Suppose that the residents of Vegi-Topia spend all of their income on cauliflower, broccoli, and carrots. In 2013, they buy 50 heads of cauliflower for $2 each, 60 bunches of broccoli for $1.5 each, and 200 carrots for $0.10. In 2014, they buy 75 heads of cauliflower for $2 each, 70 bunches of broccoli for $1.50 each, and 500 carrots for $0.20 each. In 2015, they buy 80 heads of cauliflower for $3, 90 bunches of broccoli for $2, and 500 carrots for $0.25 each. If the base year is 2015, what is the inflation for 2014

Answers

Answer 1

Answer:

Inflation for 2014 is 11%

Explanation:

Inflation refers to a quantitative measure of the rate of an increase in the average price level of a selected basket of commodities in an economy over a specified period of time.

The inflation rate for 2014 can be calculated as follows:

Since 2015 is the base year, the it implies that the basket we are going to use contains 80 heads of cauliflower, 90 bunches of broccoli, and 500 carrots.

Therefore, cost of basket for each year can be determined as follows:

2013 cost of basket = ∑(Unit price in 2014 * Quantity in 2015) = ($2 * 80) + ($1.50 * 50) + ($0.10 * 500) = $285

2014 cost of basket = ∑(Unit price in 2014 * Quantity in 2015) = ($2 * 80) + ($1.50 * 50) + ($0.20 * 500) = $335

2015 cost of basket = ∑(Unit price in 2015 * Quantity in 2015) = ($3 * 80) + ($2 * 50) + ($0.25 * 500) = $465

The CPI for each year can be determined using the following for formula:

CPI of a year = Current period cost of basket / Base year cost of basket …………… (1)

As 2015 is the base year, using equation (1), we have:

2013 CPI = (2013 cost of basket / 2015 cost of basket) * 100 = $285 / $465 = 0.61 * 100 = 61

2014 CPI = (2014 cost of basket / 2015 cost of basket) * 100 = $335 / $465 = 0.72 * 100 = 72

2015 CPI = (2015 cost of basket / 2015 cost of basket) * 100 = $465 / $465 = 1 * 100 = 100

The inflation for a year can be determined as follows:

Inflation = (CPI in the current year - CPI in previous year) / CPI in the base year ..................... (2)

Using equation (2), we have:

Inflation for 2014 = (CPI in 2014 - CPI in 2013) / CPI in 2015 = (72 - 61) / 100 = 11 / 100 = 0.11, or 11%


Related Questions

The Hirt & Block mutual fund has assets of $147 million, liabilities of $7 million and 7 million shares outstanding. The shares trade at $21.60 per share. What is the percentage load fee?

Answers

Answer: 8%

Explanation:

The load fee would be the excess percentage amount charged on the share over the Net Asset Value per share.

= [tex]\frac{Trading price per share - Net Asset Value per share}{ Net Asset Value per share}[/tex]

Net Asset value Per share = (Assets - Liabilities) / Number of shares

= (147 - 7) / 7

= $20

Load fee

= [tex]\frac{Trading price per share - Net Asset Value per share}{ Net Asset Value per share}[/tex]

= [tex]\frac{21.60 - 20}{20}[/tex]

= 8%

A production department’s beginning inventory cost includes $478,000 of conversion costs. This department incurs an additional $1,047,500 in conversion costs in the month of March. Equivalent units of production for conversion total 770,000 for March.Required:Calculate the cost per equivalent unit of conversion using the weighted-average method.

Answers

Answer: $1.98

Explanation:

Equivalent Units of Production are used when the manufacturers have not completely finished their products for the year. This helps them express it in terms of fully manufactured units.

Using the weighted average method, the cost per equivalent unit is;

= [tex]\frac{Beginning inventory cost + Cost of current production}{Equivalent units of production}[/tex]

= [tex]\frac{478,000 + 1,047,500}{770,000}[/tex]

= $1.98

Suppose an industry earns a rate of return of 10%, which is twice as high as that of competitive industries, 5%. How much is the price overcharge of that industry, if its capital is valued at half its annual revenue

Answers

Answer:

Let us assume that both the industries are having an investment of $100,000

The profit of the given industry which is having 10% rate of return will be $100,000 * 10% = $10,000

The other industry which is having the Rate of return of 5% will earn a profit of $100,000 * 5% = $5000.

