Two companies, Ghost and Phantom manufacture similar printer color cartridges. The following data for the two companies for the year 2020 are provided below:

Ghost ($) Phantom ($)
Sales revenue 90,000 108,000
Total costs 63,000 72,000
Variable Costs 40 % of sales revenue 40%
Required:
1- Calculate the Break Even Point (BEP) in dollars for each company.
2- Calculate the percentage margin of safety for each company.
3- If sales of the product in Ghost company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart.
4- In 2020, Phantom plans to increase the variable cost by $4 while the fixed cost and the selling price will remain constant. Calculate the number of units to be sold in order to earn the same profit as Ghost in 2020 (the number of units for both Phantom and Ghost is equal to 3000).
5- Based on your answers to parts 1 and 2, Discuss which company has a safer financial position, and why.

Answers

Answer 1

1. The calculation of the break-even point in dollars is

                                                     Ghost ($)      Phantom ($)

Break-even Point in dollars       $45,000      $48,000

                                            ($27,000/60%)      ($28,800/60%)

2. The calculation of the percentage margin of safety is as follows:

                                                     Ghost ($)      Phantom ($)

Percentage margin of safety             50%       55.6%

                          ($45,000/$90,000 x 100)       ($60,000/$108,000 x 100)

The margin of safety = Sales revenue - break-even revenue

=                                          $45,000         $60,000

3. The determination of the break-even units in Ghosts Company is as follows:

= Fixed costs/Contribution margin per unit

= 1,500 units ($27,000/$18)

4. The calculation of the number of units to be sold for Phantom Company to increase its variable cost by $4 ($18 from $14) with the fixed cost and the selling price remaining constant is 1,600 units ($28,800/$18).

What is a break-even chart?

A breakeven chart shows the sales volume level at which total costs equal sales revenue.

In a break-even chart, losses are incurred below the break-even point, and profits are earned above the break-even point

Thus, the break-even chart plots revenue, fixed costs, and variable costs on the vertical axis, and volume on the horizontal axis.

Data and Calculations:

                                              Ghost ($)     Phantom ($)

Sales revenue                        90,000          108,000

Total costs                              63,000            72,000

Variable Costs                       40 % of sales revenue 40%

Variable costs =                    $36,000          $43,200 ($108,000 x 40%)

Contribution margin             $54,000          $64,800

Fixed costs =                         $27,000          $28,800 ($72,000 - $43,200)

Contribution margin ratio     60%                 60% (100% - 40%)

1. Break-even Point in dollars $45,000      $48,000 ($28,800/60%)

2. Percentage margin of safety 50%       55.6% ($60,000/$108,000 x 100)

The margin of safety = Sales revenue - break-even revenue

=                                          $45,000         $60,000

3. Break-even units in Ghosts Company = Fixed costs/Contribution margin per unit

= 1,500 units ($27,000/$18)

Sales price per unit = $30 ($90,000/3,000)

Variable cost per unit = $12 ($36,000/3,000)

Contribution margin per unit = $18 ($30 - $12)

4. The calculation of the number of units to be sold for Phantom Company to increase its variable cost by $4 ($18 or $14 + $4) with the fixed cost and the selling price remaining constant is 1,600 units ($28,800/$18).

Sales price per unit = $36 ($108,000/3,000)

Variable cost per unit = $18.40 ($55,200/3,000)

Contribution margin per unit = $18 ($36 - $18)

Learn more about the break-even analysis at https://brainly.com/question/21137380


Related Questions

Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to the company’s two departments for the month of January: Mixing Bottling Cases of cola in work in process, January 1 10,000 5,000 Cases of cola completed/transferred out during January 65,000 ? Cases of cola in work in process, January 31 4,000 7,000 How many cases of cola were completed and transferred to Finished Goods Inventory during January?

