Answer:
The correct answer is (b) Nextflix supplies 250 subscriptions and Flixbuster supplies 250 subscriptions.
Explanation:
Solution
Now,
A monopolist would supply where the total revenue is Maximum
So, quantity produced = 500 where each will produce 500/2
=250 units
Therefore from the given question stated as, If the two firms operating in this market agreed to each supply one-half of the quantity a monopolist would supply, the contract would specify that: Nextflix supplies 250 subscriptions and Flixbuster supplies 250 subscriptions.
A machine purchased three years ago for $303,000 has a current book value using straight-line depreciation of $184,000; its operating expenses are $36,000 per year. A replacement machine would cost $239,000, have a useful life of nine years, and would require $12,000 per year in operating expenses. It has an expected salvage value of $76,000 after nine years. The current disposal value of the old machine is $88,000; if it is kept 9 more years, its residual value would be $15,000.Calculate the total costs in keeping the old machine and purchase a new machine.
Answer: Cost of keeping old machine is $469,000
Cost of Purchasing New Machine is $271,000
Explanation:
Keeping the old machine.
When calculating the cost of keeping the machine you use the disposal value.
Cost = (Disposal Value - Residual Value) + Total Operating Costs for remaining lifetime
Cost = ( 88,000 - 15,000) + ( 36,000 * 11 years)
Cost = 73,000 + 396,000
Cost = $469,000
Cost of keeping old machine is $469,000.
Cost of New machine
Cost = (Disposal Value - Residual Value) + Total Operating Costs for remaining lifetime
Cost = (239,000 - 76,000) + (12,000 * 9)
Cost = 163,000 + 108,000
Cost = $271,000
Cost if New machine purchased,
= $271,000
You are considering replacing your aging propane furnace for a natural gas model. The propane model originally cost $2,200, will last 6 more years, and will have no salvage value. The gas model costs $2,200 and offers a $400 trade-in on the old furnace. It lasts 13 years and can be salvaged for $500 at the end of year 13. Annual fuel costs are $800 for the propane furnace and $600 for the gas furnace. The real interest rate is 9% per year. Using cash-flow replacement and annual worth analysis, should the propane furnace be replaced with the gas model?
Answer:
The information is not complete (we do not know the useful life of the propane model), but the difference in costs between one project and the other is two large. The NPV of the savings for the gas model almost pays for the initial investment, plus the present value of the costs of using the gas model are much lower for future equivalent projects, we can assume that replacing the propane furnace with the gas model is a good investment.
We cannot determine exactly by how much the actual worth of the costs of the gas model are lower than the costs of the propane model, but there is no doubt that they are much lower. The only way that the propane model would have lower actual costs would that its useful life is much longer.
Explanation:
use propane model use gas model
initial investment $0 $1,800
operating costs $800 $600
useful life 6 years 13 years
present value of the costs for first product life cycle:
$3,559 (6 years) $6,129 (13 years)
Since the useful lives of the alternatives are not the same, we must find a common denominator for the useful life of the alternatives. Here we have a problem because we are not given the information.
But we can assume that the useful life of a propane furnace is also 13 years:
use propane model use gas model
initial investment $2,200 $2,200
operating costs $800 $600
useful life 13 years 13 years
residual value $0 $500
present value of total costs per life cycle:
$8,190 $6,529
Now we need to determine the NPV of the money saved by using gas propane = -$140 (-$1,800, 9%, $200 saved during 12 periods and $700 received at last period), so basically the gas model almost pays for itself with the money it saves.
Calculate basic EPS, and explain the EPS effect of convertible preferred Thrifty Co. reported net income of $191,150 for its fiscal year ended January 31, 2017. At the beginning of that year, 50,000 shares of common stock were outstanding. On October 31, 2016, an additional 15,000 shares were issued. No other changes in common shares outstanding occurred during the year. Also during the year, the company paid the annual dividend on the 20,000 shares of 6%, $50 par value preferred stock that were outstanding the entire year. Required: a. Calculate basic earnings per share of common stock for year ended January 31, 2017. b. If Thrifty Co.’s preferred stock were convertible into common stock, what additional calculation would be required?
