Answer:
Incremental Costs to Make
Variable Cost Per Unit = $4.05 = 56,500 units*$4.05 = $228,825
Fixed Manufacturing Costs = $85,000
Total Incremental Costs to Make $313,825
Incremental Costs to Buy
Purchase Price Per Unit = $3.50 = 56,500 unit*$3.50 = $197,750
Total Incremental Cost to Buy = $197,750
The company should buy the component from outside supplier as it results in a lower total incremental cost of $197,750
PLEASE HELP I NEED TO RAISE THIS GRADE
Answer:
I think it is the last one.
Explanation:
Hope this helped Mark BRAINLEST!!!!
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold, and then direct cost or an indirect cost with respect to units of product.
Manufacturing (Product) Cost
Variable or Fixed Selling Cost Administrative Cost Direct Indirect
Ex. Direct labor Variable Yes
Executive Salaries Fixed Yes
Factory rent Fixed Yes
1. Property taxes, factory
2. Boxes used for packaging detergent produced by the company
3. Salespersons' commissions
4. Supervisor's salary factory
5. Depreciation executive autos
6. Wages of workers assembling computers
7. Insurance, finished goods warehouses
8. Lubricants for production equipment
9. Advertising costs
10. Microchips used in producing calculators
11. Shipping costs on merchandise sold
12. Magazine subscriptions, factory lunchroom
13. Thread in a garment factory
14. Executive life insurance
15. Ink used in textbook production
16. Fringe benefits, materials handling workers
17. Yarn used in sweater production
18. Wages of receptionist, executive offices
Answer:
1. Property taxes, factory - Fixed - Manufacturing indirect cost
2. Boxes used for packaging detergent produced by the company - Variable - Manufacturing direct cost
3. Salespersons' commissions - Variable - Selling cost
4. Supervisor's salary factory - Fixed - Manufacturing indirect cost
5. Depreciation executive autos - Fixed - Administrative Cost
6. Wages of workers assembling computers - Variable - Manufacturing direct cost
7. Insurance, finished goods warehouses - Fixed - Selling cost
8. Lubricants for production equipment - Variable - Manufacturing indirect cost
9. Advertising costs - Fixed - Selling cost
10. Microchips used in producing calculators - Variable - Manufacturing direct cost
11. Shipping costs on merchandise sold - Variable - Selling cost
12. Magazine subscriptions, factory lunchroom - Fixed - Manufacturing indirect cost
13. Thread in a garment factory - Variable - Manufacturing indirect cost
14. Executive life insurance - Fixed - Administrative Cost
15. Ink used in textbook production - Variable - Manufacturing indirect cost
16. Fringe benefits, materials handling workers - Variable - Manufacturing indirect cost
17. Yarn used in sweater production - Variable - Manufacturing direct cost
18. Wages of receptionist, executive offices - Fixed - Administrative Cost
People from urban areas often travel to cheese-producing regions to see how cheese is made; this type of ______allows people to visit working farms and ranches to see how agricultural products are made.
Answer:
Tourism
Explanation:
Tourism can be regarded as activities that people engaged in when they
travel for pleasure as well business purposes, it can be regarded as theory and practice of touring arround the world, it is the business that involves attracting as well as accommodating and entertaining of tourists. It should be noted that People from urban areas often travel to cheese-producing regions to see how cheese is made; this type of tourism allows people to visit working farms and ranches to see how agricultural products are made.
Answer:
Agritourism
Explanation:
It states this in the notes that were given on Edg
how do you propagate
Answer:
Explanation:
There are three ways to propagate a plant: dividing (separating an already growing plant into two), rooting a leaf (typically done with succulents), or rooting a cutting (a small stem with leaves).
Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $750,000 and $550,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 18,000 hours and 7000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) A) $1.36 per labor hour B) $30.56 per labor hour C) $78.57 per machine hour D) $107.14 per machine hour
Answer:
OAR = $78.57 per Machine Hour
Option c is the correct answer
Explanation:
The overhead allocation rate also known as the overhead absorption rate (OAR) is the rate at which overheads are applied to a particular unit or product or a job. It provides the basis of allocation for the overheads that cannot be directly identified with a particular unit or product. The formula for OAR is,
OAR = Total budgeted overheads / Total budgeted allocation base
In the given question, the estimated overheads are $550000 while the absorption base is machine hours and the estimated number of machine hours is 7000.
OAR = 550000 / 7000
OAR = $78.57 per Machine Hour
Sweet Company manufactures equipment. Sweet’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Sweet has the following arrangement with Winkerbean Inc.
● Winkerbean purchases equipment from Sweet for a price of $930,000 and contracts with Sweet to install the equipment. Sweet charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Sweet determines installation service is estimated to have a standalone selling price of $46,000. The cost of the equipment is $560,000.
● Winkerbean is obligated to pay Sweet the $930,000 upon the delivery and installation of the equipment.
Sweet delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.
How should the transaction price of $930,000 be allocated among the service obligations?
Equipment $
Installation $
Prepare the journal entries for Sweet for this revenue arrangement on June 1, 2020 and September 30, 2020, assuming Sweet receives payment when installation is completed.
Answer:
Equipment:
= Fair value of Equipment / Total fair value * Transaction price
= Fair value of Equipment / (Equipment+Installation) * Transaction price
= $930,000 / ($930,000+$46,000) * $930,000
= $886,168.03
Installation:
= Fair value of Installation / Total fair value * Transaction price
= Fair value of Installation / (Equipment+Installation) * Transaction price
= $46,000 / ($930,000+$46,000) * $930,000
= $43,831.97
Thus, the transaction price of $930,000 allocated to Equipment is $886,168.03 and $43,831.97 to Installation
Date Account Titles and Explanation Debit Credit
June 1 Account receivable $930,000
Sales revenue $886,168.03
Unearned service revenue $43,831.97
(To record the sales of equipment including installation to W)
June 1 Cost of goods sold $560,000
Inventory $560,000
(To record the cost of equipment sold)
Sep 30 Unearned service revenue $43,831.97
Service revenue $43,831.97
(To record the revenue on installation of equipment)
Sep 30 Cash $930,000
Account receivable $930,000
(To record the receipt of cash flow from W)
Account analysis, high-low. Luwak Coffees wants to find an equation to estimate monthly utility costs. Luwak has been in business for one year and has collected the following cost data for utilities:
Month January February March April May June July August September October November December Electricity Bill $ 720 $ 840 $1,098 $ 810 $1,176 $1,248 $1,044 $1,194 $1,260 $1,230 $1,188 $1,266 Kilowatt Hours Used 2,400 2,800 3,660 2,700 3,920 4,160 3,480 3,980 4,200 4,100 3,960 4,220 Telephone Bill $184.
1. Which of the preceding costs is variable? Fixed? Mixed? Explain.
2. Using the high-low method, determine the cost function for each cost.
3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation.
4. Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.
Question Completion:
See attached.
Answer:
Luwak Coffees
1. Water bill is fixed. Electricity bill is variable. Telephone bill is mixed.
2. High-Low method:
Water bill = $120 + 0q
Electricity bill = $0.3q
Telephone bill = $140 + $0.02q
where q = the quantity of each cost consumed.
3. Water bill = $120 + 0q
Electricity bill = $0.3q
Telephone bill = $140 + $0.02q
= $260 + $0.32q
4. No solution. There is no relationship with machine hours, employees, and units with utility bills.
Explanation:
a) Data and Calculations:
Month Electricity Bill Kilowatt Hours Used
January $ 720 2,400
February $ 840 2,800
March $1,098 3,660
April $ 810 2,700
May $1,176 3,920
June $1,248 4,160
July $1,044 3,480
August $1,194 3,980
September $1,260 4,200
October $1,230 4,100
November $1,188 3,960
December $1,266 4,220
Telephone Bill $184.
