Answer:
Yes, The project will be accepted.
Explanation:
Projects should be accepted when their internal rate of return is greater than the Weighted Average Cost of Capital (WACC). The WACC represents the cost or risk of the company so if the return is greater than the risk, then this will be favorable.
An educational institution has total direct labor and material costs of $1964 per student. Its fixed costs are $352,800. Total revenues for the year were $1,800,000. It had 800 students in the past year. How many students should they accept in the next year to break even assuming the variable cost margins are equal to this year, and assuming fixed costs are to increase by $19,000 due to increased rent for expansion? (round to the nearest whole number).
Answer:
1300 students
Explanation:
The computation of the no of students to be accepted for break even is given below:
Fixed cost is
= $352,800 + $19,000
= $371,800
Revenue per student is
= $1,800,000 ÷ 800
= 2250
And,
Variable cost per student = 1964
So,
Contribution margin = Revenue - Variable cost
= $2,250 - $1,964
= $286
Break even point is
= Fixed cost ÷ Contribution margin per unit
= 371800÷ 286
= 1300 students
Canton Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Canton estimates that 3% of units sold each period will require repair at an average cost of $160 per unit. During the current period, Canton sold 100,000 units and repaired 2,400 of those units. (a) How much warranty expense must Canton report in its cur
Answer:
$480,000
Explanation:
Calculation to determine much warranty expense must Canton report
Using this formula
Warranty expense=Average cost per unit*Unit sold*Estimated percentage of units sold
Let plug in the formula
Warranty expense= $160*100,000*3%
Warranty expense=$480,000
Therefore warranty expense that Canton must report is $480,000
Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $500,000 available at the end of the five-year period? Assume that the company can invest money at: (
Answer:
Results are below.
Explanation:
Giving the following information:
Future value (FV)= $500,000
Number of periods= 5 years
We were not provided with an interest rate, I will assume an interest rate of 7% compounded annually.
To calculate the initial investment, we need to use the following formula:
PV= FV / (1 + i)^n
PV= 500,000 / (1.07^5)
PV= $356,493.1
Marlow Company purchased a point of sale system on January 1 for $6,500. This system has a useful life of 5 years and a salvage value of $950. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method
Answer:
$1,560
Explanation:
The computation of the depreciation expense for the second year of its useful life is shown below:
First depreciation rate is
= 1 ÷ 5 ×2
= 40%
Now the depreciation expense for one year is
= 40% of $6,500
= $2,600
Now the depreciation expense for the second year is
= ($6,500 - $2,600) ×40%
= $1,560
What would be the return on total assets of a firm if net income is $50,000, total sales are $100,000, and total assets are $175,000
Answer: 28.6%
Explanation:
The return on the total asset of a firm will be calculated as the net income divided by the total asset and this will be:
=Net income / Total assets
=50,000/175,000
=28.6%
Therefore, return on total asset is 28.6%
g For a closed economy, when net capital outflow is measured along the horizontal axis and the real interest rate is measured along the vertical axis, net capital outflow is drawn as a: Group of answer choices line that slopes up and to the right. horizontal line at the world real interest rate. line that slopes down and to the right. vertical line at 0.
Answer: vertical line at 0.
Explanation:
In a closed economy, investments from other countries do not come in and the country does not invest in other countries. This means that capital is neither flowing in nor out.
Net capita outflow is the difference between capital flowing in and capital that is flowing out. If there is no capital flowing in nor out then net capital outflow will be 0. On the graph described, net capital outflow will therefore be zero for all real interest rates which will create a vertical line at 0.
Which of the following statements about inflation is true? A. Inflation is not a problem because it is just another way for the government to collect revenuelong dash an alternative to the income tax or the sales tax. B. Inflation is a tax on spending money. C. Inflation is a tax on holding money. D. Inflation occurs when real GDP grows more rapidly than the quantity of money.
Answer:
C
Explanation:
Inflation is a persistent rise in the general price levels
Inflation occurs when quantity of money grows faster than real GDP
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Because inflation causes money to lose its value, it can be viewed as a form of tax on holding money This is because, tax reduces the amount of money a person has. Also, does inflation reduce the value of money a person has
An automatic stabilizer:________
a) increases inflationary pressure during expansions.
b) increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
c) increases tax revenue relative to government spending throughout the business cycle.
d) decreases tax revenue relative to government spending throughout the business cycle.
e) reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.
