Answer:
This is the table that the question is referring to:
Price QJ QS
5 4 2
10 3 1
15 2 0
20 1 0
Total market demand is the sum of the individual market demands. In this market, it is the sum of the market demand of Jake and Sue.
Market demand at the price of $5 is 7 pizzas.
Market demand at the price of $10 is 4 pizzas.
Market demand at the price of $15 is 2 pizzas.
Market demand at the price of $20 is 1 pizza.
Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $65. Rally purchases the standard quadcopter for $35 and the deluxe quadcopter for $45. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $14,700. How many of each type of quadcopter must Rally sell monthly to breakeven?
To earn $10,500?
First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach.
Answer:
Rally must sell 1,080 units of Standard and 720 units of Deluxe
Explanation:
Standard Deluxe Total
Sales price per unit $45 $65
Less: Variable cost ($35) ($45)
Contribution Margin per unit $10 $20
Sales Mix units (A) $3 $2 $5
Contribution margin $30 $40 $70
Weighted average Contribution $14
per unit C= B/A
Appointment of fixed cost between standard and deluxe
Total Fixed cost = 14,700
Break even point = Fixed cost / Weighted average Contribution per unit
= 14,700 / 14
= 1,050
Apportionment of Break even point sales between Standard and deluxe in sales mix ratio (3:2)
Standard = 1,050 * 3/5 = 630
Deluxe = 1,050 * 2/3 = 420
Unit to be sold to get desired profit = Fixed cost + Desired profit / Weighted average Contribution per unit
= (14,700 + 10,500) / 14
= 1,800
Apportionment of Units to be sold to get desired profit between Standard and Deluxe in sales mix ratio (3:2)
Standard = 1,800 * 3/5 = 1,080
Deluxe = 1,800 * 2/5 = 720
To reach target operating income, Rally must sell 1,080 units of Standard and 720 units of Deluxe
Which of the following enables employees to deliver valuable results more quickly, improve their productivity, and get products and new ideas to market faster?a. Adhering to time-tested methods and conceptsb. Preventing the dissemination of explicit knowledgec. Avoiding collaboration among contractors, suppliers, and other business partnersd. Sharing experience and expertise of employees across an organization
Answer:
d. Sharing experience and expertise of employees across an organization
Explanation:
It is important for an organization to allow its employees to share and build experience and expertise. Workers reap the moment more quickly when there is no office and what it does and when new employees or employees moving to new positions are able to share ideas and experiences. It allows employees to deliver more valuable results faster, improve productivity and deliver market products and new ideas faster.Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a commission of 25% of the selling price on any merchandise sold. During the year, Mogul ships inventory with a cost of $81,000 to Ski Outfit and pays shipping costs of $8,700. By the end of the year, $61,000 of the merchandise has been sold to customers for a total of $86,000. Mogul allocates $6,500 of the shipping costs to inventory sold and the other $2,200 to inventory not sold. Mogul also paid advertising costs during the year of $10,500. What amount of inventory will Mogul report at year end
Answer:
$22,200
Explanation:
With regards to the above information Mogul company,
Cost of goods
= $81,000 + $8,700
= $89,700
= $61,000 + $6,500
= $67,500
Inventory = Cost of goods - Cost of goods sold
= $89,700 - $67,500
= $22,200
It therefore means that the amount of inventory Magu company will report at the year end is $22,200
Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,307 in March. Burpee sets their prices so that they earn an average 32% gross profit on sales revenue. What is budgeted cost of goods sold for the first quarter (January, February and March)?
Answer:
Total COGS= $5,123,006.44
Explanation:
Giving the following information:
Sales:
January= $2,038,635
February= $2,581,891
March= $2,913,307
Burpee sets their prices so that they earn an average 32% gross profit on sales revenue.
