Answer:
To avoid the repercussions, Rugen Inc. should have tried to mimic reward and recognition programs that are conducted in the military to acknowledge the employees' contributions.
Explanation:
The reason that has been clarified in the case itself states that treatment was the main concern of the veteran employees that were recruited newly. Had they been given the treatment that they were familiar with, they possibly would not have complained at all. A change in the approach towards the veteran employees would have helped the company retain all the employees.What counting rule involves the computation of the number of ways that a set of objects can be arranged in order
Answer:
Permutaion
Explanation:
Permutations deals with ordering or reordering objects that a unique. it deals with arranging the elements of a set of items into and agreed order or rearranging such items in an agreed order, this is called permuting.
Permutation is a tool embraced by mathematicians and all variants of mathematics, as well as many fields of science. it helps in the tasks that deals with sequence, analysis and sorting. the number of permutation of a set on n unique terms is n factorial (n!)
Which of the following statements is most correct? a. One disadvantage of being a sole proprietor is that you must pay corporate taxes, even though you don’t realize the benefits of being a corporation. b. One advantage of forming a corporation is that you have limited liability. c. Corporations face fewer regulations than sole proprietorships. d. Statements b and c are correct. e. None of the statements above is correct.
Answer:
b. One advantage of forming a corporation is that you have limited liability
Explanation:
In the Company form of Business Organization the Shareholders have Limited Liability as compared to Sole Proprietorship and Partnership where the Proprietor and Partners have Unlimited Liability. If the company goes Bankrupt then it’s the Creditors who do not get paid.
Answer:
i'm sorry i cant help
Explanation:
i don't know the answer
General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG Product Portfolio Analysis, GM was identifying divisions in the _____ category for closure.
a. Question Marks
b. Dogs
c. Stars
d. Clunkers
e. Cash Cows
Answer:
b. Dogs
Explanation:
The BCG matrix is used to analyse the performance of an organization's product in terms of the market growth and market share. Going by the BCG matrix, there are 4 types of products based on the measurement criteria mentioned earlier. These are Star, Cash cow, Question mark and Dogs.
Stars are high performers with high market growth and high market share. Cash cows have high market share but low market growth. Question marks are products with high market growth but low market share. Dogs are the poor performing products with low market share and low growth rate. Hence the division as identified by General Motors for closure is in the division of Dogs.
Option b
On December 1, Year 1, Axel Financial purchased $50,000 of bonds issued by Lamb Company at face value. The bonds mature in ten years. Axel’s intent was to sell the bonds soon to earn a profit on any short-term price fluctuations. The fair value of those bonds decreased by $5,000 to $45,000 on December 31, Year 1. Which of the following statements are correct with regards to this investment?
The bonds should be reported among current assets in the balance sheet at December 31, Year 1.
The bonds should be reported among current assets in the balance sheet at December 31, Year 1.
At December 31, Year 1, the $5,000 decrease in fair value should be ignored.
At December 31, Year 1, the $5,000 decrease in fair value should be ignored.
The bonds should be reported at their fair value of $45,000 in the balance sheet at December 31, Year 1.
The bonds should be reported at their fair value of $45,000 in the balance sheet at December 31, Year 1.
An unrealized holding gain in the amount of $5,000 should be included in net income in the income statement prepared for Year 1.
Answer:
Explanation:
Answer - Bonds should be The bonds should be reported among current assets in the balance sheet at December 31, Year 1; reported at their fair value of $45,000 in the balance sheet
Bonds are purchased at $50000. Intent was to sell the bonds soon to earn a profit on any short-term price fluctuations. The fair value of those bonds decreased by $5,000 to $45,000. It should be reported as current asset, because it is an investment made and also it is sold in short time making it current asset.
But in the balance sheet it should be reported at the fair value $45000
Answer:
1. True
2. False
3. True
4. False
Explanation:
1.The first statement is True because the intention of Axel is to sell the financial asset soon to earn short term gain which qualifies as a current asset.
2.The change in fair value of the financial asset should not be ignored as per fair value method.
3.The Financial asset of Bonds should be reported at fair value which is $45000 in the Balance Sheet according to Fair Value Method
4.There is a loss of $5000 in the fair value of the financial asset. The gain or loss are not included in the Net Income until it is realized.
