1 acre = 43,560 square feet.
Multiply square feet by cost per square feet
43,560 x 0.50 = $21,780
Total cost: $21,780
A monopolist desiring to increase its profit has just discovered that lowering its price and selling more output yielded the desired result. Profit increased. Based on this, one can conclude that the marginal cost of production is _____ the marginal revenue from production.
Answer:
Less than
Explanation:
The marginal cost of production is that change in the total production cost when an extra unit is produced. While the Marginal revenue from production is the additional profit realized from production due to the sale of an extra unit.
Generally, When, the marginal cost is less than the marginal revenue, the company's production is low and should increase its output to maximize profit.
A monopolist has to its price in order to sell due to marginal revenue not equalling to price, the monopolist maximizes profits by ensuring its marginal revenue and its marginal cost are the same. Producing when Price is greater than marginal cost makes a monopolist realize profits.
In the short run, fixed costs: Group of answer choices are an important feature in a firm's decision to produce or not produce. have no impact on a firm's profit level. remain constant. do not exist.
Answer:
remain constant.
Explanation:
The short run is a period where all factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down
The long run is a period where all factors of production are varied. It is known as the planning time for a company
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
The price elasticity of gasoline supply in the United States is 0.4. If the price of gasoline rises by 8%, what is the expected change in the quantity of gasoline supplied in the United States?
A. 3.2%
B. + 0.32%
C. + 32.0%
D. + 3.2%
Answer:
a
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
0.4 == quantity / 8
3.2%
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Loger's, a high-end apparel company in Bruslon, an Asian country, cuts back on production as consumers start turning to basic products such as food because of the economic downturn in the country. The company also lays off many of its employees to further cut down expenses. In the context of the business cycle, Bruslon is most likely going through a period of _____.
a. economic expansionb. economic integration
c. economic recovery
d. economic contraction
Answer:
d. economic contraction
Explanation:
Contraction is in economics means it is business cycle phase where the overall economu should be fall. Also the contraction should arise when the cycle of the business is in peak but it should be prior to became as a trough
So at the time of economic contraction, the company normally took the measures of the cost cutting
So as per the given situation, the option d is correct
A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 70% complete. The planners were expecting to be only57% through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,427,000 and it was done for only $1,307,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,507,000 but was actually done for $9,007,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,507,000. To date, they have spent $5,007,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to dat
Answer:
Schedule variance = $1,105,910
Schedule performance index = 1.066
Cost performance index = 1.168
Explanation:
Note: The requirement of the question is not complete. The complete requirement is therefore provided before answering the question.
Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Round your "performance index" values to 3 decimal places.)
The explanation of the answers is now provided as follows:
Budgeted cost of work schedule = Expected cost of first activity + Expected cost of second activity + (Expected cost third activity * Expected percentage of completion) = $1,427,000 + $10,507,000 + ($8,507,000 * 57%) = $16,782,990
Budgeted cost of work performed = Expected cost of first activity + Expected cost of second activity + (Expected cost third activity * Actual percentage completed) = $1,427,000 + $10,507,000 + ($8,507,000 * 70%) = $17,888,900
Actual cost to date = Actual cost of first activity + Actual cost of second activity + Actual amount spent on third activity to date = $1,307,000 + $9,007,000 + $5,007,000 = $15,321,000
Therefore, we have:
Schedule variance = Budgeted cost of work performed - Budgeted cost of work schedule = $17,888,900 - $16,782,990 = $1,105,910
Schedule performance index = Budgeted cost of work performed / Budgeted cost of work schedule = $17,888,900 / $16,782,990 = 1.066
Cost performance index = Budgeted cost of work performed / Actual cost to date = 1.168
Which of the following considerations is related to sociocultural environment
Answer:
You didn't provide anything for me to choose from, so I can't give you an answer.
