Answer:
A. SUTA = $929.07
FUTA = $103.23
B. SUTA = $204.93
FUTA = $22.77
Explanation:
A. First Quarter
52 weeks in a year.
Quarterly therefore there are,
= 52/4
= 13 weeks in a quarter.
In a quarter the employees makes the following,
Larry
= 355 * 13
= $4,615
Curly
= 430 * 13
= $5,590
Moe
= 560 * 13
= $7,280
SUTA Taxes are on first $7,000 so Moe will not pay full 5.4%.
SUTA Taxes
Larry
= 4,615 * 5.4%
= $249.21
Curly
= 5,590 * 5.4%
= $301.86
Moe
= 7,000 * 5.4%
= $378
In total for SUTA,
= 249.21 + 301.86 + 378
= $929.07
For FUTA
Tax is 6% - SUTA so,
= 6% - 5.4%
= 0.6%
Larry
= 4,615 * 0.6%
= $27.69
Curly
= 5,590 * 0.6%
= $33.54
Moe
= 7,000 * 0.6%
= $42
In total for FUTA,
= 27.69 + 33.54 + 42
= $103.23
B. Second Quarter.
Here bear in mind that Moe no longer has to be paid for as he has earned $7,000 in the first quarter.
This leaves just Larry and Curly who have already earned something in the first quarter which should be removed from $7,000 to find out how much they are to pay taxes on.
SUTA Taxes
First $7,000.
Larry has already been paid 4,615 leaving,
= 7,000 - 4,615
= $2,385 is the figure that SUTA and FUTA should be based on.
For Curly
= 7,000 - 5,590
= $1,410 is the figure that SUTA and FUTA should be based on.
Larry SUTA
= 2,385 * 5.4%
= $128.79
Curly SUTA
= 1,410 * 5.4%
= 76.14
Total for SUTA is,
= 128.79 + 76.14
= $204.93
Then FUTA using the same figures.
Larry FUTA
= 2,385 * 0.6%
= $14.31
Curly SUTA
= 1,410 * 0.6%
= $8.46
Total for FUTA is,
= 14.31 + 8.46
= $22.77
what form of business ownership would you recommend to Alison and why?
Business Case-Alison's coffee shop
Answer:
Sole ownership will be the best for the coffees business
Explanation:
This is because opening a coffee shop comes with the individual usually having a very great deal of passion for it. The recipes for the coffee would also be best suited to a person who prepares it in his/her unique way.
The coffee shops mostly comes with a reasonably average degree of profitability and lower risks due to a low degree of wastage or spoilage and it being very easy to make so it’s best owned by a single person to cut cost and avoid profit sharing .
Dalrymple Bay Coal Terminal, a coal-handling facility and export terminal in Queensland, Australia, has issued triple-A rated bonds for $680 million in Australian dollars. The bonds will be used to refinance existing bank debt caused by the acquisition of eases from the Queensland government in 2002. The Commonwealth Bank of Australia acted as investment bankers to the transaction.
Required:
1. This means the Commonwealth Bank of Australia __________.
Group of answer choices:
A. Engaged in factoring the sale
B. Bought the bonds from Dalrymple and sold them to the public
C. Operates in the secondary securities market
D. Was responsible for co-insurance of the bond premium
E. Would be responsible for paying the dividend if Dalrymple were unable to
Answer:
B. Bought the bonds from Dalrymple and sold them to the public
Explanation:
As the Investment Bankers for the event, The Commonwealth Bank of Australia were underwriters to the issue.
One of the methods of Underwriting that Investment bankers embark on is called the FIRM COMMITMENT Principle which states that the Investment bank will.buy all the bonds or shares and then resell them. If they are unable to resell them however, the remaining bonds or stock is their problem.
Read the following scenario to answer the questions in below.
As the book-keeper for your company you are required to create quarterly financial statements (Income Statement, Statement of Owner's Equity Balance Sheet and Statement of Cash Flows) in order to report on the financial activities of the company for the quarter (three months).
It is now March 29th, and in preparation for creating the 1st quarter's financial statements (as of 3/31), you have called a meeting with the Dept. Managers for Accounts Receivable and Accounts Payable to confirm deadlines that have to be met for recording March-related transactions. As the meeting starts the owner walks in - she sits quietly as you explain the deadlines, but as soon as you have finished she says "Well, for this quarter, if we have not paid March invoices by March 31, there is no need to record them in March. We can record/expense those invoices when we pay them in April or May."
Questions:
1. Do you agree with the owner, or, do you feel that an adjusting entry is necessary in the situation described? If so - which type of adjusting entry is needed?
2. Discuss the impact (understated or overstated) on the accounts affected if the adjustment is not made and explain how the adjustment affects the appropriate financial statements
Answer:
1. I do not agree with the owner that expenses not paid for in March should not be accrued in March but recorded in April or May when actual payment is made. Such practise violates the accrual concept and matching principle of accounting. They require expenses to be matched to the period's income.
The adjusting entry needed to record the expenses is accrual adjustment, which requires the expense account to be debited and the expense payable account credited as a liability (unpaid financail obligation).
2. If the adjustment is not made, the particular expense account will be understated. This will also result in the overstatement of the net income.
The adjustment affects the Income Statement and the Balance Sheet. The income statement is affected because it is there that expenses are deducted from the gross profit to arrive at income before tax. The carryover effect is that the Retained Earnings, which adjust the net income after tax is also overstated.
