Answer:
December 21, 2016
DR Interest expense....................................................$10,889.33
CR Discount on notes payable.......................................................$10,889.33
Explanation:
The interest to be paid will be charged on the present value of the note in 2016.
Present value of $200,000 = 200,000 / ( 1 + 8%)^5
= 200,000/1.4693280768
= $136,116.64
Interest to be paid;
= 136,116.64 * 8%
= $10,889.33
Mary, Ann, and Beth are partners. Their capital balances are, ; ; and , respectively. As per the partnership agreement, Mary receives a profit share of 2/9; Ann has 4/9; and Beth has 3/9. Beth withdraws from the partnership by receiving . What will be the impact of this transaction on the journal entries?
Complete Question:
Mary, Ann, and Beth are partners. Their capital balances are $23,000, $41,000 and $30,000 respectively As per the partnership agreement Mary receives a profit share of 2/9, Ann has 4/9, and Beth has 39 Beth withdraws from the partnership by receiving $23.000 What will be the impact of this transaction on the journal entries?
A. Cash will be debited for $30,000
B. Mary. Capital will be debited for S 7,000
C. Ann, capital will be credited for $7,000
D. Beth, Capital will be debited for $30,000
Answer:
D. Beth, Capital will be debited for $30,000
Explanation:
The entry would be reduction in capital by $30,000 because his investment is sold for $23,000 and the remainder $7,000 would be profit for two remaining partners and would be shared with their respective ownership.
The entry is as under:
Dr Beth Capital Account $30,000
Cr Mary Capital A/c $2,333 (1/3) of $7,000
Cr Ann Capital A/c $4,667 (1/3) of $7,000
Cr Cash Account $23,000
Hence the option D is correct here.
Option A is incorrect because cash wasn't debited with.
Option B is incorrect because Mary capital wasn't debited, it was credited.
Option C is also incorrect because Ann's capital was credited but with (2/3) share.
What is crisis management? What distinguishes crisis management from management during ordinary business conditions? What are some principles for leading companies effectively during a crisis?
Explanation:
Crisis management corresponds to the process that managers will have to seek solutions for an organization to go through a period or a situation where there are negative risks to the business.
Crisis management is different from management during normal business conditions, since this is not a management whose focus is to generate positive results by achieving the objectives and goals, crisis management is the planning of action plans aimed at reduce or eliminate adverse situations in a company.
A good leader in a crisis management situation will have to essentially improve his communication skills and strategies, so that the negative effects of anti-crisis actions do not substantially affect employees and their rights, as it is a fact that many times when managing a crisis, the leader will need to reduce the headcount, or cut costs that can mean reduced wages or benefits. Therefore, in order to go through this difficult phase, it is necessary to plan, direct and assertive communication that encourages employees and motivates them to join forces so that integrated people can make the organization recover from the crisis.
What is the net present value of a project that has an initial cash outflow of $34,900 and the following cash inflows? The required return is 15.35 percent.
year cash flow
1 $12,500,
2 19,700,
3 0,
4 10,400.
A. -3,383.25
B. -2,784.62
C. - 2481.53
D. 52,311.08
E. 66,416.75
Answer:
NPV = $-3,383.25
Explanation:
The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
PV of cash inflow =
$12,500, × 1.1535^(-1) + 19,700, × 1.1535^(-2) + 0× 1.1535^(-3) + 10,400.× 1.1535^(-2) = 31,516.7476
Initial,cost = 34,900
NPV = 31,516.7476 - 34,900 = -3,383.25
NPV = $-3,383.25
The net present value of the project is $-3,383.25.
Net present value is the present value of after-tax cash flows from an investment less the amount invested. It is a capital budgeting method. If the NPV is negative, it means that the project is not profitable.
Cash flow in year 0 = $-34,900 Discounted cash flow in year 1 = $12,500 / 1.1535 = $10,836.58 Discounted cash flow in year 2 =$19700 / 1.1535² = $14,805.77 Discounted cash flow in year 3 = 0 Discounted cashflow in year 4 = 10,400 / 1.1535^4 = $5,874.39Sum of discounted cash flows = $31,516.75
NPV = $-34,900 + $31,516.75 = $-3,383.25
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A manufacturer of microwaves has discovered that female shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Male shoppers generally value microwaves more than women do and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto-defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $82 and one with auto-defrost at $148, while women value a simple microwave at $66 and one with auto-defrost at $82.