We need to calculate the cost of goods sold:
January= 2,038,635*0.68= 1,386,271.8
February= 2,581,891*0.68= 1,755,685.88
March= 2,913,307*0.68= 1,981,048.76
Total COGS= $5,123,006.44
"The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor hour. What is the total budgeted cost at (a) 9,000 hours and (b) 12,345 hours
Answer:
$86,000 and $99,380
Explanation:
The flexible budget formular is fixed at $50,000 plus variable costs
The direct labor hour is $4 per hour
The total budgeted cost at 9,000 hours can be calculated as follows
= $50,000 + ($4×9,000 hours)
= $50,000 + $36,000
= $86,000
The total budgeted cost at 12,345 hours can be calculated as follows
= $50,000 + ( $4×12,345 hours)
= $50,000 + $49,380
= $99,380
Hence the total budgeted cost at 9,000 hours and 12,345 hours is $86,000 and $99,380 respectively
Based on the following information, what is the expected return? State of Probability of State Rate of Return if Economy of Economy State Occurs Recession .29 − 9.70% Normal .40 11.20% Boom .31 21.40% Multiple
Answer:
g
Explanation:
g
Wilson Tech’s production cost data for the current period is: Beginning work in process inventory: 19,000 units Units transferred out: 9,800 units Ending work in process inventory: 6,200 units All materials are entered at the beginning of the process and conversion costs are incurred uniformly throughout the process. The ending work in process units are 40% complete as to conversion costs. What are the equivalent units of production for conversion costs?
Answer:
the equivalent units of production for conversion costs is 12,280.
Explanation:
Calculation of the equivalent units of production for conversion costs.
Units transferred out (9,800 × 100 %) = 9,800
Units of ending work in process (6,200 × 40%) = 2,480
Equivalent units of production for conversion costs =12,280
We are evaluating a project that costs $874,800, has a nine-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 85,000 units per year. Price per unit is $55, variable cost per unit is $39, and fixed costs are $765,000 per year. The tax rate is 24 percent, and we require a return of 11 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.
Calculate the best-case and worst-case NPV figures
Answer:
best case scenario:
project outlay = $874,800
yearly cash flows:
projected sales = 85,000 x 110% = 93,500sales price = $55 x 110% = $60.50variable costs = $39 x 90% = $35.10fixed costs = $765,000 x 90% = $688,500depreciation costs = $874,800 / 9 = $97,200tax rate = 24%yearly cash flows = {[(93,500 x $60.50) - (93,500 x $35.10) - $688,500 - $97,200] x (1 - 24%)} + $97,200 = $1,304,992
using a financial calculator, NPV = $6,351,002.73
worst case scenario:
project outlay = $874,800
yearly cash flows:
projected sales = 85,000 x 90% = 76,500sales price = $55 x 90% = $49.50variable costs = $39 x 110% = $42.90fixed costs = $765,000 x 110% = $841,500depreciation costs = $874,800 / 9 = $97,200tax rate = 24%yearly cash flows = {[(76,500 x $49.50) - (76,500 x $42.90) - $841,500 - $97,200] x (1 - 24%)} + $97,200 = -$232,488
using a financial calculator, NPV = -$2,071,211.79
Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows:
A. Estimated sales for July by sales territory:
Maine:
Backyard Chef 310 units at $700 per unit
Master Chef 150 units at $1,200 per unit
Vermont:
Backyard Chef 240 units at $750 per unit
Master Chef 110 units at $1,300 per unit
New Hampshire:
Backyard Chef 360 units at $750 per unit
Master Chef 180 units at $1,400 per unit
B. Estimated inventories at July 1:
Direct materials:
Grates 290 units
Stainless steel 1,500 lbs.
Burner subassemblies 170 units
Shelves 340 units
Finished products:
Backyard Chef 30 units
Master Chef 32 units
C. Desired inventories at July 31:
Direct materials:
Grates 340 units
Stainless steel 1,800 lbs.
Burner subassemblies 155 units
Shelves 315 units
Finished products:
Backyard Chef 40 units
Master Chef 22 units
D. Direct materials used in production:
In manufacture of Backyard Chef:
Grates 3 units per unit of product
Stainless steel 24 lbs. per unit of product
Burner subassemblies 2 units per unit of product
Shelves 4 units per unit of product
In manufacture of Master Chef:
Grates 6 units per unit of product
Stainless steel 42 lbs. per unit of product
Burner subassemblies 4 units per unit of product
Shelves 5 units per unit of product
E. Anticipated purchase price for direct materials:
Grates $15 per unit
Stainless steel $6 per lb.
