Answer:
b) all of these are true.
Explanation:
The scenario described in the question illustrates differences in communication rules that suffer from different cultural influences, this is what we perceive when Mexican Lolita may have been surprised that the American Kevin Johnson communicated with her in a more informal way at a formal work meeting. , and therefore felt offended, as he took into account the type of cultural communication in his country of origin, disregarding the intercultural differences in communication that occur in different countries.
So the ideal is that in a case like the one described in the question, where there are negotiations for business deal with international companies, employees are prepared to relate professionally with different types of people, observing the type of communication context, understanding that there are differences intercultural experiences that imply in the way people relate to each other even in the work environment, and above all, maintain ethics and respect for each and every culture different from yours.
. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will borrow $1 comma 823 from Wendy, who will charge him 4% on the loan. He will also borrow $1 comma 533 from Bebe, who will charge him 6% on the loan, and $644 from Shelly, who will charge him 12% on the loan. What is the weighted average cost of capital for Eric? What is the weighted average cost of capital for Eric?
Answer:
6.04%
Explanation:
The weighted average cost of capital (WACC) can be described as the average rate that is expected that a business will pay to finance its assets to all holders of its security.
The weighted average cost of capital (WACC) can be estimated as the summation of the products of the weight of each loan in the total loan and their interest rate for this question as follows:
Total loan amount = $1,823 + $1,533 + $644 = 4,000
Weight of loan from Wendy = $1,823 / $4,000 = 0.46, or 46%
Weight of loan from Bebe = $1,533 / $4,000 = 0.38, or 38%
Weight of loan from Shelly = $644 / $4,000 = 0.16, or 16%
Weighted average cost of capital = (46% * 4%) + (38% * 6%) + (16% * 12%) = 6.04%.
Therefore, the weighted average cost of capital for Eric is 6.04%.
Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects:
Year 0 1 2 3
Sales (Revenues) 100,000 100,000 100,000
- Cost of Goods Sold (50% of Sales) 50,000 50,000 50,000
- Depreciation 30,000 30,000 30,000
= EBIT 20,000 20,000 20,000
- Taxes (35%) 7000 7000 7000
= unlevered net income 13,000 13,000 13,000
+ Depreciation 30,000 30,000 30,000
- capital expenditures -90,000
1. The free cash flow for the first year of Epiphany's project is closest to:________
A. $43,000
B. $25,000
C. $13,000
D. $45,000
2. The NPV for Epiphany's Project is closest to:_______
A. $4,800
B. $39,000
C. $13,300
D. $20,400
Answer:
FCF years 1 is $43,000
NPV is $13,300
Explanation:
The free cash flow for the first year=net income+depreciation-Capital exp
net income is $13,000
depreciation is $30,000
capital exp for the first year is nil
the free cash flow=$13,000+$30,000+$0=$43,000
FCF year zero=-$90,000
the FCF for year1 applies to years 2 and 3 as well
NPV=-$90,000+$43,000/(1+12%)^1+$43,000/(1+12%)^2+$43,000/(1+12%)^3=
$13,278.74
The closest option is $13,300
Presented below is information related to Marin Company. Cost Retail Beginning inventory $103,820 $278,000 Purchases 1,402,000 2,152,000 Markups 93,600 Markup cancellations 13,900 Markdowns 34,600 Markdown cancellations 5,000 Sales revenue 2,206,000 Compute the inventory by the conventional retail inventory method.
Answer:
The ending inventory for Marin comapny is $1664460
Explanation:
Solution
An Inventory is computed by using the conventional retail inventory method. which is statted belwo:
Inventory computed for Marin Company
Cost Retail
Beginning of Inventory $103,820 $278,000
Purchases 1,402,000 2,152,000
Total 1505820 243,000
Add: Net Markups
Markups 93,600
Markup cancellations -13,900
79700
Total 1505820 2509700
Deduct: Net Markdown
Markdown 34,600
Markdown cancellation -5,000
29,600
Sales price of goods 2480100
Sales revenue 2,206,000
The retail ending is 274,100
Thus,
The retail cost ratio is = 1505820 /2509700 = 60%
Hence, the cost of Ending inventory becomes = 274,100 * 60%
= $1664460.
