Answer:
c. 120
Explanation:
The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The formula for Economic order quantity is represented by the formula:
EOQ = [tex]\sqrt{\frac{2*Demand*Ordering Cost}{Holding cost} }[/tex]
EOQ = [tex]\sqrt{\frac{2*240*60}{0.5} }[/tex]
EOQ = 120
Garfield Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory $230,000 Fixed manufacturing overhead in production 850,000 Ending fixed manufacturing overhead in inventory 50,000 Beginning variable manufacturing overhead in inventory $40,000 Variable manufacturing overhead in production 140,000 Ending variable manufacturing overhead in inventory 30,000 What is the difference between operating incomes under absorption costing and variable costing?
Answer:
the difference between operating incomes under absorption costing and variable costing is $180,000 .
Explanation:
The difference between the two Operating Incomes lies in the amount of Fixed Overheads that has been deferred in Inventory.
So, calculation of the difference will be as follows :
Beginning fixed manufacturing overhead in inventory $230,000
Less Ending fixed manufacturing overhead in inventory ($50,000)
Difference between absorption costing and variable costing $180,000
Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for 2017 follow.
Summary Income Statement Data
Sales $11,692,900
Cost of goods sold 5,135,000
Selling expenses 938,000
Administrative expenses 780,000
Interest expense 2,210,000
Income tax expense 905,000 9,968,000
Net income $1,724,900
Summary Balance Sheet Data
Cash $117,000
Total liabilities $900,000
Noncash assets 1,183,000
Stockholders' equity 400,000
Total assets $1,300,000
Total liabilities and equity $1,300,000
Round answers to two decimal places.
a. Compute the ratio of times-interest-earned.
b. Compute the debt-to-equity ratio.
Answer:
a. Compute the ratio of times-interest-earned.
times-interest-earned = EBIT / interest expense
EBIT = $4,839,900interest expense = $2,210,000times-interest-earned = $4,839,900 / $2,210,000 = 2.19
b. Compute the debt-to-equity ratio.
debt-to-equity ratio = total liabilities / total stockholders' equity
total liabilities = $900,000total stockholders' equity = $400,000debt-to-equity ratio = $900,000 / $400,000 = 2.25
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment $11,600
Insurance on factory building 2,500
Raw materials (plastics, polystyrene, etc.) 79,700
Utility costs for factory 900
Supplies for general office 300
Wages for assembly line workers 63,700
Depreciation on office equipment 800
Miscellaneous materials (glue, thread, etc.) 1,200
Factory manager’s salary 6,400
Property taxes on factory building 500
Advertising for helmets 14,500
Sales commissions 10,600
Depreciation on factory building 1,600
Required:
Prepare an answer sheet with the following column headings:
Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs
Answer:
Cost Item Direct Direct Manufacturing Period
materials labor overhead costs
Rent on factory $11,600
equipment
Insurance on $2,500
factory building
Raw materials $79,700
Utility costs $900
for factory
Supplies for $300
general office
Wages assembly $63,700
line workers
Depreciation on $800
office equipment
Miscellaneous $1,200
materials
Factory manager’s $6,400
salary
Property taxes on $500
factory building
Advertising for $14,500
helmets
Sales commissions $10,600
Depreciation on $1,600
factory building
TOTALS $79,700 $63,700 $24,700 $26,200
Some 150 million customers a month visit Amazon and the company passes through $160 billion in sales via its global supply channels and partnerships making interorganizational relationships very important to the company. Which interacting organization has a low coordination, low integration, transactional focus
Answer with Explanation:
Amazon is fastest growing company in the world which has crossed 2 billion customer visits. It has also increased the worth of the company to $1.14 trillions. The supply chain management is where the strengths of the company lies and nobody can match the pricing strategy, quality management and other significant factors that are included in the supply chain management to ensure that the customer is having what they are paying for.
Supply chain management process includes the key partners which includes their suppliers, partners, clients and customers as well who play important roles in the supply chain process by coordinating, integrating systems with each other and are involved in the transaction-al process.