Households receive transfers from ________ and firms receive transfers from.________A) government; governmentB) firms; householdsC) government; government and householdsD) firms and government; governmentE) government; no one
Answer:
A) government; government
Explanation:
Transfer payments are payments made to either the household, the firm or government from either the household, the firm or government without any exchange of goods or service in return. It is a one-way payment where the receiver gives nothing in return.
Government makes transfer payments to redistribute income and for other political and economic reasons.
Households and firms typically receive transfers from the government, known as 'transfer payments', such as unemployment benefits, social security, and grants that help stimulate the economy.
The correct option is a.
Explanation:Households typically receive transfers from government, and firms receive transfers from the government.
This is due to what we refer to as 'transfer payments'. These payments, null of exchanges of good or services, are typically made by the government to both households and firms.
Examples of these would be unemployment benefits, social security, and grants, helping to stimulate the economy by increasing the purchasing power of households and supporting firms' activities.
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As a newly appointed human resource manager, what is MOST necessary to have an understanding of that provides the basis for all other actions? A) organizational objectives B) the work of your predecessor C company finances future staffing needs
Answer:
Letter A is correct. Organizational objectives.
Explanation:
A human resources manager is responsible for meeting a company's staffing needs and activities, such as the recruitment and selection process, training and development, development of policies and procedures, performance management, salaries and benefits.
For this, it is necessary to consider organizational objectives as a basis for assisting in the process of developing the function. An effective human resources manager, must base all his decisions prioritizing the strategic plan of obtaining objectives and goals of a company, ensuring that there is the correct allocation of resources and trained and motivated personnel to increase business productivity and generate a climate positive organizational structure in order to achieve organizational goals.
Wendy sells ice-making machines. She can sell 6 per week at a price of $2,000. If she charges $2,100, she will only sell 5 per week. The marginal benefit of selling the 6th ice-making machine is
Answer:
$1500
Explanation:
Marginal benefit = ($2,000 × 6) - ($2,100 × 5) = $12,000 - $10,500 = $1500
Final answer:
The marginal benefit of selling the 6th ice-making machine is $1,500.
Explanation:
The marginal benefit of selling the 6th ice-making machine can be calculated by comparing the change in revenue when selling the 6th machine at a price of $2,000 with the change in revenue when selling only 5 machines at a price of $2,100.
Let's calculate the revenue for selling 6 machines at $2,000: 6 machines x $2,000 = $12,000.
Now, let's calculate the revenue for selling 5 machines at $2,100: 5 machines x $2,100 = $10,500.
The marginal benefit is the difference in revenue between the two scenarios: $12,000 - $10,500 = $1,500.
If private investment is relatively sensitive to interest rates, then a fiscal expansion financed by government bond sales will:
Answer:
The correct answer is letter "C": raise output by a relatively large amount.
Explanation:
Typically, to boost production in the economy, the government tends to sell securities of its treasury causing the interest rate to fall. Lower interest rate promotes private investments increasing the country's growth. If the investment in that country is sensitive to the interest rate, the output rise is likely to be significant.
When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.
Answer:
1) stretch goal
2) (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership.
(d) when managers come up with their own plans, they are likely to be more committed to following through on them.
Explanation:
1) A stretch goal is a radical, ambitious goal that aims to drastically change (improve) certain KPIs and outcomes in the organization. Usually these goals are deemed as impossible. However, their ultimate cause is not to actually be reachable, but to provide great motivation for employees. Since Alcoa has had substantial accidents in the past, a genuine stretch goal is to have zero workplace accidents.
2) This example demonstrated the debate and choice between centralizing decision power on the one hand, or distributing it across the organization on the other hand. Doing the latter has some benefits. The first one is related to responsiveness, as front-line managers would lose a lot of time when communicating a certain problem to senior managers. They would tackle problems more quickly if they had the decision power. Additionally, when they do have the power to make decisions, they are more likely to stick to created plans and strategies.
Final answer:
Executives might opt for managers across the organization to make their plans as it can lead to a) a more dynamic response to environmental changes, b) better coordination of resources, c) more control and d) a stronger commitment from managers to implement and follow through on these plans.
