Aquaguard manufactures three models of water purifiers in three separate plants at Taiwan. These plants serve the demand in Europe. All three models sell at a unit price of $100 and the holding cost is 5% of the selling price per month. The monthly demand for these models is normally distributed with the following parameters:
Model 1: Mean 1000, SD 300
Model 2: Mean 1000, SD 300
Model 3: Mean 1000, SD 300
The demand for Model 1 and Model 2 has a correlation coefficient of (-) 0.35, while that for Model 3 is independent of the other two models. The company wishes to make two of the models in one plant by using flexible technology.
Required:
a) Which two models should Aquaguard choose in order to minimize production variability in the new plant? (as measured by the coefficient of variation).

Answers

Answer 1

Answer:

Aquaguard may choose any of the  two models to minimize the production variability in the new plant.

Explanation:

Model 1: Mean = 1000, Standard Deviation(SD) = 300

Model 2: Mean = 1000, SD = 300

Model 3: Mean = 1000, SD = 300

Coefficient of variation for model 1

C.V = ( SD ÷ Mean) × 100

= ( 300 ÷ 1000 ) × 100

= 30 %

Coefficient of variation for model 2

= ( 300 ÷ 1000 ) × 100

= 30 %

Coefficient of variation for model 3

= ( 300 ÷ 1000 ) × 100

= 30 %

 We conclude that all the models have same effect .


Related Questions

AZ Products has 375,000 shares of common stock outstanding at a market price of $35 a share. Next year's annual dividend is expected to be $1.50 a share and the dividend growth rate is 2 percent. The firm also has 7,500 bonds outstanding with a face value of $1,000 per bond. The bonds have a pretax yield of 7.65 percent and sell at 98.6 percent of face value. The company's tax rate is 34 percent. What is the firm's weighted average cost of capital?

Answers

Answer:

The firm's weighted average cost of capital 5.81%

Explanation:

In order toTo calculate WACC, we need to calculate the cost of equity and after-tax cost of debt. The WACC can be calculated with the use of following formula:

WACC = After-Tax Cost of Debt*Weight of Debt + Cost of Equity*Weight of Equity

Where,

After-Tax Cost of Debt = Pretax Yield*(1-Tax Rate)

Market Value of Debt = Outstanding Bonds*Par Value*Current Selling Percentage

Cost of Equity = D1/Current Market Price + Growth Rate

Market Value of Equity = Number of Common Shares Outstanding*Current Market Price

Weight of Debt = Market Value of Debt/(Market Value of Debt + Market Value of Equity)

Weight of Equity = Market Value of Equity/(Market Value of Debt + Market Value of Equity)

Therefore, Market Value of Debt = 7,500*1,000*98.60% = $7,395,000

Market Value of Equity = 375,000*35 = $13,125,000

Weight of Debt = 7,395,000/(13,125,000 + 7,395,000)

Weight of Equity =$13,125,000 /($13,125,000  + 7,395,000)

Cost of Equity = 1.50/35 + 2% = 6.28%      0.01801

After-Tax Cost of Debt = 7.65*(1-34%) = 5.05%

Using the values calculated above in the formula for WACC, we get,

WACC = 5.05%*7,395,000/(13,125,000 + 7,395,000) + 6.28% *$13,125,000/($13,125,000 + 7,395,000) = 5.81%

Units of production data for the two departments of Continental Cable and Wire Company for November of the current fiscal year are as follows: Drawing Department Winding Department Work in process, November 1 6,000 units, 50% completed 2,200 units, 70% completed Completed and transferred to next processing department during November 82,200 units 81,400 units Work in process, November 30 4,600 units, 65% completed 3,000 units, 25% completed a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for November for the Drawing Department. If an amount is zero, enter in "0".

Answers

Answer and Explanation:

As per the data given in the question,

Calculation for direct material and equivalent conversion is presented below:

Particulars                           Materials                                Conversion cost

      Units (a)        % of completion (b)  Equivalent units (a ×b)     % of completion (d)   Equivalent units  (a × d)

Beginning WIP    6,000 units    0%                    0                          50%

3,000 units

Completed units  76,200 units  100%                76,200                100%

76,200 units

Ending WIP            4,600 units    100%                4,600 units         65%

2,990 units  

Total                      86,800 units                           80,800 units

82,190 units

Working notes

1. The 50% is considered as 50% is beginning work in process so the remaining would be considered

2. The 76,200 units is come from

= 82,200 units - 6,000 units

= 76,200 units

3.  And at last we total beginning WIP + completed units and ending WIP

Company incurred the following costs while producing 400 ​units: direct​ materials, $ 6 per​ unit; direct​ labor, $ 27 per​ unit; variable manufacturing​ overhead, $ 19 per​ unit; total fixed manufacturing overhead​ costs, $ 4 comma 000​; variable selling and administrative​ costs, $ 10 per​ unit; total fixed selling and administrative​ costs, $ 3 comma 200. There are no beginning inventories. What is the operating income using absorption costing if 400 units are sold for $ 180 ​each?

