Borges Machine​ Shop, Inc., has a​ 1-year contract for the production of 225,000 gear housings for a new​ off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are​ general-purpose equipment​ (GPE), flexible manufacturing system​ (FMS), and​ expensive, but​ efficient, dedicated machine​ (DM). The cost data​ follow: ​

General-Purpose Equipment​ (GPE) Flexible Manufacturing System​ (FMS) Dedicated Machine​ (DM)
Annual contracted units 225,000 225,000 225,000
Annual fixed cost $125,000 $225,000 $480,000
Per unit variable cost $15.00 $14.00 $13.00

The option GPE is best when the contracted volume is below:__________

Answer:

For 225,000 units FMS is the best alternative.

For GPE: TC  

GPE  

[tex]= $100,000 + ($15.00\times 225,000)\\\\= $3,475,000[/tex]

For 0 units GPE has the lowest TC. The next lowest cost is FMS.

x = ($200,000-$100,000)/($15-$14) = 100,000  

Therefore, for 0 to 100,000 units GPE is the best alternative.

Explanation:  

Formula used:-

For 225,000 units FMS is the best alternative.

Total Cost (TC) = Fixed Cost (FC) + [Variable Cost (VC) x Annual Contract Units (ACU)]  

For GPE: TC  

GPE  

[tex]= $100,000 + ($15.00\times 225,000)\\\\= $3,475,000[/tex]

For FMS: TC  

FMS  

[tex]= $200,000 + ($14.00\times 225,000)\\\\= $3,350,000[/tex]

For DM: TC  

DM  

[tex]= $480,000 + ($13.00 \times225,000)\\\\= $3,405,000[/tex]

For 0 units GPE has the lowest TC. The next lowest cost is FMS. Comparing these two plans, let x be the no of units when the cost of both plans is the same.  

x = ($200,000-$100,000)/($15-$14) = 100,000  

Therefore, for 0 to 100,000 units GPE is the best alternative  

Similarly comparing FMS and DM to find x, we get  

x= ($ 480,000-$ 200,000)/($14-$13) = 280,000  

So, for the 225,000 and 280,000 range, FMS is the best alrernative.  

For greater than 280,000 DM is the best alternative.  

The option GPE is best when the contracted volume is below 100,000 units  

The option FMS is best when the contracted volume is between 100,000 and 280,000 units (enter your response as a whole number)  

The option DM is best when the contracted volume is over 280,000 units (enter your response as a whole number)

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016, included the following income accounts: Account Title Debits Credits Sales revenue 2,720,000 Cost of goods sold 1,600,000 Selling and administrative expenses 440,000 Interest expense 60,000 Unrealized holding gains on investment securities 100,000 The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 30%. 2 million shares of common stock were outstanding throughout 2016. Required: Prepare a single, continuous multiple-step statement of comprehensive income for 2016, including appropriate EPS disclosures. (Round EPS answers to 2 decimal places.)

Lara Technologies is considering a cash outlay of $239,000 for the purchase of land, which it could lease out for $39,450 per year. If alternative investments that yield a 15% return are available, the opportunity cost of the purchase of the land is a.$39,450 b.$35,850 c.$75,300 d.$3,600

Define and explain SMART?

Barry Boots Inc. is considering adding a new line of boots. Based on preliminary market research, management has decided that each pair of boots should be priced at $300. Furthermore, management believes that the profit margin should be 30 percent of sales revenue.
What is the target cost?
a. $150.75
b. $225.50
c. $260.00
d. $157.50

Boston Consulting Group (BCG) is a management consulting, technology services and outsourcing organization. Which of the following actions should managers take when there is evidence that a fixed-rate contract is over budget and will generate a loss for the firm?
a. Use the percentage of completion method and pro rate the loss over the entire term of the engagement
b. Restate the financial statements and recognize the loss in the earliest period of the engagement
c. Use the percentage of completion method to recognize the loss over the remaining term of the engagement.
d. Recognize the loss in the current period rather than over the remaining term of the engagement
e. None of the above

Trả lời câu hỏi “vì sao “ dùng phỏng vấn hay anket

Your company has an average inventory of $70 million. Annual cost of goods sold (COGS) is $280 million. Profit in the most recent year was $140 million. What are annual inventory turns for your company

Which of the following is/are subject to the restrictions of the fair debt collection practice act

A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 110 parts per hour while running. The manager has assigned an inefficiency factor of .20 to the center. Standard containers are designed to hold 4 dozen parts each. The cycle time for parts containers is about 110 minutes. How many containers are needed?

Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.

April 1 Sold merchandise on account to Jim Dobbs, $8,400. The cost of the merchandise is $3,360.
June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.
Oct. 11 Reinstated the account of Jim Dobbs for and received cash in full payment.

In computing earnings per share for a simple capital structure, if the preferred stock is cumulative, the amount that should be deducted as an adjustment to the numerator (earnings) is the:________a. preferred dividends in arrears.b. preferred dividends in arrears times (one minus the income tax rate).c. annual preferred dividend times (one minus the income tax rate).d. none of these.

The following financial statement information is available for Houser Corporation: 2012 2011 Inventory $ 44,000 $ 43,000 Current assets 81,000 106,000 Total assets 432,000 358,000 Current liabilities 30,000 36,000 Total liabilities 102,000 88,000 The current ratio for 2012 is Group of answer choices .37:1. 2.7:1. .79:1. 4.24:1.

illings and collections between an Enterprise Fund and the General Fund A city uses an Enterprise Fund to provide electricity to its citizens and to its General Fund. A total of $50,000 was billed to the General Fund and collected 30 days later. Prepare the journal entries necessary to record these transactions, and label the fund(s) used. Note: Under the Fund column, select the appropriate fund in which the transaction is recorded (GF: General Fund or ISF: Internal Service Fund).

Truck-Or-Treat specializes in leasing trucks to delivery companies. It is considering adding 25 more trucks to its available stock. Doing so will not change the risk of the company's business. The trucks depreciate over five years under the straight-line depreciation method, all the way to zero. Truck-Or-Treat believes that these newly added trucks would be able to bring the company $220,000 in annual earnings before taxes and depreciation (i.e., sales revenue minus costs of goods sold) for five years. The company is unlevered. It is in 21 percent tax rate bracket. The required annual rate of return on Truck-Or-Treat's unlevered equity is 15 percent. The risk-free rate, e.g., the Treasury bill rate, is 6 percent per year.

Required:
Calculate the maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company. (In other words, what should be the "initial investment" of this unlevered truck project such that the project's NPV equals $0?

Park uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods
sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. (Round per unit costs to
three decimals, but inventory balances to the dollar.) For specific identification, ending inventory consists of
225 units, where 90 are from the March 30 purchase, 80 are from the March 20 purchase, and 55 are from
beginning inventory.

Cocoa nibs from Nigeria last year was supplied at $9 per 10 pounds. This year the demand has increased and that same supply of Nigerian cocoa nibs is priced at $12 per 10 pounds. What will most likely happen to supply of Nigerian cocoa nibs this year?
a. There will be an increase in quantity supplied.
b. There will be a decrease in quantity supplied.
c. The supply curve will shift to the left.

Which one of the following sentences contains NO errors? A. Employees will not recieve a certificate until they have completed all three courses. B. When new employees join the State their encouraged to take an orientation course that explains health and retirement benefits. C. Due to budget restrictions, no new training courses will be approved until the new fiscal year. D. All training courses that have previously been schedule can continue as planned.

Maplewood Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Cost per equivalent unit has been calculated to be $4.00 for conversion costs and $3.00 for materials. 2,000 units were in beginning inventory (100% complete for materials, 80% for conversion). 8,000 units were started and completed during the period. Ending inventory still in process was 4,000 units (100% complete for materials, 40% forconversion). The value of ending inventory using the FIFO method would be:______.
A. $18,400.00B. $23,133.20C. $31,933.20D. $65,000.00

2. Write the importance of professional education ​

A physical count of merchandise inventory on November 30 reveals that there are 96 units on hand. Cost of goods sold (rounded) under FIFO is

A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires: ________

Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Unit Per 20,000 Units Per YearDirect materials $17 340,000 Direct labor 11 220,000Variable manufacturing overhead 3 60,000Fixed manufacturing overhead, traceable 3 60,000Fixed manufacturing overhead, allocated 6 120,000 Total cost $40 800,000Required:1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier?2. Should the outside supplier’s offer be accepted?3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $200,000 per year. Given this new assumption, what would be financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier?4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted?

