Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of​ operation, 2,200 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month​ includes: Variable manufacturing costs $24.00 per unit Variable marketing costs $5.00 per unit Fixed manufacturing costs $13.00 per unit Administrative​ expenses, all fixed $21.00 per unit Ending​ inventories: Direct materials −0− WIP −0− Finished goods 400 units What is the operating income using variable​ costing?

Answer:

$3.38

Explanation:

The diluted earnings per share is calculated as;

First, we need to calculate the weighted average outstanding shares.

Weighted average outstanding share is

= Common shares + (Issued shares × 9/12[April - December] + [(Issued shares - Shares exercisable)

= 69,000 shares + (39,000 shares × 9/12) + ( 14,750* - 5,145*)

= 69,000 + 29,250 + 9,605

= 107,855

Therefore, the diluted earnings per share is;

= Net income / Weighted average outstanding shares

= $364,915 / 107,855

= $3.38

Note : (14,500 shares × 11) / 31

= 5,145

Answer:

1. Variable Cost

Manufacturing 96,000 ( Relevent )

Selling and administrative 108,000 ( Irrelevent )

Fixed Cost

Manufacturing 124,000 ( Irrelevent )

Selling and administrative 94,000 (Irrelevent )

2. $55,200

3. A. If the regular customer found out about this order and will demand a lower price?

B. Will this order customer come back again and again asking the same reducted price?

C. Will this order price will start a price war with the competitors?

Explanation:

1. Calculation to Identify each cost in the income statement as either relevant or irrelevant to Sea Blue's decision.

Variable Cost

Manufacturing 96,000 ( Relevent )

Selling and administrative 108,000 ( Irrelevent )

Fixed Cost

Manufacturing 124,000 ( Irrelevent )

Selling and administrative 94,000 (Irrelevent )

2. Preparation of a differential analysis to determine whether Sea Blue should accept this special sales order.

Differential analysis

Expected increase in income in revenue

( 4,600 vest * $15 per vest ) 69,000

Less :Expected increase in Variable manufacturing

( 4,600 vest * $3 per vest) (13,800)

=$55,200

Variable manufacturing cost of $96,000 / divide by 32,000 units will give us $3

Based on the above calculation Sea blue should accept this order reason been that the order will increase their operating income by the amount of $55,200.

3. The manager of Sea blue should know that the sale might affect their regular sale in long run.

Therefore In addition to determining the special order's effect on operating profits, Sea Blue's managers also should consider:

A. If the regular customer found out about this order and will demand a lower price?

B. Will this order customer come back again and again asking the same reducted price?

C. Will this order price will start a price war with the competitors?

Answer:

9,690 stocks

Explanation:

some information is missing:

Market Value Balance Sheet

Cash            $45,300        Equity $515,300

Fixed assets    $470,000    

Total           $515,300        Total         $515,300

total number of shares outstanding = 10,000

stock's market price = $515,300 / 10,000 = $51.53

stocks repurchased = $16,000 / $51.53 = 310.50, but we must round down to 310 stocks

stocks outstanding after repurchase = 10,000 - 310 = 9,690

Answer:

a.  variable overhead cost variance-   $3,448  Unfavorable

b.  variable overhead efficiency variance-  $ 56 unfavorable

c. total variable overhead variance -   $3,504  Unfavorable

d. fixed overhead cost variance - $65   unfavorable

e. Fixed overhead volume variance -$ 112.5   unfavorable

Explanation:

Variable overhead rate variance                                          $

8,620 hours should have cost (8,620  × $0.80)               6896

but did cost                                                                         10,344

Variable overhead rate variance                                    3,448 Unfavorable

Variable overhead rate variance  =$3,448 unfavorable

Efficiency variance                                                                 Hours

190 units should have taken (1,900 × 4.50 hrs)                  8,550

but did take                                                                            8,620

Efficiency variance in hours                                                    70   unfavorable

Standard rate                                                                    ×   $0.80

Efficiency variance                                                           $ 56 unfavorable

