The variable cost quantity factor is $9,600, which represents the change in variable costs due to an increase in volume. The unit cost factor for variable cost of goods sold is $56,000, which shows the monetary impact of the difference between actual and planned costs per unit.
Explanation:In this business scenario, we are trying to calculate the 'variable cost quantity factor' and 'unit cost factor'. The variable cost quantity factor is determined by the change in volume, and the difference in expected and actual variable costs per unit.
a. To calculate the '$ Increase in variable cost of goods sold', you need to multiply the additional volume by the actual unit variable cost: 2,400 units * $140/unit = $336,000. Then, calculate the expected variable cost: 2,400 units * $136/unit = $326,400. The variable cost quantity factor is actual cost - expected cost: $336,000 - $326,400 = $9,600.
b. To calculate the 'unit cost factor for variable cost of goods sold', find the difference between the actual and planned cost per unit and multiply this by the actual total units: ($140/unit - $136/unit) * 14,000 units = $56,000.
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During fiscal year-end 2016, Kohl’s Corporation reports the following (in $ millions): net income of $556, retained earnings at the end of the year of $12,522 and retained earnings at the beginning of the year of $12,329. Assume that there were no other retained earnings transactions during fiscal 2016. What dividends did the firm pay in fiscal year ended January 28, 2017? a. $683 millionb. $1,669 millionc. $363 milliond. $0
Answer:
c. $363 million
Explanation:
We can compute this easily by making a retained earning extract from the balance sheet at the closing date,
Opening Retained earnings $12,329
Add retained earnings for the year $556
Less: Dividends paid $363
Closing Retained earnings $12,522
Reverse calculating the information gives us c. $363 million
Hope that helps.
In​ 1982-84 dollars, the real average hourly wage rate in 2003 was ​$8.28 and in 2004​, it was ​$8.24. In 2003​, the CPI was 184.0 and in 2004​, the CPI was 188.9. Calculate the nominal wage rate in 2003 and in 2004.
Answer:
The nominal wage in 2003 = $15.22
The nominal wage in 2004 = $15.565
Explanation:
Inflation = [ ( CPI of 2003 - CPI of base year ) ÷ CPI of Base year ] × 100
= [ ( 184 - 100 ) ÷ 100 ] × 100
= 84%
Therefore,
The wage will increase by this inflation to be nominal
= 8.28 × (1.84)
= $15.23
Similarly
Inflation = [ ( CPI of 2004 - CPI of base year ) ÷ CPI of Base year ] × 100
= [ ( 188.9 - 100 ) ÷ 100 ] × 100
= 88.9%
Therefore,
The wage will increase by this inflation to be nominal
= 8.24 × (1.889)
= $15.565
Hence,
The nominal wage in 2003 = $15.22
The nominal wage in 2004 = $15.565
Oriole Company sells office equipment on July 31, 2022, for $20,280 cash. The office equipment originally cost $78,950 and as of January 1, 2022, had accumulated depreciation of $38,410. Depreciation for the first 7 months of 2022 is $4,410. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
a. The journal entries to update depreciation to July 31, 2022
Debit Depreciation expense $4,410
Credit Accumulated depreciation account $4,410
b.The entry records the sale of the equipment
Debit Cash $20,280
Debit Accumulated depreciation account $42,820
Debit Loss on asset disposal $15,850
Credit Equipment asset $78,950
Explanation:
a. The journal entries to update depreciation to July 31, 2022
Debit Depreciation expense $4,410
Credit Accumulated depreciation account $4,410
b.
Accumulated depreciation on July 31, 2022 = $38,410 + $4,410 = $42,820
Carrying amount of the equipment = Originally cost of the equipment - Accumulated depreciation = $78,950 - $42,820 = $36,130
Sales price - Carrying amount of the equipment = $20,280 - $36,130 = -$15,850 <0
The company recognizes loss on the sale $15,850
The entry records the sale of the equipment
Debit Cash $20,280
Debit Accumulated depreciation account $42,820
Debit Loss on asset disposal $15,850
Credit Equipment asset $78,950
IE 9-3 ... AS/AD Model – Suppose this economy was temporarily at Year 4, but then experienced a large LEFT shifts of AS. If the Price Level rises to $2.54, then Real Production GDP will have fallen to $4500 b and employment will be only __________. In the Business Cycle the economy will have moved beyond Point _________ .
