Answer:
be professor Goodheart's but could not be Professor Stern's.
Explanation:
The indifference curve has a slope zero when marginal rate of substitution is zero. The marginal rate of substitution for Nancy is zero when she scores 30 in her first midterm. She scores 50 in her second midterm. The Professor Goodheart's count best midterm grades so Nancy grades must belong to Professor Goodheart.
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,100 + $2.00q Utilities $5,100 + $0.50q Supplies $1,300 + $0.40q Equipment depreciation $18,100 + $2.50q Factory rent $8,500 Property taxes $2,700 Factory administration $13,300 + $0.60q The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 66,780 Indirect labor $ 11,680 Utilities $ 7,590 Supplies $ 3,190 Equipment depreciation $ 28,100 Factory rent $ 8,900 Property taxes $ 2,700 Factory administration $ 15,050 Required: 1. Prepare the Production Department’s planning budget for the month. 2. Prepare the Production Department’s flexible budget for the month. 3. Calculate the spending variances for all expense items.
Answer:
Packaging Solutions Corporation
1. Planning Budget
Direct labor $68,460
Indirect labor $12,500
Utilities $7,200
Supplies $2,980
Equipment depreciation $28,600
Factory rent $8,500
Property taxes $2,700
Factory administration $15,820
2. Flexible Budget
Direct labor $65,200
Indirect labor $12,100
Utilities $7,100
Supplies $2,900
Equipment depreciation $28,100
Factory rent $8,500
Property taxes $2,700
Factory administration $15,700
3. Spending Variances:
Flexible Actual Spending
Budget Budget Variance
Direct labor $65,200 $66,780 $1,580 U
Indirect labor $12,100 $11,680 $420 F
Utilities $7,100 $7,590 $490 U
Supplies $2,900 $3,190 $290 U
Equipment depreciation $28,100 $28,100 $0 None
Factory rent $8,500 $8,500 $0 None
Property taxes $2,700 $2,700 $0 None
Factory administration $15,700 $15,050 $650 F
Explanation:
a) Data and Calculations:
Planned labor-hours in March = 4,200
Actual labor-hours in March = 4,000
Cost Formulas
Direct labor $16.30q
Indirect labor $4,100 + $2.00q
Utilities $5,100 + $0.50q
Supplies $1,300 + $0.40q
Equipment depreciation $18,100 + $2.50q
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60q
Actual Cost Incurred In March:
Direct labor $ 66,780
Indirect labor $ 11,680
Utilities $ 7,590
Supplies $ 3,190
Equipment depreciation $ 28,100
Factory rent $ 8,900
Property taxes $ 2,700
Factory administration $ 15,050
Flexible Budget:
Direct labor $16.30 * 4,000 = $65,200
Indirect labor $4,100 + $2.00 * 4,000 = $12,100
Utilities $5,100 + $0.50 * 4,000 = $7,100
Supplies $1,300 + $0.40 * 4,000 = $2,900
Equipment depreciation $18,100 + $2.50 * 4,000 = $28,100
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60 * 4,000 = $15,700
Planning Budget
Direct labor $16.30 * 4,200 = $68,460
Indirect labor $4,100 + $2.00 * 4,200 = $12,500
Utilities $5,100 + $0.50 * 4,200 $7,200
Supplies $1,300 + $0.40 * 4,200 $2,980
Equipment depreciation $18,100 + $2.50 * 4,200 = $28,600
Factory rent $8,500
Property taxes $2,700
Factory administration $13,300 + $0.60 * 4,200 = $15,820
Elmer’s utility function is U(x, y) = min{x, y2}. If the price of x is $25 and the price of y is $15 and if Elmer chooses to consume 7 units of y, what must his income be? a.
Answer:
the income is $1,330
Explanation:
The computation of the income is shown below;
Given that
U(x, y) = min{x, y2}
Price of x is $25
ANd, the prcie of Y is $15
So,
25X + 15Y = M
if Y = 7,
So,
At eqm, X = Y^2 = 49
Then ,
M = 25 × 49 + 15 × 7
= 1225 + 105
= 1330
Hence, the income is $1,330
The same should be relevant and considered too
Which theory would most likely explain why a commercial bank, which usually focuses on short-term securities, would switch to long-term securities due to a change in interest rates. pure expectation liquidity premium segmented market preferred habitat
Answer:
preferred habitat
Explanation:
According to the preferred habitat theory, if the expected returns from investment of a particular investment maturity is large enough, investors would shift from their preferred maturities.
