Answer:
Assets
Explanation:
Dropping Unprofitable Department Penn Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,052,000 $900,000 $152,000 Cost of sales 654,000 540,000 114,000 Gross profit $398,000 $360,000 $38,000 Direct expenses $177,000 $150,000 $27,000 Common expenses 140,000 120,000 20,000 Total expenses $317,000 $270,000 $47,000 Net income (Loss) $81,000 $90,000 $(9,000) a. Calculate the gross profit percentage for departments 1-3 combined and for department 4. Department 1-3 Answer 40 % Department 4 Answer 25 % b. What effect would elimination of department 4 have had on total firm net income
Answer:
A. Department (1-3) = 40%
Department 4 =25%
B. $70,000
Explanation:
A. Calculation for the gross profit percentage for departments 1-3 combined and for department 4.
Using this formula
Gross profit percentage = Gross Profit /Sales
Let plug in the formula
Department (1-3) (360,000/900,000) = 40%
Department 4 (28,000/152,000) =25%
B. Calculation for the effect that would elimination of department 4 have had on total firm net income
First step is to find the Increase(Decrease) in overall net income
Using this formula
Increase(Decrease) in overall net income = Direct expenses - Gross profit
Let plug in the formula
Increase(Decrease) in overall net income= 27,000 - 38,000
Increase(Decrease) in overall net income= (11,000) decrease
Second step is to find the net operating income
Net operating income= 81,000 - 11,000
Net operating income= $70,000
Therefore the firm's net operating income would be $70,000
Flyer Corporation manufactures two products, Product A and Product B. Product B is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product A. Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for Product A. Product B is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,500 units of Product B and 22,000 units of Product A during the current year. Unit costs for materials and direct labor are:
Answer:
since the numbers are missing, i looked for similar questions:
Product A Product B
Direct material $9 $20
Direct labor $7 $15
the predetermined overhead rate = $396,000 / [(5,500 x 1.5) + (22,000 x 3)] = $396,000 / 74,250 direct labor hours = $5.333333 per direct labor hour
total production costs per unit:
Product A = $9 + $7 + ($5.33333 x 1.5) = $24
Product B = $20 + $15 + ($5.33333 x 3) = $51
Bretton Woods was a multinational meeting of economists and diplomats to discuss the A. Staggering economic problems that would face the postwar world. B. Plans for preventing another economic collapse like the Great Depression. C. Creation of an International Monetary Fund. D. All of the above
Answer:
D. All of the above
Explanation:
The Bretton Woods Agreement represents the United Nations Monetary and Financial Conference that was held in Bretton Woods, New Hampshire from 1st - 22nd of July 1944 by about 730 delegates from 44 countries to discuss about pressing economic issues and trends.
Bretton Woods was a multinational meeting of economists and diplomats to discuss the following economic issues;
1. Staggering economic problems that would face the postwar world.
2. Plans for preventing another economic collapse like the Great Depression.
3. Creation of an International Monetary Fund.
Define each of the following terms:
(a) Contraction
(b) Business cycle
(c) Trough
(d) Disposable income
(e) Net domestic product
Answer: See explanation
Explanation:
Contraction: Contraction, is a phase of the business cycle that simply occurs gene there's decline in the economy. At this phase, the demand for goods and services reduces and there's decline in growth.
Business cycle: The business cycle shows the movement of the GDP which can either be upward or downward. It shows how the economy's doing.
Trough: The trough is a phase in the business cycle whereby the gross domestic product for a particular economy has stopped reducing and the economy has started to rise.
Disposable income: This is the income that is left with an individual after personal income tax has been removed from the personal income of such individual.
Net domestic product: Net domestic product is when depreciation is subtracted from the gross domestic product.
ust before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it? Explain. (Assume the new order will consume the remainder of the machine's useful life.) (Select the best choice below.) A. Yes, the cost of taking the order is the lost after-tax cash flow of $163,383 from selling the machine. B. Yes, the cost of taking the order is the extra depreciation on the machine. C. No, Jones already owns the machine, so there is no cost to using it for the order. D. Yes, the cost of taking the order is the lost $85,824 in book value.
Answer:
A. Yes, the cost of taking the order is the lost after-tax cash flow of $163,383 from selling the machine.
Explanation:
This question is about opportunity costs. Opportunity costs are benefits lost or extra costs associate to choosing one activity or investment over another alternative.
