Answer:
Company A
The cost assigned to Ending Inventory under periodic inventory system and based on the weighted average method is:
= $465
Explanation:
a) Data and Calculations:
Units Unit Cost Total Costs
Beginning inventory on January 1 320 $ 3.00 $960 (320 * $3.00)
Purchase on January 9 80 3.20 256 (80 * $3.20)
Purchase on January 25 100 3.34 334 (100 * $3.34)
Total 500 $3.10 $1,550 ($1,550/500)
Units sold -350 $3.10 -$1,085 (350 * $3.10)
Ending inventory 150 $3.10 $465 (130 * $3.10)
Fixed expenses are $17,000 per month. The company is currently selling 800 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $5 per unit. In exchange, the sales staff would accept a decrease in their salaries of $6,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change?
Answer:
There is a cost-saving of $1,000 per month as a result of the change. This cost-saving increases the monthly net operating income by $1,000.
Explanation:
a) Data and Calculations:
Fixed monthly expenses = $17,000
Current sales units per month = 800
Proposed sales commission per unit = $5
Decrease in salaries per month = $6,000
Increase in sales units per month = 200
Change
Before After Difference
Fixed monthly expenses $17,000 $11,000 $6,000
Variable cost per month 0 5,000 -5,000
Total cost per month $17,000 $16,000 $1,000
Sales units per month 800 1,000 200 units
b) The effect on the company's monthly net operating income is a reduction in the total cost per month by $1,000. There is also an increase in the units sold per month by 200 units. If the selling price is determined, the net operating income will also increase by the product of the contribution margin per unit and 200.
Ngân hàng thương mại có tỷ lệ an toàn vốn tối thiểu là 8% và tỷ suất sinh lời trên tài sản có hằng năm như sau : năm 1998 có ROA là 14.3% , năm 1999 có ROA là 17.0% , năm 2000 có ROA là 15.1% , năm 2001 có ROA là 12.2% , năm 2002 có ROA 9.8%, năm 2003 có ROA là 7.5% , năm 2004 có ROA là 13.8% , năm 2005 có ROA là 13.5% , năm 2006 có ROA là 16.3% , năm 2007 có ROA là 15.7% , năm 2008 có ROA là 15.8% , năm 2009 có ROA là 16.0% , năm 2010 có ROA là 14.9% , năm 2011 có ROA là 14.6% , năm 2012 có ROA là 12.4% . yêu cầu : ước lượng chỉ số Z đánh giá nguy cơ phá sản ?
Answer:
???????
Explanation:
Lap Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 80,000 units, 100% complete with respect to materials and 25% complete with respect to conversion costs. The total dollar value of this inventory was $226,000. During the month, 150,000 units were transferred out of the department. The costs per equivalent unit for the month were $2.00 for materials and $3.50 for conversion costs. The cost of the units completed and transferred out of the department was:
Answer:
Lap Corporation
The cost of the units completed and transferred out of the department was:
= $825,000.
Explanation:
a) Data and Calculations:
Beginning work in process inventory = 80,000 units
Degree of completion = 100% materials and 25% conversion
Cost of beginning work in process = $226,000
Units transferred out = 150,000
Materials Conversion Total
Costs per equivalent unit $2 $3.50
Cost of units transferred out $300,000 $525,000 $825,000
= (150,000 * $2) (150,000 * $3.50)
The balance in retained earnings at December 31, 2020 was $1,440,000 and at December 31, 2021 was $1,164,000. Net income for 2021 was $1,000,000. A stock dividend was declared and distributed which increased common stock $500,000 and paid-in capital $220,000. A cash dividend was declared and paid.
The stock dividend should be reported on the statement of cash flows (indirect method) as: ____________
a. an outflow from investing activities of $720,000.
b. an outflow from financing activities of $720,000.
c. an outflow from financing activities of $500,000.
d. Stock dividends are not shown on a statement of cash flows.
Answer: d. Stock dividends are not shown on a statement of cash flows.
Explanation:
A stock stock dividend refers to the dividend payment to the shareholders of s company that is not made in cash but rather it's made in shares.
It should be noted that the stock dividend is not reported on the cash flow statement. The reason for this is because it's a non cash item and also doesn't allow cash outflow. Therefore, it won't be reported.