Answers

Answer:

$63,000

Explanation:

The computation of cases of cola were completed and transferred to Finished Goods Inventory during January is shown below:-

Completed and transferred to finished goods inventory is

= Case of cola as on Jan 1 work in process + completed & transferred out - ending work in process as on Jan 31

= $5,000 + $65,000 - $7,000

= $63,000

Hence, the number of cases of cola is $63,000

1. Suppose Mary intends to sell two software products X & Y for the next convention & budgets the following . X Y Total Units Sold. 60 40 100 Revenues, $200 $100 per unit $12,000 $ 4,000 $16,000 Variable Costs, $120 $70 per unit 7,200 2,800 10,000 Unit Contribution Margin, $80 $ 30 per unit $ 4,800 $ 1200 $ 6,000 Fixed Costs 4,500 Operating Income $ 1,500 Required: What is the BEP (in units & in Birr)

Answers

The break-even point (in units and dollars) for Mary, who intends to sell two software products X & Y are:

1) Break-even point in units = Fixed costs/Weighted contribution margin per unit

                                                     X               Y

=                                              70 units                750 units

                                     ($4,500/$64)    ($4,500/$6)

2) Break-even point in dollars = Fixed costs/Weighted contribution margin ratio

                                                     X               Y

=                                           $5,625            $22,500

                                     ($4,500/80%)    ($4,500/20%)

What is the break-even point?

The break-even point is the point at which the total revenue equals total costs (including variable and fixed costs).

At the break-even point, both in units and in dollars, the organization records no profit or loss.

For more than one product, the computation of the break-even point is based on the weighted contribution margin.

Data and Calculations:

                                                      X               Y                     Total

Units Sold                                      60           40                       100

Revenues,                                 $200      $100 per unit

Total                                     $12,000       $ 4,000                 $16,000

Variable Costs,                         $120         $70 per unit

Total variable costs                7,200             2,800                10,000

Unit Contribution Margin,         $80          $ 30 per unit

Weighted contribution margin   $64          $6 ($30 x 20%)

Total Contribution Margin $ 4,800          $ 1,200                $ 6,000

Weighted contribution margin  80%         20%                       100%

Fixed Costs                                                                               4,500

Operating Income                                                                  $ 1,500

Learn more about break-even analysis at https://brainly.com/question/21137380

The ______ is a corporate planning tool in which the corporation is viewed as a portfolio of business units.

Answers

It should be noted that a growth-share matrix is a corporate planning tool in which the corporation is viewed as a portfolio of business units.

What is growth-share matrix?

The growth-share matrix serves as  planning tool that uses graphical representations of a company's products .

It is a tool that help the company decide what it should keep, sell, or invest.

learn more about growth-share matrix at:

https://brainly.com/question/24684801

If firms can set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance, they generally can close the ________ gap. Multiple Choice knowledge standards delivery communication ethical

Answers

The gap which firms can close up when they set appropriate service criteria, train employees to meet and exceed those criteria, and measure service performance is the:

Standards gap

What are Standards Gap?

This refers to the difference between people who have knowledge about something and effective application and people who do not have this.

With this in mind, we can see that standards gap can actually be bridged if firms engage in service criteria and also train the employees that can meet and maintain such criteria.

Read more about standards gap here:
https://brainly.com/question/25474184

At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1.5 times the regular hourly rates. Company records show the following information for the week ended December 26, 20--. Employee Salary Hrs. WorkedCumulative Taxable Wages as of Last Pay Period (12/19/--) OFFICEKing, M.$135,200.00 per year40$132,600.00 Manera, E.$6,500.00 per month40$76,500.00 Tate, S.$3,900.00 per month48$45,900.00 Yee, L.$12.50 per hour44.5$27,675.13 PLANTDiaz, R.$12.50 per hour48$14,778.96 Zagst, J.$14.50 per hour52$24,703.02 On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--. Also, determine the total where indicated.

Answers

Answer:

Employee        Salary          Hrs. Worked        Cumulative Taxable

                                                                         Wages as of Last Pay Period

King, M.      $135,200 (year)     40                  $132,600.00

Manera, E.     $6,500 (month)  40                  $76,500.00

Tate, S.          $3,900 (month)  48                  $45,900.00

Yee, L.            $12.50 (hour)     44.5               $27,675.13

Diaz, R.           $12.50 (hour)     48                  $14,778.96

Zagst, J.          $14.50 (hour)     52                  $24,703.02

(a) regular earnings,  

King, M. $135,200 / 52 weeks = $2,600    

Manera, E. $1,500 weekly salary    

Tate, S. $900      

Yee, L. $12.50 x 40 = $500        

Diaz, R. $12.50 x 40 = $500        

Zagst, J. $14.50 x 40 = $580

(b) overtime earnings,

King, M. $0    

Manera, E. $0  

Tate, S. [($900 / 40) x 8 x 1.5] = $270      

Yee, L. $12.50 x 4.5 x 1.5 = $84.38        

Diaz, R. $12.50 x 8 x 1.5 = $150                  

Zagst, J. $14.50 x 12 x 1.5 = $261

(c) total regular and overtime earnings,

King, M. $2,600    

Manera, E. $1,500  

Tate, S. $1,170      

Yee, L. $584.38        

Diaz, R. $650                  

Zagst, J. $841

(d) FICA taxable wages (the FICA taxes limit for 2020 is $137,700, so everyone will be taxed)