Low cost = Jan $ 720 2,400
High cost = December $1,266 4,220
High cost = December $1,266 4,220
Low cost = Jan $ 720 2,400
Difference = $546 1,820
Variable cost per unit = $546/1,820 = $0.3 per kwh
Fixed cost, using December's figures:
Variable cost = $1,266
Fixed cost = $0 ($1,266 - 4,220 * $0.3)
Telephone bill:
High, June $197.60 2,880
Low, April 178.20 1,960
Difference $18.40 920
Variable cost = $18.40/920 = $0.02
Fixed cost = Total cost - Variable cost
= $197.60 - (2,880 * $0.02)
= $140
An investor owns 60 shares of common stock of a company issuing new shares in a rights offering. The stock trades at $12 per share. The company requires that investors must submit 9 rights plus $10 to purchase a new share of stock. Fractional shares automatically become whole shares. How many additional shares may the investor purchase and what is the amount of money that needs to be paid for the new shares
Answer:
7 shares and $70
Explanation:
The computation is shown below:
The additional shares is
= 60 shares ÷ 9
= 7 shares
And, the amount of money that have to be paid is
= Additional shares × purchase price
= 7 × $10
= $70
Therefore the same would be considered relevant
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:
Answer:
$13,000
Explanation:
Calculation for what The ending balance of the Work in Process Inventory account for the Fabricating Department is:
Beginning Balance 10,000
Add Direct Materials 76,000
Add Direct Labor 24,000
Add Factory Overheads 12,000
(50% *24,000)
Less Work Transferred (109,000)
Ending Balance $13,000
Therefore The ending balance of the Work in Process Inventory account for the Fabricating Department is:$13,000
ADVANCED ANALYSIS Assume the following values for the figures below: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions. Instructions: Enter your answers as a whole number. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? $ What is the dollar value of the consumer surplus at that output level? $ b. What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? $ c. What is the dollar value of the deadweight loss when output level Q3 is produced? $
Answer:
Follows are the solution to the given question:
Explanation:
For point a:
When efficient level Q1 is produced, the dollar amount of the total surplus (production company excess plus its consumer excess) is provided
Surplus consumer area + Surplus manufacturer area
= Triangle Area ABC:
[tex]= \frac{1}{2}\times ac \times Q_1 \\\\= \frac{1}{2}\times (85 - 5) \times 20 \\\\= \frac{1}{2}\times 80 \times 20 \\\\= \$ 800[/tex]
So, the total amount of surplus in 5.4a is $800. The dollar value of its surplus is calculated by the output Q1
[tex]= \frac{1}{2}( \text{choke price} - \text{equilibrium price}) \times \text{equilibrium quantity}\\\\= \frac{1}{2}\times (85 - 45)\times 20 \\\\ = \frac{1}{2}\times 40 \times 20 \\\\=$400[/tex]
so, the consumer surplus = $400.
For point b:
Whenever the output level Q2 is produced, the unit price of the loss of demise is calculated by the sheltered region in figure 5.4 a
= Triangle Area dbe:
[tex]= \frac{1}{2} \times(de) \times (Q_1-Q_2) \\\\= \frac{1}{2} \times (55 - 35) \times 5 \\\\= \frac{1}{2} \times (20) \times 5 \\\\ = \$50[/tex]
So, the deadweight loss = $50. The total surplus for output Q2 is determined by the trapezium suitable area
[tex]= \frac{1}{2} \times (ac + de) \times Q_2\\\\= \frac{1}{2} \times (80 + 20) \times 15\\\\= \frac{1}{2} \times 100 \times 15\\\\= \$ 750.[/tex]
So, the total surplus is $750
For point c:
The value of its deadweight loss in dollars in Q3 can be seen in figure 5.4b in the shaded area provided by
= The triangle area bfg
[tex]= \frac{1}{2} \times (fg) \times (Q_3-Q_1)\\\\= \frac{1}{2} \times (59 - 31) \times 7 \\\\= \frac{1}{2} \times 28 \times 7 \\\\ = \$98[/tex]
The deadweight loss is $98.