Explanation:
Adjusting entries are journal entries used to recognize income or expenses that occurred but are not accurately displayed in the records. Adjusting journal entries are created at the end of an accounting period to balance debits and credits and match expenses to the income for the period in accordance with the accrual concept and matching principle of generally accepted accounting principles.
Suppose Cook Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $ 22. Cook Plus projects sales of 650 10-inch skillets per month. The production costs are $ 11 per skillet for direct materials, $ 4 per skillet for direct labor, and $ 6 per skillet for manufacturing overhead. Cook Plus has 75 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 40% of the next month's sales. Selling and administrative expenses for this product line are $ 1,200 per month. Cook Plus has budgeted cost of goods sold of $ 13,650 for July.
Required:
1. How many 10-inch skillets should Chef Plus produce in July?
Answer:
Production budget = 835
Explanation:
The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.
Production = Sales budget + closing inventory - opening inventory
Inventory at the end of July = 40%×650= 260
Opening inventory = 75
Sales budget = 650
Production budget = 650+ 260 - 75= 835
Production budget = 835
Match each form of unemployment with an example. Note that every item may not have a match.
a. cyclical unemployment
b. structural unemployment
c. frictional unemployment
1. An unemployed paper mill worker. The local paper mill shut down due to lack of demand for paper products in a digital age.
2. An unemployed banker during a recession. The banker would be hired back once the economy began growing normally again.
3. A retiree. After a successful career in real estate, she now lives off her retirement savings and Social Security.
4. An unemployed stockbroker who is willingly taking some time off before looking for a new job.
5. An unemployed cashier. A small clothing store shut down due to its customers buying clothes from a new big-box retailer.
Answer:
1. Structural unemployment
2. Cyclical Unemployment
3. No match
4. Frictional unemployment
5. No match.
Explanation:
a. Cyclical Unemployment can be described as an unemployment that occurs when there is a low demand for goods and services in a country as a result of slow economic growth or recession.
b. Structural unemployment is an unemployment that occurs because of industrial reorganization coming from technological change that makes current skills of workers obsolete.
c. Frictional unemployment is unemployment that occurs when people are in the process of searching a new job and changing from one job to another.
Based on the above definition, we have:
1. Structural unemployment
2. Cyclical Unemployment
3. No match
4. Frictional unemployment
5. No match.
Answer: No 1, cyclicnal unemployment
2, Cyclical Unemployment
a, Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. It occurs during periods of slow economic growth or during periods of economic contraction. This can be match to 1 and 2
b, 3and 4.
Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transferring from one job to another.
C. 5,
Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many workers obsolete.
Explanation:
Unemployment is a term referring to individuals who are employable and seeking a job but are unable to find a job.
Usually measured by the unemployment rate, which is dividing the number of unemployed people by the total number of people in the workforce, unemployment serves as one of the indicators.
Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has an estimated useful life of ten years, and an estimated salvage value of $14,000. The machine will increase the company's net income by approximately $9,600 per year. All revenue and expenses other than depreciation will be received and paid in cash.
Required:
1. The expected rate of return on average investment of the machine is ____________.
a. 10.0%
b. 48.0%
c. 17.0%
d. 18.6%
Answer:
Option D is correct
Expected rate of return = 18.6%
Explanation:
The expected rate of return is the proportion of average investment that is earned as income . It is calculated as follows:
Rate of return on investment = average return / Average investment
Average investment = (Initial cost + salvage value)/ 2
Average investment = 89,000 +14,000/ 2= 51500
Net income = $9,600
Expected rate of return = 9,600/51,500× 100
= 18.6%
When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon for $5.95.
Refer to the scenario Since, with the use of Richardson's book, most people dan win arcade games and carry home as many stuffed animals as their arms can hold, what would carnival operators hope for?
a. a slow diffusion of the book
b. the book's purchase and promotion
c. a rapid diffusion of the book
d. intensive distribution and promotion
Answer:
Option A, slow diffusion of the book.
Explanation:
The book contains the secret or tricks to win the game so as many as people will get the book the population of people who can win the game will increase. However, the winning of people in the game is the loss of a carnival operator because he has to give more winning amount. Therefore, the book will increase the winning probability of people so carnival operators will hope its slow diffusion so that people do not get to know the winning techniques.
Mixed Costs and Cost Formula Callie's Gym is a complete fitness center. Owner Callie Ducain employs various fitness trainers who are expected to staff the front desk and to teach fitness classes. While on the front desk, trainers answer the phone, handle walk-ins and show them around the gym, answer member questions about the weight machines, and do light cleaning (wiping down the equipment, vacuuming the floor). The trainers also teach fitness classes (e.g., pilates, spinning, body pump) according to their own interest and training level. The cost of the fitness trainers is $600 per month and $20 per class taught. Last month, 100 classes were taught. Required: 1. Develop a cost equation for total cost of labor. Total labor cost = $ + $ per class taught 2. What was total variable labor cost last month? $ 3. What was total labor cost last month? $ 4. What was the unit cost of labor (per class) for last month? $ per class 5. What if Callie increased the number of classes offered by 50 percent? a. What would be the total labor cost? $ b. The unit labor cost? $ c. Explain why the unit labor cost d
Answer:
1 = $600 + $20 × X
2. = $2000
3 = $2,600
4 = $26 per class
5 = a = $3,600
b = $24
c = the cost per unit has reduced from $26 to $24.