Answer:
a. The basic earnings per share of common stock for year ended January 31, 2017 is $3.56 per share
b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS
Explanation:
a. In order to calculate the basic earnings per share of common stock for year ended January 31, 2017 we would have to calculate the following formula:
BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock
Net income available to common stockholders=$191,150
Weighted Avg. no. of common stock = 50,000 + (15,000x 3/12)
Weighted Avg. no. of common stock= 53750
Therefore, BEPS = $191,150 / 53,750
BEPS =$3.56 per share
The basic earnings per share of common stock for year ended January 31, 2017 is $3.56 per share
b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS
A company reports the following GAAP income statement: Income Statement (GAAP) ($ in millions) 2019A
Revenue 654
Operating expenses 254
Operating profit 400
Interest expense 14
Other expenses 3
Pretax profit 383
Taxes 77
Net income 306
In addition to the GAAP income statement, the company provided a 2019 non-GAAP disclosure identifying:
$12 million in stock-based compensation expense
$7 million in restructuring expenses
$5 million gain on sale
Assuming the company’s effective tax rate applies to non-GAAP items, estimate 2019 non-GAAP net income:
a. $295 million
b. $317 million
c. $323 million
d. $325 million
Answer:
a. $295 million
Explanation:
Effective tax rate = GAAP tax / GAAP Pretax profift = 77 / 383 = 0.2010, or 20.10%.
Therefore, 2019 non-GAAP net income can be estimated as follows:
Details $ in millions
GAAP Pretax Profit 383
Stock-based compensation expense (12)
Restructuring expenses (7)
Gain on sale 5
Non GAAP Pretax Profit 369
Taxes (20.10% * 369) (74)
Non-GAAP net income 295
Arizona Corp. acquired the business Data Systems for $305,000 cash and assumed all liabilities at the date of purchase. Data’s books showed tangible assets of $310,000, liabilities of $16,000, and stockholders’ equity of $294,000. An appraiser assessed the fair market value of the tangible assets at $295,000 at the date of acquisition.
Required:
a. Compute the amount of goodwill acquired.
b. Record the acquisition in a financial statements model.
Answer:
a. $26,000
b. the acquisition in a financial statements model
Non - Current Assets
Goodwill $26,000
Tangible Assets $295,000
Total $321,000
Current Liabilities
Liabilities $16,000
Total $321,000
Explanation:
Goodwill is the excess of the Consideration / Purchase Price over the Assets and Liabilities acquired.
Assets and Liabilities are Acquired at their Acquisition date Fair Values not Book Values.
Goodwill Calculation :
Consideration $305,000
Less Assets Acquired:
Tangible Assets ($295,000)
Add Liabilities Acquired:
Liabilities $16,000
Goodwill $26,000
If the price of a kayak increases, _______.
A. sellers offer more kayaks for sale
B. the supply of kayaks increases
C. sellers offer fewer kayaks for sale
D. the supply of kayaks decreases.
Answer:
A. sellers offer more kayaks for sale
Explanation:
According to the law of supply , the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
If the price of kayaks increases, all things being equal the quantity of kayaks supplied increases.
I hope my answer helps you
Answer:
A is the correct answer.
Explanation:
the law of supply states that when price gets higher or increases, then there would be a corresponding increase in the quantity supplied and when the price gets lower or decreases, so does the quantity supplied.
Following this law, If the price of kayaks increases, then the quantity of kayaks supplied would also increase.
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct materials: 4 pounds at $9 per pound $ 36
Direct labor: 3 hours at $12 per hour 36
Variable overhead: 3 hours at $8 per hour 24
Total standard cost per unit $ 96
The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs:
a.
Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b.
Direct laborers worked 58,000 hours at a rate of $13 per hour.
c.
Total variable manufacturing overhead for the month was $729,060.
1. What raw materials cost would be included in the company’s planning budget for March?
2. What raw materials cost would be included in the company’s flexible budget for March?
3.
What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
4.
What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
5.
If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds in production, what would be the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
6.
If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds in production, what would be the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
7.
What direct labor cost would be included in the company’s planning budget for March?
8.
What direct labor cost would be included in the company’s flexible budget for March?
9.
What is the labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
10.
What is the labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
11.
What is the labor spending variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
12.
What variable manufacturing overhead cost would be included in the company’s planning budget for March?
13.
What variable manufacturing overhead cost would be included in the company’s flexible budget for March?
14.
What is the variable overhead rate variance for March? (Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
15.
