Fruit Pie Inc. has three product lines—Strawberry, Cherry, and Apple. The following information is available:
Strawberry Cherry Apple
Sales revenue $70,000 $60,000 $31,000
Variable costs (20,000) (15,000) (11,000)
Contribution margin $50,000 $45,000 $20,000
Fixed costs (20,000) (5000) (25,000)
Operating income (loss) $30,000 $40,000 $(5000)
The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.
Group of answer choices
$25,000
$65,000
$11,000
$20,000
Answer:
Fruit Pie Inc.
Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.
= $65,000.
Explanation:
a) Data and Calculations:
Strawberry Cherry Apple
Sales revenue $70,000 $60,000 $31,000
Variable costs (20,000) (15,000) (11,000)
Contribution margin $50,000 $45,000 $20,000
Fixed costs (20,000) (5000) (25,000)
Operating income (loss) $30,000 $40,000 $(5000)
Income Statement after the Elimination of Apple:
Strawberry Cherry Total
Sales revenue $70,000 $60,000 $130,000
Variable costs (20,000) (15,000) (35,000)
Contribution margin $50,000 $45,000 $95,000
Fixed costs (20,000) (5000) (25,000)
Fixed costs (Apple's) (25,000)
Rent income 20,000
Operating income (loss) $30,000 $40,000) $65,000
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 250,000 shares of cumulative, preferred 2% stock, $20 par, and 500,000 shares of common stock, $15 par. Assuming a market price per share of $25.00 for the preferred stock and $17.50 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock.
Answer:
Pecan Theatre Inc.
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Explanation:
a) Data and Calculations:
Dividends: Cumulative Common Stock
Preferred Stock Dividends
Dividends Per share Per share
20Y1, $80,000 $80,000 $0.40 $0 $0
20Y2, $90,000 90,000 $0.40 0 $0
20Y3, $150,000 150,000 $0.40 0 $0
20Y4, $150,000 100,000 $0.40 50,000 $0.10
20Y5, $160,000 100,000 $0.40 60,000 $0.12
20Y6, $180,000 100,000 $0.40 80,000 $0.16
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Average annual percentage return = Dividend per share/Initial Cost per share
Stephen is a graduate student at West University. He works part-time at the campus coffee shop earning $5,000 this year. Stephen also receives a $25,000 scholarship that pays for his tuition, fees, and books. What amount does Stephen include in his gross income
Answer:
5,000
Explanation:
Stephen is a graduate student at a university
He works part time at a shop where he earns 5,000 this is als like compensation
He receives $25,000 for scholarships
The amount Stephen includes in id groas income is 5,000
Mr A is unemployed but he decides to move out the labor market to stay at home and enjoy the rest of his life by inheritance. Other things equal, the action will decrease the unemployment rate. True or false? and why
Answer:
False
Explanation:
In general, the unemployment rate in the United States is obtained by dividing the number of unemployed persons by the number of persons in the labor force (employed or unemployed) and multiplying that figure by 100.
https://www.britannica.com › story
la·bor forceall the members of a particular organization or population who are able to work, viewed collectively.
"a firm with a labor force of one hundred people"
Dictionary
Definitions from Oxford Languages
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $148,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000.
Required:
a. Compute the depreciable cost per unit.
b. Prepare a depreciation schedule.
