Answer:
Disadvantages of a Line Organization
A line organization can suffer from a lack of specialization. This is because each department manager is concerned only with the activities of his own department. Therefore, employees are skilled in tasks pertaining to their departments alone.
These organizations can overburden a keyman or a few key-men to the extent of their breaking point. Also, in the absence of a staff aid, if a strong man seizes the organization, he can run it arbitrarily. Such arbitrary power can lead to a considerable damage to the organization.
Such organizations usually suffer from a lack of expert advice. If the line manager has trouble making a decision, there is no expert staff that he can turn to.
A line organization is usually rigid and inflexible. In fact, such organizations maintain discipline so rigorously that they can rarely change.
These organizations are based on the autocratic system of management.
The division of work is not based on any scientific plan but on the whims of the manager.
It might stop progress and prevent the unit to work effectively.
Such organizations might also encourage nepotism or favoritism based on relationship or friendship.
I hope this is helpful information.
Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $3.30 per unit. Enough capacity exists in the company’s plant to produce 30,200 units of the toy each month. Variable expenses to manufacture and sell one unit would be $2.08, and fixed expenses associated with the toy would total $54,766 per month. The company's Marketing Department predicts that demand for the new toy will exceed the 30,200 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed expense of $2,738 per month. Variable expenses in the rented facility would total $2.31 per unit, due to somewhat less efficient operations than in the main plant.
Required:
1. What is the monthly break-even point for the new toy in unit sales and dollar sales?
2. How many units must be sold each month to attain a target profit of $12,474 per month?
3. If the sales manager receives a bonus of 20 cents for each unit sold in excess of the break-even point, how many units must be sold each month to attain a target profit that equals a 29% return on the monthly investment in fixed expenses?
Answer:
1) Break-even point in unit sales: 51,680 units
Break-even point in dollar sales: $144,704
2) The units that must be sold each month to attain a target profit of $12,474 per month are:
= 63,669 units
3) The units that must be sold each month to attain a target profit that equals a 29% return on the monthly investment in fixed expenses are:
= 108,574 units
Explanation:
1. On the first 30,200 units
Sales price $3.30
Variable expenses $2.08
Contribution margin $1.22
Above 30,200 units
Sales price $3.30
Variable expenses $2.31
Contribution margin $0.99
Fixed cost for initial 30,200 units = $54,766
Less: Contribution Margin (30,200 units * $1.22) + $36,844
Remaining uncovered cost = $17,922 ($54,766 - $36,844)
Monthly rental for additional space = $2,738
Total fixed costs covered by remaining sales = $20,660 ($17,922 + $2,738)
Required units = $20,660 / 0.99 = 20,869 units
Breakeven units = 30,200 + 20,869= 51,069 units
51,069 * $3.3 = $168,528
2)
Working: $12,474 / 0.99 = 12,600 units
Thus total units = 51,069 + 12,600 = 63,669
3)
Working: Desired monthly expenses: $54,766 + $2,738 = 57,504
57,504 * 20% = 11,501
Unit contribution margin: 0.99 - 0.20 = 0.79
Contribution margin = Target profit / Unit contribution margin = 11,501 / 0.20 = 57,505 units
51,069 units + 57,505 units = 108,574 units
An increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events,a. the demand for tires decreases and the supply of tires increases.b. the demand for tires is unaffected and the supply of tires decreases.c. the demand for tires is unaffected and the supply of tires increases.d. None of the above is necessarily correct. What should be the demand and supply?
Answer:
d
the demand for tires is unaffected and effect on the supply of tires could increase, decrease, or stay the same.
Explanation:
An increase in the price of rubber would lead to an increase in the cost of producing tires. Rubber is an input required in the production of tires.
As a result of the increase in the cost of rubber, the supply of rubber would decrease. This would lead to a leftward shift of the supply curve. Equilibrium price would increase and quantity would decrease
As a result of the advance in technology, there would be an increase in the supply of tires. As a result, the supply curve shifts outward. Equilibrium price would decrease and quantity would increase
Taking these wo effects together, the demand for tires is unaffected and effect on the supply of tire is indeterminate
On January 1, 2019, Caswell Company signs a 10-year cancelable (at the option of either party) agreement to lease a storage building from Wake Company. The following information pertains to this lease agreement:
1. The agreement requires rental payments of $100,000 at the beginning of each year.
2. The cost and fair value of the building on January 1, 2019, is $2 million. The storage building has not been specialized for Caswell.