What is the variable overhead efficiency variance for March? (Do not round intermediate calculations. Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
Answer:
Explanation:
1. Raw materials cost to be included in the planning budget for March = 28,000 x $ 36 = $ 1,008,000
2. Raw materials cost to be included in the flexible budget for March = 33,000 x $ 36 = $ 1,188,000
3. Materials price variance for March = ( Standard price per unit - Actual price per unit ) x Actual quantity purchased = $ ( 9.00 - 7.20) x 165,000 pounds = $ 297,000 F
4. Materials quantity variance for March = ( standard quantity allowed for actual output - actual quantity used ) x standard price per unit = ( 132,000 - 165,000) x $ 9 = $ 297,000 U
5. Materials price variance = $ ( 9 - 7.20) x 173,000 = $ 311,400 F
6. Materials quantity variance = ( 132,000 - 165,000) x $ 9 = $ 297,000 U
7. Direct labor cost included in the planning budget for March = 28,000 x $ 36 = $ 1,008,000
8. Direct labor cost included in the flexible budget for March = 33,000 x $ 36 = $ 1,188,000
9. Labor rate variance for March = ( standard labor hour rate - actual labor hour rate ) x actual hours used = $ ( 12.00 - 13.00 ) x 58,000 = $ 58,000 U
10. Labor efficiency variance for March = ( standard hours allowed for actual output - actual hours used ) x standard labor hour rate = ( 3 x 33,000 - 58,000) x $ 12 = $ 492,000 F
11. Labor spending variance for March = $ 492,000 F + $ 58,000 U = $ 434,000 F
12. Variable manufacturing overhead cost to be included in the planning budget for March = 28,000 x $ 24 = $ 672,000
13. Variable manufacturing overhead included in the flexible budget for March = 33,000 x $ 24 = $ 792,000
14. Variable overhead rate variance for March = $ ( 8 - 12.57) x 58,000 = $ 265,060 U
15. Variable overhead efficiency variance for March = ( 3 x 33,000 - 58,000) x $ 8 = $ 328,000
"When the variable manufacturing is applied to production direct labor-hours and its standard cost card per unit is as follows To Understand more check below".
Calculation of Standard Cost Card Per Unit1. Raw materials cost to be included in the planning budget for March = (Standard price per unit ×Actual price per unit) 28,000 x $36 is = $1,008,000
2. Raw materials cost to be included in the flexible budget for March = 33,000 x $36 is = $1,188,000
3. When the Materials price variance for March formula is = (Standard price per unit - Actual price per unit) x Actual quantity purchased is = $ (9.00 - 7.20) x 165,000 pounds is = $297,000 F
4. Then, Materials quantity variance for March formula is = (standard quantity allowed for actual output - actual quantity used) x standard price per unit = ( 132,000 - 165,000) x $9 is = $297,000 U
5. After that, Materials price variance is = $(9 - 7.20) x 173,000 = $311,400 F
6. Materials quantity variance is = (132,000 - 165,000) x $9 = $297,000 U
7. Then, the Direct labor cost included in the planning budget for March = 28,000 x $36 is = $1,008,000
8. Direct labor cost included in the flexible budget for March = 33,000 x $36 is = $1,188,000
9. Now, The Labor rate variance for March is = ( standard labor hour rate - actual labor hour rate ) x actual hours used is = $(12.00 - 13.00 ) x 58,000 = $58,000 U
10. Labor efficiency variance for March = (standard hours allowed for actual output - actual hours used) x standard labor hour rate is = ( 3 x 33,000 - 58,000) x $12 = $492,000 F
11. Labor spending variance for March is = $492,000 F + $ 58,000 U = $434,000 F
12. When the Variable manufacturing overhead cost to be included in the planning budget for March is = 28,000 x $24 = $672,000
13. Variable manufacturing overhead included in the flexible budget for March = 33,000 x $24 is = $792,000
14. Then, Variable overhead rate variance for March is = $(8 - 12.57) x 58,000 = $265,060 U
15. Variable overhead efficiency variance for March is = (3 x 33,000 - 58,000) x $8 = $328,000
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Rabah has just been hired as manager of a health spa. The owner has commissioned a market study that estimates the per person (average consumer's) monthly demand for visiting the health spa to be q = 10 - 1/2p. The cost of operating is C(q) = 2q, where q is the number of visits. The owner has been charging a $64 per month membership fee and a $4 per-visit fee. Part of Rabah's salary is 10% of the monthly profits.
1. What per-visit fee p and per month membership fee F should Rabah suggest from the following options?
Select one:
a. p = 2, F = 80
b. p = 3, F = 91.
c. p = 3, F = 90
d. p = 2, F = 81
Answer:
B.
Explanation:
It should be noted that the salary of Rabah depends on the profit the company made after amount. Therefore, for Rabah to have or collect a high salary at the end of the month, then the amount to be charged per visit and the membership fee must be increased. So, when they are on the high side or increased, then Rabah is assured of a good salary at the end of the month.
