Answer: 19.01%
Explanation:
The simple rate of return is the Income that came from an investment divided by the cost of the investment.
It is therefore expressed by;
Simple rate of return = Net Income / Initial investment
Initial investment
= Price of new machine - salvage value of old machine
= 432,000 - 27,000
= $405,000
Net Income
= Income - depreciation of new machine
= 149,000 - (432,000/6)
= $77,000
Simple rate of return
= 77,000/405,000
= 19.01%
Answer:
17.82%
Explanation:
As we know that:
Simple Rate Of Return = Net Operating Income / Initial Investment
Here
Initial Investment is $432,000
Net Operating Income = Annual Cost Savings - Annual Depreciation
Here
Annual Cost Savings are $149,000
Annual Depreciation = $432,000/6 = $72,000
By putting values, we have:
Net Operating Income = $149,000 - $72,000 = $77,000
Now by putting values in the above bold equation:
Net Operating Income = $77,000 / 432,000 = 17.82%
explain the service packages of bank (physical items, sensual benefits, and psychological benefits).
Answer:
Bank provides free cheque books, credit/debit cards, free bank account statement services via text and or email and sometimes provides free locker for its account holders.
Explanation:
Bank provides a number of benefits to its customers which includes physical items, sensual benefits and psychological benefits.
Bank provides these benefits to its customers in order to attract them to avail services from the bank.
Bank provides free cheque books, credit/debit cards, free bank account statement services via text and or email and sometimes provides free locker for its account holders.
The following adjusted trial balance is the result of the adjustments made at the end of the month of March for ErikMartin Company. Use these adjusted values to journalize the closing entries for Erik Martin Company.
Cash 24,750
Accounts Receivable 5,750
Office Supplies 3,525
Store Supplies 4,785
Machinery 9,750
Accumulated Depreciation 2,150
Accounts Payable 3,550
Notes Payable 7,500
Erik Martin, Capital 19,725
Erik Martin, Drawing 6,250
Service Revenue 36,500
Wages Expense 6,425
Office Supplies Expense 1,465
Store Supplies Expense 5,150
Depreciation Expense 1,575
69,425 69,425
Answer:
March 31, 202x, close revenue accounts
Dr Service revenue 36,500
Cr Income summary 36,500
March 31, 202x, close expense accounts
Dr Income summary 14,615
Cr Wages Expense 6,425
Cr Office Supplies Expense 1,465
Cr Store Supplies Expense 5,150
Cr Depreciation Expense 1,575
March 31. 202x, close income summary account
Dr Income summary 21,885
Cr Erik Martin, Capital 21,885
March 31, 202x, close drawing account
Dr Erik Martin, Capital 6,250
Cr Erik Martin, drawing 6,250
g Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per unit, fixed costs related to making this part are $98,000 per year, and allocated fixed costs are $85,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 88,000 and buying 88,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier
Answer:
Total incremental cost of Making = $370,800 and Buying = $378,400.
Decision : The company should continue to manufacture the part instead of buying the part from the outside supplier
Explanation:
Analysis of the Buy or Decision
Buy Make Difference
Costs :
Purchase Price ( $4.30 × 88,000 units) $378,400 $ 0 ($378,400)
Savings :
Variable Costs ($3.10 × 88,000 units ) $0 $272,800 $272,800
Fixed Cost $0 $98,000 $98,000
Total $378,400 $370,800 ($7,600)
Note that, Allocated fixed costs are unavoidable whether the company makes or buys the part thus not relevant for this decision.
Conclusion :
It can be seen that it is quite expensive to buy the part from the outside supplier, so continue making the part internally
If the interest rate is 10 percent and cash flows are $1,000 at the end of year one and $2,000 at the end of year two, then present value of these cash flow is:_____
Answer:
Present value is $2561.98
Explanation:
Below are the given values in the questions.
Interest rate = 10 %
First-year cash flow = $1000
Second year cash flow = $2000
Now we have to find the present value of these cash flow by using the above values.
The calculation of present value is as follows:
Present Value = cash inflow/(1 + i)^N
Present Value = 1000/(1 + 0.10)^1 + 2000/(1 + 0.10)^2
Present Value = $2,561.98
What is the relationship between performance management and continuous quality improvement?