In this question, there is a shift from the preferred maturity (short-term securities) to a long-term securities when interest rate changes
The pure expectations theory assumes that bonds of any maturity are perfect substitutes for each other. For example, if an investor buys a 10 year bond and holds it for 1 year, the return is the same as buying a 1 year bond. The theory also assumes that risk premium does not exist and a security only earns its risk free rate
Liquidity premium theory states that risk premium increases with the maturity of a bond. The theory predicts that the yield curve is upward sloping due to liquidity premium
According to the segmented market theory, each bond maturity segment can be thought of as a segment market in which yield are a function of the demand and supply for funds in that maturity.
2) Excellent Mugs Inc. produced 1,600,000 units in 2017 at a units of output per dollar of input cost was $0.09. Its cost of input at 2017 prices that would have been used in 2016 was $20,000,000. How much did the total factor productivity (TFP) increase as a result of 2017 operations
Answer:
the total factor productivity (TFP) increase as a result of 2017 operations is 12.5%
Explanation:
The computation of the total factor productivity (TFP) increase as a result of 2017 operations is given below;
The Unit produced in 2016 is
= $20,000,000 x $0.09
= 1,800,000
Now
Total factor productivity increase for the year 2017 is
= (1,800,000 - 1,600,000) ÷ 1,600,000
= 12.5%
Hence, the total factor productivity (TFP) increase as a result of 2017 operations is 12.5%
______ consists of the activities that managers perform to plan for, attract, develop, and retain an effective workforce.
a) Arbitration
b) Formal appraisal
c) Human capital
d) Orientation
e) Human resource management
2. Compare the performance of East Coast Yachts to the industry as a whole. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How would you interpret this ratio
Answer: hello your question has some missing data attached below is the missing data
answer :
i) The current ratio is higher than lower quartile and this signifies good liquidity position
The Quick ratio is higher than the lower quartile and also higher than the median but it is lower than the upper quartile and this signifies that the value of inventory is been deducted from the current assets. to show solvency position.
ii) Inventory Turnover Ratio is higher when compared to the industry ratios
Explanation:
i) Based on each ratio
The current ratio is higher than lower quartile and this signifies good liquidity position for east coast yachts but the value of the lower quartile been lower than the median and upper quartile represents a position of lower solvency
The Quick ratio is higher than the lower quartile and also higher than the median but it is lower than the upper quartile and this signifies that the value of inventory is been deducted from the current assets to show solvency position of the company.
ii) The ratio can be interpreted as
Inventory Turnover Ratio is higher when compared to the industry ratios i.e. Inventory is been turned into cash by maximum times/as many times as possible per year.
A machine operates with the following production cycle: 34 minutes of setup, 70 minutes of production. While in production, the machine produces 3 parts per minute. What is the capacity of the machine in parts per minute
Answer:
The capacity of the machine is 3 parts per minunte
Explanation:
First calculate the total time
Total time = Setup time + Production time
Total time = 34 minutes + 70 minutes
Total time = 104 minutes
Calculate the total units
Total Units = Production per minute x Total Time
Total Units = 3 parts per minutes x 104 minutes
Total Units = 312 parts
Now calculate the parts per minute
Parts per minute = Total Units / Total Time
Parts per minute = 312 parts / 104 minutes
Parts per minute = 3 parts per minunte
A deposit of $90 is placed into a college fund at the beginning of every week for 5 years. The fund earns 3% annual interest, compounded weekly, and paid at the end of the week. How much is in the account right after the last deposit
Answer:
$25,249.50
Explanation:
Deposit at the beginning of every 6 month (A) = 90
Time period (t) = 5
n = 52
Rate (r) = 3% = 0.03
So, the net amount in the account right after the last deposit is as follows:
= A * [(1+r/n)^(n*t) - 1 / r/n] * (1 + r/n)
= 90 * [(1+0.03/52)^(52*5) - 1 / 0.03/52] * (1 + 0.03/52)
= 90 * [(1.16178399147 - 1 / 0.000577] * (1+0.000577)
= 90 * 280.3882 * 1.000577
= 25249.498559226
= $25,249.50
Answer:
Explanation:
The value of the initial deposit is $90, so a1=90. A total of 260 weekly deposits are made in the 5 years, so n=260. To find r, divide the annual interest rate by 52 to find the weekly interest rate and add 1 to represent the new weekly deposit.
r=1+0.0352=1.00057692308
Substitute a1=90, n=260, and r=1.00057692308 into the formula for the sum of the first n terms of a geometric series and simplify to find the value of the annuity.