Yvette is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Because her pool sessions are helping her swim more quickly, Yvette plans to reduce by 1 hour per week the time she spends training on the bike and increase by 1 hour the time she spends in the swimming pool; however, her husband says that she should stop doing any biking and running and spend all 20 hours per week in the pool.
Which basic principle of individual choice does Yvette's plan illustrate that her husband's advice does not?
a. People usually exploit opportunities to make themselves better off.
b. Resources are scarce.
c. Many decisions are made on the margin.
d. All costs are opportunity costs.
Answer:
The correct answer is the option D: All costs are opportunity costs.
Explanation:
To begin with, the fact that Yvette is looking forward to reduce only one hour of her training on the bike in order to add one hour to her training on the pool and later her husband says that she should use all her hours for the training in the pool is showing a situation where her husband's advice does not illustrate a basic principle of individuals choices that is that all the costs are opportunity costs and therefore that if she decides to do that then she would be sacrifying the time for the other trainings and that would not benefit her. So that is why she must choose to sacrifice time in one training to do another and so on.
On April 1, Year 1, a company realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting the company's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. The company agrees to lend $470,000 to its supplier using a 12-month, 11% note.
Record the following transactions for Shoemaker Corporation.
1. The loan of $470,000 and acceptance of the note receivable on April 1, Year 1 (If not entry is required for a transaction/event, select 'No journal entry required' in the first account field.)
2. The adjustment for accrued interest on December 31, Year 1. (If not entry is required for a transaction/event, select 'No journal entry required' in the first account field.)
3. Cash collection of the note and interest on April 1, 2002 (If not entry is required for a transaction/event, select 'No journal entry required' in the first account field.)
Answer:
1.
April 1, Year 1 Note Receivable 470000 Dr
Cash 470000 Cr
2.
December 31, Year 1 Interest receivable 38775 Dr
Interest Revenue 38775 Cr
3.
April 1, Year 2 Cash 521700 Dr
Note Receivable 470000 Cr
Interest Receivable 38775 Cr
Interest Revenue 12925 Cr
Explanation:
1.
The loan was extended on 1 April Year. The note received is an asset for the company and will be recorded as a debit to the note receivable account and a credit to cash as cash is being paid as an extension of loan to the supplier.
2.
The accrual principle states that the revenues and expenses relating to a particular period should be matched and recorded in their respective periods. Thus, on 31 December Year 1, the interest revenue relating to notes receivable for the period from April to December (9 months) will be recorded as a revenue and as a receivable as it will be received when the note matures.
Interest revenue = 470000 * 0.11 * 9/12 = 38775
3.
The amount for the loan and interest on it against the note receivable will be received on April 1 Year 2. The cash will be debited by the amount of note receivable and the interest revenue earned for 12 months on that note. The note receivable account and the interest receivable account will be credited which were assets and the interest revenue that relates to year 2 (3 months from January to march) will be credited against the cash.
Interest revenue Year 2 = 470000 * 0.11 * 3/12 = 12925
Cash = 470000 + 38775 + 12925 = 521700
Valorous Corporation will pay a dividend of $1.80 per share at this year's end and a dividend of 2.40 per share at the end of next year. It is expected that the price of Valorous' stock will be 44 per share after two years. If Valorous has an equity cost of capital of 8%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today? A. A) $39.27 B. B) $40.22 C. C) $41.45 D. D) $42.40
Answer:
C) $41.45
Explanation:
Valorous Corporation
Using a financial calculator
CF0 = 0
CF1 = 1.8
CF2 = (44 + 2.4) = 46.4
Hence calculate NPV at I = 8%,
=$41.45.
Therefore the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today will be
$41.45
On January 1, 2016, VKI Corporation awarded restricted stock units (RSUs) representing 11 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $7.20 per share.
Required:
1. Determine the total compensation cost pertaining to the RSUs. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
2. to 6. Prepare the appropriate journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Answer:
1.$79,200,000
2.No entry is made on the grant date
3 - 5
Dr Compensation expense 264
Cr Paid-in capital—restricted stock 264
6.
Dr Paid-in capital—restricted stock 792
Cr Common stock 11
Cr Paid-in capital—excess of par (remainder) 781
Explanation:
1.Total compensation cost pertaining to the RSUs
Restricted stock units * Market price
11,000,000 *7.20
=$79,200,000
2.
January 1, 2016
No entry is made on the grant date
3 - 5
December 31, 2016, 2017 and 2018. (Note: The entry is the same for years 2016 - 2018.)
Dr Compensation expense 264
($792 million ÷ 3 years)
Cr Paid-in capital—restricted stock 264
6.