Suppose the manufacturer is considering three pricing strategies:
1. Market a single microwave, with auto-defrost, at $69, to both men and women.
2. Market a single microwave, with auto-defrost, at $121, to only women.
3. Market a simple microwave to men, at $52. Market a microwave, with auto-defrost, to women at $103.
For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, the individual will purchase the microwave.
Use the following table to indicate the revenue from men, the revenue from women, and the total revenue from each strategy.
Strategy Revenue from Revenue from Total Revenue from Strategy
Men Women
1. Auto-Defrost
Microwave only at $82
2. Auto-Defrost Microwave
only at $148
3. Simple Microwave at $66,
Auto-Defrost Microwave at $131
Suppose that, instead of one man and one woman, the market for this microwave consisted entirely of men. For simplicity, you can assume this means that there are two men, and no women. Under these conditions, pricing strategy_____would maximize revenue for the manufacturer.
Answer:
For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, the individual will purchase the microwave.
If the number of male and female buyers is the same, then the best pricing strategy is to offer 2 different microwaves (option 3). One simple and cheap microwave for women and one with auto-defrost for men.Strategy Revenue Revenue Total Revenue
from men from women from strategy
1. Auto-Defrost $82 $82 $164
Microwave only
at $82
2. Auto-Defrost $148 $0 $148
Microwave only
at $148
3. Simple $131 $66 $197
Microwave at $66,
Auto-Defrost
Microwave at $131
Suppose that, instead of one man and one woman, the market for this microwave consisted entirely of men. For simplicity, you can assume this means that there are two men, and no women. Under these conditions, pricing strategy 2. Auto-Defrost Microwave only at $148 would maximize revenue for the manufacturer.
Mark and James established a partnership to deal in textiles. Both of them contributed equal capital to the partnership. However, two years later James sold his share of the firm to Mike. Which of the following is permissible?
A) Mark can recover damages from James for selling his interest in the partnership
B) Mike can claim nondisclosure and reclaim the money from James.
C) Mark can recover damages from Mike for buying the James' share.
D) James is entitled to keep the money he received from Mike.
Answer: D. James is entitled to keep the money he received from Mike.
Explanation:
From the question, we are informed that Mark and James established a partnership to deal in textiles. Both of them contributed equal capital to the partnership and that two years later James sold his share of the firm to Mike.
The option that is permissible is that James is entitled to keep the money he received from Mike.
What is the cost of equity for the TMB Corporation based on the following information? Risk premium = 5% Risk free rate = 4% TMB beta: 1.50
Answer:
11.50%
Explanation:
The computation of the cost of equity is shown below:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4% + 1.5 × 5%
= 4% + 7.5%
= 11.50%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
What insight does ROI give into investment performance? Is it acceptable to lose product on one product, if that product is vital to the sale of an extremely profitable product? Please explain why?
Answer:
ROI = net income / investment
Investors will always prefer a higher ROI, as long as the project's risk doesn't increase due to the higher ROI. E.g. a very low risk project might have a discount rate = 5-6%, while a very risky project might have a discount rate of over 20-30%. The same applies to any type of investment, relatively secure projects or investments will relatively higher ROIs are extremely desirable. But as more people want to invest in them, the returns should fall to a more "normal" level.
Sometimes, you can lose when selling one product if that results in higher gains from selling another product. E.g. on my job we sell paper towels and napkins. Paper towels generally yield very high gains, but napkins usually result in a loss or at best a break even situation. But we use paper napkins as an "incentive" to sell paper towels. If we look at total volume of units, we sell much more paper napkins than paper towel, but paper towel sales yield 30 times more profit (on a per $ basis) than napkins. So we offer our clients a combo of a discount on napkins if they purchase a certain amount of paper towels.
A stock has a beta of 1.11, the expected return on the market is 10.5 percent, and the risk-free rate is 4.7 percent. What must the expected return on this stock be?
Answer:
The expected return is 11.14%
Explanation:
Given the beta of the stock = 1.11
The expected return = 10.5 %
The risk-free interest rate = 4.7 %
Now we have to find the expected return by using all the above information. Below is the calculation.