MC Qu. 101 The following information... The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: Actual hours used 46,000 Actual rate per hour $ 16 Standard rate per hour $ 15 Standard hours for units produced 48,000
Answer:
$46,000 Unfavorable
Explanation:
Calculation to determine what The direct labor rate variance is:
Using this formula
Direct labor rate variance = Actual hours * ( Actual Rate - Standard Rate)
Let plug in the formula
Direct labor rate variance=46000*($16- $15)
Direct labor rate variance=46,000*$1
Direct labor rate variance=$46,000 Unfavorable
Therefore The direct labor rate variance is: $46,000 Unfavorable
On October 1, 2020 Sheffield Corp. issued 5%, 10-year bonds with a face value of $6140000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Sheffield Corp. would be:_________
Answer: $70610
Explanation:
Following the information given, the issue price of the bond will be:
= $6,140,000 × 1.04
= $6,385,600
The premium on bonds payables will be:
= $6,385,600 - $6,140,000
= $245,600
Cash interest Payables will be:
= 6,140,000 × 5% × 3/12
= $76,750
Bond Premium amortization for Each Year will be:
= 245,600 / 10
= $24,560
Then, the premium amortized will be:
= $24,560 × 3/12
= $6,140
Therefore, the interest expenses on Dec 31 will be:
= Cash interset Payables - Premium amortized
= $76,750 - $6,140
= $70,610
The closer the smoothing constant, ALPHA, is to 0 the greater the reaction to the most recent demand the greater the dampening, or smoothing, effect the more accurate the forecast will be the less accurate the forecast will be
Answer: the greater the dampening, or smoothing effect
Explanation:
The smoothing constant determines the level at which a forecast is influenced by previous observations. It simply determine the sensitivity of forecasts with regards to the changes in demand.
It should be noted that large values of α will lead to a scenario whereby forecasts will be more responsive to the more recent levels. On the other hand, the smaller values will result in a damping effect. Therefore, the closer the smoothing constant to α, the greater the dampening, or smoothing effect.
Paige Company estimates that unit sales will be 10,700 in quarter 1, 12,400 in quarter 2, 14,600 in quarter 3, and 18,700 in quarter 4. Using a sales price of $83 per unit. Prepare the sales budget by quarters for the year ending December 31, 2017.
Answer:
From the attached excel file, we have:
Quarter 1 Sales Value = $888,100
Quarter 2 Sales Value = $1,029,200
Quarter 3 Sales Value = $1,211,800
Quarter 4 Sales Value = $1,552,100
Year = $4,681,200
Explanation:
Note: See the attached excel file for the the sales budget by quarters for the year ending December 31, 2017.
From the attached excel file, we have:
Quarter 1 Sales Value = $888,100
Quarter 2 Sales Value = $1,029,200
Quarter 3 Sales Value = $1,211,800
Quarter 4 Sales Value = $1,552,100
Year = $4,681,200
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.
Statement Consumer Surplus Producer Surplus Neither
Even though I was willing to pay up to $83 for a watch, I bought a watch for only $75.
I sold a used textbook for $55, even though I was willing to go as low as $47 in order to sell it.
A local store was having a sale on sweaters, so I bought a jersey sweater for my brother.
Answer:
Consumer surplus
producer surplus
neither
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
The willingness to pay for the watch was $83 but the watch was bought for $75. There is a consumer surplus from the purchase
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The least price the seller was willing to accept for the purchase was $47 but he was paid $55 for the textbook. This is a producer surplus
Who sets the amount or rate of real estate commissions?
Answer:
q
Explanation:
what are the purpose of the information in Management?
Answer:
The purpose of information management is to: design, develop, manage, and use information with insight and innovation. support decision making and create value for individuals, organizations, communities, and societies.
Answer:
It helps dictate how businesses form strategies, and implement processes based on them.
Rajiv loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fundraising drives. Economists would call Rajiv a . True or False: The government can solve the problem caused by people like Rajiv by sponsoring the show and paying for it with tax revenue collected from everyone. True False True or False: The private market can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would be excludable and thus no longer a public good. True False
Answer:
free rider
true
true
Explanation:
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
Downtown abbey can be classified as a public good, if it is made a private good, the problem would be solved
A public good is a good that is non excludable and non rivalrous.
A private good is a good that is excludable and rivalrous. They are usually exchanged in the market by private sector businesses. It
The WRT Corporation makes collections on sales according to the following schedule:
25% in month of sale
65% in month following sale
5% in second month following sale
5% uncollectible
The following sales have been budgeted:
Sales
April $120,000
May $100,000
June $110,000
Budgeted cash collections in June would be:_____.
a. $27,500.
b. $98,500.
c. $71,000.
d. $115,500.