Answers

Answer:

$40,000

Explanation:

The operating income using absorption costing is find out by using the following equation

Sales revenue                        $72,000    (400 units × $180)

Less:

Direct material cost               $2,400    (400 units × $6)  

Direct labor cost                    $10,800   (400 units × $27)  

Variable manufacturing overhead $7,600    (400 units × $19)  

Fixed manufacturing overhead     $4,000

Variable selling and admin cost $4,000   (400 units × $10)  

Fixed selling and admin cost      $3,200

Operating income using absorption costing   $40,000

We simply subtract all expenses from the sales so that the operating income under absorption costing could arrive

Dianne Doolittle wants to download an itemized invoice for the QuickBooks Online subscriptions on her wholesale billing account for last month.

The statement can be downloaded in which 2 file formats?

Answers

Answer:. CSV and PDF

Explanation:

QuickBooks is an Accounting software that was developed to mainly help small to medium size companies maintain a proper accounting system.

The Wholesale billing option enables the owner to pay the subscription for the clients that they moved to the wholesale billing list.

When downloading an itemized invoice for this there are 2 file formats that QuickBooks permits people to use which are CSV and PDF file formats.

If workers are more educated, then short-run aggregate supply ___________.
O will increase and output and price level will increase as well.
O decrease and output and price level will decrease as well.
O increase and output will increase but price level will decrease.
O increase and output will decrease but price level will increase.
O decrease and output will decrease but price level will increase.

Answers

Answer:

O will increase and output and price level will increase as well.

Explanation:

If workers are more educated, the productivity of the country will increase, increasing total output. As investment in training increases, so thus the workers' capacity to perform more efficiently. Also, when the demand for better (or more) trained workers increases, the salary level will also increase. As workers gain training and/or experience, their salaries increase, e.g. on average, a person with a college degree earns much more than someone with just a high school degree. This increase in the level of salaries will lead to an increase in the general price level.

A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable Fixed

Indirect materials $90,000 Depreciation $37,500

Indirect labor 120,000 Taxes 7,500

Factory supplies 15,000 Supervision 30,000

A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of

$277,500.

$202,500.

$270,000.

$225,000.

Answers

Answer:

b

Explanation:

With current technology, suppose a firm is producing 800 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 6 units of labor, 5 units of land, 4 units of capital, and 2 units of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively.
Required:
1. Assume the firm can sell these 800 loaves at $1 per unit, will it continue to produce banana bread?2. What is the firm's total revenue?3. What is the firm's total cost?4. What is the firm's profit or loss?

Answers

Answer:

1. No

2. $800

3. 820

4. Loss = $-20

Explanation:

Total revenue = price x quantity = 800 x $1 = $800

Total cost = ( 6 x $40) + (5 × $60) + (4 × $60) + (2 × $20) = $820

Profit / loss = Total revenue - Total cost

$800 - $820 = $-20

Because the firm is earning a loss, the firm would not continue to produce.

I hope my answer helps you.

The appellate court decides that the trial court committed reversible error by including evidence found by law enforcement. Law enforcement discovered this evidence when committing a Fourth Amendment violation, which should have been excluded at trial. This inadmissible evidence was the lynchpin of the prosecutor’s case, which resulted in a conviction.
1. Where does the case go from here?
2. Is the Defendant free to go?
3. Does it go back to the trial court?
4. Does it go all the way up to the Supreme Court?

Answers

Answer:

Now that the very evidence that lead to conviction of the defendant, that person will no longer serve the sentence given as a punishment as a result of the crime committed.Yes, the defendant would be free to go for now, unless they can produce any more evidence to charge him with the crime he allegedly committed. Conventionally it would go back to the trial court until and unless specified otherwise by the judge.It could go all the way up to the supreme court depending on whether the legal counsel handling the case puts in a request for it.

Hope that answers the question, have a great day!

Shawl Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product F02E specifies 5.5 direct labor-hours per unit of F02E. The standard variable overhead rate is $6.80 per direct labor-hour. During the most recent month, 1,560 units of product F02E were made, and 8,700 direct labor-hours were worked.

The actual variable overhead incurred was $52,635.

Required:

a. What was the variable overhead rate variance for the month?
b. What was the variable overhead efficiency variance for the month?

Answers

Answer:

(a) $6,525 (b) $816

Explanation:

Solution

Given that:

(a) The variable overhead rate variance for the month:

The variable overhead rate variance = (Actual rate  - Standard rate) * Actual hours

=(($52,635/8700) -$6.80)* 8,700 hours

=($6.05-$6.80) * 8,700 hours

= $6,525 Favorable

(b) The variable overhead efficiency variance for the month:

The variable overhead efficiency variance = (Actual hours - Standard hours) * Standard rate

= (8,700 Hours -(1,560 units * 5.5  Hours/Unit)) * $ 6.80

= (8,700 Hours- 8,580 Hours) * $6.80

= $816 Which is unfavorable

The Pritchett Corporation has two divisions--East and West. The divisions have the following revenues and expenses: East West Sales $500,000 $550,000 Variable costs 200,000 275,000 Traceable fixed costs 150,000 180,000 Allocated common corporate costs 135,000 170,000 Net operating income (loss) $ 15,000 $( 75,000) The management of Pritchett is considering the elimination of the West division. If the West division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West division would result in an overall company net operating income (loss) of:

Answers

Answer:

($155,000)

Explanation:

The computation of the net operating income or loss by considering the elimination of the west division is shown below:

Sales $500,000

Less:

Variable Cost ($200,000)

Traceable Fixed cost ($150,000)

Common Corporate cost ($305,000)    ($135,000 + $170,000)

Net Operating Loss ($155,000)

We simply deduct the all cost from the sales revenue so that the net operating loss could come

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, raskels, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties decreases by 5%, the quantity of raskels sold decreases by 4% and the quantity of kipples sold increases by 6%. Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.