The total excess at output level Q3 is calculated by removing the deadweight loss from the maximum excess. It implies a quantity of between $800 - $98 = $702.
In the incident of oversupply, the consumer supply is, therefore, $702.
Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
Answer:
Underapplied by $3,000
Explanation:
Calculation for what The Corporation's manufacturing overhead cost for the year was:
First step is to calculate the Predetermined Overhead rate
Predetermined Overhead rate=( $ 330,000/ 55,000)
Predetermined Overhead rate= $ 6 per labor hour
Now let calculate the Manufacturing overhead cost
Manufacturing overhead cost= (6 x 57 000)-$345,000
Manufacturing overhead cost=$342,000-$345,000
Manufacturing overhead cost=Underapplied by $3,000
Therefore The Corporation's manufacturing overhead cost for the year was:underapplied by $3,000
Anne Dietz at Changi #3 (Singapore). Anne Dietz lives in Singapore, but is making her first business trip to Sydney, Australia. Standing in Singapore's new terminal #3 at Changi Airport, she looks at the foreign exchange quotes posted over the FX trader's booth. She wishes to exchange 1,100 Singapore dollars (S$ or SGD) for Australian dollars (A$ or AUD). What Anne sees: Spot rate (SGD = 1.00 USD) 1.3443 Spot rate (USD = 1.00 AUD) 0.7646 a. What is the Singapore dollar to Australian dollar cross rate? b. How many Australian dollars will Anne get for her Singapore dollars? a. What is the Singapore dollar to Australian dollar cross rate? The cross rate is SGD 1.0279 1.0279/AUD. (Round to four decimal places.) b. How many Australian dollars will Anne get for her Singapore dollars? Anne will get AUD nothing . (Round to two decimal places.)
Answer:
a. The Singapore dollar to Australian dollar cross rate is (SGD = 1.00 AUD) 1.0278.
b. The number of Australian dollars Anne will get is 1,070.25 Australian dollars.
Explanation:
a. What is the Singapore dollar to Australian dollar cross rate?
Given:
Spot rate (SGD = 1.00 USD) 1.3443
Spot rate (USD = 1.00 AUD) 0.7646
These imply that:
1.3443 SGD = 1.00 USD ..................... (1)
0.7646 USD = 1.00 AUD ................... (2)
From equation (2), we divide through by 0.7646 to have:
0.7646 / 0.7646 USD = 1.00 / 0.7646 AUD
1.00 USD = 1.3079 AUD
Substituting this into equation (1) and solve as follows:
1.3443 SGD = 1.00 USD = 1.3079 AUD
Dropping 1.00 USD, we have:
1.3443 SGD = 1.3079 AUD
Dividing through by 1.3079, we have:
1.3443 / 1.3079 SGD = 1.3079 / 1.3079 AUD
1.0278 SGD = 1.00 AUD
Therefore, the Singapore dollar to Australian dollar cross rate is (SGD = 1.00 AUD) 1.0278.
b. How many Australian dollars will Anne get for her Singapore dollars?
This can be calculated as follows:
Number of Australian dollars Anne will get = Amount of Singapore dollars Anne wishes to exchange for Australian dollars / Singapore dollar to Australian dollar cross rate = 1,100 / 1.0278 = 1,070.24712979179 Australian dollars
Rounding to two decimal places as required, we have:
Number of Australian dollars Anne will get = 1,070.25 Australian dollars
Therefore, the number of Australian dollars Anne will get is 1,070.25 Australian dollars.
Based on the spot rates between the three nations, the following is true:
The Singapore dollar to Australia dollar is 1.02785178 Singapore Dollars. Anne Dietz will get AUD 1,070.19.To find the cross rate, you should multiply the Singapore dollar to USD rate with the USD to Australian dollar rate:
= 1.3443 x 0.7646
= 1.02785178 Singapore Dollars
The amount that Anne would get for 1,100 SGD is:
= 1,100 / 1.02785178
= AUD 1,070.19
In conclusion, Anne would get AUD 1,070.19.