Therefore, the correct option is D.
If the economy is in an expansionary period, appropriate policies to pursue may include: Group of answer choices an income tax cut that shifts the AD curve to the right. consumer investment incentives that shift the AD curve to the right business investment incentives that shift the AD curve to the left. a reduction in government spending that shifts the AD curve to the left.
Answer:
curve to the right business investment incentives
Sheffield Corp. has old inventory on hand that cost $21000. Its scrap value is $30000. The inventory could be sold for $70000 if manufactured further at an additional cost of $21000. What should Sheffield do?
Answer:
Sell the inventory for $30000 scrap value
Explanation:
In the first place, if the old inventory is disposed of at $30,000 and cash inflow of $30,000 would be received
However, if manufactured by further by incurring an additional cost of $21,000,the incremental income is computed thus:
incremental income=sales value-scrap value-additional cost
Remember scrap value is a lost benefit if the inventory is processed further and not sold in its current state.
incremental income=$70,000-$30,000-$21000
incremental income=$19,000(less than cash flow when disposed of at scrap value, hence, the inventory should be sold at $30,000)
The following items may appear on a bank statement: 1. NSF check 2. EFT Deposit 3. Service charge 4. Bank correction of an error from recording a $300 deposit as $30. Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or
Answer:
1. NSF check
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
2. EFT Deposit
- Appears on the Bank Statement as: Crediit Memo
- Increases the Balance of the Company's Bank Account
3. Service charge
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
4. Bank correction of an error from recording a $300 deposit as $30
- Appears on the Bank Statement as: Debit Memo
- Increases the Balance of the Company's Bank Account
A major distinction between a conventional bank and an Islamic bank is that Islamic banks __ are allowed to charge higher interest on loans. cannot accept private deposits. cannot pay or charge interest. are not subject to any form of law,
Answer:
cannot pay or charge interest.
Explanation:
Islamic banks are banks that are based on Islamic laws or Sharia laws which is found in the Qur'an.
In Islamic banking, all banking transactions must be compliant with the Sharia laws.
Islamic banks differ from conventional banks in that :
1. they prohibit usury : Usury is charging interest on loans
2. they prohibit all forms of speculation : Islamic laws prohibit all forms of gambling
3. Investments in items that are not allowed in the Qur'an e.g. alcohol
Islamic bank use equity participation to make money. When an Islamic bank lends money to a business, instead of charging interest on the loan, the receive equity in that business and are entitled to a part of the company's shares
The vice president of operations of Free Ride Bike Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Road Bike Division Mountain Bike Division Sales $1,728,000 $1,760,000 Cost of goods sold 1,380,000 1,400,000 Operating expenses 175,200 236,800 Invested assets 1,440,000 800,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations.
Answer:
Road Bike Division Mountain Bike Division
Net Income $172,800 $123,200
Explanation:
Preparation condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations.
Road Bike Division Mountain Bike Division
Sales $1,728,000 $1,760,000
Less Cost of goods sold 1,380,000 1,400,000
Gross profit $348,000 $360,000
Less Operating expenses 175,200 236,800
Net Income $172,800 $123,200
Therefore condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations will be:
Road Bike Division Mountain Bike Division
Net Income $172,800 $123,200
Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of the kits next quarter at a price of $11, and the other 50 kits in the third quarter at a price of $12. It takes a full quarter for Ponzi to collect its bills from its customers. (Ignore possible sales in earlier or later quarters.)
a. What is the net income for Ponzi next quarter?
b. What are the cash flows for the company this quarter?
c. What are the cash flows for the company in the third quarter?
d. What is Ponzi’s net working capital in the next quarter?