3. The building has an estimated economic life of 50 years, with no residual value. Caswell depreciates similar buildings according to the straight-line method.
4. The lease does not contain a renewable option clause. At the termination of the lease, the building reverts to the lessor.
5. Caswell’s incremental borrowing rate is 14% per year. Wake set the annual rental to ensure a 16% rate of return (the loss in service value anticipated for the term of the lease). Caswell knows the implicit interest rate.
6. Executory costs of $7,000 annually, related to taxes on the property, are paid by Caswell directly to the taxing authority on Dec. 31 of each year.
Required:
1. Determine what type of lease this is for the lessee.
2.
Prepare appropriate journal entries on the lessee’s books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019 and 2020.
Question not attempted.
PAGE 2019
GENERAL JOURNAL
Score: 0/113
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
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9
Points:
0 / 22
Record the payments and expenses related to this lease on December 31 for 2020.
Question not attempted.
PAGE 2020
GENERAL JOURNAL
Score: 0/88
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
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7
For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. (Note: If the characteristic describes neither, leave the entire row unchecked.)
Characteristic Perfectly Competitive Monopolistically Competitive
Sells a product differentiated from those of its competitors
Has marginal revenue less than price
Earns economic profit in the long run
Produces at the minimum average total cost in the long run
Equates marginal revenue and marginal cost
Charges a price above marginal cost
Answer:
Monopolistically Competitive
Monopolistically Competitive
Neither
Perfectly Competitive
both
Monopolistically Competitive
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero
If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero
in the long run, only normal profit is earned
In a monopolistic competitive market, firms always set the price higher than their marginal costs. As a result, the market cannot be productively efficient.
Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.
Month Cost(Y) Hours(H)
January $8,050 335
February $9,750 780
March $8,040 460
April $8,110 380
May $10,210 1,055
June $9,510 755
What is the estimated total cost at an operating level of 1,180 hours, using the high-low method? (Round variable cost per unit to 2 decimal places.)
Answer:
Results are below.
Explanation:
First, we need to calculate the variable and fixed costs:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (10,210 - 8,050) / (1,055 - 335)
Variable cost per unit= $3
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 10,210 - (3*1,055)
Fixed costs= $7,045
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 8,050 - (3*335)
Fixed costs= $7,045
Now, the total cost for 1,180 hours:
Total cost= 7,045 + 3*1,180
Total cost= $10,585
A firm's year-end price on its common stock is $55. The firm has a profit margin of 6 percent, total assets of $75 million, a total asset turnover ratio of 0.9, no preferred stock, and 2.5 million shares of common stock outstanding. Calculate the PE ratio for the firm.
Answer:
34
Explanation:
Price/Earning ratio (PE) = Price per Share ÷ Earnings per share
where,
Earnings per share = Net Income ÷ Number of Common Stock Outstanding
= (0.9 x $75 million x 0.06) ÷ 2.5 million shares
= 1.62
therefore,
Price/Earning ratio (PE) = $55 ÷ $1.62 = 33.95 or 34
You purchased two WXO 30 call option contracts at a quoted price of $.35. What is your net gain or loss on this investment if the price of WXO is $33.70 on the option expiration date
Answer: $670
Explanation:
Since the quoted price of $.35, the cost to purchase two WXO 30 call option will be: = $0.35 × 2 = $0.70
Then, the price of RADM 30 call option contract will be calculated as;
= $33.7 - $30
= $3.70
The net gain on one RADM 30 call option will then be:
= $3.70 - $0.35
= $3.35.
Therefore, the net gain on 2 RADM30 call options will be:
= $3.35 × 2
= $6.70
Since there are 100 shares in a option contract, the gain will be:
= $6.70 × 100
= $670
1. Inventory that consists of the costs of the direct and indirect materials that have not yet entered the manufacturing process is known as ________. work in process inventory materials inventory finished goods inventory None of these choices are correct.
Answer:
materials inventory
Explanation:
An inventory is a term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.