Answer:
E
Explanation:
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Automatic stabilizers contrasts with discretionary fiscal policies.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
[The following information applies to the questions displayed below.] Pacific Ink had beginning work-in-process inventory of $744,960 on October 1. Of this amount, $304,920 was the cost of direct materials and $440,040 was the cost of conversion. The 48,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs. During October, 102,000 units were transferred out and 30,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $2,343,600 for direct materials and $3,027,840 for conversion.
Required:
a. Compute the equivalent units for the materials and conversion cost calculations.
b. Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method.
Answer:
Pacific Ink
a. The equivalent units for materials and conversion costs are:
Materials Conversion
Equivalents units 126,000 114,000
b. The cost per equivalent unit for direct materials and for conversion costs using the weighted-average method are:
Cost per equivalent unit $21.02 $30.42
Explanation:
a) Data and Calculations:
Materials Conversion Total
Work in process, Oct. 1 $304,920 $440,040 $744,960
Costs incurred in October 2,343,600 3,027,840 5,371,440
Total costs of production $2,648,520 $3,467,880 $6,116,400
Units:
Work in process, Oct. 1 48,000 (30%) 48,000 (30%)
Units transferred out 102,000 (100%) 102,000 (100%)
Work in process, Oct. 31 30,000 (80%) 30,000 (40%)
Equivalent units of production:
Units transferred out 102,000 (100%) 102,000 (100%)
Work in process, Oct. 31 24,000 (80%) 12,000 (40%)
Total equivalent units 126,000 114,000
Cost per equivalent units:
Total costs of production $2,648,520 $3,467,880 $6,116,400
Total equivalent units 126,000 114,000
Cost per equivalent unit $21.02 $30.42
If $4000 is invested at 2% interest, find the value of the investment at the end of 6 years.
An investment of $4000 is deposited into an account in which interest is compounded continuously. Complete the table by filling in the amounts to which the investment grows at the indicated interest rates.
t = 5 years
Rate per year Amount
1%
2%
3%
4%
5%
6%
Answer:
a. Value of investment at the end of 6 years = $4,504
b. Table Completion:
Rate per year Future Value Factor Amount
1% 1.051 $4,204
2% 1.104 $4,416
3% 1.159 $4,636
4% 1.217 $4,868
5% 1.276 $5,104
6% 1.338 $5,352
Explanation:
Data and Calculations:
Investment = $4,000
Interest rate = 2%
Period of investment = 6 years
Future value factor at 2% for 6 years = 1.126
Value of investment at the end of 6 years = $4,504 ($4,000 * 1.126)
b) Investment = $4,000
Interest rates = from 1% to 6%
Period of investment, t = 5 years
Future value factors are as follows:
Rate per year Future Value Factor Amount
1% 1.051 $4,204 ($4,000 * 1.051)
2% 1.104 $4,416 ($4,000 * 1.104)
3% 1.159 $4,636 ($4,000 * 1.159)
4% 1.217 $4,868 ($4,000 * 1.217)
5% 1.276 $5,104 ($4,000 * 1.276)
6% 1.338 $5,352 ($4,000 * 1.338)
Which of the following databases provides end-of-day daily prices and historical prices for U.S. Corporate, Treasury and Agency bonds and non-U.S. Corporate and Government bonds and covers over 80,000 issues daily?
A. FactSet Prices & Derived Analytics
B. SIX Telekurs Prices & Derived Analytics
C. TRACE Prices & Derived Analytics
Answer:
a. FactSet Prices & Derived Analytics
Explanation:
the answer to this question is option A. Factset prices and analytics gives financial data as well as analytic data to the global investment world. this company gets data directly from suppliers, these suppliers are usually third party data suppliers, other sources are form news channels, fro exchangers. it also provides analytic services to companies that want to track their portfolios.
The weekly total cost of baking pies at Tasty Tortes is given by TC = 0.01 Q 1.5. Tasty’s marginal cost of producing 10,000 pies a week is:
Answer: $1.50
Explanation:
TC = 0.01Q⁰.⁵
You get marginal cost when you differentiate the total cost.