Answer:
Total cash collection June= $98,500
Explanation:
Giving the following information:
25% in month of sale
65% in month following sale
5% in second month following sale
5% uncollectible
The following sales have been budgeted:
Sales
April $120,000
May $100,000
June $110,000
Cash collection June:
Cash collection from June= 110,000*0.25= 27,500
Cash collection from May= 100,000*0.65= 65,000
Cash collection from April= 120,000*0.05= 6,000
Total cash collection June= $98,500
At the beginning of the year, Shinedown, Corp., had a long-term debt balance of $46,880. During the year, the company repaid a long-term loan in the amount of $12,805. The company paid $4,890 in interest during the year, and opened a new long-term loan for $11,290. How much is the ending long-term debt account on the company's balance sheet
Answer:
Shinedown, Corp.
The ending long-term debt account on the company's balance sheet is:
= $45,365.
Explanation:
a) Data and Calculations:
Beginning long-term debt balance = $46,880
Repayment of a long-term loan = (12,805)
New long-term loan opened = 11,290
Ending balance of long-term debt = $45,365
Interest payment during the year = $4,890
b) The long-term debt account does not include the interest payment during the year. If any interest is not paid, the amount will be taken as a current liability and not a long-term debt.
The government sector balance is equal to net taxes ________ government expenditure on goods and services. If that number is ________, a government sector surplus is lent to other sectors; if that number is ________, borrowing from other sectors must finance a government deficit.
Answer:
less
positive
negative
Explanation:
The government sector balance is income from taxes less government spending
Government sector deficit occurs when government spending exceeds income of the government.
When deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing
When there is a surplus, government spending is less than the income of the government. Government is able to lend to other sectors
Read the argument below and determine the underlying principle that was used to come to the conclusion presented: A free college education for every citizen is important because it helps the United States create the best-educated workforce in the world. European countries like Germany are able to provide a free college education to their citizens, and the United States should as well. Which other argument uses the same underlying principle as the argument above?
a. Children should get free dental care, even if they drink a lot of soda which causes cavities.
b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.
c. Every child should get free dental care, even if they can afford to pay for it.
Answer:
1. The underlying principle is
to create the best-educated workforce in the world.
2. The argument that uses the same underlying principle as the argument 1 above is:
b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.
Explanation:
The underlying principle is a general rule which can be applied to different situations. It shows the reason for doing something or embarking on a program. For example, to offer free college education for every U.S. citizen, the underlying principle is to "create the best-educated workforce in the world."
MC Qu. 149 Trago Company manufactures... Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 30% of the next month's sales. It estimates that May's ending inventory will consist of 85,500 units. June and July sales are estimated to be 285,000 and 295,000 units, respectively. Trago assigns variable overhead at a rate of $2.30 per unit of production. Fixed overhead equals $405,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.
Answer:
$1067400
Explanation:
The computation of the number of units and factory overhead is given below:
units to be produced in june is
= ending inventory + sales - beginning inventory
= (30% of 295000) + 285000 - 85500
= 288000 Units
Now
Overheads budgeted for june
= variable overheads + fixed overheads
= (288000 × 2.3) + 405000
= 662400+405000
= $1067400
Your father offers you a choice of $120,000 in 11 years or $48,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 11 percent, what is the present value of the $120,000
Answer:
$38,074
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 to 10 = 0
Cash flow in year 11 = $120,000
I = 11
PV = 38,074
To determine PV using a financial calculator take the following steps:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Given the choice, i would choose $48,500 today.
Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.9%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Woodburn Bank also offers to lend you the $50,000, but it will charge an annual rate of 9.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern?