The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2020, the company paid its annual fire insurance premium of $9,200 for the year beginning December 1 and debited prepaid insurance. On August 31, 2020, the company borrowed $152,500 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $30,400 representing rent for the 2021 calendar year and credited deferred rent revenue. Depreciation on the office building is $22,200 for the fiscal year. Employee salaries for the month of June 2021 $22,000 will be paid on July 20, 2021. Prepare the necessary year-end adjusting entries at the end of June 30, 2021, for the above situations. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
1.Dr Insurance expense 2,300
Cr Prepaid insurance 2,300
2.Dr Interest expense 3,050
Cr Interest payable 3,050
3.Dr Deferred rent revenue 7,600
Cr Rent revenue 7,600
4.Dr Depreciation expense 5,550
Accumulated
depreciation—building 5,550
5.Dr Salaries and wages expenses 22,000
Cr Salaries and wages payable 22,000
Explanation:
The Mazzanti Wholesale Food Company's Journal entries
1.
Dr Insurance expense 2,300
(9200×3/12 months)
Cr Prepaid insurance 2,300
2.
Dr Interest expense 3,050
(152,500×8%×3/12months )
Cr Interest payable 3,050
3.
Dr Deferred rent revenue 7,600
(30,400×3/12months)
Cr Rent revenue 7,600
4.
Dr Depreciation expense 5,550
(22,200×3/12 months)
Accumulated
depreciation—building 5,550
5.
Dr Salaries and wages expenses 22,000
Cr Salaries and wages payable 22,000
Within the relevant range, the variable cost per unit: remains constant as activity changes. increases as activity increases. decreases as activity increases. can increase or decrease as the activity changes.
Answer:
remains constant as activity changes.
Explanation:
The Variable Cost per unit is the actual production cost that is incurred in order to produce each unit that is affected by changes in the company's output or activity level. Within the relevant range, the variable cost per unit remains constant as activity changes, even though the total dollar amount varies in accordance to the various changes in the company's activity, the variable cost will stay constant on a per unit basis.
Following are transactions for Valdez Services, a company owned by Brina Valdez. Brina Valdez invested $20,000 cash in the company in exchange for common stock. The company provided services to a client and immediately received $900 cash. The company received $10,000 cash from a client in payment for services to be provided next year. The company received $3,500 cash from a client in partial payment of accounts receivable. The company borrowed $5,000 cash from the bank by signing a note payable.
Required:
Prepare general journal entries for the above transactions of Valdez Services.
The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of units Labor hrs per unit Machine hours per unit Blinks 1,000 4 5 Dinks 2,000 2 8 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000. The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the Single Plantwide Factory Overhead Rate for Blinks? Group of answer choices $19.50 $37.45 $78.00 $56.00
Answer:
Single Overhead Absorption rate = $19.5 per hour
Explanation:
Overhead absorption rate = Estimate overhead /Estimated labor hours
Estimated overhead = $84,000 + $72,000= 156 000
Estimated labour hours= ( 1000×4) + (2000× 2)=8,000 hours
Overhead absorption rate = 156,000/8,000 hours =$19.5 per hour
Single Overhead Absorption rate = $19.5 per hour
6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. Funds spent by city governments to renovate their buildings The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government The costs of air and water pollution The variety of goods available to consumers When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of automotive parts from Canada causes in US GDP.
Answer:
The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
The costs of air and water pollution
The variety of goods available to consumers
It increases investment spending by businesses
Decreasing net export
No change
Explanation:
Gross domestic product is the sum of the goods and services produced in an economy within a given period which is usually a year.