Expected return = risk-free interest rate + Beta value × (Market rate- risk-free rate )
Expected return = 4.7 + 1.11 × (10.5-4.7)
Expected return = 11.14% (Approx).
the difference between the actual labor rate and the standard labor rate, multiplied by the actual labor hours is the
Answer: Direct Labor Rate Variance
Explanation:
The difference between the actual labor rate and the standard labor rate, multiplied by the actual labor hours is referred to as the Direct Labor Rate Variance.
It should be noted that the labor rate variance in an organization is the responsibility of the human resource department.
Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance.
Old Equipment Cash
Book Value Fair Value Received
Equipment A $ 74,000 $ 81,300 $ 11,300
Equipment B $ 61,600 $ 54,800 $ 10,300
For Equipment B, Pensacola would record a gain/(loss) of:________.
a. $5,300
b. $(6,800)
c. $(7,800)
d. none of these answer choices are correct
Answer:
b. $(6,800)
Explanation:
The computation of the gain or loss for the equipment B is shown below:
= Fair value - book value
where,
Fair value = $54,800
And, the book value = $61,600
Now placing these values to the above formula
So, the gain or loss i.e. to be recorded is
= $54,800 - $61,600
= $6,800 loss
as the fair value is less than the book value so the loss of $6,800 should be recorded
Kosakowski Corporation processes sugar beets in batches. A batch of sugar beets costs $91 to buy from farmers and $17 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $48 or processed further for $38 to make the end product, industrial fiber that is sold for $86. The beet juice can be sold as is for $67 or processed further for $45 to make the end product, refined sugar that is sold for $134. How much more profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar
Answer:
$29
Explanation:
The computation of the more profit or loss via processing one batch of sugar to the end products is shown below:
= Total sale in the case when it is processed further - processing cost
where,
Total sale in the case when it is processed further is
= $86 + $134
= $220
And, the processing cost is
= $91 + $17 + $38 + $45
= $191
So, the profit is
= $220 - $191
= $29
Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions
Answer: cost based pricing
Explanation:
Cost-based pricing is when the pricing is based on the production cost, the manufacturing cost and also the distribution cost.
The price of such good or service will be derived when a fraction of the manufacturing costs is added to the selling price. This sum will be required to generate the profit for the product.
Even though it is easy to calculate, it ignores demand and competitive conditions.
Where would you go to add a new vendor or find the link to import a vendor list into QuickBooks Online?Choose the most viable method from the options below, although other methods may be available.A. The New vendor button in the Vendors tab of the Sales screenB. The New vendor button in the Vendors tab of the Expenses screenC. The New vendor button in the Expenses tab of the Expenses screenD. The Enter vendor details button in the Expenses tab of the Sales screen
Answer: The New vendor button in the Vendors tab of the Expenses screen
Explanation:
From the question, we are told to choose the most appropriate option where one will go to add a new vendor or locate the link that can be used to import a vendor list into QuickBooks Online.
From the options given, the answer is the new vendor button in the vendors tab of the expenses screen.
Suppose the minimum possible price of constructing homes is $50 per square foot. As a result of a sharp drop in the demand for home construction, the equilibrium price of home construction falls to $40 per square foot. Assuming the home construction industry is perfectly competitive and there are no specialized inputs, firms will:
Answer:
some firms will exit the industry
Explanation:
if the minimum possible price of constructing homes = $50 per square foot, it means that the marginal cost of building a square foot is $50. If the selling price is less than the marginal cost, then some firms will inevitably have to exit the industry. No firm can remain at an industry when its marginal costs are higher than its marginal revenue.
As supply lowers, the equilibrium price should increase, and some firms might return to the industry.
Some countries have had high inflation for a long time. Others have had low or moderate inflation for a long time. Which of the following, at least in theory, could explain why some countries would continue to have high inflation?
a. High inflation countries have relatively small sacrifice ratios and so see no need to reduce inflation.
b. Inflation reduction works best when it is unexpected, and people in high inflation countries would quickly anticipate any change in monetary policy
c. In a country where inflation has been high for a long time, people are likely to have found ways to limit the costs.
d. All of the above are correct.
Answer:
d. All of the above are correct.
Explanation:
Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time. High inflation in a country is a function of the rate at which the goods and services increases. From the options, it shows reasons why some countries would continue to have high inflation.