As the capital is just half of the revenue, it signifies that the total revenue will be $200,000 . So the same value of $10,000 will be 5% of the total revenue.  On the other hand, $5,000 would be 2.5% of total revenue.

Thus, the first stated industry will charge 2.5% more than the other industry.

The _________ price is the price at which a dealer is willing to sell a security. A. bid B. ask C. clearing D. settlement

Answers

Answer: B. ask

Explanation:

The ask also known as the offer price is the price at which seller is willing to sell a security after which the buyer must have stated a bid price of how much he or she wants to pay for the security.  The bid price is known to be always lower than the ask price , of which the difference between both prices is called a bid-ask spread.

For example, if an investor wants to buy a security, he or she  will first determine  how much the seller  is willing to sell it for, which is the  ask price--- least price the seller  is willing to sell the security for. However on the other hand, the seller in order to sell his or her security will first determine the highest price at which a buyer would be willing to pay for the  security.

Winnwbagel corp. currently sells 25,200 motor homes per year at 37,800 each, and 10,080 luxury motor coaches per year at $71,400 each. The company wants to introduce a new portable camper to fill out its product line., it hopes to sell 15,960 of these campers per year at $10,080 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 3,780 units per year, and reduce the sales of its motor coaches by 756 units per year. What is the amount to use as the annual sales figure when evaluating this project?
a. $237,293,280.
b. $262,271,520.
c. $357,739,200.
d. $95739200.
e. $160,876,800.
f. $249,782,400.

Answers

Answer:

Option C is correct

Annual sales figure =$ 357,739,200

Explanation:

Annual sales figure for Winnebago corp after the introduction f the new portable campers would be the sum of the annual sales figure for motor homes, luxury homes (after the introduction of new product) and the camper.

Note that the only the impact of the introduction of the new product would be considered on sales  would . The existing sales figures are not not relevant because they are not incremental.

Also,any reduction in sales figure as result of the introduction of a new product would be deducted.

These explanations are incorporated into the analysis below:

Product type         Quantity    Price           Sales figure ($'000)

Motor homes        3780               37,800        142,884  

Luxury homes          756            71,400          (53,978.4)

Camper                   15,969       (10,080 )        160,967.52

Total sales                                                       357,739.20  

Annual sales figure =$ 357,739,200

Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:
Budgeted unit sales 500
Selling price per unit $1,970
Cost per unit $1,460
Variable selling and administrative expenses (per unit) $ 50
Fixed selling and administrative expenses (per year) $196,000
Interest expense for the year $ 13,000
Required:
Prepare the company’s budgeted income statement using an absorption income statement format shown below.
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Sales in Units
April 74,000
May 85,000
June 114,000
July 92,000
The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month’s sales. The inventory at the end of March was 7,400 units.
Required:
Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total.
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Total cash receipts $310,000 $430,000 $360,000 $380,000
Total cash disbursements$365,000 $335,000 $325,000 $345,000
The company’s beginning cash balance for the upcoming fiscal year will be $25,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.
Required:
Complete the company's cash budget for the upcoming fiscal year. (Cash deficiency, repayments, and interest, should be indicated by a minus sign.)
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:
Ending Balances
Cash ?
Accounts receivable $ 8,500
Supplies inventory $ 4,700
Equipment $ 36,000
Accumulated depreciation $ 14,600
Accounts payable $ 2,200
Common stock $ 5,000
Retained earnings ?
The beginning balance of retained earnings was $32,000, net income is budgeted to be $16,300, and dividends are budgeted to be $2,700.