Dr Paid-in capital—restricted stock 792
Cr Common stock 11
(11 million shares x $1 par)
Cr Paid-in capital—excess of par (remainder) 781
Portage Bay Enterprises has $ 1$1 million in excess cash, no debt, and is expected to have free cash flow of $ 10$10 million next year. Its FCF is then expected to grow at a rate of 5 %5% per year forever. If Portage Bay's equity cost of capital is 13 %13% and it has 66 million shares outstanding, what should be the price of Portage Bay stock?
Answer:
Value of a stock = $1.89
Explanation:
The value of a firm is the present value of the by the free cashflow discounted at the required rate of return
Value of the firm = FCF/(WACC- g)
FCF- free cash flow
WACC- Cost of capital = 13%
g- growth rate= 5%
= 10,000/(0.13-0.05)= 125,000,000
Value of a stock = Value of firm/No of shares
= $125,000,000/66,000,000 units
= $1.89
Suppose the marginal damage and marginal benefit curves in a pol- luted neighborhood are MD = P/3 and MB = 4 – P. Also, suppose that transactions costs are low, so that the neighborhood residents and the firm can bargain. We saw that in this case, the socially optimal level of pollution is achieved. Start by computing the socially optimal P. Then, for each of the following cases, compute the amount of money trans- ferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). Also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).
(a) Residents have the right to clean air; firm is dominant in the bar- gaining process.
(b) Residents have the right to clean air; residents are dominant in the bargaining process.
(c) Firm has the right to pollute; firm is dominant in the bargaining process.
(d) Firm has the right to pollute;residents are dominant in the bargain- ing process.
Find the given attachments
Most open market operations are ______ and are aimed at maintaining the economic status quo. During the______, however,______ targeted open market operations were used to encourage economic growth. These actions were dubbed "_______." The first round of this practice focused primarily on the________ market.
Answer:
routine; great recession; narrowly; quantitative easing; housing
Explanation:
An open market operation is sale and purchase of government securities to control the money supply and interest rates and to ensure regulation of the supply of money in the economy. Such money can be provided as loan to businesses and consumers.
Most open market operations are routine and are aimed at maintaining the economic status quo. During the great recession, however, narrowly targeted open market operations were used to encourage economic growth. These actions were dubbed "quantitative easing." The first round of this practice focused primarily on the housing market.
The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities:
Mixing: water, sugar, and beverage concentrate are mixed.
Filling: mixed beverage is filled into 12-oz. cans.
Packaging: properly filled cans are boxed into cardboard "fridge packs."
The activity costs associated with these activities for the period are as follows:
Mixing $216,000
Filling 168,000
Packaging 96,000
Total $480,000
The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or "kicked," from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling 6,300,000 cans during the period, of which only 6,000,000 cans are actually packaged. Three hundred thousand cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overflows due to expansion. After this improvement, the number of kicks is expected to decline from 300,000 cans to 63,000 cans, thus increasing the number of filled cans to 6,237,000 [6,000,000 + (300,000 â 63,000)].
Required:
a. Determine the total activity cost per packaged can under present operations. Round to the nearest cent.
b. Determine the amount of increased packaging activity costs from the expected improvements.
c. Determine the expected total activity cost per packaged can after improvements. Round to two decimal places.
Answer:
$0.008
$3,792
$0.078
Explanation:
As per the data given in the question,
a)
Total activity cost per packaged can under present operations = Total activity cost under present operations ÷ total cans packaged
= $480,000 ÷ 6,000,000
= $0.08 per can
b)
Current packaging cost = $96,000
Packaging cost per bottle = Current packaging cost ÷ total cans packaged
= $96,000 ÷ 6,000,000
= $0.016 per bottle
Fr 6,237,000 bottles,
Total packaging cost = total bottle × cost per bottle
= 6,237,000 × $0.016
= $99,792
Therefore, Amount of increased packaging activity costs from the expected improvements = total packaging cost - current packaging cost
= $99,792 - $96,000
= $3,792
c)
Total activity cost = mixing cost + filling cost + packaging cost
= $216,000 + $168,000 + $99,792
= $483,972
Hence, Expected total activity cost per packaged can after improvements = Total activity cost ÷ no. of bottles
= $483,972 ÷ 6,237,000
= $0.078
We simply applied the above formulas
tems is a start-up company that makes connectors for high-speed Internet connections. BotNet Systems has budgeted three hours of direct labor per connector, at a standard cost of $ 13 per hour. During August, technicians actually worked 192 hours completing 80 connectors. All 80 connectors actually produced were sold. BotNet paid the technicians $ 13.80 per hour. What is BotNet's direct labor cost variance for August?