Gross domestic product calculated using the expenditure approach = Consumption spending + Investment spending + net export + government spending
Items not included in the calculation of GDP:
1. Intermediate goods
2. Externalities e.g. pollution
3. Measures of welfare available to individuals
4. Transactions not reported to the government.
Funds spent by city governments to renovate their buildings are included in GDP as part of investment spending.
Purchase of automative parts would be included in GDP as part of investment spending. So investment spending would rise. Also, it would be recorded as an import and import is a negative function of GDP and thus net export would decrease . As a result, the increase in investment spending would be offset by the decrease in net export and there would be no change in GDP
I hope my answer helps you
The balance sheet for Campbell Corporation follows:________.
Current assets $238,000
Long-term assets (net) 756,000
Total assets $994,000
Current liabilities $156,000
Long-term liabilities 444,000
Total liabilities 600,000
Common stock and retained earnings 394,000
Total liabilities and stockholders’ equity $994,000
Required Compute the following. (Round ""Ratios"" to 1 decimal place.)
a. Working Capital?
b. Current Ratio?
c. Debt to assets Ratio?
d. Debt to equity Ratio?
Answer:
a.
$82,000
b.
1.53
c.
0.6
d.
1.52
Explanation:
a.
Working capital is the net of current assets and current liabilities.
Working Capital = Current Asset - Current Liabilities
Placing values in the formula
Working Capital = $238,000 - $156,000
Working Capital = $82,000
b.
Current ratio is the ratio of current asset and liabilities.
Current Ratio = Current Assets / Current Liabilities
Placing values in the formula
Current Ratio = $238,000 / $156,000
Current Ratio = 1.53
c.
Debt to asset ratio is the ratio of debt to total assets of the company.
Debt to assets Ratio = Total Liabilities / Total Assets
Placing values in the formula
Debt to assets Ratio = $600,000 / $994,000
Debt to assets Ratio = 0.60
d.
Debt to equity ratio is the ratio of debt to equity of the company.
Debt to equity Ratio = Total Liabilities / equity
Placing values in the formula
Debt to equity Ratio = $600,000 / $394,000
Debt to equity Ratio = 1.52
On September 1, 2021, Daylight Donuts signed a $188,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2022. Daylight Donuts should report interest payable at December 31, 2021, in the amount of: (Do not round your intermediate calculations.)
Answer:$3,760--- Interest payable at December 31, 2021.
Explanation:
Interest payable is current liability recorded on a firm's balance sheet that shows the amount of interest which a firm owes currently but has not yet paid as of the date recorded on the of the balance sheet.
For daylight donuts
September --- December = 4 months
interest payable within the four months= $188,000 X 6% X 4/12= $3,760
Daylight Donuts should report interest payable at December 31, 2021, in the amount of $3,760
A bond with a 7-year duration is worth $1,079, and its yield to maturity is 7.9%. If the yield to maturity falls to 7.75%, you would predict that the new value of the bond will be approximately:_____________.
Answer:
$1,087.27
Explanation:
The new value of the bond is the new price of the bond calculated using yield to maturity of 7.75% instead of the original yield of 7.9% using excel pv formula provided thus:
=-pv(rate,nper,pmt,fv)
Before that we need to determine the pmt which is the annual coupon on the bond.
=pmt(rate,nper,-pv,fv)
rate is the original yield ot 7.9%
nper is the duration of 7 years
pv is the initial market price of $1,079
fv is the face value of $1000
=pmt(7.9%,7,-1079,1000)=$ 94.12
The new price is computed thus:
=-pv(7.75%,7,94.12,1000)=$1,087.27
Denominator hours for May 15,000 Actual hours worked during May 14,000 Standard hours allowed for May 12,000 Flexible budget fixed overhead cost $45,000 Actual fixed overhead costs for May $48,000 Danske Company had total underapplied overhead of $15,000. Additional information is as follows: Variable Overhead: Applied based on standard direct labor hours allowed $42,000 Budgeted based on standard direct labor hours 38,000 Fixed Overhead: Applied based on standard direct labor hours allowed $30,000 Budgeted based on standard direct labor hours 27,000 What is the actual total overhead for the period?