Answer:
Ponzi Products
a) Net income for the next quarter:
= $50
b) Cash outflow for this quarter = $1,000
c) Cash inflow in the third quarter = $550
d) Net working capital in the next quarter = $550
Explanation:
a) Production of chain-letter kits for the quarter = 100 units
Total production cost (outlay) = $1,000 (100 * $10)
Sales in the second quarter = $550 (50 * $11)
Sales in the third quarter = $600 (50 * $12)
Cash collections:
Third quarter = $550
Fourth quarter = $600
a) Net income for the next quarter:
Sales revenue = $550
Production cost 500 ($1,100 * 50/100)
Net income = $50 ($550 - $500)
b) Cash outflow for this quarter = $1,000
c) Cash inflow in the third quarter = $550
d) Net working capital in the next quarter = $550
You report to Sofia Cardenas-Bratton, the Marketing Manager for Klamath, but she confesses that her experience with social media consists of an online course that she took on how businesses effectively use social media, so she is relying on you to help shape Klamath's social media strategy. You suggest that you'd like to start with regularly publishing a blog to reinforce Klamath's value to its customers. You point out it's important to publish posts on a regular basis in order to keep visitors engaged, and one study found that publishing blogs at least 11 times per month generated the most traffic on company websites. You and Sofia brainstorm about topics for the first week's blogs and come up with a list of three topics that you both feel will be of value to Klamath's customers: improving your credit score, the advantages of community banks vs. large banks, and buying a house. In which order are you going to tackle these blogs
The order in which I would tackle these blogs are: buying a house, improving your credit score, and the advantages of community banks.
Since the blogs are meant to benefit the customers of Klamath the most, the first issue to tackle is on the purchase of a house, which is always rated high by customers.
The purchase of a house will also help to improve the credit scores of customers because customers who own their houses attract higher credit scores than those without houses of their own.
Then, the issue of credit scores will be tackled in the next blog, followed by the advantages of community banks vs. large banks.
Thus, tackling this blog dealing on an issue that is very dear to customers will be the first before other issues are tackled.
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You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $30,000 for 25 years after retirement. During the period before retirement you can earn 11 percent annually, while after retirement you can earn 13 percent on your money. What annual contributions to the retirement fund will allow you to receive the $30,000 annuity
Answer:
$3,425.08
Explanation:
The computation of the annual contributions to the retirement fund is shown below:
The Present value of the annuity is
= $30,000 × [1 - (1 ÷ (1 + 13%)^25)] ÷ 13%
= $219,899.55
Now
Future value of annuity = P×[(1+r)^n-1]÷r
$219,899.55 = P×[(1+11%)^20-1]÷11%
Hence, Annual contribution required, P = $3,425.08
Demand for a specific design of dinning sets has been fairly large in the past several years and Statewide Furnishings, Inc. usually orders new dinning sets 10 times a year. It is estimated that the ordering cost is $400 per order. The carrying cost is $50 per unit per year. Furthermore, State Wide Furnishings, Inc. has estimated that the stock out cost is $120 per unit per year. Based on forecast, the annual demand is 600 units. State Wide Furnishings, Inc. has 350 working days in a year and its lead time is 14 working days.
Assume shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the annual ordering cost.
a. 592.82
b. 1472.01
c. 2051.28
d. 4116.11
e. None of the above
Answer:
e. None of the above
Explanation:
Annual demand, D = 600 units
Ordering cost, S = $400
Holding cost, H = $50
Economic order quantity without stock-out = SQRT(2*D*S/H)
Economic order quantity without stock-out = SQRT(2*600*400/50)
Economic order quantity without stock-out = 98
Total annual ordering cost = (D/Q)*S + (Q/2)*H
Total annual ordering cost = (600/98)*$400 + (98/2)*$50
Total annual ordering cost = $2,448.97 + $2,450
Total annual ordering cost = $4,898.97
Futures contracts differ from forward contracts in that a. futures contracts are between the individual hedger and speculator. b. futures contracts are personalized, unique contracts; forwards are standardized. c. futures contracts are marked to market daily with changes in value added to or subtracted from the accounts of the buyer and the seller. d. forward contracts always require a margin deposit.
Answer:
c. futures contracts are marked to market daily with changes in value added to or subtracted from the accounts of the buyer and the seller.
Explanation:
The future cost should be different from the forward contract in the case when the future contract are considered to be marked on the daily market along the value change that are added or deducted from the buyer and seller accounts
So as per the given situation, the option c is correct
A company has a process that results in 24.000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $160,000 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold
Answer:
Yes the management should sell product A and processed further
Explanation:
Please mark me as brainlyest
Many people have strong negative reactions to pop-up, pop-behind, interstitial, and rich media ads. Assume you are the director of an advertising agency that specializes in creating and placing these ads. You see an opinion article in your local online newspaper that harshly criticizes these ads as intrusive and unnecessary. Write a details rejoinder to post in the comments section of this article in which you explain, from the advertiser’s viewpoint, why these ads can be more effective advertising media than text ads.