Burner subassemblies $110 per unit
Shelves $10 per unit
F. Direct labor requirements:
Backyard Chef:
Stamping Department 0.50 hr. at $17 per hr.
Forming Department 0.60 hr. at $15 per hr.
Assembly Department 1.00 hr. at $14 per hr.
Master Chef:
Stamping Department 0.60 hr. at $17 per hr.
Forming Department 0.80 hr. at $15 per hr.
Assembly Department 1.50 hrs. at $14 per hr.
Required:
1. Prepare a sales budget for July. Gourmet Grill Company Sales Budget For the Month Ending July 31 Product and Area Unit Sales Volume Unit Selling Price Total Sales Backyard Chef: Maine 310 700 217,000 Vermont 240 750 180,000 New Hampshire 360 750 270,000 Total 910 667,000 Master Chef: Maine 150 1,200 180,000 Vermont 110 1,300 143,000 New Hampshire 180 1,400 252,000 Total 440 575,000 Total revenue from sales 1,242,000
2. Prepare a production budget for July. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Gourmet Grill Company Production Budget For the Month Ending July 31 Units Backyard Chef Master Chef Expected units to be sold 910 440 Desired inventory, July 31 40 22 Total units available 950 462 Estimated inventory, July 1 -30 -32 Total units to be produced 920 430
3. Prepare a direct materials purchases budget for July.
Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping Department
Forming Department
Assembly Department
Total Hours required for production:
Backyard Chef
Master Chef
Total Hourly rate
Total direct labor cost
Answer:
Gourmet Grill Company
1. Sales Budget For the Month Ending July 31
Product Area Unit Sales Unit Selling Total
Volume Price Sales
Backyard Chef: Maine 310 $700 $217,000
Vermont 240 750 180,000
New Hampshire 360 750 270,000
Total 910 667,000
Master Chef: Maine 150 1,200 180,000
Vermont 110 1,300 143,000
New Hampshire 180 1,400 252,000
Total 440 575,000
Total revenue from sales $1,242,000
2. Gourmet Grill Company Production Budget For the Month Ending July 31 Units
Units Backyard Chef Master Chef Total
Expected units to be sold 910 440 1,350
Desired inventory, July 31 40 22 62
Total units available 950 462 1,412
Estimated inventory, July 1 -30 -32 62
Total units to be produced 920 430 1,350
3. Gourmet Grill Company
Direct Labor Cost Budget
For the Month Ending July 31
Stamping Forming Assembly
Units Department Department Department
Backyard Chef 920 460 hrs 552 hrs 920 hrs Master Chef 430 258 hrs 344 hrs 645 hrs
Total Hours required
for production: 718 hrs 896 hrs 1,565 hrs
Total Hourly rate $17 $15 $14
Total direct labor cost $12,206 $13,440 $21,910
Explanation:
1) Data:
A. Estimated sales for July by sales territory:
Maine:
Backyard Chef 310 units at $700 per unit
Master Chef 150 units at $1,200 per unit
Vermont:
Backyard Chef 240 units at $750 per unit
Master Chef 110 units at $1,300 per unit
New Hampshire:
Backyard Chef 360 units at $750 per unit
Master Chef 180 units at $1,400 per unit
B. Estimated inventories at July 1:
Direct materials:
Grates 290 units
Stainless steel 1,500 lbs.
Burner subassemblies 170 units
Shelves 340 units
Finished products:
Backyard Chef 30 units
Master Chef 32 units
C. Desired inventories at July 31:
Direct materials:
Grates 340 units
Stainless steel 1,800 lbs.
Burner subassemblies 155 units
Shelves 315 units
Finished products:
Backyard Chef 40 units
Master Chef 22 units
D. Direct materials used in production:
In manufacture of Backyard Chef:
Grates 3 units per unit of product
Stainless steel 24 lbs. per unit of product
Burner subassemblies 2 units per unit of product
Shelves 4 units per unit of product
In manufacture of Master Chef:
Grates 6 units per unit of product
Stainless steel 42 lbs. per unit of product
Burner subassemblies 4 units per unit of product
Shelves 5 units per unit of product
E. Anticipated purchase price for direct materials:
Grates $15 per unit
Stainless steel $6 per lb.