King, M. $2,600    

Manera, E. $1,500  

Tate, S. $1,170      

Yee, L. $584.38        

Diaz, R. $650                  

Zagst, J. $841

(e) FICA taxes to be withheld

King, M. $2,600 x 7.65% = $198.90    

Manera, E. $1,500 x 7.65% = $114.75      

Tate, S. $1,170 x 7.65% = $89.51          

Yee, L. $584.38 x 7.65% = $44.71            

Diaz, R. $650 x 7.65% = $49.73                      

Zagst, J. $841 x 7.65% = $64.34    

(f) net pay for the week ended

King, M. $2,600 - $198.90 = $2,401.10    

Manera, E. $1,500 - $114.75 = $1,385.25      

Tate, S. $1,170 - $89.51 = $1,080.49          

Yee, L. $584.38 - $44.71 = $539.67            

Diaz, R. $650 - $49.73 = $600.27                      

Zagst, J. $841 - $64.34 = $776.66    

The two most common types of fraud impacting financial statements are:___________

a. corruption and fraudulent financial reporting.
b. misappropriation of assets and embezzlement.
c. fraudulent financial reporting and e-commerce fraud.
d. fraudulent financial reporting and misappropriation of assets.

Answers

The two most common types of fraud impacting financial statements are d. fraudulent financial reporting and misappropriation of assets.

What are the main financial statements frauds?

The main types of financial statement fraud include:

Improper revenue recognitionOverstatement of assetsUnderstatement of liabilitiesMisappropriation of assetsImproper disclosure.

Experience has shown that revenue recognition is the most common type of financial statement fraud.

Thus, the two most common types of fraud impacting financial statements are Option d.

Learn more about financial statement frauds at https://brainly.com/question/26990784

Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effect of each of the following transactions on the company's 2019 gross income assuming that the company uses any available options to defer its taxes.

Required:
a. In December 2018, the company received a $1,200 advance payment from a customer for an appliance that Drake special ordered from the manufacturer. The appliance did not arrive from the manufacturer until January 2019, and Drake immediately delivered it to the customer. The sale was reported in 2019 for financial accounting purposes.
b. In October 2019. the company sold a 6-month service contract for $240. The company also sold a 36-month service contract for $1,260 in July 2019.

Answers

Answer:

(a) $1,200

(b) $330

Explanation:

(a)

The advance payment was issued in 2018, however the items throughout 2018 were not shipped. The products were distributed throughout 2019 as well as the transaction for accounting information requirements was announced throughout 2019.

Therefore, in 2019, $1200 would include gross revenue  

(b)

Service contract for 6 months will be:

Drake would include gross income throughout 2019 of [tex]120(40\times \frac{3}{6} )[/tex] ($)and gross income throughout 2020 of $120. In October year 2019, because a corporation offered a 6-month contract, total sales in 2019 represented just a 3-month service agreement.

Service contract for 36 months will be:

Throughout 2019 gross sales, Drake would include [tex]120(= (= 1260\times \frac{6}{36} )[/tex].The residual balance would not have been all conducted until the close including its tax year of collection since the contract became sold through 36 month. The residual amount of [tex]1050 (= 1,260-210)[/tex] is thus used throughout gross sales for 2020.  

Consequently,

⇒  Cumulative gross income used throughout 2019 = total earnings of 6 months service agreement + gross income of 36 months service agreement

⇒  [tex]120 + 210[/tex]

⇒  [tex]330[/tex] ($)

A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from either supplier A or supplier B. Their price lists are as follows: SUPPLIER A SUPPLIER B Quantity Unit Price Quantity Unit Price 1–199 $14.00 1–149 $14.10 200–499 13.80 150–349 13.90 500 + 13.60 350 + 13.70 Click here for the Excel Data File Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit. a-1. Which supplier should be used? Supplier A Supplier B a-2. What order quantity is optimal if the intent is to minimize total annual costs? 150 500 200 350 300 1

Answers

Answer:

I will take Supplier A and make orders of 500 units as give lower inventory cost

From the proposed units the best option to inimize cost is 500 units.

