on the new delivery truck. choose an account title
Dr Delievery Truck $250
Cr Cash $250
6. Paid $8,000 for installation of new factory machinery.
Dr Factory Machinery $8,000
Cr Cash $8,000
7. Paid $900 for a 1-year accident insurance policy on the new delivery truck.
Dr Prepaid Insurance $900
Cr Cash $900
8. Paid $75 motor vehicle license fee on the new truck.
Dr Lisence Expense $75
Cr Cash $75
It is paid on behalf of an employee but it is 100% business oriented not employee oriented benefit. Hence is classified as a revenue expenditure.
Barry was sitting on a bench near the center of the shopping mall waiting for his wife to finish her shopping when he was approached by a woman holding a clipboard with a dress shirt laid over her arm. She asked if Barry had the time to answer a few questions about the shirt. After Barry examined the shirt, the woman asked him to assess the quality of the shirt and to state how much he would be willing to pay for the shirt. Barry participated in a(n) ____.
Answer: Mall intercept
Explanation:
From the question, we are informed that Barry was sitting on a bench near the center of the shopping mall waiting for his wife to finish her shopping when he was approached by a woman holding a clipboard with a dress shirt laid over her arm and asking him question related to the shirt.
Based on the above scenario, Barry participated in a mall intercept. Mall intercept simply refers to a situation whereby people are approached at shopping malls and asked questions in form of surveys which are done by researchers in order to gather information regarding a particular subject area.
A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 214 days with a project variance of 100, what is the probability that the project will take 224 days or more to complete:_____
a. near zero
b. 0.0126
c. 0.1587
d. 0.8413
e. 2.14
Answer:
c. 0.1587
Explanation:
Let x represent no of days for the project to complete
Given, E [x] = 214 =
[x] = 10
Now, from CLT, (x - Ц)/б follows
Standard normal distribution
So, P(x ≥ 224) = P [(x - Ц )/б ≥ (224 - 214) / 10
= p ( z ≥ 1)
= 0.15866
The probability of the project being completed by 224 days is 0.15.
Given that,
A project being analyzed by PERT has 60 activities, 13 of which are on the critical path.
If the estimated time along the critical path is 214 days with a project variance of 100.
We have to determine,
What is the probability that the project will take 224 days or more to complete?
According to the question,
The probability that the project will take 224 days is determined by the formula;
[tex]\rm Z = \dfrac{X-mean}{Standard \ deviation}[/tex]
Where X is 224 and the mean is 214.
The value of the standard deviation is,
[tex]\rm Standard \ deviation = \sqrt{varience}\\\\Standard \ deviation = \sqrt{100}\\\\Standard \ deviation = 10\\[/tex]
Substitute all the values in the formula,
[tex]\\\rm Z = \dfrac{X-mean}{Standard \ deviation}\\\\\rm Z = \dfrac{224-214}{10}\\\\Z = \dfrac{10}{10}\\\\Z= 1[/tex]
For z = 1, the probability is 0.15;
Hence, The probability of the project being completed by 224 days is 0.15.
For more details refer to the link given below.
https://brainly.com/question/16949180
You would like to evlauate pursuing a new computing tool for your team. The new workstation would impact 10 of your campany staff and cost about $5,500. You expect the new work stations to have a yearly maintenance and operation cost of 20% of the initial cost. At the end of the 3 year life cycle you think the new workstation can have a salvage value of 5% of the initial cost. What is the present worth of the new stations if you use an internal MARR of 17%
Answer:
-7,759.29 dollar
Explanation:
cost of maintenance and operation
initial cost of $5500 x 20%
= 1100 Dollars
salvage value
initial cost of $5500 x 5%
= $275
pw = -5500-1100(p/a,17%,3) +275(p/f,17%,3)
pw = -5500-(1100*2.21) + (275*0.6244)
pw = -5500-2431+17.71
= -7759.29
so pw, that is present worth of new stations using internal MARR of 17% is -7759.29 dollars
On January 1, 2016, Brian's stock portfolio is worth $100,000. On September 30, 2016, $5,000 is withdrawn from the portfolio, and immediately after this withdrawal the portfolio has a value of $105,000. Twelve months later, the value of the portfolio is $108,000, and Brian adds $3,000 worth of stock to his portfolio. On December 31, 2017, the portfolio is worth $100,000. What is the time-weighted rate of return for Brian's stock portfolio over the two year period
Answer:
1.93%
Explanation:
The time weighted rate of return will be computed by combining the return at every time period demarcated by a withdrawal/addition.
Time 1: Jan 1, 2016 to Sep 30, 2016
start value = 100,000; end value = (105,000+5,000) = 110,000
Return = [tex]\frac{110,000}{100,000}=1.1[/tex]
Time 2: Sep 30, 2016 to Sep 30, 2017
start value = 105,000; end value = 108,000
Return = [tex]\frac{108,000}{105,000}=1.028571[/tex]
Time 3: Sep 30, 2017 to Dec 31, 2017
start value = (108,000 + 3,000) = 111,000; end value = 100,000
Return = [tex]\frac{100,000}{111,000}=0.900901[/tex].
Therefore, time weighted return
= (1.1 * 1.028571 * 0.900901) - 1
= 0.019305
= 1.93%.
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
Question Completion:
The beginning inventory of merchandise at Keats Office Supplies and data on purchases and sales for a three-month period are as follows:
Date Transaction No. of Units Per Unit Total
March 3 Inventory 66 $225 $14,850
March 8 Purchase 132 270 35,640
March 11 Sale 88 750 66,000
March 30 Sale 55 750 41,250
April 8 Purchase 110 300 33,000
April 10 Sale 66 750 49,500
April 19 Sale 33 750 24,750
April 28 Purchase 110 330 36,300
May 5 Sale 66 790 52,140
May 16 Sale 88 790 69,520
May 21 Purchase 198 360 71,280
May 28 Sale 99 790 78,210
Answer:
Keats Office Supplies
Total sales (495 units) = $381,370
Cost of goods sold $147,510
Gross profit $233,860
Explanation:
a) Data and Calculations:
Date Transaction No. of Units Per Unit Costs Revenue
March 3 Inventory 66 $225 $14,850
March 8 Purchase 132 270 35,640
March 11 Sale -88 750 66,000
March 30 Sale -55 750 41,250
April 8 Purchase 110 300 33,000
April 10 Sale -66 750 49,500
April 19 Sale -33 750 24,750
April 28 Purchase 110 330 36,300
May 5 Sale -66 790 52,140
May 16 Sale -88 790 69,520
May 21 Purchase 198 360 71,280
May 28 Sale -99 790 78,210
Total:
Cost of goods available 616 -495 = 121 $191,070 $381,370
May 31 Ending Inventory, using FIFO = 121 units 360 $43,560
Cost of goods sold = Cost of goods available for sale Minus Ending Inventory = $191,070 - $43,560 = $147,510