a. 1.68%
b. 1.98%
c. 2.08%
d. 1.78%
e. 1.88%
Answer:
e. 1.88%
Explanation:
EAR = (1+APR/m)^m. M means compounding periods
For Southwestern Bank
EAR = (1 + 0.069/12)^12 - 1
EAR = 1.00575^12 - 1
EAR = 1.0712245 - 1
EAR = 0.0712245
EAR = 7.12%
So, the difference between the effective annual rate charged by Woodburn versus the rate charged by Southwestern is 1.88% (9% - 7.12%)
Cara has just come in for her morning shift , but the sales floor is a mess . Looks like the night crew didn't clean up . She groans , but then gets to work cleaning the displays before customers come . If she doesn't , who else will ? What good problem - solving skills is she exhibiting? a ) Seeking advice when necessary Ob ) Open to seeing new perspectives c ) Having a solutions - oriented attitude
Answer:
having a solutions-oriented attitude
Explanation:
she seen things wasn't done so she starts cleaning because she takes pride in her job
You plan to save $6,500 per year for the next 8 years. After the last deposit, you will keep the money in the account for 6 more years. The account will earn an interest rate of 6.8 percent. How much will there be in the account 14 years from today
Answer:
$98,254.57
Explanation:
Value after 8 years
Future Value of Annuity = P * ((1 + r)^n - 1 ) / r
Future Value of Annuity = 6500 * ((1 + 6.8%)^8 - 1) / (6.8%)
Future Value of Annuity = 6500 * [(1.69266113113-1) / 0.068]
Future Value of Annuity = 6500 * 10.18619
Future Value of Annuity = $66,210.24
Value after 14 years
FV = PV * (1 + r )^n
FV = 66210.26*(1+ 6.8%)^6
FV = 66210.26 * 1.483978
FV = $98,254.57
So, the amount that will be there in the account 14 years from today is $98,254.57.
eBook
Show Me How
Units
1
Cost Flow Methods
The following three identical units of Item LO3V are purchased during April:
Item Beta
Cost
April 2
Purchase
$270
April 15
Purchase
272
April 20
Purchase
Total
$816
Average cost per unit
($816 + 3 units)
Assume that one unit is sold on April 27 for $345. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b)
last-in, first-out (LIFO); and (c) weighted average cost method.
1
1
274
3
$272
Gross Profit
Ending Inventory
a. First-In, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Answer:
Cost Flow Methods
Gross profit and ending inventory on April 30 using:
Gross Profit Ending Inventory
(a) first-in, first-out (FIFO) $75 $546
(b) last-in, first-out (LIFO) $71 $542
(c) weighted average cost method $73 $544
Explanation:
a) Data and Calculations:
Item Beta Cost
April 2 Purchase $270
April 15 Purchase 272
April 20 Purchase 274
Total $816
Average cost per unit = $272 ($816/ 3 units)
Assume that one unit is sold on April 27 for $345
Gross profit and ending inventory on April 30 using:
Gross Profit Ending Inventory
(a) first-in, first-out (FIFO) $75 ($345 - $270) $546 ($816 - $270)
(b) last-in, first-out (LIFO) $71 ($345 - $274) $542 ($816 - $274)
(c) weighted average cost method $73 ($345 - $272) $544 ($816 - $272)
Ending inventory = Cost of goods available for sale Minus Cost of goods sold
Gross profit = Sales Minus Cost of goods sold
Steve King and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to King of $128,250. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to King and Stevens, 1:2. King and Stevens had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $225,000. How much is distributed to King and Stevens
Answer:
King and Stevens Partnership
King Stevens Total
Distributions $162,110 $62,890 $225,000
Explanation:
a) Data and Calculations:
Annual salary allowance to King = $128,250
Interest rate on capital = 7%
Income sharing ratio = 1:2 King and Stevens
Net income for the year = $225,000
Capital balances = $75,000 King and $81,000 Stevens
King Stevens Total
Capital $75,000 $81,000 $156,000
Net income $225,000
Annual salary 128,250 0 (128,250)
Interest on capital 5,250 5,670 (10,920)
Share of profits 28,610 57,220 (85,830)
Capital, ending $237,110 $143,890 $381,000
Distributions $162,110 $62,890 $225,000
Watermelon, Inc. provides the following data: 20X9 20X8 Cash $41,000 $25,000 Accounts Receivable, Net 102,000 62,000 Merchandise Inventory 72,000 50,000 Property, Plant, and Equipment, Net 181,000 120,000 Total Assets $396,000 $257,000 Additional information for the year ending December 31, 20X9: Net Credit Sales $550,000 Cost of Goods Sold 150,000 Interest Expense 25,000 Net Income 181,000 Calculate the rate of return on total assets for 20X9.