Complete the first column of the following table by computing the cross-price elasticity between penguin patties and raskels, and then between penguin patties and kipples. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.


Relative to Penguin Patties

Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Penguin Patties (Yes or No)
Raskels
Kipples

Answers

Answer: Please refer to Explanation

Explanation:

Cross Price Elasticity of Demand measures the responsiveness of Quantity demanded of one good to the price of another good.

Remember that according to the laws of Supply and Demand when prices rise, demand drops.

When the Cross Price Elasticity is POSITIVE, it is said that the goods are SUBSTITUTES because a price increase (decrease) in one leads to more (less) of the other being demanded because they can be switched for one another like Coke and Pepsi.

When Cross Price Elasticity is NEGATIVE however then the goods are COMPLIMENTS because an increase (decrease) in the price of one good led to a reduction(increase) in demand of the other good. This proves that the goods compliment each other and so their demand moves in the same direction.

Raskals and Penguin Patties.

Cross Price ED (Raskals and Penguin Patties) = Percentage change in quantity demanded of Raskals/ Percentage change in price of Penguin Patties

Cross Price ED (Raskals and Penguin Patties) = -4%/-5%

= 0.8

This is positive so Penguin Patties and Raskels are Substitutes albeit weak ones.

Kipples and Penguin Patties.

Cross Price ED (Kipples and Penguin Patties) = Percentage change in quantity demanded of Kipples/ Percentage change in price of Penguin Patties

Cross Price ED (Kipples and Penguin Patties) = 6%/-5%

= -1.2

As it is a negative figure, Penguin Patties and Kipples are Compliments albeit weak ones as well.

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties, raskels, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together.
As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides your marketing firm with the following data: When the price of penguin patties increases by 5%, the quantity of raskels sold decreases by 4% and the quantity of kipples sold increases by 5%.
Your job is to use the cross-price elasticity between penguin patties and the other goods to determine which goods your marketing firm should advertise together.
1. Complete the first column of the following table by computing the cross-price elasticity between penguin patties and raskels, and then between penguin patties and kipples. In the second column, determine if penguin patties are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with penguin patties.
Relative to Penguin Patties
Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Penguin Patties (Yes or No)
Raskels
Kipples

Answers

Answer;

Raskels = 0.8 Substitute

Kipples = -1 Complement

Explanation:

Cross-price

elasticity of demand , Complement

Raskels (-4%)/(-5%) = 0.8 Substitute

Kipples (5%)/(-5%) = -1 Complement

Recommended

Raskels No

Ripples Yes

Cross price elasticity = Percentage change in quantity demanded of a good/Percentage change in price of another good.

If it is positive, then it means that the good is a substitute and should not be advertised together.

And If it is complement, then the good is a complement and should be advertised together.

Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 97,200 units per year is: Direct materials $ 2.20 Direct labor $ 4.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 3.35 Variable selling and administrative expenses $ 1.60 Fixed selling and administrative expenses $ 3.00 The normal selling price is $21.00 per unit. The company’s capacity is 116,400 units per year. An order has been received from a mail-order house for 1,600 units at a special price of $18.00 per unit. This order would not affect regular sales or the company’s total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?

Answers

Answer:

$15,360

Explanation:

As per the data given in the question,

Particulars                      Per unit                    1600 Units

Incremental sales           $18.00                   $28,800(1,600×$18)

Incremental cost :

Direct material                $2.20                    $3,520(1,600×$2.20)

Direct labor                    $4.00                      $6,400(1,600×$4)

Variable manufacturing overhead $0.60       $960(1,600×$0.60)

Variable selling and administrative expense $1.60 $2,560(1,600×$1.60)

Total incremental costs $8.40                         $13,440(1,600×$8.40)

Incremental profits $9.60($18.00-$8.40)          $15,360(1,600×$9.60)

The annual profit will enhance by $15,360 if special order is accepted.

2)

The relevant cost is $1.60 which is the price of Variable selling and administrative expense. Since units have already prepared So all other costs are sunk cost.The fixed cost is not relevant because they won't change in total value.

Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of $612,500. Each coffee maker sold at a price of $100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of $45,000. Administrative expense totaled $47,500.Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.) Morning Smiles Coffee Company Income Statement For the Month of March Sales revenue Cost of goods sold Gross margin Less Selling expense: Variable commissions Fixed selling expense Administrative expense Operating income

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Sales= 8,000 units

Total cost= $612,500.

Selling price= $100.

Selling costs:

commissions equal to 5% of the sales

other selling expense of $45,000.