Basically, an inventory can be classified into three (3) main categories and these are; finished goods, work in progress, and raw materials.
An inventory is recorded as a current asset on the balance sheet because it's primarily the most important source of revenue for a business entity.
Generally, the three (3) main cost concept associated with an inventory include;
1. First In First Out (FIFO).
2. Last In First Out (LIFO).
3. Weighted average cost.
In Financial accounting, direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.
On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.
Materials inventory can be defined as an inventory that comprises of direct and indirect materials costs which have not been used in a manufacturing process.
Agan Interiors provides home and office decorating assistance to customers. In normal operation 2.5 customers arrive per hour. One design consultant answers problems. The consultant averages 10 minutes per customer. Arrivals follow a Poisson distribution and the service times are exponentially distributed.
Required:
a. Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times.
b. Service goals dictate that an arriving customer should not wait for service more than an average of 7 minutes. Is this goal being met? If not, what action do you recommend?
c. If the consultant can reduce the average time spent per customer to 9 minutes, what is the mean service rate?
Explanation:
we find the mean service rate at 10 minutes
= 60/10 = 6 min per hour
λ = 2.5
a.
1. we find the average number that are waiting in line
Lq = 2.5²/6(6-2.5)
= 6.25/21
= 0.2976
2. we find the average customers that are in this system
= 2.5²/6(6-2.5) + 2.5/6
= 0.2976 + 0.4167
L = 0.714266
approximately 0.7143
3. we have to determine the average time that a customers stays waitong
= Lq/λ
= 0.2976/2.5
= 0.11904 hours.
we convert this to minutes
= 0.11904 x 60
Wq = 7.1424 minutes
4. we find the average time that a customer is going to stay in the system
= 7.1424 + 60/6
w = 17.14 minutes
b. this goal is not being met here. This is because the service wait time is 7.14 minutes which is greater than 7 minutes. In order for them to meet this goal, they either have to hire other consultants or they have to raise their mean service rate.
c. mean would be =
60/9 = 6.67 per hour
Wq = 2.5/6.67(6.67-2.5)
= 2.5/27.814
= 0.0899 hour
= 0.0899*60
= 5.4 minutes
How much would you have had to invest now in an account paying 8% / year to to have $20,000 in 21 years
Answer:
PV= $3,978.115
Explanation:
Giving the following information:
Interest rate (i)= 8% = 0.08
Future value (FV)= $20,000
Number of periods (n)= 21 years
To calculate the lump-sum to be invested today, we need to use the following formula:
PV= FV / (1 + i)^n
PV= 20,000 / (1.08^21)
PV= $3,978.115
A set of procedures and approvals for verifying, approving and recording liabilities for eventual cash payment, and for issuing checks for payment only of verified, approved, and recorded liabilities is referred to as a(n):
Answer:
Voucher system.
Explanation:
voucher system can be regarded as methodused in authorizing when it comes to disbursement of cash. A voucher that will give identification of
amount, account number that is needed to pay on is been filled.
It should be noted that the A set of procedures and approvals for verifying, approving and recording liabilities for eventual cash payment, and for issuing checks for payment only of verified, approved, and recorded liabilities is referred to as Voucher system..
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.75, price is $4.75, marginal revenue is $3.00, and marginal cost is $3.50. This firm is operating
Answer:
loss at the short run
Explanation:
marginal cost is higher than the marginal revenue
Suppose the standard deviation for the Martin Products Distribution is 4.0. If an investor is hoping for a return of at least 13%, the chances that investing in Martin Products will return at least 13%
a. are much less than in investing in U.S.
b. are the same as investing in U.S.
c. are greater than in investing in U.S.
d. cannot be determined
Answer: C. are greater than in investing in U.S.
Explanation:
Based on more information that was gotten online regarding the question, the distribution of Martin product is more than that of the US Water.
Therefore, in a case whereby an investor is hoping for a return of at least 13%, the chances that investing in Martin Products will return at least 13% will then be greater than in investing in U.S.
The net profit margin ratio can mathematically be broken down as:______.
a. Tax impact x Capital structure impact x Net Profit / Sales
b. Tax impact x Capital structure impact x EBITDA / Sales
c. Tax impact x Capital structure impact x Gross Profit / Sales
d. Tax impact x Capital structure impact x EBIT / Sales
Answer:
d. Tax impact x Capital structure impact x EBIT / Sales
Explanation:
The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues
Also the capital structure is the combination of equity, preferred stock, debt.