Answer:
the rate of return on total assets is 63.09%
Explanation:
The calculation of the rate of return on total assets is shown below:
Return on total Asset is
= {(Net Income + Interest Expense) ÷ Average Total assets} × 100
= {($181,000 + $25,000) ÷ ($396,000 + $257,000) ÷ 2} × 100
= $206,000 ÷ $326,500 × 100
= 63.09%
Hence, the rate of return on total assets is 63.09%
MC Qu. 133 Cahuilla Corporation predicts... Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units380 420 440 380 Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 152 units. A finished unit requires 5 pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 230 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:
Answer:
$4,280
Explanation:
Calculation to determine what The budgeted purchases of pounds of direct material B during May should be:
For the month of APRIL
Units required to be produced in April = Units required to be sold April - Opening Inventory 40% of Sales of May
Units required to be produced in April= 380 - 152 + (420 * 40%)
Units required to be produced in April=380-152+168
Units required to be produced in April= 336 units
Total units of raw material to be purchased =336 *5 pounds
Total units of raw material to be purchased= 1,680 pounds
Now for the month of MAY
First step is to calculate May Units required to be produced in May using this formula
Using this formula
Units required to be produced in May = Sales for the month - Opening Inventory + % of Sales of June
Let plug in the formula
Units required to be produced in May= 420 -(420 * 40%) + (440 * 40%)
Units required to be produced in May= 420 -168+176
Units required to be produced in May= 428
Second step is to calculate the Total units of raw material to be purchased
Total units of raw material to be purchased = 428*5 pounds
Total units of raw material to be purchased = 2,140 pounds
Now let determine the budgeted purchases of pounds of direct material B
Purchase cost for the month = $2,140 * $2.00 per pound.
Purchase cost for the month= $4,280
Therefore The budgeted purchases of pounds of direct material B during May should be:$4,280
Indentify two causes, a part from a increase in income, of an increase in demand for a product
Answer:
Rise in price of subsitute product.
Fall in price of complementory product.
Increase in number of consumers.
why multinational company are developed
Answer:
Multinationals provide an inflow of capital into the developing country.
Explanation:
This capital investment helps the economy develop and increase its productive capacity.
A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $5.50 per unit to manufacture. The units can be sold as is for $3.10 each, or they can be reworked for $4.70 each and then sold for the full price of $8.60 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $5.50 each, and sell them at the full price of $8.60 each. What is the incremental income from selling the units as scrap and reworking and selling the units
Answer:
Selling as is ⇒ $40,300Reworking and then selling ⇒ $50,700Explanation:
Incremental income from selling the scrap as is:
= 13,000 units * 3.10
= $40,300
Incremental cost from reworking and then selling:
= Sale of reworked units - Cost of reworking units
= (8.60 * 13,000) - (4.70 * 13,000)
= 111,800 - 61,100
= $50,700
In addition to the date of recordation, what other factor is used to determine lien priority?
Answer:
Two factors primarily determine lien priority. Firstly the lien's categorization as superior or junior, and secondly the date the lien was recorded.
Explanation:
An encumbrance is most broadly defined as
another's right to use a property without the permission of the property owner.
another's right to claim the sale proceeds of a property that has been used as collateral for a loan.
another's interest in a real property that limits the interests of the freehold property owner.
another's right to control how the freehold owner of a real property uses the property.
In addition to the date of recordation, lien's categorization is other factor used to determine lien priority.
What is lien priority?Lien priority helps to know the order in which creditors get paid following a foreclosure.
Date of recordation is one of the factor yo consider because those on the earlier dates are attended to first.
Therefore, lien priority is so base on categorization because Superiors are been attended to first.
Learn more about lien priority at;
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At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $896,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $448 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Answer:
Explanation:
Dec 31:
Debit Bad debts expense = 0.003 × $896000 = $2688
Credit Allowance for doubtful accounts = $2688
February 1:
Debit Allowance for doubtful accounts $448
Credit Accounts receivable—P. Park $448
June 5:
Debit Accounts receivable—P. Park $448
Credit Allowance for doubtful accounts $448
June 5:
Debit Cash $448
Credit Accounts receivable—P. Park $448