Explanation:
When determining why executives might opt for department and frontline managers to make their plans, the following reasons stand out:
(a) Dynamic environment: Having managers at different levels create plans allows for more responsive and agile strategies that can adapt quickly to environmental changes.(b) Resources might not necessarily be better coordinated across the organization as a result of decentralized planning, which could potentially be a drawback of this approach.(c) Senior leadership might have less direct control over the organization’s direction, as decentralized planning empowers lower-level managers.(d) Manager commitment: Managers are more likely to be committed to the execution of plans that they have developed, leading to better implementation and follow-through.Comparing to cases like Alcoa's safety success and Herzog Electric's zero accident rate, allowing managers to make plans shaped by their immediate understanding of their departmental needs and hazards can be very effective. This is supported by a safety culture where leadership encourages employee involvement in safety measures and demonstrates the value of bottom-up planning.
Esquire Corp. uses the periodic inventory system. During its first year of operations, Esquire made the following purchases (list in chronological order of acquisition):
• 20 units at $50
• 35 units at $40
• 85 units at $30
Sales for the year totaled 135 units, leaving 5 units on hand at the end of the year.
Ending inventory using the LIFO method is
A. $150
B. $177
C. $250
D. $1,540
Answer:
C. $250
Explanation:
The LIFO stands for Last in first out. It means the last units are first sold and the remaining units are later sold
We know that
Sales for the year = 135 units
Closing inventory = 5 units
The 135 units is sold from 85 units at $30 and 35 units at $40 and 15 units at $50
So, for 5 units, the closing inventory would be
= 5 units × $50
= $250
Suppose the growth of production in Country B follows Solow Model. Country B's production function is Y = F(K,L) = K0.5 L0.5 . Country B has 100 people(labors) and 64 units of capital K in Year 1. For Country B, what is the aggregate production in Year 1?
Answer:
80
Explanation:
Given the Solow Formula Y = [tex]K^{0.5} *L^{0.5}[/tex] in the question, we have:
Capital K = 64
Labors L = 100
Substituting the number for K and L into the equation, we have:
[tex]Y=64^{0.5} *100^{0.5}[/tex]
Y = 8 * 10
Y = 80
Please Note:
Country B's production function is Y = F(K,L) = K0.5 L0.5 is not correctly stated as the real Solow Model using equation format in the question. This has therefore been done under the explanation above and now correctly stated as Y = [tex]K^{0.5} *L^{0.5}[/tex] .
Anthony, a self-employed plumber, makes a maximum contribution to a SEP for his employee, Debra. Debra's compensation is $40,000 for the year. How much is he allowed to contribute to the plan for Debra?
Answer:
$10,000
Explanation:
The maximum contribution you can made to SEP shall not exceed the lower of the following two limits for 2020:
1. 25% of total compensation paid to employee.
2. $57,000
By applying the above rule to the given scenario in question, the maximum contribution allowed by the Anthony to be made to SEP for Debra shall not exceed:
25% of total compensation=25%*40,000=$10,000
When information is disclosed to individuals who are not authorized to see it, a _____ has been suffered.
Answer:
loss of confidentiality
Explanation:
A loss of confidentiality is the unauthorized disclosure of information. If a system suffers loss of confidentiality, then data has been disclosed to unauthorized individuals. This could be high level secret or proprietary data, or simply data that someone wasn't authorized to see
Kelly Fisher invested a total of $20,000 invested in two municipal bonds that have yields of 8% (bond A) and 10% (bond B) interest per year, respectively. If the interest Kelly receives from the bonds in a year is $1720, how much did she invest in each bond?
To find out how much Kelly invested in each bond, we can use a system of equations to solve for the values.
Explanation:Let's assume Kelly invested $x in bond A and $y in bond B.
According to the question, the interest Kelly received from the bonds in a year is $1720.
We can set up the following equation to represent the total interest:
x(8/100) + y(10/100) = 1720
To solve for x and y, we can rearrange the equation and substitute the values:
x + y = 20000
Now we have a system of equations. We can solve it using substitution or elimination method to find the values of x and y.
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The amounts Kelly Fisher invested in each bond are 4,000 in bond A (8% yield) and 6,000 in bond B (10% yield).