Burner subassemblies $110 per unit
Shelves $10 per unit
F. Direct labor requirements:
Backyard Chef:
Stamping Department 0.50 hr. at $17 per hr.
Forming Department 0.60 hr. at $15 per hr.
Assembly Department 1.00 hr. at $14 per hr.
Master Chef:
Stamping Department 0.60 hr. at $17 per hr.
Forming Department 0.80 hr. at $15 per hr.
Assembly Department 1.50 hrs. at $14 per hr.
b) Calculations:
Stamping Forming Assembly
Units Department Department Department
Backyard Chef 1 0.50 hr 0.60 hr 1.00 hr
Total hours required 920 460 hrs 552 hrs 920 hrs
Master Chef 1 0.60 hr 0.80 hr 1.50 hrs
Total hours required 430 258 hrs 344 hrs 645 hrs
Total Hours required
for production: 718 hrs 896 hrs 1,565 hrs
c) Gourmet Grill Company's Sales, Production, and Direct Labor Budgets for July detail the sales units under different product categories and areas. They will guide the management of Gourmet Grill company to make relevant decisions with regard to inventories, production, and sales volume that must be achieved in order to realize the budgets and attin company's objectives. They are very essential in planning, decision making, and control. Based on these budgets, performances will be reviewed, analyzed, and accordingly rewarded.
If sales are $803,000, variable costs are 66% of sales, and operating income is $262,000, what is the contribution margin ratio
Answer:
34%
Explanation:
The formula to calculate the contribution margin ratio is:
Contribution margin ratio= (Sales – variable expenses)/sales
Sales=$803,000
Variable expenses=$803,000*66%=$529,980
Now, you can replace the values:
Contribution margin ratio=($803,000-$529,980)/$803,000
Contribution margin ratio=0.34
According to this, the answer is that the contribution margin ratio is 34%.
Little Rhody Manufacturing needs to purchase a new central air-conditioning system for a plant. There are two choices. The first system costs $70,000 and is expected to last 6 years, and the second system costs $102,000 and is expected to last 9 years. Assume that the opportunity cost of capital is 12 percent. Which air-conditioning system should you purchase
Answer:
The first option should be considered for purchase as its has a lesser EAC
Explanation:
Option 1 Option 2
Cost $70,000 $102,000
Opportunity cost 12% 12%
of capital
Useful Life 6 years 9 years
PVAF 4.114 5.3282
Equated Annual Cost $17,025.83 $19,143.43
Conclusion: The first option should be considered for purchase as its has a lesser EAC.
Working
PVAF (12%, 6 years) = 4.114
PVAF (12%, 9 years) = 5.3282
Equated annual cost = Cost / PVAF (r%, n years)
Assume that a purely competitive firm has the following schedule of average and marginal costs:
Output AFC AVC ATC MC
1 $300 $100 $400 $100
2 150 75 225 50
3 100 70 170 60
4 75 73 148 80
5 60 80 140 110
6 50 90 140 140
7 43 103 146 180
8 38 119 156 230
9 33 138 171 290
10 30 160 190 360
Instructions: Enter all values as whole numbers. If any values are negative, please enter them with a (-) sign.
a) At a price $55, the firm would produce ____ units of output. At a price of $120, the firm would produce ____ units of output. At a price of $200, the firm would produce ____ units of output.
b) The per-unit economic profit (or loss) is calculated by subtracting at a particular level of output from the product price. This per-unit economic profit is then multiplied by the number of units of ___ to determine the economic profit for the competitive firm.
i) At the product price of $200, the average total costs are $____, so per-unit economic profit is
$____. Multiplying this amount by the number of units of output results in an economic
profit of $____.
ii) At the product price of $120, the average total costs are $____, so per-unit economic losses are $____. Multiplying this amount by the number of units of output results in an economic loss of $____.
Answer:
a) At a price $55, the firm would produce 3 units of output.