Answer:
115, M, Stagflation
Jason, Inc. produces leather purses. Jason has developed a static budget for the first quarter, based on 20,000 direct labor hours. During the quarter, the actual activity was 22,000 direct labor hours. Data for the first quarter are summarized as follows: Static budget (20,000 hours) Actual costs (22,000 hours) Direct materials cost $ 80,000 $ 87,000 Direct labor cost 160,000 174,000 Building rental 48,000 50,000 Total $288,000 $311,000 What is the flexible budget amount for the first quarter?
a.$311,000
b.$261,000
c.$288,000
d.$312,000
e.Cannot be determined.
To determine the flexible budget for Jason, Inc., variable costs for direct materials and labor were calculated per hour and then multiplied by actual hours worked. Fixed costs for building rental were added to these variable costs to get the total. The flexible budget amount for the first quarter is $312,000. The correct option is d.$312,000.
To calculate the flexible budget amount for Jason, Inc., which produces leather purses, we must adjust the static budget based on actual activity levels. A flexible budget calculates what costs should have been for the actual level of activity during the period. Since we have the actual costs for 22,000 hours and the budgeted costs for 20,000 hours, we need to determine the variable and fixed components of the costs.
The given costs are as follows:
Direct labor cost
Building rental
Generally, direct materials and labor costs are variable costs, meaning they change with the level of production activity. The building rental is a fixed cost, which remains constant regardless of the activity level.
We can estimate the variable cost per labor hour for materials and labor by dividing the static budget costs by the budgeted labor hours. The fixed cost for building rental doesn't change and remains at $48,000.
Now, let's calculate the flexible budget:
1. Direct materials cost per hour = $80,000 / 20,000 hours = $4 per hour
2. Direct labor cost per hour = $160,000 / 20,000 hours = $8 per hour
3. Total variable cost per hour = Direct materials cost per hour + Direct labor cost per hour = $4 + $8 = $12 per hour
The flexible budget for variable costs at 22,000 hours would therefore be $12 per hour * 22,000 hours = $264,000. Adding the fixed cost of building rental, we get $264,000 (variable costs) + $48,000 (fixed costs) = $312,000.
Thus, the flexible budget amount for the first quarter is $312,000
Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal ofA. providing products at the right time.B. providing products at the right locations.C. providing the right quantities.D. satisfying the service levels supply chain participants expect.E. minimizing system-wide costs.
Answer:
A. providing products at the right time.
Explanation:
Naomi is concerned about the seasonality of Christmas products. She knows that Christmas products not sold in Christmas season are unlikely to be sold in other time of the year. She also knows that customers tend to spend more money in the Christmas season, so there is a high expectation about relative higher sales. The only way Naomy could take advantage of the season is having stock available at the right time when customers desire Christmas products and are willing to pay a relatively higher amount of money. In this case, having products at the right time is the biggest Naomi's concern.
The main transfer programs of the U.S. government include each of the following, except:
a. Social Security payments to the elderly.
b. payments on interest of the government debt.
c. direct "welfare" payments to low-income households.
d. wage payments to government employees.
Answer:
d. wage payments to government employees.
Explanation:
Transfer payment is when income is received but neither good or service is exchanged.
Examples of transfer payments in the US include- Social Security, Medicaid, and unemployment insurance .
I hope my answer helps you
Answer:
d
Explanation:
just did test
Agile project management is superior to traditional project management in which of the following situations?
Select an answer:
a. when the project is relatively simple
b. when the project goal and solution are not clearly defined
c. when the team understands the work to be done
d. when you have a small, experienced team assigned to work on the project
Answer:
The correct answer is (d) when you have a small, experienced team assigned to work on the project .
Explanation:
Agile project management is a project management methodology that is defined by its signature iterative and incremental approach to achieving requirements throughout the project life cycle. Its particularly suited for small dynamic projects and relies heavily on teamwork.
Traditional project management is a project methodology that emphasizes on a sequential predetermined approach to the project life cycle. The procedures to be followed throughout every phase of the project's life is already laid out. Changes to the laid down plan are not anticipated.This project management style is preferred for larger projects.