Answer:
-$153.6 Unfavorable
Explanation:
As per the given question the solution of direct labor cost variance for August is provided below:-
Direct labor cost variance for August = (Standard rate - Actual rate) × Actual hour
= ($13 per hour - $13.80 per hour) × 192 hours
= -$0.8 × 192 hours
= -$153.6 Unfavorable
Here, the actual rate is higher than standard rate so the amount will come into unfavorable and to reach out the direct labor cost variance for august we put the value into formula.
Susan saved $5000 per year in her retirement account for 10 years (during age 25-35) and then quit saving. However, she did not make any withdrawal until she turned 65 (i.e., 30 years after she stopped saving). Her twin sister, Jane did not save anything during the 1st 10 years (during age 25-30) but saved $5,000 per year for 30 years (during age 35-65). What will be the difference in their retirement account balance at age 65, if their investments earned an average return of 8.5% during the entire period
Answer:
Instructions are below.
Explanation:
Giving the following information:
Susan:
Annual deposit= $5,000 for 10 years
Lumo-sum for 30 years
Interest rate= 8.5%
Jane:
Annual deposit= $5,000 for 30 years.
First, we will calculate the future value of Susan:
First 10 years:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.085^10)-1]}/0.085
FV= $74,175.50
Last 30 years:
FV= PV*(1+i)^n
FV= 74,175.50*(1.085^30)
FV= $857,050.14
Jane:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.085^30)-1]}/0.085
FV= $621,073.63
Earnings difference= 857,050.14 - 621,073.63= $235,976.51 in favor of Susan.
Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemption date of the second. Both are bought to yield 12 percent convertible semiannually. The first bond sells for 813.04 dollars and pays coupons at 8.3 precent convertible semiannually. The second bond pays coupons at 5.3 percent per half year. What is the price of the second bond
Answer:
$ 915.71
Explanation:
In order to determine the second bond price we need to determine the number of years to maturity of the first bond using nper formula in excel.
=nper(rate,pmt.-pv,fv)
rate is the semiannual interest rate of 6% (12%*6/12)
pmt is the semiannual interest=$1000*8.3%*6/12=$41.50
pv is the current price at $813.04
fv is the face value of $1000
=nper(6%,41.50,-813.04,1000)= 16.00
The years to maturity=16/2=8 years
The years to maturity of second bond=8+3=11 years
price of second bond=-pv(rate,nper,pmt,fv)
rate is 6%
nper is 11 years multiplied by 2= 22
pmt =5.3%*$1000=$53
fv is $1000
=-pv(6%,22,53,1000)=$915.71
Answer:
$915.71
Explanation:
Price of the bond is determined by calculating the present value of all cash flows.
We will use following formula in Excel
=nper(rate,pmt.-pv,fv)
rate = Interest rate = 12% x 6/12 = 6%
pmt = Coupon Payment=$1000 x 8.3% x 6/12=$41.50
pv = Price of first coupon = $813.04
fv = Face value = $1000
Placinf all the values in the formula
=nper(6%,41.50,-813.04,1000)= 16.00
Years to maturity=16/2=8 years
The years to maturity of second bond=8+3=11 years
price of second bond=-pv(rate,nper,pmt,fv)
rate = 6%
nper = 11 years x 2= 22
pmt =5.3% x $1000=$53
fv = $1000
Placing values in the formula
=-pv(6%,22,53,1000)=$915.71
Birch Company normally produces and sells 43,000 units of RG-6 each month. RG-6 is a small electrical relay used as a component part in the automotive industry. The selling price is $30 per unit, variable costs are $19 per unit, fixed manufacturing overhead costs total $155,000 per month, and fixed selling costs total $46,000 per monthEmployment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company’s sales to temporarily drop to only 14,000 units per month. Birch Company estimates that the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the strike, which would reduce its fixed manufacturing overhead costs by $60,000 per month and its fixed selling costs by 8%. Start-up costs at the end of the shutdown period would total $15,000. Because Birch Company uses Lean Production methods, no inventories are on hand.1 Assuming that the strikes continue for two months, what is the impact on income by closing the plant?2. At what level of sales (in units) for the two-month period should Birch Company be indifferent between closing the plant or keeping it open?