"An older customer, age 63, who is in the lowest tax bracket, seeks an investment that will give him an income stream. The BEST recommendation would be:"
Answer: AAA Corporate Bond
Explanation:
For an older customer, age 63, who is in the lowest tax bracket sho seeks an investment that will give him an income stream, the best recommendation is the AAA Corporate bond.
AAA is simply the highest rating that's assigned to a bond by major credit rating agencies. It should also be noted that they possess high creditworthiness.
Parwin Corporation plans to sell 43,000 units during August. If the company has 18,000 units on hand at the start of the month, and plans to have 19,000 units on hand at the end of the month, how many units must be produced during the month
Answer:
Production= 44,000 units
Explanation:
Giving the following information:
Sales= 43,000
Beginning inventory= 18,000 units
Desired ending inventory= 19,000 units
To calculate the production for the period, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 43,000 + 19,000 - 18,000
Production= 44,000 units
Nexus Industries uses a standard costing system to apply manufacturing costs to its production process. In May, Nexus anticipated producing units with fixed manufacturing overhead costs allocated at per direct labor hour with a standard of direct labor hours per unit. In May, actual production was units and actual fixed manufacturing overhead costs were . What was Nexus' fixed manufacturing overhead volume variance in May?
Answer:
$33,700 (Favorable)
Explanation:
Note: Figures are not inputted. The missing figures have been figured out as below.
"Nexus industries uses a standard costing system to apply manufacturing costs to its production process. In May nexus anticipated 2700 units with fixed manufacturing overhead costs allocated at $8.40 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3400 units and actual fixed manufacturing overhead cost were $23000. What was nexus fixed manufacturing overhead volume variance in May?"
Solution:
Budgeted fixed overhead costs = Units * Direct labor cost * Standard Direct Labor hours per unit
= 2,700 units * $8.40 * 2.5
= 2,700 units * 21
= $56,700
Fixed manufacturing overhead volume variance = Actual fixed overhead cost - Budgeted fixed manufacturing overhead costs
When Actual fixed overhead = $23,000 , Budgeted fixed overhead costs = $56,700
Fixed manufacturing overhead volume variance = $23,000 - $56,700
= $33,700 (Favorable) .
Peavey Enterprises purchased a depreciable asset for $24,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,500, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? a. $15,125.b. $4,583.c. $22,000.d. $18,333.e. $5,500.
Answer:
a. $15,125
Explanation:
The computation of the accumulated depreciation is shown below:
The formula i.e. be used for the yearly depreciation expense using the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
For the first year
= ($24,500 - $2,500) ÷ (4 years)
= ($22,000) ÷ (4 years)
= $5,500
The 9 months depreciation is $4,125
For the second year
= ($24,500 - $2,500) ÷ (4 years)
= ($22,000) ÷ (4 years)
= $5,500
For the third year
= ($24,500 - $2,500) ÷ (4 years)
= ($22,000) ÷ (4 years)
= $5,500
Now the accumulated depreciation is
= $4,125 + $5,500 + $5,500
= $15,125
The amount of accumulated depreciation on this asset on December 31, Year 3 is a. $15,125.
Depreciable Value = $24,500-$2500
Depreciable Value = $22,000
Per Year depreciation = $22000/4
Per Year depreciation= $5500
Depreciation for year 1 = $5500 x 9/12
Depreciation for year 1 = $4125
Depreciation for year 2 = $5500
Depreciation for year 3 = $5500
Accumulated depreciation on 31st December year 3 = $4125+$5500+$5500
Accumulated depreciation on 31st December year 3= $15,125
Inconclusion the amount of accumulated depreciation on this asset on December 31, Year 3 is a. $15,125.
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You purchased 1,150 shares of stock in Natural Chicken Wings, Inc., at a price of $43.46 per share. Since you purchased the stock, you have received dividends of $1.01 per share. Today, you sold your stock at a price of $46.71 per share. What was your total percentage return on this investment?
Answer:
9.80%
Explanation:
1,150 shares of stock in Natural chicken wings incorporation was purchased at a price of $43.46 per share
The dividend received is $1.01 per share
Today the stock is sold at a price of $46.71
Therefore, the total percentage return on this investment can be calculated as follows
= ($46.71-$43.46+$1.01/$43.46) × 100
= $4.26/$43.46 × 100
= 0.0980× 100
= 9.80%
Hence the total percentage return on this investment is 9.80%
Which type of market is the least likely to have an official currency? closed economy command economy traditional economy mixed market economy
Answer:
It is called "traditional economy" to the set of ideas, systems and economic planning of a basic and customary cut, where decisions are made through a hierarchical structure where the group leader decides based on what he considers as his own and correct , based on religious, traditional or common sense issues.