Administrative expense totaled $47,500

Income statement:

Sales revenue= (8,000*100)= 800,000 100%

COGS= (612,500)  76.56%

Gross profit= 187,500

commissions= 0.05*800,000= (40,000) 5%

other selling expense= (45,000) 5.63%

Administrative expense= (47,500) 5.94%

Net operating income= 55,000 6.87%

Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:
Month Machine Hours Electricity Costs
January 2,900 $ 18,600
February 3,300 $ 21,400
March 2,300 $ 13,700
April 3,500 $ 23,400
May 4,200 $ 28,450
June 3,700 $ 22,400
July 4,500 $ 24,950
August 3,900 $ 22,950
September 2,400 $ 15,900
October 4,100 $ 26,400
November 5,300 $ 31,400
December 4,900 $ 27,950
Summary Output
Regression Statistics
Multiple R .959
R Square .920
Adjusted R2 .912
Standard Error 1,550.32
Observations 12.00
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 2,992.80 1,933.78 1.55 0.15 (1,315.92) 7,301.52
Machine Hour 5.37 0.50 10.70 0.00 4.25 6.49
If the controller uses the high-low method to estimate costs, the cost equation for electricity cost is: (Round intermediate calculations to 2 decimal places.)
A. Cost = $2,992.80 + $5.37 × Machine-hours.
B. Cost = $130.00 + $5.90 × Machine-hours.
C. Cost = $6.50 × Machine-hours.
D. Cost = $23,670.

Answers

Answer:

The correct option : B. Cost = $ 130.00 + $ 5.90 x Machine - hours

Explanation:

Let's use the following method to solve the given problem

Now applying the high-low method of cost estimation,

High => November, 5,300 machine hours

Low => March, 2,300 machine hours

Arranging it in a simultaneous equations for total cost:

We can let fixed cost per month to be F, and the variable cost per machine -hour be V, and the number of machine-hours be Q.

Therefore

Total cost = F + VQ

High => F + 5,300Q = $ 31,400

Low => F + 2,300Q = $ 13,700

Subtracting Low from High, we have 3,000Q = $ 17,700 or Q = $ 5.90 per machine hour ................equation one

F = $ 13,700 - ( 2,300 x $ 5.90) = $ 130......................................................................equation two

Suppose that after hurricane​ Irene, the average income in Cape​ Charles, Virginia decreased by 2 percent. In response to this change in​ income, suppose the quantity of steak demanded in Cape Charles​ (holding the price of steak​ constant) decreased by 12 percent. What is the income elasticity of demand for steak in Cape​ Charles? The income elasticity of demand for steak in Cape Charles is _______. ​(Enter your response rounded to two decimal​ places.) In this​ instance, steak in Cape Charles is _______

Answers

Answer:The income elasticity of demand for steak in Cape Charles is ___6.0%____. In this​ instance, steak in Cape Charles is __A luxury good_____

Explanation:

The formula for calculating income elasticity is given as

Percentage Change in demand divided by the Percentage change in income

.

Income Elasticity = 12%/-2%= 6%

Luxury goods  have an income elasticity of demand greater  +1 what we can conclude from this is that buying streak from Cape Charles is not an essential economic activity because a fall in income resulted to a proportionate decrease in quantity demanded.

In this instance, steak in Cape Charles is  a Luxury good _____

Rafa runs a profit maximizing firm. It turns out that for Rafa his fixed costs are $1,000 and his avoidable fixed costs are $600. In his current short run situation when he has successfully set his marginal revenue equal to his marginal cost where marginal costs are rising, he is disappointed to discover that his economics profits are negative. In fact at this production level his profits are $- 500.
Required:
1. Which one of the following statements is TRUE?
A) Rafa's accounting profits must also be negative in the short run.
B) Rafa should shut down in the short run.
C) Rafa should continue to produce at a loss in the short run.
D) If Rafa is a monopolist, he should continue to operate in the short run, otherwise he should shut down.

Answers

Answer: C) Rafa should continue to produce at a loss in the short run.

Explanation:

Rafa should continue to produce in the short run because he stands a chance of making profit in the long run. His avoidable fixed costs are $600 and his Economic profits are -$500. In the long run, all costs are variable which means that he should be able to avoid the $600 fixed costs. When he does this, he will then be making an Economic profit of $100 because the $600 in Avoidable fixed cost will be just that, avoided and when that is offset against the -$500, he will get a $100 profit.

Rose is a human resources manager for a rapidly growing corporation. The firm recently hired 100 new workers, 10 of whom were involved in workplace accidents soon after they were hired. It was determined that alcohol usage was the cause of these accidents. Top management has asked Rose to do a better job in screening potential workers for alcohol abuse to avoid this in the future. Rose should point out that in fact the 10 percent of the recent hires with alcohol issues is actually much lower than the overall percentage of employees with alcohol issues that are involved in industrial injuries and fatalities in the U.S. True or False

Answers

Answer:

True.

(Approximately 40 percent of industrial injuries and fatalities can be linked to alcohol consumption).

Explanation:

According to research carried out, it was observed that approximately, about 40 percent of industrial injuries and fatalities can be linked to alcohol consumption.

Moreso, alcohol has historically, and continued to, hold an important role in social engagement and bonding for many. Social drinking or moderate alcohol consumption for many is pleasurable.

However, alcohol consumption especially in excess is linked to a number of negative outcomes: as a risk factor for diseases and health impacts; crime; road incidents; and for some, alcohol dependence. Globally alcohol consumption causes 2.8 million premature deaths per year.

Global, the entry patterns of alcohol consumption, patterns of drinking, beverage types, the prevalence of alcoholism; and consequences, including crime, mortality and road incidents.