Efficiency variance  =$ 56 unfavorable

Total variable overhead= rate variance +efficiency

Total variable overhead =  $3,448 UF + $ 56 UF =  $3,504  U

Total variable overhead = $3,504  Unfavorable

Fixed overhead cost variance

                                                                      $

Budgeted cost                                           968

Actual cost                                                1,033

Fixed overhead cost Variance           65   unfavorable

Fixed Overhead Volume

                                                                            Units

Budgeted units                                                 2,150                                      

Actual    units                                                       1,900

Variance                                                                  250

Standard fixed cost per unit (Notes)                $0.45

Volume Variance                                             112.5   unfavorable

Standard fixed overhead cost per unit

= standard hours × standard Fixed overhead rate = 4.5 × $0.1= $0.45

a.  variable overhead cost variance-   $3,448 Unfavorable

b.  variable overhead efficiency variance-  $ 56 unfavorable

c. total variable overhead variance -   $3,504  Unfavorable

d. fixed overhead cost variance - $65   unfavorable

e. Fixed overhead volume variance -$ 112.5   unfavorable

Answer: segmentation

Explanation:

Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.

From the question, we are informed that XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.

Market research is a systematic attempt to acquire data about target markets and customers: learn everything you can about them, starting with their names. It is considered as the crucial part of business strategy.

XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.

Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.

To know more about Market, refer to the link:

https://brainly.com/question/13959285

Answer:

Cash flow analysis, is the right answer.

Explanation:

“Cash flow analysis” is the method that determined the actual cash that goes out of the business and the actual cash that comes in the business. Basically this method is used for financial purposes. This method exhibits the actual cost that the business has incurred and the actual benefit it has earned. Moreover, new investors that invest in the company primarily sees the financial report of the company and then take the decision to invest.

Answer:

A. It examines how individuals and teams in organizations relate to one another and to their counterparts in other organizations.

Explanation:

Organizational behavior examines how individuals and teams in organizations relate to one another and to their counterparts in other organizations.

An organizational behavior can be defined as the study of people's opinions, feelings, actions and how people perceive an organization.

This ultimately implies that, an organizational behavior is the study of people's opinions, feelings, actions and how people perceive an organization.

Basically, it measures how an organization relates with its external environments. This is very key to formulating policies, mission and achieving a successful long-term organizational goals and objectives.

Answer:

$29.630

Explanation:

For computation of stock price first we need to follow some steps which is shown below:-

Free cash flow = EBIT (1 - T) + Depreciation - Capital expenditure - Working capital

= $450 million + $65 million - $110 million - $30 million

=  $375 million

Value of firm = Free cash flow ÷ (WACC - Growth)

= $375 million ÷ (9% - 4.5%)

= $375 million ÷ 0.045

= $8,333.33 million

Value of equity = Value of firm - Value of debt

= $8,333.33 million - $3,000 million

= $5,333.33 million

Stock price = Value of equity ÷ Outstanding shares

= $5,333.33 million ÷ 180 million

= $29.630

Answer:

$14.87

Explanation:

Computation the imputed interest income for the first year of the bond

First step

Using this formula

Imputed interest income= Par value/(1+yield to maturity)^Numbers of years

Let plug in the formula

Imputed interest income$1,000/(1.10)^20

Imputed interest income= $1,000/6.72749

Imputed interest income=$148.64

Second step

Imputed interest income=$1,000/(1.10)^19= Imputed interest income=$1,000/6.11590

Imputed interest income=$163.51

Hence,

Imputed interest income=$163.51 - $148.64

Imputed interest income= $14.87

Therefore the imputed interest income for the first year of the bond will be $14.87

Answer:

Where can you go in the Banking Center to review downloaded bank feed transactions that have already been matched to existing transactions in QuickBooks Online?

a. For Reviewed tab

Explanation:

In QuickBooks online, you have the Reviewed tab where you can download at least the last 90 days of transactions, made with your bank or credit card. QuickBooks is also able to categorize all the downloaded transactions you have done. In the reviewed tab you can find all the accepted bank transactions.

Answer:

$112,038,000

Explanation:

The book value is computed as shown below:

= Equity balance + net income + issue of new stock

= $105,038,000 + $3,000,000 + $4,000,000

= $112,038,000

Answer:

Any amount withdrawn above the cost basis is taxable

Explanation:

This woman is above 59½ years at age 60. If she was least than 60, she would be owing a 10% penalty on the taxable amount of this withdrawal. But since she is above this age she has to pay income taxes on the whole taxable amount of the funds she withdrew. Variable annuities would never be taxed the money is withdrawn. Therefore option B is the best answer for This question.