This type of economy, characteristic of the totalitarian regimes of old, is not used today. Traces of this type of organization are only found in tribal societies in Africa and Asia.
The type of market is the least likely to have an official currency is traditional economy.
What is traditional economy?A traditional economy is an economic system that is rooted in a culture, tradition and needs rather than being centred on profit motive.
The traditional economy is known to be original economic system in which it has factors that helps in shaping the services and goods in terms what the economy produces.
The factors that may influence traditional economy are :
CustomsBeliefsTraditionsCultureHence, the type of market is the least likely to have an official currency is traditional economy.
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Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.4 ounces $ 3.00 per ounce $ 19.20 Direct labor 0.4 hours $ 13.00 per hour $ 5.20 Variable overhead 0.4 hours $ 5.00 per hour $ 2.00 The company reported the following results concerning this product in February. Originally budgeted output 4,800 units Actual output 4,900 units Raw materials used in production 30,230 ounces Actual direct labor-hours 1,910 hours Purchases of raw materials 32,600 ounces Actual price of raw materials $ 2.90 per ounce Actual direct labor rate $ 12.40 per hour Actual variable overhead rate $ 4.90 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for February is:
Answer:
Variable overhead efficiency variance= $250 favorable
Explanation:
Giving the following information:
Standard:
Variable overhead 0.4 hours $ 5.00 per hour $ 2.00
Actual output= 4,900 units
Actual direct labor-hours 1,910 hours
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Standard quantity= 0.4*4,900= 1,960
Variable overhead efficiency variance= (1,960 - 1,910)*5
Variable overhead efficiency variance= $250 favorable
The management of Lanzilotta Corporation is considering a project that would require an investment of $280,000 and would last for 6 years. The annual net operating income from the project would be $114,000, which includes depreciation of $31,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
A. 1.9 years
B. 2.5 years
C. 1.6 years
D. 3.2 years
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Initial investment= $280,000
Cash flow= 114,000 - 31,000= 83,000
The payback period is the time required to cover for the initial investment.
Year 1= 83,000 - 280,000= -197,000
Year 2= 83,000 - 197,000= -114,000
Year 3= 83,000 - 114,000= -31,000
Year 4= 83,000 - 31,000= 52,000
To be more accurate:
(31,000/83,000)*365= 136
3.37 years
It will take 3 years and 136 days to cover for the initial investment.
Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.19%.
Alternatives
EOY X Y
0 -$100,000 -$100,000
1 $50,000 0
2 $51,000 0
3 $60,000 $205,760
1RR 27.19% 27.19%
a. which alternative should be chosen if MARR is 15% per year
b. If MARR is 15% per year, which alternative is better?
c. What is the IRR on the incremental cash flow [i.e., ∆(Y − X)]?
d. If the MARR is 27.5% per year, which alternative is better?
e. What is the simple payback period for each alternative?
f. Which alternative would you recommend?
Answer:
a) alternative Y should be chosen
b) alternative Y, because its NPV is higher
c) 27.19%
d) alternative X, because its NPV is only -$463 (alternative Y's NPV = - $727)
e) alternative X = 1.98 years
alternative Y = 2.49 years
f) alternative Y because its NPV is much higher when MARR = 15%, and when MARR increased to 27.5%, the difference between both projects' NPV was very small.