XYZ Co. expects to sell 26,000 pools for $15 each. Direct materials cost is $3 per pool, direct labor cost is $5 per pool, and manufacturing overhead cost is $1.62 per pool. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 20,000 units 22,000 units Work-in-process inventory 0 units 100 units Finished goods inventory 1,800 units 2,600 units How many pools need to be produced in 2019
Answer:
250120
Explanation:
Total pools is equal to 26,000
Directable cost is equal to $5 per pool
Manufacturing overhead equals 1.62 dollars per pool
Direct costes equals $3 per pool
We add up this costs
5+1.62+3 = 9.62 dollars in total
In 2019 the total amount of pools that needs to be produced can be gotten by multiply 26000 with 9.62
26000x9.62
= 250,120
Carnelian Company sells bicycles at $200 each. Variable cost per unit is $160, and total fixed cost is $120,600. Calculate the sales that Carnelian must make to earn an operating income of $21,500. a. $238,833.
b. $716,500.
c. $243,800.
d. $626,000.
Answer:
Carnelian Company
The sales that Carnelian must make to earn an operating income of $21,500 is:
= $710,500.
Explanation:
a) Data and Calculations:
Selling price per bicycle = $200
Variable cost per unit = $160
Contribution margin per unit = $40 ($200 - $160)
Contribution margin percentage = $40/$200 * 100 = 20%
Fixed cost = $120,600
Target operating income = $21,500
Sales in dollars to earn target operating income = (Fixed cost + Target Income)/Contribution margin ratio
= $120,600 + $21,500/20%
= $142,100/0.2
= $710,500
Assume banks are required to hold reserves equal to 20 percent of deposits. Instructions: Enter your responses as a whole number. a. How much excess reserves does the bank hold
Answer: $100
Explanation:
If the reserve requirement is 20% then the required reserves being held by the company is:
= Total deposits * reserve requirement
= 8,000 * 20%
= $1,600
The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:
Excess reserves = Reserves - Required reserves
= 1,700 - 1,600
= $100
If you place a stop-loss order to sell 100 shares of stock at BDT 55 when the current price is BDT 62, how much will you receive for each share if the price drops to BDT 50?
Answer:
55 per share
Explanation:
A stop-loss is used to immediately sell a stock when it goes down to a certain point. In this example, 50 is beneath 55 so as BDT heads towards 50 it will reach 55. At 55, the selling begins and thus the investor gets 55 per share.
Kathy Elliot has decided that she will start an internet company to sell reliable used cars to customers Nationwide she has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan
Answer:
business plan
Explanation:
The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours? Assume that the activity levels of 2,500 machine-hours and 2,400 machine-hours are within the same relevant range. Group of answer choices
Answer:
$60,380
Explanation:
Missing word "Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity Level - 2500 Machine Hours - Variable Overhead Cost: Supplies 12,250 Indirect Labor ---22,000 Fixed Overhead: Supervisor 15,500 Utilities -- 5500 Depreciation --- 6500 Total Cost --- 61,750"
So, at activity level of 2500
Total variable overhead cost = Supplies + Indirect labor
Total variable overhead cost = $12,250 + $22,000
Total variable overhead cost = $34,250
So, at activity level of 2400
Total variable overhead cost = $34,250 * 2,400/2,500
Total variable overhead cost = $34,250 * 0.96
Total variable overhead cost = $32,880
So, at 2,400 hours
Total overhead cost = Variable overhead cost + Fixed overhead cost
Total overhead cost = $32,880 + Supervisor salary + Utilities + Depreciation
Total overhead cost = $32,880 + $15,500 + $5,500 + $6,500
Total overhead cost = $60,380
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents.$7,000 cash deposit in checking account.$28,000 bond investment due in 20 years.$7,000 U.S. Treasury bill due in 1 month.$400, 3-year loan to an employee.$1,800 of currency and coins.$700 of accounts receivable.
Answer:
the cash and cash equivalents is $15,800
Explanation:
The computation of the cash and cash equivalents is given below:
= Cash deposit + U.S. Treasury bill due in 1 month + currency and coins
= $7,000 + $7,000 + $1,800
= $15,800
hence, the cash and cash equivalents is $15,800
The same is to be considered and relevant
Suppose Torche Corporation has the following results related to cash flows for 2020: Net Income of $10,000,000 Increase in Accounts Payable of $800,000 Increase in Accounts Receivable of $600,000 Decrease in Inventory of $100,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands. What is the Net Cash Flow from Operating Activities?