In conclusion,when you have a small, experienced team assigned to work on the project then you should utilize the agile project management style. Since the team is small, they are more suited to handle a smaller or medium project and will have to rely more on their teamwork to ensure project success. A traditional project management approach would require a bigger team whose experience wouldn't add any substantial edge since the project plan is already laid out. Additionally, a traditional project management approach is inherently personnel intensive, whereas the available personnel is smaller.
The Agile project management is more superior than traditional project management in situations:
when you have a small, experienced team assigned to work on the projectWhat is the agile system of management?It is the system of project management that has to do with the break down of task into several phases.
This type of management has constant collaboration with all stakeholders.
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how did US policy makers seek to stimulate the economy and integrate?
Increasing trade (Japan) and railroads (transcontinental railroad). The development of railroads continued the trend of encroaching on natives' lands.
Explanation:
The American political figures stimulated the economy and introduced the Trans-Mississippi Railroad into the nation through the transcontinental railway, creating more jobs and more revenue for the region. It boosted commerce and investment in Mississippi and increased investments in San Francisco from 7.4 million to 49 million dollars.
The current state of the United States The US negotiators have instead focused their efforts on negotiating smaller regional and reciprocal trade and investment negotiations in the midst of a stagnant WTO process. Further combined with those of Canada and Mexican nations, the US Free Trade Agreement (NAFTA, 1994)
Assume Mexico can produce 18 tons of coffee or 6 tons of rice and Costa Rica 6 tons of coffee ord 3 tons of rice. According to comparative advantage. Costra Rica therefore should produce a. only coffee b. both coffee and rice c. neither coffee or rice. d. only rice
Answer:
d. only rice
Explanation:
Please see attachment
Administrative Expenses $ 686,200 Beginning Finished Goods $ 108,620 Beginning Raw Materials $ 427,150 Beginning WIP $ 20,625 Depreciation on Factory Equip $ 202,035 Direct Labor $ 756,908 Ending Finished Goods $ 93,612 Ending Raw Materials $ 501,302 Ending WIP $ 27,941 Factory Utilities $ 312,052 Indirect Materials Used from Raw Materials $ 87,712 Insurance (70% for factory 30% for admin) $ 210,855 Marketing Expenses $ 442,807 Raw Materials Purchases $ 2,422,920 Repair and Maintenance on Factory Equip $ 129,246 Sales $ 6,420,456 Sales Supervision $ 294,485 Direct Materials Used is:
1) 2,348,768
2) 2,261,056
3) 2,422,920
4) 2,850,070
Answer:
1) 2,348,768
Explanation:
The formula to compute the direct material used is shown below:
= Opening balance of raw material + purchase - ending balance of raw material
= $427,150 + $2,422,920 - $501,302
= $2,348,768
We simply added the purchase and deduct the ending balance to the opening balance of raw material so that the accurate amount can come
Jack Holmes is a middle-aged, lower-level employee at an automobile service center. Though he is not paid very well, he loves his job. His supervisor speaks to him with respect, and he is the favored candidate for mentoring new employees because of the vast experience he holds in the job. Based on this information, which of the following is most likely to be the reason Jack likes his job?
The question is incomplete. Here is the complete question:
Jack Holmes is a middle-aged, lower-level employee at an automobile service center. Though he is not paid very well, he loves his job. His supervisor speaks to him with respect and he is the favored candidate for mentoring new employees because on the vast experience he holds in the job. Based on this information, which of the following is most likely to be the reason Jack likes his job?
A) recognition
B) prospects of growth
C) salary
D) flextime
E) job sharing
Answer:
A) Recognition
Explanation:
The fact that Jack Holmes is not overlooked, but rather recognized and respected for the vast experience he has on the job, even though he is a lower level employee, is most likely to be the reason why he likes his job.
Despite the low salary, being chosen to mentor new employees gives him job satisfaction.
Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.Required:1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.*2. Journalize the entries to record the following:*a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)3. Determine the total interest expense for 20Y1.4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest?5. Compute the price of $31,951,110 received for the bonds by using the present value tables. (Round to the nearest dollar.)