So mainly it is broken into tax impact, capital structure impact and net profit margin ratio
Therefore the option d is correct
The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Corporation.
Ladonna Douglas Corporation
ADJUSTED TRIAL BALANCE
July 31, 20--
ACCOUNT TITLE DEBIT CREDIT
Cash 34,750.00
Accounts Receivable 9,750.00
Office Supplies 2,525.00
Store Supplies 4,785.00
Machinery 10,750.00
Accumulated Depreciation 2,150.00
Accounts Payable 14,300.00
Notes Payable 11,500.00
Common Stock 33,725.00
Retained Earnings 20,000.00
Dividends 13,250.00
Service Revenue 41,500.00
Wages Expense 37,425.00
Rent Expense 3,000.00
Advertising Expense 2,750.00
Office Supplies Expense 1,465.00
Store Supplies Expense 2,150.00
Depreciation Expense 575.00
Totals 123,175.00 123,175.00
Required:
Utilize these adjusted values to perform the closing entries for Ladonna Douglas Corporation.
Answer:
Jul-31
Dr Service revenue $41,500
Dr Retained earnings $5,865
Cr Wages expense $37,425
Cr Rent expense $3,000
Cr Advertising expense $2,750
Cr Office supplies expense $1,465
Cr Store supplies expense $2,150
Cr Depreciation expense $575
Jul-31
Dr Retained earnings $13,250
Cr Dividends $13,250
( To close dividends)
Explanation:
Preparation of the closing entries for Ladonna Douglas Corporation
First step is to prepare the income statement
INCOME STATEMENT
Revenues:
Service revenue $41,500
Less Expenses:
Wages expense $37,425
Rent expense $3,000
Advertising expense $2,750
Office supplies expense $1,465
Store supplies expense $2,150
Depreciation expense $575
Total expenses (-$47,365)
Net Loss ($5,865)
($41,500-$47,365)
Now let Prepare the closing entries
Jul-31
Dr Service revenue $41,500
Dr Retained earnings $5,865
Cr Wages expense $37,425
Cr Rent expense $3,000
Cr Advertising expense $2,750
Cr Office supplies expense $1,465
Cr Store supplies expense $2,150
Cr Depreciation expense $575
( To close income summary)
Jul-31
Dr Retained earnings $13,250
Cr Dividends $13,250
( To close dividends)
The current price of an annual coupon bond is 100. The derivative of the price of the bond with respect to the yield to maturity is -700.The yield to maturity is an annual effective rate of 8%. Calculate the duration of the bond.
Answer:
The duration of the bond = 7.56 years
Explanation:
Given the current price = 100
DM = -1 x Current derivative price / Current price
DM = (-1 x -$700 / $100)
DM = 7
Now, D = DM (1 + r)
D = 7 (1 + 0.08)
D = 7.56
The duration of the bond = 7.56 years
Which of the following does not dilute the value of collecting opinions from a number of people (e.g., regarding a performance evaluation or hiring decision)?
A. They have discussed the matter with each other.
B. They evaluated the same materials.
C. They have discussed the matter with the same people.
D. They have similar backgrounds.
Answer:
The correct answer is A:
They have discussed the matter with each other.
Explanation:
The objective of collecting opinions from a number of people with regard to a particular subject such as performance evaluation or a hiring decision is to ensure that via the consideration of heterogeneous perspectives, the best decision is arrived at.
The very nature of collecting opinions from people who are most likely to view the subject from different unique perspectives requires that the subject be discussed. Hence, Option A cannot be a diluting factor.
Cheers
Harley-Davidson is a leading manufacturer of heavy-weight motorcycles. For each of the following recent transactions, indicate whether net cash inflows (outflows) from operating activities, investing activities, or financing activities are affected and whether the effect is an inflow or outflow, or use No effect if the transaction has no effect on cash. (Hint: Determine the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.)
