Answer:
Break-even point (in units) 1300 units
Break-even point (in dollar) $650,000
Explanation:
The break-even point is the level of sales that is required to cover all fixed costs of the firm and the break-even point in units can be computed thus:
break-even point in units=fixed costs/contribution margin per unit
fixed costs=$260,000
contribution margin per unit=selling price-variable cost
contribution margin per unit=$500-$300
contribution margin per unit=$200
break-even point in units=$260,000/$200
break-even point in units=1,300 units
units Break-even point (in dollar) $=break-even point in units*selling price
break-even point in units=1300*$500
break-even point in units=$650,000
Marwick Corporation issues 8%, 5-year bonds with a par value of $1,100,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%.
What is the bond's issue (selling) price, assuming the following Present Value factors:
1n = i = Present value of an annuity Present value of 1
(Series of payments) (Single sum)
5 8% 3.9927 0.6806
10 4% 8.1109 0.6756
5 6% 4.2124 0.7473
10 3% 8.5302 0.7441
Answer: $1,193,838.80
Explanation:
The price of a bond is the sum of the present value of the coupon payments and the face value at maturity.
= Present value of coupon payments + Present value of face value at maturity
First adjust the variables for semi-annual:
Number of periods = 5 * 2 = 10 semi annual periods
Coupon payment = 8% * 1,100,000 * 1/2 years = $44,000
Yield = 6% / 2 = 3%
Present value of coupon payments:
The coupon payments are constant so are an annuity:
= Annuity * Present value of an annuity factor, 10 periods, 3%
= 44,000 * 8.5302
= $375,328.80
Present value of face value
= 1,100,000 * Present value of 1, 3%, 10 periods
= 1,100,000 * 0.7441
= $818,510
Selling price:
= 375,328.80 + 818,510
= $1,193,838.80
QS 8-4 Units-of-production depreciation LO P1 On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the units-of-production method.
Answer:
$14,355
Explanation:
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
(45/200) x ($65,800 - $2000) =
0.225 x 63800
$14355
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 0.6 hours $ 14.00 per hour Variable overhead 0.6 hours $ 6.00 per hour The company produced 4,600 units in January using 10,120 grams of direct material and 2,100 direct labor-hours. During the month, the company purchased 10,690 grams of the direct material at $7.20 per gram. The actual direct labor rate was $14.55 per hour and the actual variable overhead rate was $5.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:
Common property resources like fish stocks in open waters tend to be overutilized because :________.
A. the marginal social cost is always equal to the private marginal cost.
B. the marginal social cost is less than the private marginal cost.
C. the marginal social cost is greater than the private marginal cost.
D. none of the above.
Answer:
C. the marginal social cost is greater than the private marginal cost.
Explanation:
In the case when there is common property resources such as the fish stock that lies in the open waters should be overutilized as the marginal social cost should be more than the private marginal cost because if there is high utlization so it will make the problem in the environment also the cost should be borne by the present and upcoming generations
Therefore the option c is correct
Fore Farms reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $5 million assessed by the Environmental Protection Agency for violation of a federal law and paid in 2021 and (b) an estimated loss of $12 million from accruing a loss contingency. The loss will be tax deductible when paid in 2022. The enacted tax rate is 25%. There were no tem
Answer: Hello your question is incomplete attached below is the complete question
answer:
1) attached below
2) Net operating income ( loss ) = - $104 million
Explanation:
Pretax operating loss = - $137 million
Non deductible Losses ; $5 million fine paid in 2021 ,
estimated $12 million loss from contingency that will be tax deductible in 2022
Enacted tax rate = 25%
Taxable operating income = - $120 million
attached below is the solution
Customers exhibit a Poisson arrival distribution and the barber must provide an exponential service distribution. Market data indicates that customers arrive at a rate of 2 per hour. It will take an average of 20 minutes to give a haircut, and that business would remain unchanged with customers arriving at a rate of two per hour. Find the following information to help Benny decide if a second chair should be added:
a. The average number of customers waiting.
b. The average time a customer waits.
c. The average time a customer is in the shop.
Answer: the answer is b
Explanation:
pls help me with in this i just want the 3 and 4th one...
Answer:
3. The special concept reminded by the phrase "Exchanging Butter Cake for Dates" is:
Trade by barter.
4. The need fulfilled by this business is people's demand for Cake.
The want fulfilled by this business is the organization's supply of dates for its production of cake.
Explanation:
A trade by barter involves the exchange of one good or service by one trading party for another good or service from the coincidental trading party without the use of money or monetary mediums. Trade by barter enables people without money to fulfill their needs. The major problem with trade by barter is that there must be coincidence of wants by the two trading partners. This is not always feasible.