Answer:
9,700,000
Explanation:
Essentially... a lot. I would recommend learning about debits and credits. Short explanation is credits are negative and debits are positive. So an increase to a debit is adding to the net value, just as a decrease to a credit adds net value.
We start with 10,000,000.
We subtract 800,000 from this as we are increasing AP, a credit.
We are now at 9,200,000
We then add 600,000 from AR, a debit that is increasing.
We are at 9,800,000.
Finally, we subtract 100,000 because we are decreasing Inventory, a debit.
Our final value is 9,700,000
Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. Hint: Not all information may be necessary. b. Use the above information from a service company and from a merchandiser to compute net income.Kleiner Merchandising CompanyAccumulated depreciation $ 700Beginning inventory 10,000Ending Inventory 6,000Expenses 1,950Net Purchases 11,900Net Sales 19,500Krug Service CompanyExpenses $ 8,400Revenues 24,000Cash 650Prepaid rent 660Accounts payable 200Equipment 2,200
Answer:
A.
a. Good Available For Sale $21,900
b. Cost of goods sold $15,900
c. Gross profit $3,600
B. Net income for merchandise company $1650
Net income for service company $15600
Explanation:
A.Compution for gross profit, the goods available for sale, and the cost of goods sold for the merchandiser.
a. Good Available For Sale
Using this formula
Good available fro sale = Beginning inventory + Net purchase
Let plug in the formula
Good available fro sale = $10,000 + $11,900
Good available fro sale = $21,900
b. COST OF GOODS SOLD
Using this formula
Cost of goods sold = Goods available for sale - Ending inventory
Let plug in the formula
Cost of goods sold= $21,900 - $6000 =
Cost of goods sold= $15,900
c. GROSS PROFIT
Using this formula
Gross profit= Sales - COGS
Let plug in the formula
Gross profit = $19,500 - $15,900
Gross profit= $3,600
b.Computation for net income
Net income for merchandise company = Gross profit - Expenses = $3,600 - $1,950 = $1,650
Net income for service company = Revenue - Expenses = $24,000 - $8,400 = $15,600
Following are selected accounts for a company. For each account, indicate whether it will appear on a budgeted income statement (BIS) or a budgeted balance sheet (BBS).
a. Sales …………………………………….._____
b. Administrative salaries paid….._____
c. Accumulated depreciation………._____
d. Depreciation expense………………_____
e. Interest paid on bank loan….….._____
f. Cash dividends paid…………………_____
g. Bank loan owed………………………_____
h. Cost of goods sold………………….._____
Answer:
Find the answers below
Explanation:
a. Sales ……………………………………. Budgeted Income Statement
b. Administrative salaries paid…..Budgeted Income Statement
c. Accumulated depreciation………._____ Budgeted Balance Sheet
d. Depreciation expense……………Budgeted Income Statement
e. Interest paid on bank loan….….Budgeted Income Statement
f. Cash dividends paid…………………Budgeted Income Statement
g. Bank loan owed………………………Budgeted Income Statement
h. Cost of goods sold.........Budgeted Balance Sheet
Silky Smooth has an EPS of $2.93 per share and a profit margin of 6.3 percent. If the Price to Sales ratio of the industry is 1.56 times, what is a good estimate for Solky Smooth's stock price
Answer:
$88.16
Explanation:
The computation of the estimation of the stock price is given below:
Net profit ÷ sales = 6.3%
And,
Net profit ÷ Number of shares = $2.93
So,
6.3% of sales ÷ Number of shares = $2.93
Sales ÷ Number of shares = 46.51
Now PS ratio is = Price ÷ sales
= 1.56 × 46.51
= $88.16
A corporation acquired a copyright by issuing 1,000 shares of $5 par common stock. At the time of the exchange, the stock was selling for $40 per share. The copyright had a carrying value of $18,000 to the author. The purchasing corporation should assign to the copyright a value of
Answer:
the purchasing corporation should assign to the copyright a value of $40,000
Explanation:
The computation of the copyright value is given below:
= Number of shares acquired for purchasing a copyright × selling stock per share
= 1,000 shares × $40
= $40,000
hence, the purchasing corporation should assign to the copyright a value of $40,000
Saving is a leakage in the sense that:______.
a. saving is lost to the economy and ultimately leads to stagnation.
b. it often accompanies a trade deficit.
c. consumers spend less than their total income.
d. the financial system often makes negative profits.