MC = dTC / dQ
= 1.5 * 0.01 * Q¹.⁵ ⁻ ¹
= 0.015 * Q⁰.⁵
When Q is 10,000, the marginal cost is:
= 0.015 * 10,000⁰.⁵
= $1.50
What is the net effect on a firm's working capital if a new project requires: $41,375 increase in inventory, $35,370 increase in accounts receivable, $35,000.00 increase in machinery, and a $44,016 increase in accounts payable
Answer: $32,729
Explanation:
Net working capital for a period is the current assets of the company less the current liabilities.
Change in Net Working capital is:
= Increase in inventory + Increase in accounts receivable - Increase in Accounts payable
= 41,375 + 35,370 - 44,016
= $32,729
A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units of Ultra are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is: Product Unit Sales Price Variable Cost Per Unit Regular $ 20 $ 8 Ultra 24 4 Multiple Choice
Answer:
$12
$20
Explanation:
contribution margin = price - variable cost
20 - 8= 12
24 - 4 = 20
(Select all that apply) Maria is researching social media usage in her company for a marketing meeting later in the month. What should she consider as she chooses sources to read and/or include
Answer:
Hello,
this question above appears to be missing options from which one is to select from. In the absence of those, an alternative approach would suffice.
When considering sources for research, Maria should take she must consider sources that meet the following requirements:
DepthObjectivityCurrency of SourceAuthorityPurposeExplanation:
Depth: A source with just a simple cursory overview may not suffice. It is pertinent to elect a source that treats the subject matter in sufficient depth and which uses data to support its position on the topic she is researching Objectivity: If any source takes a biased position on the topic Maria is researching, then it is not a good source. Maria wants to ensure that the author of the source has not taken a position that does not have a balanced view. If any source is not properly cited it should not count.The currency of source: Simple logic requires that a source that is more up-to-date should be preferred above one that is dated. The rule of thumb requires that where possible, sources cited should not be older than 3 years.Authoritative: The more qualified an Author is in the field under consideration, the more reputable the company it works for, the more authoritative that source is considered to bePurpose: Sometimes a text may contain several sub-topics which build up to buttress its primary purpose. Sometimes, these sub-topics may deviate slightly from the main topic. To cite from the sub-topics because it aligns with her work would be a mistake on Maria's part. For example, if she cites from a research proposal whose main topic is Photo Journalism in the Wild West, but which references or the importance of social media in one of its paragraphs, that citation would not be considered adequate because the purpose of the main body is not specific to her work.Cheers
Recognizing religious holidays, differing modes of dress, and dietary restrictions as well as allowing flexible scheduling are all ways to improve employee retention that may appeal to diverse employees. These types of efforts are referred to as
Answer: Systems accommodations
Explanation:
Systems accomodations refers to the recognizing religious holidays, dietary restrictions, differing dressing modes, and allowing flexible scheduling which is vital in the improvement of employee retention which may appeal to diverse employees.
This is required in order to create an environment in the workplace where everyone is welcomed and a harmonious workplace which is important in the achievement of organizational goals.
The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $107 each. Each trailer incurs $44 of variable manufacturing costs. The Trailer division has capacity for 24,000 trailers per year and incurs fixed costs of $560,000 per year. Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,600 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions
Answer: $107
Explanation:
When a division is able to sell all of its products to consumers outside the company, the transfer price within the company should be at the same price that the good would be sold to outside consumers.
This is to ensure that the division does not suffer an economic loss by selling to another division instead of selling to an outside customer. In this case therefore, the Trailer division should transfer the trailers at the retail price of $107 that it would have made from selling to outside customers.
julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $127,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 10 years plus a lump-sum payment of $53,000 at the end of the 10-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 11%. 1-b. If she can invest money at 11%, which option would you recommend that she accept
Answer:
a. i. Present value of first option = $127,000
ii. Present value of second option:
= Present value of $14,000 annuity + Present value of $53,000 lump sum.