If Jones decides to accept the special order, he will not be able to sell the machine, so he will lose the $163,383 that he could have earned by selling it (that is the opportunity cost of accepting the special order).
If the budget at completion for a project is $200,000 and the cost performance index is .5, what is the estimate at completion
Answer:
$400,000
Explanation:
Estimate at completion in finance can be explained as forecast cost of a particular project. It can be estimated by using the expression below
Estimate at completion =[Budget at Completion] /(Cost Performance Index)
From the question, our budget at completion for a project = $200,000
cost performance index is = 0 .5,
Then just input the values we have,
Estimate at completion= 200000/0.5
=$400,000
Therefore, Estimate at completion is
$400,000
Describe three key inputs (or factors of production) and fixed and variable costs involved in the production of your chosen product or service. Analyze the factors that impact your choice of inputs to produce the chosen product or service. Examine the production decisions that you would make based on the analysis of the factors impacting the choice of inputs to produce the chosen product or service.
Answer:
The product is Organic and Inorganic Ice cream.
It will be sold from a high street location.
The focus is on the wholesale market.
The equipment consists of the following:
One unit of pasteuriser linked One unit of homogeniser One unit of cooler One unit of ageing vat One large batch freezerOne unit each of fruit–feeder and a ripple-pumpOne Blast Freezer and One Cold StoreAnother factor is labour. For a small-sized operation like ours, we don't need more than 3 staff:
Production and Quality Control executiveAccounting and Marketing executive and front desk officerThe size of labour is small because the company is small and is focused on wholesalers, not retailers. It also makes for good business sense to keep to a very lean Human Resource structure. Effectiveness and efficiency will be optimised with the use of technology.
Our choice to go wholesale stems from the fact that there is a huge gap for unbranded icecream. Because it is cheaper, people don't mind forgoing the big brands for an equally good cup or bucket of ice cream.
Cheers
What benefits do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?
Answer:
Customers receive the following benefits in return for the price they pay when they buy membership at Planet Fitness:
a) Fitness training
b) Physical exercise
c) Relaxation and comfort
d) Clean and safe environment and conducive atmosphere
e) the friendly and courteous staff is a bonus
Explanation:
Planet Fitness operates fitness centers and clubs around the world under franchises. Planet Fitness has adequate and clean cardio machines, free weights of up to 80 lbs., curl bars, and other strength training equipment and accessories. The average gym user is offered abundant, 5-star, and world-class Cardio equipment and services.
In consumer theory, utility is
A. the want-satisfying power of a good or service.
B. the worth of a good as a team member in combination with other goods.
C. the usefulness of a good or service in performing several different functions.
D. the relation a good or service has to gas, electric and water services.
Answer:
A. the want-satisfying power of a good or service.
Explanation:
Utility meaning the want that satisfies the consumer after consuming the product or service. It directly impacts the demand of the product and the price of the good and service that are offered by the company to the consumer
Therefore according to the given option, the options A is correct and the same is to be considered
The expected return on the market portfolio is 12%, and the relevant risk-free rate is 4.2%. What is the equity premium?
Answer:
7.8%
Explanation:
The expected return on the market portfolio is 12 percent
The risk free rate is 4.2 percent
Therefore the equity premium can be calculated as follow
= expected return - risk free rate
= 12% - 4.2%
= 7.8%
Hence the equity premium is 7.8%
Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group.
a) True
b) False
Answer:
a) True
Explanation:
Given that it can be difficult to capture the whole market considering limited time, capital, and labor. Consequently, Marketing-oriented managers see segmenting as a process of aggregating people with similar needs into a group. This is because, Segmentation is a technique of dividing the marketplace into components, which are available, and profitable with considerable probable growth.
Hence, in this case, the correct answer is TRUE.
"Sippy was thinking of buying Christich’s house. Henoticed watermarks on the ceiling, but the agentshowing the house stated that the roof had beenrepaired and was in good condition. Sippy was nottold that the roof still leaked and that the repairs hadnot been able to stop the leaking. Sippy bought thehouse. Some time later, heavy rains caused water toleak into the house, and Sippy claimed that Christichwas liable for damages. What theory would he relyon? Decide. [Sippy v. Christich, 609 P.2d 204(Kan. App.)"