Answer:
Im on a private jet eating popeyes chicken, i be flexing like im eating popeyes spinach
Explanation:
plato users
You have a portfolio that is 29 percent invested in Stock R, 12 percent invested in Stock S, with the remainder in Stock T. The expected return on these stocks is 9.8 percent, 11.2 percent, and 13.5 percent, respectively. What is the expected return on the portfolio
Answer: 12.15%
Explanation:
The expected return is a weighted average of the returns of the individual stocks and the percentage of the portfolio invested in them.
= (Weight of R * Return of R) + (Weight of S + Return of S) + (Weight of T + Return of T)
= (29% * 9.8%) + (12% * 11.2%) + ( (1 - 29% - 12%) * 13.5%)
= 12.15%
A student got a $5000 grant per quarter and the opportunity to work on campus at a rate of $12 per hour, but no more than 15 hours per week. The quarter last 10 weeks. The student aid office charges 5% of handling fees and the state has an 8% income tax. If E is 'earnings at the end of the quarter,' H is 'hours of work per week,' the model that calculates the income of the student at the end of the quarter is :____________
Hi, you've asked an incomplete question. The options read;
a) E= 5000 (1-0.05) + 10 * 12 * H * (1 - 0.08).
b) E= 5000 (1-0.05) + 10 * 12 * H * (1 - 0.08) H≤15 (this reads: H less or equal to 15.
c) E= 5000 * (1 - 0.95) + 12 * H * (1 - 0.08) H≤15 [this reads: H less or equal to 15].
d) E= 5000 (1-0.05) + 12 * H * (1-0.08).
Answer:
b) E= 5000 (1-0.05) + 10 * 12 * H * (1 - 0.08) H≤15 (this reads: H less or equal to 15.
Explanation:
Using this model we note the following,
H is represented by 15 (hours)5% handling fee represented by 0.058% income tax is represented by 0.08rate is represented by 12 ($)Substituting this data into the model we have:
⇒ 5000 (1-0.05) + 10 * 12 * 15 * (1 - 0.08)
⇒ 4750 + 1800 (1-0.08)
⇒ 4750+1656 = $6406.
An electronics store introduces three new types of music players to its customers. Each of the new music players are priced at $99, $79, and $59. Which psychological pricing approach is the store using to price the music players
Answer: The case of the number nine
Explanation:
Studies have shown that the human brain prefers to buy things whose prices end with the number 9 as opposed to zero such as 10 or 100.
The brain apparently interprets the number 9 at the end of a price to mean that the person is saving money and getting better value by buying the product. In making all three prices end in nine, the electronics store is using this psychological pricing strategy.
he following transactions are for Alonzo Company.
1. On December 3, Alonzo Company sold $500,000 of merchandise to Artis Co. on account. The cost of the merchandise sold was $330,000.
2. On December 8, Artis Co. returned $25,000 of merchandise purchased on December 3. The cost of the goods was $16,000.
3. On December 13, Alonzo Company received the balance due from Artis Co.
Prepare a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Assets
=
Liabilities
+
Stockholders' Equity
Retained Earnings
Date
Cash
+
Accts.
Rec.
+
Inventory
=
Accts.
Pay.
+
Common Stock
+
Rev.
-
Exp.
Answer:
1. Dec. 3
Dr Account Receivable $500,000
Cr Sales Revenue $500,000
Dr Cost of goods sold $330,000
Cr Inventory $330,000
2. Dec. 8
Dr Sales Returns and Allowances $25,000
Cr Accounts Receivable $25,000
3. Dec. 13
Dr Cash $470,250
Cr Sales Discounts $4,750
Cr Accounts Receivable $475,000
Explanation:
Preparation of a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system
1. Dec. 3
Dr Account Receivable $500,000
Cr Sales Revenue $500,000
(To record the sales on account)
Dr Cost of goods sold $330,000
Cr Inventory $330,000
(To record the cost of goods sold)
2. Dec. 8
Dr Sales Returns and Allowances $25,000
Cr Accounts Receivable $25,000
(To record the Sales return and allowance)
3. Dec. 13
Dr Cash $470,250
($475,000 - $4,750)
Cr Sales Discounts $4,750
[($500,000 - $25,000) * 1%]
Cr Accounts Receivable $475,000
($500,000 - $25,000)
(To record the balance due from Arte Co.)