The biggest question Sally has for you is about recovering the initial capital invested which she wishes to bundle as the initial building and land costs well as the future roof and common area expenses. The income stream for the apartment complex is only monthly rent money. How much should she charge for monthly rent in order to at least recover the bundled capital invested
Answer:
Sally should charge $1,280 per month for 18 months.
Explanation:
Sally has bought the land for $8,000 and she has invested in constructing the building $12,040. She has further invested $2,000 for future roof and common area expenses amount to $1,000. The total capital she has invested is $23,040. She should charge $1,280 per month for next 18 months in order to cover the bundled capital investment.
Stock dividends distributable should be classified on the:________.
A) income statement as an expense.
B) balance sheet as an asset.
C) balance sheet as a liability.
D) balance sheet as an item of stockholders' equity.
Answer:
a) income statement as an expense
Consider the following potential events that might have occurred to Global on December 30, 2010. Global used $20.9 million of its available cash to repay $20.9 million of its long-term debt. Which of the following statements is correct?
a. Global used $20.9 million of its available cash to repay $20.9 million of its long-term debt.
b. A warehouse fire destroyed $4.8 million worth of uninsured inventory.
c. Global used $5.4 million in cash and $5.5 million in new long-term debt to purchase a $10.9 million building.
d. A large customer owing $3.5 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.
e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 55%
f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices.
Answer:
a. Global used $20 million of its available cash to repay $20 million of its long-term debt.
Explanation:
Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Management targets an annual pre-tax income of $1,215,000. Compute the unit sales to earn the target pre-tax net income.
Answer: 9,495 units
Explanation:
First find the contribution margin:
= Sales price - Variable cost
= 540 - 324
= $216 per unit
The unit sales required can be calculated by the formula:
= (Annual pre-tax income target + Fixed cost) / Contribution margin
= (1,215,000 + 836,000) / 216
= 9,495.37 units
= 9,495 units
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs:
Direct materials $5.00
Direct labor 3.00
Variable overhead 1.50
Fixed overhead 7.00
Variable marketing cost 1.20
Fixed overhead per unit 1.20
Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at a price of $24, and fixed marketing and administrative expenses were $130,500.
Required:
1. Calculate the cost of each unit using absorption costing.
2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing?
3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October.
Answer:
Following are the responses to the given question:
Explanation:
For question 1:
Calculating the cost per unit:
[tex]\text{Direct material}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$5\\\\\text{Direct labor} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$3\\\\\text{Variable overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$1.5\\\\\text{Fixed overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$7\\\\\text{Cost per unit}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$16.5\\\\[/tex]
For question 2:
Calculating the ending inventory units:
[tex]= \text{Beginning inventory + units produced - ending inventory}\\\\= 0+40,000-38,400\\\\= 1600\ units\\\\[/tex]
Calculating the cost for the Ending inventory:
[tex]=1600\ units \times \$16.5\\\\=\$26,400\\\\[/tex]
For question 3:
Calculating the absorption costing for the income statement:
Particular Amount
Sales [tex](38,400\times \$24)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$921,600[/tex]
-COGS[tex](38,400\times \$16.5)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$633,600[/tex]
Gross profit [tex]\$288,000[/tex]
Cost of variable marketing [tex](\$1.2\times 38,400)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$46,080[/tex]
marketing and administrative costs are fixed [tex]\$130,500[/tex]
Net income [tex]\$111,420[/tex]
MC Qu. 74 Differential Chemical produced... Differential Chemical produced 12,000 gallons of Preon and 16,000 gallons of Preon. Joint costs incurred in producing the two products totaled $8,500. At the split-off point, Preon has a market value of $6.00 per gallon and Preon $3.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.
Answer:
$5,100
Explanation:
The calculation of the portion of the joint cost for Preon allocation is shown below:
= Total joint cost for two products × (Preon cost ÷ Total cost)
Here,
Total joint cost = $8,500
Preon cost = 12,000 gallons × $6 per gallon = $72,000
And, the total cost is
= 12,000 gallons × $6 per gallon + 16,000 gallons × $3 per gallon
= $72,000 + $48,000
= $120,000
So, the allocated cost should be
= $8,500 × ($72,000 ÷ $120,000)
= $5,100
= $4,500
Blue Spruce University sells 4,500 season basketball tickets at $140 each for its 12-game home schedule. Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized after playing the first home game.
Answer:
a. Total revenue received:
= 4,500 * 140
= $630,000
Date Account Title Debit Credit
XX-XX-XXXX Cash $630,000
Unearned revenue $630,000
Revenue is unearned because the games have not been played yet therefore Blue Spruce University has not provided the service for which it was paid and has not earned the revenue.
b. The revenue per game is:
= 630,000 / 12 games
= $52,500
Date Account Title Debit Credit
XX-XX-XXXX Unearned Revenue $52,500
Revenue - Ticket Sales $52,500
Nate borrowed $38,672 from bank and his friends to expand his casino business. Nate set up an aim to pay $2,450 at the end of each week for 16 weeks. Assume each year has 52 weeks. What are the nominal rate per year and the effective interest rate per year?
