Answer:
1.$25
2. Deluxe $13,000
Basic $5,500
Explanation:
1. Calculation to determine the company's cost of technical support per customer service call.
Using this formula
Cost of technical support per customer service call = Expected cost / Expected customer service call
Let plug in the formula
Cost of technical support per customer service call = $150,000 / 10,000
Cost of technical support per customer service call = $25 per customer service call
Therefore the company's cost of technical support per customer service call is $25 per customer service call
2. Calculation to Assign technical support costs to each model using activity based costing
Model Activity Rate (a) Cost driver quantity incurred (b) Allocated Cost (a*b)
Deluxe $25 *520calls = $13,000
Basic $25* 220 calls = $5,500
Therefore the technical support costs assign to each model using activity based costing (ABC) is:
Deluxe $13,000
Basic $5,500
For the year, Logitom planned to sell 1,104,000 units at a $39 selling price. The marketing manager was asked to explain why budgeted revenue had not been achieved for that year. Investigation revealed the following information:
Actual sales volume 1,135,200 units
Actual selling price $38 per unit
Calculate the sales price variance, the sale volume variance, and the total revenue variance.
Answer:
Sales price variance = Actual quantity sold * (Actual price - Budgeted selling price)
Sales price variance = 1,135,200 * ($38 - $39)
Sales price variance = 1,135,200 * $1
Sales price variance = $1,135,200 Unfavorable
Sales volume variance = Budgeted selling price * (Actual quantity - Budgeted quantity)
Sales volume variance = $39 * (1,135,200 - 1,104,000)
Sales volume variance = $39 * 31,200
Sales volume variance = $1,216,800 Favorable
Total revenue variance = (Actual quantity * Actual price) - (Budgeted quantity * Budgeted price)
Total revenue variance = (1,135,200 * $38) - (1,104,000 * $39)
Total revenue variance = $43,137,600 - $43,056,000
Total revenue variance = $81,600 Favorable
you are planning to make monthly deposits of $140 into a retirement account that pays 13 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 25 years
Answer:
FV= $314,365.69
Explanation:
Giving the following information:
Monthly deposti= $140
Number of months= 25*12= 300
Interest rate= 0.13/12= 0.01083
To calculate the future value of the investment, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {140*[(1.01083^300) - 1]} / 0.01083
FV= $314,365.69
"Differentiation is not something hatched in marketing and advertising department ,nor it is limited to the catchalls to quality and service".Justify your answer.
Answer:
Differentiation opportunities can exist in activities all along an industry's value chain
Explanation:
-Product R&D activities that aim at improved product designs and performance features,expanded end uses and applications and selection, added user safety,greater recycling capability or enhanced environmental protection.
At the beginning of the period, the Assembly Department budgeted direct labor of $60,500 and property tax of $26,000 for 5,500 hours of production. The department actually completed 6,800 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. $ fill in the blank 1
Answer:
Total cost= $100,800
Explanation:
Giving the following information:
Property tax= $26,000
Direct labor= $60,500
Number of hours= 5,500
Property tax is a fixed cost. We need to calculate the hourly rate for direct labor:
Hourly rate= 60,500 / 5,500
Hourly rate= $11
Now, the flexible budget:
Fixed cost= 26,00
Variable cost= 11*6,800= 74,800
Total cost= $100,800
Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $840,000 of 25-year, 8% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions for the current year.
May 1 Issued the bonds for cash at their face amount.
Nov. 1 Paid the interest on the bonds.
Answer:
May 1
Dr Cash $840,000
Cr Bonds payable $840,000
Nov 1
Dr Interest expense $33,600
Cr Cash $33,600
Explanation:
Preparation of the journal entry to record May 1 Issued bonds for cash at their face amount
May 1
Dr Cash $840,000
Cr Bonds payable $840,000
Preparation of the journal entry to record Nov. 1 interest on the bonds.