Answer:
The correct option is c. consumers spend less than their total income.
Explanation:
Saving is simply a portion of the total income that is not spent by the consumers on goods and services.
Saving is a non-consumption use of income which is leaked out of the circular flow of income and expenditure. Saving therefore makes the consumption lower than the total income.
Based on the explanation above, the correct option is c. consumers spend less than their total income.
83) Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies. a. What is the opportunity cost of producing an auto body for the United States
Answer:
Opportunity cost = 0.25 motor engine
Explanation:
Below is the given value:
In the U.S. ,Opportunity cost of 1 motor engine = 4 auto bodies
In the Canada, Opportunity cost 1 motor engine = 2 auto bodies
Below is the calculation for opportunity cost pf 1 auto body in the U.S.
Opportunity cost = Motor engine / Auto body
Opportunity cost = 1 / 4
Opportunity cost = 0.25 motor engine
Tomlinson Packaging Corporation began business in 2018 by issuing 30,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2019 balance sheet, Tomlinson Packaging would report:___________
a. Common Stock of $100,000
b. Paid-In Capital of $150,000
c. Common Stock of $200,000
d. Common Stock of $160,000
Answer:
d. common stock of $150,000.
Explanation:
First and foremost, upon issuance of stocks, the common stock account would be credited with the total par value of the shares issued as shown below:
total par value=par value per share*shares issued
total par value=$5*30,000
total par value=$150,000
The paid-in capital would be credited with the total amount the cash proceeds from the share issue exceeds the total par value
total cash proceeds=$8*30,000
total cash proceeds=$240,000
paid-in capital=$240,000-$150,000
paid-in capital=$90,000
The correct option is the common stock of $150,00, except that the number of shares issued is 20,000,hence, the common stock of $100,000 would be correct
Check a similar question below to drive home my point:
Kerwin Packaging Corporation began business in 2010 by issuing 30,000 shares of $5 par common stock for $8 per share and 10,000 shares of 6%, $10 par preferred stock for par. At year-end, the common stock had a market value of $10. On its December 31, 2011 balance sheet, Kerwin Packaging would report:
a. common stock of $300,000.
b. paid-in capital of $150,000.
c. common stock of $240,000.
d. common stock of $150,000.
Kamal made a scale drawing of a house. The scale of the drawing was 7 inches : 3 feet. A rug in the hallway is 6 feet long in real life. How long is the rug in the drawing?
Answer:
14 inches
Explanation:
Given that :
Scale drawing ; 7 inches = 3 feets ;
This means that 7 inches on the drawing equals 3 feets in real life
With this, we can calculate the length of scale drawing for 1 feet long object.
7 inches = 3 feets
x = 1 feet
Cross multiply :
3x = 7
x = 7/3 inches
Therefore, for a 6 feet long rug in real life, the length of drawing will be :
1 Feet = 7/3 inches
6 feets = (7/3 * 6) inches
(7/3 * 6) = 42 / 3 = 14 inches
Define Total Quality Management (TQM) and Lean Production.
Total Quality Management (TQM) is an on-going improvement management plan. Furthermore, TQM ensures that equipment is properly maintained and a recent type, and workers are well-trained. However, most companies who use Total Quality management also utilize other lean processes, not just TQM.
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $23,615,600, net operating income of $3,164,490, and average operating assets of $5,492,000. The company's minimum required rate of return is 19%.
Required:
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
Answer:
Gabbe Industries
a. Division's margin
= 13.40%
b. Division's turnover
= 4.3x
c. Division's return on investment (ROI)
= 57.62%
Explanation:
a) Data and Calculations:
Sales = $23,615,600
Net operating income = $3,164,490
Average operating assets = $5,492,000
Minimum required rate of return = 9%
a. Division's margin =Net operating income/Sales * 100
= $3,164,490/$23,615,600 * 100
= 13.40%
b. Division's turnover = Sales/Average operating assets
= $23,615,600/$5,492,000
= 4.3x
c. Division's return on investment (ROI) = Net operating income/Average operating assets
= $3,164,490/$5,492,000 * 100
= 57.62%
The cost to produce was $20 per unit in 2019. During 2020, it has increased to $23 per unit. In 2020, Supplier Company has offered to supply for $18 per unit. For the make-or-buy decision:_____.a. incremental costs are $2 per unit.
b. differential costs are $7 per unit.
c. net relevant costs are $2 per unit.
d. incremental revenues are $7 per unit.