Required:

Prepare the company’s budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Answers

Answer:

Gig Harbor Boating

Budgeted Income Statement using absorption costing format:

Sales Revenue                                                        $985,000

Cost of Boats Sold                                                    730,000

Gross profit                                                            $255,000

Total variable selling and

administrative expenses                     $25,000

Fixed selling and

administrative expenses (per year)    196,000     $221,000

Income before interest and taxes                          $34,000

Interest expense for the year                                    13,000

Pretax Income                                                          $21,000

2. Down Under Products, Ltd. of Australia

Production Budget for the second quarter

                                           April            May          June       Total

Sales in Units                     74,000       85,000      114,000      273,000

Ending Inventory                8,500        11,400        9,200         9,200

Beginning Inventory              740        8,500        11,400            740

Units to be produced       81,760       87,900      111,800     241,460

3. Garden Depot

Summary of Cash Budget for the upcoming fiscal year:

                                 1st Quarter  2nd Quarter  3rd Quarter  4th Quarter

Beginning cash bal.   $25,000        $10,000       $63,800      $98,800

Total cash receipts   $310,000     $430,000    $360,000    $380,000

Total cash available $335,000     $440,000    $423,800    $478,800

Total cash

 disbursements     ($365,000)   ($335,000)  ($325,000)  ($345,000)

Bank loan (repyt)         40,000        (40,000)

Bank loan Interest                              (1,200)

Cash Balance           ($30,000)      $63,800       $98,800     $133,800

Required Minimum    $10,000       $10,000        $10,000       $10,000

4. Mecca Copy

Budgeted Balance Sheet for the coming year:

Budgeted Balance Sheet for the next year:

Ending Balances

Cash                                                          $ 18,200

Accounts receivable                                  $ 8,500

Supplies inventory                                     $ 4,700

Equipment                          $ 36,000

Accumulated depreciation $ 14,600       $ 21,400

Total Assets                                           $ 52,800

Accounts payable                                    $ 2,200

Common stock                                        $ 5,000

Retained earnings                                $ 45,600

Total Liabilities and Equity                 $ 52,800

Explanation:

1. Gig Harbor Boating:

Data and Calculations:

Budgeted unit sales 500

Selling price per unit $1,970

Sales Revenue = $985,000 ($1,970 x 500)

Cost per unit $1,460

Cost of Boats Sold = $730,000 ($1,460 x 500)

Variable selling and administrative expenses (per unit) $ 50

Total variable selling and administrative expenses = $25,000 ($50 x 500 )

Fixed selling and administrative expenses (per year) $196,000

Interest expense for the year $ 13,000

2. Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

a) Data and Calculations:

                                  March       April          May          June       July

Sales in Units              7,400      74,000       85,000      114,000      92,000

Ending Inventory          740        8,500        11,400        9,200

Beginning Inventory                      740         8,500        11,400       9,200

Units to be produced               81,760        87,900      111,800

3. Garden Depot

Data and Calculations:

                                1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Beginning cash bal.   $25,000        $10,000       $63,800      $98,800

Total cash receipts   $310,000     $430,000    $360,000    $380,000

Total cash available $335,000     $440,000    $423,800    $478,800

Total cash

 disbursements     ($365,000)   ($335,000)  ($325,000)  ($345,000)

Bank loan (repyt)         40,000        (40,000)

Bank loan Interest                              (1,200)

Cash Balance           ($30,000)      $63,800       $98,800     $133,800

Required Minimum    $10,000        $10,000       $10,000       $10,000

4. Mecca Copy:

Data and Calculations:

Budgeted Balance Sheet for the next year:

Ending Balances

Cash ?

Accounts receivable $ 8,500

Supplies inventory $ 4,700

Equipment $ 36,000

Accumulated depreciation $ 14,600

Accounts payable $ 2,200

Common stock $ 5,000

Retained earnings ?

Retained Earnings:

Beginning =   $32,000

Net income =   16,300

Dividends =      (2,700)

Ending =       $45,600

Gig Harbor Boating's budgeted income statement gives a snapshot into the future of its revenue, cost of boats sold, gross profit, and pretax income.  Thus, it uses the projections to guide management towards the achievement of its targets.

Similarly, Down Under Products, Ltd. of Australia prepares a production budget for the second quarter to determine how much units it needs to produce to meet sales or customers' demand.

Garden Depot, as a retailer, ascertains its cash needs by preparing budgeted cash flows for the coming year.