The evolution of the marketing concept can be explained best by the shift from a seller's market in which demand exceeds supply to a buyer's market in which supply exceeds demand.

a. True
b. False

how JSE reported the negative impact of the coronavirus on the economic conditions of South Africa
​

One of Hawk Company's customers returned products that cost Hawk $500, which was sold on account for $800. Which of the following correctly describes the affect of the return on the financial statements? Group of answer choices Gross profit decreases $800. Total current assets decrease $300. Sales returns and allowances increase $300. Net sales increase $300.

MONTGOMERY INC.
Comparative Balance Sheets
December 31, 2018 and 2017
2018 2017
Assets
Cash $ 38,200 $ 38,700
Accounts receivable, net 10,800 13,400
Inventory 96,800 77,500
Total current assets 145,800 129,600
Equipment 53,600 45,800
Accum. depreciation—Equipment (24,200 ) (16,900 )
Total assets $ 175,200 $ 158,500
Liabilities and Equity
Accounts payable $ 25,700 $ 28,100
Salaries payable 400 500
Total current liabilities 26,100 28,600
Equity
Common stock, no par value 129,300 119,000
Retained earnings 19,800 10,900
Total liabilities and equity $ 175,200 $ 158,500
MONTGOMERY INC.
Income Statement
For Year Ended December 31, 2018
Sales $ 40,300
Cost of goods sold (16,700 )
Gross profit 23,600
Operating expenses
Depreciation expense $ 7,300
Other expenses 5,000
Total operating expense 12,300
Income before taxes 11,300
Income tax expense 2,400
Net income $ 8,900
Additional Information
No dividends are declared or paid in 2018.
Issued additional stock for $10,300 cash in 2018.
Purchased equipment for cash in 2018; no equipment was sold in 2018.
1. Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2018, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

The first step in the control process is ________. A) setting the desired morals
B) measuring actual performance
C) comparing performance against expectations D) applying managerial control

Assume BarnesandNoble.com has 289 business math texts in inventory. During one month, the online bookstore ordered and received 1,855 texts; it also sold 1,222 on the web. What is the bookstore’s inventory at the end of the month? If each text costs $59, what is the end-of-month inventory cost?

After a product recall triggered by salmonella contamination and repeated violation citations by the health department, Mc Burger Inc. is considering introduction of its first brand of soy-based gourmet burgers, Healthylicious-n-Safe. Each box of Healthylicious-n-Safe contains 8 burgers (similar to other meatless burger brands). An extensive marketing research undertaken by the firm indicated that there is a growing demand in the meatless burger market, with annual projected sales of 1,250,000 boxes (Note that this is the demand in the total meatless burger market and not the demand for the Healthylicious-n-Safe brand).

Mc Burger estimates that it will incur a fixed cost of $35,000/month. The variable cost of making one burger is estimated to be $0.875. Mc Burger plans to run a promotional campaign in the first 12 months of product introduction, which is estimated to cost a total of $275,000. Based on its marketing research Mc Burger expects an average customer to pay $9.00 for a box of Healthylicious-n-Safe.

Required:
Do you think Mc Burger should launch this new product? Is Mc Burger likely to break-even in 12 months? Is Mc Burger likely to break-even in 18 months?

Suppose that the money supply of a country is $75 billion and the velocity of money is 3. The economy's total production quantity is 522 billion units. Instructions: In part a, round your answer to 2 decimal places. In part b, enter your answer as a whole number.
a. According to monetarist thought, what will be the average price of a good produced in this economy?
b. What is this country's GDP?