Answer:
Cash 31,951,110 debit
Bonds Payable 30,000,000 credit
Premium on BP 1, 951, 110 credit
--to record issuance of bonds--
interest expense 1,402,444.5 debit
Premium on BP 97,555.5 debit
cash 1,500,000 credit
--to record payment of interest of Dec 31th--
interest expense 1,402,444.5 debit
Premium on BP 97,555.5 debit
cash 1,500,000 credit
--to record payment of interest of June 30th--
Interest expense for 20Y1: 1,402,444.5 dollars
4.- Yes, as the market is willing to accept a higher price o nthe bond as it yields above the market.
Explanation:
proceeds: 31, 951, 110
face value: 30,000,000
premium 1, 951, 110
the premium is the difference between the proceeds and face value.
It will be amortized over 20 payment periods:
1,951,110 / 20 = 97,555.5
this will be subtracted from the interest cash payment to determinate the interest expense:
30,000,000 x 5% = 1,500,000
1,500,000 - 97,555.5 = 1,402,444.5
Under straight line mehtod all entries are the same.
To record the cash proceeds from the bond issuance, debit Cash, Bonds Payable, and Premium on Bonds Payable. Journalize the first interest payment and amortization of the bond premium. Determine the total interest expense for the year. Explain the relationship between bond proceeds and face amount. Compute the bond price using present value tables.
Explanation:To journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1, you would debit Cash for $31,951,110 and credit Bonds Payable for $30,000,000 and Premium on Bonds Payable for $1,951,110.
To journalize the entries for the first semiannual interest payment on December 31, 20Y1, you would debit Interest Expense for $1,500,000 and the Premium on Bonds Payable for $714,198, and credit Cash for $2,214,198.
The total interest expense for 20Y1 would be $3,000,000.
When the contract rate is greater than the market rate of interest, the bond proceeds may or may not be greater than the face amount of the bonds. This depends on various factors such as the overall demand for bonds and the perceived creditworthiness of the issuer.
The price of $31,951,110 received for the bonds can be computed using the present value tables. By discounting the cash flows (interest payments and face value payment) at the market interest rate of 9%, you can calculate the present value of the bond.
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Lupe made a down payment of $2200 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 11%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $200/month for 48 months. What is the cash price of the car? (Round your answer to the nearest cent.)
Answer:
Cash price of the car
= Down payment + A(1 - (1+r/m)-nm
r/m
= $2,200 + $200(1-(1+0.11/12)-4x12
0.11/12
= $2,200 + $200(1-(1+0.0091666667)-48
0.0091666667
= $2,200 + $200(1-(1.009166666667)-48
0.0091666667
= $2,200 + `$200(38.691421)
= $9,938
Explanation:
The cash price of the car is equal to the down payment plus the present value of the monthly installment. The present value of the monthly installment is obtained by using present value of annuity formula.
To find the cash price of the car, we need to calculate the total amount of money Lupe will pay over the course of the loan and subtract it from the purchase price. We can use the formula for compound interest to calculate the interest paid. By rearranging the equation, we can find the cash price of the car.
Explanation:To find the cash price of the car, we need to calculate the total amount of money Lupe will pay over the course of the loan. She is making monthly payments of $200 for 48 months, which amounts to a total of $200 x 48 = $9,600.
To calculate the cash price of the car, we need to subtract the down payment and the total amount paid over the loan from the purchase price. Let's denote the cash price as C. The purchase price minus the down payment is equal to C - $2200.
Since Lupe is paying 11% interest compounded monthly, we can calculate the total interest paid as follows:
Interest = Purchase Price x (1 + 0.11/12)^48 - Purchase Price
The total amount paid over the loan is the purchase price plus the interest paid:
Cash Price = Purchase Price - Down Payment + Interest
Substituting the given values, we have the equation:
C - $2200 = $200 - Purchase Price + Purchase Price x (1 + 0.11/12)^48 - Purchase Price
Simplifying the equation, we have:
C - $2200 = ($200 x 48) + Purchase Price x (1 + 0.11/12)^48
Now, we can solve for C:
C = ($200 x 48) + Purchase Price x (1 + 0.11/12)^48 + $2200
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When there is a positive externality associated with consumption or production: Select one:
a. The market equilibrium quantity will result in over allocation of the good.
b. The market equilibrium quantity will result in under allocation of the good.
c. The market equilibrium quantity will result in efficient allocation of the good.
d. There will be a surplus in production.