An insurance company monitors customer complaints. There are several possible problem categories including wrong bill sent, charges too high, failure to add new coverage, deletion of existing coverage and incorrect address. Determine the percentage that each problem contributes to customer complaints.

Answers

Answer:

Pareto Diagram

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

Please have a look at the attached photo.  

My answer:

The Pareto chart, named after Vilfredo Pareto, is a type of chart that consists of columns and lines in which the independent values are represented by lower-order columns and values. The cumulative sum is represented by a straight line.

The vertical vertical axis is used to measure the frequency of occurrence, but it can also be replaced to measure costs or a different unit of calculation depending on the purpose. The vertical vertical axis is used to measure the cumulative percentage of the total number of occurrences, the total cost or the sum of a unit of measurement depending on the purpose. Because values are arranged in descending order, the cumulative function will be a concave function

The purpose of the Pareto chart is to find out in a group of causes (often there are many), which are the most important causes.

So Pareto Diagram is the best determiner that each problem contributes to customer complaints.

Hope it will find you well.

On January 1, 2021, Tabitha Designs purchased a patent for $402,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $158,000. The equipment has a physical life of 10 years, but Tabitha plans to use the equipment only over the patent's service life and then sell it for an estimated $52,000. Tabitha uses straight-line for all long-term assets. The amount to expense in 2024 related to the patent and equipment should be: Multiple Choice $104,000. $98,800. $63,500. $40,050.

Answers

Answer:

$63,500

Explanation:

Patent

Amortization Charge - Patent = Cost / Useful life

                                                 = $402,000/8

                                                 = $50,250

Same amount is charged over the useful life, hence 2024 Amortization Charge - Patent will be $50,250

Equipment

Depreciation Expense = (Cost - Salvage Value) / Useful Life

                                     = ($158,000-$52,000) / 8

                                     = $ 13,250

Same amount is charged over the useful life, hence 2024 Depreciation Expense - Equipment will be $ 13,250

Total Expense

Amortization Charge - Patent           $50,250

Depreciation Expense - Equipment $ 13,250

Total                                                    $63,500

Carrejo Corporation has two divisions: Division M and Division N. Data from the most recent month appear below:

Total Company Division M Division N
Sales $404,000 $181,000 $223,000
Variable expenses 152,130 65,160 86,970
Contribution margin 251,870 115,840 136,030
Traceable fixed expenses 192,000 87,000 105,000
Segment margin 59,870 28,840 31,030
Common fixed expenses 52,520 23,530 28,990
Net operating income $7,350 $5,310 $2,040

Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to:

a. $172,131
b. $219,656
c. $258,230
d. $392,211

Answers

Answer:

Break-even point (dollars)=  $219,656

Explanation:

Giving the following information:

Division N

Sales= $223,000

Variable expenses= 86,970

Contribution margin= 136,030

Traceable fixed expenses= 105,000

Segment margin= 31,030

Common fixed expenses= 28,990

To calculate the break-even point in dollars for Division N, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

contribution margin ratio= (sales - variable costs) / sales

Break-even point (dollars)= (105,000 + 28,990) / (136,030/223,000)

Break-even point (dollars)=  $219,656

Carbamate Manufacturing produces a pesticide chemical and uses process costing. There are three processing departmentslong dash​Mixing, ​Refining, and Packaging. On January​ 1, the Refining Department had 2,000 gallons of partially processed product in production. During​ January, 30,000 gallons were transferred in from the Mixing​ Department, and 29,000 gallons were completed and transferred out. At the end of the​ month, 3,000 gallons of partially processed product remained in the Refining Department. The weightedminusaverage method is used. See additional details below.

Refining​ Department, ending balance at January 31
Percent completed for materials cost: 92%
Percent completed for conversion cost: 76%

What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Department?

Answers

Answer:

Equivalent unit for conversion cost= 31,280 units

Explanation:

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work

Equivalent unit = Degree of completion × number of units

Equivalent unit for conversion cost

Item                                    units                                       Equivalent unit

transferred                       29,000        100%× 29,000    =          29,000

Closing inventory                3,000          76%×  3,000   =           2280

Total equivalent unit                                                                    31,280

Equivalent unit for conversion cost= 31,280 units

MJ Logistics has decided to build a new warehouse to support its supply chain activities. They have the option of building either a large warehouse or a small one. Construction costs for the large facility are $15 million versus $5 million for the small facility. The present value of the after tax profit (excluding construction costs) over the expected life of the warehouses depends on the volume of demand. In the large warehouse, if there is high demand, the company will make $35 million, and if there is low demand, the company will make $20 million. In the small warehouse, if there is high demand, the company will make $15 million, and if there is low demand, the company will make $ 9 million. The probability of high demand has been estimated to be 40% by the VP of Marketing for MJ Logistics. This estimate holds true regardless of whether a large or small warehouse is built.Construct a decision tree reflecting the components of the decision facing MJ Logistics. Be sure to clearly state the decision MJ Logistics should make as a risk-neutral company.