Nov 1
Dr Interest expense $33,600
Cr Cash $33,600
(840,000*8%*6/12)
Doris purchased a zero coupon bond 5 years ago for $675.68. If the bond matures today and the face value is $1,000, what is the average annual compound rate of return (calculated semiannually) that she realized on her investment
Answer:
8.00%
Explanation:
The price of a zero-coupon bond is the present value of its face value since no coupon payments exist, hence, we can determine the semiannual rate of return using the formula below:
PV=FV/(1+r)^n
PV= $675.68
FV=$1000
r=semiannual rate of return=unknown
n=number of semiannual periods in 5 years=5*2=10
$675.68=$1000/(1+r)^10
$675.68*(1+r)^10=$1000
(1+r)^10=$1000/$675.68
$1000/$675.68 can be rewritten as ($1000/$675.68)^1
(1+r)^10=($1000/$675.68)^1
divide indexes on both sides by 2
1+r=($1000/$675.68)^(1/10)
r=($1000/$675.68)^(1/10)-1
r=4.00%(semiannual rate of return)
the annual rate of return(compounded semiannually)=4.00%*2=8.00%
A. treats financial indicators as the sole measurement of performance B. evaluates performance based on organizational participation in improving processes C. does not consider operational performance measures D. incorporates both financial and operational performance measures
Answer:
Option D: Incorporates both financial and operational performance measures
Explanation:
Balance Scorecard Concept
This was said to be published in 1992 by Kaplan and Norton. Thereafter, a book version was made in 1996.
It is also said to be a form of Traditional performance measurement that depends on external accounting data as out of date(old/out of use).
This approach aim to obtain 'balance' to the financial perspective.
Balanced Scorecard
This is simply regarded as a form of strategic planning and management system that is being used to merge or align business activities to the vision and strategy of the organization through the act of monitoring performance against strategic goals.
Importance of Balanced Scorecard
1. Improve organizational performance by measuring what matters
2. Increase focus on strategy and results
3. Align organization strategy with workers on a day-to-day basis.
3. Focus mainly on the drivers key to future performance
Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six months of 2010 are as follows: Month Unit Sales Month Unit Sales January 130,000 April 200,000 February 170,000 May 180,000 March 190,000 June 250,000Beginning inventory for 2010 is 40,000 units. The budgeted inventory at the end of a month is 40 percent of units to be sold the following month. Purchase price per unit is $6. Prepare a purchases budget in units and dollars for each month, January through May.
Answer:
Results are below.
Explanation:
To calculate the purchase for each month, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases January:
Production= 130,000
Desired ending inventory= (170,000*0.4)= 68,000
Beginning inventory= (40,000)
Total purchase in units= 158,000
Total purchase cost= 158,000*6= $948,000
Purchases February:
Production= 170,000
Desired ending inventory= (190,000*0.4)= 76,000
Beginning inventory= (68,000)
Total purchase in units= 178,000
Total purchase cost= 178,000*6= $1,068,000
Purchases March:
Production= 190,000
Desired ending inventory= (200,000*0.4)= 80,000
Beginning inventory= (76,000)
Total purchase in units= 194,000
Total purchase cost= 194,000*6= $1,164,000
Purchases April:
Production= 200,000
Desired ending inventory= (180,000*0.4)= 72,000
Beginning inventory= (80,000)
Total purchase in units= 192,000
Total purchase cost= 192,000*6= $1,152,000
Purchases May:
Production= 180,000
Desired ending inventory= (250,000*0.4)= 100,000
Beginning inventory= (72,000)
Total purchase in units= 208,000
Total purchase cost= 208,000*6= $1,248,000
Aaron is considering an investment that will pay $7,500 a year for five years, starting one year from today. This is an example of: a. a set of unequal cash flows.
b. an ordinary annuity.
c. a perpetuity.
d. an annuity due.
Answer:
This is an example of a
b. an ordinary annuity.