Explanation:
According to the scenario, computation of the given data are as follow:-
We assume no. of units = X
1.Total Labor Cost =Total Fixed Cost + (Variable Cost Per Unit × No. of Units)
= $600 + $20 × X
2. Last month 100 classes were taught.
Total Variable Cost = No. of Classes Taught × Variable Cost Per Class
= 100 × $20 = $2000
3. When 100 classes were taught, total labor cost is-
Total Labor Cost = Total Fixed Cost + (No. of Units × Variable Cost Per Units)
= $600 + 100 × $20
= $600 + $2,000
= $2,600
4. Per Classes Unit Cost of Labor =Total Labor Cost ÷ No. of Classes Taught
= $2,600 ÷ 100
= $26 per class
5. If the No. of taught classes increase by 50% then the no. of classes is offered = 100 + (100 × 50 ÷ 100) = 150
a). Total Labor Cost if the no. of classes taught are 150
Total Labor Cost = Total Fixed Cost + (No. of Units × Variable Cost Per Units)
= $600 + 150 × $20
= $600 + $3,000
= $3,600
b). Per Classes Unit Cost of Labor = Total Labor Cost ÷ No. of Classes Taught
= $3,600 ÷ 150
= $24
c). After the change in the level of the activity variable cost per unit and fixed cost per unit remain same. So if there is an increase in the taught classes then the cost per unit has reduced from $26 to $24.
Property Rights and Corruption When looking at a country as a market or investment, the international business must consider the country's legal system. In that assessment, the firm needs to understand the differences between private actions, which refer to theft, piracy, blackmail, and the like from individuals or groups, and public actions, which are those actions taken by politicians and government bureaucrats. Either kind of action would pose a serious threat to the firm's investment or operations. Before the firm can seek legal remedies, it must clearly understand the options open to it.
In a legal sense, property refers to a resource over which an individual or a business holds a legal title. It is a resource that it owns. Countries differ in the extent to which their legal systems define and protect property rights, even those countries that are still nominally communist states. Property rights can be violated, sometimes by governments and sometimes by individuals or groups.
1. Pleae select that whether below items are the Private Action or Public Action?
a. legal mechanisms
b. theft or blackmail
c. organized crime/ protection money
d. bribery
e. weak legal system
f. corruption
Options:
O Private Action
O Public Action
Answer:
Property Rights and Corruption
Private Action or Public Action:
a. legal mechanisms = Public Action
b. theft or blackmail = Private Action
c. organized crime/ protection money = Private Action
d. bribery = Private Action
e. weak legal system = Public Action
f. corruption = Private Action
Explanation:
Eclectic Paradigm is a three-tiered evaluation process which a company that plans to go international must follow in determining whether it would profit the company better limiting its operations to the domestic market or extending its operations to the international market.
The eclectic paradigm is called the OLI model or framework. It examines the Ownership Rights, Locational Advantages, and Internalization Factors. This helps the company to make decisions that are beneficial to it.
Property rights and corruption are aspects of the Ownership Rights that must be considered. Failure to put these factors into consideration may expose the company to risks and uncertainties and greatly reduce the ability of the company to increase economic benefits arising from transactions.
Suppose that JVC is trying to decide how to price a new stereo system composed of a receiver, CD player, and speakers. The company's economists have estimated that two different groups will purchase these products: students and club owners. The economists analysis suggests that the total market for its brand of stereos consists of 10,000 students and 50,000 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows:
Group Receiver CD Player Speakers
Students $250 $150 $100
Club owners $200 $75 $250
Required:
a) Suppose that JVC markets the receiver, CD player, and speakers are sold separately and together. What prices should JVC charge to maximize revenues?
The revenues table is:
[tex]\text{Receivers} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 200\\\\\text{CD player}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 75\\\\\text{Speaker} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 250\\\\\text{Combined ( bundling )} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500[/tex]
Calculating the pricing JVC will charge in order to increase revenues:Calculating the separate price for the receiver:
when
[tex]P = 250[/tex] only for the students to buy
[tex]\to TR = 250 \times 10,000 = 2,500,000[/tex]
[tex]P = 200[/tex], both types will buy
[tex]\to TR = 200 \times (60,000) = 12,000,000[/tex]
Therefore, the higher [tex]TR[/tex], with [tex]P = 200[/tex], and the charge [tex]P = 200[/tex], for Receiver:
Calculating the value of CD player:
[tex]If \ P = 150,\ \ TR = 150\times 10,000 = 1,500,000 \\\\If \ P = 75, \ \ TR = 75 \times (60,000) = 4,500,000[/tex]
Therefore, the higher [tex]TR[/tex], with [tex]P = 75[/tex],
Speakers,
if[tex]P = 100[/tex] , both types buy
[tex]\to TR = 100 \times (60,000) = 6,000,000[/tex]
If [tex]P = 250[/tex], only club owners buy
[tex]\to TR = 250 \times 50,000 = 12,500,000[/tex]
So higher [tex]TR[/tex] with [tex]P = 250[/tex]
Now combined Willingness to pay
For students, [tex]250+150+100 = 500[/tex]
For club owners, [tex]200+75+250 = 525[/tex]
So if [tex]P = 500[/tex], both types buy
[tex]\to TR = 500 \times 60,000 = 30,000,000[/tex]
if [tex]P = 525[/tex], only club owners buy, then
[tex]\to TR = 525 \times 50,000 = 26,250,000[/tex]
so higher [tex]TR[/tex] with [tex]P = 500[/tex]
Therefore, the calculated table values are:
[tex]\text{Receivers} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 200\\\\\text{CD player}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 75\\\\\text{Speaker} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 250\\\\\text{Combined ( bundling )} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500[/tex]
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Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $45,000 for the period. The pension plan requires a contribution to the plan administrator equal to 7% of employee salaries. Salaries were $400,000 during the period. Required: Provide the journal entries for (a) the vacation pay and (b) the pension benefit. Refer to the Chart of Accounts for exact wording of account titles.