The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $8.10/unit; direct labor, $11.10/unit; and manufacturing overhead, $373,100 $9.10/unit. Required: If anticipated production for 2013 is 41,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)
Answer:
Variable costing $28.3
Absorption costing $37.4
Explanation:
Calculation to determine the unit cost using variable costing and absorption costing.
VARIABLE COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit
Units cost $28.3
ABSORPTION COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit.
Fixed manufacturing overhead per unit $9.10/unit.
($373,100 ÷ 41,000 units)
Units cost $37.4
Therefore the unit cost using variable costing and absorption costing are:
Variable costing $28.3
Absorption costing $37.4
. If it outsources the navigation system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $2000 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing
Answer: $2,425
Explanation:
Fruit Boat should not pay more for the contract than they would if they were producing the good themselves.
= Variable cost + Avoidable fixed costs + Opportunity cost per month
Avoidable fixed cost = (39,000 / 2) / 10 boats = 19,500 / 10 = $1,950
Opportunity cost per month = 2,000 / 10 boats
= $200
Contract price = 275 + 1,950 + 200
= $2,425
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per unit, Direct labor, $4 per unit, Variable overhead, $5 per unit, and Fixed overhead, $240,000. The company produced 30,000 units, and sold 20,000 units, leaving 10,000 units in inventory at year-end. Income calculated under variable costing is determined to be $370,000. How much income is reported under absorption costing?
a. $370,000
b. $290,000
c. $610,000
d. $450,000
Answer: d. $450,000
Explanation:
In absorption costing, the fixed costs are absorbed by the products so that the cost of goods sold is inclusive of fixed costs.
First find the fixed overhead for the ending inventory:
= Fixed overhead per unit * Number of units in ending inventory
= 240,000 / 30,000 * 10,000
= $80,000
This is the fixed overhead that is deferred to the next year.
Income under absorption costing = Income under variable costing + Fixed overhead deferred:
= 370,000 + 80,000
= $450,000
An important sustainability issue that has received much more scrutiny in recent years is the: focus on adequate inventory levels. reduction in packaging waste by using alternate materials. effort to move warehouse storage closer to consumers. emphasis on materials handling and warehouse design. none of the above
Answer:
reduction in packaging waste by using alternate materials.
Explanation:
An important sustainability issue that has received much more scrutiny in recent years is the reduction in packaging waste through the use of alternative materials. You can see this happening through new laws that prohibit the use of plastic bags in supermarkets and plastic drinking straws, for example.
There are several companies that seek the use of biodegradable packaging, even if these are not provided for by law. Companies seek to adopt sustainable actions in their processes to demonstrate to their stakeholders that they follow ideal standards of environmental preservation and social awareness. This is a positive type of marketing for companies, as the population is more aware and wants to consume more from environmentally responsible companies.These companies then become more valued by their consumers and consequently more competitive and well positioned in the market
Larned Corporation recorded the following transactions for the just completed month.
$79,000 in raw materials were purchased on account.
$77,000 in raw materials were used in production. Of this amount, $65,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $109,500 were paid in cash. Of this amount, $100,900 was for direct labor and the remainder was for indirect labor.
Depreciation of $195,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer:good question. Wait for the answer
Explanation:
Papermill Plc was acquired by a private equity firm, whose investment horizon is 5 years and minimum IRR requirement is 20.0%. The private equity firm estimates the exit EBITDA and exit EV EBITDA multiple to be 1,200.0 and 11.0x, respectively. The EBITDA at entry is 1,100.0 and the amount of debt financing raised at entry is 7.0x EBITDA. The cash flow model built by the private equity firm estimates the debt to be 5.0x EBITDA at exit. Using the assumptions above, estimate the equity funding of the deal at entry.
Sales 1,000.0
Cost of goods sold 600.0
Selling, general and administration 100.0
Interest expense 50.0
Tax expense 75.0
The estimated equity funding of the deal at entry is $2,893.52
EV means Enterprise value
EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortization
Given that the private equity firm estimates that:
Exit EBITDA = 1,200
EV / EBITDA = 11.0x
To derive EV from the EV / EBITDA, then EV / EBITDA is multiplied by EBITDA.
