Answer:
1. The difference between contribution margin and income from operations is fixed costs. income from operations = Contribution margin - Fixed expenses. So therefore, the difference between contribution margin and income from operations is known as fixed costs.
2. A company's operating leverage is computed as contribution margin divided by income from operations. Degree of Operating Leverage = Contribution Margin / Net Operating Income
3. The sales mix is the relative distribution of sales among the products sold by a company.
4. The unit selling price of the overall enterprise product equals the sum of the unit selling prices of each product multiplied by its sales mix percentage.
At April 30, Sheridan Company has the following bank information:
Cash balance per bank $3000
Outstanding checks $240
Deposits in transit $500
Credit memo for interest $10
Bank service charge $20
What is Sheridan adjusted cash balance on April 30?
a. $8575.
b. $7625.
c. $8560.
d. $8600.
Answer:
the adjusted cash balance on April 30 is $3,260
Explanation:
The computation of the adjusted cash balance is given below:
Cash balance per bank $3,000
Less: Outstanding checks ($240)
Add: Deposits in transit $500
Adjusted cash balance $3,260
hence, the adjusted cash balance on April 30 is $3,260
This is the answer but the same is not provided in the given options
Department M had 3,000 units 59% completed in process at the beginning of June, 12,800 units completed during June, and 1,000 units 32% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories? a.11,350 units b.13,120 units c.9,800 units d.14,120 units
Answer:
Department M
The number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories is:
a. 11,350 units
Explanation:
Beginning work in process units = 3,000
Degree of completion = 59%
Work to be done during June on the beginning WIP = 1,230 units (3,000 * 41%)
Units started and completed during June = 9,800 Units (12,800 - 3,000)
Ending work in process, equivalent units = 320 (1,000 * 32%)
Total equivalent units of production for conversion costs for June, using the FIFO method are = 11,350 units
XYZ produces a single product and has provided the following data for its most recent month of operations:
Number of units produced 6,400
Variable costs per unit:
Direct materials $72
Direct labor $80
Variable manufacturing overhead $10
Variable selling and administrative expense $12
Fixed costs:
Fixed manufacturing overhead $224,000
Fixed selling and administrative expense $288,000
There were no beginning or ending inventories. The absorption costing unit product cost was: ____________-
Answer: $197
Explanation:
With absorption costing, the fixed manufacturing costs are absorbed by the products which means that the product cost will include fixed costs related to manufacturing.
The absorption costing unit product cost is therefore:
= Direct materials + Direct Labor + Variable manufacturing overhead + Fixed manufacturing Overhead per unit
Fixed manufacturing overhead per unit is:
= 224,000 / 6,400 units
= $35 per unit
Absorption cost unit product cost = 72 + 80 + 10 + 35
= $197
The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 250 pounds of cheese per day (365 days per year), and the demand at area stores is 180 pounds per day. Each time the dairy makes cheese, it costs $125 to set up the production process. The annual cost of carrying a pound of cheese in a refrigerated storage area is $12. Determine the optimal order size and the minimum total annual inventory cost.
Answer: 1. 1170 units
2. $14039
Explanation:
The optimal order size will be:
= ✓2AO/C
where,
A = Annual demand = 180 × 365 days = 65,700
O = Ordering cost = 125
C = Carrying cost = 12
EOQ = ✓(2AO/C)
= ✓(2 × 65700 × 125/12)
= ✓ 1368750
= 1170 units
Therefore, the optimal order size is 1170 units.
2. The minimum total annual inventory cost will be calculated as:
C = (Q /2)(H) +(D/Q)(S)
where,
Q = 1170 pounds
H = holding cost = $12
D = annual demand = 65,700
S =set up cost = $125
Therefore, the minimum total annual inventory cost will be:
C = (Q /2)(H) +(D/Q)(S)
C = {(1170) /2] × 12} + {(65,700 /1170) × 125}
= 7020 +7019
= 14,039
Therefore, the minimum total annual inventory cost is $14,039.