Answer:

Interest expense = $8453

Explanation:

We can calculate Bond interest expense by multiplying Carrying value of the bond with the effective interest rate and the period of time,

DATA

Carrying value of bond = $169,056

Effective interest rate = 10%

Period of time = 6 months

Interest expense =?

Calculation

Interest expense = Carrying value x Effective interest rate x Time period

Interest expense = $169,056 x 10% x [tex]\frac{6months}{12months}[/tex]

Interest expense = $8453

Answer:

a. Lance's Tax basis in his LLC interest

= Basis of investment property + Shares in LLC debt

= $312,500 + ($380,000 * 70%)

= $312,500 + $266,000

= $578,500

Therefore, LLC common debt obligation treated as non-recourse debt, lance income allocation ratio is used to allocate a share of LLC debt to him

b. Lance holding period in his interest is 5 years. The holding period of the contributed assets "tacks onto" his partnership interest because Lance contributed a capital asset

c. Cloud Peak's basis in the contributed property is $312,500. Also, the carryover basis would be taken by the LLC in the contributed property

d. Cloud's Peak holding period in the contributed property is 3 years

Answer:

Wednesday, June 21st

Explanation:

In this scenario, since the customer redeemed the shares on Wednesday, June 14th then he must be paid before Wednesday, June 21st. This is 7 days after the redemption. According to section 22 article (e) of the Investment Company Act of 1940, all companies are prevented from postponing the date of payment for more than seven days as stated below.

(e) No registered investment company shall suspend the right

of redemption, or postpone the date of payment or satisfaction upon

redemption of any redeemable security in accordance with its terms

for more than seven days after the tender of such security to the

company or its agent designated for that purpose for redemption

Answer:

Standard Overhead rate is $1.25 per Direct labor hours

Explanation:

Total variable cost (2000 unit * $2.50) =    $5,000

Total fixed cost                                       =    $5,000

Estimated Overhead cost                     =     $10,000

Estimated Direct labor hour = 2000 unit * 4 hours = 8,000 hours

Standard Overhead rate = Estimated overhead cost / Estimated Direct labor hour

Standard Overhead rate = $10,000 / 8,000 hours

Standard Overhead rate = $1.25 per Direct labor hours

Answer:

Cost of equity = 9.6%

Explanation:

The cost of equity is the return a firm theoretically pays to its equity investors, In order to calculate the cost of equity here we need to add up the yield to maturity for the company's long term debt and the risk premium per year over the yield on its long term debt.

Solution

Cost of equity = Yield to maturity + Risk premium

Cost of equity = 6.4% + 3.2%

Cost of equity = 9.6%

Answer:

1.

DR Cash.................................................$240,000  

CR Common Stock................................................... $200,000

Paid in Excess of Par- Common Stock.....................$40,000

Working

Common Stock = $20 * 10,000 = $200,000

Paid in Excess of Par- Common Stock = 240,000 - 200,000 = $40,000

2.

DR Promotion Expenses................................$45,500  

CR Common Stock.........................................................$5,000

Paid in Excess of Par- Common Stock ........................$40,500

Working

Common stock = 5,000 * 1 = $5,000

Paid in Excess of Par- Common Stock = 45,500 - 5,000 = $40,500

3

DR Promotion Expenses..........................$45,500  

CR Common Stock....................................................$45,500

4

DR Cash  ...................................................$170,500

CR Preferred Stock .....................................................$125,000

CR Paid in Excess of Par - Preferred Stock ..............$45,500

Working

Preferred Stock = 50 * 2,500 = $125,000

Paid in Excess of Par - Preferred Stock = 170,500 - 125,000 = $45,500

Answer:

                             Journal Entry

                                    Debit       Credit

Interest Expense      $36,000

Notes Payable          $26,328

Cash                                             $62,328

Workings

Interest portion for one year = 400,000 * 9% = $36,000

Total installment paid = $62,328

So, principal portion repaid = $62,328 - $36,000

 = $26,328

Answer:

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Answer:

The most important technique for project evaluation is the net present value (NPV) which compares the present value of discounted cash flows against the  initial costs associated with the project. The other two most important techniques used are the payback period (either regular or discounted) and the internal rate of return (IRR).