Explanation:
a and b)
NPV of alternative X = -$100,000 + $50,000/1.15 + $51,000/1.15² + $60,000/1.15³ = -$100,000 + $43,478 + $38,563 + $39,451 = $21,492
NPV of alternative Y = -$100,000 + $205,760/1.15³ = $35,291
c)
incremental cash flows:
-$50,000
-$51,000
$145,760
TIR = 27.19%
d)
NPV of alternative X = -$100,000 + $50,000/1.275 + $51,000/1.275² + $60,000/1.275³ = -$100,000 + $39,216 + $31,373 + $28,948 = -$463
NPV of alternative Y = -$100,000 + $205,760/1.275³ = -$727
e)
alternative X ⇒ 1 year + ($50,000 / $51,000) = 1.98 years
alternative Y ⇒ 2 years + ($100,000 / $205,760) = 2.49 years
What would be the yearly earnings for a person with $4,400 in savings at an annual interest rate of 3 percent
Answer:
$132
Explanation:
Calculation for yearly earnings for a person with $4,400
Using this formula
Yearly earnings = Savings amount × Annual interest rate percentage
Where,
Savings amount =$4,400
Annual interest rate percentage =3%
Let plug in the formula
Yearly earnings = $4,400×0.03
Yearly earnings = $132
Therefore the Yearly earnings will be $132
ou purchase a home for $200,000 that you expect to appreciate 6% in value on an annual basis. How much will the home be worth in ten years?
Answer:
$358,169.54
Explanation:
the future value of the house = Present value ( 1 + interest rate)^number of years
$200,000(1 + 0.06)^10 = $358,169.54
Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.60 Direct labor $ 3.90 Variable manufacturing overhead $ 1.55 Fixed manufacturing overhead $ 27,900 Sales commissions $ 1.90 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 7,200 The incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:
Answer:
Incremental cost= $12.05
Explanation:
Giving the following information:
Direct materials $ 6.60
Direct labor $ 3.90
Variable manufacturing overhead $1.55
I will assume that the production level is between the relevant rage, therefore, fixed costs remain constant.
Incremental cost= total variable manufacturing cost
Incremental cost= 6.6 + 3.9 + 1.55
Incremental cost= $12.05
Consider two firms producing smartphones. One uses a highly automated robotics process, while the other uses human workers on an assembly line and pays overtime when there is heavy production demand. a. Which firm will have higher profits in a recession?
Answer: The firm that is using human workers.
Explanation:
A recession is simply referred to as a contraction that occurs in the business cycle when there is a reduction in the economic activities and this invariably leads to reduction in expenses by the consumers.
Since there is recession, there won't be need to pay the workers overtime as there won't be heavy production, therefore the firm that is using human workers will have higher profit in recession.
Bricks and Mortar Manufacturing produces building materials for local construction contractors. BMM has two production departments (Mixing and Baking) and two service departments (Maintenance and Cleaning). Maintenance costs are allocated based on machine hours used. Cleaning costs are allocated based on square feet of floor space.
The following data is available for BMM:
Mixing:
600 square feet of floor space,
200 machine hours used
Baking:
450 square feet of floor space,
500 machine hours used
Maintenance costs incurred: $4,900
Cleaning costs incurred: $2,300
How much of the Cleaning costs should be allocated to the Baking department?
Answer:
Cleaning costs of baking department = $986 (Approx)
Explanation:
Given:
Mixing: department = 600 square feet of floor
Mixing: department = 200 machine hours used
Baking department = 450 square feet of floor
Baking department = 500 machine hours used
Maintenance costs = $4,900
Cleaning costs = $2,300
Find:
Cleaning costs of baking department
Computation:
Cleaning costs of baking department = [Baking department area / Total area]Cleaning costs
Cleaning costs of baking department = [450 / (450 + 600)]2,300
Cleaning costs of baking department = [0.4286]2,300
Cleaning costs of baking department = 985.78
Cleaning costs of baking department = $986 (Approx)
Attributes of rigorous research can be shared across subjects of study. For example, Collins and Porras (2002) highlight the importance of having a control group when comparing companies in any effort to identify what specific company characteristics are able to distinguish the successful from the ordinary
The correct answer to this open question is the following.
Your question is incomplete. Indeed, there is no question at all, just a statement, and it seems that information is needed. For instance, the text for the referral.
Doing some research I can identify the idea of the question and the correct context is the following.
You have to compare two texts. One from an original source and the other, a text was written by a student. The question asked to compare both texts to see if there is plagiarism or not.
So with that in mind, the correct answer is that there is no plagiarism
The student version paraphrases the original idea, explains it in its own terms, and included proper citation of the text from Collons, J.C., & Porras, J.I. (2002) Built to Last: Successful Habits of Visionary Companies."
Plagiarism happens when you write a text that is not yours, or you do not give credit to the author, pretending it was you the one who wrote it. That is why is necessary to include proper citations in different formats to give the credit to the original author, or that you as student use your own words and ideas to make a notorious difference with the original text.