Answer:
b. The market equilibrium quantity will result in under allocation of the good.
Explanation:
A positive externality is when there is Social marginal benefit with the production and consumption of a product. Therefore the product does not just benefit an individual consumer but also the society.
This results in under allocation of resources for the production of this good and service and thus the good is generally under produced. This is because the producer down not involve the social benefit in to its pricing and thus charges goods under priced, if they were priced higher there will be more production.
Hope that helps.
What is a warranty?
Answer:
A warranty is a promise made to the buyer of a good by the seller or manufacturer of the good about the condition of the product. If the product is not in certain condition or does not work as promised than the party issuing the warranty have to repair or replace the product up to a certain period of time.
Explanation:
Which of the following tools can the Fed use to contract the money supply? a. To expand the money supply? b. Increasing the discount rateselling short-term U.S. Treasury securities.c. Lowering the reserve requirement d. Buying short-term U.S. Treasury securities. e. Quantitative easing f. Decreasing the discount rate g. Raising the reserve requirement
The Federal Reserve can contract the money supply by increasing the discount rate or selling short-term U.S. Treasury securities. It can expand the money supply by lowering the reserve requirement, buying short-term U.S. Treasury securities, implementing quantitative easing, or decreasing the discount rate.
Explanation:There are several tools that the Federal Reserve (Fed) can use to contract or expand the money supply. To contract the money supply, the Fed can increase the discount rate or sell short-term U.S. Treasury securities. By increasing the discount rate, commercial banks will reduce their borrowing of reserves from the Fed, which decreases the money supply and raises market interest rates. Selling short-term U.S. Treasury securities also contracts the money supply as it takes money out of the economy.
On the other hand, the Fed can expand the money supply by lowering the reserve requirement, buying short-term U.S. Treasury securities, implementing quantitative easing, or decreasing the discount rate. Specifically, quantitative easing stimulates aggregate demand by purchasing long-term government and private mortgage-backed securities, thus making credit more available.
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The Fed can contract the money supply by raising the discount rate or selling short-term U.S. Treasury securities. Meanwhile, they can expand the money supply by lowering the discount rate, buying short-term U.S. Treasury securities or using quantitative easing.
Explanation:The Federal Reserve can contract or expand the money supply using several tools. To contract the money supply, the Fed can increase the discount rate or sell short-term U.S. Treasury securities. This reduces the amount of money banks can lend, thereby shrinking the money supply. Conversely, to expand the money supply, the Fed can lower the discount rate or buy short-term U.S. Treasury securities. They could also use a non-traditional method like quantitative easing, which involves purchasing long-term government and private mortgage-backed securities to stimulate aggregate demand.
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Strawberry Mansion Company sells its special strawberry pie for $18. The total cost to produce the pie is $10. Of this amount, $2 per unit is selling costs. The total variable cost is $7. The desired profit is $8 per unit. What is the markup percentage on product cost?
Answer:
Product cost: $
Variable production cost 5.00
Variable selling cost 2.00
Total variable cost 7.00
Total fixed cost 3.00
Total cost 10.00
Desired profit 8.00
Selling price 18.00
Mark-up percentage on product cost
= 8 x 100
10
= 80%
Explanation:
In this case, we will divide the profit by the total cost in order to obtain the mark-up percentage on cost. The total cost equals $10 while the profit is $8. The division of profit by total cost multiplied by 100 gives the mark-up percentage on product cost.
80% is the markup percentage on product cost. Divide the difference between the sales price and the unit cost by the unit cost. The markup percentage can then be calculated by multiplying by 100.
Why do we calculate markup?A markup is an increase in a product's price that enables businesses to make a profit. Markups are necessary for long-term success because, without them, you won't be making a profit off of your products. Because it enables companies to properly price their products, markup calculation is crucial.