Finally, Mecca Copy cannot operate its center without an idea about its financial position for the next year.  Therefore, it prepares a budgeted balance sheet.  All these budgets guide managements of these various entities and prepare them for taking necessary actions to plan and keep their companies afloat.

What are examples of career fields Skills USA prepares students for? Check all that apply.
health science
O education
agriculture
construction
manufacturing
transportation
information technology
public safety

Answers

Answer:

everything except education and agriculture

Explanation:

hope this helps •_•

Answer:

Everything except education and ariculture

Explanation:

edu 2021

Open space arrangements in workstations increase communication and potentially decrease noise, distractions, and loss of privacy.
a. true
b. false

Answers

Answer:

false

Explanation:

while open space arrangement increases communication, it also increases noise, distractions, and loss of privacy.

Answer:

b. False

Explanation:

Although open space arrangement in a workstation increases communication , yet such communication would eventually lead to an increase noise, distractions and loss of privacy. This is the reason why modern organizations preferred the use of cubicle in demarcating spaces allocated to their employees.

The advantage of using cubicle as demarcation is that there will be less noise and distractions hence leads to increase in productivity . An employee would also have his or her privacy unlike an open space arrangement.

Stock Investment Transactions On September 12, 2,000 shares of Aspen Company were acquired at a price of $50 per share plus a $200 brokerage commission. On October 15, a $0.50-per-share dividend was received on the Aspen stock. On November 10, 1,200 shares of the Aspen stock were sold for $42 per share less a $150 brokerage commission. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Journalize the entries to record the original purchase, the dividend, and the sale under the cost method.

Answers

Answer: Please see answer in explanation column

Explanation:

1. Journal to record original purchase.

Date               Account                             Debit                  Credit

Sept 12     Investment- Aspen stock    $100,200.

                     Cash                                                              $100,200.

Calculation

Cash = 2,000 shares  x $50 per share =  100,000 + brokerage commission of $200

= $100,200.

2.Journal to record dividend received

Date               Account                             Debit                  Credit

Oct 15   Cash                                         $1000.

                  Dividend revenue                                             $1000

Calculation

dividend received = $2000 x  $0.50-per-share dividend =$1000

3..Journal to record sale of investment  

Date               Account                             Debit                  Credit

Nov 10   Cash                                        $50,250

             Loss from sale                           $9,870

Investment - Aspen stock                                                   $60,120

Calculation

Purchase price of 1 Share in Aspen stock = 100,200/2000 = 50.10 per share

Investment = share sold x purchase amount of 1 share in Aspen stock  

                   1,200 x 50.10= $60,120

Cash = 1,200 shares  x $42 per share =  100,000 - brokerage commission of $150

= $50,250

Employees in a department are considered a team only when they directly interact and coordinate work activities with each other.

a. True
b. False

Answers

Answer:

True

Explanation:

Team can be defined as way in which group of people or individuals come together in one accord in order to carryout a task or an assignment for the purpose of achieving their aim,goals or objectives, which is why working together as a team either in a company or an organisation is vital and paramount because it help to create unity among employees and to enable the employees to interact and effectively coordinate their work activities with one another which will lead to the growth and success of the organisation or company.

A product selling in France has a price to the channel of EUR 10.00, fixed costs of EUR 33 million, and variable costs of EUR 4.50. How many units does the company have to sell to break even

Answers

Answer:

Break-even point in units= 6,000,000

Explanation:

Giving the following information:

Selling price= $10

Unitary variable cost= $4.5

Fixed costs= 33,000,000

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 33,000,000 / (10 - 4.5)

Break-even point in units= 6,000,000

The business case for why companies should act in a socially responsible manner includes: Select one: a. It generates internal benefits including employee recruiting, workforce retention, training, and improved worker productivity b. It reduces the risk of reputation-damaging incidents c. It is in the best interest of shareholders and offers potential for increased buyer patronage d. All of the above

Answers

Answer:

d. All of the above

Explanation:

All alternatives are correct due to the fact that when a company acts in a socially responsible manner, it achieves several internal and strategic benefits that help in the success of the business.

Currently, organizations are no longer just profitable entities but are also promoters of positive social transformations for the locality in which they operate and for the world.