Explanation:
Aaron's cash inflows of $7,500, which he receives at the end of the year, is an ordinary annuity because it comprises a series of equal payments receipts received over a fixed length of time, and it occurs at the end of the year. If Aaron receives the series of payments at the beginning of each period and not at the end, it will be described as an annuity due. If Aaron receives the series of payment indefinitely, it is called a perpetuity.
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $15,000,000, payable on February 12, 2022, to holders of record as of January 8, 2022.
Required:
a. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
b. Use the horizontal model for the declaration of dividends on December 22, 2021. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
c. Use the horizontal model for the payment of dividends on February 12, 2022. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Answer:
Permabilt Corp.
Financial Statement Effects:
Balance Sheet Statement of
Assets = Liabilities + Equity Cash Flows
a. January 1, 2019:
Cash $26,250,000
Common stock $26,250,000 FA cash inflow
b. December 22, 2021:
Dividends -$15,000,000
Dividends Payable $15,000,000
c. February 12, 2022:
Dividends Payable -$15,000,000
Cash -$15,000,000 FA cash outflow
Total $11,250,000 = 0 + $11,250,000
Explanation:
a) Data and Analysis:
January 1, 2019
Cash $26,250,000 Common stock $26,250,000
Cash $56,700,000 7.5% Cumulative Preferred Stock $54,000,000 Additional Paid-in Capital - Preferred $2,700,000
December 22, 2021:
Preferred Stock Dividends $4,050,000 ($54,000,000 * 7.5%)
Common Stock Dividends $10,950,000 ($15,000,000 - $4,050,000)
Dividends Payable $15,000,000
February 12, 2022:
Dividends Payable $15,000,000
Cash $15,000,000
g Which of the following is the first step of the planning phase of a strategic management process? A. establishment of the company's mission B. assessment of the external environment that the firm will face in the future C. analysis of the firm's relative capabilities to deal successfully with the external environment D. seeking alternative strategies using competitive analysis
Answer:
A. establishment of the company's mission
Explanation:
Strategic management is defined as the steps that a company continuously uses to assess and monitor the abilities not a company to meet up with its goals and objectives. As the business environment changes the organisation will need to make adjustments to stay competitive.
During the planning stage of strategic management there is a need for establishment of a company's mission first of all. This communicates to the employees the business's goals, which helps in setting priorities, focus energy, and strengthen operations in such a way that employees and other stakeholders are working toward a common outcome
Corner Store posts on its website an offer of a reward for information leading to the apprehension of a certain criminal. This offer could normally be terminated by:______.
A) a post on the website.
B) a notice in the local newspaper.
C) a sign in the brick and mortar store.
D) a sign posted in a police station.
Answer:
a sign posted in a police station ✓
Which mineral resource is used in chemical industry?
Answer:
Carbon feedstocks – oil, gas, coal, renewables, and CO2 – are the base of organic chemistry that creates about 90% of the value of the chemical industry. Some inorganic feedstocks are regarded as critical: Noble metals, some rare earth elements, indium, lithium, phosphate, etc.
London New York Zurich Hong Kong Bid/Ask Quotes for CHF $0.7464-71 $0.7469-76 $0.7471-74 $0.7460-70 In order to take advantage of locational arbitrage, a currency speculator should buy CHF from the______ dealer and sell CHF to the ______ dealer. Group of answer choices Hong Kong; Zurich London; New York Zurich; Hong Kong New York; Hong Kong
Answer:
The correct option is Hong Kong; Zurich.
Explanation:
Giveen:
Currency dealer in London New York Zurich Hong Kong
Bid/Ask Quotes for CHF $0.7464-71 $0.7469-76 $0.7471-74 $0.7460-70
Locational arbitrage can be described as the act of a currency speculator attempting to profit from tiny exchange rate discrepancies across several banks in different locations for a specific currency pair.
Since it is possible for the currency speculator to buy at Ask price from a bank in one location and sell it to another bank at bid price in another location, he will try to identify where he can buy at the lowest price to go and sell in another location with the highest price.