The customers are the one who interact fewer than partners, suppliers, clients, etc because all they do is order a particular product. This is the first interaction of the customer with Amazon and the last interaction is when the customer received the order. So this means they are less interacting party in this process.
Suppliers are continuously contacted and informed about the pricing, supply chain issues, etc so that the company is able to deliver its customers what they are desiring. Supply chain partners also in the process of interacting with Amazon as they have to move products from supplier to the customer. These partners are highly interacted, possess integrating systems and of transaction-al importance to the company.
7. Ms. House utilizes a strategy of "Check 1 – 2- 3". Why does she do this? How do you think this was initially taught?
Explanation:
To get her student's attention. Remember, the check 1 2 3 strategy allows teachers to get an inside into the students understanding.
However, in this scenario, Ms. House uses the strategy to lower her student's voices, so as to get their attention. She likely started using this strategy at the start of the school year and kept doing it.
A 25-year old single client has just started his own small business and is not covered by a retirement plan. He has $5,000 to invest and currently has a low level of income. He wishes to start saving for retirement. The BEST recommendation is a:
Answer:
Roth IRA
Explanation:
Based on this scenario, it can be said that the best recommendation would be a Roth IRA. This is an individual retirement account that non-deductible tax-free growth for retirement at age 59 1/2. As of 2018, the yearly limit for a Roth IRA account is $5,500 meaning that the client in this scenario would not have any problem investing the entire $5000 as soon as they open the account. And since he is in a low tax bracket he should not have any problem opening an Account.
The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 3 percent less than that for preferred stock.
Debt can be issued at a yield of 11.0 percent, and the corporate tax rate is 20 percent. Preferred stock will be priced at $60 and pay a dividend of $6.40. The flotation cost on the preferred stock is $6.
a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Based on the facts given above, is the treasurer correct?
Answer:
a. Compute the after tax cost of debt.
after tax cost of debt = 11% x (1 - tax rate) = 11% x 0.8 = 8.8%
b. Compute the after tax cost of preferred stock.
after tax cost of preferred stock = cost of preferred stock (no taxes are deducted for paying preferred dividends since they are paid in capital)
cost of preferred stocks = $6.40 / ($60 - $6) = $6.40 / $54 = 11.85%
c. Based on the facts given above, is the treasurer correct?
the difference = 11.85% - 8.8% = 3.05%, so the treasurer was right
g Sheffield Corp. purchased a truck at the beginning of 2017 for $109200. The truck is estimated to have a salvage value of $3800 and a useful life of 131750 miles. It was driven 23000 miles in 2017 and 31000 miles in 2018. What is the depreciation expense for 2018
Answer:
$24,800
Explanation:
Calculation for the depreciation expense for 2018 for Sheffield Corp.
Using this formula
Depreciation expense = (Purchased at the beginning-Salvage value/Useful life)* Driven miles
Let plug in the formula
Depreciation expense=($109,200-$3,800/131,750)*31,000
Depreciation expense=($105,400/131,750)*31,000
Depreciation expense=0.80*31,000
Depreciation expense=$24,800
Therefore the depreciation expense for 2018 will be $24,800
Which of the following goals of a performance evaluation system is accomplished when the company's actual results are compared to industry standards?
A) Benchmarking
B) Motivating unit managers
C) Promoting goal congruence
D) Providing feedback
Answer:
A) Benchmarking
Explanation:
Benchmarking refers to a process in which the performance of the company could be measured with respect to the product, services, processes as compared with the industry performance
Here in the given situation, when an actual result is compared with the industry standards than we called as a benchmarking and the same is to be used for the evaluation of the performance system
Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is hours. The direct labor standard wage rate at the firm is per hour. Last month, direct labor hours were used to prepare tax returns. Total wages were .
Answer:
Tax Services
Total wages were:
= hourly wage rate * total hours spent on returns for the month
For example, if the hourly wage rate is $50 and the total hours spent on the returns equal 560 hours, the total wages will be equal to $28,000 ($50 x 560).