Being socially responsible includes having benefit programs for stakeholders, which includes improving the perception with which the company is seen, generating a position that attracts shareholders, retains employees, generates greater job satisfaction, which increases productivity and retention of staff.

Generally, corporate governance programs include the review and culture of continuous improvement of organizational processes, which reduces costs, risks and waste, which contributes to the generation of competitive and profitable advantages for the organization.

Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 15.0%. The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE

Answers

Answer:

8.94%

Explanation:

Firstly, we will need to find total equity and total debt of Harrington Inc inorder to apply the Dupont equation for getting ROE

Harrington's total debt = 15.00 % × $250,000

= $37,500

Harrington's total equity will be; applying accounting equation

Asset = Liabilities + Owner's equity

Owner's equity = Assets - Liabilities

= $250,000 - $37,500

= $212,500

Therefore, using the Dupont equation, we can calculate the ROE as;

(NI/Sales) × (Sales/Total assets) × (Total assets/Total common equity)

= 19,000/325,000 × 325,000 /250,000 × 250,000/212,500

= 8.94%

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Per Unit 15,000 Units per Year Direct materials $ 14 $ 210,000 Direct labor 10 150,000 Variable manufacturing overhead 3 45,000 Fixed manufacturing overhead, traceable 6 * 90,000 Fixed manufacturing overhead, allocated 9 135,000 Total cost $ 42 $ 630,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside su'

Answers

Answer:

financial disadvantage = $435,000 - $525,000 = ($90,000)

Explanation:

outside vendor offer: cost per unit $35 x 15,000 = $525,000

production costs:

direct materials $14 x 15,000 = $210,000 direct labor $10 x 15,000 = $150,000 variable manufacturing overhead $3 x 15,000 = $45,000 fixed manufacturing overhead, traceable $6 x 15,000 = $90,000 ($60,000 are non-avoidable) fixed manufacturing overhead, allocated $9 x 15,000 = $135,000 (all are non-avoidable) total cost $42 x 15,000 = $630,000

avoidable production costs = $435,000

financial disadvantage = avoidable costs - cost to purchase carburetors from outside vendor = $435,000 - $525,000 = ($90,000)

A project with an initial cost of $27,250 is expected to generate cash flows of $6,600, $8,700, $9,100, $8,000, and $7,400 over each of the next five years, respectively. What is the project's payback period?

Answers

Answer:

It will take 4 years and 130 days to recover for the initial investment.

Explanation:

Giving the following information:

A project with an initial cost of $27,250 is expected to generate cash flows of $6,600, $8,700, $9,100, $8,000, and $7,400

The payback period is the time required to recover for the initial investment:

Year 1= 6,600 - 27,250= -20,650

Year 2= 8,700 - 20,650= -11,950

Year 3= 9,100 - 11,950= -2,850

Year 4= 8,000 - 2,850= 5,150

To be more accurate:

(2,850/8,000)*365= 130

It will take 4 years and 130 days to recover for the initial investment.

Which phase of the HRIS system development life cycle involves identifying new needs and defining the system's scope

Answers

Answer:

Analysis phase

Explanation:

Human resource information system (HRIS) is a collection of systems and processes that provides an easy way to manage human resources, processes, and data of the organisation.

There are various processes in HRIS life cycle:

- Planning is the long range and short range forecast of resources that are to be used to implement HRIS.

- Analysis is the most important stage where needs to be met are identified.and scope is determined.

- Design is where blueprint is drafted

- Implementation is when tested and released live.

- Maintenance to fix bugs and improve the system

- Needs analysis

- Needs analysis planning

- Observation

- Exploration

- Evaluation

- Prioritisation

- Reporting

Assuming you are a rational investor, the amount you should be willing to pay for a 20-year ordinary annuity that makes payments of $4,000 per year and you require a 6% rate of return per year is closest to:

Answers

Answer:

PV= $45,879.68

Explanation:

Giving the following information:

Cash flow= $4,000 annually

n= 20

i= 6% compunded annually

The maximum that an investor should pay is the present value (PV).