Explanation:

    Supplier A      Supplier B

    1 –199 $14.00         1–149 $14.10

200–499   13.80    150–349 13.90

     500+    13.60          350 + 13.70

Holding Cost 25% of the unit price.

D = annual demand =

800 monthly x 12 month = 9,600 per year

S= setup cost = ordering cost = 40

H= Holding Cost = $13.60 x 25% = 3.40

Optimal Order Quantity

taking $13.60 (order size must be over 500)

[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]

[tex]Q_{opt} = \sqrt{\frac{2(9,600)(40)}{3.40}}[/tex]

OOQ: 475.2708206

As it is below the 500 to get the $13.60 price is not a cost minimizing option but, it can be better than the alternative

Ordering 9600 / 500 x $40 = $768

Holding: 500/2 x $13.60 x 25% = $850

Total $ 1,618

Using Supplier B of $13.70 (reqirement order size +350)

H= Holding Cost = 13.70 x 25% = 3.43

[tex]Q_{opt} = \sqrt{\frac{2(9,600)(40)}{3.43}}[/tex]

OOQ = 473.5330787

This order size will minimize the inventory cost.

Ordering 9600 / 474 x $40 = $810

Holding: 474/2 x $13.70 x 25% = $812

Total $ 1,622

Given cases:

Ordering 9600 / 150 x $40 = $2,560

Holding: 150/2 x $14.00 x 25% = $262.5

Total $ 2,822.5

Ordering 9600 / 500 x $40 = $768

Holding: 500/2 x $13.60 x 25% = $850

Total $ 1,618

Ordering 9600 / 200 x $40 = $1,920

Holding: 200/2 x $13.80 x 25% = $345

Total $ 2,265

Ordering 9600 / 350 x $40 = $1,097

Holding: 350/2 x $13.70 x 25% = $599

Total $ 1,696

Ordering  9600 / 300 x $40 = $1280

Holding 300/2 x $13.80 x 25%  = $517.5

Total $1797.5

As per the equation , Supplier A and make orders of 500 units as give lower inventory cost and from the Proposed units the best calculation to minimize the cost is 500 Units.

Like :-

Supplier A               Supplier B

   1 –199 $14.00         1–149 $14.10

  200–499   13.80    150–349 13.90

    500+    13.60          350 + 13.70

So the Holding Cost 25% of the unit price.

D = Annual demand = 800 monthly x 12 month = 9,600 per year

S= setup cost = ordering cost = 40

H= Holding Cost = $13.60 x 25% = 3.40

Optimal Order Quantity

taking $13.60 (order size must be over 500)

As it is below the 500 to get the $13.60 price is not a cost minimizing option but, it can be better than the alternative

Ordering 9600 / 500 x $40 = $768

Holding: 500/2 x $13.60 x 25% = $850

Total $ 1,618

Using Supplier B of $13.70 (requirement order size +350)

H= Holding Cost = 13.70 x 25% = 3.43

This order size will minimize the inventory cost.

Ordering 9600 / 474 x $40 = $810

Holding: 474/2 x $13.70 x 25% = $812

Total $ 1,622

For more information on Supplier , please refer the below link :

https://brainly.com/question/9379790

Q1 As a consequence of the diversity of risk, risk management requires a … approach.


1.
narrow


2.
modern

3.
broader


4.
traditional

Q2The board’s role should be to steer the corporation towards corporate governance policies that support … sustainable growth in … value.


1.
long-term; stakeholder


2.
long-term; shareholder


3.
short-term; stakeholder


4.
short-term; shareholder

Q 3Which one of the following activities in a company needs to be reported under the triple bottom-line principle?


1.
Financial performance


2.
Technological performance


3.
Legal performance


4.Environmental performance
Q6 Which stage in the ERM process must be ongoing in order to increase the success of implementing the entire process?


1.
Risk treatment


2.
Risk analysis


3.
Communication and consultation


4.
Monitoring and review
Q10
The King III Report on Corporate Governance introduced which of the following new concepts? a Shareholder approval of remuneration policies b Alternative dispute resolution c Directors’ performance evaluation d Business rescue Choose the correct combination:   1. a, c 2. a, b, c 3. b, c, d 4. All of the above​

Answers

Risk management requires a broader approach.