Explanation:
The relationship between performance management and continuous quality improvement is that performance management is configured as a systematization of organizational processes that will improve organizational systems and lead to the process of continuous quality improvement.
Performance management will help the company to analyze and improve all its activities, through actions such as improving working conditions, implementing new technologies, training employees, improving organizational communication, etc.
The performance management processes and actions will assist in the continuous improvement of the quality of each organizational system, since the two tools propose the planning, organization and monitoring of processes in order to improve them to achieve greater efficiency and quality for the achievement of the organization's goals and objectives.
The Hernandez family budget is shown in the graph. A circle graph titled Family Budget. Housing is 23 percent, Food is 21 percent, Savings is 10 percent, Transportation is 16 percent, medical is 12 percent, clothing is 13 percent, emergency fund is 5 percent. Which 3 categories make up more than half of the Hernandez family budget? Select two choices..
Answer:
The answer is B
Explanation:
i took the test
The labor efficiency variance for October is: Multiple Choice $3,750 Favorable $4,375 Unfavorable $1,400 Favorable
Question
Ravena Labs., Inc. makes a single product which has the following standards:
Direct materials: 2.5 ounces at $20 per ounce
Direct labor: 1.4 hours at $12.50 per hour
Variable manufacturing overhead: 1.4 hours at 3.50 per hour
Variable manufacturing overhead is applied on the basis of standard direct labor-hours.
The following data are available for October:
3,750 units of compound were produced during the month.
There was no beginning direct materials inventory. .Direct materials purchased: 12,000 ounces for $225,000.
The ending direct materials inventory was 2,000 ounces.
.Direct labor-hours worked: 5,600 hours at a cost of $67,200.
Variable manufacturing overhead costs incurred amounted to $18,200. Variable manufacturing overhead applied to products: $18,375.
The labor efficiency variance for October is: Multiple Choice $1,400 Favorable $1,900 Unfavorable $3,750 Favorable $4,375 Unfavorable
Answer:
Efficiency variance $52,500 Unfavorable
Explanation:
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate .
Hours
3,750 units should have taken (1000×1.4 hours ) = 1,400
but did take 5,600
efficiency variance in (hours) 4,200 unfavorable
Standard rate × $12.50
Efficiency variance $52,500 Unfavorable
Efficiency variance $52,500 Unfavorable
Last year, T-bills returned 1.8 percent while your investment in large-company stocks earned an average of 5.8 percent. Which one of the following terms refers to the difference between these two rates of return?
A. Standard deviation
B. Treasury bills
C. Geometric return
D. Risk premium
E. Inflation rate
Answer:
Option D. Risk premium, is the right answer.
Explanation:
Given the interest or return earned on the T-bill = 1.8 per cent.
The return earned on the investment made in a large company = 5.8 per cent.
Since we know that the difference between the return by the stock market and risk-free return is the risk premium. Below is the formula.
Risk premium = Return from large company (return by the stock market) – return on T bills (risk-free return)
Therefore, the Option D risk premium is correct.
The Canadian government decides to offer tax concessions to foreign companies that agree to build a manufacturing facility in Canada. This tax concession is a way to
a. encourage inward FDI.
b. discourage inward FDI.
c. encourage outward FDI.
d. discourage outward MNE.
e. discourage inward MNE.
Answer: a. encourage inward FDI.
Explanation:
Foreign Direct Investment (FDI) refers to a situation where a foreign company invests in a country by establishing or buying a business and then maintaining direct control over it.
The Canadian Governments is offering tax concessions ( reduced taxes) to foreign companies for them to establish facilities in Canada which means that they are encouraging the inflow of FDI into the country at the promise of less taxes.
Songreen Inc.,a firm that manufactures ready-to-eat soups,offers incentives based on an employee's performance rating and the employee's compa-ratio.Which of the following payment plans is exemplified in this scenario? A) Piecework plan B) Merit pay C) Standard hour plan D) Differential plan E) Skill-based plan
Answer:
B
Explanation:
Merit pay is a form of compensation where pay is given based on performance of workers. Performance is measured according to a predetermined metric. Merit pay acts as an incentive to workers to increase performance
Assume that the current ratio for Arch Company is 3.0, its acid-test ratio is 1.5, and its working capital is $310,000.