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {4,000*[(1.06^20) - 1]} / 0.06

FV= $147,142.36

Now, we can calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

PV= 147,142.36/(1.06^20)

PV= $45,879.68

In a competitive industry, it takes a fixed ratio of one skilled worker and two unskilled workers to produce a unit of output. If the immigration of unskilled workers lowers the wage of unskilled workers, it will likely

Answers

Answer:

The answer is that the ratio is likely the same.

Explanation:

There is no equivalent of how many unskilled worker can replace a skilled worker. Also, it's a fixed ratio of one skilled worker and two unskilled workers to produce a unit of output. Therefore, even though the wage of unskilled workers decreases because of a surplus in immigration of unskilled workers, and assume that the rest is the same, firms won't hire more unskilled workers.

Espinoza Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system:

Overhead costs:

Wages and salaries 220,000
Other expenses 150,000
Total $510,000

Distribution of resource consumption:


Filling Orders Activity Cost Pools Customer Support Other Total

Wages and salaries 35% 55% 10% 100%
Other expenses 35% 50% 15% 100%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The activity measures for the activity cost pools for the year are as follows:

Activity Cost Pool Activity

Filling orders 3,500 orders
Customer support 15 customers.

What would be the overall activity rate for the filling orders activity cost pool?

Answers

Answer:

Espinoza Company

Activity rate for the filling orders activity cost pool:

Overhead for filling orders divided by number of orders

= $130,500/3,500

= $37.29 per order

Explanation:

a) Data and Calculations:

Overhead costs:

Wages and salaries 220,000

Other expenses 150,000

Total $510,000

Distribution of resource consumption:

Filling Orders Activity Cost Pools

                                    Filling Orders  Customer Support  Other  Total

Wages and salaries             35%                      55%              10%     100%

Other expenses                  35%                       50%              15%     100%

Filling orders 3,500 orders

Customer support 15 customers

Overhead Allocation:

                              Filling Orders  Customer    Other        Total

                                                       Support

Wages and salaries $77,000        $121,000      $22,000     $220,000

Other expenses        53,500           75,000        22,500        150,000

Total                       $130,500       $196,000      $44,500     $370,000

Activity rate for filling orders = $130,500/3,500 = $37.29 per order

ABC or Activity Based Costing technique uses activity pools to accumulate and distribute overhead costs so that costs can be allocated based on the level of activity undertaken for each activity pool.

Espinoza Company: The Activity rate for the filling orders activity cost pool:

The Overhead for filling orders divided by the number of orders is

= $130,500/3,500

= $37.29 per order

Calculation of Cost

a) Data and also Calculations:

Overhead costs:

The Wages and salaries 220,000

Then Other expenses 150,000

The total is $510,000

Then Distribution of resource consumption:

After that Filling Orders Activity Cost Pools

                                   Filling Orders  Customer Support  Other  Total

Wages and salaries            35%                      55%              10%     100%

Other expenses                  35%                      50%              15%     100%

Then Filling orders 3,500 orders

Then the Customer support is 15 customers

Overhead Allocation:

                             Filling Orders   Customer   Other       Total

                                                       Support

Wages and salaries $77,000        $121,000     $22,000     $220,000

Other expenses         53,500           75,000         22,500       150,000

                                                                                                                             

The Total                       $130,500       $196,000     $44,500     $370,000

Activity rate for replenishing orders = $130,500/3,500 = $37.29 per order

ABC or When The Activity Based Costing technique uses activity pools to accumulate and distribute overhead costs so that costs can be allocated based on the level of activity undertaken for each activity pool.

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Which of the following ratios indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?
A. Margin of safety ratio
B. Costs and expenses ratio
C. Profit ratio

Answers

Answer:

The correct answer is the option A: Margin of safety ratio.

Explanation:

To begin with, the name of "Margin of Safety", in the field of business and accounting, is refered to a ratio whose main purpose is to establish the point in where the company knows that it has to sale obligately due to the fact that at that point the company can be sure that they have covered the fixed costs of it and after that point every sale will became a profit for the company. So that is why that this ratio indicates the percentage of each sales dollar that is available to cover those costs.

White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of the year. The company’s earnings’ and dividends’ growth rate are expected to grow at the constant rate of 9.40% into the foreseeable future. If White Lion expects to incur flotation costs of 3.750% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be .