Explanation:
The Tax Services' total wages will be equal to the hourly wage rate multiplied by the total hours spent on returns during the month. The total hours spent on the returns for the month is obtained by adding up the hours spent on all the returns. The total wages depend on the hours worked and the standard wage rate that has been established in the firm.
A consumer plays the role of:
A)a wage earner.
B)a saver.
C)a borrower.
D)All of these choices are correct.
Answer:
c) borrower
Explanation:
A consumer plays the role of a borrower. The consumer is the important role in the economy. Thus, option (c) is correct.
What is consumer?The term “consumer” means purchasing a product or service for the purpose of personal use. The consumer are consumed the product and services. The consumer are buying the product and services with exchange of money.
According to the role of the consumer are the played in the significant role of the economy. The business are the sale of the goods and the services are the borrower are the paid the money to the business. The economy cycle was the continue run.
As a result, the consumer plays the role of a borrower. The consumer is the significant role in the economy. Therefore, option (c) is correct.
Learn more about on consumer, here:
https://brainly.com/question/13420317
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The budget philosophy that ignores budget outcomes and focuses on whatever is necessary to achieve economic goals and stabilize the economy is: g
Answer:
functional finance.
Explanation:
The budget philosophy of functional finance implies that the government should do all that is necessary in order to make the economy operate at full potential. The outcomes of whatever budget preparations are ignored in philosophy of functional finance. What is most paramount is to focus on whatever that would bring growth and stability to the economy.
In the philosophy of functional finance, what is most important about balancing the federal budget is its use to promote an economy so that it can operate at full potential.
On December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,432, Sunland Company estimates that 9% of its accounts receivable balance of $105,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2017, Sunland Company determined that B. Jared’s account was uncollectible and wrote off $1,091. On June 12, 2017, Jared paid the amount previously written off.Required:Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017.
Answer: Please see explanation column for answers
Explanation:
1) To record bad debts expense
Date Account Debit Credit
Dec 31, 2016 Bad Debt Expense $10,963
Allowance for doubtful account $10,963
Calculation ;
Bad debts expense
9% x $105,900 = $9,531
Adjustment= $9,531 + debit balance of $1,432=$10,963
2) To write off uncollectible accounts receivables
Date Account Debit Credit
May 11, 2017 Allowance for doubtful account $1,091.
Accounts receivable--- B. Jared $1,091.
3) To reinstate accounts accounts previously written off
Date Account Debit Credit
June 12, 2017 Accounts receivable--- B. Jared $1,091.
Allowance for doubtful account $1,091.
3b)to collect cash from receivables
Date Account Debit Credit
June 12, 2017 Cash $1,091.
Accounts receivable--- B. Jared $1,091.
Which of the following policies often contains clauses that permit a social networking operator to collect and store data on users or even share it with third parties?
1) Terms of Trade policy
2) Terms of Use policy
3) Terms of Endearment policy
4) Terms of Retention policy
Answer: 2) Terms of Use policy
Explanation:
Terms of service are a contract or agreement between the user of a website or in this case a social networking operator and the social networking operator itself. This agreement is meant to govern the terms of the relationship between the 2 parties in terms of what will be expected of both, i.e, their rights and responsibilities.
On the side of the social networking operator, one of the rights usually listed is one stating that the operator can collect and store data on users or even share it with third parties and so it is important to read the terms of use policy as best you can when you can.
Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $9,000,000. The building included used but functional equipment. According to independent appraisals, the fair values were $4,500,000, $3,000,000, and $2,500,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment would be:
Answer:
Initial value of building = $4,050,000
Initial value of land = $2,700,000
Initial value of equipment = $2,250,000
Explanation:
The fair value of an asset refers to a unbiased estimate of the likely market price of the asset.
The initial value of a fixed asset refers to the amount of money that spent to acquire or create the asset.