Find out more about cross rates at https://brainly.com/question/10112843.
Stationery Supplies is considering installing an inventory control system in its store in Provo, Utah. The store carries about 1,400 different inventory items and has annual gross sales of about $80,000. The inventory control system would cost $12,500 to install and about $2,000 per year in additional supplies, time, and maintenance. If the savings to the store from the system can be represented as a fixed percentage of annual sales, what would that p
Answer:
5.63%
Explanation:
Missing word "have to be in order for the system to pay for itself in five years or less?"
Total cost = Installation cost + Holding cost
Total cost = 12500 + (2000*5)
Total cost = $22,500
Sales * Saving rate * Number of years = Total cost
80,000 * S * 5 = $22,500
S = $22,500/$400,000
S = 0.05625
S = 5.63%
Thus, it is required for the company to have 5.62% of saving rate per year to pay for the system.
At the beginning of fiscal 2014, Standard Rate Company acquired a small savings and loan association for $68 million. The book value of the assets of the acquired company were $174 million, its liabilities $115 million. An appraiser determined that the acquiree's land had a fair value of $2 million in excess of its net book value. Standard Rate also determined that the acquiree had an unrecorded liability of $4.5 million relating to a lawsuit. The book value of all other assets and liabilities approximated fair value. What did Standard Rate Company record as goodwill for this acquisition
Answer:
$11,500,000
Explanation:
Particulars Amount'million
Book value of the assets of the acquired company $174
Add: Fair value in excess of its net book value $2
Less: Liabilities $115
Less: Unrecorded liability relating to a lawsuit $4.50
Less: Acquisition Cost of the company $68
Goodwill $11.50
Partial balance sheet data for Diesel Additives Company at August 31 are as follows:Finished goods inventory................$ 89,400Supplies.............................................$ 13,800Prepaid insurance..................................9,000Materials inventory..............................26,800Accounts receivable...........................348,200Cash.....................................................167,500Work in process inventory..................61,100Prepare the Current Assets section of Diesel Additives Company's balance sheet at August 31.
Answer:
Diesel Additives Company
Current Assets section
Materials inventory 26,800
Work in process inventory 61,100
Finished goods inventory 89,400
Supplies 13,800
Prepaid insurance 9,000
Accounts receivable 348,200
Cash 167,500
Total Current Assets 715,800
Explanation:
Current Assets section of Diesel Additives Company's balance sheet at August 31 is shown above.
0.0004×0.81/0.0027×0.004
Answer:
0.00048
Explanation:
I hope this helped
On January 1, 2020, Crane Company sold to Blossom Company $740000 of its 8% bonds for $655119 to yield 11%. Interest is payable semiannually on January 1 and July 1. What amount should Crane report as interest expense for the six months ended June 30, 2020? a) $36032 b) $26205 c) $40700 d) $29600
Answer:
a) $36032
Explanation:
The computation of the interest expense reported is shown below:
= BOnd value × rate of interest × given months ÷ total months
= $655,119 × 11% × 6 months ÷ 12 months
= $36,032
Hence, the amount that should be reported as interest expense is $36,032
Exercise 2-4 (Algo) Journal entries [LO2-3] The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 90,000 shares of common stock in exchange for $450,000 cash. Purchased office equipment at a cost of $80,000. $32,000 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $180,000. The company uses the perpetual inventory system. Credit sales for the month totaled $306,000. The cost of the goods sold was $153,000. Paid $4,000 in rent on the store building for the month of June. Paid $2,160 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021. Paid $130,050 on account for the merchandise purchased in 3. Collected $61,200 from customers on account. Paid shareholders a cash dividend of $4,500. Recorded depreciation expense of $1,600 for the month on the office equipment. Recorded the amount of prepaid insurance that expired for the month.