Answer: theory of active concealment
Explanation:
Active concealment is when an information that's meant to be shared to an individual is been hidden from such individual by the other party.
In this scenario, the agent intentionally refused giving Sippy the necessary information regarding the house as some facts were hidden.
Therefore, Sippy will rely on active concealment theory.
Ethical decision making begins in the marketing department. True/False
Answer:
false
Explanation:
Ethical decision making does not begin in the marketing department
The given statement "Ethical decision making begins in the marketing department" can be marked as true.
Wat does Ethical decision making mean?Ethical decision-making refers to the process of taking a decision that is based on core character values such as loyalty, respect, responsibility, fairness, good citizenship etc.
Ethical decisions generate ethical behaviors and provide a foundation for the good business practices. It suggests someone is honest and respectful in communications whether written or oral. It helps the business to grow.
It is really important to conduct the business on ethical values as it helps build trust and create transparency. Thus, it can be concluded that ethical decision making begins in the marketing department is a true statement.
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Prepare journal entries to record the following merchandising transactions of Lowe’s, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Aron.) Aug. 1 Purchased merchandise from Aron Company for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $5,600 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. 8 Purchased merchandise from Waters Corporation for $7,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. 9 Paid $210 cash for shipping charges related to the August 5 sale to Baird Corp. 10 Baird returned merchandise from the August 5 sale that had cost Lowe’s $500 and was sold for $1,000. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe’s received a credit memorandum from Waters granting a price reduction of $700 off the $7,000 of goods purchased. 14 At Aron’s request, Lowe’s paid $500 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10. 18 Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. 19 Sold merchandise to Tux Co. for $4,800 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400. 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe’s sent Tux a $800 credit memorandum toward the $4,800 invoice to resolve the issue. 29 Received Tux’s cash payment for the amount due from the August 19 sale less the price allowance from August 22. 30 Paid Aron Company the amount due from the August 1 purchase.
Answer:
Aug 1 Dr Inventory $8,000
Cr Accounts Payable - Aaron $8,000
Aug 5 Dr Accounts Receivable - Baird Corp $5,600
Cr Sales $5,600
Aug 5 Dr Cost of Good Sold $4,000
Cr Inventory $4,000
Aug 8 Dr Inventory $7,000
Cr Accounts Payable - Walter Corporation $7,000
Aug 9 Dr Freight - Out $210
Cr Cash $210
Aug 10 Dr Sales Return and Allowance $1,000
Cr Accounts Receivable - Baird Corp $1,000
Aug 10 Dr Inventory $500
Cr Cost of Good Sold $500
Aug 12 Dr Accounts Payable - Walter Corporation $700
Cr Inventory $700
Aug 14 Dr Accounts Payable - Aaron $500
Cr Cash $500
Aug 15 Dr Cash $4,508
[(100%-2%)×$4,600]
Dr Discount on Sales $92
[($5,600-$1,000) x2%]
Cr Accounts Receivable - Baird Corp $4,600
($5,600-$1,000)
Aug 18 Dr Accounts Payable - Walter Corporation $6,300
($7,000-$700)
Cr Discount on Purchase $63
[($7,000-$700) x1%]
Cr Cash $6,237
[(100%-1%)×$6,300]
Aug 19 Dr Accounts Receivable - Tux Co $4,800
Cr Sales $4,800
Aug 19 Dr Cost of Good Sold $2,400
Cr Inventory $2,400
Aug 22 Dr Sales Return and Allowance $800
Cr Accounts Receivable - Tux Co $800
Aug 29 Dr Cash $4,000
Cr Accounts Receivable - Tux Co $4,000
($4,800-$800)
Aug 30 Dr Accounts Payable - Aaron $7,500
Cr Cash $7,500
($8,000-$500)
Explanation:
Preparation of Journal entries
Aug 1 Dr Inventory $8,000
Cr Accounts Payable - Aaron $8,000
(To record purchase of inventory)
Aug 5 Dr Accounts Receivable - Baird Corp $5,600
Cr Sales $5,600
(To record sale of merchandise)
Aug 5 Dr Cost of Good Sold $4,000