The initial value of each asset from a group of asset can be calculated using the following formula:
Initial value of an asset = Lump-sum price * (FVA / TFV) ............ (1)
Where, from the questio;
Lump-sum price = $9,000,000
FVA = Fair value of a particular asset. From the question, we have:
Building fair value = $4,500,000
Land fair value = $3,000,000
Land fair value = $2,500,000
TFV =Total fair value = Building fair value + Land fair value + Land fair value = $4,500,000 + $3,000,000 + $2,500,000 = $10,000,000
Substituting the values into equation (1), we can determine the initial value of each asset as follows:
Initial value of building = $9,000,000 * ($4,500,000 / $10,000,000) = $9,000,000 * 0.45 = $4,050,000
Initial value of land = $9,000,000 * ($3,000,000 / $10,000,000) = $9,000,000 * 0.30 = $2,700,000
Initial value of equipment = $9,000,000 * ($2,500,000 / $10,000,000) = $9,000,000 * 0.25 = $2,250,000
Spruce Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity of clay used for each planter is 24 pounds. The company uses a standard cost of $2.20 per pound of clay. Spruce produced 3,000 planters in May. In that month, 75,000 pounds of clay were purchased and used at the total cost of $162,000 Read the requirementsLOADING.... Requirement 1. Calculate the direct material price variance. Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials)
Answer:
1. $3,000 Favorable
2. $6,600 Unfavorable.
Explanation:
This is an incomplete question. However, the completed part is question number 2, which has been solved below.
1. Direct material price variance
= (Actual price - Standard price) Actual quantity
= ($2.16 - $2.20) × 75,000
= -$0.04 × 75,000
= $3,000 Favorable
Note: Actual price is gotten by; $162,000 / 75,000
= $2.16
2. Direct material quantity variance
= (Actual quantity - Standard quantity) × Standard price
= (75,000 - $72,000) × $2.20
= 3,000 × $2.20
= $6,600 Unfavorable
Note: Standard quantity is gotten by;
24 × 3,000
= 72,000
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,588. The FICA tax for social security is 6.2% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,424.97. Her net pay for the month is: (Round your intermediate calculations to two decimal places.)
a) $7,038.50
b) $5,141.03
c) $6,072.04
d) $6,566.00
e) $6,506.04
Answer: e) $6,506.04
Explanation:
Employees do not pay FUTA or SUTA. Employers pay those.
Ms. Grant's net pay for the month therefore is;
= Gross earnings - FICA Social Security - FICA Medicare - Federal Income tax withheld
= 8,588 - (6.2% * 8,588) - ( 1.45% * 8,588) - 1,424.97
= 8,588 - 532.46 - 124.53 - 1,424.97
= $6,506.04
A company incurs $4,050,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available: Department Expected use of Driver Cost Ordering and Receiving 2,000 $1,200,000 Mixing 50,000 1,500,000 Testing 1,500 1,350,000 Production information for Goo is as follows: Department Expected use of Driver Ordering and Receiving 400 Mixing 20,000 Testing 500 Compute the amount of overhead assigned to Goo. $2,760,000.
Answer:
$1,290,000
Explanation:
Goo:
Ordering and Receiving = 400 / 2,000 = 20%
Mixing = 20,000 / 50,000 = 40%
Testing = 500 / 1,500 = 33.33%
allocated overhead costs:
Ordering and Receiving = 20% x $1,200,000 = $240,000
Mixing = 40% x $1,500,000 = $600,000
Testing = 33.33% x $1,350,000 = $450,000
total allocated overhead costs = $1,290,000
It is important negotiators consider the shadow negotiation carefully before meeting with the other party so they:________
a. understand where the boundaries of the current negotiations are and should be.
b. are clear in their own minds about the scope of the negotiations.
c. understand how they would ideally like to work with the other party.
d. determine what ground the negotiation is going to cover and how the negotiators are going to work together.
e. understand that all the above are important to the shadow negotiations.
Answer:
b. are clear in their own minds about the scope of the negotiations.
Explanation:
Shadow negotiations refer to the unspoken assumptions that determine how those involved in a deal with each other, whose opinions get heard, whose interests hold sway. Therefore, this is important so the negotiators are clear in their own minds about the scope of the negotiations. Meaning that they go into the negotiation knowing who has more bargaining power and how far they can actually take the negotiation.