Let's denote the amount Kelly Fisher invested in bond A as ( x ), and the amount invested in bond B as ( y ).
From the problem statement, we have two pieces of information:
1. The total amount invested is $20,000:
[tex]\[ x + y = 20,000 \][/tex]
2. The total interest received from both bonds in one year is $1,720:
[tex]\[ 0.08x + 0.10y = 1,720 \][/tex]
Now, we will solve these two equations simultaneously to find ( x ) and (y).
First, let's rewrite the equations:
[tex]\[ x + y = 20,000 \][/tex] (Equation 1)
[tex]\[ 0.08x + 0.10y = 1,720 \][/tex] (Equation 2)
To eliminate decimals, multiply Equation 2 by 100:
[tex]\[ 8x + 10y = 172,000 \][/tex] (Equation 3)
Now, we have the system of equations:
[tex]\[ x + y = 20,000 \][/tex]
[tex]\[ 8x + 10y = 172,000 \][/tex]
Let's solve this system using substitution or elimination.
From Equation 1, solve for ( x ):
[tex]\[ x = 20,000 - y \][/tex]
Substitute [tex]\( x = 20,000 - y \)[/tex] into Equation 3:
[tex]\[ 8(20,000 - y) + 10y = 172,000 \][/tex]
Expand and solve for y :
160,000 - 8y + 10y = 172,000
2y = 12,000
y = 6,000
Now that we have y = 6,000, substitute it back into x = 20,000 - y :
x = 20,000 - 6,000
x = 14,000
So, Kelly Fisher invested $14,000 in bond A (yielding 8% interest) and $6,000 in bond B (yielding 10% interest).
The Fiesta Royale Corporation payroll for the first week in January was $14,000. The amount of income tax withheld was 20 percent and the FICA, state unemployment, and federal unemployment tax rates were 8 percent, 5 percent, and 1 percent, respectively. The amount of the employees' withholding taxes are________________.
a. $4,760.b. $3,920.c. $2,800.d. $5,100.
Answer:
Explanation:
Income taxes withheld 2800 [$14000*0.2]
FICA taxes withheld 1120 [$14000*0.08]
Employees' withholding taxes total 3920 [2800+1120]
Product deletion can best be described as the process of deleting a product from the product mix when it a. no longer responds to promotional efforts. b. is reviewed negatively by a systematic review board. c. no longer satisfies a sufficient number of customers. d. increases production costs and decreases profits. e. is perceived as a failure by top management.
Answer:
(c). no longer satisfies a sufficient number of customers
Explanation:
Product deletion refers to removal or discontinuance of a product from the product line when such a product has been consistently incurring losses since a number of years and it's further continuation would adversely affect the other products and profitability.
A product is usually deleted from the product line on the grounds of it's failure in satisfying a sufficient number of customers.
Hence, the correct option is (c). no longer satisfies a sufficient number of customers.
Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $330. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2020. Actual warranty costs (inventory) incurred in 2020 were $17,000. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $800,000 ($4,000 × 200 color laser copiers)
To Sales revenue A/c $800,000
(Being the sale of the copies are recorded)
2. Warranty expense A/c Dr $17,000
To Inventory A/c $17,000
(Being the warranty expense is recorded)
3. Warranty expense A/c Dr $49,000 (200 × $330 - $17,000)
To Warranty liability A/c $49,000
(Being the accrual warranty is recorded)
Assume that an investment in bonds classified as trading securities is sold. Which of the following would be included in the two entries to record the sale? (Select all that apply.)
a. An update of the Fair value adjustment account
b. An update of the Fair value adjustment account
c. Removal of the related investment account balances
d. Removal of the related investment account balances
e. The total amount of gain or loss that has occurred since the securities were purchased
f. The total amount of gain or loss that has occurred since the securities were purchased
g. The amount of the unrealized holding gain or loss that has occurred since the end of the prior accounting period
h. The amount of the unrealized holding gain or loss that has occurred since the end of the prior accounting period
Answer:
An update of the fair value adjustment account,
Removal of the related investment account balances
The total amount of gain or loss that has occurred since the securities were purchased
Explanation:
The activities that occurred between the purchase and during the sales of bonds classified as trading securities will determine the entries to be recorded.