At a price of $120, the firm would produce 6 units of output.
At a price of $200, the firm would produce 7 units of output.
The rule is Price = Marginal Cost for a competitive firm
b) The per-unit economic profit (or loss) is calculated by subtracting ATC at a particular level of output from the product price. This per-unit economic profit is then multiplied by the number of units of output to determine the economic profit for the competitive firm.
i) At the product price of $200, the average total costs are $146 , so per-unit economic profit is $54 . Multiplying this amount by the number of units of output results in an economic profit of $378 .
Explanation:
At P = 200, output produced is 7 units
ATC is $146
Per-unit economic profit = 200 - 146 = $54
Hence, Total economic profit = $54 x 7 = $378
ii) At the product price of $120, the average total costs are $140 , so per-unit economic losses are $ -20. Multiplying this amount by the number of units of output results in an economic loss of $-100.
Explanation: At P = 20, output produced will be 5 units. 6th unit will not be produced as it will result in even greater loss.
Total loss = ($140 - $120) x 5 = $100
A product with an MSRP of CNY 15.00 has a promotion allowance of 15%. How much will the distributor receive in promotion allowance for each unit
Answer: CNY 2.25
Explanation:
Promotional Allowances are discounts in price that the producers/ supplies of a product will offer to trade partners like distributors to get them to promote their products so that they sell faster.
The promotion allowance here is 15% of the Manufacturer's Suggested Retail Price of CNY 15.00 which is;
= 15% * 15
= CNY 2.25
light sweet petroleum, inc., is trying to evaluate a generation project with cash flows:________.
year Cash Flow
0 -38,600,000
1 62,600,000
2 - 11,600,000
a-1 What is the NPV for the project if the company requires a return of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
NPV _______
a-2 Should the company accept this project?
A. Yes
B. Nο
b. This project has two IRR's, namely _______ percent and ______ percent, in order from smallest to largest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (A negative answer should be indicated by a minus sign.
Answer:
a-1. NPV for the project is $8,381,576.17
a-2. A. Yes. Accept the Project.
b. 40.84 % and 40.84 %
Explanation:
The Net Present Value can be determined using a Financial Calculator as follows :
-38,600,000 CFj
62,600,000 CFj
- 11,600,000 CFj
11 % I/YR
Shift NPV $8,381,576.17
A Company should accept projects that have a positive Net Present Value.Therefore, Accept this project.
Calculation of the Internal Rate of Return using a Financial Calculator :
-38,600,000 CFj
62,600,000 CFj
- 11,600,000 CFj
Shift IRR 40.84 %
the gross sales for store B were 876500. the custmer returns and allowances were 10%. what was the dollar amount of returns and allowances
Answer:
$87,650
Explanation:
The computation of the dollar amount of returns and allowances is shown below:
= Gross sales for store B × customer returns and allowances percentage
= $876,500 × 10%
= $87,650
By multiplying the gross sales with the customer returns and allowances percentage we can get the dollar amount with respect to the returns and allowances and the same is to be considered
Too Young, Inc., has a bond outstanding with a coupon rate of 7 percent and semiannual payments. The bond currently sells for $951 and matures in 23 years. The par value is $1,000. What is the company's pretax cost of debt?
Answer:
The company's pretax cost of debt is 7.45 %.
Explanation:
When it comes to bonds, the cost of debt is the required return on the bond known as the Yield to Maturity (YTM) of the bond.
The Yield to Maturity (YTM) of the bond can be determined as follows :
N = 23 × 2 = 46
PV = $951
Pmt = ($1,000 × 7 %) ÷ 2 = - $35
P/YR = 2
FV = - $1,000
YTM = ?
Using a Financial Calculator, the Yield to Maturity (YTM) of the bond is 7.4484 or 7.45 %
Therefore,
The company's pretax cost of debt is 7.45 %.
The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.
a. True
b. False
Answer:
True.
Explanation:
The Doha Round of negotiations focuses on industrial and non-tariff barriers, agriculture, services, and easing trade rules. It is a trade negotiation which is common among the world trade organizations (WTO) member countries. The main purpose of the Doha Round of negotiations is to enhance the international trading process through the application of revised trade rules and lower trade barriers.
