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:

$1,540

Explanation:

Calculation for the activity variance for cleaning equipment and supplies in September

First step is to calculate for theFlexible budget

Using this formula

Flexible budget =[Cleaning equipment and supplies +(Amount per boat ×Actual level of activity)

Let plug in the formula

Flexible budget =[$2,940 + ($35 × 29)]

Flexible budget =$2,940+$1,105

Flexible budget =$3,955

Second step is to calculate for the Planning budget using this is formula

Planning budget =[Cleaning equipment and supplies +(Amount per boat ×Planned activity ]

Let plug in the formula

Planning budget= [$2,940 + ($35 × 73)]

Planning budget=$2,940+$2,555

Planning budget=$5,495

Now let calculate for the activity variance

Using this formula

Activity variance=Flexible budget-Planning budget

Let plug in the formula

Activity variance=$3,955-$5,495

Activity variance=$1,540 Favorable

Therefore the Activity variance for cleaning equipment and supplies in September is closest to:$1,540 Favourable reason been that the flexible budget is lesser than the planning budget

Answer:

Increase in price level = 3.2%

Explanation:

Given:

Price level increases = 0.2

Reserves = $80 billion

Reserve requirement =0.05?

Computation:

Increase in money = Increase in reserves / Reserve ratio

Increase in money = $80 billion / 0.05

Increase in money = 1,600  

And

Increase in price level = (Increase in money / 100) x 0.2%

Increase in price level = (1,600 / 100) x 0.2%

Increase in price level = 3.2%

Answer:

the question is incomplete, since you need an APR rate. I looked for similar question and the effective interest rate was 15%:

Delaney will pay $500,000 / 200 = $2,500 in principal every month.

Answer:

c) $3,700

Explanation:

Excess balance after minimum cash balance = $9,300 - $7,500 = $1,800

Excess cash disbursement=$56,500 - $51,000 = $5,500

In April the company will need to borrow =$5,500- $1,800 = $3,700

Complete Question:

Squeaky Clean produces commercial strength cleansing supplies. Two of its main products are window cleanser that uses ammonia, and floor cleanser that uses bleach. Information for the most recent period follows:

Product Names                           Window Cleaner     Floor Cleaner

                                                                (ammonia)             (bleach)  

Direct materials information  

Standard ounces per unit                     16  oz.                 24  oz.

Standard price (SP) per ounce                  $ 0.25                    ?  

Actual quantity (AQ) used per unit           20  oz.                22  oz.

Actual price (AP) paid for material            $ 1.75                $ 0.72

Actual quantity purchased (AQP) / used 1,000  oz.       2,800  oz.

Price variance                                               ?                       $ 56  U

Quantity variance                                   $4,900  U           ?  

Flexible budget variance                       ?                       $ 504  F

Number of units produced                    700              400

What is the direct materials flexible budget variance for ammonia?

A.$6,400 favorable

B.$6,400 unfavorable

C.$3,400 unfavorable

D.$3,400 favorable

Answer:

The Direct Materials Flexible Budget Variance for ammonia is:

B. $6,400 unfavorable

Explanation:

1. Data and Calculations:

Actual quantity purchased = 1,000 oz

Actual price = $1.75

Standard price = $0.25

2. Direct Material Price Variance

= Actual Material Purchased (Actual Rate - Standard Rate)

= 1,000 * ($1.75 - $0.25)

= $1,500 (Unfavorable)

3. Direct Materials Quantity Variance is given as $4,900 Unfavorable.

4. Therefore, the Direct Material Flexible Budget Variance will be equal to the Direct Material Price Variance + the Direct Material Quantity Variance

Flexible Budget Variance for Ammonia

= $1,500 (U) + $4,900 (U)

= $6,400 (Unfavorable)

4. A flexible budget changes or flexes with the actual volume or level of activity.  It is not like a static budget that remains static no matter the level of activity.  With a flexible budget, the performance of managers can be judged more accurately because their performances are evaluated based on actual volumes or levels of activity.