Present value of annuity:
= Annuity * Present value interest factor of annuity, 11%, 10 years
= 14,000 * 5.8892
= $82,448.80
Present value of lump sum:
= 53,000 / ( 1 + 11%)¹⁰
= $18,665.77
Present value of second option = 82,448.80 + 18,665.77
= $101,114.57
b. She should take the first option. It has a larger present value.
A company makes a payment of $4,680 towards one-year insurance premium on March 1. Calculate the amount of prepaid insurance that should be reported on the August 31 balance sheet with respect to this policy.
Answer: $2,340
Explanation:
The total annual insurance is $4,680. This is prepaid insurance however and will need to be apportioned to months within the year in order to be recognized as an expense as the months go by.
The monthly insurance will be:
= 4,680 / 12 months
= $390
From March 1 to August 31 is 6 months. Total insurance recognized will be:
= 390 * 6
= $2,340
On January 1, 2020, Fiscus Company purchased equipment costing $90,000. Fiscus records depreciation expense for the equipment at the rate of $1,000/month. What is the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020
Answer:
the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020 is $120,000
Explanation:
The computation of the credit balance is shown below:
= Depreciation expense per month × number of months
= $1,000 × 12 months
= $120,000
Hence, the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020 is $120,000
Dotsero Technology, Inc. has a job-order costing system. The company uses predetermined overhead rates Iin apply manufacturing overhead cost to individual jobs. The predetermined overhead rate in department A is based on machine-hours, and the rate in department B is based on direct material cost. At the beginning of the most recent year, the company's management made the following estimates for the year:Department A Department BMachine-hours............................ 70,000 19,000Direct labor-hours........................ 30,000 60,000Direct materials cost..................... 195,000 282,000Direct labor cost.......................... 260,000 520,000Manufacturing overhead cost............ 420,000 705,000Compute the predeterminded overhead rates for department A and department B.
Answer:
Dept. A Dept. B
Machine hours 70,000
Direct Material Cost 282,000
Manufacturing overhead 420,000 705,000
Predetermined OH rate 420,000 / 70,000 705,000/282,000
= 6.00 per MH = 2.50 per dollar of DM cost
the cost of quality has two components: the cost of good quality. the costs for good quality are the cost of monitoring and preventing defects. the cost of poor quality are often hidden, hitting customers and departments not immediately related to production. some experts argue that:
Answer: Quality is never costless because monitoring and prevention have costs
Explanation:
The cost of quality has two parts which are the cost of prevention and the cost of failure. The cost of quality simply refers to the sum of the prevention cost and the cost of failure.
It should be noted that spending more on prevention helps in reducing the cost of failure. According to experts, quality is is never costless because monitoring and prevention have costs.
Which of the following is a component of the talent acquisition function of HR management?
Group of answer choices
Recruiting
Training
Career planning
Orientation
Answer:
Recruiting
Explanation:
Recruitment is the process of hiring individuals in an organization to accomplish the tasks assigned. It is the process carried by the Human Resource Management in an organization. The HR management is responsible to organize and manage the human talents and recruit them respectively. The talent are recognized by the team and are hired to meet the goals of the organization.
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept S1.25 for the cappuccino. Based on this information, answer the questions below.
Michelle's consumer surplus is equal to: _______
Paul's Bakery's producer surplus is equal to:__________
Answer:
$2
$3.50
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
$6.75 - $4.75 = $2
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
$4.75 - $1.25 = $3.5
Copy equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $8,000 and an estimated useful life of 5 years. It is estimated that the machine has an estimated 1,000,000 copies. This year 240,000 copies were made. Determine the (a) depreciable cost, (b) depreciation rate, and (c) the units-of-production depreciation for the year.
Answer:
Results are below.
Explanation:
The depreciable cost is the result of deducting from the purchase price the salvage value:
Depreciable cost= 56,000 - 8,000
Depreciable cost= $48,000
The depreciable rate is the depreciation that the asset suffers in one year express as a percentage:
Depreciation rate= 1/5 = 0.2 or 20% per year
Finally, the units of production depreciation for the first year:
Annual depreciation= [(original cost - salvage value)/useful life of production in copies]*number of copies
Annual depreciation= (48,000/1,000,000)*240,000
Annual depreciation= 0.048*240,000
Annual depreciation= $11,520
For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Elastic Inelastic Between W and X Between Y and Z True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.