S260= 90(1−1.00057692308260) / 1−1.00057692308 ≈25238.31
Therefore, to the nearest dollar, the account has $25,238 after the last deposit is made.
This is the correct answer for Knewton. That's the explanation.
Which element of a command economy is also used in a mixed economy
Answer:
Governments can regulate businesses
Explanation:
I hope that this helped :)
Answer:
Prices also are dictated by supply and demand rather than by the government, as in the command economy. The profitability of producer and innovation are also key elements of the mixed economic system.
Explanation:
Shawnee Hospital installs a new parking lot. The paving cost $30,000 and the lights to illuminate the new parking area cost $15,000. Which of the following statements is true with respect to these additions?
a. $30,000 should be debited to the Land account.
b. $15,000 should be debited to Land Improvements.
c. $45,000 should be debited to the Land account.
d. $45,000 should be debited to Land Improvements.
Answer: d. $45,000 should be debited to Land Improvements.
Explanation:
Land improvements records any moderation to land asset that is expected to add to its value and lasts for more than a year.
The paving and lighting of the parking area will add value to the area and will last longer than a year so both should go to the Land improvement account. As this account is an asset account, it will be debited when increased:
= 30,000 + 15,000
= $45,000
An entrepreneur founded his company using $250,000 of his own money, issuing himself 200,000 shares of stock. An angel investor bought an additional 100,000 shares for $200,000. The entrepreneur now sells another 400,000 shares of stock to a venture capitalist for$2 million. What is the post-money valuation of the company?
Answer:
$3,500,000
Explanation:
the total number of shares
= 200000 + 100000 + 400000
= 700000 shares
value of 400000 shares = 2 million dollars
such that 1 share = 2 million/400000
= 5
total value of the shares = 5 * 700000
= $3,500,000
therefore we conclude that the post money valuation of this company is $3,500,000
Use your knowledge of group performance factors to complete the following sentences
The forces that create__________ are attraction to the group, resistance to leaving the group, and motivation to remain a member of the group. Your group members _________ have dressed more professionally for the client presentation. What group performance factor is this an example of?
Answer:
1. Group Cohesiveness
2. Representative
3. Norms
Explanation:
1. The forces that create GROUP COHESIVENESS are an attraction to the group, resistance to leaving the group, and motivation to remain a member of the group.
Group Cohesiveness is a term that defines the level at which group members strive to ensure the group stays together and remains successful.
2. Your group members REPRESENTATIVES have dressed more professionally for the client presentation.
3. The type of group performance factor that this is an example of is "Norm"
Group Norm is a form of rules or guidelines in which a group follows to maintain the group members' actions or behaviors.
Simone founded her company using of her own money, issuing herself shares of stock. An angel investor bought an additional shares for . She now sells another shares of stock to a venture capitalist for million. What is the post-money valuation of the company
Answer:
C) $2,400,000
Explanation:
Here is the complete question
Simone founded her company using $200,000 of her own money, issuing herself 200,000 shares of stock. An angel investor bought an additional 100,000 shares for $150,000. She now sells another 500,000 shares of stock to a venture capitalist for $1.5 million. What is the post-money valuation of the company?
A) $1,200,000
B) $1,320,000
C) $2,400,000
D) $3,600,000
company's value = value per share x total shares
Value per share = total purchasing price / total shares sold
$1.5 million / 500,0000 = $3
Total shares = 500,000 + 200,000 + 100,000 = 800,000
company's value = 800,000 x $3 = $2,400,000
In order to present an accurate picture of the financial health of his company, Bob reported all of the expenses that had been incurred, even if they had not been paid yet. Bob is practicing the __________ principle.
a.) matching
b.) measurement/cost
c.) time period
d.) full disclosure
Answer:
a.) matching
Explanation:
Matching principle is the accounting principle in which the expenses incurred should be recorded at the same period when the revenues are earned. Also the business incurred the expenses in order to earn the revenues
So as per the given situation since Bob recognized the expenses but it is not paid so here he is using the matching principle
Therefore the option a is correct
A consumer has $180 in monthly income to spend on two goods, D and G, where D is on the y-axis. The price of good D, PD is $6, and the marginal rate of transformation is -2. How many units of good G can be purchased if all income is used to purchase good G
Answer:
The number of units of good G that can be purchased if all income is used to purchase good G is 15 units.