Gilley Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Gilley paid dividends of $.90 per share on the common stock and $3.00 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2015 was $600,000 and the income tax rate was 30%.
Diluted earnings per share for 2015 is:_____________ (rounded to the nearest penny)
Answer:
Gilley Co.
Diluted earnings per share for 2015 is:_____________ $1.68
Explanation:
a) Data and Calculations:
Number of common stock shares = 200,000
Number of convertible preferred = 40,000
Number of convertible bonds = 45,000 ($1,000,000/$1,000 x 45)
Total shares = 285,000
Earnings = $600,000
Income tax (180,000)
Net Income $420,000
Plus preferred dividend = $60,000
Adjusted net income = $480,000
EPS = $480,000/285,000
= $1.68
b) After deducting income tax expense to arrive at the income after tax, then add the dividends of preferred stockholders before arriving at the adjusted net income for computing the earnings per share.
Improvements in labor productivity: A. affect the level of wages, but do not affect the rate of economic growth. B. affect the level of profit, but do not affect the rate of economic growth. C. contribute to economic growth. D. hinder economic growth, because they cause unemployment.
Answer:
C. contribute to economic growth
Explanation:
Economic growth is an increase in the the production of goods and services produced in an economy.
Improvements in labor productivity increases the output of labour and as a result contributes to economic growth.
7.. Getaway Travel Company reported net income for 2021 in the amount of $50,000. During 2021, Getaway declared and paid $2,000 in cash dividends on its nonconvertible preferred stock. Getaway also paid $10,000 cash dividends on its common stock. Getaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2021. A 2-for-1 stock split was granted on July 5, 2021. What is the 2021 basic earnings per share
Answer:Earnings per share fOR 2021= 0.53
Explanation:
Earnings per share =Total earnings available to shareholders(Net income - preferred dividends )/Weighted Average Outstanding shares
Net income = $50,000
preferred dividend= $2,000
Total earnings available to common shareholders = $50,000 - $2000= $48,000
using a 2-1 stock spilt , outstanding shares= 40,000 x 2 + 10,000 x 6/12(jan- 1st july ) x 2 = 80,000 + 10,000 = $90,000
Earnings per share = $48,000/ $90,000 =0.53
Suppose taxi fares from Logan Airport to downtown Boston is known to be normally distributed and a sample of seven taxi fares produces a mean fare of $22.31 and a 95% confidence interval of [$20.5051, $24.2091]. Which of the following statements is a valid explanation of the confidence interval.
A) 95% of all taxi fares are between $20.51 and $24.21.
B) We are 95% confident that a randomly selected taxi fare will be between $20.51 and $24.21.
C) The mean amount of a taxi fare is $22.31, 95% of the time.
D) We are 95% confident that the average taxi fare between Logan Airport and downtown Boston will fall between $20.51 and $24.21.
Answer: D) We are 95% confident that the average taxi fare between Logan Airport and downtown Boston will fall between $20.51 and $24.21.
Explanation:
The Confidence interval allows one to speculate between which values the average of a population will be. In a 95% confidence interval, this means that we are 95% certain that the average value of a variable will be between the higher and lower limits set by the interval.
The 95% confidence interval here has an upper limit of $24.2091 and a lower limit of $20.5051 for taxi fares from Logan Airport to downtown Boston. This means that with a 95% certainty, the taxi charge from Logan Airport to downtown Boston will be between these 2 charges so you can expect to pay an amount between them.