Answers

Answer:

13000000million dollars kiddo

Explanation:

On January 1, 20X8, Polo Corporation acquired 75 percent of Stallion Company's voting common stock for $300,000. At the time of the combination, Stallion reported common stock outstanding of $200,000 and retained earnings of $150,000, and the fair value of the noncontrolling interest was $100,000. The book value of Stallion's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Stallion reported net income of $40,000 and paid dividends of $10,000 during 20X8.

a) Provide the journal entries recorded by Polo at December 31, 20X8 on its book if it accounts for its investment in Stallion using equity method.

b) Provide all consolidation entries needed at December 31, 20X8, to prepare consolidated financial statements.

Answers

Answer:

Explanation:

Base on the question been given to us, we can solve this using equity method as seen below

Investments in Polo = 300000+0.75*(40000-10000-5000*)

300000+0.75*(25000)

300000+18750

$318,750

Increase in value of Patent $50,000

Economic Life 10

Amortization $5,000

The $ 5000 would be reduced from the net income

You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $22,500 to purchase and which will have OCF of −$2,900 annually throughout the vehicle’s expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $31,000 to purchase and which will have OCF of −$1,500 annually throughout that vehicle’s expected 4-year life. Both cars will be worthless at the end of their life. You intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into the foreseeable future. If the business has a cost of capital of 13 percent, calculate the EAC.

Answers

Answer:

EAC of  Scion xA= 12,429.24

EAC of Toyota =   $11,922.02

The Toyota should selected because it has a lower EAC

Explanation:

Equivalent Annual cost = PV of cost/Annuity factor

Scion xA

PV of OCF= A × (1- (1+r)^(-n)/n

= 2,900 × (1 -(1.13)^(-3))/0.13=6847.342534

PV of total cost = 22,500 + 6847.34 = 29,347.34253

EAC = 29,347.34/ 2.361152598=  12429.24433

EAC = 12429.24

EAC Toyota

PV of OCF = 1500×(1 -(1.13)^(-4))/0.13= 4461.706988

PV of total cost = 31,000 + 4461.7069= 35,461.70699

EAC =  35,461.706/ 2.9744  = 11,922.02

EAC =  $11,922.02

EAC of  Scion xA= 12429.24

EAC of Toyota =   $11,922.02

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $480,000 Number of setups 600 Ordering costs 360,000 Number of orders 18,000 Machine costs 840,000 Machine hours 42,000 Receiving 400,000 Receiving hours 10,000 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $600,000 $800,000 Direct labor $480,000 $480,000 Units completed 16,000 8,000 Direct labor hours 6,000 2,000 Number of setups 400 200 Number of orders 6,000 12,000 Machine hours 24,000 18,000 Receiving hours 3,000 7,000 The company's normal activity is 8,000 direct labor hours. Required: 1. Determine the unit cost for each model using direct labor hours to apply overhead. Unit Cost Model A $ Model B $ 2. Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent. Unit Cost Model A $ Model B $ 3. Which method produces the more accurate cost assignment?

Answers

Answer:

1. $260  ; $165  and $225

2. $132.50  and $290

3. Activity Driver Method.

Explanation:

As per the data given in the question,

1)

Overhead rate =(Direct labor + Ordering cost + Machine cost +Receiving) ÷ (Direct labor hour for A + Direct labor hour for B)

= ($480,000 + $360,000 + $840,000 +$400,000) ÷ (6,000+$2,000)

= $260

Model A cost per unit = (Direct material +Setting up)÷Units +(Direct labor hour×Overhead rate÷Units)

=($600,000+$480,000)÷$16,000 +($6,000×$260÷ $16,000)

= $165

Model B cost per unit = ($800,000+$480,000)÷$8,000 +($2,000×$260÷ $8,000)

= $225

2)

Model A cost =((Direct material + direct labor)+(direct labor×no. of setups÷number of setup)+(ordering cost×no. of orders÷machine hours)+(machine costs×no. of orders÷machine hours)+(receiving×receiving hours÷receiving hours)) ÷ Units

= (($600,000+$480,000) + ($480,000×400÷600) + ($360,000×$12,000÷$18,000) +($840,000×$18,000÷$42,000) + ($400,000×3,000÷$10,000)) ÷ $16,000

= $132.50

Model B cost = (($800,000+$480,000) + ($480,000×200÷600) + ($360,000×$12,000÷$18,000) +($840,000×$18,000÷$42,000) + ($400,000×7,000÷$10,000)) ÷ $8,000

= $290

3)

The more accurate cost assignment is produced by Activity Driver Method.

We simply applied the above formulas

Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects:

Student Return
(Percent)
Harry 5
Ron 8
Hermione 20
Assume borrowing and lending is prohibited, so each student uses only personal saving to finance his or her own investment project.

Complete the following table with how much each student will have a year later when the project pays its return.

Student Money a Year Later
(Dollars)
Harry ________
Ron ________
Hermione ________
Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate Three students have each saved $1,000. Each has an .

A student would choose to be a borrower in this market if his or her expected rate of return is ___(Less or Greater)____ than .

Suppose the interest rate is 7 percent.

Among these three students, the quantity of loanable funds supplied would be $_______________, and quantity demanded would be $________

Now suppose the interest rate is 10 percent.

Among these three students, the quantity of loanable funds supplied would be $_______, and quantity demanded would be$_________

At an interest rate of __________, the loanable funds market among these three students would be in equilibrium. At this interest rate,_____(Harry, Hermione, Ron, Ron and Harry, Hermione and Ron)_____ would want to borrow, and ____(Harry, Hermione, Ron, Ron and Harry, Hermione and Ron)_____ would want to lend.