First, since it was an investment, it means, it had an entry already in the books. Its sales therefore, will mean the books needs to be updated and this will be done through the Fair value adjustment account.
Secondly in updating the fair value, there is the need to remove the related investment account balance. This is because the investment has been sold so it should not be reflected any more.
Thirdly, since the investment was bought at a point, carried for a while and then eventually sold, some gain or loss would have been generated between its acquisition and its sales, therefore the entry for total amount of gain or loss that occurred since the purchase should be made.
Part 4
The items such as the
For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (F) or variable whether they are most likely period costs (P) or product costs (M) under full absorption costing: Fixed (F) Variable (V) Period (P) Product (M) Cost Item a. Depreciation on the building for administrative staff offices. b. Cafeteria costs for the factory c. Overtime pay for assembly workers. d. Transportation-in costs on materials purchased e. Salaries of top executives in the company. f. Sales commissions for sales personnel g. Assembly line workers' wages h. Controller's office rental. i. Administrative support for sales supervisors j Energy to run machines producing units of output in the factory. Reterences eRook & Resources
Answer:
a. Depreciation on the building for administrative staff offices. (F) (P)
b. Cafeteria costs for the factory. (F) (M)
c. Overtime pay for assembly workers. (V) (M)
d. Transportation-in costs on materials purchased (V) (M)
e. Salaries of top executives in the company. (F) (P)
f. Sales commissions for sales personnel (V) (P)
g. Assembly line workers' wages (V) (M)
h. Controller's office rental. (F) (P)
i. Administrative support for sales supervisors (F) (P)
j Energy to run machines producing units of output in the factory. (V) (M)
Explanation:
Fixed Cost (F): Fixed cost is cost which is fixed and does not vary on the basis of production.
Variable Cost (V): Variable cost is cost which is not fixed and varies on the basis of production i.e. with the change in production, it also changes.
Product Cost (M): Product cost is a direct cost which is attributable directly in the creation of the product such as Direct Material, Direct Labour, etc.
Period Cost (P): A period cost is associated with the passage of time and is not included in the product cost, and is treated as an expense.
In manufacturing, certain costs are fixed and others vary with production levels. These can further be classified as period or product costs. Examples include executive salaries (fixed, period), assembly line wages (variable, product), and energy costs (variable, product).
Explanation:For a manufacturing firm, costs can be classified in different categories: Fixed (F) or Variable (V), Period (P) or Product (M) costs.
Depreciation on the building for administrative staff offices: Fixed (F), Period (P) Cafeteria costs for the factory: Variable (V), Product (M) Overtime pay for assembly workers: Variable (V), Product (M) Transportation-in costs on materials purchased: Variable (V), Product (M) Salaries of top executives in the company: Fixed (F), Period (P) Sales commissions for sales personnel: Variable (V), Period (P) Assembly line workers' wages: Variable (V), Product (M) Controller's office rental: Fixed (F), Period (P) Administrative support for sales supervisors: Fixed (F), Period (P) Energy to run machines producing units of output in the factory: Variable (V), Product (M) Learn more about Cost Classification here:https://brainly.com/question/33447487
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As part of thinking about the _____, managers track the Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.
Answer:
Economic Dimension
Explanation:
Economic dimension implies that the effect of economic factors on a particular circumstance which a company faces are taking into consideration while making a decision.
In the question, the three economic factors mentioned to be considered by the company as part of the economic dimension are Consumer Price Index, manufacturing and retail inventory levels, and consumer confidence measures.
The Consumer Price Index (CPI) measures the weighted average of prices of a basket of commodities like cloth, food, transportation, etc. This is calculated as average of the changes in prices of the chosen basket of goods and services.
Manufacturing inventory are raw material or work-in-progress items kept in stock to produce goods, while retail inventory are the finished goods kept in stock to be sold.
Consumer confidence measure can also be referred to as the Consumer Confidence Index (CCI) and it is the level of assurance which consumers display about general economic condition in a country through the way they spend or save.
How a company monitor and prepare for each of the three factors will determine its success or failure.
Final answer:
Managers monitor the economic environment, including the Consumer Price Index, to make informed decisions on business production, strategy, and grasp elements affecting the company's bottom line.