Explanation:
Since D is on the y-axis, indicating G is on the x-axis, the formula for calculating the marginal rate of transformation (MRT) is given as follows:
MRT = - PG / PD …………………. (1)
Where:
MRT = Marginal rate of transformation = -2
PG = Price of good G = ?
PD = Price of good D = $6
Substituting the relevant values into equation (1) and solve for PG, we have:
-2 = - PG / $6
PG = -2 * (-6) = $12
Therefore, we have:
Number units of good G if all income is spent on it = Monthly income / PG = $180 / $12 = 15
Therefore, the number of units of good G that can be purchased if all income is used to purchase good G is 15 units.
Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2014. During 2014, Harbor had revenues of $2,500,000 and expenses of $2,000,000. The amortization of excess cost allocations totaled $60,000 in 2014. What is the effect of including Harbor in consolidated net income for 2014
Answer:
$440,000
Explanation:
Calculation to determine the effect of including Harbor in consolidated net income for 2014
Using this formula
Effect of including Harbor in consolidated net income for 2014=Revenues-Expenses-Excess cost allocations
Let plug in the formula
Effect of including Harbor in consolidated net income for 2014=$2,500,000-$2,000,000-$60,000
Effect of including Harbor in consolidated net income for 2014=$440,000
Therefore Effect of including Harbor in consolidated net income for 2014 will be $440,000
On January 1, 2021, Baltimore Company issued $200,000 face value, 5%, 10-year bonds at 103. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the annual bond premium amortization. Round your answer to the nearest whole number (no cents).
Answer:
the dollar value of the annual bond premium amortization is $600
Explanation:
The computation of the dollar value of the annual bond premium amortization is shown below:
Interest paid ($200,000 × 5%) $10,000
Less: premium amortization ($200,000 × 0.03) ÷ 10) -$600
Dollar value of the interest expense $9,400
So, the dollar value of the annual bond premium amortization is $600
Annual bond premium amortized using straight-Line Method is $600.
What is straight-Line Method of Amortization of Bond?In the straight-Line Method, the bond premium or discount is charged/disbursed equally over the life of the bonds.
Given:
Face value of 5% bonds= $200,000
Maturity period= 10 years
Issue price of 5% bonds=103
Value of the annual bond premium amortization=
Interest paid=5% of $200,000=$10,000
Premium amortized= ($200,000 × 0.03) ÷ 10=$600
Interest expense=Interest paid-premium amortization
=$10,000-$600
=$9,400
Therefore, the annual bond premium amortization is $600
Learn more about straight-Line Method of Amortization of Bond here:
https://brainly.com/question/14433818
You sell one December futures contracts when the futures price is $1,010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price falls to $1,008 per unit. What is the balance of your margin account at the end of the day? a. $3,700b. $1,800c. $2,200d. $1,500
Answer:
b. $1800
Explanation:
Calculation to determine the balance of your margin account at the end of the day
Margin account balance=$2,000-[100*($1008-$1010)]
Margin account balance=$2,000-(100*$2)
Margin account balance=$2,000-$200
Margin account balance=$1,800
Therefore the balance of your margin account at the end of the day is $1,800
Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $49,000. The machine has an estimated life of five years and an estimated salvage value of $6,600. Required: Calculate the depreciation expense for each year of the asset's life using: Straight-line depreciation. Double-declining-balance depreciation. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method
Answer:. See explanation
Explanation:
1. The depreciation under the straight line method will be calculated as:
= ( cost - salvage value)/no of years
= (49000 - 6600)/5
= $42400/5
= $8480 per year
2. Using the Double-declining-balance depreciation, the depreciation will be calculated thus:
Double declining rate = 8480/42400 × 2 = 40%
Yr 1: beginning book value = $49000
Depreciation rate = 40%
Depreciation = $49000 × 0.4 = $19600
Ending book value = $29400
Yr 2: beginning book value = $29400
Depreciation rate = 40%
Depreciation = $29400 × 0.4 = $11760
Ending book value = $17640
Yr3: beginning book value = $17640
Depreciation rate = 40%
Depreciation = $17640 × 0.4 = $7056
Ending book value = $10584
Yr4: beginning book value = $10584
Depreciation rate = 40%
Depreciation = $3884 Savage value
Ending book value = $6700
what are the similarities and differences between clv and customer equality these two measures? discuss the strengths and weaknesses of these approaches for measuring customer value. of
Answer:
Customer equity is the sum of all of our CLV's
Explanation:
CLV or customer lifetime value represents the profit that our customers give the company during their commercial relationship with us, while the customer equity is the sum of all of our CLV's, meaning that one is a macro and the other one is a micro reality, both are a statistics that can give us better information for decision making when we are targeting and creating products.