The listing of cash received via mail should be sent to which of the following individuals: ___________
a. Cashier
b. Customer
c. Record keeper
d. Mail clerk
e. Treasurer
Answer:
a. Cashier
c. Record keeper
d. Mail clerk
Explanation:
"Rogue Corp. has sales of $4,250,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. What is Rogue's tax liability"
Answer:
$360,000
Explanation:
Calculation to determine Rogue's tax liability
Step 1 is to calculate the gross profit
Using this formula
Gross profit=Sales - Cost of Goods Sold
Let plug in the formula
Gross profit=$4,250,000-$2,500,000
Gross profit=$1,750,000
Step 2 is to calculate operating income
Using this formula
Operating income=Gross Profit -Total operating expenses
Let plug in the formula
Operating income=$1,750,000-$600,000
Operating income=$1,150,000
Step 3 is to calculate the EBT
Using this formula
EBT=Operating income - Interest expense
Let plug in the formula
EBT=$1,150,000-$250,000
EBT=$900,000
Now let calculate the Tax liability
Using this formula
Tax liability=EBT x Corp Tax
Let plug in the formula
Tax liability=$900,000*$40%
Tax Liability=$360,000
Therefore Rogue's tax liability is $360,000
Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World's journal entry to record the collection on the maturity date is:
Answer:
Interest revenue = $7800*8%/360*60
Interest revenue = $104
Date Journal Entry Debit Credit
Cash $7,904
Notes Receivable $7,800
Interest Revenue $104
Your friend Lorenzo is trying to decide on a career path. He has narrowed down his search to two choices. Before he selects a major, he wants to know more about the two careers and the skills needed for each profession. What advice would you give Lorenzo
Answer:
Interview someone in each of your chosen fields.
Explanation:
In the context, my friend Lorenzo wants advice from me regarding career choices. He has somehow researched and narrowed down the choices to two choices. Lorenzo wants to know more about the major and the skills required for each of the profession.
I would suggest him to interview someone experience person in this field and get insights from him. It will provide Lorenzo a better understanding of the major selection and it will also create a blueprints of the future paths.
If financial markets are efficient, that suggests that:_____.
a. investors cannot expect to outperform the market consistently.
b. security prices are random.
c. investors cannot earn superior.
d. returns bearing additional risk will not increase return.
Answer:
A
Explanation:
The efficient market hypothesis posits that market prices contains all information in the market. As a result, an investor cannot consistently expect to outperform the market or consistently generate a positive alpha.
The efficient market hypothesis thus suggests a passive form of investment.
Forms of the efficient market hypothesis
a. the weak form - market prices contain information about past market prices. thus there is no need for technical analysis
b. the semi strong - it posits that market prices consists of all publicly available information
c. the strong form - it submits that market prices reflects both publicly and privately available information. As a result, excess returns cannot be earned consistently through insider trading
Your coworker needs to communicate with the cleaning crew that there is no need for them to come in during the holiday break. He is having trouble ending the letter and asks for your advice. What tips can you offer him?A. Anticipate future relations and business.B. Use a canned ending to save time. C. Avoid endings that sounds canned.D. Dwell on the bad news to increase sympathy.
Answer:
A. Anticipate future relations and business
C. Avoid endings that sounds canned
Explanation:
Canned responses or endings are pre-dertermined responses used in various scenarios while writing.
In this your case coworker needs to communicate with the cleaning crew that there is no need for them to come in during the holiday break.
In order to have a personalised and future view of the relationship.
It will be better to use an ending that anticipates future relations and business, and avoid endings that sounds canned.
Compute the current ratio and acid-test ratio for each of the separate cases. Camaro GTO TorinoCash $ 2,000 $110 $1,000Short-term investments 50 0 580Current receivables 350 470 700Inventory 2,600 2,420 4,230Prepaid expenses 200 500 900Total current assets $ 5,200 $3,500 7,410Current liabilities $ 2,000 $1,000 3,800
Answer:
The Current and Acid Test ratios help show whether a company will be able to pay of its current obligations with its current assets.
Current Ratio:Camero : GTO
= Current Assets / Current liabilities = 3,500 / 1,000
= 5,200 / 2,000 = 3.50
= 2.60
Torino
= Current assets / Current liabilities
= 7,410 / 3,800
= 1.95
Acid-Test ratioCamero
= (Current Assets - Inventory - Prepaid expenses) / Current liabilities
= (5,200 - 2,600 - 200) / 2,000
= 1.20
GTO
= (3,500 - 2,420 - 500) / 1,000
= 0.58
Torino
= (7,410 - 4,230 - 900) / 3,800
= 0.60
Suppose you invest $210,000 in an annuity that returns 6 annual payments, with the first payment one year from now and each subsequent payment growing by 5%. At an interest rate of 8%, how much is the first annual payment you receive?