Answer:
$87,000
Explanation:
As per given data
Actual hours = 15,000 hours
Standard hours = 14,000 hours
Standard hours allowed = 12,000 hours
Flexible budget fixed overhead cost = $45,000
Actual fixed overhead costs = $48,000
Underapplied overhead = $15,000
Variable Overhead:
Applied based on standard direct labor hours allowed = $42,000
Budgeted based on standard direct labor hours = 38,000 hours
Fixed Overhead:
Applied based on standard direct labor hours allowed = $30,000
Budgeted based on standard direct labor hours = 27,000 hours
Total Overhead is the sum of all the variable and fixed overheads applied to the products and under / over applied overheads.
Applied overheads are the amount of overheads applied using actual activity and standard rate.
Actual Overheads = Applied variable overheads + Applied fixed overheads + under applied overheads
Placing values in the formula
Actual Overheads = $42,000 + $30,000 + $15,000
Actual Overheads = $87,000
Kenrick Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts equipment expense and indirect labor to three activity cost pools Processing, Supervising and Other based on resource consumption. Data to perform these allocations appear below.
Overhead costs
Equipment expense $18,000
Indirect labor $2,000
Distribution of Resource Consumption Across activity cost pools
Activity Cost Pools
Processing Supervising Other
Equipment expense 0.10 0.30 0.60
Indirect labor 0.30 0.40 0.30
In the second stage. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products as follows.
Activity
MHs (Processing) Batches (Supervising)
Product U4 5,500 600
Product C7 4,500 1,400
Total 10,000 2,000
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
Sales and Direct Cost Data:
Product U4 Product C7
Sales (total) $58,400 $31,800
Direct materials (total) $26,900 $13,900
Direct labor (total) $25,000 $11,200
What is the product margin for Product U4 under activity-based costing?
a. $3,500
b. $6,500
c. $5,180
d. $3,320
Answer:
D.) $3320
Explanation:
Product margin = (Sales - direct labor - direct materials - overhead)
$(58400 - 26900 - 25000 - 3180) = $3,320
Check attached picture for detailed explanation
According to the Coase theorem, private parties can negotiate to an efficient solution in the presence of externalities if the is (are) relatively low.Suppose Jeremy, Francis, and Andrew are part of Mu Epsilon Nu, a college fraternity known for its very loud, rambunctious weekend parties. The parties annoy many of the residents in nearby apartment complexes due to the loud music and blaring neon lights. This is a(n)example:________
a.external cost
b. positive externality
c. neither
Why are z-scores useful?
A. They help us calculate average sales.
B. They assume a non-normal distribution
C. They let us compare variables with different scales
D. They allow us to calculate the percentage of profits
Answer:
[tex]\pi \: option \: a \: and \: c \: [/tex]
Explanation:
Hope it works out !!!
g A decrease in the price of a good would a. increase the supply of the good. b. increase the quantity demanded of the good. c. give producers an incentive to produce more to keep profits from falling. d. shift the supply curve for the good to the left.
Answer:
. b. increase the quantity demanded of the good
Explanation:
An decrease in the price of the good increases the demand for the good according to the law of demand.
The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
An increase in price would increase supply.
A change in price leads to a movement along either the demand or supply curve.
Other factors other than the change in price leads to a movement of these curves.
I hope my answer helps you
Answer:
A decrease in the price of a good would increase the supply of the good.
A decrease in the price of a good would NOT increase the quantity demanded of the good.
A decrease in the price of a good would NOT give producers an incentive to produce more to keep profits from falling.
Someone is retiring next year.What would be an appropriate amount of risk to take with their investments?