Depending on the company's needs, sometimes one technique might be used instead of others. E.g. technological firms generally use the payback period because most of their projects have a very short life, 1 or 2 years. Other times, you might have to compare different projects and even if they are not mutually exclusive, no company can dispose of money freely. It only invests in certain projects that have a minimum required rate of return.

But the basic technique, the NPV, is the most relevant in a sense that no project with a negative NPV should be accepted.

Answer:

$50,000

Explanation:

The computation of the residual income for each division is shown below:

As we know that

Residual income = Operating income - target income

where,  

Operating income is given in the question  

And, the target income could be calculated by

= Average invested assets × required rate of return

= $4,500,000 × 10%

= $450,000

So, the residual income is

= $500,000 - $450,000

= $50,000

Answer:

Dividend yield = 227.06%

Explanation:

Assuming the Closing stock market summary for Baldwin company is $44.05

Dividend yield = Dividend * 100 / (Price* (1 + growth rate) )

Dividend yield = 1.10 * 100 / (44.05 * (1+0.10) )

Dividend yield = 1.10 * 100 / (44.05 * 1.10)

Dividend yield = 110 / 48.455

Dividend yield = 2.2706

Dividend yield = 227.06%

Answer:value of stock for the required return of 12 % =  $53

Explanation:

Given

current dividend just paid = $3.00

dividend to grow at constant rate of 6%

required rate of return =12%

to calculate the value of stock for the requitred return of 12 % , we use the dividend growth model which is  

Current price = dividend ( 1 + growth rate )/ (required rate -growth rate )

                        = 3 x (1+6%) / 12-6 = 3 x 1.06 /6% =3.18/0.06=  $53

Therefore  value of stock for the requitred return of 12 % ,=  $53

Answer:

Free cash flow=$2.37

Explanation:

Calculation for how much was its free cash flow, in millions

Using this formula

Free cash flow =[ (Operating income * (1- tax rate) + Depreciation- Expenditures on fixed assets and net operating working capital]

Where,

Operating income =$3.95

(1- tax rate) = (1 - .40)

Depreciation=$1.20

Expenditures on fixed assets and net operating working capital=$1.2

Let plug in the formula

Free cash flow = [($3.95 * (1 - .40) + $1.20 - $1.2]

Free cash flow=$3.95*0.60+$1.20-$1.2

Free cash flow=$2.37+$1.20-$1.2

Free cash flow=$3.57-$1.2

Free cash flow=$2.37

Therefore the amount of its free cash flow, in millions will be $2.37

Answer:

b. false

Explanation:

A bottleneck is a point at which there is the stoppage in the system of production. The inefficiencies that are generated through the bottleneck developed the delays and leads to the high cost of production

Here in the given situation, since there is the highest contribution margin per unit that gives more priority as compared with the contribution margin per bottleneck hour i.e. totally wrong as it should give the priority to the contribution margin per bottleneck hour

Therefore the given statement is false

Answer:

company's product line in the dog food market

Explanation:

In the description provided, it can be said that Prime Cuts will be an addition to the company's product line in the dog food market. A product line is a group of related products all marketed under a single brand name and are sold by the same company to the same targeted group of consumers. Such as in this scenario, all of the products listed are dog treats/food with different ingredients and are all sold by the same company to people looking for dog food.

Answer: Commercial paper is a form of short-term financing that is primarily used by large, strong, financially stable companies.

Explanation:

Commercial papers a promissory notes which are issued by companies on a short term basis that are unsecured. It should be noted that that they are used by the strong, large, and financially stable companies.

Commercial paper are issued in order to finance payroll, and also meet a company's short-term liabilities.

Answer: C. $38,000

Explanation:

The Operating cashflow for a project will be the net income earned from it less any taxes but including depreciation.

In formula form;

Operating cash flow = EBIT - tax paid + depreciation

Earnings Before Interest and Tax

= Sales - Expenses

= 100,000 - 50,000 - 20,000

= $30,000

Tax paid

= EBT * 40%

= 30,000 * 40%

= $12,000

Operating cash flow = EBIT - tax paid + depreciation

= 30,000 - 12,000 + 20,000

= $38,000

Note; Depreciation is added back because it is a non-cash expense.