Answer each of the following questions independently, always referring to the original information.
a) How much does the firm have in current liabilities?
b) If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, then how much does the firm have in Merchandise Inventory?
c) If the firm collects an account receivable of $108,000, then what will its new current ratio and working capital be?
d) If the firm pays an account payable of $57,000, then what will its new current ratio and working capital be?
e) If the firm sells inventory that was purchased for $50,000 at a cash price of $65,000, then what will its new acid-test ratio be?
Answer:
a) $155,000
b) $232,500
c) current ratio = 3, working capital = $310,000
d) current ratio = 4.16, working capital = $310,000
e) 1.92
Explanation:
current ratio = current assets / current liabilities = 3
acid test ratio = (current assets - inventory) / current liabilities = 1.5
working capital = current assets - current liabilities = $310,000
a) current liabilities = current assets - $310,000
3 = current assets / (current assets - $310,000)
3 current assets - $930,000 = current assets
2 current assets = $930,000
current assets = $465,000
current liabilities = $465,000 - $310,000 = $155,000
b) current liabilities = current assets / 3
current liabilities = (current assets - merchandise inventory) / 1.5
current assets / 3 = (current assets - merchandise inventory) / 1.5
current assets = 2 current assets - 2 merchandise inventories
current asset = 2 merchandise inventories
$465,000 = 2 merchandise inventories
merchandise inventory = $232,500
c) nothing changes, since a current asset is replaced by another current asset
d) $408,000 / $98,000 = 4.16
e) $297,500 / $155,000 = 1.92
a) $155,000
b) $232,500
c) current ratio is = 3, working capital = $310,000
d) current ratio is = 4.16, working capital = $310,000
e) 1.92
Calculation of Current RatioThe formula current ratio is = current assets / current liabilities = 3
Then, the acid test ratio is = (current assets - inventory) / current liabilities = 1.5
After that, working capital = current assets - current liabilities = $310,000
a) current liabilities is = current assets - $310,000
Then, 3 = current assets / (current assets - $310,000)
After that, 3 current assets - $930,000 = current assets
Then, 2 current assets = $930,000
The current assets is = $465,000
Therefore, current liabilities = $465,000 - $310,000 = $155,000
b) current liabilities is = current assets / 3
Then, current liabilities = (current assets - merchandise inventory) / 1.5
After that, current assets / 3 = (current assets - merchandise inventory) / 1.5
Now, current assets = 2 current assets - 2 merchandise inventories
Then, current asset = 2 merchandise inventories
$465,000 = 2 merchandise inventories
Hence, merchandise inventory = $232,500
c) When the nothing changes, since a current asset is replaced by another current asset
d) $408,000 / $98,000 is = 4.16
e) $297,500 / $155,000 is = 1.92
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Halsted, Inc., has outstanding 10,000 shares of $200 par value, 7% nonparticipating, cumulative preferred stock and 10,000 shares of $40 par value common stock. If the dividend on preferred stock is one year in arrears, and the total cash dividend declared this year is $288,000, then the total amounts distributed to preferred and common stockholders, respectively, are:
Answer:
Preferred stock holders' dividend = $280000
Common stock holders' dividend = $8000
Explanation:
A cumulative preferred stock is one whose dividends are accumulated in arrears and are to paid in the following year(s), if the company fails to pay or partially pay the dividends in a certain year. The yearly dividend on preferred stock is,
Preferred stock dividend = 10000 * 200 * 0.07 = $140000
As the dividends on preferred stock are in arrears for one year, the company will pay a dividend this year on preferred stock of,
Preferred stock dividend to be paid = 140000 + 140000 = $280000
Thus, out of the announced dividend of $288000, $280000 will be paid to the preferred stock holders while the remaining $8000 will be paid to the common stock holders.
Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight line method. During the life of the investment, annual net income and cash inflows are expected to be $25,000 and $65,000 respectively. Yappy Company requires a 10% return on all new investments.