Cr Inventory $4,000
(To record cost of good sold)
Aug 8 Dr Inventory $7,000
Cr Accounts Payable - Walter Corporation $7,000
(To record purchase of inventory)
Aug 9 Dr Freight - Out $210
Cr Cash $210
(To record freight outward expense)
Aug 10 Dr Sales Return and Allowance $1,000
Cr Accounts Receivable - Baird Corp $1,000
(To record sales return)
Aug 10 Dr Inventory $500
Cr Cost of Good Sold $500
(To record restore the inventory )
Aug 12 Dr Accounts Payable - Walter Corporation $700
Cr Inventory $700
(To record price reduction)
Aug 14 Dr Accounts Payable - Aaron $500
Cr Cash $500
(To record payment of freight charges on behalf of Aaron)
Aug 15 Dr Cash $4,508
[(100%-2%)×$4,600]
Dr Discount on Sales $92
[($5,600-$1,000) x2%]
Cr Accounts Receivable - Baird Corp $4,600
($5,600-$1,000)
(To record amount received from Baird Corp)
Aug 18 Dr Accounts Payable - Walter Corporation $6,300
($7,000-$700)
Cr Discount on Purchase $63
[($7,000-$700) x1%]
Cr Cash $6,237
[(100%-1%)×$6,300]
(To record payment made to Walter Corporation)
Aug 19 Dr Accounts Receivable - Tux Co $4,800
Cr Sales $4,800
(To record sale of merchandise)
Aug 19 Dr Cost of Good Sold $2,400
Cr Inventory $2,400
(To record cost of good sold)
Aug 22 Dr Sales Return and Allowance $800
Cr Accounts Receivable - Tux Co $800
(To record price reduction for sales made to Tux Co)
Aug 29 Dr Cash $4,000
Cr Accounts Receivable - Tux Co $4,000
($4,800-$800)
(To record payment received from Tux Co)
Aug 30 Dr Accounts Payable - Aaron $7,500
Cr Cash $7,500
($8,000-$500)
(To record payment made to Aaron)
Ivan's, Inc., paid $474 in dividends and $582 in interest this past year. Common stock increased by $192 and retained earnings decreased by $118. What is the net income for the year?
Answer:
$356
Explanation:
Ivan incorporation paid $474 in dividend
$582 was paid in interest
Common stock increased by $192
Retained earnings decreased by $118
Therefore the net income for the year can be calculated as follows
= Dividend - decrease in retained earnings
= $474-$118
= $356
Hence the net income for the year is $356
Based on the following information, determine the location quotient for KuDu City and whether this city has a competitive advantage in the amusement industry.
Employment in Amusements and Recreation in KuDu City: 54,446;
Total Employment in KuDu City: 578,477;
Employment in Amusements and Recreation (nationally): 1,381,377;
Total Employment (nationally): 106,201,232.
Answer: 7.24
Explanation:
The location quotient for this question can be calculated by;
= ( Employment in Amusements and Recreation in KuDu City / Total Employment in KuDu City) / (Employment in Amusements and Recreation (nationally) / Total Employment (nationally))
= (54,446/578,477) / (1,381,377/ 106,201,232)
= 7.2359
= 7.24
Assume the sales budget for April and May is 48,000 units and 50,000 units, respectively. The production budget for the same two months is 45,000 units and 46,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company always maintains raw materials inventory equal to 20% of the following month's production needs. How many pounds of raw material need to be purchased in April
Answer:
Purchases= 135,600 pounds
Explanation:
Giving the following information:
The production budget for the same two months is 45,000 units and 46,000 units, respectively.
Each unit of finished goods required 3 pounds of raw materials.
To calculate the purchases for April, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 45,000*3 + (46,000*3)*0.2 - (45,000*3)*0.2
Purchases= 135,000 + 27,600 - 27,000
Purchases= 135,600 pounds
Given the data, the number of pounds of materials to be purchased in April is 135,600 pounds.
Data and Calculations:
April May
Sales units 48,000 50,000
Production units 45,000 46,000
Number of pounds of raw materials per unit = 3
Material Requirement:
April May
Production materials required 135,000 138,000 (46,00 x 3)
Ending inventory required 27,600 0
Total materials for production 162,600
Beginning inventory 27,000 27,600 (138,000 x 20%)
Purchases of materials 135,600
Thus, the number of pounds of raw materials to be purchased for April production is 135,600.