Answer: buyer requirements

Explanation: Differing needs such as the need for information, convenience, variety, and/or pre- or postsale services that  must be satisfied during an exchange are collectively known as buyer requirements which aid both buyers and sellers in the ordering process as they allow the seller to ask for any information needed to complete an order while allowing the buyer to communicate his/her needs to ensure that every order specification is met.

Answer:

Total subscriptions revenue for the period= 4 months (September 1 - December 31)  

= (600 * $81) * 4/12

= $48,600 * 4/12

= $16,200

Hence adjusting entry would be:

Deferred subscriptions revenue a/c Dr $16,200

To Subscriptions revenue Cr $16,200

Answer:

FV= $12,810

Explanation:

Giving the following information:

Annual deposit= $4,200

n= 3

i= 5% annual compounding

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {4,200*[(1.05^2) - 1]}/0.05

FV= 8,610 + 4,200

FV= $12,810

Answer:

The production level of Daytripper will be 2010 backpacks and the production level of Excursion will be 1185 backpacks. Thus, option C is the correct answer.

Explanation:

The production volume in July can be calculated by adding the production for July and the closing inventory in July and deducting the opening inventory in July from it.

Production level = Closing Inventory + Production - Opening Inventory

Daytripper = (2200 * 0.05) + 2000 - (2000 * 0.05)

Daytripper = 2010

Excursion = (900 * 0.05) + 1200 - (1200 * 0.05)

Excursion = 1185

Answer:

8.99%

Explanation:

The formula to calculate the rate of interest is:

r=(FV/PV)^1/n - 1

r= rate of interest

FV= future value= $32,375

PV= present value= $25,000

n= number of period of time= 3

Now, you can replace the values in the formula:

r=(32,375/25,000)^1/3-1

r=1.295^1/3-1

r=0.0899→8.99%

According to this, the rate of interest that Padley must earn is 8.99%.

Answer:

5.89%

Explanation:

The computation of the yield to maturity could be find out by determining by applying the RATE formula i.e. to be shown in the attachment

Provided that,  

Present value = $955.25

Future value or Face value = $1,000  

PMT = 1,000 × 5.5% ÷ 2 = $27.50

NPER = 19 years × 2 = 38 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula , the YTM is

= 2.9473%  × 2

= 5.89%

Answer:

Emissions Tax on consumers:

Assuming that the demand for the product under which the emissions tax is placed directly on consumers is elastic, then producers will also bear some of the burden of this tax in lost sales.  Warehouse costs will skyrocket as consumers literally boycott the products and producers are forced to stop further production.  These have far-reaching implications.

Explanation:

By placing the burden on consumers directly, consumers will spend more for the same quantity of goods, if there are no substitutes.  Such tax is usually levied to discourage consumption of certain goods.

Answer:

he found out that unless the price is a certain percentage that is higher than the price of the equivalent foreign product, federal agencies must buy products with at least 50% of the components made in the U.S.A.

Explanation:

Answer:

$6,073.853

Explanation:

For computing the amount invested now we need to determine the present value by applying the present value formula i.e. to be shown in the attachment

Provided that

Future value = $8,000

Rate of interest = 4.6% ÷ 12 months  = 0.3833%

NPER = 6 years × 12 months = 72 months

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $6,073.853

Answer:

barriers to entry; to a few oligopoly firms.

Explanation:

Occasionally, barriers to entry may lead to pure monopoly; in other market conditions, they may limit competition to a few oligopoly firms.

Monopoly can be defined as a type of market in which there is a single seller of a unique product. This sellers typically do not face any competition from others.

This ultimately implies that, when there are barriers to entry it may result in monopolistic competition among the sellers of goods having no close substitutes. These barriers consist of economies of scale, network externalities, copyright law, trademark, patent, governmental policies etc.