From the table above, Hong Kong has the lowest Bid/Ask Quotes for CHF of $0.7460-70 while Zurich has the highest Zurich of $0.7471-74. Therefore a currency speculator should buy CHF from the Hong Kong dealer and sell CHF to the Zurich dealer.
Therefore, the correct option is Hong Kong; Zurich.
The marketing team for Lots-o-Chocolate wants to understand the effectiveness of the different components of its digital marketing campaign and put more resources toward its three top-performing sites for ads. How can the marketing team use marketing metrics and marketing control to achieve their objective
Answer:
The top 3 campaigns ( sites for ads ) with the highest values of the metrics mentioned below should be picked that way the team will achieve their objective.
Explanation:
For a marketing team To understand the effectiveness of the different components of its campaigns there are certain factors/metrics they should consider/lookout for in each of the various components and they are
i) conversation rate of the various components of the marketing campaigns
ii) Number of clicks/site visits from the various components
iii) Reach of each component to potential customers or returning customers.
When these metrics are checked the, The top 3 campaigns ( sites for ads ) with the highest values of the metrics should be picked.
Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question.
The Purple Tulip Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $790 for six months of advertising. Purple Tulip Law Firm recorded $790 in the Prepaid Advertising account.
If Purple Tulip Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28?
Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $2,100
May 5: Received and paid electricity bill, $90
May 9: Received cash for meals served to customers, $2,520
May 14: Paid cash for kitchen equipment, $3,770
May 23: Served a banquet on account, $1,900
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $2,290
May 31: Recorded depreciation for May on kitchen equipment, $560 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May?
If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May?
Answer:
1. Cash Basis $790
Accrual basis $263
2. Cash method $(3,440)
Accrual method $780
Explanation:
1. Calculation to determine how much advertising expense would they have recorded for the two months ending February 28
UNDER THE CASH BASIS, the Law Firm will record $790 of advertising expense for the two months ending February 28.
UNDER THE ACCRUAL BASIS, the Law Firm will record $263 ($790/6*2) of advertising expense for the two months ending February 28.
Therefore the amount of advertising expense l would they have recorded for the two months ending February 28 is:
Cash Basis $790
Accrual basis $263
2a. Calculation to determine how much net income (loss) would they have recorded for the month of May If Sweet Catering had recorded transactions using the Cash method
Using this formula
Net income (loss) using cash method = Meals served to customer – Rent paid – Electricity bill – Cash paid for kitchen equipment
Let plug in the formula
Net income (loss) using cash method= $2,520 -$2,100-$90-$3,770
Net income (loss) using cash method= $(3,440)
Therefore If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May is $(3,440)
2b. Calculation to determine how much net income (loss) would they have recorded for the month of May If Sweet Catering had recorded transactions using the Accrual method
Using this formula
Net income (loss) using accrual method = Meals served to customer+ Served a banquet on account – Rent expense – Electricity bill – Salary expense – Depreciation
Let plug in the formula
Net income (loss) using accrual method= $2,520+$1,900-($2,100/3)-$90-$2,290-$560
Net income (loss) using accrual method=$2,520+$1,900-$700-$90-$2,290-$560
Net income (loss) using accrual method=$780
Therefore If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May is $780
Leslie purchased 100 shares of GT stock on June 7th. Marti purchased 100 shares of GT stock on Monday, July 9th. GT declared a dividend on June 20th to shareholders of record on July 11th that is payable on August 1st. Which one of the following statements concerning the dividend paid on August 1st is correct given this information?A. Both Marti and Leslie are each entitled to one-half of the dividend amount. B. Neither Leslie nor Marti are entitled to the dividend. C. Leslie is entitled to the dividend but Marti is not. D. Marti is entitled to the dividend but Leslie is not. E. Both Marti and Leslie are entitled to the dividend.