Bronn tells Jaime, "I really like your armor." Jaime responds, "I will sell it to you for $800." Bronn states, "Sure, and throw in your sword too." Jaime then writes out the contract, detailing only that he will sell Bronn his armor and the sword. He also lists the delivery date for next Wednesday. The next week on the day of performance, Jaime fails to deliver the armor and sword. Bronn sues him for breach of contract, but Jaime claims the contract is not enforceable because it was missing the price. When Bronn filed his lawsuit, which of the following needed to be included in the written contract for enforceability?
a. signature of both parties
b. price subject
c. matter
d. delivery
e. performance
Answer:
B. price subject
Explanation:
For this contract to be enforceable, it must include price, matter and delivery date. These aspects are all best essential and should be included in the contract. From the question when Jaime wrote the contract he failed to detail the price they agreed upon. Even though the rest were included. Therefore this contract cannot be enforced since it is missing this important aspect. Option b is the answer to the question
Discuss three major factors that contribute to an employee's decision to join a union. Discuss the five reasons that have contributed to the trend of decline in unionization g
Answer:
The answer is below
Explanation:
Three major factors that contribute to an employee's decision to join a union.
1. Greater Bargaining Power
As an individual employee, it can be difficult to negotiate for wage increase or better working condition generally. However, being a member Union, together the group can negotiate and demand for what they feel is right for their members. In a rare occasion, the threat of a strike by a Union is a great tool to bargain well with the employer.
2. Minimize Discrimination
As a Union, it is easier to demand for equality in terms of wage, working condition, promotion, leave etc. Unlike individual employee, who may be facing discrimination from his or her supervisor as to employee related issue. Union can ensure the management used the right policies that seek for equality among all its employees without favoritism or discrimination.
3. Sense of Security
An employee may join the Union on the basis that, Union can save them against abrupt dismissal or other types of work insecurities including accident, injury, illness etc.
Also, Union can help secure retirement benefits and ensure the management improve on the employees' welfare generally.
Five reasons that have contributed to the trend of decline in unionization
1. Irrelevance appearance of the Union:
Many workers believe that Union is not necessary because in the time of economic boom, getting wage increase and other working benefits can be gotten be individual employee and not necessarily through a Union, and at the same time, during economic downturn, unions often times don't have the capacity to protect their members from layoffs, wage and benefit reductions and tougher working conditions.
2. Poor Image of the Union:
Many employers and employees tend to view union with negativity, in the sense that, often times, their demands can be unreasonable, and are characterized by issue of labor racketeering, mob influence and embezzlement.
3. Unions are Seen as Political:
For some employees, they believe that Union tend to use their money or Union dues to support a political candidate. This in turn has made some employees who are neutral, not wanting to join the Union.
4. Reliance on goverment:
Many employees now believe that, government, not Union gives better form of security and voice to air their opinions. These includes pensions, healthcare, protection.
5. Global competition and deregulation in Unionized industries:
Since most of the companies or industries that have union has been deregulated, this has increased its competition, there by, making the need for union not really necessary, because with or without Union, one may still faces sack.
Assume that your parents wanted to have a 170,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 6.5% per year on their investmenets.Required:a. How much would they have to save each year to reach their goal?b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?
Answer:
a. They will have to save $5,245.28 each year to reach their goal of $170,000.
b. They will have to save $925.63 less to reach their new goal of $140,000.
Note: The answer to part b is based on the information in the question. Therefore, the correct answer is "they will have to save $925.63 less" not "save more" as suggested in the question. Kindly confirm this from your teacher.
Explanation:
a. How much would they have to save each year to reach their goal?
Since the saving started on your first birthday to have $170,000 saved, it implies the saving will be on your every birthday for 18 years. Therefore, the relevant formula to use to determine this is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV = Future value of the amount after your 18th birthday = $170,000
M = Yearly saving to have $170,000 = ?
r = interest rate = 6.5%, 0.065
n = number of years this savings will be made = 18
Substituting the values into equation (1) and solve for M, we have:
$170,000 = M * {[(1 + 0.065)^18 - 1] / 0.065}
$170,000 = M * 32.4100673759666
M = $170,000 / 32.4100673759666
M = $5,245.28
Therefore, they will have to save $5,245.28 each year to reach their goal of $170,000.
b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?