Answer:
a)No, the company should not close the plant; it should continue to operate at the reduced level of 28,000 units, because it would lead to a $199320 greater loss over the two-month period than if the company continues to operate. By closing down, the needs of these customers will not be met and they would move to another supplier
b) 9880 units
Explanation:
Contribution margin = selling price - variable cost = $30 - $19 = $11
Contribution margin lost = 14000 units / month * 2 months = 28000 units
Contribution margin lost by the plant closing = 28000 units * $11 = $308000
Fixed manufacturing overhead cost * number of months = $60,000 per month × 2 months = $120,000
Fixed selling cost = fixed selling costs total * 8% = $46000 * 0.08 = $3680
Costs avoided by closing the plant for two months = $120000 + $3680 = $123680
Net disadvantage before start up cost = Contribution margin lost by the plant closing - Costs avoided by closing the plant for two months = $308000 - $123680 = $184320
Start up cost = $15000
Closing plant disadvantage = Net disadvantage before start up cost + Start up cos = $184320 + $15000 = $199320
No, the company should not close the plant; it should continue to operate at the reduced level of 28,000 units, because it would lead to a $199320 greater loss over the two-month period than if the company continues to operate. By closing down the 28000 units produced would be lost, the needs of these customers will not be met and they would move to another supplier
b) Costs avoided by closing the plant for two months = $123680
less Start up cost = $15000
Net avoidable cost = $123680 - $15000 = $108680
Net avoidable cost/ Contribution margin per unit = $108680 / $11 = 9880 units
Portions of the financial statements for Horizon Telecom are provided below. HORIZON TELECOM Income Statement For the Year Ended December 31, 2018 Revenues $616,000 Expenses: Cost of goods sold $366,000 Operating expenses 118,000 Depreciation expense 25,000 Income tax expense 53,500 Total expenses 562,500 Net Income $ 53,500 HORIZON TELECOM Selected Balance Sheet Data December 31, 2018 Increase in accounts receivable $ 5,300 Increase in inventory 11,300 Decrease in prepaid rent 9,900 Increase in operating expenses payable 5,000 Decrease in accounts payable 7,400 Increase in income tax payable 21,900 Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the indirect method. (Amounts to be deducted and negative values should be indicated by minus sign.)
Answer:
Cash flow from Operating Activities
Net Income $ 53,500
Adjust for Non-Cash items :
Depreciation expense 25,000
Adjust for Working Capital items :
Increase in accounts receivable ($ 5,300)
Increase in inventory ($11,300)
Decrease in prepaid rent $9,900
Increase in operating expenses payable$5,000
Decrease in accounts payable ($7,400)
Increase in income tax payable $21,900
Net Cash from Operating Activities $91,300
Explanation:
Prepare Operating activities section of the statement of cash flows for Horizon Telecom as above.
the money supply may expand by less than the amount predicted by the money multiplier if :
Radar Company sells bikes for $480 each. The company currently sells 4,000 bikes per year and could make as many as 4,370 bikes per year. The bikes cost $260 each to make: $160 in variable costs per bike and $100 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 370 bikes for $460 each. Incremental fixed costs to make this order are $46,000. No other costs will change if this order is accepted.
Compute Radar's additional income (ignore taxes) if it accepts this order.
Answer:
$65,000
Explanation:
The total cost of the additional order will be $46,000 of fixed costs and an additional $160 of variable costs for each of the 370 bikes. The additional production cost is:
[tex]C=\$46,000+370*\$160\\C=\$105,200[/tex]
If each bike is going to be sold for $460, then the additional income (excluding taxes) from accepting this order is:
[tex]I=(price*units)-cost\\I=(\$460*370)-\$105,200\\I=\$65,000[/tex]
Radar's additional income is $65,000.
The U.S. Treasury has Kleine Toymakers is introducing a new line of robotic toys, which it expects to grow their earnings at a much faster rate than normal over the next three years. After paying a dividend of $2.00 last year, it does not expect to pay a dividend for the next three years. After that Kleine plans to pay a dividend of $4.00 in year 4 and then increase the dividend at a rate of 10 percent in years 5 and 6. What is the present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent
Answer:
The present value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57
Explanation:
Solution:
Given that
The present value =∑ ⁿ t=1 cf/ (1 +r)t
where cf= cash flow
r =the required rate of return
t = the number of years
Now
The present value will be:
cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6
Hence,
cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years
Note: Kindly find an attached document of the part of the solution to this given question
investing is best for
?
ASAP! GIVING BRAINLIEST TO THE CORRECT AWNSER.