The board’s role should be to steer the corporation towards corporate governance policies that support long-term sustainable growth in shareholder value.

The activities in a company that needs to be reported under the triple bottom-line principle is Financial performance

What is Risk management?

Risk management is known to be the method of knowing, assessing and managing threats to an firm's capital and earnings.

Note that these risks is one that emanate from different kinds of sources such as financial issues, legal liabilities, technology issues, strategic management errors, etc.

Learn more about Risk management  from

https://brainly.com/question/1224221

When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

Answers

When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

the bigger the plant, the more efficient production became.

What is Economies of Scale?

This refers to the cost advantage which a particular company makes as they produce more goods using fewer input costs as a result of the size of the market.

With this in mind, with the evolution of businesses and the production of larger amounts of product, then it can be said that their use of mass production methods shows that if the production plant is bigger, then the production is more efficient.

Read more about economies of scale here:

https://brainly.com/question/780900

Answer: The bigger the plant, the more efficient production became

Explanation:

What are the principle advantages of using brokers, personalised trading networks and
associations in the marketing of international commodities?

Answers

Answer:

search it up online

Explanation:

A local barnes and noble paid a 79.00 net price for each hardbound atlas. The publisher offered a 10% trade discount. What was the list price?

Answers

Answer:

87.78

Explanation:

The net price was $79.00 after a 10% discount. It means 79.00 was 90% of the list price.

The list price is 79.00/ 90 x 100

=0.87 x 100

=87.7777777

=87.78

Martha is an 88-year-old legally blind widow. The assessed value of her condominium is $49,500. What is the total property tax exemption on her homesteaded property

Answers

The total property tax exemption on her homesteaded property will be $26,000.

What is total property tax exemption?

Generally, adult that are aged 65, older or disabled are qualified for the tax exemption on the date you become age 65 or disabled.

In conclusion , because her assessed value of her condominium is $49,500, then, she is entitled to a tax exemption on her homesteaded property up to $26,000.

Read more about tax exemption

brainly.com/question/25783927

Andrew Industries is contemplating issuing a ​-year bond with a coupon rate of ​(annual coupon​ payments) and a face value of . Andrew believes it can get a rating of A from Standard​ & Poor's.​ However, due to recent financial difficulties at the​ company, Standard​ & Poor's is warning that it may downgrade Andrew​ Industries' bonds to BBB. Yields on​ A-rated, long-term bonds are currently ​, and yields on​ BBB-rated bonds are . a. What is the price of the bond if Andrew Industries maintains the A rating for the bond​ issue? b. What will be the price of the bond if it is​ downgraded?

Answers

Answer:

The numbers are missing, so I looked for a similar question to fill in the blanks:    

Andrew Industries is contemplating issuing a 30​-year bond with a coupon rate of 7.13% ​(annual coupon​ payments) and a face value of $1,000. Andrew believes it can get a rating of A from Standard​& Poor's.​ However, due to recent financial difficulties at the​ company, Standard​ & Poor's is warning that it may downgrade Andrew​ Industries' bonds to BBB. Yields on​ A-rated, long-term bonds are currently 6.43%​, and yields on​ BBB-rated bonds are 6.84%.

a. What is the price of the bond if Andrew Industries maintains the A rating for the bond​ issue?

if the YTM is 6.43%, then the market price will be:

0.0643 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]

0.0643 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]

0.0643 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M

32.15 + 0.03215M = 104.63 - 0.03333M

0.06548M = 72.48

M = 72.48 / 0.06548 = $1,106.90

b. What will be the price of the bond if it is​ downgraded?

if the YTM is 6.84%, then the market price will be:

0.0684 = {71.30 + [(1,000 - M)/30]}/ [(1,000 + M)/2]

0.0684 x [(1,000 + M)/2] = 71.30 + [(1,000 - M)/30]

0.0684 x (500 + 0.5M) = 71.30 + 33.33 - 0.03333M

34.20 + 0.0342M = 104.63 - 0.03333M

0.06753M = 70.43

M = 70.43 / 0.06753 = $1,042.94

What are the things that you need to change for you to be a better person​??

Answers

Explanation:

Any negative attitude you might ha e toward life and/or workIf the way you treat others is not how you want to be treated, you need to change your behavior.Be open-mindedAlways try to see the good Love yourself

What are the differences between psychodynamie and psychounalytic
theories of personality?