This trade-negotiation round of the World Trade Organization was officially launched in November, 2001 in Doha, Qatar.
During 2021, Deluxe Leather Goods issued 797,000 coupons which entitles the customer to a $4.50 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 75% of the coupons will be redeemed. 420,000 coupons had been processed during 2021. Deluxe recognizes coupon expense in the period coupons are issued. At December 31, 2021, Deluxe should report a liability for unredeemed coupons of:
Answer:
Deluxe should report a liability for un-redeemed coupons of 799,875
Explanation:
Estimated coupons to be redeemed 597,750
(797,000 * 75%)
Less: Coupons redeemed 420,000
Coupons un-redeemed 177,750
X Cost per Coupon 4.50
Liability for un-redeemed Coupons 799,875
A ________ pay plan pays for individual performance based on performance appraisal ratings.
A) piece-rate
B) merit-based
C) employee stock ownership
D) profit-sharing
E) gainsharing
Answer:
B) merit-based
Explanation:
The merit based in the plan that depends upon the performance of the employees in an annual year. It could be analyzed by the supervisor or the team leader who motivates him, guides him to accomplish the company objective.
Therefore according to the given situation, option B is correct
And all other options are wrong
Consider the WACC formula, if the required rate of return on preferred stock increases, holding all else equal, the WACC increases.
a) true
b) false
Answer: True
Explanation:
The Weighted Average Cost of Capital (WACC) calculates the cost of capital to a company for the means of capital it uses to finance operations. It is based on the cost and the weight of the various capital types.
Formula is;
= Cost of Equity * %Equity + Cost of debt * %Debt * ( 1 - Tax rate) + Cost of Preferred Stock * %Preferred stock
The required rate of return on preferred stock is the same as the Cost of Preferred Stock. From the formula it is shown that if this rate increases, holding all else equal, total WACC will increase.
e. Assume that the average price of a new home is $132,500. If new homes are increasing at a rate of 8% per year, how much will a new home cost in seven years? (Round your answer to 2 decimal places.)
Answer:
A new home will cost $227081.72 in seven years.
Explanation:
To calculate the value or price of the new home in seven years, we need to calculate the future value of $132500 increasing at a rate of 8% per year for 7 years. The formula to calculate the future value will be,
Future value = Present value * (1+r)^t
Where,
r is the rate which will be used for compoundingt is the time in number of yearsFuture value = 132500 * (1+0.08)^7
Future value = $227081.7156 rounded off to $227081.72
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 has engaged in market _________.
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
Suppose that on August 14, 2019, an antique woven rug handmade in Canada is priced at CAD 1,100. The approximate U.S. dollar price of the rug would be
Answer:
USD 825.95Explanation:
Step one:
To tackle this problem we need data from historical chart.
From historical chart, on August 14, 2019, 1 USD is equivalent to CAD 1.3318
Step two:
From the historical data we need to perform conversion on the data to get the USD equivalent of the CAD given in the problem
Hence
if 1 USD = CAD 1.3318 then
x USD = CAD 1,100
by cross multiplying we have
x USD= 1,100/ 1.3318
x USD= 825.95
Hence as at August 14, 2019 CAD 1,100 is USD 825.95
Bramble Corp. receives $360,000 when it issues a $360,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $60,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments.
Answer:
The First Payment occurs on 31 December 2021 as :
Mortgage Payable $31,200 (debit)
Interest Expense $28,800 (debit)
Cash $60,000 (credit)
The Second Payment occurs on 31 December 2022 as :
Mortgage Payable $33,696 (debit)
Interest Expense $26,304 (debit)
Cash $60,000 (credit)
Explanation:
First prepare an amortization schedule using the following data concerning the mortgage note :
Hint : Determine the number of years, N of this bond.
PV = $360,000
PMT = - $60,000
P/Yr = 1
r = 8 %
FV = 0
N = ?