"The Price King Auto Mall pays their sales staff by commission. They are paid a percent of the profit the dealership makes on each sold car. If the profit is $900 or less, the commission rate is 18%. If the profit is great than $900 and less than or equal to $1,500, the commission rate is 20% of the profit. If the profit is higher than $1,500, the rate is 25% of the profit. Jared sold a car that made a profit of $2500. What is the amount of commission he will receive
Answer:
$625
Explanation:
He made a profit of $2500 which is greater than $1500, so he would earn a 25% commmision
25% of $2500 = $625
I hope my answer helps you
On January 1, Year 1, Li Company purchased an asset that cost $35,000. The asset had an expected useful life of five years and an estimated salvage value of $7,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year, the company revised its estimated salvage value to $3,500. What is the amount of depreciation expense to be recognized during Year 4
Answer:
The amount of depreciation expense to be recognized during Year 4 is $7,350
Explanation:
In order to calculate the amount of depreciation expense to be recognized during Year 4 we would have to calculate first the Depreciation as per straight line method as follows:
Depreciation as per straight line method=(Cost-Residual value)/Useful life
=($35,000-$7,000)/5=$5,600
Hence, book value as on beginning of the fourth year=$35,000-($5,600*3)=$18,200
Hence, depreciation revised for the 2 remaining years=($18,200-$3,500)/2
=$7,350
The amount of depreciation expense to be recognized during Year 4 is $7,350
Rick is planning to invest the following amounts at 7 percent: $254 at the end of year 1, $412 at the end of year 2, and $1,230 at the end of year 3. How much money will he have saved at the end of year 3
Answer:
$1,961.65
Explanation:
The formula for finding future value :
FV = P (1+r)^n
P = Present value
R = interest rate
N = number of years
First step is to find the present value of the cash flows.
PV can be found using a financial calculator
Cash flow in year 1 = $254
Cash flow in year 2 = $412
Cash flow in year 3 = $1,230
I = 7%
Present value = $1,601.29
I would now input the value of p in the FV formula
$1,601.29 ( 1 + 0.07) ^3 = $1,961.65
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Assume there are 1000 homes in a flood zone in an area in which sea levels are rising. An additional 1000 homes are above the flood zone and at less risk. A levee could be built to prevent the rise in sea level from affecting the homes. It is worth $20,000 per home in the flood zone to have the levee built. It is worth $5,000 per home not in the flood zone to have the levee built. The levee costs $22,000,000 to build. Which of these makes the most economic sense?
A. The government should leave this to the free market.
B. The free market will have difficulty building the levee because the levee is non-rival and non-excludable. So the government may have to intervene and force homeowners to pay through taxes to fund the levee as the benefits exceed the costs.
C. The free market will have difficulty building the levee because the levee is non-rival and non-excludable. However the benefits do not exceed the costs anyway so there is no need for the government to intervene.
D. The free market will have some difficulty building the levee because the levee is non-rival. However it is excludable. So there is only a partial argument for government intervention here.
Answer: The free market will have difficulty building the levee because the levee is non-rival and non-excludable. So the government may have to intervene and force homeowners to pay through taxes to fund the levee as the benefits exceed the costs.
Explanation:
From the question, we are informed that if there are 1000 homes in a flood zone in an area whereby the sea levels are rising and there's an additional 1000 homes that are above the flood zone and are at less risk. Since the levee costs $22,000,000 to build, the best thing to do economic sense will be that the free market will have difficulty building the levee because the levee is non-rival and non-excludable.
It should be noted that in a free market, decisions are made by individuals through price signals and forces of demand and supply. Therefore since this is a public good as it is non rival and non excludeable, there will be need for the intervention of the government in order to collect taxes from the homeowners.