Answers

Answer:

The words psychodynamic and psychoanalytic are often confused. Remember that Freud's theories were psychoanalytic, whereas the term 'psychodynamic' refers to both his theories and those of his followers. Freud's psychoanalysis is both a theory and therapy.

Snow Cap Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $160,000. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin.

Answers

The break-even point in units using the mathematical equation  is 2,000 in units and the unit contribution margin is 80 per unit.

Break even points in units

a. Break-even point in unit

Using this formula

Break-even point in unit=Fixed cost/(Selling price-Variable cost)

TC = FC + VC

Sales - TC = Net Income

Sales - TC = 0

Sales - FC - VC = 0

2500(Q)-160,000-170(Q) = 0

80(Q)-160,000 = 0

80(Q)=160,000

Q=160,000/80

Q=2,000 break-even in units

b. Unit contribution margin

Unit contribution margin = Selling price- Variable cost

Unit contribution margin= $250 - $170

Unit contribution margin =$80 per unit

Inconclusion the break-even point in units using the mathematical equation  is 2,000 in units and the unit contribution margin is 80 per unit.

Learn more about break-even point here:https://brainly.com/question/9212451

A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutually exclusive revenue alternatives should be selected for improving the marketability of personal care products used for conditioning hair, cleansing skin, removing wrinkles, etc. The alternatives (X, Y, and Z) were ranked in order of increasing initial investment and then compared by incremental rate of return analysis. The rate of return on each increment of investment was less than the company's MARR of 17% per year. The alternative to select is: Group of answer choices

Answers

Answer: a. DN

Explanation:

The Minimum Acceptable Rate of Return (MARR) which is also known as the Hurdle Rate is the rate of return that will be earned by an investment to ensure that it will cover its cost.

This means that below the MARR, the project will bring in less than the costs it incurred. This is therefore not ideal.

The rate of return on each increment was less than the MARR of 17% which means that they are not profitable.

The company should not invest or rather Do Nothing.

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.

Answers

Answer:

General Ledger

1.

Cash $40,000 (debit)

Capital $40,000 (credit)

Owners Invest In the business

2.

Supplies $500 (debit)

Accounts Payable $500 (credit)

Supplies purchased on credit

3

Equipment $25,000 (debit)

Cash $3,500 (credit)

Note Payable $21,500 (credit)

Equipment purchased partly in cash and in credit

4.

Accounts Receivable $4,000 (debit)

Commission Earned $4,000 (credit)

Commission earned not yet received

5.

Rent Expense $700 (debit)

Cash $700 (credit)

Rent paid in cash

6.

Accounts Payable $250 (debit)

Cash $250 (credit)

Settlement of Accounts Payable

7.

Advertising Expense $800 (debit)

Accounts payable $800 (credit)

Advertising Bill due

8.

Salaries Expenses $2,500 (debit)

Cash $2,500 (credit)

Salaries paid

9.

Dividends $1,200 (debit)

Cash $1,200 (credit)

Dividends paid to owners of the company

10.

Cash $2,000 (debit)

Accounts Receivable $2,000 (credit)

Accounts Receivables settle their debts

Explanation:

See the journal entries prepared including narrations (for your learning and understanding)

Tookies Tacos’ next annual dividend will be $4.26 a share and all later dividends are expected to increase by 4.4 percent annually. What is the rate of return if this stock is currently selling for $48.74 a share?

Answers

The rate of return if this stock is currently selling for $48.74 a share is 13.14%.

Rate of return

Using this formula

Rate of return=(Annual dividend/Stock current price)+Expected rate

Let plug in the formula

Rate of return= ($4.26/$48.74) + .044

Rate of return=0.0874+0.044

Rate of return=0.1314×100

Rate of return=13.14%

Inconclusion the rate of return if this stock is currently selling for $48.74 a share is 13.14%.

Learn more about rate of return here:https://brainly.com/question/24301559

Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price $167 Materials and purchased parts $25/unit Direct Labor 2 hrs at $20 per hour Fixed Cost $1,400,000 If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.

Answers

The manufacturing cost per unit for Tech Engineering is $97 having charged overhead expenses at 80 % of labor cost

What is manufacturing cost?

Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material and direct labor.