Answer and Explanation:
The journal entries are shown below:
a. Vacation and Holidays expenses Dr. $45,000
To vacation and Holidays payable $45,000
(Being the Vacation pay is recorded)
For recording this we debited the vacation and holidays expense as it increase the expenses and credited the vacation & holidays payable as it also increase the liabilities
b. Pension Expense Dr. $28,000 ($400,000 × 7%)
To Pension Liability $28,000
(Being the pension benefit is recorded)
For recording this we debited the pension expense as it increase the expenses and credited the pension liability as it also increase the liabilities
Denton Company manufactures and sells a single product. Cost data for the product are given below:
Variable costs per unit:
Direct materials $5
Direct labor 11
Variable manufacturing overhead 3
Variable selling and administrative 1
Total variable cost per unit $20
Fixed costs per month:
Fixed manufacturing overhead $120,000
Fixed selling and administrative 169,000
Total fixed cost per month $289,000
The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, are as follows:
Units Produced Units Sold
July 27,000 23,000
August 27,000 31,000
The companyâs Accounting Department has prepared absorption costing income statements for July and August as presented below:
July August
Sales $1,196,000 $1,612,000
Cost of goods sold 483,000 651,000
Gross margin 713,000 961,000
Selling and administrative expenses 241,000 265,000
Net operating income $472,000 $696,000
Required:
1. Determine the unit product cost under absorption costing and variable costing.
2. Prepare contribution format variable costing income statements for July and August.
3. Reconcile the variable costing and absorption costing net operating income.
Answer:
1. The unit product cost under absorption costing and variable costing.
Product Cost : Absorption Costing = $23,44
Product Cost : Variable Costing = $19.00
2. Contribution format variable costing income statements for July and August.
July August
Sales 1,196,000 1,612,000
Less Cost of Sales : (437,000) (513,000)
Opening Stock 0 76,000
Add Production 513,000 513,000
Less Closing Stock (76,000) (76,000)
Contribution 759,000 1,099,000
Less Expenses :
Selling and administrative expenses
Variable : (23,000) (21,000)
Fixed : (169,000) (169,000)
Net operating income 567,000 909,000
3. Reconcile the variable costing and absorption costing net operating income
July August
Absorption costing net operating income $584,760 $891,240
Add Fixed Costs in Opening Inventory $17,760
Less Fixed Costs in Closing Inventory ($17,760)
Variable costing net operating income $567,000 $909,000
Explanation:
Product Cost : Absorption Costing = All Manufacturing Costs (Fixed and Variable)
= $5+$11+$3+($120,000/27,000)
= $5+$11+$3+$4.44
= $23,44
Product Cost : Variable Costing = Variable Manufacturing Costs
= $5+$11+$3
= $19.00
Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates:
Activity Cost Pool Activity Rate
Supporting direct labor $26 per direct labor-hour
Order processing $284 per order
Custom designing processing $186 per custom design
Customer service $379 per customer
Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:
Standard Model Design Custom Model
Number of gliders 20 3
Number of orders 1 3
Number of custom designs 0 3
Direct labor-hours per glider 26.35 28.00
Selling price per glider $1,850 $2,400
Direct materials cost per glider $564 634
The company's direct labor rate is $19.50 per hour.
Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters.
Answer:
$1,144
Explanation:
According to the scenario, computation of the given data are as follow:-
Particular Amount ($)
Sales 44,200
Less-Direct material cost of grinder 13,182
Less-Direct labor cost 11,915
Less-Supporting direct labor 15,886
Less- Order processing 1,136
Less-customer service 379
Less- Custom designing 558
Margin of customer of big sky outfitters 1,144
Working notes
1 . Sales = Selling Price Per Grinder × No. of Grinder
= $1,850 × 20 + $2,400 × 3
= $37,000 + $7,200
= $44,200
Direct Material Cost of Grinder = Selling Price Per Grinder × No. of Grinder
= $564 × 20 + $634 × 3
= $11,280 + $1,902
= $13,182
Direct Labor Cost = No. of Grinder × Direct Labor Hour - Per Grinder × Direct Labor Rate
= 20 × 26.35 × $19.50 + 3 × 28 × $19.50
= $10,276.5 + $1,638
= $11,914.5
Supporting Direct Labor = No. of Grinder × Direct Labor Hour-Per Grinder × Supporting Direct Labor Per Direct Labor-Hour
=20 × 26.35 × $26 + 3 × 28 × $26
= $13,702 + $2,184
= $15,886
Order Processing = Total No. of Order × Order Processing Per Order
= ( 1+3) × $284
= 4 × $284
= $1,136
Custom Designing = Total No. of Custom Designing × Price Per Custom Designing
=(0+3) × $186
= $558
The customer margin is $1,144
Computation for the customer margin of Big Sky Outfitters Using the company's activity-based costing.