Compute each of the following:
1. Payback period
2. Net present value
3. Profitability index
4. internal rate of return
5. Accounting rate of return
Indicate whether the investment should be accepted or rejected.
Answer:
a. 4.92 years
b. NPV = $26,770.20
c. 1.0837
d. IRR = 12.26%
e. 15.6%
the project should be accepted
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow = $320,000 / $65,000 = 4.92 years
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
NPV and IRR can be calculated using a financial calculator
Cash flow in year 0 = $-320,000
Cash flow each year from year 1 to 8 = $65,000
I = 10%
NPV = $26,770.20
IRR = 12.26%
profitability index = 1 + (NPV / Initial investment) = 1 + ($26,770.20 / $320,000 ) = 1.0837
The project should be accepted because the NPV and profitability index are positive. the IRR is greater than the discount rate. this means that the project is profitable. Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2 = $320,000 / 2 = $160,000
$25,000 / $160,000 = 0.156 = 15.6%
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Capital Investment=$320,000
Expected useful life=8 years
Annual Net income=$25,000
Cash inflows=$65,000
Required Rate of Return=10%
The required whole solution is below;
Based on the NPV rule this investment should be accepted. Because this investment has got positive net present value, therefore this investment should be accepted.
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Larkspur Co. had cost of goods sold of $3,100. If beginning inventory was $3,200 and ending inventory was $1.050. Larkspur's purchases must have been:___________.
a. $950
b. $1,150
c. $2,150
d. $5.250
Answer:
cost of goods purchased= $950
Explanation:
Giving the following information:
Larkspur Co. had cost of goods sold of $3,100.
Beginning inventory was $3,200
Ending inventory was $1,050
To calculate the purchases, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
3,100 = 3,200 + cost of goods purchased - 1,050
cost of goods purchased= 950
Answer: Larkspur's purchases = $950
Explanation: From the information given:
Cost of Goods Sold = $3,100.
Beginning inventory = $3,200
Ending inventory = $1,050
We can obtain the price of the purchases.
We know that: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold.
Therefore: Beginning Inventory + Ending Inventory - Cost of Goods Sold = Purchases.
Thus: $3,200 + $1,050 - $3,100 = $950
Discuss how brand managers integrate social media into their communications strategies, and provide an example of a social media ad that is integrated with other media, such as print, radio, or TV.
Explanation:
Social media has become an advantageous way for companies to carry out advertising, this is due to the high insertion of people in these media, which has more and more space in people's lives.
Exercising communication on social networks is a positive relationship marketing, where there is greater flexibility in communication, greater engagement, less response time, etc.
An example of a social media ad integrated with other media are perfume campaigns, where brands send samples as gifts to digital Instagram influencers to repost on their pages with thousands of followers, which is configured in an advertising exchange that generates a lot audience for brands.
g Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 182,000 shares of common stock outstanding. The journal entry to record the payment of the dividend is: Group of answer choices
Answer:
Shareholders for Dividends $100,100 (debit)
Cash $100,100 (credit)
Explanation:
Dividends are declared on the number of shares outstanding at the declaration date. Thus 182,000 shares of common stock outstanding when Fetzer Company declared a $0.55 per share cash dividend.
Declaration of dividend creates a liability for the company to its shareholders and this will be settled when the payment is made. Journal for the payment is shown above.
Consider a project with the following data: accounting break even quantity = 16,700 units., cash break even quantity = 15,000 units., life = four years., fixed costs = $150,000 variable cost = $ 32 per unit., required return = 15 percent. Ignoring the effect of taxes.
Required:
Find the financial break-even quantity.