Manufacturing cost is computed as:

= Materials and purchased parts cost + Direct labor cost + Overhead expenses

= $25 + $40 + 80% * $40

= $25 + $40 + $32

= $97

Hence, the manufacturing cost per unit for Tech Engineering is $97

Learn more about  manufacturing cost here : https://brainly.com/question/13767214

Which of the following methods may be used to report comprehensive income? (Select all that apply.) Check All That Apply In a single, continuous statement of comprehensive income In a single, continuous statement of comprehensive income In the statement of shareholdersâ equity In the statement of shareholdersâ equity In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but nonconsecutive statements, an income statement and a statement of comprehensive income.

Answers

i suggest reading the question carefully and the reading part

QUESTION 9 / 10
Which of the following statements is TRUE?
A. People with low credit scores are usually low-risk
borrowers.
B. The longer you use credit responsibly, the higher your
credit score will be.
C. Applying for several credit cards in one year can help
increase your credit score.
D. Paying off your entire credit card balance can lower
your credit score.

Answers

Answer:

B

Explanation:

Hello!

Let's analyze the statements and gather the accuracy of each response.

Note, that a higher credit score is good, and a lower one is bad.

A) People with low credit scores are usually very reckless with their money and their credit cards; therefore, they are high-risk borrowers to people who give them loans because they might never pay them back (which resulted in the low credit score to begin with)

B) The longer you use your credit card and pay on time, the more your credit score will rise. This is a very factual statement.

C) Applying for several credit cards can actually lower your credit score. If you have so many credit cards, you might end up forgetting to pay one, which lowers it, or with improper account management.

D) Paying off your credit card is good...so why would it lower a credit score?

Prepare the adjusting journal entries for the following transactions.

a. Supplies for office use were purchased during the year for $500, of which $100 remained on hand (unused) at year-end.
b. Interest of $250 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
c. At year-end, salaries and wages payable of $3,600 had not been recorded or paid.
d. At year-end, one-half of a $2,000 advertising project had been completed for a client, but nothing had been billed or collected.
e. Redeemed a gift card for $600 of services.

Answers

Answer: See attachment

Explanation:

The adjusting journal entries for the transactions has been attached. It should be noted that for (a), there was a debit of supplies expense by $400 which was calculated as:

= $500 - $100

= $400

For (d),the accounting revenue of $1000 was gotten as:

= 1/2 × $2000

= $1000

Consider the following national data: tax revenues as a percentage of GDP: 30 percent; government spending as a percentage of GDP: 31 percent; unemployment rate: 4 percent; inflation rate: 5 percent. What is the misery index for this nation

Answers

The misery index for the country given the national data is 9%.

What is the misery index?

The misery index is the sum of the current unemployment rate and the current inflation rate. In the United States, the current misery index is 11.67%.

Misery index = unemployment rate + inflation rate

4% + 5% = 9%

For more information about inflation, please check: https://brainly.com/question/25783683

Kevin’s Bacon Company Inc. has earnings of $7 million with 2,500,000 shares outstanding before a public distribution. Eight hundred thousand shares will be included in the sale, of which 500,000 are new corporate shares, and 300,000 are shares currently owned by Ann Fry, the founder and CEO. The 300,000 shares that Ann is selling are referred to as a secondary offering and all proceeds will go to her. The net price from the offering will be $18.50 and the corporate proceeds are expected to produce $1.4 million in corporate earnings. a. What were the corporation’s earnings per share before the offering? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Answers

Answer:

$2.80

Explanation:

The computation of the corporation’s earnings per share before the offering is shown below:-

Corporation’s earnings per share before the offering = Earnings ÷ Outstanding shares

= $7,000,000 ÷ 500,000

= $2.80

Therefore for computing the corporation’s earnings per share before the offering we simply applied the above formula.

The treasurer for Pittsburgh Iron Works wishes to use financial futures to hedge her interest rate exposure. She will sell five Treasury futures contracts at $185,000 per contract. It is July and the contracts must be closed out in December of this year. Long-term interest rates are currently 16.30 percent. If they increase to 18.50 percent, assume the value of the contracts will go down by 15 percent. Also, if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $165,000. This expense, of course, will be separate from the futures contracts.

Required:
a. What will be the profit or loss on the futures contract if interest rates increase to 10.50 percent by December when the contract is closed out?
b. After considering the hedging, what is the net cost to the firm of the increased interest expense of $139,000?
c. What percent of this $139,000 cost did the treasurer effectively hedge away?