Answer:
Note See missing word as attached as picture below
1. Purchased raw materials inventory on account.
Indication: Cash flows from financing activities (No effect)
2. Prepaid rent for the following period.
Indication: Cash flows from operating activities (Outflow)
3. Purchased new equipment by signing a three-year note.
Indication: Cash flows from investing activities (No effect)
4. Recorded an adjusting entry for expiration of a prepaid expense.
Indication: Cash flows from operating activities (No effect)
5. Recorded and paid income taxes to the federal government.
Indication: Cash flows from operating activities (Outflow)
6. Purchased investment securities for cash.
Indication: Cash flows from investing activities (Outflow)
7. Issued common stock for cash.
Indication: Cash flows from financing activities (Inflow)
8. Collected payments on account from customers.
Indication: Cash flows from operating activities (Inflow)
9. Sold equipment for cash equal to its net book value.
Indication: Cash flows from investing activities (Inflow)
10. Issued long-term debt for cash.
Indication: Cash flows from financing activities (Inflow)
Warren Enterprises expects 20,000 unit sales, has ordering costs of $20 per order, carrying costs of $1.00 per unit, and desires to keep 100 units in safety stock. Assuming level production, what should be their average inventory? a. 200-300 b. 301-400 c. 401-500 d. 501-600
Answer:
Option d (501-600) is the correct answer.
Explanation:
Given:
Unit sales,
= 20,000
Ordering costs,
= $20
Carrying costs,
= $1
Safety stocks,
= 100
Now,
The EOQ will be:
= [tex]\sqrt{\frac{2\times Unit \ sales\times Ordering costs}{Carrying \ costs} }[/tex]
By putting the values, we get
= [tex]\sqrt{\frac{2\times 20000\times 20}{1} }[/tex]
= [tex]\sqrt{800000}[/tex]
= [tex]894.43 \ units[/tex]
hence,
The average inventory will be:
= [tex][Safety \ stock +(\frac{EOQ}{2} )][/tex]
= [tex][100+(\frac{894.43}{2} )][/tex]
= [tex][100+447.21][/tex]
= [tex]547.21[/tex] (lies between 501-600)
Thus the above is the correct response.
MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent meeting.
The teacher has offered to buy 1,000 copies of the CD at a price of $5 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost approximately $500. A summary of the information related to production of MSI’s current history program follows:
Direct materials $ 1.50
Direct labor 0.60
Variable manufacturing overhead 2.25
Fixed manufacturing overhead 2.00
Total cost per unit $ 6.35
Sales price per unit $ 12.00
Required:
1. Compute the incremental profit (or loss) from accepting the special order.
2. Should MSI accept the special order?
Yes
No
3. Suppose that the special order had been to purchase 1,000 copies of the program for $4.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario.
4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production of the history program. Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.)
Answer:
1. The incremental profit from accepting the special order is $150.
2. Yes, MSI should accept the special order. This is because it will increase profit by $150.
3. The incremental loss from accepting the special order is $350.
4. The special order price at which MSI would be indifferent between accepting or rejecting the special order is $12.50 per unit.
Explanation:
Note that only variable costs are relevant to making decision on a special order. That is, fixed cost is not relevant. Therefore, we have:
Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead = $1.50 + $0.60 + $2.25 = $4.35.
We then proceed as follows:
1. Compute the incremental profit (or loss) from accepting the special order.
Incremental profit (or loss) = ((Special order price per unit - Total variable cost per unit) * Units of special order) - Modification cost = (($5 - $4.35) * 1,000) - $500 = $150
Therefore, the incremental profit from accepting the special order is $150.
2. Should MSI accept the special order?
Yes, MSI should accept the special order. This is because it will increase profit by $150.
3. Suppose that the special order had been to purchase 1,000 copies of the program for $4.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario.
Incremental profit (or loss) = ((Special order price per unit - Total variable cost per unit) * Units of special order) - Modification cost = (($4.50 - $4.35) * 1,000) - $500 = ($350), or –$350
Therefore, the incremental loss from accepting the special order is $350.
4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production of the history program. Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order. (Round your answer to 2 decimal places.)
This can be calculated as follows:
Modification cost per unit = Modification cost / Units of special order = $500 / 1,000 = $0.50
Special order price = Regular price + Modification cost per unit = $12 + $0.50 = $12.50 per unit
Therefore, the special order price at which MSI would be indifferent between accepting or rejecting the special order is $12.50 per unit.