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The June 1 work in process inventory consisted of 5,300 units with $20,680 in materials cost and $17,320 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,800 units were started into production. The June 30 work in process inventory consisted of 8,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 11. What is the cost of ending work in process inventory for conversion
Answer:
$22,145
Explanation:
First, calculate the equivalent units of production with respect to conversion costs.
Conversion Costs
Ending Work In Process (8,600 × 50%) = 4,300
Completed and Transferred (34,500 × 100%) = 34,500
Equivalent units of production with respect to conversion costs = 38,800
Then Calculate the total Conversion Costs as follows :
Conversion cost in beginning work in process $ 17,320
Add conversion costs added during the year :
Direct Labor $ 82,500
Overhead $100,000
Total Conversion Cost $199,820
Finally, calculate the cost per equivalent unit for conversion and cost of ending work in process inventory for conversion
Cost per equivalent unit = Total Cost ÷ Total Equivalent Units
Therefore,
Cost per equivalent unit = $199,820 ÷ 38,800
= $5.15
Therefore,
Cost of ending work in process inventory for conversion = 4,300 × $5.15
= $22,145
Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 7% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. Record sale 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar. $ 3. Prepare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank. Record collection of note
Answer:
1) February 1, 2019, service revenue
Dr Notes receivable 135,000
Cr Service revenue 135,000
2) if the note is collected on December 1, 2019, the amount of interest revenue = $135,000 x 7% x 10/12 months = $7,875
3) December 1, 2019, cash collected
Dr Cash 142,875
Cr Notes receivable 135,000
Cr Interest revenue 7,875
Teakap, Inc., has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2016. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. What is the value of long term debt?
Answer:
$803,010
Explanation:
Calculation for the value of long term debt
First step is to find the Stockholders' equity
Stockholders' equity = $1,500,000 + $1,468,347 Stockholders' equity= $2,968,347
Last step is to find the Long-term debt
Using this formula
Value of Long-term debt= Total assets – Current liabilities – Stockholders' equity
Let plug in the formula.
Value of Long-term debt= $4,812,369 – $1,041,012 – $2,968,347
Value of Long-term debt = $803,010
Therefore the Value of Long-term debt
will be $803,010
France and England both produce wine and cloth with constant opportunity costs. France can produce 150 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine. England can produce 50 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine. We can conclude that France produces ________ units of wine and ________ units of cloth and that France consumes ________ units of wine and ________ units of cloth.
a.150; 100; 100; 100
b.150; 0; 100; 50
c.150; 0; 50; 50
d. 0; 100; 50; 50
Answer: B)150; 0; 100; 50
Explanation:
Based on the information that has been provided in the question, for France to produce a barrel of wine, it'll have an opportunity cost of:
= 100/150 = 0.67 bolts of clothes
For England to produce a barrel of wine, the opportunity cost will be:
= 150/50 = 3 bolts of clothes
Based on the explanation, France has a comparative advantage in wine making as its opportunity cost is lower than that of England.
For France to produce a bolt of cloth, the opportunity cost will be:
= 150/100 = 1.5 barrel of wine
For England to produce a bolt of cloth, the opportunity cost will be:
= 50/150 = 0.33 barrel of wine
Here, England has a comparative advantage in cloth production as its opportunity cost is lower than that of France.
Therefore, we can conclude that France produces 150 units of wine and
0 units of cloth and that France consumes 100 units of wine and 50 units of cloth.
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $ 42,000 $ 44,000
Work in process 9,400 18,400
Finished goods 59,000 33,200
Activities and information for May
Raw materials purchases (paid with cash) 191,000
Factory payroll (paid with cash) 200,000
Factory overhead
Indirect materials 17,000
Indirect labor 46,000
Other overhead costs 91,000
Sales (received in cash) 1,900,000
Predetermined overhead rate based on direct labor cost 55 %
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.*
Gross profit.
Overapplied or underapplied overhead.
*Do not consider any underapplied or overapplied overhead.
Raw Materials (RM) Work in Process (WIP)
Beginning Balance 42,000 17,000 Indirect materials Beginning Balance 9,400 Cost of goods manuf.