Answer:
Hence, the Nominal annual rate is 20.28%.
Effective annual rate is 22.43%.
Explanation:
Amount borrowed = $38,672.
Weekly repayment for 16 weeks = $2,500.
Loan repayment = (Loan amount x r) / {1-(1+r)-n}
$2,450 = ($38,672 x r)/{1-(1+r)-16}
r= 0.39%
Weekly interest rate = 0.39%
Nominal annual rate = 0.39 % x 52 weeks = 20.28%
Effective annual rate = [tex](1 + 0.0039^{52} ) - 1[/tex] = 0.2243 = 22.43%
g A company has beginning inventory of 16 units at a cost of $24 each on February 1. On February 3, it purchases 34 units at $26 each. 22 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that are sold
Answer:
$188
Explanation:
FIFO method assumes that the units to arrive first will be sold first. Hence the cost of sales will be valued using the prices of earlier or older units.
Cost of Sales = 16 units x $24 + 6 units x $26
= $188
Thus, the cost of the 22 units that are sold is $188.
Risk is a necessary ‘evil’ evil’, support this assessment and give advice risk
managers on how to resolve the effects.
For a high-risk investment, managers require a high reward.
The rate of earnings is 6% and the cash to be received in 4 years is $20,000. The present value amount, using the following partial table of present
value of $1 at compound interest is
Year
6%
10%
12%
1
0.943
0.909
0.893
2
0.890
0.826
0.797
3
0.840
0.751
0.712
4
0.792
0.683
0.636
a. $12.720
Ob. $16,800
Oc. 513,660
Od. $15.840
Answer:
$15,840
Explanation:
Present value = Future value / (1 + r)^n
Rate, r = 6% = 0.06
Future value = $20,000
Number of years, n = 4
Present value = $20000 / (1 + 0.06)^4
Present value = $20000 / 1.06^4
Present value = $20,000 / 1.26247696
Present value = $15841.873
Using the partial table of present values :
Present value = Future value * PV(6%, 4)
PV at 6%, 4 years = 0.792
Present value = $20,000 * 0.792 = $15,840
When real GDP grows more slowly than potential GDP, labor productivity falls. the unemployment rate rises. nominal GDP rises. the unemployment rate falls.
Answer:
the unemployment rate rises.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Potential GDP is the GDP of an economy when labour and capital are employed at their sustainable rate.
Real GDP has been adjusted for inflation. It reflects the value of goods and services produced in an economy.
When the real GDP of an economy grows more slowly than potential GDP, it means that the resources in the economy, labour and capital are not employed at their sustainable rate. This is referred to as output gap. As a result of the output gap, the unemployment level rises
Bramble Corp. is planning to sell 1200 boxes of ceramic tile, with production estimated at 1170 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bramble has 3200 pounds of clay mix in beginning inventory and wants to have 4100 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month
Answer: $6,435
Explanation:
Manufacturing overhead is applied at a rate of 110% of direct labor costs.
Direct labor costs:
= Budgeted number of boxes to be produced* number of direct labor hours required * employee salary per hour
= 1,170 * 0.50 * 10
= $5,850
Manufacturing overhead is 110% of this:
= 5,850 * 110/100
= $6,435
Unilever has a subsidiary in Japan. The valuation of this MNC should
rise when an event causes the expected cash flows from Japan to ____
and when JPY is expected to ____.
Answer: increase; appreciate.
Explanation:
A multinational firm is regarded as a firm that's located in different countries. It should be noted that the valuation of this multinational company should
rise when there's an event that causes the expected cash flows from Japan to increase and also when the currency JPY is expected to appreciate. Appreciate her simply means when there's an increase in the value of JPY.
The maximum price that can be asked for the new jPad model is $2,000 at which point they would sell 0 units. It costs Pear $600 to manufacturer and deliver these jPads to their stores. Determine the optimal price for this new jPad, which can be assumed to operate in a monopoly (at least upon introduction).
Answer: $700
Explanation:
Based on the information given in the question, the optimal price for this new jPad, which can be assumed to operate in a monopoly will be calculated thus:
P = 2000+Q
TR = P × Q
TR = (2000 + Q) × Q
TR = 2000Q + Q²
MR = 2000 + 2Q
MC = 600
Since marginal revenue equals to marginal cost, this will be:
MR = MC
2000+2Q = 600
2Q = 2000 - 600
2Q = 1400
Q = 1400/2
Q = 700
An important feature of a job order cost system is that each job:_______.
a. must be similar to previous jobs completed .
b. must be completed before a new job is accepted.
c. consists of one unit of output
d. has its own distinguishing characteristics .