Suppose the interest rate is at the equilibrium rate.

Complete the following table with how much each student will have a year later after the investment projects pay their return and loans have been repaid.

Student Money a Year Later
(Dollars)
Harry ________
Ron ________
Hermione ________
True or False: Only borrowers are made better off, and lenders are made worse off.

True

False

Answers

Answer:

Student Money a Year Later:

Harry = Money saved + student return * money saved = $1000 + (5% * 1000) = $1050

Ron = Money saved + student return * money saved = $1000 + (8% * 1000) = $1080

Hermione = Money saved + student return * money saved = $1000 + (20% * 1000) = $1200

Explanation:

a) Student Money a Year Later:

Harry = Money saved + student return * money saved = $1000 + (5% * 1000) = $1050

Ron = Money saved + student return * money saved = $1000 + (8% * 1000) = $1080

Hermione = Money saved + student return * money saved = $1000 + (20% * 1000) = $1200

b) A  student would choose to be a borrower in this market if his or her expected rate of return is greater than the interest rate and lends if his or her expected rate of return is less than the interest rate

c) If interest = 7%, Harry would want to lend while Ron and Hermione would want to borrow. The quantity of funds demanded would be $2,000, while the quantity supplied would be $1,000. If interest = 10%, only Hermione would want to borrow. The quantity of funds demanded would be $1,000, while the quantity supplied would be $2,000.

d) At an interest rate of 8%, the loanable funds market among these three students would be in equilibrium. At this interest rate Hermione would want to borrow, and Harry would want to lend.

e) At equilibrium:

Harry =  $1000 + (8% * 1000) = $1080

Ron = $1000 + (8% * 1000) = $1080

Hermione = $2,000(1 + 0.20) – $1,000(1 + 0.08) = $2,400 – $1,080 = $1,320

Both borrowers and lenders are better off. No one is worse off

The amount of money the students would have after a year is:

Harry: $1050

Ron: $1080

Hermione: $1200

A student would choose to be a borrower in this market if his or her expected rate of return is greater than the rate of return on investments.

If interest rate is 7%, the quantity of loanable funds supplied would be $100, and quantity demanded would be $200.

If interest rate is 10%, the quantity of loanable funds supplied would be $200, and quantity demanded would be $100.

At an interest rate of 8%, the loanable funds market among these three students would be in equilibrium.

At this interest rate, Hermione would want to borrow and Harry would want to lend.

If interest rate is equilibrium, the amount of money the students would have a year later is:

Harry: $1080

Ron : $1080

Hermione: $1320

Both borrowers and lenders are made better off.

The formula for determining the return on investment is: Amount invested x (1 + rate of return)^n

Harry: 1000 x (1.05) = $1050

Ron: 1000 x (1.08) = $1080

Hermione: 2000 x (1.2) = $2400

Students would choose to lend if the expected return on lending is greater than the rate of return on investment.

At equilibrium, the quantity of loans demanded is equal to the quantity of loans supplied.

When interest rate is 8%, Harry whose return on investment is less than 8%would be willing to lend and hemione would be willing to lend.

Rate of return after a year:

Harry = $1000 x 1.08 = $1080

Ron: 1000 x (1.08) = $1080

Hermione:[ 2000 x (1.2)] $2400 - $1080 = $1320

A similar question was answered here: https://brainly.com/question/10538281

Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2017, are presented below:
Bid Price: $450,000
Contract cost: 2016 -180,000
2017 -195,000
Gross Profit: 75,000
Estimated Cost to Complete:
12/31/2016 $200,000
12/31/2017 0
1. Assuming BCC uses the percentage-of-completion method of revenue recognition, the gross profit recognized in 2016 would be (rounded to the nearest thousand):
2. Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2017 would be (rounded to the nearest thousand):
3. Assuming BCC used the completed contract method to recognize revenue, what would gross profit have been in 2016 and 2017 (rounded to the nearest thousand)?
2016 2017
a. $36,000 $39,000
b. $30,000 $45,000
c. $70,000 $5,000
d. $ 0 $75,000
4. Assuming BCC used the cost recovery method to recognize revenue under IFRS, what would gross profit have been in 2016 and 2017 (rounded to the nearest thousand)?

Answers

Answer:

Explanation:

Bid price - $450,000

Contract cost  2016- $ 180,000

Contract cost in 2017 - $195,000

Gross profit  = $75,000

Estimated cost to complete at 2016 - $200,000

Percentage completion in 2016 - 180000/380000* 100 =47 %

Revenue recognized in 2016 - 47% * 450,000 = 211,500

Gross profit = 211,500- 180,000 = 31,500

2017

Revenue recognized - 53% = $238,500

Cost                                          $195,000

Gross profit                             $43,500

3)Completed contract method -

Income are recognized when contract is completed

2016 - No revenue generated / recorded

2017        

Revenue - 450,000

Cost to date - 375,000

Gross profit - 75,000

4) When using the cost recovery method under IFRS , an equal amount of income and revenue is recognized in the early life time of the project

2016

Income -  180000

Cost-        180000

Gross profit - 0

2017

Income -450000

cost  375,000

Gross profit - $75,000

                   

Mackalya is an office secretary at the "All American Office Products Company." This Company sells office supplies and office equipment. The secretary fills the copy machine with paper. Did the secretary use inventory as described in Chapter 4? If Mackalya did not use inventory, what did she use? What is inventory? Suppose Mackalya was out of paper in the office; so she went out into the sales area of the facility and took 8 boxes of paper from the sales area and brought them back to use in the office. What journal entry should be made. When a Company sells inventory, the dollars leave the inventory account and go to what account? Make sure to answer all parts of this question.