Revenue $44,200
[($1,850×20)+($2,400×3)
Costs:
Direct materials $13,182
[($564×20)+($634×3)]
Direct labor $11,915
[(26.35×20×19.5)+(28×3×19.5)]
Supporting Direct labor $15,886
[(26.35×20×26)+(28×3×26)]
Order processing $1,136
[(1×284)+(3×284)]
Custom design processing $558
(3×186)
Customer service $379
Total costs $43,056
Customer margin $1,144
($44,200-$43,056)
Inconclusion the customer margin is $1,144.
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Ying pays $300 of investment interest related to her investments. The interest is not directly related to any particular investment owned by Ying. She owns $40,000 worth of municipal bonds that pay her $2,400 in interest and $20,000 worth of bonds that pay her taxable interest of $2,000. Ying allocates the investment fees based on the fair market value of the securities. The allocation between the nondeductible portion of the fee and the deductible portion is:
Answer:
yeet
Explanation:
Which of the following is an example of cannibalization?
A. A toothpaste manufacturer adds a new line of toothpaste (that contains baking soda) to its product line.
B. A basketball manufacturer adds basketball hoops to its product line.
C. A convenience store begins selling preminuspaid cell phones.
D. A grocery store begins selling Tminusshirts featuring the local university's mascot.
Answer:
A. A toothpaste manufacturer adds a new line of toothpaste (that contains baking soda) to its product line.
Explanation:
Market cannibalization is explained to be a loss in sales caused by a company's introduction of a new product that displaces one of its own older products.
Introduction of a new toothpaste containing baking soda is a perfect example, because it will reduce or alter sales in the other brand units.
The cannibalization of existing products leads to no increase in the company's market share despite sales growth for the new product. Market cannibalization can occur when a new product is similar to an existing product, and both share the same customer base. Cannibalization can also occur when a chain store or fast food outlet lose customers due to another store of the same brand opening nearby.
You manage a department of five employees. You have identified that Ashley has a high need for achievement, Mary has a high need for power, and Keith has a high need for affiliation. Sarah scored high on the need for power and low on the need for affiliation. Doug scored low on both need for power and need for affiliation.
1. Which of these five employees is most likely to be suitable for a new assignment that involves a high degree of personal responsibility and feedback?
A) Mary
B) Ashley
C) Keith
D) Sarah
E) Doug
2. Which of these five employees is most suitable for handling your responsibilities when you are on a vacation?
A) Ashley
B) Mary
C) Keith
D) Sarah
E) Doug
Answer: 1. B. Ashley
2. D. Sarah
Explanation:
1. When selecting someone fkr an assignment that involves a high degree of personal responsibility and feedback, it is important that their drive to accomplish the mission is gauged. They must be the type of people that will want to get the job done.
Ashley scored high on Achievement making her the best for this role because she will strive hard to accomplish the task because she loves achieving set targets.
2. Sarah scored high on power but low on affiliation. This means that she a high need to control others and yet a low need to have overly friendly relationship with others. This will help her manage the company well because she yarns to control people and at the same time will be impartial due to her low need for affiliation.
Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. If he orders in batches of 500 boxes at a time, what is his annual holding cost
Answer:
$3,750
Explanation:
The computation of the annual holding cost is shown below:
= Economic order quantity ÷ 2 × holding cost per box per year
where,
Economic order quantity = 500 boxes
And, the holding cost per box per year is $15
Now putting the values to the above formula
The annual holding cost is
= 500 boxes ÷ 2 × $15 per box per year
= 250 boxes × $15 per box per year
= $3,750
Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$2,076,800 budget, $2,240,000 actual; variable costs—$1,002,000 budget, $1,054,100 actual; and controllable fixed costs—$298,600 budget, $303,800 actual.
Prepare a responsibility report for the Water Division for the year ending December 31, 2020.
Answer and Explanation:
The Preparation of responsibility report is shown below:-
Responsibility report
Torres Company
For the year ended December 31, 2020
Particulars Budgeted Actual Difference
Sales a $2,076,800 $2,240,000 $163,200 Favorable
Variable costs b $1,002,000 $1,054,100 $52,100 Unfavorable
Contribution
margin $1,074,800 $1,185,900 $111,100 Favorable
c = a - b
Controllable
fixed costs d $298,600 $303,800 $5,200 Unfavorable
Controllable
margin $776,200 $882,100 $105,900 Favorable
e = c - d
Therefore if budgeted is higher than actual then it will become Favorable and if actual is higher than budgeted than it will become Unfavorable.
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce.
Refer to Scenario 13-3. Ziva's economic profit from farming equals _______.
Answer:
Economic profit= -$80
Explanation:
Giving the following information:
Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce.
The economic profit includes the opportunity cost of not working as a home-organization.
Economic profit= (300 - 130) - 25*10
Economic profit= -80
You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customers:
Price (Dollars) Adults (Tickets) Children (Tickets)
20 0 0
18 25 0
16 50 0
14 100 0
12 150 0
10 200 0
8 300 25
6 300 50
4 300 100
2 300 150
0 300 200
To maximize profit, you would charge _____ (number) for an adult's ticket and _____ (number) for a child?s ticket. Total profit in this case would be _____ (number).