Answer:
The financial break-even quantity is 17,385.97
Explanation:
Cash Break even = Fixed Cost / (Price- variable Cost)
15,000 = $150,000 / (P-$32)
15,000 (P) -15,000*32 = $150,000
15,000 (P) - $480,000 = $150,000
15,000 (P) = $150,000 + $480,000
15,000 (P) = $630,000
P = $630,000/15,000
P = $42 per unit
From accounting break even quantity = 16,700 units, = QA
QA= (FC + D)/(P –v)
16,700 = ($150,000 + D)/($42 - $32)
16,700 = ($150,000 + D)/$10
16,700*$10 = ($150,000 + D)
$167,000 = ($150,000 + D)
$167,000 - $150,000 = D
D = $17,000
Therefore, the depreciated value is = $17,000
To find the annual depreciation amount we assume straight-line depreciation Initial investment = 4($17,000) = $68,000
The PV of the OCF must be equal to this value at the financial break even since the NPV is 0:
$68,000 = OCF (PVIFA15%, 4)
$68,000 = OCF * [ 1 - ( 1+ r)^-n ] / r
$68,000 = OCF * [ 1 - ( 1+ 0.15)^-4] / 0.15
$68,000 = OCF * 2.85
OCF = $68,000/2.85
OCF = $23,859.65
Therefore, Break-even level of OCF = $23,859.65
Then,
QF= ($150,000 + $23,859.65)/($42 – $32)
QF= 17,385.97
Therefore, financial break-even quantity is 17,385.97
Treasury bonds paying an 8% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annually? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
8.16%
Explanation:
The computation of the coupon rate is shown below:
= (1 + coupon rate ÷ 2 )^2 - 1
where,
The coupon rate is 0.08
Now placing these values to the above formula
So, the coupon rate is
= (1 + 0.08 ÷ 2 )^2 - 1
= 0.0816
= 8.16%
Hence, the coupon rate that need to be sell if it is paid annually is 8.16% and the same is to be considered
Suppose that the pound is pegged to gold at 6 pounds per ounce, whereas the franc is pegged to gold at 12 francs per ounce. This, of course, implies that the equilibrium exchange rate should be two francs per pound. If the current market exchange rate is 2.2 francs per pound, how would you take advantage of this situ-ation
Answer:
we can look at this problem from 2 different point of views:
if you have francs and wish to buy pounds: then you take 12 francs and purchase 1 ounce of gold, and then you sell it for 6 pounds. This way you will only spend 2 francs per each pound instead of 2.2.
if you have pounds and want to make a gain: you take 6 pounds and purchase 13.2 francs and you then buy 1.1 ounces of gold. Then you sell the 1.1 ounces of gold in exchange for 6.6 pounds.
Any of the scenarios does not include any transaction prices nor shipping costs, it is only theoretical.
Chris purchased a 10 year 100 par value bond where 6% coupons are paid semiannually. Cheryl purchased a 100 par value bond where 6% coupons are paid semiannually. There is no maturity date or redemption value for Cheryl’s bond. Cheryl paid $100 for her bond. The yield for Chris’s bond is 80% of the yield for Cheryl’s bond. How much did Chris pay for his bond?
Answer:
Chris paid $109.68 for his bond. Since he paid a premium for the bond, the YTM is lower than the coupon rate.
Explanation:
yield of Cheryl's bond is 6% since she purchased it at par and the bond's coupon is 6%
if Chris's bond yields 80% of Cheryl's, it will yield 6% x 0.8 = 4.8%
we can use the approximate yield to maturity formula to find the market price of Chris's bond:
2.4%(semiannual) = {3 + [(100 - MV)/20]} / [(100 + MV)/2]
0.024 x [(100 + MV)/2] = 3 + [(100 - MV)/20]
0.024 x (50 + 0.5MV) = 3 + 5 - 0.05MV
1.2 + 0.012MV = 8 - 0.05MV
0.062MV = 6.8
MV = 6.8 / 0.062 = 109.68
Which of the following is a retailing business?
Automotive repair shop
O Travel agency
O Grocery Store
O Farm
Businesses technology
Answer:
B). Grocery store
Explanation:
Retailing is described as the business of selling directly to the customer. It primarily aims to sell goods as well as services to the consumer directly for their end-use, encompassing all the channels of distribution. It is described as the final stage of the distribution process where the retailer directly satisfies consumer demands. Among the given options, the grocery store would be an example of a retailing business as it sells vegetables to the final consumers personally for their consumption, after crossing different channels of distribution i.e. manufacturer(farmer), wholesaler, retailer, and finally the consumer. Thus, option B is the correct answer.
(a) What amount should be deposited in a fund at the end of each quarter at 7% compounded quarterly so that there will be enough money in the fund?