EV = EV / EBITDA * EBITDA (i.e.)
EV = 11 * 1,200
EV = 13,200
Given that the private equity firm estimates the debt to be 5.0x EBITDA at exit.
Debt = 5.0 * EBITDA at exit
Debt = 5.0 * 1,200
Debt = 6,000
To derive the equity value at exit, the debt is subtracted from the EV
Equity value at exit = EV - Debt
Equity value at exit = 13,200 - 6,000
Equity value at exit = 7,200
The equity funding of the deal at entry will be derived using this formula "Equity value at exit / (1 + IRR)^n" where IRR is 20% and n is 5 years
Equity funding of the deal at entry = 7,200 / (1 + 20%)^5
Equity funding of the deal at entry = 7,200 / (1 + 0.20)^5
Equity funding of the deal at entry = 7,200 / (1.20)^5
Equity funding of the deal at entry = 7,200 / 2.48832
Equity funding of the deal at entry = 2893.518518518519
Equity funding of the deal at entry = $2,893.52 (approx).
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Pasha works for a manufacturing company in a small town. He reports to his manager that the company is not fulfilling its commitment to the community to reduce pollutants. His manager tells him to ignore the issue and not tell anyone. This is an example of a(n)___________. approach to social responsibility.
a. defensive
b. accommodative
c. reactive
d. obstructionist
e. proactive
Answer:
d. obstructionist
Explanation:
Since in the question it is given that pasha reported his manager that company is not able to fulfill the commitment in order to decrease pollution but the manager said that ignore this issue also dont tell anyone so this represent an obstructionist approach as the firm or the company avoids the social environmental problems so indirectly it breaks the law and their conduct is to be considered as an unethical
Therefore, the option d is correct
Alieia Boat Company manufactures 10 luxury yachts per month. A navigation system is included in each yacht. Alieia Boat manufactures the navigation system in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $300, and the fixed costs are $38,000 per month. If it outsources the security system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $3000 per month of rental income. What is the maximum contract cost that Alieia should pay for outsourcing?
a) any cost lower than $2500 per unit
b) any cost lower than $2200 per unit
c) any cost lower than $300 per unit
d) any cost lower than $3800 per unit
Answer:
a) any cost lower than $2500 per unit
Explanation:
total avoidable costs = ($300 * 10) + ($38,000 / 2) + $3,000 = $25,000
total number of navigation systems prodcued per month = 10
avoidable cost per navigation system = $25,000 / 10 = $2,500
this means that th e comapny could pay up to $2,500 per navigtion system provided by an extrenal supplier
If labor productivities were exactly proportional to wage levels internationally, this would A) not negate the logical basis for trade in the Ricardian model. B) render the Ricardian model theoretically correct but practically useless. C) negate the logical basis for trade in the Ricardian model. D) negate the applicability of the Ricardian model if the number of products were greater than the number of trading partners. E) demonstrate the validity of the Ricardian model.
Answer:
A)not negate the logical basis for trade in the Ricardian model.
Explanation:
Trade can be regarded as basic economic concept which involves the buying as well as selling of goods and services, having a compensation that is been paid by a buyer to a seller.
The Ricardian model can be regarded as model that incorporates the standard assumptions of a perfect competition. This model in it's simplest form give assumption of two countries that are producing two goods, but uses one factor of production, the goods here are usually assumed to be identical, or to be homogeneous, within as well as across countries. It should be noted that when there is higher wage, there will be greater number of workers that are willing to work and vice versa, which defined the relationship between wages and productivity. productivity gives the
measurement of how efficiently labor
is been utilized when producing goods and services.
It should be noted that If labor productivities were exactly proportional to wage levels internationally, this would not negate the logical basis for trade in the Ricardian model.
Panther Co. had a quality-assurance warranty liability of $350,000 at the beginning of 2021 and $310,000 at the end of 2021. Warranty expense is based on 4% of sales, which were $50 million for the year. What amount of warranty costs were paid during 2021?
a. $0.
b. $1,960,000.
c. $2,000,000.
d. $2,040,000.
Answer:B
Explanation: :)