Answers

Answer:

18.84%

Explanation:

the flotation adjusted cost of new common stock = [expected dividend / (net proceeds from stock issuance)] + expected growth rate

expected dividend = $2.03net proceeds from stock issuance = $22.35 x (1 - flotation costs) = $22.35 x 0.9625 = $21.5119expected growth rate = 9.4%

the flotation adjusted cost of new common stock = [$2.03 / $21.5119] + 9.4% = 9.44% + 9.4% = 18.84%

How much of the contract price should Maya allocate to the machine, installation, and training, respectively?

Answers

Answer:

I looked for the missing information and found the following:

total contract price = $920,000

individual prices:

machine = $800,000 installation = $100,000training = $100,000total = $1,000,000

Maya should allocate each performance obligation in the same proportion as if they were sold separately:

machine = ($800,000 / $1,000,000) x $920,000 = $736,000installation = ($100,000 / $1,000,000) x $920,000 = $92,000training = ($100,000 / $1,000,000) x $920,000 = $92,000

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities generally are affected by

Answers

Answer: a. Net income, current assets, and current liabilities

Explanation:

The Operating Cashflow relates to cash transactions that have to do with the normal operations of the business. In other words, the business that the firm does to make revenue. It therefore includes, production, purchases, admin expenses, net income and the assets required to run the business.

Operating cashflows will therefore be affected by the Net Income as this is the end result of the business transactions the business engaged in. The current assets were needed to sell goods as well as being derived from selling goods and the current liabilities enabled the company to buy goods that they sell amongst other things.

Net income, current assets, and current liabilities are directly related to the operations of the business and so affect the Operating cashflows.

"Frank bought a house for $100,000. He put 20% down and borrowed the rest from the bank. However, the value of the house has now increased to $160,000 and he has paid off $20,000 of the bank loan. What is the equity that Frank has in his home

Answers

Answer:

$100,000

Explanation:

The computation of the equity in his home is shown below;

Given that

Increased in the value of the house = $160,000

And, the amount he has to paid is

= Borrowed amount - down payment

= $80,000 - ($100,000 × 20%)

= $80,000 - $20,000

= $60,000

So, the equity is

= $160,000 - $60,000

= $100,000

hence, the equity value is $100,000

Answer:

The equity that Frank has in his home is $100000

Explanation:

The purchase price of house = $100000

The down payment = 20% or $100000 ×20% = $20000

The remaining amount paid by bank = $80000

The increased value of house = $160,000

Payment of loan amount = $20000

The Value of house is $160000 and he pays $20000 to the bank as a part of loan payment so reaming amount that he has to pay the bank is ($80000-20000) = $60000.

Thus, his equity will be $100000.

Debt financing has one important advantage that the early Modigliani and Miller (MM) propositions ignored: the interest on business debt is tax deductible. This benefit means that the amount of taxes that a business is required to
pay will be reduced by a phenomenon called an interest tax shield, which is a function of the amount of debt in the firm's capital structure and its tax rate. In contrast, the dividends that a corporation pays on its common and
preferred shares are not tax deductible.

Consider the case of Green Llama Foodstuffs, Inc.:

At the beginning of the year, Blue Chipmunk Foodstuffs, Inc. had an unlevered value of $8,500,000. It pays federal and state taxes at the marginal rate of 40%, and currently has $2,500,000 in debt capital in its capital structure.

According to MM Proposition I with taxes, Green Llama Foodstuffs is allowed to recognize a tax shield of ___________, and the levered value of the firm is:

a. $7,100,000
b. $12,500,000
c. $9,900,000
d. $4,500,000

Answers

Answer:

c. $9,500,000

Explanation:

Un-levered value = $8,500,000

Tax= 40% = 0.4

Debt capital= $2,500,000

Tax shield = Debt capital * Tax

Tax shield = $2,500,000 * 0.4

Tax shield = $1,000,000

Levered value = Unlevered value + Tax shield

Levered value = $8,500,000 + $1,000,000

Levered value = $9,500,000

What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

Answers

Complete Question:

What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

Group of answer choices.