Given
Sale Price =$18
Total Cost $10
Required to find markup percentage on product cost =?
markup percentage on product cost = Sale Price - Total cost x 100/ Total cost.
markup percentage on product cost = 18-10 x 100 /10 =80%
The term "markup percentage" refers to a percentage markup over the cost price to arrive at the selling price. It is calculated as a ratio of gross profit to the unit's cost. 80% is the markup percentage on product cost.
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The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 5,146 Accounts Receivable 2,625 Prepaid Expenses 706 Equipment 13,948 Accumulated Depreciation 5,457 Accounts Payable 1,627 Notes Payable 4,184 Common Stock 1,000 Retained Earnings 8,630 Dividends 705 Fees Earned 6,510 Wages Expense 2,887 Rent Expense 816 Utilities Expense 310 Depreciation Expense 201 Miscellaneous Expense 64 Totals 27,408 27,408 Determine the net income (loss) for the period.
Answer:
Net income for the period $
Fees earned 6,510
Wages (2,887)
Rent expenses (816)
Utility expenses (310)
Depreciation expenses (201)
Miscellaneous expenses (64)
Dividend paid (705)
Net income 1,527
Explanation:
Net income is the excess of fees earned over costs and dividends paid. Thus, we will deduct all the costs and dividend paid from fees earned so as to obtain net income.
Final answer:
The net income for Stockton Company is calculated by subtracting the total expenses of $4,278 from the total revenues of $6,510, resulting in a net income of $2,232 for the period.
Explanation:
To determine the net income for Stockton Company, we need to calculate the total revenues and subtract the total expenses.
Based on the adjusted trial balance provided:
Fees Earned is the revenue, totaling $6,510.Total Expenses are the sum of Wages Expense ($2,887), Rent Expense ($816), Utilities Expense ($310), Depreciation Expense ($201), and Miscellaneous Expense ($64), which equates to $4,278.To find the net income, subtract the total expenses from total revenues:
Net Income = Fees Earned - Total Expenses = $6,510 - $4,278 = $2,232.
Therefore, the net income for the period is $2,232.
A firm has four branch offices throughout the state. Following are the operating results from last year. K City G City W City S City Branch office sales $300,000 $420,000 $ 540,000 $606,000 Branch office profit 120,000 294,000 318,000 104,000 Average total assets 805,000 914,000 1,650,000 745,000 Which branch had the highest return on investment?
A. K City.
B. G City.
C. W City.
D. S City.
Answer:
City K City G City W City S
$ $ $ $
ROI
= NP x 100 120.000 x 100 294,000 x 100 318,000 x 100 104,000 x 100
ATA 805,000 914,000 1,650,000 745,000
ROI 14.91% 32.17% 19.27% 13.96%
Where ROI refers to return on invetment, NP represents net profit and ATA denotes average total assets.
City G has the highest return on investment.
Explanation:
Return on investment is calculated as the ratio of net profit to average total assets multiplied by 100.
do the terms debit and credit signify increase or decrease?
The terms debit and credit in accounting refer to increases or decreases in an account's value. Debit usually signifies an increase in assets or expenses or a decrease in liabilities, equity, or revenue. On the other hand, credit typically represents a decrease in assets or expenses or an increase in liabilities, equity, or revenue.
Explanation:In accounting, the terms debit and credit are used to describe the increase or decrease of an account's value. A debit usually represents an increase in assets or expenses or a decrease in liabilities, equity, or revenue. In contrast, a credit typically signifies a decrease in assets or expenses or an increase in liabilities, equity, or revenue.
Take, for instance, a business purchases a piece of machinery costing $10,000. This transaction results in a debit to the business's Asset account (to increase it) and a credit to the Cash account (to decrease it because the business has less cash after the purchase).
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Calculating Transfer Price Burt Inc. has a number of divisions, including the Indian Division, a producer of liquid pumps, and Maple Division, a manufacturer of boat engines. Indian Division produces the h20-model pump that can be used by Maple Division in the production of motors that regulate the raising and lowering of the boat engine's stern drive unit. The market price of the h20-model is $720, and the full cost of the h20-model is $540. Required: 1. If Burt has a transfer pricing policy that requires transfer at full cost, what will the transfer price be? $
Answer:
The transfer price is $540
Explanation:
Since the transfer pricing policy of Burt stipulates that transfers should be made at full cost and the full cost is $540, thus, the transfer price is $540.