On January 2 Kelly company performed $800 worth of services for a client. The client paid $100 immediately, but promised to pay the balance next month. The journal entry to record this transaction in Calley company's books would include a _____ to the cash account; a _____ to the accounts receivable account and a _____ to the service revenue account.
Answer:
$100, $700, $800
Explanation:
Calley Journal entries would include:
Debiting $100 to the cash account
Debit the $700 to the receivables account
Credit $800 to the revenue account
This follows the double entry rule that a credit in one account must correspond to at least one debit in another account.
We debit all asset accounts(receivables,cash) when increased and credit all liabilities account when increased. We credit all income account(revenue) when increased and debit all expenses account when increased.
Answer:
Date Account Title Debit Credit
Jan, 2 Cash $100
Accounts Receivable $700
Service revenue $800
$100 will be debited to Cash to show that $100 was received. The rest of the bill will go to the Accounts Receivables to shows that it is still owed. Then finally the entire $800 will go to Service revenue to show that services were performed for a client up to $800 worth.
If you wanted to build a structure on a river bank, you should build the structure __________ to maximize its lifetime.
Answer:
Above the point bar
Explanation:
channelization
Straightened sections of the river channel are lined with concrete to increase the rate of flow and reduce bank collapse
Advantages of channelization
Improves rate of flow
Benefits transportation
Reduces bank collapse
A company had cash sales of $49,527, credit sales of $38,540, sales returns and allowances of $7,100 and sales discounts of $4,375. The company's net sales for this period equals what? (I added cash sales and credit sales. Then I subtracted sales returns and allowances and sales discounts. Not sure if my calculations are correct.) Please explain your answers.
Answer:
The company's net sales for this period equal to $76,592
Explanation:
First we need to calculate the total sales using the following formula
Total Sales = Cash Sales + Credit sales
Where
Cash Sales = $49,527
Credit sales = $38,540
Placing values in the formula
Total Sales = $49,527 + $38,540
Total Sales = $88,067
Now use the following formula to calculate the net sales
Net Sales = Total Sales - Sales returns and allowances - Sales discount
Where
Total Sales = $88,067
Sales returns and allowances = $7,100
Sales discount = $4,375
Placing values in the formula
Net Sales = $88,067 - $7,100 - $4,375
Net Sales = $76,592
The yield on a three-month T-bill is 3.29%, and the yield on a 10-year T-bond is 4.67%. the market risk premium is 6.17%. The Allen Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is
Answer:
10.35 %
Explanation:
Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is
Cost of Equity = 4.67% + 0.92 x 6.17%
= 10.35 %
employees benfit and service
Explanation:
Medicare and social security contributions. ...
Worker's compensation insurance. ...
Minimum wage and overtime pay. ...
Health insurance. ...
Medical and family leave. ...
Disability insurance. ...
Wellness programs. ...
Commuter benefits.
Making a Decision as Chief Financial Officer: Contingent Liabilities
For each of the following situations, determine whether the company should (a) report a liability on the balance sheet, (b) disclose a contingent liability, or (c) not report the situation. Justify and explain your conclusions.
1. An automobile company introduces a new car. Past experience demonstrates that lawsuits will be filed as soon as the new model is involved in any accident The company can be certain that at least one jury will award damages to people injured in an accident.
2. A research scientist determines that the company’s best-selling product may infringe on another company’s patent. If the other company discovers the infringement and suit, your company could lose millions.
3. As part of land development for a new housing project, your company has polluted lake. Under state law, you must clean up the lake once you complete development project will take five to eight years to complete. Current estimates indicate it will cost $2 to $3 million to clean up the lake.
4. Your Company has just been notified that it lost a product liability lawsuit for $1 million that it plans to appeal. Management is confident that the company will on appeal, but the lawyears belive that it will lose.
5. A key customer is unhappy with the quality of a major construction project. The company belives that the customer is being unreasonable but, to maintain goodwill, has decided to do $250,000 in next year.