RM purchases 191,000 172,000 DM used DM used 172,000
DL used 154,000
Overhead applied
Ending balance 44,000 Ending balance 335,400
Finished Goods (FG) Factory Overhead
Beginning Balance 59,000 Indirect materials Overhead applied
Cost of goods manuf. Indirect labor
Other overhead costs
Ending balance 59,000
Underapplied OH
Income statement (partial)
Sales
Cost of goods sold
Gross profit
Answer:
• Cost of direct materials used $172,000
• Cost of direct labor $154,000
• Cost of goods manufactured $401,700
• Cost of goods sold $427,500
• Gross profit $1,472,500
Explanation:
Please see attached detailed solution to the above questions and answers.
james Lawson's Bed and Breakfast, in a small historic Mississippi town, must decide how to subdivide (remodel) the large old home that will become its inn. There are three alternatives: Option A would modernize all baths and combine rooms, leaving the inn with four suites, each suitable for two to four adults. Option B would modernize only the second floor; the results would be six suites, four for two to four adults, two for two adults only. Option C (the status quo option) leaves all walls intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. Below are the details of profit and demand patterns that will accompany each option: Annual Profit under Various Demand Patterns Alternatives High p Average p A (modernize all) B (modernize 2nd) C (status quo) This exercise contains only part b. b) The option with the highest expected value for James Lawson's Bed and Breakfast is ▼ B C A , with an expected value of $ nothing (round your response to the nearest whole number).
Answer:
The numbers are missing, so I looked for a similar question (see attached image).
the expected value for option A (modernize everything) = (0.5 x $90,000) + (0.5 x $25,000) = $57,500the expected value for option B (modernize only second floor) = (0.4 x $80,000) + (0.6 x $70,000) = $74,000the expected value for option C (do nothing) = (0.3 x $60,000) + (0.7 x $33,000) = $41,100The option with the highest expected value is option B (modernize only second floor).
Check my work Check My Work button is now enabledItem 10Item 10 1.42 points Helix Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Helix is operating at 75% of its capacity of 10,000 units. Identify whether the following costs are relevant to Helix's decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.50 per unit shipping cost. There will be no additional administrative expenses because of this order. Calculate the operating income from the order.
Question Completion:
b. Direct materials cost of $1 per unit
c. Direct labor of $2 per unit
d. Variable manufacturing overhead of $1.50 per unit
e. Fixed manufacturing overhead of $0.75 per unit
f. Regular selling expenses of $1.25 per unit
g. Additional selling expenses of $0.50 per unit
h. Administrative expenses of $0.60 per unit
Answer:
Helix Company
1. Relevant Costs for special orders:
a. is not relevant
b. is relevant
c. is not relevant.
2. Operating income from the special order:
= $2,000
Explanation:
Special order = 2,000 units
Normal selling price = $8
Special selling price = $6
Operating capacity = 75%
Relevant selling expense = $0.50 per unit
Units being produced = 7,500 (10,000 * 75%)
Revenue from the special order:
Sales revenue = $12,000 ($6 * 2,000)
Cost of goods = $9,000 ($4.50 * 2,000)
Total expenses $1,000 ($0.50 * 2,000)
Operating income = $2,000
b. Direct materials cost of $1
c. Direct labor of $2
d. Variable manufacturing overhead of $1.50
Total variable manufacturing costs = $4.50
e. Fixed manufacturing overhead of $0.75 per unit
f. Regular selling expenses of $1.25 per unit
g. Additional selling expenses of $0.50 per unit
h. Administrative expenses of $0.60 per unit
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If $800 is borrowed at 8% interest, find the amounts due at the end of 4 years if the interest is compounded as follows. (Round your answers to the nearest cent.)(i) annually(ii) quarterly(iii) monthly(iv) weekly
Answer:
(i) $133.12
(ii) $297.6
(iii) $300.8
(iv) $301.6
Explanation:
From the compounding formula;
Future value = Present value [tex](1+\frac{r}{m}) ^{mn}[/tex]
where r is the rate, m is the number of payment per year, and n is the number of years.
Interest = future value - present value
Given that present value = $800, r = 8%, n = 4 years.