Answer:
$40,510.82
Explanation:
Present value = $210,000
Number of annual payments (n) = 6
Growth rate (g) = 5% or 0.05
Interest rate (r) = 8% or 0.08
Amount of first annual payment = [Present value * (r - g)] / [1 - {(1 + g)/(1 + r)}^n]
Amount of first annual payment = [210,000 * (0.08-0.05)] / [1 - [(1+0.05) / (1+0.08)]^6]
Amount of first annual payment = [210,000*0.03] / [1 - (0.972222)^6]
Amount of first annual payment = 6,300 / [1 - 0.844486]
Amount of first annual payment = 6,300 / 0.155514
Amount of first annual payment = 40510.82217678151
Amount of first annual payment = $40,510.82
So, the amount of the first annual payment you will receive is $40,510.82.
When the price of paintings is set at $500, the local art gallery supplies 20 paintings per week. When the price of paintings increases to $750, the gallery supplies 25 paintings. Calculate the price elasticity of supply using the mid-point formula. Instructions: Round your answer to two decimal places. If you are entering a negative number be sure to include a negative sign (-) in front of that number. The price elasticity of supply is: .
Answer:
the price elasticity of supply is 0.555
Explanation:
The computation of the price elasticity of supply is given below:
= Percentage change in quantity supplied ÷ percentage change in price
= (25 - 20) ÷ (25 + 20) ÷ 2 ÷ (750 - 500) ÷ (750 + 500) ÷ 2
= 5 ÷45 ÷ 250 ÷ 125
= 0.555
Hence, the price elasticity of supply is 0.555
The same is relevant
How many BTU's are in a ton
Answer:
12.000
Explanation:
Because 1 ton equals 12,000 BTU.
For example, 48,000 BTU equals 4 tons, and 60,000 BTU equals 5 tons.
On whom the trade bill drawn ?
The bill of exchange is drawn by the seller of the goods and is accepted by the buyer.
Use the following information: a. Beginning cash balance on March 1, $72,000. b. Cash receipts from sales, $300,000. c. Budgeted cash payments for direct materials, $140,000. d. Budgeted cash payments for direct labor, $80,000. e. Other budgeted cash expenses, $45,000. Cash repayment of bank loan, $20,000.Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash payments for the month of March and the balance expected on March 31.
Answer:
the budget of the pines is 8 to them b sqare the 4 in you get 12,500
Explanation:
Answer:
no clue
Explanation:
have a good day:)))
Which of the following is important in determining the extent of competition in an industry?
a. the minimum level of short run average total costs of production
b. the minimum efficient scale of production relative to market demand
c. whether or not the industry product is differentiated or standardized
d. the level of market demand for the industry's product
In Coronado Company, the Cutting Department had beginning work in process of 5100 units, transferred out 24800 units, and had an ending work in process of 3000 units. How many units were started by Coronado during the month
Answer:
The answer is "22700 units"
Explanation:
[tex]\text{Processed work} =5100\\\\\text{Outer Transfers} =24800\\\\\text{Process in the ending work} =3000\\\\\text{The amount started units \ :}[/tex]
[tex]=24800+3000-5100\\\\=27800-5100\\\\=22700 \ units[/tex]
France Corp sells small laptops. Based on the information below, calculate the sales required in units to earn the target profit.You must show your work to receive credit. Selling price per unit $150 Variable cost per unit $60 Fixed Costs per year $30,000 Target Profit $15,000
Answer:The answer is to sell 300 units to make $15,000 in proft
Explanation: add $30,000 and $15,000 then divide the sum of that with 150 to get how many units are needed to solve.
Suppose that the price of labor is $7 for a firm, while the price of capital for a firm is $10. Also suppose that the Marginal Product of Labor is 20, while the Marginal Product of Capital is 30. What is the best advice for this profit-maximizing firm?
Answer:
The best advice for this profit-maximizing firm is:
Use more capital than labor.
Explanation:
a) Data and Calculations:
Price of labor = $7
Price of capital = $10
Marginal product of labor = 20
Marginal product of capital = 30
Productivity of labor = Output/Input
= 20/7
= 2.86
Productivity of capital = Output/Input
= 30/10
= 3
b) Capital is more productive than labor. The productivity of capital is 3 when compared to the productivity of labor, that is 2.86.
The graph below illustrates two demand curves for a firm operating in a differentiated product oligopoly. Initially, the firm charges a price of $60 and produces 10 units of output. One of the demand curves is relevant when rivals match the firm’s price changes; the other demand curve is relevant when rivals do not match price changes.