Answer:
S/n General Journal Debit Credit
1. Cash $450,000
Common Stock $450,000
(Issued Common stock $5 par value)
2. Furniture and Fixture $80,000
Cash $32,000
Note Payable $48,000
3. Inventory $180,000
Accounts Payable $180,000
4. Accounts receivable $306,000
Sales $306,000
Cost of goods sold $153,000
Inventory $153,000
5. Rent Expense $4,000
Cash $4,000
6. Prepaid Expense $2,160
Cash $2,160
7. Accounts payable $13,050
Cash $13,050
8. Cash $61,200
Accounts Receivables $61,200
9. Dividend $4,500
Cash $4,500
10. Depreciation Expenses $1,600
Acc. Dep. Furniture & fixtures $1,600
11. Insurance Expense $180 (2,160/12)
Prepaid Expense $180
Elm Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $420,000 $350,000 Work in process inventory 400,000 275,000 Finished goods inventory 200,000 125,000 During 2020, $750,000 of raw materials were purchased, direct labor costs amounted to $560,000, and manufacturing overhead incurred was $630,000. The total raw materials available for use to assign to production during 2020 for Elm Company is Group of answer choices
Answer:
$680,000
Explanation:
The computation of the raw material allocated to production is shown below:
As we know that
Raw materials used in production = Beginning raw materials + Purchase of raw materials - Ending raw materials
= $350,000 + $750,000 - $420,000
= $680,000
Essential College Supplies (ECS) is a store on the campus on a large Midwestern university. The store has both an apparel section (t-shirts with the school logo) and a convenience section. ECS reports revenues for the apparel section separately from the convenience section. Requirement Classify each cost item (A-H) as follows:
a. Direct or indirect (D or I) costs of the total number of t-shirts sold.
b. Variable or fixed (V or F) costs of how the total costs of the apparel section change as the total number of t-shirts sold changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the total number of t-shirts sold.)
Requirement
a. Classify each cost item (A-H) as direct or indirect (D or I) costs of the total number of t-shirts sold. Cost Item D or A. Annual fee for licensing the school logo
b. Cost of store manager's salary
c. Costs of t-shirts purchased for sale to customers
d. Subscription to College Apparel Trends magazine
e. Leasing of computer software used for financial budgeting at the ECS store
f. Cost of coffee provided free to all customers of the ECS store
g. Cost of cleaning the store every night after closing
h. Freight-in costs of t-shirts purchased by ECS
Answer:
a. Annual fee for licensing the school logo - Direct cost - Fixed Cost
b. Cost of store manager's salary - Indirect Cost - Fixed Cost
c. Costs of t-shirts purchased for sale to customers - Direct cost - Variable cost
d. Subscription to College Apparel Trends magazine - Direct cost - Fixed Cost
e. Leasing of computer software used for financial budgeting at the ECS store - Indirect Cost - Fixed Cost
f. Cost of coffee provided free to all customers of the ECS store - Indirect Cost - Variable cost
g. Cost of cleaning the store every night after closing - Indirect Cost - Fixed Cost
h. Freight-in costs of t-shirts purchased by ECS - Direct cost - Variable cost
Maria is very proud of herself for having $3,000 in her savings account that pays 3 percent interest. She currently has a balance of $1,800 on her credit card account that charges 18 percent interest. Maria thinks she is making a wise financial decision by keeping her money in her savings account instead of paying off her credit card balance. What financial principle from Chapter One would you use to give her good advice
Answer: b. mind games and your money
Explanation:
This falls under Mental accounting where our minds play games with our money by dividing them into various accounts and uses based on our emotions.
Sunk costs play a big part in this because we get so attached to the accounts we have put a lot of effort in while neglecting those we have not or do not want to think about. Maria here is proud of her savings account so much so that she does not see the detrimental effect of not paying off the credit card debt which is rising rapidly.
Her savings account is now a sunk cost and she doesn't realize. This principle can help advise her so she understands the games her mind is playing on her and fix it before the damage gets worse.