The length of the bond, N is 8.4969 or 9 years
The First Payment occurs on 31 December 2021 as :
Mortgage Payable $31,200 (debit)
Interest Expense $28,800 (debit)
Cash $60,000 (credit)
The Second Payment occurs on 31 December 2022 as :
Mortgage Payable $33,696 (debit)
Interest Expense $26,304 (debit)
Cash $60,000 (credit)
Bonita Industries is planning to sell 1000 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $11 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bonita has 3900 pounds of clay mix in beginning inventory and wants to have 3700 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month
Answer: $2,585
Explanation:
Total budgeted amount for direct labor;
Production is estimated at 470 boxes.
Each box requires 0.5 hours of direct labor
Employees are paid $11 per hour.
= 470 * 0.5 * 11
= $2,585
A self-employed client has an annual income of $200,000 and is in a high tax bracket. He is not covered by a retirement plan and would like to make the maximum contribution to one to reduce his taxable income. He believes that he will be in a lower tax bracket once he retires. The BEST recommendation is to contribute to a:
Answer:
Simplified Employee Pension IRA (SEP)
Explanation:
Simplified employee pension IRA is most suitable for this client because it is easy to set up and operate. Most importantly it requires a maximum of 20% of the contributor's income. The amount required is capped at $54,000.
In this case 20% of the employee's income is 0.20 * 200,000 = $40,000
So this is a right fit.
Roth IRA will not work because maximum contribution is $5,500
Traditional IRA will also not work because it requires a maximum contribution of $5,500 or when it is a 401(k) plan a maximum of $18,000. It is also expensive to set up and operate as it is designed for big companies.
A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $24,241 representing a gain of $3,478. The value in the operating activities section regarding this event would be
Answer:
($3,478)
Explanation:
The above means that the amount of gain on sale of fixed asset should be deducted from net income so as to get the cash flow from the operating activities because it is an increase in net income for the period under review.
It is to be noted that where non cash expense such as depreciation is given, such will be added back while non cash revenue is deducted to arrive at the net cash flow from operating activities.
There is a 3 percent defect rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $8 per hour and could inspect units in the process at the current production rate of 30 per hour. If no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not. a. If an inspector is hired, what will be the inspection cost per unit? (Round your answer to 3 decimal places.) Cost per unit $ b. If an inspector is not hired, what will be the defective cost per unit? (Round your answer to 3 decimal places.) Cost per unit $ c. Should an inspector be hired based on costs alone? Yes No
Answer:
1a. $2.67 cost per unit
1b. $0.3 cost per unit
1c. Yes
Explanation:
1a. Calculation for what will be the inspection cost per unit If an inspector is hired
The following details were given in the question.
Defective average =3/100= 0.03
inspection rate = 30 per hour
Cost of inspector = 8 per hour
Correction cost = $10 each
Using this formula
Hired inspector =Cost per hour/Current production rate per hour
Let plug in the formula
Hired inspector=8 per hour/30 rate per hour
Hired inspector =0.267×100
Hired inspector=$2.67 cost per unit
1b. Calculation for what will be the defective cost per unit If an inspector is not hired
Using this Formula
No inspector=Defect rate %/Cost per defective
Let plug in the formula
No inspector= 3/100×$10
No inspector= $0.3 cost per unit
1c. Based on the above calculation the inspector should be hired.
A company's Office Supplies account shows a beginning balance of $720 and an ending balance of $640. If office supplies expense for the year is $3,700, what amount of office supplies was purchased during the period
Answer:
Purchases= $3,620
Explanation:
Giving the following information:
Beginning inventory= $720
Ending inventory= $640
Purchase= ?
Used in the period= $3,700
To calculate the purchases, we need to use the following formula:
Purchases= used in the period + desired ending inventory - beginning inventory
Purchases= 3,700 + 640 - 720
Purchases= $3,620
Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well, is referred to as
Answer:
loss leader pricing strategy
Explanation:
The type of strategy that is being described is known as a loss leader pricing strategy. This is a pricing strategy in which a product is sold at a price below its market cost in order to be able to stimulate other sales of more profitable goods or services. In such a scenario, the "leader" product is any popular item that the company is selling, and this item is the one that receives the price cut in order to attract customers that were already interested in it to the other products.