Problem 14-8 (Static) Bonds; effective interest; partial period interest; financial statement effects [LO14-2] The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 5% bonds with a face amount of $500,000 on November 1, 2021. The bonds sold for $442,215, a price to yield the market rate of 6%. The bonds mature October 31, 2041 (20 years). Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method. Required: 1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2021
Answer:
Lake Hamilton Development (LHD)
The amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2021 is:
= $4,422.
Explanation:
a) Data and Calculations:
November 1, 2021
Face value of bonds issued = $500,000
Bonds issue price = 442,215
Discounts on bonds = $57,785
Maturity period = 20 years on October 31, 2041
Interest rate on the bonds = 5% paid semiannually
Interest payment dates = April 30 and October 31
Effective interest rate = 6%
For the two months of 2021:
Interest Payable = $4,167 ($500,000 * 5% * 2/12)
Discount amortization $255 ($4,422 - $4,167)
Interest Expense = $4,422 ($442,215 * 6% * 2/12)
Throughout the year an auto parts warehouse places several orders for a high-volume automobile air filter. The demand for this air filter is very stable (flat) and the lead time from the supplier is very reliable (no variation), consequently the warehouse holds virtually no safety stock for this item. When placing orders for this air filter the warehouse uses an order quantity of 170 units and pays an annual holding cost of $2.00 per unit per year.
How much will the warehouse pay in total annual holding costs for this air filter? (Display your answer to the nearest whole number.)
Answer: $170
Explanation:
The amount that the warehouse will pay in total annual holding costs for this air filter will be calculated thus:
Order quantity(Q) = 170 units
Holding cost(H) = $2.00 per unit per year
Total annual holding cost will be:
= (Order quantity/2) × Holding cost
= (170/2) × 2.00
= 85 × 2.00
= $170
The annual holding cost is $170
An outside supplier offers to provide Epsilon with all the units it needs at $63.05 per unit. If Epsilon buys from the supplier, the company will still incur 35% of its overhead. Epsilon should choose to:
Answer:
Make since the relevant cost to make it is $59.05
Explanation:
Calculation to determine what Epsilon should choose to:
Relevant costs to make = 8.20 + 24.20 + [41*(100%-35%)]
Relevant costs to make = 8.20 + 24.20 + (41*65%)
Relevant costs to make = 8.20 + 24.20 + 26.65
Relevant costs to make =$59.05
Therefore Epsilon should choose to: MAKE SINCE THE RELEVANT COST TO MAKE IT IS $59.05
7. Liqin fixes up old cars and sells them to supplement his retirement income. Liqin came across a beat-up 1955 Corvette that she is considering rebuilding and selling. She estimates a 0.2 probability that she will gain 15% on the deal, a 0.2 probability that she will gain 10%, and a 0.6 probability that she will gain 5%. Liqin's expected return for fixing up and selling the Corvette is ____%. a. 8 b. 11 c. 20 d. 30
Answer:
a. 8%
Explanation:
Expected Return = [(Return*Probability)+(Return*Probability)+(Return*Probability) * 100%]
Expected Return = [{(15%*0.2)+(10%*0.2)+(5%*0.6)} * 100]%
Expected Return = [{(0.15*0.2)+(0.1*0.2)+(0.05*0.6)} * 100]%
Expected Return = [{0.03+0.02+0.03} * 100]%
Expected Return = [{0.08 * 100}]%
Expected Return = 8%
So, Liqin's expected return for fixing up and selling the Corvette is 8%.
Suppose that XTel currently is selling at $30 per share. You buy 800 shares using $18,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.
a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $33; (b) $30; (c) $27? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
b. If the maintenance margin is 25%, how low can XTel’s price fall before you get a margin call? (Round your answer to 2 decimal places.)
c. How would your answer to requirement 2 would change if you had financed the initial purchase with only $12,000 of your own money? (Round your answer to 2 decimal places.)
d. What is the rate of return on your margined position (assuming again that you invest $18,000 of your own money) if XTel is selling after one year at (a) $33; (b) $30; (c) $27? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
e. Continue to assume that a year has passed. How low can XTel’s price fall before you get a margin call?