A. Highway

B. Rail

C. Water

D. Pipeline

E. Air

Answer:

D. Pipeline.

Explanation:

Pipeline transportation can be defined as the long-distance transportation of consumer fluid products such as liquefied natural gases or crude oil, through a system of interconnected pipes.

As a result of the long distance being covered, pipeline transportation mode has very high initial investment costs because it requires excavation of the soil to enable the laying of pipes running into several miles.

However, the advantage of the pipeline transportation mode is that it gives a very low cost per mile for products that are highly specialized and require no packaging.

According to the CAPM, what is the market risk premium given an expected return on a security of 15.8%, a stock beta of 1.1, and a risk-free interest rate of 7%? Multiple Choice 7.70% 6.05% 7.00% 8.00%

Answers

Answer:

The risk premium on market is 8%

Explanation:

The CAPM or Capital Asset Pricing Model is used to calculate the required rate of return on a stock which is the minimum return that is expected or required by the investors to invest in a stock based on its systematic risk as measured by the beta of the stock.

The formula to calculate r under the CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free raterpM is the risk premium on market

To calculate the risk premium on market, we will input the available values for r, rRF and beta in the equation above.

0.158 = 0.07 + 1.1 * rpM

0.158 - 0.07 = 1.1 * rpM

0.088 / 1.1 = rpM

rpM = 0.08 or 8%

So, the risk premium on market is 8%

It is always necessary for an agent to disclose the identity of the principal to any third person with whom he is contracting; otherwise the contract becomes void.

a. True
b. False

Answers

B is your answer have a nice day

Imagine you want to use conflict in a positive way. You decide to create a sense of competition among your team members. Which of these tactics could create competition?]

Answers

Answer:

a. Acknowledge top performers in the company newsletter.

Explanation:

Conflict among group members could be used for improved results by enhancing the dispute in a constructive manner. This can be achieved by recognizing and rewarding the best performers accordingly.

Therefore according to the given situation, for deciding a sense of competition you need to acknowledge the top performance in the newsletter of the company so that the employees gots motivated that results in their coming better job opportunities

Hence,  the correct option is a

Consider a university that purchases replacement chairs for its classrooms. The purchasing manager knows that the annual demand for replacement chairs is 500. The pricing schedule is as follows: Use the following Excel solution to this quantity discount problem with constant carrying cost. Carrying cost = $ 15 Ordering cost = $ 200 Annual Demand = 500
Quantity Price Q Discount Q Total Cost
100 $130 115.47 115.47 $ 66,732.05
200 $122 115.47 200.00 $ 63,000.00
500 $120 115.47 500.00 $ 63,950.00
What is the inventory ordering cost using the economic order quantity?
A. $1,000
B. $866
C. $500
D. $200

Answers

Answer:

b. $866

Explanation:

Annual demand from the question = D = $500

the ordering cost = S = $200

then the cost of carrying H = $15

we have to calculate the economic order quantity

= sqr(2*D*S)/H

= sqr(2 x 500 x 200)/25

= sqr(13333.3333)

this equals 115.469

which is approximately 115.5

next we have to calculate inventory ordering cost

= (D * S)/EOQ

= 200 *500/115.5

= 865.5

When approximated becomes $866

The inventory ordering cost using the economic order quantity is: B. $866.

First step is to calculate the Economic order quantity

Economic order quantity =√(2×D×S)/H

Where:

D=Annual demand=$500

S=Ordering cost=$200

H=Holding cost =$15

Let plug in the formula

Economic order quantity =(2 x 500 x 200)/15

Economic order quantity =√200,000/15

Economic order quantity =√13333.3333

Economic order quantity =115.46

Economic order quantity = 115.5 (Approximately)

Second step is to calculate the inventory ordering cost using this formula

Inventory ordering cost= (Annual demand× Ordering cost )/Economic order quantity  

Let plug in the formula

Inventory ordering cost= (200×500)/115.5

Inventory ordering cost=100,000/115.5

Inventory ordering cost=$865.8

Inventory ordering cost=$866 (Approximately)

Inconclusion the inventory ordering cost using the economic order quantity is: B. $866.

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