Answer:

                              Reject Order Accept order     Net Income

                                                                                 Increase (Decrease)

Revenues =                     $0             $105,000             $105,000

                                                  (3750 units x $28)

Costs-Manufacturing =   $0              -$71,250            -$71,250

                                                  (3750 units x $19 (VC) )

Shipping                          $0               -$3,750             -$3,750

                                                   (3750 units x $1)

Net Income                      $0              $30,000            $30,000

Pharoah Electronic would realize the net Income of $30,000 by accepting the special order. Hence, the special order should be accepted.

Answer:

C. MACRS depreciation expense.

Explanation:

Material participation in an income-producing activity. That is, an activity that is regular, continuous, and substantial leading to income-producing actions, in which the taxpayer materially participates is an active income or loss.

Answer and Explanation:

The computation is shown below:

For the labor price variance

= Actual Hours × (Actual rate - standard rate)  

= 1,850 × ($11.80 per hour - $11 per hour)  ,

= 1.850 × $0.80 per hour

= $1,480 unfavorable

For labor quantity variance

= Standard Rate × (Actual hours - Standard hours)  

= $11 × (1,850 hours - 2,000 hours)  

= $11 per hour × - 150hours

= $1,650 favorable

Now total would be

= Labor price variance + labor quantity variance

= $1,480 unfavorable + 1,650 favorable

= $170 favorable

Answer:

The effective annual rate is 10%

Explanation:

Future value = Present value * (1+r)^n

(1+r)^n = Future value / Present value

r = (Future value / Present value)^n - 1

Here r is the rate

Substitute the values as below

r = (Future value / Present value)^n - 1

r= ($100,000 / $97,654)^4 - 1

r = 1.10000 - 1

r = 0.10000

r = 10%

Answer:

C. Whenever demand surges, there are material shortages, and equipment failure

Explanation:

The safety capacity is developed for the events that are not predicted. It can be used for various things like - shortage of materials, break down of machinery and equipment, the power supply is not available at the current time.

Therefore in the given case,  option C is chosen as it fits the current situation

Hence, the other options are to be ignored

Answer:

Differential cost of producing Product C = $0

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  

Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .  

                                                                                                   $

Sales revenue after the split off point (Product C)                    58

Sales revenue at the split-off point  (Product B                         33

Additional sales revenue per unit                                              25

Further processing cost                                                              (25)

Differential cost of Product C                                                        0

Differential cost of producing Product C = $0

Note that the cost incurred up until the split off point was not included because it is Irrelevant to the decision to process further. It has already been incurred , hence it is a sunk cost

Complete Question:

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is:

Group of answer choices

A) the safety of the principal invested.

B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

C) the yield is always higher than mortgage yields.

D) the yield is always higher than bond yields.

Answer:

B) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

Explanation:

An important basic characteristic of common stocks that makes them a suitable type of investment for the separate account of variable annuities is changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices.

Generally, common stocks are considered by financial experts or broker-dealers to be a suitable type of investment of variable annuities because the prices of common stocks in the market are not fixed and as such they are affected by economical changes such as inflation or recession.

Answer:

$158,080

Explanation:

The division's residual income is calculated as;

= Net operating income - ( Average operating assets × Minimum required rate of return)

= $540,800 - ( $2,392,000 × 16% )

= $540,800 - $382,720

= $158,080

Answer:

a -1.  48,572 units

a -2  2.56

Explanation:

Break even point is the level of activity where a firm neither makes a profit or loss.

Break Even point (units) = Fixed Costs ÷ Contribution per unit

Where,

Contribution per unit = Sales per unit - Variable Cost per unit

                                   = $38 - $24

                                   = $14

Therefore,

Break Even point (units) = $680,000 ÷ $14

                                        = 48,572 units

Degree of operating leverage = Contribution ÷ Earnings Before Interest and Tax

                                                  = 80,000 units × $14 ÷ (80,000 units × $14 - $680,000)

                                                  = $1,120,000 ÷ $440,000

                                                  = 2.56

Answer: $0

Explanation:

From the question, we are informed that Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada and that Nicole is a sophomore and Naomi is a freshman.