The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm is given here:
Answer:
The answer is "$4.311".
Explanation:
Calculating the EPS after the merger:
[tex]\text{Stultz Corp Post Merger Earnings} = 220,000 + 1,000,000 \\\\[/tex]
[tex]= \$1,220,000[/tex]
[tex]\to \text{Number of Shares Post Merger:} \\\\=\frac{99,000}{3} + 250,000\\\\ = 283,000\\\\\text{EPS Post Merger} =\frac{\text{Stultz Corp Post Merger Earnings}}{\text{Number of Shares Post Merger}} \\\\[/tex]
[tex]= \frac{1,220,000}{283,000} \\\\= \$4.311[/tex]
incurred $10,000 of portfolio income. Its corporate trustee paid fiduciary fees of $1,000 therefrom, and also paid $1,000 in premiums for a life insurance policy on Marcia, the grantor of the trust. How much gross income does Marcia include with respect to these trust activities
Answer:
$1000
Explanation:
Portfolio income = $10,000
Fiduciary fees = $1,000
premiums paid for life insurance on Marcia = $1000
Fiduciary fees are fees charged by trustees and executors for services that they rendered
Therefore The amount of gross income Marcia will include being the grantor of the trust = $1000 ( 10% of portfolio income )
Determine the promotional price of each item at each store. Item Original Price Discount (Dollars) $15.00 Off 40% Off (Dollars) (Dollars) A music box$75 $ $ A faux Ming vase$60.00 $ $ Suppose a friend of yours wants to buy a crystal candlestick. You remember seeing this item at both Annie's Attic and Betty's Breakables, but you do not remember the price. What advice should you give your friend in this situation
Answer:
Go to Betty breakables when the price of the crystal candle is > $37.5
Explanation:
Annie's attic offers $15 off any purchase
Betty breakables offers 40% off any purchase
For both stores
Music box = $75 ( non discounted price )
Faux Ming vase = $60 ( non discounted price )
Discounted prices for Music box
For Annie's attic = 75 - 15 = $60
For Betty breakables = 75 - ( 40% * 75 ) = $45
Discounted prices for Faux Ming vase
For Annie attic = 60 - 15 = $45
For Betty breakables = 60 - ( 40% *60 ) = $36
lets assume the price of the Crystal candle to be x
we will buy from betty breakables If 40% of x > $15 discount offered by Annie's
40/ 100 * x > 15
x > 100/40 * 15
x > 37.5
Go to Betty breakables when the price of the crystal candle is > $37.5
The type of income statement that reports a series of subtotals such as gross profit, operating income, and income before taxes is a ______ income statement.
A. multiple-step
B. classified
C. single-step
D. current
Answer:
A. multiple-step
Explanation:
The Multiple-Step Income statement is used to reports a series of subtotals such as gross profit, operating income, and income before taxes. This allows the users to identify income generated form Primary and Secondary Activity of the Business.
The following budget information is available for the XYZ Company for the first quarter of 2011:
Sales ($16 per unit) $320,000
Freight out $.25 per unit sold
Depreciation on Administrative Equipment $10,000
Sales & Admin. Salaries $40,000 +2% of sales
Advertising $12,000
Depreciation on Manufacturing Equipment $15,000
Lease on Sales Building $45,000
Miscellaneous Selling Expenses $5,000
All operating expenses are paid in cash in the month incurred.
If XYZ expects to sell 20,000 inventory units in the first quarter, what would be the amount of the total budgeted selling and administrative expenses for the first quarter of 2011?
a. $123,400
b. $138,400
c. $113,400
d. $293,400
Answer:
The correct answer of Option A (123400).
The correct answer of Option B (113400).
Explanation:
Budgeted Selling Expenses = Fixed Sales and Administration Salaries +
Variable Sales and Administration Expenses
+ Advertising + Miscellaneous Selling
Expenses + Lease on Sales Building +
Frieght Out + Depreciation on Administrative
Equipment
= 40000 + 2%*20000*16 + 12000 + 5000 +
45000 + 20000*.25 + 10000 = 123400
Option A (123400) is the correct answer.
Part B:
Expected Cash Outflow = Fixed Sales and Administration Salaries +
Variable Sales and Administration Expenses +
Advertising + Miscellaneous Selling Expenses +
Lease on Sales Building + Frieght Out
= 40000 + 2%*20000*16 + 12000 + 5000 +
45000 + 20000*.25 = 113400
Option B (113400) is the correct answer.