The city council passes a law prohibiting you from charging different prices to different customers.
Now you set a price of _____(number) for all tickets, resulting in _____(number) in profit.
Indicate whether each of the following groups of people is better off, worse off, or the same because of the law prohibiting price discrimination.
Groups of People Better Off Worse Off Unchanged
Adults
Children
You, the Producer
Suppose the fixed cost of the play were $2,600 rather than $2,000.
Complete the following sentences indicating how this would change your answers to the previous parts.
In the presence of price discrimination, the adult price of a ticket would _____ (increase, decrease, remain the same), and the child price would _____ (increase, decrease, remain the same). Total profit would _____ (rise, fall) to (number).
If price discrimination were banned and the monopolist continued to produce the play no matter what the profit, the price of a ticket would _____ (increase, decrease, remain the same), and total profit would _____ (rise, fall) to _____ (number).
Answer:
Explanation:
To maximize profit, you would charge $8 for an adult's ticket and $4 for a child?s ticket. Total profit in this case would be $800.
The city council passes a law prohibiting you from charging different prices to different customers.
Now you set a price of $8 for all tickets, resulting in $600 in profit.
Indicate whether each of the following groups of people is better off, worse off, or the same because of the law prohibiting price discrimination.
Groups of People Better Off Worse Off Unchanged
Adults x
Children x
You, the Producer x
Suppose the fixed cost of the play were $2,600 rather than $2,000.
Complete the following sentences indicating how this would change your answers to the previous parts.
In the presence of price discrimination, the adult price of a ticket would remain the same, and the child price would remain the same. Total profit would fall to $200.
If price discrimination were banned and the monopolist continued to produce the play no matter what the profit, the price of a ticket would remain the same, and total profit would fall to $0.
Assume you had determined that John Firestone, vice president of Pierce Chemicals, was a prospect for your paper and metal containers. You call Mr. Firestone to see if he can see you this week. When his secretary answers the telephone, you say, "May I speak to Mr. Firestone, please?" and she says, "What is it you wish to talk to him about?"
a) How would you answer her question?
b) What would you say if you were told, "I’m sorry, but Mr. Firestone is too busy to talk with you"?
Answer: Please refer to Explanation.
Explanation:
1. Honesty.
State the purpose of your call to the secretary and sell your product. For instance, " Hello, my name is Mr. Petal and I represent a fast rising Paper and Metal Container company. After researching about your company, I felt it most expedient to get in touch with Mr. Firestone as I believe this is business he will be interested in. We offer perks that are unmatched in the industry".
2. Persistence.
You can be persistent on the phone if you detect deceit in the secretary's tone.
For instance,
" Having been in the chemical industry myself, I know such an opportunity does not come often and I really do guarantee that we give the best benefits in the industry. If you can, just let me talk to Mr. Firestone, I promise that neither of you will regret it".
If it still doesn't work, ask for a convenient time you can call back.
Truck drivers for a hauling company, while loading a desk, found a $100 bill that had fallen out of the desk. They agreed to get it exchanged for small bills and divide the proceeds. En route to the bank, one of them changed his mind and refused to proceed with the scheme, whereupon the other pulled a knife and demanded the bill. A police officer intervened. What crimes have been committed?
Find the given attachments
Caden is 62 years old and has a traditional IRA with a balance of $220,000. Of that amount, $66,000 is from nondeductible contributions made while Caden was working. Earnings on the nondeductible contributions equal $20,600. If Caden withdraws $15,000 from his IRA this year, $_____ will NOT be subject to taxation.
Answer:
$4500.
Explanation:
So, we are given the following data or parameters or information in the question above;
=>" traditional IRA with a balance => $220,000."
=> "Of that amount, $66,000 is from nondeductible contributions made while Caden was working. "
=> "Earnings on the nondeductible contributions equal $20,600. "
=> "If Caden withdraws $15,000 from his IRA this year"
Hence;
The amount that will NOT be subject to taxation = (Amount from nondeductible contributions made while Caden was working) ÷ (traditional IRA with a balance) × (withdrawal from his IRA this year).
=> [66000/ 220000] × 15,000 = $4500.
NB: IRA stands for Individual retirement account and it is used in the United States of America to allow workers to save for their retirement and making sure that they are tax-free.
National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product.
Per Unit Total
Direct materials $23
Direct labor $45
Variable manufacturing overhead $12
Fixed manufacturing overhead $1,296,000
Variable selling and administrative expenses $ 10
Fixed selling and administrative expenses $ 1,134,000
These costs are based on a budgeted volume of 80,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 35%.
Required:
a) Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14–M16.
b) Compute the desired ROI per unit for M14–M16. (Round answer to 2 decimal places, e.g. 10.50.)
Answer:
Total Variable Costs per unit $ 90
Total Fixed Cost per unit $ 30.375
Total Unit Costs= $ 120.375
The investor will receive a benefit of $ 1.13 per unit .