An economy consists of three workers: Sam, Andrew, and Darnell. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Sam can either mow 1 lawn or wash 1 car; Andrew can either mow 1 lawn or wash 2 cars; and Darnell can either mow 2 lawns or wash 1 car.
For each of the scenarios listed, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row.
a. All three spend all their time mowing lawns.
b. All three spend all their time washing cars.
c. All three spend half their time on each activity.
d. Sam spends half his time on each activity, while Andrew only washes cars and Darnell only mows lawns.
Answer:
40 lawns would be mown , 0 cars would be washed
40 cars, 0 lawns
20 lawns 20 cars
25 lawns 25 cars
Explanation:
a. If they all mow lawns and they have 10 hours a day to work, the total number of lawn mown = (1 x 10) + (1 x 10) +(2 x 10) = 40 lawns
If they mow lawns only, they would wash cars. So, the total of cars washed would be 0
b. If they all wash cars and they have 10 hours a day to work, the total number of cars washed = (1 x 10) + (2 x 10) +(1 x 10) = 40 cars
If they wash cars only, they would not mow any lawn. So, the total of lawns mown would be 0
c If they all spend half their time on each activity, they would wash cars for 5 hours and mow lawns for 5 hours
Lawns mown = (1 x 5) + (1 x 5) +(2 x 5) = 20 lawns
Cars washed = (1 x 5) + (2 x 5) +(1 x 5) = 20 cars
d. If Sam spends half his time on each activity, he would spend 5 hours on each activity. He would wash 5 cars and mow 5 lawns
If Andrew washes only cars, he would wash (2 x 10) = 20 cars
If Darnell only mows lawns, she would wash (2 x 10) = 20 lawns
This gives a total of 25 cars and 25 lawns
Brad could no longer stand the smell emanating from his neighbor Clarence's compost heap that grew more odorous as the summer progressed. Brad brought an action against Clarence under _____.
nuisance
intentional infliction of emotional distress
assault
negligence
Answer:
Nuisance
Explanation:
I took the test on egde 2021
Karen and Andy own a beach house. They have an agreement with a rental agent to rent it up to 200 days per year. For the past three years, the agent has been successful in renting it for 200 days. Karen and Andy use the beach house for one week during the summer and one week during Thanksgiving. Their daughter, Sarah, a college Student, has asked if she and some friends can use the beach house for the week of spring break. Advise Karen and Andy on how they should respond, and identify any relevant tax issues.
Answer:
The total number of days that Karen and Andy can use the beach house for personal use = 200 rental days x 10% = 20 days. If they exceed this limit, then they will not be able to deduct any rental losses from their income.
It is important to determine if Karen And Andy expect a rental loss or not. If they expect to lose money, then they should tell their daughter to use the beach house only for 6 days, not 7. Or they could use it only 13 days during the rest of the year. The important issue is that the total number of days for personal use doesn't exceed 10% of the rental days.
Here is the income statement for Windsor, Inc. WINDSOR, INC. Income Statement For the Year Ended December 31, 2022 Sales revenue $420,100 Cost of goods sold 235,100 Gross profit 185,000 Expenses (including $16,100 interest and $21,900 income taxes) 72,500 Net income $ 112,500 Additional information: 1. Common stock outstanding January 1, 2022, was 22,400 shares, and 36,600 shares were outstanding at December 31, 2022. 2. The market price of Windsor stock was $12 in 2022. 3. Cash dividends of $22,600 were paid, $4,600 of which were to preferred stockholders. Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a) Earnings per share $enter earnings per share in dollars 3.66 (b) Price-earnings ratio enter price-earnings ratio in times 3.28 times (c) Payout ratio enter payout ratio in percentages 19.8 % (d) Times interest earned enter times interest earned 9.35 times
Answer:
a) Earning per share $3.66
b) Price earning ratio 3.28 times
c) Payout ratio 20.09%
d) Time Interest earned 9.35 times
Explanation:
A) Calculation for Earnings per share
First step is to calculate the Weighted Average number of common shares outstanding using this formula.