(i) annually,
m = 1, so that;
Future value = 800[tex](1.08)^{4}[/tex]
= $933.12
Interest = $933.12 - $800
= $133.12
(ii) quarterly,
m = 3, so that;
Future value = 800[tex](1+\frac{0.08}{3}) ^{(4x3)}[/tex]
= 800(1.372)
= $1097.6
Interest = $1097.6 - $800
= $297.6
(iii) monthly,
m = 12, so that;
Future value = 800[tex](1+\frac{0.08}{12}) ^{(4x12)}[/tex]
= 800(1.376)
= $1100.8
Interest = $1100.8 - $800
= $300.8
(iv) weekly,
m = 54, so that;
Future value = 800[tex](1+\frac{0.08}{54}) ^{(4x54)}[/tex]
= 800(1.377)
= $1101.6
Interest = $1101.6 - $800
= $301.6
The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $25, and its fixed cost per unit is $10. Top management of Kobe International would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of $29. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept
Answer:
$45
Explanation:
Note that the Heating Division is operating at full capacity. Therefore, satisfying the internal order will result in external orders of 15,000 heating units being forgone.
Minimum Transfer Price = Variable Costs - Internal Savings + Opportunity cost
Where,
Variable Costs = $25
Internal Savings = $0
Opportunity cost = $45 - $25 = $20
Therefore,
Minimum Transfer Price = $25 + $20
= $45
The minimum transfer price that the Heating Division should accept is $45.
Despite its drastic downsizing a decade ago under a federally funded bailout and bankruptcy restructuring, General Motors again finds itself with too many U.S. factories that can turn out too many vehicles. GM's factory-utilization rate in North America averaged 95.1% over the past two years, below Ford's 111.9% and Toyota 's 101.4%. (Rates can exceed 100% when factories work a 3rd shift or schedule overtime work on weekends.) The auto industry often runs its factories dawn-till-dusk or even around the clock to boost their efficiency. Factory-utilization rates typically measure how much production capacity a plant uses based on a 16-hour workday. GM says its utilization rate is 100% on average when its round-the-clock truck and SUV lines are figured in with the relatively sleepy factories making cars. GM said it is working to "drive further improvements" in its plant utilization, including adding crossover SUVs to more factory lines. A plant in the Kansas City area that now makes only the Malibu is scheduled to begin assembling a small Cadillac SUV soon. But such a switch-over typically takes car makers several years of lead time, to order and install new assembly-line equipment and tooling.
Answer:
The question is actually missing (see attached image):
the answer is:
D. Less than that of its competitors.
Explanation:
Personally, I believe that GM is an extremely spoiled child that refuses to assume responsibility for its continuous and never ending mistakes. GM has either filed for bankruptcy or threatened to do so twice in the last 30 years or so, and every time the US government has to bail them out. But GM keeps doing things wrong.
It doesn't matter if you like their cars or not, GM is terribly managed. No other company in US history has received so much financial aid from the government and continued to lose money and work inefficiently. The problem is that whenever things go wrong, stockholders lose their money but the executives keep getting tens of millions of dollars. If a company is managed in such a disastrous way, their top management shouldn't get paid that much.
A car factory costs a lot of money, and not using it efficiently is outrageous considering GM's history. If they had never received a cent from the government, then its only their problem. But the government lost $11.2 billion on GM's last bailout. During the 1980s GM lobbied fro the government to impose import quotas on Japanese cars because they were better cars and GM couldn't compete against them. So whenever they do things wrong, big brother has to help them. During the last couple of years GM had to sell most of its foreign operations in order to get cash, and you generally do not make money by selling your assets.
things that can be used to make money in this pandemic like face mask, face shield give me atleast 5 business.
Answer:
1. A Kobe or Chadwick Boseman picture memorial
2. Toilet paper
3. Paper towels
4. A device that scares away Karens
5. An app that is similar to tiktok
6. A Presidential debate muter
7. Killer Hornet Away spray
During August, Boxer Company sells $363,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $12,100 before adjustment. Customers returned merchandise for warranty repairs during the month that used $8,700 in parts for repairs. The entry to record the estimated warranty expense for the month is:
Answer:
Warranty Expense A/c ($363,000 × 4%) $14,520
To Estimated Warranty Liability A/c $14,520
(Being the warranty expense is recorded)
Explanation:
The journal entry to record the estimated warranty expense is shown below:
Warranty Expense A/c ($363,000 × 4%) $14,520
To Estimated Warranty Liability A/c $14,520
(Being the warranty expense is recorded)
Here we debited the warranty expense as it is an expense and it increased the expense also it contains normal debit balance likewise the liability is credited as it increased the liability