Answer:
GT Stock
The correct statement concerning the dividend paid on August 1st is:
E. Both Marti and Leslie are entitled to the dividend.
Explanation:
a) Data:
June 7th, Leslie purchased 100 shares of GT stock
July 9th, Marti purchased 100 shares of GT stock
July 20th Dividend is declared (dividend declaration date)
July 11th = date of record for dividend payment
August 1st = date of dividend payment
b) Analysis: Both Leslie and Marti purchased shares of GT stock prior to the date of record. The date of record is when note is taken of the stockholders who are entitled to dividend. It is one of the three important dates concerning dividend. The other dates are the declaration date and the payment date.
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $31,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units.
Required:
a. Which method will result in the highest net income in year 2?
b. Does this higher net income mean the machine was used more efficiently under this depreciation method?
Answer:
Straight line depreciation
no
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(31,000 - 3000) / 5 = $5,600
depreciation expense each year is 5600
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
(3000 / 10,000) x (31,000 - 3000) = 8400
Double declining =
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
2/5 x 31000 = 12400
year 2 = 2/5 x(31,000 - 12400) = 7440
An industry consists of three firms with sales of $355,000, $825,000, and $435,000.
a. Calculate the Herfindahl-Hirschman index (HHI).
Instruction:
Enter your response rounded to the nearest integer.
b. Calculate the four-firm concentration ratio (C4).
c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $355,000 and $435,000
Answer:
Calculating Herfindahl-Hirschman Index and Four-Firm Concentration Ratio:
a. Herfindahl-Hirschman index (HHI) = 3,814
b. The four-firm concentration ratio (C4) = 1
c. If the two firms with sales of $355,000 and $435,000 merged, the resulting HHI would increase by 1,723 to 5,537. The post-merger HHI now exceeds that allowed under the Guidelines (2,500). The increase in HHI is more than that permitted under the Guidelines (200), the merger is likely to be blocked by the Department of Justice.
Explanation:
a) Data and Calculations:
Sales of three firms in an industry:
Sales Industry Share
Firm A sales = $355,000 22% ($355,000/$1,615,000 * 100)
Firm B sales = 825,000 51% ($825,000/$1,615,000 * 100)
Firm C sales = 435,000 27% ($435,000/$1,615,000 * 100)
Total sales = $1,615,000
Herfindahl-Hirschman index (HHI) = 3,814 (22² + 51² + 27²)
Four-firm concentration ratio (C4) = Sales of the four largest firms/Industry sales = $1,615,000/$1,615,000
If the two firms with sales of $355,000 and $435,000 were to merge, the new Herfindahl-Hirschman index (HHI) = 5,537(49² + 51²)
Increase in HHI as a result of the merger = 1,723
On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stock 200,000 Retained earnings 660,000 Total stockholders’ equity $ 1,360,000 Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split.
Answer:
(1) See below for the updated stockholders' equity section after the split.
(2) Number of shares outstanding after the split = 150,000
Explanation:
(1) Prepare the updated stockholders' equity section after the split.
A stock split occurs when a company's board of directors decides to raise the number of outstanding shares by issuing additional shares to present shareholders. With stock split, no fund will be generated but common stock par value will fall after the split to make the Common stock total value and Common stock paid-in capital in excess of par value to remain the same. Therefore, the updated stockholders' equity section after the split will be as follows:
Sharper Corporation
Stockholders’ Equity Section of the Balance Sheet
Jun 30
Details Amount ($)
Common stock - $3.3333 par value, 120,000 shares
authorized, 150,000 shares issued and outstanding 500,000
Paid-in capital in excess of par value, common stock 200,000
Retained earnings 660,000
Total stockholders’ equity 1,360,000
(2) Compute the number of shares outstanding after the split.