Weighted Average number of common shares outstanding = (Number of common shares outstanding in the beginning + Number of common shares outstanding in the end)/2
Let plug in the formula
Weighted Average number of common shares outstanding= (22,400 + 36,600)/2
Weighted Average number of common shares outstanding= 29,500
Now let calculate the Earnings per share using this formula
Earnings per share = (Net income – Preferred stock dividend)/Weighted Average number of common shares outstanding
Let plug in the formula
Earnings per share= (112,500 – 4,600)/29,500
Earnings per share= 107,900/29,500
Earnings per share= $3.66
B) Calculation for Price-earnings ratio enter price-earnings ratio in times
Using this formula
Price earnings ratio = Market price of 1 common share/Earnings per share
Let plug in the formula
Price earnings ratio= 12/3.66
Price earnings ratio= 3.28 times
C) Calculation for Payout ratio enter payout ratio in percentages using this formula
Payout ratio = Cash dividends/Net income
Let plug in the formula
Payout ratio= 22,600/112,500
Payout ratio= 20.09%
D) Calculation for Times interest earned enter times interest earned using this formula
Times interest earned = (Net income + Interest expense + Tax expense)/Interest expense
Let plug in the formula
Times interest earned= (112,500 + 16,100 + 21,900)/16,100
Times interest earned= 150,500/16,100
Times interest earned= 9.35 times
Therefore:
a) Earning per share $3.66
b) Price earning ratio 3.28 times
c) Payout ratio 20.09%
d) Time Interest earned 9.35 times
20) Movie production companies sometimes re-release classic films to theaters to give people who enjoyed them the first time a chance to see the movies again. This is an example of a market penetration strategy.
TRUE FALSE
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A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below:
For in-house manufacturing:
Annual fixed cost = $85,000
Variable cost per part = $130
For purchasing from supplier:
Purchase price per part = $140
If demand is forecast to be 2,500 parts, should the firm make the part in-house or purchase it from a supplier? Round your answer to the nearest whole number.
Break-Even Quantity:
parts
The best decision is to
-Select-
.
The marketing department forecasts that the upcoming year’s demand will be 2,500 parts. A new supplier offers to make the parts for $138 each. Should the company accept the offer? Round your answer to the nearest whole number.
New Break-Even Quantity:
parts
The best decision is to
-Select-
.
What is the maximum
Hey! Here's the answer.
Discuss how Zipcar is more a lifestyle brand than
a travel brand, and what this means. How does
this impact the company’s promotional efforts?
What solutions does Zipcar provide, and how
does this make it a lifestyle brand?
Answer:
I don't know I also want the ans
The accounts of Delphinia Dreams, Inc. showed the following balances at the beginning of October: Account Debit Raw Materials Inventory $31,000 Work-in-Process Inventory 44,000 Finished Goods Inventory 54,000 Manufacturing Overhead 20,000 During the month, direct materials amounting to $21,000 and indirect materials amounting to $6000 were issued to production. What is the ending balance in the Work-in-Process Inventory account following these two transactions? A) $10,000 B) $26,000 C) $65,000 D) $44,000
Answer:
C. $65,000
Explanation:
With regards to the above information, ending work in process is computed as;
Ending work in process = Beginning work in process + materials transferred
Ending work in process = $44,000 + $21,000
Ending work in process = $65,000
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 54,000 labor-hours. The estimated variable manufacturing overhead was $7.90 per labor-hour and the estimated total fixed manufacturing overhead was $961,200. The actual labor-hours for the year turned out to be 56,300 labor-hours. Required: Compute the company's predetermined overhead rate for the recently completed year. (Round your answer to 2 decimal places.)
Answer:
$17.80 per labor-hour
Explanation:
Predetermined overhead rate = Budgeted Fixed Overheads ÷ Budgeted Activity
= $961,200 ÷ 54,000 labor-hours
= $17.80 per labor-hour
Predetermined overhead rate for the recently completed year is $17.80 per labor-hour.