Answer: Differential cost is $5 per unit
Explanation:
Differential cost is the extra cost that the company would incur if they made the product themselves versus if they bought it from an outside supplier.
Differential cost is therefore:
= Cost to produce internally - Cost from supplier
= 23 - 18
= $5
likely
1. The journal entry to recognize depreciation on machinery would include a debit to Factory Overhead. debit to Accumulated Depreciation. credit to Factory Overhead. None of these choices are correct. 2. The journal entry to record the transfer from work in process to finished goods would include a debit to Work in Process. Finished Goods. Cost of Goods Sold. None of these choices are correct.
Answer:
1. The journal entry to recognize depreciation on machinery would include
= None of these choices are correct.
2. The journal entry to record the transfer fro work in process to finished goods would include a debit to
= Finished Goods.
Explanation:
a) The correct journal entry is a debt to Depreciation on Machinery and a credit to Accumulated Depreciation on Machinery. However, when the Depreciation is being transferred to Work in Process, the debit goes to Work in Process with the credit going to the Depreciation on Machinery account.
b) The corresponding credit entry is a credit to Work in Process.
You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an IRR of 14.3 percent. Project B costs $4.1 million, has a required return of 16 percent, and an IRR of 15.6 percent. Which project(s) should be accepted
Answer:
Neither
Explanation:
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
The decision rule when using the internal rate of return is to undertake the project if the internal rate of return is greater than the required return of the project. If this is not met, the project should be rejected.
If choosing between multiple projects, the decision rule is to choose the projects with the highest internal rate of return. This is because that project would be the most profitable.
Neither of the project should be selected because the IRR of both projects is less than their required returns
g A monopoly is a market that has Group of answer choices Only one buyer. Only one seller. Many sellers who sell differentiated products. Many sellers who sell identical products.
Answer:
Only one seller.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.
For example, a public power supply company is an example of a monopoly because it serve as the only source of power supply to the general public in a society.
A public power company refers to a company that provides power (electricity) utility to the general public of a society.
In conclusion, a monopoly is a market that has only one seller.
roject A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year
Answer:
It will take 2.79 years to cover the initial investment.
Explanation:
Giving the following information:
Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years.
The payback period is the time required to cover the initial investment:
Year 1= 2,150 - 6,000= -3,850
Year 2= 2,150 - 3,850= -1,700
Year 3= 2,150 - 1,700= 450
To be more accurate:
(1700/2150)= 0.79
It will take 2.79 years to cover the initial investment.
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $96,000 and $40,000, respectively, prior to the revaluation.
a. Provide the journal entry for the asset revaluation.
b. Provide the journal entry for Ortiz’s admission under the following independent situations:
1. Ortiz purchased a 20% interest for $20,000.
2. Ortiz purchased a 30% interest for $60,000.
Answer: See attachment and explanation
Explanation:
1. Ortiz purchased a 20% interest for $20,000.
Total capital after the admission of the partner will be:
= ($96000 - $4000) + ($40000 - $4000) + $20000
= $92000 + $36000 + $20000
= $148000
The share of new partner in the capital structure will be:
= Total capital × Interest of new partner
= $148000 × 20%
= $29600
There'll be a deficiency in the profit which the existing partner contributes to and this will be:
= $29600 - $20000
= $9600
Then each partner shares =$9600/2 = $4800
2. Ortiz purchased a 30% interest for $60,000.
Total capital after the admission of the partner will be:
= ($96000 - $4000) + ($40000 - $4000) + $60000
= $92000 + $36000 + $60000
= $188000
The share of new partner in the capital structure will be:
= Total capital × Interest of new partner
= $188000 × 30%
= $56400
Since the share is less than the amount of $60000 bought in, the existing partner will be compensated in the amount of ($60000 - $56400) = $3600. Therefore each partner gets $3600/2 = $1800
Check attachment for the journal entries.