For a 3-for-1 stock split, we have:
Number of shares outstanding after the split = Number of shares outstanding before the split * 3 = 50,000 * 3 = 150,000
By implication, we have:
Common stock par value after the split = Common stock par value before the split / 3 = $10 / 3 = $3.3333 per share
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for its common stock to launch the business. On December 31, the company’s records show the following items and amounts. Cash $ 7,950 Cash dividends $ 3,070 Accounts receivable 17,450 Consulting revenue 17,450 Office supplies 4,200 Rent expense 4,530 Office equipment 19,060 Salaries expense 8,090 Land 46,010 Telephone expense 880 Accounts payable 9,430 Miscellaneous expenses 690 Common stock 85,050 Also assume the following: The owner’s initial investment consists of $39,040 cash and $46,010 in land in exchange for its common stock. The company’s $19,060 equipment purchase is paid in cash. Cash paid to employees is $2,860. The accounts payable balance of $9,430 consists of the $4,200 office supplies purchase and $5,230 in employee salaries yet to be paid. The company’s rent expense, telephone expense, and miscellaneous expenses are paid in cash. No cash has yet been collected on the $17,450 consulting revenue earned.
Using the above information prepare a December statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Answer:
$3,260
Explanation:
Preparation of December statement of cash flows for Ernst Consulting
ERNST CONSULTING Income Statement
For Month Ended October 31
REVENUES
Consulting fees earned $17,450
Total revenues $17,450
EXPENSES
Rent expense $4,530
Salaries expense $8,090
Telephone expense $880
Miscellaneous expenses $690
Total expenses $14,190
Net income $3,260
($17,450-$14,190)
Therefore December statement of cash flows for Ernst Consulting will be $3,260
Petro Motors Inc. (PMI) produces small gasoline-powered motors for use in lawn mowers. The company has been growing steadily over the past five years and is operating at full capacity. PMI recently completed the addition of new plant and equipment at a cost of $7.800.000, thereby increasing its manufacturing capacity to 100.000 motors annually. The addition to plant and equipment will be depreciated on a straight-line basis over 10 years. Sales of motors were 60.000 units prior to the completion of the additional capacity. Cost records indicated that manufacturing costs had totaled $60 per motor, of which $48 per motor was considered to be variable manufacturing costs. PMI has used the volume of activity at full capacity as the basis for applying fixed manufacturing overhead. The normal selling price is $80 per motor, and PMI pays a 5% commission on the sale of its motors. LawnPro.com offered to purchase 35,000 motors at a price of $60 per unit to test the viability of distributing lawn mower replacement motors through its website. PMI would be expected to produce the motors, store them in its warehouse, and ship individual motors to LawnPro.com customers. As orders are placed directly through the LawnPro.com website, they would be forwarded instantly to PMI. No commissions will be paid on this special sales order, and freight charges will be paid by the customer purchasing a motor.
Required:
a. Calculate the cost per motor, for cost accounting purposes, after completion of the additional plant capacity.
b. Identify all the relevant costs that PMI should consider in evaluating the special sales order from LawnPro.
Answer:
Petro Motors, Inc. (PMI)
1. The cost per motor, for cost accounting purposes, after completion of the additional plant capacity is:
= $63
2. All the relevant costs that PMI should consider in evaluating the special sales order from LawnPro include:
Variable manufacturing costs
Storage costs (which is variable)
Administration costs (which is also variable)
Explanation:
a) Data and Calculations:
Cost of additional plant and equipment = $7,800,000
New annual production capacity = 100,000
Depreciation period on a straight-line basis = 10 years
Additional annual fixed cost = $780,000 ($7,800,000/10)
Old Capacity New Capacity
Production capacity 60,000 100,000
Selling price per motor $80 $
Sales commission (5%) (4)
Net selling price per motor $76
Variable cost per unit $48 $48
Total variable cost $2,880,000 $4,800,000
Annual fixed costs 720,000 720,000
Depreciation on the new plant 780,000
Total cost $3,600,000 $6,300,000
Production capacity 60,000 100,000
Cost per unit $60 $63
Your credibility is your capability of being believed because you are reliable and worthy of confidence.
yes, agreed and proven.