The transfer price according to Burt Inc.'s policy, which requires transferring at full cost, would be $540 for the h20-model pump.
Explanation:The subject in question involves transfer pricing, which is a concept used in managerial and cost accounting. In the scenario provided, Burt Inc.'s internal transfer pricing policy requires transfers at full cost. Therefore, the transfer price that the Indian Division would charge the Maple Division for the h20-model pump would be the full cost of the product. If Burt Inc. has a transfer pricing policy that requires transfer at full cost, then the transfer price for the h20-model pump will be the full cost of $540.
As stated: "The full cost of the h20-model is $540." This means that the transfer price from the Indian Division to Maple Division should be $540.
Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % and a yield to maturity of 7.2 %. Its tax rate is 38 %. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield. The effective after-tax cost of debt is nothing%.
Answer:
effective (after-tax) cost of debt = 4.464 %
Explanation:
given data
coupon rate = 5.9 %
yield to maturity = 7.2 %
tax rate = 38 %
to find out
effective (after-tax) cost of debt
solution
we get here effective (after-tax) cost of debt that is express as
effective (after-tax) cost of debt = Yield to maturity × ( 1 - Tax rate) ..........1
put here value we get
effective (after-tax) cost of debt = 7.2% × ( 1 - 38 % )
effective (after-tax) cost of debt = 0.072 × ( 1 - 0.38 )
effective (after-tax) cost of debt = 0.072 × 0.62
effective (after-tax) cost of debt = 0.04464
effective (after-tax) cost of debt = 4.464 %
Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.A) ConsumerB) institutionalC) producerD) governmentE) reseller
Answer: reseller markets
Explanation: In simple words, re-sellers refers to the buyers buying certain goods with the intention of selling them to anyone else. There are suppliers, retailers and distributors on the re-seller trade.
Re sellers can constrain their acquisitions to one product or company or offer a variety of brands and products.
These are the part of supply chain which makes their profit by adding value in the goods in form of providing any kind of service. For example the retailer provides commodities near the customer place hence charges extra for the time saving customer.
A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the investment's value, taking into account the time value of money?'
Answer:
The marketing firm should use the Present Net Value calculation to see if the marketing campaign will add value to the company.
Explanation:
The Present Net Value is a calculation that brings to present time all the future cash flows of an investment. Seeing the campaign marketing strategy as a potential investment, the firm has to identify the revenue entirely caused by the marketing campaign. Doing this, the firm will identify inflows (sales) per year that have to be subtracted to the outflows (marketing expenses). The net value of every year is discounted at a discount rate, and if the Present Net Value is higher than 0, it means that the marketing strategy is expected to bring value to the firm
Laurel, Inc., and Hardy Corp. both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has six years to maturity, whereas the Hardy Corp. bond has 19 years to maturity.If interest rates suddenly rise by 2 percent, what is the percentage change in the price of each bond?
Answer:
Laurel = -8.38%
Hardy = -14.85%
Explanation:
Present Price of Bond :
Laurel, Inc. = $1000
Hardy Corp. = $1000
After Percentage Price would be
Laurel, Inc = Present Value (i=6%, n=12, PMT=50, FV=1000) = $916.16
Hardy Corp = Present Value (i=6%, n=30, PMT=50, FV=1000) = $851.54
Percentage change in price
Laurel, Inc = (916.16-1000)/1000 = -8.38%
Hardy Corp = (851.54-1000)/1000 = -14.85%
Final answer:
The price of both bonds will decrease if interest rates rise by 2 percent, with the bond having a longer maturity being more affected. To calculate the specific percentage change in price, discount the bond's future cash flows by the new interest rate and compare it to the original price of $1,000 using the provided formula.
Explanation:
If interest rates suddenly rise by 2 percent, the price of each bond will decrease, because the present value of the interest and principal payments will decrease. The bond price will be impacted more for the bond with the longer maturity. To calculate the percentage change in the price of the bond, we must consider the present value of the bond's future cash flows discounted by the new market interest rate.