Answer:
D2 is relevant when rivals match the firm’s price changes
D1 is relevant when rivals do not match the firm’s price changes
Explanation:
Given
See attachment for graph
Solving (a): Which is relevant to price changes
Calculate the slope of D1 and D2 using:
[tex]m = \frac{y_2 - y_1}{x_2 - x_1}[/tex]
For D1
[tex](x_1,y_1) = (0,70)\\ (x_2,y_2) = (21,50)[/tex]
So:
[tex]m = \frac{50- 70}{21- 0}[/tex]
[tex]m = \frac{- 20}{21}[/tex]
[tex]m_{D_1} = -0.9524[/tex]
For D2
[tex](x_1,y_1) = (0,100)\\ (x_2,y_2) = (20,20)[/tex]
So:
[tex]m = \frac{20 - 100}{20 - 0}[/tex]
[tex]m = \frac{-80}{20}[/tex]
[tex]m_{D_2} = -4[/tex]
By comparison:
[tex]|m_{D_2}| > |m_{D_1}|[/tex]
i.e.
[tex]|-4| > |-0.9524|[/tex]
[tex]4 > 0.9524[/tex]
This means that D2 is steeper than D1. Hence, D2 is relevant to price changes
Solving (b): Which is not relevant to price changes
In (a), we concluded that D2 is relevant to price change.
Hence, D1 is relevant when price does not change.
On December 31, the trial balance of Cubico Company included the following accounts with debit balances: Prepaid Advertising $1,500 Advertising Expense 5,400 If it is determined that the cost of advertising applicable to future periods is $3,300, the correct adjusting entry would:_____.
A. Debit Advertising Expense $1,800; credit Prepaid Advertising $1,800.
B. Debit Prepaid Advertising $1,800; credit Advertising Expense $1,800.
C. Debit Prepaid Advertising $3,300; credit Advertising Expense $3,300.
D. Debit Advertising Expense $3,300; credit Prepaid Advertising $3,300.
Answer:
Cubico Company
The correct adjusting entry would be:
B. Debit Prepaid Advertising $1,800; credit Advertising Expense $1,800.
Explanation:
a) Data and Calculations:
Debit balances on December 31:
repaid Advertising $1,500
Advertising Expense 5,400
Determined future advertising cost = $3,300
The correct adjusting entry would be:
B. Debit Prepaid Advertising $1,800; credit Advertising Expense $1,800.
This will increase the prepaid advertising by $1,800 to $3,300 ($1,500 + $1,800) and reduce the advertising expense by $1,800 to $3,600 ($5,400 - $1,800).
Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,500 units) $ 180,000 Variable expenses 81,000 Contribution margin 99,000 Fixed expenses 45,000 Net operating income $ 54,000 If the company sells 4,600 units, its total contribution margin should be closest to
Answer: its total contribution margin should be closest to $ 266,800.
Explanation:
Contribution = (Sales )+ (Variable expenses)
= $180,000+ $81,000
= $261,000
Contribution margin ratio = Contribution divided by Sales
= [tex]\dfrac{261000}{180000}[/tex]
= 1.45
Now Contrbution for 4,600 units = [tex]\dfrac{Sales\ for \ 4500\ units\times 4600}{4500}\times 1.45[/tex]
[tex]=\dfrac{180000\times4600}{4500}\times1.45\\\\\\=266800[/tex]
its total contribution margin should be closest to $ 266,800.
On June 1, 2019, Cain Company, a new firm, paid $4,300 rent in advance for a five-month period. The $4,300 was debited to the Prepaid Rent account. On June 1, 2019, the firm bought supplies for $7,250. The $7,250 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $2,950 were on hand. On June 1, 2019, the firm bought equipment costing $44,160. The equipment has an expected useful life of 8 years and no salvage value. The firm will use the straight-line method of depreciation. Prepare end-of-June adjusting entries for Cain Company.
Answer:
S/N Account and Explanation Debit Credit
1. Rent expense $860
($4,300 / 5 month)
Prepaid rent $860
(To record adjusted rent expense)
2. Supplies expense $4,300
($7,250 - $2,950)
Supplies $4300
(To record adjusted supplies)
3. Depreciation expense $460
(($44,160/8)/12)
Accumulated depreciation $460
(To record depreciation)
Examples of cash equivalents include all of the following EXCEPT U.S. Treasury bills. notes issued by major corporations. money market funds. long-term notes receivable.
Answer:
long-term notes receivable.
Explanation:
Cash equivalents can be regarded as total cash value that is available on hand, this encompass items that has similarities with cash and must be regarded as current assets. cash or cash equivalents of a company can be seen at top line of the balance sheet.