Explanation:
As part of thinking about the economic environment, managers track the Consumer Price Index (CPI), manufacturing and retail inventory levels, and consumer confidence measures. The CPI is an essential measure as it helps businesses understand price changes and inflation, which affect purchasing power and consumer behavior, ultimately impacting a company's sales and profitability. Managers must comprehend these economic indicators to make informed decisions on production, pricing, and strategy, ensuring they focus on elements that directly influence the company's bottom line.
Which of these activities does not contribute to lean construction? Select one: a. Including factory-like production methods b. Decentralizing decision making c. Sequential construction d. Using BIM e. Streamlining workflows and supply methods
Answer: C- Sequential construction
Explanation: Sequential construction analysis is a nonlinear static analysis which takes into account the concept of incremental loading.
when sequential construction is ignored, the analysis assumes that the entire loads are carried by the entire structure. Sequential construction is also important on analysis of high rise buildings where creep and shrinkage must be considered.
Instead of deciding to finish high school, you could have decided to work full-time. How would an economist explain your decision to receive your high school degree?
a. The benefit of working full-time was greater than the cost of going to high school.
b. The benefit of working full-time was greater than the benefit of going to high school.
c. The cost of working full-time was greater than the benefit of going to high school.
d. The cost of going to high school was greater than the benefit of working full-time.
e. The benefit of going to high school was greater than the benefit of working full-time.
Answer:
The correct answer is letter "E": The benefit of going to high school was greater than the benefit of working full-time.
Explanation:
Opportunity cost refers to the difference between choosing an option over another. It represents the benefit (if any) of the chosen option over the potential benefit obtained over the option that was forgone. In some cases represents what was "left on the table".
If choosing going to high school instead of working full-time, that implies, for that person, graduating provides a higher benefit than being paid monthly for a regular job.
An economist would explain the decision to receive a high school degree as having greater benefits than working full-time, contributing to society's human capital and economic growth, and providing higher wages for college-trained individuals.
Explanation:An economist would explain your decision to receive your high school degree by stating that:
The benefit of going to high school was greater than the benefit of working full-time.By acquiring more education, society allocates resources to produce education, enhancing human capital and economic growth.The payoff from college can be measured by comparing the wages of college-trained workers to high-school-trained workers, illustrating the value of obtaining a college degree.Pedrotti Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $40 per unit, management projects sales of 30,000 units. The new product would require an investment of $300,000. The desired return on investment is 16%. The target cost per unit is closest to: (Do not round intermediate calculations.)
Answer:
$38.40
Explanation:
Target Cost = Selling Price per Unit - Profit Margin per Unit
Here, Selling Price per Unit = $40
Profit Margin = 16% of the Investment in Product
Investment = $ 300,000
Profit Margin = 16% × 300,000
= $48,000
Number of Units Sales = 30,000 Units
Profit Margin per Unit:
= Profit Margin ÷ Number of Units Sales
= $48,000 ÷ 30,000
= $1.6
Therefore,
Target Cost per Unit:
= Selling Price per Unit - Profit Margin per Unit
= $40.00 - $ 1.60
= $38.40
The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. The fixed costs are $900,000 per year. Variable costs are $0.30 per unit.
Consider each case separately:
1a. What is the current annual operating income?
b. What is the present breakeven point in revenues?
Compute the new operating income for each of the following changes:
2. A $0.04 per unit increase in variable costs
3. A 10% increase in fixed costs and a 10% increase in units sold
4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit and a 40% increase inunits sold.
Compute the new breakeven point in units for each of the following changes:
5. A 10% increase in fixed costs
6. A 10% increase in selling price and a $20,000 increase in fixed costs
Answer:
Operating Income = $100,000
Explanation:
1 a. What is the current annual operating income?
Revenue - 5,000,000* $0.5 = 2,500,000
Less: Variable Costs - 5,000,000*$0.3 = 1,500,000
Contribution = 1,000,000 (margin = 1m/2.5m = 40%)
Less: Fixed Costs ....$900.000
Operating Income = $100,000
b. What is the present break even point in revenues?