Since these are 10 percent coupon bonds with semiannual interest payments, a 2 percent increase in rates implies a 1 percent increase per semiannual period. The formula to find the bond price is:
Bond Price = (C × (1 - (1 + r)^(-n)) / r) + (F / (1 + r)^n)
Where:
C is the semiannual coupon payment,r is the new semiannual market interest rate,n is the number of semiannual periods remaining until maturity,F is the face value of the bond.For a 10 percent coupon bond with a face value of $1,000, the semiannual coupon payment is $50 (5 percent of $1,000).
With a 2 percent increase in annual rates, the semiannual rate becomes 6 percent (since the current market rate is 5 percent plus a 1 percent increase).
The percentage change in price would be calculated as:
Percentage Change = ((New Price - Old Price) / Old Price) × 100%
The actual calculation requires the proper input of C, r, and n for each bond and then applying the percentage change formula.
firm employs 100 workers and has 2 divisions, each in perfectly competitive markets. Division A produces tape measures and Division B produces saws. How should the firm allocate its workers to maximize efficiency?
Allocate workers between the divisions so the average cost of producing tape measures equals the average cost of producing saws.
Allocate workers to the division with the lowest marginal product of labor and divest from the other division.
Allocate workers so the marginal product of labor is the same in both divisions.
III only.
II and III only.
II only.
I only.
Answer:
Only III.
Explanation:
To begin with, we have to define the marginal product of labour. We can say that it is the change that occurs in output due to the use of one more unit of labor; thus, the marginal product of labour let us know when the labor force is more productive, which results in a higher income because it is cheaper to produce each item, and then is directly a measure of efficiency.
In this vein, if we want to maximize efficiency, we must maintain the marginal product of labour balanced in both divisions, thus , the answer is only III.
Option I is not a correct answer because the average cots of producing a product doesn't refer to the efficiency of the process. And option II does not specify to what extent workers should be moved.
Addai Company has provided the following comparative information:
20Y8 20Y7 20Y6 20Y5 20Y4
Net income $273,406 $367,976 $631,176 $884,000 $800,000
Interest expense 616,047 572,003 528,165 495,000 440,000
Income tax expense 31,749 53,560 106,720 160,000 200,000
Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000
Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000
Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000
Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000
You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:
20Y4–20Y8
Return on total assets 28%
Return on stockholders’ equity 18%
Times interest earned 2.7
Ratio of liabilities to stockholders’ equity 0.4
Required:
Determine the folllowing:
a. Return on total assets:
b. Return on stockholders' equity:
c. Times interest earned:
Answer:
Return on total assets: (Net income + Interest expense)/ Average total assets
Return on stockholders’ equity : Net Income / Average Total stockholder
Explanation: I got the answer right
Final answer:
The answer explains how to calculate Return on Total Assets, Return on Stockholders' Equity, and Times Interest Earned using the provided financial data.
Explanation:
a. Return on total assets:
To calculate Return on Total Assets, divide Net Income by Average Total Assets for each year. This ratio measures how efficiently the company is using its assets to generate profit.
b. Return on stockholders' equity:
Return on Stockholders' Equity is calculated by dividing Net Income by Average Stockholders' Equity. It shows how well the company is generating profit from the shareholders' investments.
c. Times interest earned:
To find the Times Interest Earned ratio, divide Earnings Before Interest and Taxes (EBIT) by Interest Expense. This ratio indicates the company's ability to cover its interest payments.
Two key structural enhancements should improve the coordination of multinational forces. They are a(n) _____ and coordination centers.
Answer:
The correct word for the blank space is: Liaison network.
Explanation:
A liaison network is formed when countries contact others to fulfill their needs. Those countries set up a communication network that allows them to be in touch efficiently to break the distance barriers and to allow information to be shared at the same peace they happen.
Consider the following account balances of Smiths Corp. at the end of the year:
Cash $12,000
Unearned Revenue $18,000
Interest Revenue $5,000
Supplies $3,500
Common Stock $25,000
Rent Expense $6,000
Accounts Receivable $11,700
Salaries Expense $7,500
1. How many of these accounts would be reported in the company’s income statement?
Answer:
Interest revenue, rent expense and salaries expense
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
So, the categorization is shown below:
Interest revenue, rent expense and salaries expense