Answer:b
Explanation: I did this
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 116,000 $ 58,000 $ 174,000 Variable expenses 35,800 7,700 43,500 Contribution margin $ 80,200 $ 50,300 130,500 Fixed expenses 83,250 Net operating income $ 47,250 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Claimjumper Makeover
Total Sales:
Claimjumper= $116,000
Makeover= $58,000
Total= $174,000
Variable expenses:
Claimjumper= $35,800
Makeover= $7,700
Total= $43,500
Contribution margin:
Claimjumper= $80,200
Makeover= $50,300
Total= $130,500
Fixed expenses 83,250
Sales proportion:
Claimjumper= 116,000/174,000= 0.67
Makeover= 58,000/174,000= 0.33
Variable cost proportion:
Claimjumper= 35,800/43,500= 0.82
Makeover= 7,700/43,500= 0.18
First, we need to calculate the contribution margin ratio for the company:
Weighted average contribution margin ratio= (weighted average selling price - weighted average unitary variable cost)/ weighted average selling price
Weighted average contribution margin ratio= 130,500/174,000
Weighted average contribution margin ratio= 0.75
Now, we can calculate the break-even point in dollars:
Break-even point (dollars)= fixed costs/ Weighted average contribution margin ratio
Break-even point (dollars)= 83,250/0.75
Break-even point (dollars)= $111,000
Finally, we structure the income statement:
Sales= 111,000
Total variable costs= (111,000*0.25)= (27,750)
Income statement:
Sales:
Claimjumper= 111,000*0.67= 74,370
Makeover= 111,000*0.33= 36,630
Variable costs:
Claimjumper= 27,750*0.82= (22,755)
Makeover= 27,750*0.18= (4,995)
Contribution margin= 83,250
Fixed costs= 83,250
Net operating income= 0
Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment
Answer and Explanation:
The computation is shown below:
But before reaching any decision, first we have to find out the ROI for new investment which is
ROI of new investment = net operating income ÷ investment
= $12,950 ÷ $70,000
= 18.50%
Now
If investment taken place, then overall ROI is
= Total net operating income ÷ Total average operating assets
= ($380,000 + $12,950) ÷ ($2,000,000 + $70,000)
= 18.98%
As we can see that the overall ROI i.e 18.98% is less than the currently ROI i.e 20% so he should not recommend ROI as it is shows fallen
Shelton Co. purchased a parcel of land six years ago for $873,500. At that time, the firm invested $145,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $54,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $925,000. What value should be included in the initial cost of the warehouse project for the use of this land?
Answer:
$925,000
Explanation:
The value of the land that would be included in the initial cost of the warehouse is it market value of $925,000 which the land currently commands.
The rationale for this are numerous:
Firstly,if the land was not previously owned by Shelton Co, would have to purchase a similar land at its market value.
Secondly, if the land was not deployed to the project, it could be sold now for cash at $925,000
Frances loves shopping for clothes, but considering the state of the economy, she has decided to start saving. At the end of each year, she will deposit $700 in her local bank, which pays her 9% annual interest. Frances decides that she will continue to do this for the next 5 years. Frances’s savings are an example of an annuity. How much will she save by the end of 5 years, rounded to the nearest whole dollar?
Answer:
Future Value= $4,189.30
Explanation:
Giving the following information:
Investment= $700 annual
Interest rate= 9%
Frances decides that she will continue to do this for the next 5 years.
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {700*[(1.09^5)-1]} / 0.09
FV= $4,189.30
Identifying Cost Drivers in an ABC system
Patterson makes electronic components for handheld games and has identified several activities as components of manufacturing overhead: factory rent, factory utilities, quality inspections, materials handling, machine setup, employee training, machine maintenance, inventory security costs, and supervisor salaries. For each activity that Patterson has identified, choose a cost driver to allocate that cost. Explain your reasoning.
Answer:
Factory Rent : No of days worked
Factory Utilities: Units of utility consumed
Quality Inspection : Hours of inspection on production run
Material Handling : No of orders received
Machine Setup : Machine hours
Employee Training : Hours worked
Machine Maintenance : Machine hours used
Inventory Security Costs : Finished goods units
Supervisor Salary : No of workers
Explanation:
A cost driver is unit of activity on which cost is allocated. Cost driver is considered as a direct cause of the cost. In ABC costing cost are allocated to the goods based on the cost drivers.
lyssa and Crystal are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Alyssa takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Crystal takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Alyssa's opportunity cost of brewing a gallon of root beer is__________ , and Crystal's opportunity cost of brewing a gallon of root beer is__________ , has an absolute advantage in brewing root beer, and has a comparative advantage in brewing root beer. If Alyssa and Crystal trade foods with each other, will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is of root beer, and the lowest price that makes both roommates better off is of root beer per pizza.