(b) Find the investors quarterly deposit if the money is deposited at 94% compounded quarterly.
The deposit should be__________. $ (Round to the nearest cent as needed)
Answer:
(a) The deposit should be $168.06 quarterly.
(a) The deposit should be $145.32 quarterly.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
An investor needs $11,000 in 19 years.
(a) What amount should be deposited in a fund at the end of each quarter at 7% compounded quarterly so that there will be enough money in the fund?
(b) Find the investors quarterly deposit if the money is deposited at 9.4% compounded quarterly.
The explanations to the answers are now given as follows:
(a) What amount should be deposited in a fund at the end of each quarter at 7% compounded quarterly so that there will be enough money in the fund?
Since the amount should be deposited in a fund at the end of each quarter, the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = M * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV = Future value of the amount needed in 19 years = $11,000
M = Quarterly deposit = ?
r = Quarterly interest rate = 7% / 4 = 0.07 / 4 = 0.0175
n = number of quarters the deposits will be made = 11 * 4 = 44
Substituting the values into equation (1) and solve for M, we have:
11,000 = M * {[(1 + 0.0175)^44 - 1] / 0.0175}
11,000 = M * 65.4531536741798
M = 11,000 / 65.4531536741798
M = $168.06
(b) Find the investors quarterly deposit if the money is deposited at 9.4% compounded quarterly.
We make use of equation (1) in part (a) as follows:
Where,
FV = Future value of the amount needed in 19 years = $11,000
M = Quarterly deposit = ?
r = Quarterly interest rate = 9.4% / 4 = 0.094 / 4 = 0.0235
n = number of quarters the deposits will be made = 11 * 4 = 44
Substituting the values into equation (1) and solve for M, we have:
11,000 = M * {[(1 + 0.0235)^44 - 1] / 0.0235}
11,000 = M * 75.6957891651599
M = 11,000 / 75.6957891651599
M = $145.32
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following production volumes:
Daytripper: 2,000 backpacks in July, 2,200 backpacks in August
Excursion: 1,200 backpacks in July, 900 backpacks in August
Each Daytripper backpack requires 1 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor.
If the total budgeted labor for August is 5,000 hours, how much indirect labor did Teton budget?
A. 550 hours
B. 1,000 hours
C. 1,550 hours
D. 1,900 hours
Answer:
Indirect labor= 550 hours
Explanation:
Giving the following information:
Daytripper: 2,200 backpacks in August
Excursion: 900 backpacks in August
Each Daytripper backpack requires 1 hour of direct labor and each Excursion backpack requires 2.5 hours of direct labor.
First, we need to calculate direct labor:
Direct labor= 2,200*1 + 900*2.5= 4,450
Now, indirect labor:
Indirect labor= total labor hours - direct hours
Indirect labor= 5,000 - 4,450
Indirect labor= 550 hours
Magazine sold 12,480 annual subscriptions on August 1, 2020, for $23 each. Prepare Blossom’s August 1, 2020, journal entry and the December 31, 2020, annual adjusting entry, assuming the magazines are published and delivered monthly.
Answer:
Dr cash $ 287,040
Cr unearned revenue $ 287,040
Dr unearned revenue $119,600
Cr earned revenue $119,600
Explanation:
The Magazine received the subscriptions in advance prior to delivering the published magazine to its readers, as a result, the subscriptions would be treated as unearned revenue until the magazines are delivered, when each month revenue would be recognized.
Amount received=$23*12480=$287,040
On 31 December 2020,5 months publications would have been delivered and should now be shown as revenue earned
5-month subscription=$287,040*5/12=$119600
If the total cost of producing 10 jets is $28 million and the total cost of producing 11 jets is $30 million, this firm is experiencing
Answer:
Economies of scale in the range of 10 to 11 jets.
Explanation:
This firm is experiencing economies of scale, this happens when as a firm or company increases production, the advantage in costs that it receives. There is an inverse relationship between the fixed cost per unit of each jet produced and the number of jet produced. The production of these jets have thereby become efficient from producing 10 at 28m and 11 at 30million.
Matthew, vice president of human resources at Gamma Phi Corporation, is a(n) Multiple Choice middle-level manager. board manager. team leader. upper-level manager. first-line level manager.