Examples of cash equivalents are;
✓Treasury bills
✓notes issued by major corporations. ✓money market funds.
True or False: Efficiency wages are higher-than-average wages that are intended to reduce the chances that workers engage in non-productive behavior that might jeopardize their high-paying job. True False
Answer: True
Explanation:
The motivations of employees are both financial and non-financial with a high salary considered to be a financial motivation. Employers will pay employees a higher wage so as to motivate them to be more productive at work. This is called an efficiency wage because it increases the productivity of employees by motivating them more.
When workers are being paid such a high salary in relation to the average salary in the market, they would want to ensure that they keep getting paid this huge salary so they will try to avoid non-productive behavior that would lead to them losing their jobs.
Prepare journal entries to record each of the following four separate issuances of stock.
1. A corporation issued 8,000 shares of $20 par value common stock for $192,000 cash.
2. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has a $1 per share stated value.
3. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has no stated value.
4. A corporation issued 2,000 shares of $50 par value preferred stock for $158,500 cash.
Answer: Please see explanation column for answers
Explanation
1.To record the issue of 8,000 shares of $20 par value.
Account titles and explanation Debit Credit
Cash Account $192,000
Common Stock( 8,000 shares x $20) $160,000 $160,000
Paid-in In Excess of Par $32,000
2. To record the issue of 4,000 shares of $1 stated value.
Account titles and explanation Debit Credit
Retained Earnings $4,000
Common Stock $4,000
3. To record the issue of 4,000 shares of no stated value.
Account titles and explanation Debit Credit
Retained Earnings $58,500
Common Stock $58,500
4.To record the issue of 2,000 shares of $50 par value.
Account titles and explanation Debit Credit
Cash $158,500
Preferred Stock( 2,000 shares x $50) $100,000
Paid-in In Excess of Par $58,500
The real interest rate is Group of answer choices the percentage increase in money that the lender receives on a loan. the percentage increase in purchasing power that the lender receives on a loan. also called the after-tax interest rate. usually higher than the nominal interest rate.
Answer:
he percentage increase in purchasing power that the lender receives on a loan.
Explanation:
Interest rate is the rate earned on deposits or the rate charged on loans.
Interest rate could be real or nominal
Nominal interest rate is real interest rate plus inflation rate
Real interest rate is interest rate that has been adjusted for inflation
The higher the real interest rate, the higher the increase in purchasing power of the lender
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Suppose that France and Denmark both produce oil and olives. Frances’s opportunity cost of producing a crate of olives is 4 barrels of oil, while Denmark’s opportunity cost of producing a crate of olives is 7 barrels of oil.
By comparing the opportunity cost of producing olives in the two countries, you can tell that _______has a comparative advantage in the production of olives and ______has a comparative advantage in the production of oil.
Suppose that France and Denmark consider trading olives and oil with each other. France can gain from specialization and trade as long as it receives more than _____ of oil for each crate of olives it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than _____ of olives for each barrel of oil it exports to France.
Based on your answer to the last question, which of the following terms of trade (that is, price of olives in terms of oil) would allow both Denmark and France to gain from trade?
A__ 6 barrels of oil per crate of olives
B__ 3 barrels of oil per crate of olives
C__ 5 barrels of oil per crate of olives
D__ 8 barrels of oil per crate of olives
Answer: See explanation
Explanation:
Based on the information given in the question, one can deduce that while (France) has a comparative advantage in the production of olives, it should be noted that on the other hand, (Denmark) has a comparative advantage in the production of oil.
If France and Denmark consider trading olives and oil with each other, then France can gain from specialization and trade as long as it receives more than (4) of oil for each crate of olives it exports to Denmark while on the other hand, Denmark can gain from trade as long as it gets more than (1/7) crate of olives for each barrel of oil it exports to France.
The terms of trade that would allow both Denmark and France to gain from trade include:
• 6 barrels of oil per crate of olives.
• 5 barrels of oil per crate of olives.
On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $4,500,000. The bonds pay interest semiannually. The market rate of interest is 8.0% and the bond selling price was $4,194,222. The bond issuance should be recorded as:
Answer: Debit Cash $4,194,222; Debit Discount on bonds payable $305,778; Credit Bonds payable $4,500,000
Explanation:
Based on the information given in the question, the journal entry will be prepared as follows:
Debit Cash $4,194,222
Debit Discount on bonds payable $305,778
Credit Bonds payable $4,500,000
Note that the discount on Bonds Payable was calculated as:
= $4,500,000 - $4,194,222
= $305,778