Answer:
sry need points
Explanation:
The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave’s two options follows:
Rosa Umbrella Decorated Umbrella
Estimated demand 10,000 units 10,000 units
Estimated sales price $ 8.00 $ 19.00
Estimated manufacturing cost per unit
Direct materials $ 2.50 $ 5.50
Direct labor 1.50 4.00
Variable manufacturing overhead 0.50 2.50
Fixed manufacturing overhead 2.00 2.00
Unit manufacturing cost $ 6.50 $ 14.00
Additional development cost $ 10,000
Required:
1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations.
Rosa umbrella Decorated Umbrella Incremenral
sales revenue
variable cost
contribution margin
additional development cost
differential profit
2. Should Mohave add decorations to the Rosa umbrella?
Yes
No
3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations.
Rosa Umbrella Decorated Umbrella Incremental
sales revenue
variable cost
contribution marginal
additional development cost
differential profit
3-b. Should Mohave add decorations to the Rosa umbrella?
Yes
No
Solution :
1. Incremental analysis when the demand for the decorated umbrella is 10,000 units.
[tex]\text{Particulars}[/tex] [tex]\text{Rosa umbrella}[/tex] [tex]\text{Decorated umbrella}[/tex] [tex]\text{Incremental}[/tex]
[tex]\text{Sales revenue}[/tex] $80000 $190000 $110000
[tex]\text{Less: Variable cost}[/tex] $ 45000 $120000 $75000
Contribution $35000 $70000 $35000
[tex]\text{Less: Additional}[/tex] --- $10000 $10000
development cost.
[tex]\text{Differential profit}[/tex] $35000 $60000 $25000
The company earns an additional profit of [tex]\$25,000[/tex] if it decorates and sells the Rosa umbrella.
2. The company, Mohave should add the decorations to the Rosa umbrella as this would increase the net revenues of the company by an amount of $25,000.
3.a. The demand for he decorated umbrella will fall to 8,000 units due to the higher price. If the company does not make any changes to the Rosa umbrella, it could sell 10,000 units.
The incremental profit or loss is :
Incremental analysis when the demand for the Rosa umbrella is 10,000 units and for the decorated umbrella is 8,000 units is given below:
[tex]\text{Particulars}[/tex] [tex]\text{Rosa umbrella}[/tex] [tex]\text{Decorated umbrella}[/tex] [tex]\text{Incremental}[/tex]
[tex]\text{Sales revenue}[/tex] $80,000 $152,000 $72,000
[tex]\text{Less: Variable cost}[/tex] $45,000 $96,000 $51,000
Contribution $35,000 $56,000 $21,000
[tex]\text{Less: Additional}[/tex] ---- $10,000 $10,000
development cost.
[tex]\text{Differential profit}[/tex] $35,000 $46,000 $11,000
The incremental profits are : $11,000.
3.b. The company should decorate and sell 8000 units of the decorated umbrellas as the increase in the net profit is $11,000.
Changes in financial reporting methods unquestionably will alter the resulting measures of financial positions reported in financial statements.
a. True
b. False
Answer:
a
Explanation:
________duties are tailored at the request of the Program Manager (PM) and are written in the Memorandum of Agreement, signed by both the PM and the Contract Administration Office (CAO) Commander (Please note the CAO Commander was previously referred to as the Contract Management Office (CMO) Commander).
a. Program Support Team
b. Administrative Contracting Officer
c. Program Integrator
d. Procuring Contracting Officer
Answer:
b. Administrative Contracting Officer
Explanation:
The officer who is given the responsibility of administering the U.S. government contracts in the Contract Administration Office is called the Administrative Contracting Officer (ACO). For the U.S. military, this office is led by the Contract Administration Office (CAO) Commander. The ACO in the CAO is just one of the officers under the CAO Commander, and she can negotiate contracts on behalf of the U.S. government.
Mustang Corporation reports the following for the month of April:Finished goods inventory, April 1$32,600 Finished goods inventory, April 30 26,600 Total cost of goods manufactured 123,800The cost of goods sold for April is:a. $61,900.b. $124,500.c. $112,900.d. $173,700.e. $150,000
Answer:
COGS= $129,800
Explanation:
Giving the following information:
Finished goods inventory, April 1$32,600
Finished goods inventory, April 30 26,600
Total cost of goods manufactured 123,800
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 32,600 + 123,800 - 26,600
COGS= $129,800