First, we have to calculate how much they will save each year, by also using the Future Value (FV) for calculating an Ordinary Annuity as follows:
FVn = Mn * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV1 = New future value of the amount after your 18th birthday = $140,000
M1 = New yearly saving to have $140,000 = ?
r = interest rate = 6.5%, 0.065
n = number of years this savings will be made = 18
Substituting the values into equation (1) and solve for M1, we have:
$140,000 = M1 * {[(1 + 0.065)^18 - 1] / 0.065}
$140,000 = M1 * 32.4100673759666
M1 = $140,000 / 32.4100673759666
M1 = $4,319.65
Therefore, they will have to save $4,319.65 each year to reach their goal of $140,000.
To obtain difference in yearly savings, we have:
Difference in yealy saving = M - M1 = $5,245.28 - $4,319.65 = $925.63
Since $5,245.28 each year to reach their goal of $170,000 is greater than $4,319.65 each year to reach their goal of $140,000, it therefore implies that they will have to save $925.63 less to reach their new goal of $140,000.
IP Company has a preliminary cash balance of $25,000 and an agreement with the bank that it will keep a minimum balance of $20,000. IP Company has a beginning loan balance of $12,000.
The ending loan balance is:________.
Answer: $7,000
Explanation:
From the question, we are informed that IP Company has a preliminary cash balance of $25,000 and an agreement with the bank that it will keep a minimum balance of $20,000 and that IP Company has a beginning loan balance of $12,000.
The ending loan balance will be:
= $20,000 + $12,000 - $25,000
= $32,000 - $25,000
= $7,000
Harvey’s Hardware is thinking about starting a line of lawnmowers to serve its customer base in the summer. The lawnmowers would be priced at $100 and Harvey the manager believes that they would sell 3 units. They have the following estimated costs.
Units Produced Labor Cost Total cost
0 0 100
1 50 150
2 100 200
3 200 300
4 350 450
What is the marginal cost of producing the third unit?
a. $400
b. $300
c. $200
d. $100
Answer:
Harvey's Hardware
Marginal cost of producing the third lawnmowers:
d. $100
Explanation:
Harvey's marginal cost for producing the third unit of lawnmowers is the additional cost that resulted when the total cost increased from $200 to $300. However, it can be deciphered from the case that the marginal cost for Harvey, which it is supposed to be a variable cost, is traceable to the direct labor costs. This implies that the fixed cost element for Harvey in the production of the lawnmowers has been relatively fixed at $100. It does not vary with the volume of production, while the direct labor costs vary with the volume of lawnmowers produced by Harvey.
Which of the following promises is subject to the "strict performance" standard? Assume that performance of the promise is not an express condition of the promisee's duty to perform. cousrse hero
Answer:
A promise to deliver a deed
Explanation:
The term, 'strict performance' is used to describe a contract between two parties. A contract is an agreement between two parties, and it is legally binding. When discharging contracts involving services, 'substantial performance' is required. For example, if I tell a painter to paint my house blue except for the kitchen and storeroom which should be painted white, and he does accordingly but failed in painting the kitchen white, he has performed substantially even though there was a minor breach. The consequences of which would be borne by him.
'Strict performance' is required in contracts where the terms are stated in express terms and the standards are very high. A 'deed' is such a contract because it is a document specifying the legal rights of a person or the ownership of a property. It requires the signatures of the two parties. Therefore, strict performance and adherence to the contractual deed are required.
Time Again LLC produces and sells a mantel clock for $150.00 per unit. In 2017, 43,000 clocks were produced and 36,000 were sold. Other information for the year includes: Direct materials $43.00 per unit Direct manufacturing labor $8.00 per unit Variable manufacturing costs $4.00 per unit Sales commissions $15.00 per part Fixed manufacturing costs $63.00 per unit Administrative expenses, all fixed $38.50 per unit What is the inventoriable cost per unit using absorption costing?
Answer:
Unitary cost= $118
Explanation:
Giving the following information:
Production= 43,000
Direct materials $43.00 per unit
Direct manufacturing labor $8.00 per unit
Variable manufacturing costs $4.00 per unit
Fixed manufacturing costs $63.00 per unit
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary cost= 43 + 8 + 4 + 63
Unitary cost= $118