Answer:
a-1. Elasticity of supply between W and X is elastic.
a-1. elasticity of supply between Y and Z is inelastic.
b. The statement is true.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.
The explanation of the answers is now provided as follows:
a. For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic.
The midpoint formula is as follows:
Elasticity of supply = ((Q2 - Q1)/ (Q2 + Q1) /2) / ((P2 - P1) / (P1 + P2) /2) ……… (1)
Using equation (1), we have:
a-1. Between W and X
Q2 = 25
Q1 = 10
P2 = 20
P1 = 15
Substituting the values into equation (1), we have:
Elasticity of supply between W and X = ((25 - 10)/ (25 + 10) /2) / ((20 - 15) / (15 + 20) /2) = 3
Since 3 which is the calculated elasticity of supply between W and X is greater than 1, this implies that elasticity of supply between W and X is elastic.
a-2. Between Y and Z
Q2 = 90
Q1 = 80
P2 = 180
P1 = 90
Substituting the values into equation (1), we have:
Elasticity of supply between Y and Z = ((90 - 80)/ (90 + 80) /2) / ((180 - 90) / (180 + 90) /2) = 0.18
Since 0.18 which is the calculated elasticity of supply between Y and Z is less than 1, this implies that elasticity of supply between Y and Z is inelastic.
b. True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.
This statement is true.
This is because, from part a above, it can be observed that elasticity of supply between W and X when quantity is low is elastic but the elasticity of supply between Y and Z when the quantity is high is inelastic. Therefore, it is true that for high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.
Catrina Santana contributed a patent, accounts receivable, and $23,000 cash to a partnership. The patent had a book value of $8,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $85,000. The accounts receivable control account was $38,000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $10,000 account payable owed to a Santana supplier. On December 31, provide the journal entry for Santana's contribution to the partnership.
Answer:
Date Account Title Debit Credit
12/31 Cash $23,000
Patent $85,000
Accounts Receivable $38,000
Accounts Payable $10,000
Allowance for doubtful debt $2,000
Capital $134,000
A trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services. Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by:__________
a. combination of letters and designs.
b. product shape.
c. picture.
d. logo.
e. color.
Answer:
E)color
Explanation:
Trademark can be regarded as one of intellectual property, it can be explained as recognizable insignia, symbol as well as phrase and word, which denotes a particular product and it's one that legally differentiates that particular Product from all other products of its kind. A trademark can also be regarded as one that exclusively identifies a product and allow the consumer to know specific company it belongs to and also allows them to know company that have the ownership of the brand.
It should be noted that trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services.
For instance Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by logo.
Your boss wants to set safety stock levels correctly to ensure an 87.9% service level. She needs your answer right away. What should the safety stock level be given that you know:
Average replenishment cycle is 10 days
Standard deviation of daily demand is 12 units
Average daily demand is 100 units
Standard deviation of the replenishment cycle is 3 days
a. 57 units
b. 188 units
c. 302 units
d. 354 units
e. 1,000 units
On January 1, 2014, P Company purchased an 80% interest in S Company for $616,800, at which time S Company had retained earnings of $295,600 and common stock of $340,300. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years. Assume that P and S Companies reported net incomes from their independent operations of $199,900 and $95,700, respectively. Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014.
Answer:
For the year ended December 31, 2014, we have:
Controlling interest in consolidated net income = $76,560
Noncontrolling interest in consolidated net income = $19,140
Explanation:
This can be calculated as follows:
Net income of S Company = $95,700
Controlling interest percentage = P Company percentage interest in S Company = 80%
Noncontrolling interest percentage = 100% - Controlling interest percentage = 100% - 80% = 20%
Therefore, we have:
Controlling interest in consolidated net income of S Company = Controlling interest percentage * Net income of S Company = 80% * $95,700 = $76,560
Noncontrolling interest in consolidated net income of S Company = Noncontrolling interest percentage * Net income of S Company = 20% * $95,700 = $19,140
Therefore, for the year ended December 31, 2014, we have:
Controlling interest in consolidated net income = $76,560
Noncontrolling interest in consolidated net income = $19,140