We are further told that Nick and Katelyn's AGI is $202,000. Based on the above scenario, their allowable American opportunity tax credit will be $0. This is because when AGI is more than $180,000 for such taxpayers, the credit is being phased out.

Answer:

SMART Goals

Rewriting Goal Statements:

Original Goal Statement:

Our team will finish the product roll-out on schedule.____________

Revised Goal Statement:

To finish the product roll-out on schedule, our team will finalize all activities on August 31, 2020.

Original Goal Statement:

We intend to save the company $20,000 next month. ___________

Revised Goal Statement:

To save the company $20,000 next month, we intend to reduce overall expenses.

Original Goal Statement:

Our new initiative will increase customer satisfaction._

Revised Goal Statement:

To increase customer satisfaction today, our new initiative must be customer-focused.

Original Goal Statement:

Our team will hit its numbers.____________

Revised Goal Statement:

To hit its numbers this month, our team must redouble its marketing efforts.

Explanation:

A SMART goal statement starts with an action word with an impact that is time-bound.  SMART means: Specific, Measurable, Achievable, Realistic, and Time-bound.  SMART goal statements can be used to improve desired outcomes when they are followed through.  A SMART goal statement is fundamental to success.  It is the basis for a team or an individual to plan their work and evaluate its success.

The given original goal statements can be revised as per the SMART goal guidelines would be as follows:

1). In order to complete the product roll-out on schedule, the team will ensure that all the orders are concluded by 20th January.

2). To save the cost of $20,000 next month, our aim will be to reduce miscellaneous expenses.

3). To implement our new initiative of consumer satisfaction, we will focus on consumer-oriented strategies.

4). To hit the numbers this month, the team should be more focused on the timely delivery of the goods.

Learn more about "Goal" here:

brainly.com/question/12932356

Complete Question:

The income statement for Slumber Company is divided by its two product​ lines, blankets and​ pillows, as​ follows:

Narrative                         Blanket               Pillow             Total

Revenue                        $620,000         $300,000     $920,000

Variable cost                ($455,000)        ($241,000)    ($696,000)

Contribution                   $165,000          $59,000       $224,000

Fixed cost                       ($74,000)         ($74,000)      ($148,000)

Operating Income           $91,000           ($15,000)       $76,000

Slumber is considering eliminating the pillows product line. If this line is​ eliminated, Slumber will be able to eliminate​ $74,000 of total fixed costs. How would this business decision impact operating​ income?

A. increase of​ $15,000 in operating income

B. increase of​ $133,000 in operating income

C. increase of​ $74,000 in operating income

D. decrease of​ $59,000 in operating income

Answer:

A. increase of​ $15,000 in operating income

Explanation:

We can see that if the we continue both product line then the profit is $76k which is lower than the profit of $91k generated from continuing Blankets product line only. If we abandon the pillow production then the loss that pillow manufacturing is producing will be totally eliminated which is $15k. The reason is that fixed cost is specific fixed cost which means it can be eliminated if the company abandons the production of pillow product line. Hence the operating income will increase by $15,000 ($91k - $76k). Option A is correct here.

Answer: $19,800

Explanation:

The Monopolist will produce at a quantity where Marginal Revenue equals Marginal cost.

From the exhibit, that quantity is shown to be 1,100.

At that quantity, the average total cost incurred is $18.

Total Cost

= Average total cost * quantity

= 18 * 1,100

= $19,800

Answer: Coca-cola

Explanation:

Coca-cola as a soft drink has dominated the world since the 20th century but faces competition against drinks from other companies such as Pepsi and RC Cola.

In other to keep up their competitive edge and sell to more customers, the embark on extensive marketing campaigns that are catchy and memorable.

Coca-cola has also been differentiated over the years by introducing various flavors that are meant to appeal to different segments in the market such as  Diet Coke, Coca-Cola Zero Sugar, Coca-Cola Cherry and Coca-Cola Vanilla.