Explanation:
National Corporation
M14–M16
Per Unit Total
Direct materials $23 1840,000
Direct labor $45 3600,000
Variable manufacturing overhead $12 960,000
Fixed manufacturing overhead $1,296,000
Variable selling & Admin. expenses $ 10 800,000
Fixed selling and administrative expenses $ 1,134,000
Total Variable Costs per unit $ 90
Direct materials $23
Direct labor $45
Variable manufacturing overhead $12
Variable selling & Admin. expenses $ 10
Total Fixed Cost per unit $ 30.375
Fixed manufacturing overhead =$1,296,000/ 80,000= $ 16.2
Fixed selling and administrative expenses = $ 1,134,000 / 80,000 = $ 14.175
Total Unit Costs= Total Variable Costs per unit + Total Fixed Cost per unit
=$ 90 + $ 30.375= $ 120.375
Return on investment measures the benefit an investor will receive in relation to their investment cost.
Desired ROI per unit + Fixed Cost= Mark Up Percentage * Variable Cost Per Unit
Putting values in the above
Desired ROI per unit + $ 30.375= 35 % * $ 90
Desired ROI per unit = 31.5- 30.375
Desired ROI per unit = $ 1.125= $ 1.13
The investor will receive a benefit of $ 1.13 per unit .
The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc.
Balance Sheet
December 31
Assets
Current assets:
Cash $ 20,000
Accounts receivable, net 230,000
Merchandise inventory 350,000
Prepaid expenses 7,000
Total current assets 607,000
Property and equipment, net 890,000
Total assets $ 1,497,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 210,000
Bonds payable, 9% 330,000
Total liabilities 540,000
Stockholders’ equity:
Common stock, $10 par value $ 110,000
Retained earnings 847,000
Total stockholders’ equity 957,000
Total liabilities and equity $ 1,497,000
Castile Products, Inc.
Income Statement
For the Year Ended December 31
Sales $ 2,120,000
Cost of goods sold 1,200,000
Gross margin 920,000
Selling and administrative expenses 650,000
Net operating income 270,000
Interest expense 29,700
Net income before taxes 240,300
Income taxes (30%) 72,090
Net income $ 168,210
Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $290,000. All sales were on account.
Assume that Castile Products, Inc., paid dividends of $2.95 per share during the year. Also assume that the company’s common stock had a market price of $72 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.
Required:
Compute financial ratios as follows:
1.
Earnings per share. (Round your answer to 2 decimal places.)
2.
Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
3.
Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
4.
Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)
5.
Book value per share. (Round your answer to 2 decimal places.)
Answer:
1. The Earning per share is $ 15.29 per share
2. The Dividend payout ratio is 0.193 or 19.3%
3. The Dividend yield ratio is 0.041 or 4.1%
4. The Price-earnings ratio is 4.7
5. The Book value per share is $ 87 per share
Explanation:
1. To calculate Earning per share we use the following formula:
Earning per share = Net income /Number of common shares
Number of common shares= 110,000 /10 = 11,000 shares
Earning per share= $168,210 /11,000
Earning per share = $ 15.29 per share
2. To calculate Dividend payout ratio we use the following formula:
Dividend paid = 2.95*11n000= $32,450
Payout ratio = $32,450 / $168,210
Payout ratio =0.193 or 19.3%
3. To calculate Dividend yield ratio we use the following formula:
Dividend yield ratio =dividend /current price
Dividend yield ratio = 2.95 / 72
Dividend yield ratio =0.041 or 4.1%
4. To calculate Price-earnings ratio we use the following formula:
PE ratio =Market price per share /EPS
PE ratio= 72 /15.29
PE ratio = 4.7
5. To calculate Book value per share we use the following formula:
Book value per share =Total sharehoders equity /number of share
Book value per share= $957,000/11,000
Book value per share= $ 87 per share
1. The Earning per share is $15.29 per share
2. The Dividend payout ratio is 19.3%
3. The Dividend yield ratio is 4.1%
4. The Price-earnings ratio is 4.7
Calculation of Net income1. To Compute Earning per share we use the following formula:
The formula of Earning per share is = Net income /Number of common shares
Number of common shares is = 110,000 /10 = 11,000 shares
Earning per share is = $168,210 /11,000
Earning per share is = $15.29 per share
2. To compute Dividend payout ratio we use the following formula:
Dividend paid is = 2.95*11n000= $32,450
Payout ratio is = $32,450 / $168,210
Therefore, Payout ratio =0.193 or 19.3%
3. To Compute Dividend yield ratio we use the following formula:
Then Dividend yield ratio =dividend /current price
Dividend yield ratio = 2.95 / 72
Therefore, Dividend yield ratio is = 0.041 or 4.1%
4. To Compute Price-earnings ratio we use the following formula:
PE ratio is =Market price per share /EPS
PE ratio is = 72 /15.29
Thus, PE ratio = 4.7
5. To Compute the Book value per share we use the following formula:
Book value per share is =Total shareholders equity /number of share
Then, Book value per share= $957,000/11,000
Hence, Book value per share= $ 87 per share
Find more information about Net income here:
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Based on the following Information and the post-closing trial Balance that follow, prepare a balance sheet in report form at December 31 of the current year:
The Merchandise inventory is stated at cost by the LIFO method.
The product warrant payable is a current liability.
Vacation pay payable:
Current liability $7,140
Long-term liability 3,360
The unfunded pension liability is a long-term liability.