Answers

Answer:

1. Yes; Journal entry

2. Debit- Printing & Stationery Expense $160 (value for 8 boxes)

Credit- Cost of goods sold or Trading account A/c $160

3. Leaves to the cost of goods sold account

Explanation to:

1. Mackalaya used inventory. Remember, inventory is a term used to refer to all the merchandise (goods or products) a company has at the moment in stock.

2. The Journal entry to be made would be

Debit- Printing & Stationery Expense $160 and Credit this value to Cost of goods sold or Trading account A/c section of the Journal entry.

3. Remember, the cost of goods sold cares for all inventory sales, therefore it would be credited with value of the inventory item sold by the company.

Financial data for Safety Hire as of 30 June 2019 are:
Required:
Prepare an income statement for the month of June and a balance sheet in account format for Safety
Hire as at 30 June 2019

Answers

Answer:

Hi, the question you have given has missing data, however the following can be noted when dealing with the required.

Income statement for the month of June

The Income Statement contains Revenues and Revenue Expenditures

Step 1 ; Obtain the Sales Amounts

Step 2 : Obtain the Cost of Sales Amounts

Step 3: Obtain the Operating and Non-Operating Expenses Amounts

Step 4: In Vertical Format or T - Account Prepare and Calculate the Income or Loss

Income or Loss  = Sales - Cost of Sales - Expense

Balance sheet in account format for Safety  Hire as at 30 June 2019

Balance Sheet contains balances of Assets, Liabilities and Capital (Which included Income or loss calculated in Income Statement above)

The Accounting Equation must be borne in mind ; Assets = Liabilities + Capital

The Account Format Must have entries as follows :

Debit :

Enter Assets Balances

Credit:

Enter Liabilities Balances

Enter Capital Balances (Which include Income or loss calculated in Income Statement above)

Explanation:

Note key notes as explained above.

Other Questions
This country's fight for independence became a global affair and a proxy war during the Cold War.Select one:a. Algeriab. Liberiac. Angolad. Ghana someone plz answer this Two boats A and B Left a Port at the same time on different routes . B travelled on a bearing of 150 and A travelled on the North side of B . When A had travelled 8km and B had travelled 10km, the distance between the two boats was found to be 12km . Calculate the bearing of A's route from C. Which of the following identifies the reason why producers try to minimizecosts and maximize revenue?A. Product placementB. Government regulationsC. Market researchD. The profit motive The shelf life of a packed food follows a normal distribution, with a mean of 60.5 days and a standard deviation of 7.2 days. Rounded to the nearest hundredth, what is the probability that a package lasts fewer than 50 days? Brainliest). The roof of a castle tower is shaped like a cone. The base of the cone is 24 m across and the height is 16 m. The slant height of the roof, which is unknown, is the hypotenuse of the right traingle formed with the radius and the height of the cone. Question1) Sketch the roof of the castle tower. Label the known lengths as described and label the unknown length as x. (Question2) What is the slant height of the roof?. MAKE SURE YOU SHOW YOUR WORK. WILL MARK BRAINLIEST. For question B) you need to use the radius and you need to show your work. Will Mark Brainliest. 4. Find the volume of the prism.3 mm4 mm4 mm What is the identity of the element whose isotopes you have selected What were the first political parties in American history? Why did they develop? How did they increase sectionalism in the US? Solve for z.3 + 9z = 7 + 10zz = A proper cool-down period helps restore the body to normal levels, and also protects against injury*O TrueO False You are taking an online survey on your experience at Taco Bell. There are 5questions on the survey. For the first three questions you can answer Below Average,Average, or Above Average for each question. The last three questions you can respond witheither Agree or Disagree. How many total outcomes are there for this survey? When true-breeding tall plants are crossed with hybrid tall plants, the offspring are a. all tall plants b. all short plants c. some tall and some short plants d. not enough information has been given to answer this question What does the sentence "We turned to each other, our eyes looking from one friend to the next, and nodded as if we had shared a silent conversation" indicate in the passage above? A. They explain why they are breaking into a house. B. They have an argument about the decorations. C. They made an agreement without saying a word. What is the molarity of a solution that is made by adding 57.3 g of MgO to 500.0 mL of solution? Whats the correct answer for this? HELP MEMatch each description with the appropriate type of thermal energy transfer fromthe following list. Place your answer in the blank space given.i. radiation ii. convection iii. conductiona. requires direct contact between substances at different temperaturesb. based on currents flowing in fluids Please answer CORRECTLY !!!!! WILL MARK BRAINLIEST !!!! Distance between -13,10 and -7,2 Which ordered pair is a solution to the system of linear equations?2x + 3y= 6-3x + 5y = 10(0.2)(2.0)(3.2)(2.3)HELP