Answer:
D
Explanation:
it has it's own distinguishing characteristics ....Form used to record the cost chargeable to a specific job and to determine the total and unit cost of the completed job
Total planned expenditure (equals total output) is 14,000 when autonomous consumption expenditure is 450. When autonomous consumption expenditure falls to 400, total planned expenditure (equals total output) is 13,800. The marginal propensity to consume is _______. A) 0.89 B) 0.75 C) 0.99 D) 0.44
Answer:
The marginal propensity to consume = 0.25
Explanation:
Given:
Planned expenditure = 14,000
Consumption expenditure = 450
New consumption expenditure = 400
New planned expenditure = 13,800
Find:
The marginal propensity to consume
Computation:
The marginal propensity to consume = [Consumption expenditure - New consumption expenditure] / [Planned expenditure - New planned expenditure]
The marginal propensity to consume = [450 - 400] / [14,000 - 13,800]
The marginal propensity to consume = 50 / 200
The marginal propensity to consume = 0.25
The cost of leather used to produce leather jackets falls by 30%. This will result in ________.
a. a decrease in demand.
b. an increase in the quantity demanded.
c. an increase in demand.
There are different kinds of cost. The above scenario will result in an increase in demand.
A reduction in the price of leather jackets often makes more people to buy leather jackets, hence reducing the demand for sweatshirts.If the price of a good is said to falls, the quantity supplied of that good also decreases. The lower the price, the more the demand for that product.
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U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year
Answer:
$5.5228 million
Or
$5,522,800
Explanation:
First, calculate the present value of all cash outflows
Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )
Where
Initial cost = $13 million
Year 1 cost = $10 million
Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696
Annual Cost = $1.2 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )
Present value of cash outflow = $13 million + $8.696 million + $6.0228 million
Present value of cash outflow = $27.7188 million
Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year
Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years
Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years
Where
Present value of Annual revenue = $27.7188 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Annual Revenue = $27.7188 million / 5.019
Annual Revenue = $5.5228 million
Annual Revenue = $5,522,800
what is the various nation income meature
Explanation:
Concept of National Income
The National income is the total amount of income accruing to a country from economic activities in a year time. It includes payments made to all resources either in the form of wages, interest, rent, and profit.
A company produces a single product. Variable production costs are $12.50 per unit and variable selling and administrative expenses are $3.50 per unit. Fixed manufacturing overhead totals $41,000 and fixed selling and administration expenses total $45,000. Assuming a beginning inventory of zero, production of 4,500 units and sales of 3,850 units, the dollar value of the ending inventory under variable costing would be: Multiple Choice $10,400 $5,850 $8,125 $13,975
Answer:
the third option is correct - $8,125
Explanation:
The calculation of the ending inventory under variable costing is given below:
Ending inventory value (Variable costing) os
= Variable production cost per unit × No. of units
= $12.50 × (4,500 - 3,850)
= $8,125,
Hence, the ending inventory under variable costing is $8,125
Therefore the third option is correct
The Most Brilliant Professor Mullen Company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder (5%) is never collected. Budgeted credit sales were: January $240,000 February 144,000 March 360,000 The cash inflow (CRJ) in the month of March is expected to be A) $271,200. B) $205,200. C) $216,000. D) $259,200.
Answer: A. $271,200
Explanation:
Cash inflow in March will be:
= (60% * March sales) + (30% * February sales) + (5% * January sales)
= (60% * 360,000) + (30% * 144,000) + (5% * 240,000)
= 216,000 + 43,200 + 12,000
= $271,200
The production possibilities model illustrates an inverse relationship between two goods or services because Group of answer choices of diminishing returns. some goods are more difficult to produce that others. the opportunity cost of producing more of something will rise. production of different types will compete for limited resources.
Answer:
production of different types will compete for limited resources.
Explanation:
The production possibilities curve (PPC) is also known as the production possibilities frontier (PPF) and its a curve which illustrates the maximum (best) combinations of two products that can be produce in an economy if they both depend on these factors;
1. Technology is fixed.
2. Resources are fixed.
Hence, the production possibilities curve represents maximum combinations of products available with fixed resources and technology.
Additionally, the production possibilities curve influences the choice of production used by companies and as such it helps to make the best decision regarding the optimum product mix for a company.
Basically, the production possibilities model illustrates an inverse relationship between two goods or services (an increase in the production of one good or service results in a decrease in the production of another and vice-versa) because production of different types will compete for limited resources.
This ultimately implies that the manufacturing or production of one item (product) is likely to rise or increase provided the production of the other item (product) falls or decreases.