Answer:
a. 1.5 pizza
b. 1.39 pizza
c. Alyssa has an absolute advantage in brewing beer
d. Crystal has a comparative advantage in brewing beer
e. Crystal will easily trade away pizza for root beer
f. there's no limit to the highest price
g. lowest price is 0.719 beer root/pizza
Explanation:
Alyssa takes 3 hrs to brew a gallon of root beers and 2 hrs to make a pizza
Crystal takes 7 hrs to brew a gallon of root beer and 5 hrs to make a pizza
Alyssa make 1 gallon/3 hrs = 0.33 gallons/hr of beer, and the same way makes 0.5 pizza/hr
Crystal makes 0.143 gallon/hr of beer, and 0.2 pizza/hr
for Alyssa, 0.33 gallons/hr = 0.5 pizza/hr, therefore
1 gallon of beer = 0.5/0.33 = 1.51 pizza
for crystal, 1 gallon of beer = 0.2/0.143 = 1.39 pizza
price of pizza:
Alyssa = 0.662 root beer/pizza
Crystal = 0.719 root beer/pizza
Insect control devices must and be able to retain the electrocuted insects inside the device
Answer:
Be rated for safety by the USDA
Explanation:
Presence of insect pest around areas of food production poses a lot of risk such as contamination of food which might impact negatively on public health. However, in an attempt to control these insect pests, the problem of food contamination as a result of insect infestation that we're trying to solve might still be increased if safety measures are not strictly adhered to when manufacturing and using insect control devices.
Hence, it is necessary and of utmost importance that insect control devices must be rated for safety by USDA to ensure compliance with laid down measures and protocols for safe control of insect without contamination of food.
10. Define transfer pricing. Describe at least two methods of defending transfer prices if they are challenged by tax authorities. How are transfer prices used in managing multinational tax exposures
Answer:
Explanation:
(A) What is Transfer Pricing?
This is an accounting practice that sets prices for goods and services bought and sold between related entities.
(B) Two methods of defending transfer prices if they are challenged by tax authorities:
1. Treating the related or commonly controlled entities as if they are 2 independent entities.
2. Claiming that services rendered between the 2 related entities could not be priced.
(C) How are transfer prices used in managing multinational tax exposures?
- Transfer Prices help reduce import and export duties. They are used to manage multinational tax exposures by exporting or shipping the goods at a low transfer price, to subsidiaries or related entities in countries with high tariff rates.
- It reduces income taxes and corporate taxes in high tax countries, by overpricing goods that are sold/transferred to subsidiaries in countries with low tax rate.
A local radio commercial costs $600 and reaches an estimated 10,250 listeners. A local cable commercial costs $1000 and reaches an estimated 18,500 viewers. Which medium provides the lowest CPM?
a. The radio commercial
b. The cable commercial
c. The radio and cable commercials have the same CPM
d. The CPM cannot be calculated given the limited information provided
e. None of the above
Answer:
b. The cable commercial
Explanation:
CPM or cost per mille is a measure used in advertising to determine how effectively a promotional message is getting to its audience. It is the cost of getting an advert in front of 1,000 people.
In this scenario when we calculate CPM for the radio station
$600 = 10,250 listeners
x= 1,000 listeners
Cross multiply
x= (600 * 1,000) ÷ 10,250 = $58.54
For the local cable commercial
$1000 = 18,500 viewers
y = 1,000 viewers
Cross multiply
y= (1,000 * 1,000) ÷ 18,500= $54.05