BEP = FC/Contribution Margin = 900,000/0.4 = $2,250,000
2. A $0.04 per unit increase in variable costs
Revenue - 5,000,000* $0.5 = 2,500,000
Less: Variable Costs - 5,000,000*$0.34 = 1,700,000
Contribution = 800,000
Less: Fixed Costs ....$900.000
Operating Income = ($100,000)
3. A 10% increase in fixed costs and a 10% increase in units sold
Revenue - 5,500,000* $0.5 = 2,750,000
Less: Variable Costs - 5,500,000*$0.3 = 1,650,000
Contribution = 1,100,000
Less: Fixed Costs ....$990.000
Operating Income = $110,000
4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit and a 40% increase inunits sold.
Revenue - 7,000,000* $0.4 = 2,800,000
Less: Variable Costs - 7,000,000*$0.27 = 1,890,000
Contribution = 910,000
Less: Fixed Costs ....$720.000
Operating Income = $190,000
5.Compute the new breakeven point in units for each of the following changes: A 10% increase in fixed costs
BEP = FC/Contribution Margin = 810,000/0.4 = $2,025,000
6. A 10% increase in selling price and a $20,000 increase in fixed costs
Revised Contribution Margin = 0.55 - 0.3 = 0.25; 0.25/0.55 = 0.4545
BEP = FC/Contribution Margin = 1080,000/0.4545 = $2,376,238
Answer:
1 a) Operating Income $ 100,000
1 b) Breakeven point in revenues $ 2,250,000
2) Operating Loss : $ 100,000
3) Operating Income $ 60,000
4) Operating Income $ 190,000
5) Breakeven point in revenues $ 2,475,000
Explanation:
Explanation for Answer 1a
Revenues (5,000,000*.5) = $ 2,500,000
Fixed costs $( 900,000)
Variable Cost ( 5,000,000 *.30) $( 1,500,000)
Operating Income $ 100,000
Explanation for Answer 1b
Revenues (4,500,000*.5) = $ 2,250,000
Fixed costs $( 900,000)
Variable Cost ( 4,500,000 *.30) $( 1,350,000)
Operating Income $ 0
Explanation for Answer 2
Revenues (5,000,000*.5) = $ 2,500,000
Fixed costs $( 900,000)
Variable Cost ( 5,000,000 *.34) $( 1,700,000)
Operating Loss $( 100,000)
Explanation for Answer 3
Revenues (5,500,000*.5) = $ 2,750,000
Fixed costs (900,000*110%) $( 990,000)
Variable Cost ( 5,000,000 *.34) $( 1,700,000)
Operating Income $ 60.000
Explanation for Answer 4
Revenues (5,000,000*140% * 80 %) = $ 2,800.000
Fixed costs (900,000*80%) $ ( 720,000)
Variable Cost ( 7,000,000 *.27) $ ( 1,890,000)
Operating Income $ 190,000
Explanation for Answer 5
Revenues (4,950,000*.5) = $ 2,475,000
Fixed costs $( 990,000)
Variable Cost ( 4,950,000 *.30) $( 1,585,000)
Operating Income $ 0
Explanation for Answer 6
Revenues (3,680,000*.55) = $ 2,024,000
Fixed costs $( 920,000)
Variable Cost ( 3,680,000 *.30) $( 1,104,000)
Operating Income $ 0
In which method of sales compensation is salespersons pay totally determined as a percentage of sales?
Answer:
The correct answer is: straight commission.
Explanation:
The straight commission compensation method consists of giving employees a payment based on the percentage of the sales they process instead of providing them a fixed amount for salary every month. This is done to push salespeople to sell more so their income strictly depends on their performance.
According to the IMA Code of Ethics, what should a management accountant do if a significant ethical situation can't be resolved?
(A) The accountant should confront the guilty party and demand the unethical action be stopped.
(B) The accountant should try to rationalize and understand the position of the other party
(C) The accountant should say nothing about the matter until he or she has retired.
(D) The accountant should first discuss the matter with the immediate supervisor
Answer:
The correct answer is letter "D": The accountant should first discuss the matter with the immediate supervisor.
Explanation:
The Institute of Management Accountants (IMA) Code of Ethics is a set of good practices that rule the accountants' work in benefit of themselves and their organization. The IMA Code of Ethics Integrity principle states that accounts must communicate unfavorable as well as favorable communication.