Answers

Answer:

Explanation:

185000x 1-0.15

= 185000 x 0.85

= 157250

gain = 185000-157250

= 27750

number of contracts = 5

5 x 27750

= 138750

other commitments = 16500

165000 - 138750

= 26250

this is the net cost

percentage hedged away:

138750/165000

= 0.841

= 84.1%

c. loss. there would be a loss on future contract sincelower interest would bring about greater bond prics and the purchase price would be more than the initial sales price.

In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 650 units at $4, (2) 750 units at $6, and (3) 850 units at $7. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter an average unit cost in dollars eTextbook and Media List of Accounts Compute the cost of the ending inventory under the average-cost method, assuming there are 550 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.) The cost of the ending inventory $enter the cost of the ending inventory in dollars

Answers

Answer: Average unit cost=$5.800 per unit

Cost of Ending inventory =$3,190

Explanation:

Average unit cost

First purchase= 650 units x $4=$2,600

Second Purchase=750 units x $6 =$4,500

Third Purchase=    850 units x $7 = $5,950

Total Cost =                                     $13,050

Average unit cost = Total cost/ number of units =13,050/(650+750+850)= 13,050/2250= $5.8 per unit

Cost of Ending inventory = 550 unts at hand x $5.8 =$3,190

(using the average cost method)

Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $6,500 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $300 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $12,300 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $12,300 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Answers

Answer: Check attachment

Explanation:

Apr. 17:

Account payable:

= $6500 - $900

= $5600

Merchandise Inventory

= $5600 × 2%

= $5600 × 0.02

= $112

Cash = $5600 - $112

= $5488

Apr. 28:

Account payable:

= $12300 - $500

= $11800

Merchandise inventory

= $11800 × 1%

= $11800 × 0.01

= $118

Cash = $11682

Check attachment

What jobs will increase in demand in the near future?
O Technology, art and service
O Taxi drivers, postal carriers and fast food cooks
O Data entry, door to door sales and electronic equipment assemblers
O All of the above

Answers

Answer:

In my opinion, the jobs that will increase in demand in the near future is:

Option 3 - Data entry, door to door sales and electronic equipment assemblers.

Explanation:

Because the world is simply advancing to these new technologies that are being created, might i say the world is getting advanced each year that passes. Which makes Data Scientists, Artificial Intelligence Professionals, Cyber Security Professionals, Technical Engineering and other jobs get higher demands!

So i could suggest these jobs if you're looking for jobs that will be needed somewhat in the future.

I hope this will help you! ^^

Other Questions
opportunities and threat in safaricom Find the value of xx, yyy, and zz in the parallelogram below. Which inequality is true when the value of s is 14? please help meeee i dont understand The measure of angledcg is 145. point c has four lines extending from it. one line extends to point d, another extends to point e, another extends to point f, and another extends to point g. angle e c f is 20 degrees. angle f c g is 25 degrees. what is mangledce? 90 100 180 190 find the volume of this prism iready QUESTION 4 of 10: Last year your store had total sales of $367,000. Because of a boost in the economy, you expect sales to increase 3%per year for the next 2 years. What are your projected sales in 2 years?a) $245,050b) $345,310c) $378,010d) $389,350Submit.. How did a users computer connect to aol when it first came out. An incident ray of light strikes water at an angle of 30. The index of refraction of air is 1. 0003, and the index of refraction of water is 1. 33. What is the angle of refraction rounded to the nearest whole number? 22 24 30 42. The wild-type allele for a gene has more base pairs than the mutated form of the allele. Which type of mutation occurred? What kinds of plants did farmers growin Africa, China, Central America, andPeru? Is the car moving backwards between D and F? Explain your answer. in the figure, a | b and mZ1 - 34.What is the mZ5Enter your answer in the box What occurs during stage one sleep Complete the sentences tosummarize the article.Esports may seem like an ____career, but it involveslong hours of intense ____Also, professional players oftendevelop pain, and their careers are ____For some, it may beworth the sacrifices, but for others itmay be better to_________. What are the Medici Family Inventions/ Achievements 25x -5 + 32 = (when x = 3) 50 points hlep Explain how to graph a polynomial function in factored form. What do the factors mean in terms of the polynomial? Graph f(x)=(x2)^2 (x+1) (x4) Select all of the situations below that can be modeled by the expression 4 + 3x.Four more than three and a number.Four more than three times a number.The sum of three times a number and four.The sum of the product of four, three, and a number.The sum of four and the product of three and a number. Identify like terms in the expression. 12n-6+p+6n