Answer: Upper-level manager
Explanation:
Matthew is the Vice President of a Department at Gamma Phi Corp. Matthew in this role is capable of making primary decisions involving Human Resources and by extension, the company.
As such, Matthew is an Upper-Level manager who's decision has an impact on a firm wide basis as Matthew is high up the corporate ladder.
Answer:
upper-level manager
Explanation:
A vice president of human resources is probably the highest level human resources manager in a corporation. Even though he/she is not part of the elite top management: CEO, CFO, and COO (and also CIO or any other Chief something), a vice president is still considered part of upper management.
He/she is in charge of all the human resources department in a corporation.
Which of the following is not a good guideline to follow regarding the use of handouts?
A. Make sure all elements are aligned appropriately with other elements.
B. Never distribute a handout after the beginning of a presentation.
C. Use a mix of serif and sans serif fonts for the text.
D. Make sure handouts have an obvious front door and clear pathway.
Answer: C. Use a mix of serif and sans serif fonts for the text.
Explanation:
The good guideline to follow regarding the use of handouts are making sure that all elements are aligned appropriately with other elements, never distribute a handout after the beginning of a presentation and by making sure that the handouts have an obvious front door and clear pathway.
The option about using a mix of serif and sans serif fonts for the text is not good. This is because the preferred font is usually Times New Roman.
Big Lots is able to compete against Wal-Mart with a cost leadership strategy because of its strengths in highly disciplined merchandise cost and inventory management system. This illustrates the:________.
A) ability of Big Lots to imitate Wal-Mart's tightly integrated activity map.
B) ability to survive against a dominant competitor by changing from a broad competitive scope to a narrow competitive scope.
C) fact that support activities in the firm can provide sources of cost reduction.
D) importance of effective use of primary activities in the value chain.
Answer:
A) ability of Big Lots to imitate Wal-Mart's tightly integrated activity map.
Explanation:
Competitive advantage of a company is it's ability to leverage on unique capabilities and resources to gain more market share than others.
In this instance Big Lots is competing favourably by imitating unique capability of Walmart which is highly disciplined merchandise cost and inventory management system.
A business can imitate another's strategy in order to better compete with them.
For example acquiring a company to increase scale of operations to match a competitor.
Answer:
B) ability to survive against a dominant competitor by changing from a broad competitive scope to a narrow competitive scope
Explanation:
Note that we were told that Big Lot has strengths in inventory management systems; a somewhat narrow competitive scope since most businesses struggle with inventory management.
Also, being highly disciplined in its merchandise cost played a major factor in other to survive against a dominant competitor like Wal-Mart.
Which of the following statements is correct?a. Strategic situations are more likely to arise when the number of decision-makers is very large rather than very small.b. Strategic situations are more likely to arise in monopolistically competitive markets than in oligopolistic markets.c. Game theory is useful in understanding certain business decisions, but it is not really applicable to ordinary games such as chess or tic-tac-toe.d. Game theory is not necessary for understanding competitive or monopoly markets.
Answer: d. Game theory is not necessary for understanding competitive or monopoly markets.
Explanation:
Game Theory in Business is applied to see the options available to competitors in the market if they engage in certain actions because the outcome of one party's decision is affected by the decision of the other party. In the context of business it is often used to calculate how much profit or loss companies will make if they engage in certain actions based on the decisions of the other party.
It is therefore not necessary in Perfect Completions because the market sets the price and the participants follow. There is not need to analyse what will happen if one party picks a certain method and the other as well. It will be irrelevant because the same price will be imposed regardless.
It is also unnecessary in Monopoly markets simply because a monopoly has market control and Game theory is for situations where at least 2 parties are fighting for market control.
ABC Company is a merchandising business. In Year 1, the business experienced the following events:
1. Acquired $1,000 cash from the issue of common stock
2. Purchased inventory for $530 cash.
3. Sold inventory costing $490 for $730.
What is the value of ABC Company's ending merchandise inventory?
a) $240
b) $490
c) $40
d) $530
Answer:
c) $40
Explanation:
Purchase of Inventory $530
Less: Cost of inventory sold $490
Ending merchandise inventory $40