Following that principle, if an account finds an ethical situation that cannot be resolved, the professional must communicate it to their leads.
Assume you own more than one business. The financial records are prepared separately for each business. The records are also separate and distinct from your personal finances. This methodology relies on the going concern concept. (If false, identify error and correct.)
a. True.
b. False.
Answer:
The correct answer is letter "B": False.
Explanation:
The Accounting Entity principle states that the transactions of a business must be recorded separately from the personal transactions of the owners or other businesses. This principle relies on the fact that businesses are recognized as separate economic units.
Thus:
Assume you own more than one business. The financial records are prepared separately for each business. The records are also separate and distinct from your personal finances. This methodology relies on the Accounting Entity principle.
International tradea. raises the standard of living in all trading countries.b. lowers the standard of living in all trading countries.c. leaves the standard of living unchanged.d. raises the standard of living for importing countries and lowers it for exporting countries.
Answer:
A. Raises the standard of living in all trading countries.
Explanation:
International trade would benefit both countries and raise the standard of living of both producers and consumers
Can a set of indifference curves be upward sloping? If so, what would this tell you about the two goods?A set of indifference curves
A.
cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "neutral."
B.cannot be upward sloping because this violates the assumption of transitivity, indicating that one of the goods is a "neutral good."
C.cannot be upward sloping because this violates they the assumption of completeness, indicating that one of the goods is a"bad."
D.
cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "bad."
E.
cannot be upward sloping because this violates the assumption of transitivity, indicating that preferences are not consistent.
Answer:
D. cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "bad."
Explanation:
The curve of indifference is the curve at which the mixture of two goods is represented that the consumer achieves identical satisfaction making the consumer unique.
This can't be sloping upwards, as it makes the contrast between the good and the bad item that describes the good item stronger than the bad item that depicts one of the bad items.
D. Cannot be upward sloping because this violates the assumption that more is better than less, indicating that one of the goods is a "bad."
By standard economic theory, indifference curves are typically downward sloping, reflecting the idea that as you consume more of one good, you have to consume less of another good to maintain the same level of utility.
Monotonicity states that more is always better, which means that a consumer would prefer having more of both goods rather than less. Transitivity implies that if a consumer prefers bundle A over bundle B and bundle B over bundle C, then they should also prefer bundle A over bundle C.If you were Marshall, what types of concerns would you want to be sure to bring up with the accountant?
Answer:
If I would be a Marshal, I would like succeeding apprehensions should to be indisputable with accountant.
Recognize the environment- accountant must appreciate the industry, responsibility or the organization in very clear style. He should clearly recognize and go with the administrative goals. Communication capability- Accountant must have resilient communication capability to talk with other individual and to make him recognize about any request of that individual. Flexibility- as the rules and policies are changes time to time, accountant must flexible enough to accept the changes easily. Strong Ethics- moreover the applied ethics, accountant should also have durable moral ethics. He should have durable confidence. Furthermore he should confirm to keep personal information secure. Precise and Detailed evidence- the accounts organized by accountant must be precise and very clear. It also should be thorough. Proper foot notes should be stated in financial statements. Inspiration- account must have competence of rational thinking to come up with fresh clarifications for given problems. Trustworthiness- the accountant should be dependability. He knows the secrets of the responsibility. So he should not to reveal these secrets to anyone without prior specialist.
The concerns Marshall should bring up with the accountant include the accuracy and completeness of financial statements, analysis and interpretation of financial data, and tax planning and compliance.
Explanation:If I were Marshall, there are a few concerns I would want to bring up with the accountant:
The accuracy and completeness of the financial statements. I would want to make sure that all the transactions and financial information have been properly recorded and that the statements present a true and fair view of the company's financial position.The analysis and interpretation of the financial data. I would want to understand the trends and patterns in the company's financial performance, identify any areas of concern or improvement, and make data-driven decisions to drive the company's success.Tax planning and compliance. I would want to ensure that the company is maximizing its tax savings opportunities and complying with all applicable tax laws and regulations.By addressing these concerns with the accountant, Marshall can ensure the financial health and success of the company.
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