Notes Payable:
Current liability $70,000
Long-term liability 630,000
Kornett Company
POST-CLOSING TRIAL BALANCE
December 31, 2016
Petty cash 4,500
Cash 243,960
Notes Receivable 100,000
Accounts Receivable 470,000
Allowance for Doubtful Accounts 16,000
Merchandise Inventory 320,000
Interest Receivable 1,875
Prepaid Insurance 45,640
Office Supplies 13,400
Land 654,925
Buildings 900,000
Accumulated Depreciation-Buildings 36,000
Office Equipment 246,000
Accumulated Depreciation- 44,000
Office Equipment
Store Equipment 112,000
Accumulated Depreciation-Store 5,000
Equipment
Mineral Rights 546,000
Accumulated Depletion 30,000
Patents 42,000
Social Security Tax payable 25,470
Medicare Tax payable 4,710
Employees federal Income Tax payable 40,000
State Unemployment Tax Payable 270
Federal Unemployment Tax payable 40
Salaries Payable 157,000
Accounts Payable 131,600
Interest Payable 28,000
Product Warrenty Payable 76,000
Vacation Pay Payable 10,500
Unfunded Pension Liability 50,700
Notes Payable 700,000
J. Kornett, Capital 2,345,010
3,700,300 3,700,300
Find the given attachments
A recent start-up company, which we will call Dronegistics, has developed an innovative unmanned aerial vehicle, or drone. The company plans to sell its drones to companies who would use them to make commercial deliveries within congested urban areas. Dronegistics has identified several markets in Asia as having high commercial potential. Japan and Singapore are perceived to have the strongest market potential currently, but mainland China, Thailand, and Malaysia are perceived to have strong and growing potential over time, even if their potential may not be as strong currently. Despite expectations that several other firms will introduce competitive products in the near future, which will have an impact on the attractiveness for later entrants, Dronegistics lacks the experience and resources to enter more than one Asian market at a time. The decision-making challenge facing Dronegistics incorporates all of the following location clocks associated with timing decisions EXCEPT the:
__a. firm clock.
__b. location clock.
__c. incentives clock.
__d. competitive clock.
Answer:
c. incentives clock
Explanation:
Dronegistics as a recent startup is faced with the following location clocks' decision-making challenges:
a) Firm clock: It is a recent startup and lacks the resources to enter more than one Asian market at a time.
b) Location clock: It does not know which location to start with in Asia, with no experience locating in more than one location at the same time.
c) Competitive clock: It is afraid of the timing of new entrants into the drones market with competitive products.
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred:
Sept. 6 Purchased calculators from Crane Co. at a total cost of $1,610, terms n/30.
9 Paid freight of $40 on calculators purchased from Crane Co.
10 Returned calculators to Crane Co. for $52 credit because they did not meet
specifications.
12 Sold calculators costing $580 for $760 to Fryer Book Store, terms n/30.
14 Granted credit of $45 to Fryer Book Store for the return of one calculator that
was not ordered. The calculator cost $32.
20 Sold calculators costing $650 for $800 to Heasley Card Shop, terms n/30.
Instructions:
Journalize the September transactions.
Answer:
Explanation:
Journal entry is a record of transaction listing the debit and credit entry of respective account .
Debit entry represent an inflow while credit entry represent an outflow
Date Description Debit Credit
Sept, 6 Inventory 1610
Acct. Payable 1610
Sept . 9 Inventory 40
Cash 40
Sept. 10 Acct payable 52
Inventory 52
Sept 12 Receivable 760
Sales 760
Cost of goods 580
Inventory 580
Sept 14 Returned sales 40
Receivable 40
Inventory 32
Cost of goods 32
Sept. 20 Receivable 800
Sales 800
Cost of goods 650
Inventory 650
Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 145,000 units per year. The total budgeted overhead at normal capacity is $1,160,000 comprised of $435,000 of variable costs and $725,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours.
During the current year, Byrd produced 79,900 putters, worked 94,400 direct labor hours, and incurred variable overhead costs of $157,882 and fixed overhead costs of $539,908.
a) Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.
b) Compute the applied overhead for Byrd for the year.
c) Compute the total overhead variance.
Answer:
Product, A Putter Called GO-Putter. Byrd Uses A Standard Cost System And Determines That It Should Take One Hour Of Direct Labor To Produce One GO-Putter. The Normal Production Capacity For This Putter Is 145,000 Units Per Year
Explanation:
What would happen to the price of a certain commodity if the demand was always greater than the supply? There would be surplus of supply at any given price. Consumers would be willing to pay more for an abundant commodity and sellers would charge more, resulting in an upward spiral of the prices for the commodity. There would be a surplus of supply until the supply equals the demand. Consumers would be willing to pay more for a scarce commodity and sellers would charge more, resulting in an upward spiral of the prices for the commodity. There would be a shortage of supply until the supply equals the demand. Consumers would be willing to pay more for a scarce commodity and sellers would charge more, resulting in an upward spiral of the prices for the commodity. There would be a shortage of supply at any given price. Consumers would be willing to pay
Answer:
Consumers would be willing to pay more for a scarce commodity and sellers would charge more, resulting in an upward spiral of the prices for the commodity.
Explanation:
When demand exceeds supply, there's a scarcity. As a result of the scarcity, consumers would be willing to pay more for the good or service and suppliers would increase the price of the commodity. As a result price would rise.
Please check the attached image for a graph showing effect of excess demand on price
I hope my answer helps you.