What is the objective of finacial reporting
THIS IS YOUR ANSWER
MARKS ME AS BRAINLIST
The December 31, 2009, balance sheet of Anna’s Tennis Shop, Inc., showed current assets of $2,584 and current liabilities of $1,191. The December 31, 2010, balance sheet showed current assets of $2,644 and current liabilities of $1,048. What was the company’s 2010 change in net working capital, or NWC?
Answer: ($203)
Explanation:
The company’s 2010 change in net working capital will be calculated thus:
Net working capital = current assets - current liabilities
For 2009, net working capital will be:
= $2,584 - $1,191
= $1393.
For 2010, net working capital will be:
= $2,644 - $1,048
= $1596
Change in net working capital will be:
= $1393 - $1596
= ($203)
Suppose that the price of a good decreased. The substitution effect shows the change in consumption for all goods in reaction to a change in _____________ relative prices income preferences holding _____________ purchasing power utility constant.
Answer:
The correct answer is "relative prices; utility". A further explanation is provided below.
Explanation:
The conditions of a connection or bond between variables customer demand or perhaps the proportion of such a given cost of production to the normal distribution of so many other products available throughout the marketplace.Individual's pleasure is usually measured by the consumption of that same goods and services.Thus the above is the correct answer.
Using the AS-AD and IS-LM models, show the effects of an increase in consumer confidence on the position of the AD, AS, IS, and LM curves in the short run and in the medium run. Precisely label all axes and curves to receive full credit. Label the short-run equilibrium and medium-run equilibrium with SR and MR, respectively.
Answer: hello your question has some missing information below is the missing information
Suppose the economy begins with output equal to its natural level. Then there is an increase in consumer confidence and households attempt to consume more for a given level of disposable income.
answer :
Attached below
Explanation:
IS-LM modeling curves intersects and it also defines the value of r and Y where r ( rate of interest ) Y( output level )
The AS-AD modeling is in equilibrium where aggregate demand curve and short run and long run aggregate supply curves intersects each other defining P and Y
p ( price level ) , Y ( output level )
Note : Increase in aggregate demand shifts IS outward , raises interest rate and output level
The hyrbrid automobile grew out of automobile designers' realization that there were changes in the legal environment regarding automobile emissions to which they need not comply.
a. True
b. False
Answer: True
Explanation:
Hybrid cars use both electricity and gasoline motors and engines. The concept behind this is that the electricity gives the car better acceleration and the gasoline then maintains it.
Developed countries tax gasoline due to its emissions but don't really tax electricity. On realizing this, designers recognized that they could combine both gasoline and electricity to create hybrids that would decrease the cost of taxation of using gasoline.
Johanna's Jams and Jellies is looking to be set up on QuickBooks Online. Johanna wants to be able to set up specific roles for the 15 different users in her company, including providing access to her CPA, outsourced CFO, and an outside integration specialist and ProAdvisor. Which version(s) of Quickbooks Online would allow her to accomplish this?
a. QuickBooks Online Plus and Advanced
b. QuickBooks Online Essentials, Plus and Advanced
c. QuickBooks Online Advanced
d. QuickBooks Online Simple Start, Essentials, Plus and Advanced
Answer: C. QuickBooks Online Advanced
Explanation:
With the QuickBooks Online Advanced, Johanna can be bake to do batch transactions faster even when there's an increase in workload. In the QBO Advanced, there are batch transaction entry for sales, checks, receipts, invoices, etc.
Since Johanna wants to be able to set up specific roles for the 15 different users in her company, including providing access to her CPA, outsourced CFO, and an outside integration specialist and ProAdvisor, the version of Quickbooks Online that would allow her to accomplish this is the QuickBooks Online Advanced.
20. WACC and NPV [LO3, 5] Sommer, Inc., is considering a project that will result
in initial aftertax cash savings of $2.3 million at the end of the first year, and these
savings will grow at a rate of 2 percent per year indefinitely. The firm has a target
4.6 percent. The cost-saving proposal is somewhat riskier than the usual project the
firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. Under what
circumstances should the company take on the project?