Answer:
a: to provide government revenues
Explanation:
becuase its right
can i have brainliest now
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows:
Sales $ 1,604,000
Variable expenses 663,400
Contribution margin 940,600
Fixed expenses 1,035,000
Net operating income (loss) $ (94,400)
In an effort to isolate the problem, the president has asked for an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:
Division East Central West
Sales $ 394,000 $ 630,000 $ 580,000
Variable expenses as a percentage of sales 50 % 28 % 50 %
Traceable fixed expenses $ 278,000 $ 333,000 $ 210,000
Required:
1. Prepare a contribution format income statement segmented by divisions, as desired by the president.
Answer and Explanation:
The Preparation of contribution format income statement is shown below:-
Wingate Company
Contribution format income statement
Particulars Total East Central West
Sales $1,604,000 $394,000 $630,000 $580,000
Variable
Variable expenses as a
percentage of sales 50% 28% 50%
expenses $663,400 $197,000 $176,400 $290,000
Contribution
margin $940,600 $197,000 $453,600 $290,000
Traceable Fixed
expenses $821,000 $278,000 $333,000 $210,000
Segment
margin $119,600 ($81,000) $120,600 $80,000
Common Fixed
expenses $214,000
($1,035,000 - $821,000)
Net operating
income (loss) ($94,400)
The contribution margin income statement is the statement in which the net operating income or loss could be find out by deducting the variable cost and the fixed cost from the sales revenue
Answer:
The answer is "loss of $ 944,000".
Explanation:
Please find the attachment for the solution.
At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $118,800, including his $11,880 share of partnership debt. At the end of the tax year, his share of debt was $17,820. His share of the partnership's income for the year was $47,520, and he received cash distributions totaling $29,700. In addition, his share of the partnership's nontaxable income was $2,376.
Determine Barnaby's basis at the end of the tax year.
Answer: $144,936
Explanation:
First start by removing the initial debt from the initial basis so as not to inflate the basis.
= 118,800 - 11,880
= $106,920
That is the Initial basis void of debt.
Then add anything that will increase the basis and remove anything that will reduce the basis. Income and debt generally increase the basis while dividends or cash Distributions reduce them.
The Ending basis is therefore,
= Pre debt Initial basis + Partnership Income + ending debt + Nontaxable income - Cash Distribution
= 106,920 + 47,520 + 17,820 + 2,376 - 29,700
= $144,936
Barnaby's basis at the end of the tax year is $144,936.
Soccer Wholesale purchased land and a warehouse for $990,000. In addition to the purchase price, Soccer Wholesale makes the following expenditures related to the acquisition: broker's commission, $49,600; title insurance, $2,300; and miscellaneous closing costs, $6,900. The warehouse is immediately demolished at a cost of $75,300 in anticipation of building a new warehouse.
Determine the amount Soccer Wholesale should record as the cost of the land.
Answer:
Cost of land= $1,124,100
Explanation:
According to International accounting standards(IAS) 16 ,The cost of land includes purchase cost plus all other costs necessary to bring and make it ready for the intended use.
These costs include purchase cost, fees and commission associated with the purchase transaction.
Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.
However, remember that land is not depreciated because it has an infinite life span.
So using the historical cost principle the cost of the land
Cost of land = 990,000 + 49,600 +2300 + 6, 900 + 75,300= 1,124,100.00
Cost of land= $1,124,100
Bryan Dobbs, Director of Marketing at Sarga Inc. has received multiple complaints about Davy Siegler over the past two months. Apparently, he spends his day surfing the net, passes all his own work on to subordinates, and disrupts those around him by dragging them over to view various videos, jokes, and timewaster findings online. Dobbs sets up a meeting with the intention of discovering what issues are causing Siegler's clear lack of motivation and poor production. During the meeting, Siegler is passive-aggressive and displays motivation and resentment issues. He recently received an "above average" performance appraisal but no pay increase.
This activity is important because it allows students to better understand cyberloafing’s relationship to job satisfaction, and then provides an opportunity for them to apply pertinent theory in order to resolve the scenario presented in the video.
1. Davy’s behavior on the job is related to all of the following, EXCEPT
A. counterproductive work behavior.
B. stress.
C. inequity.
D. organizational citizenship behavior.
Answer:
D. organizational citizenship behavior.
Explanation:
In this scenario exemplified in the question, it can be said that Davy has all work behaviors except the behavior of organizational citizenship.
This behavior can be described as one that is not mandatory as part of the functional requirements of a job position, but an employee who presents organizational citizenship helps the company to promote a culture favorable to the maintenance of ethics and the development and performance of the organization as one all.
Any informal action by the worker that benefits the organization is part of the behavior of organizational citizenship. Some of these dimensions of behavior are altruism, loyalty, conscience, self-development, obedience, etc.
These behaviors are capable of promoting the well-being of the employee and the entire organization.