The Coughlin Company retails twoâ products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is asâ follows:
Standard Carrier Deluxe carrier Total
Units sold 187,500 62,500 250,000
Revenues at $28 and $50 per unit 5250000 3125000 8375000
Variable costs at $18 and $3 per unit 3375000 1875000 5250000
Contribution margins at $10 and $20 per unit 1875000 1250000 3125000
Fixed costs 2250000
Operating income 875,000
Requirement:
a. Compute the breakeven point inâ units, assuming that the company achieves its planned sales mix.
b. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold.
c. Suppose 250,000 units are sold but only 50,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units.
Answers
Answer:
Please see answers as attached.
Explanation:
Please find attached detailed explanation for the questions above.
Related Questions
Whipple Corp. just issued 325,000 bonds with a coupon rate of 6.29 percent paid semiannually that mature in 30 years. The bonds have a YTM of 6.73 percent and have a par value of $2,000. How much money was raised from the sale of the bonds? (Round your intermediate calculations to two decimal places and final answer to the nearest whole dollar amount.)
Answers
Answer:
la bilirrubina me duve a 100
2. Which is NOT an activity that requires training?
A ) Using ladders
B ) Using power tools
C ) Walking up and down stairs
D ) Working on catwalks and grids
Answers
A local barnes and noble paid a 79.00 net price for each hardbound atlas. The publisher offered a 10% trade discount. What was the list price?
Answers
Answer:
87.78
Explanation:
The net price was $79.00 after a 10% discount. It means 79.00 was 90% of the list price.
The list price is 79.00/ 90 x 100
=0.87 x 100
=87.7777777
=87.78
At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1.5 times the regular hourly rates. Company records show the following information for the week ended December 26, 20--. Employee Salary Hrs. WorkedCumulative Taxable Wages as of Last Pay Period (12/19/--) OFFICEKing, M.$135,200.00 per year40$132,600.00 Manera, E.$6,500.00 per month40$76,500.00 Tate, S.$3,900.00 per month48$45,900.00 Yee, L.$12.50 per hour44.5$27,675.13 PLANTDiaz, R.$12.50 per hour48$14,778.96 Zagst, J.$14.50 per hour52$24,703.02 On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--. Also, determine the total where indicated.
Answers
Answer:
Employee Salary Hrs. Worked Cumulative Taxable
Wages as of Last Pay Period
King, M. $135,200 (year) 40 $132,600.00
Manera, E. $6,500 (month) 40 $76,500.00
Tate, S. $3,900 (month) 48 $45,900.00
Yee, L. $12.50 (hour) 44.5 $27,675.13
Diaz, R. $12.50 (hour) 48 $14,778.96
Zagst, J. $14.50 (hour) 52 $24,703.02
(a) regular earnings,
King, M. $135,200 / 52 weeks = $2,600
Manera, E. $1,500 weekly salary
Tate, S. $900
Yee, L. $12.50 x 40 = $500
Diaz, R. $12.50 x 40 = $500
Zagst, J. $14.50 x 40 = $580
(b) overtime earnings,
King, M. $0
Manera, E. $0
Tate, S. [($900 / 40) x 8 x 1.5] = $270
Yee, L. $12.50 x 4.5 x 1.5 = $84.38
Diaz, R. $12.50 x 8 x 1.5 = $150
Zagst, J. $14.50 x 12 x 1.5 = $261
(c) total regular and overtime earnings,
King, M. $2,600
Manera, E. $1,500
Tate, S. $1,170
Yee, L. $584.38
Diaz, R. $650
Zagst, J. $841
(d) FICA taxable wages (the FICA taxes limit for 2020 is $137,700, so everyone will be taxed)
King, M. $2,600
Manera, E. $1,500
Tate, S. $1,170
Yee, L. $584.38
Diaz, R. $650
Zagst, J. $841
(e) FICA taxes to be withheld
King, M. $2,600 x 7.65% = $198.90
Manera, E. $1,500 x 7.65% = $114.75
Tate, S. $1,170 x 7.65% = $89.51
Yee, L. $584.38 x 7.65% = $44.71
Diaz, R. $650 x 7.65% = $49.73
Zagst, J. $841 x 7.65% = $64.34
(f) net pay for the week ended
King, M. $2,600 - $198.90 = $2,401.10
Manera, E. $1,500 - $114.75 = $1,385.25
Tate, S. $1,170 - $89.51 = $1,080.49
Yee, L. $584.38 - $44.71 = $539.67
Diaz, R. $650 - $49.73 = $600.27
Zagst, J. $841 - $64.34 = $776.66
What are the differences between psychodynamie and psychounalytic
theories of personality?
Answers
Answer:
The words psychodynamic and psychoanalytic are often confused. Remember that Freud's theories were psychoanalytic, whereas the term 'psychodynamic' refers to both his theories and those of his followers. Freud's psychoanalysis is both a theory and therapy.
The ______ is a corporate planning tool in which the corporation is viewed as a portfolio of business units.
Answers
It should be noted that a growth-share matrix is a corporate planning tool in which the corporation is viewed as a portfolio of business units.
What is growth-share matrix?
The growth-share matrix serves as planning tool that uses graphical representations of a company's products .
It is a tool that help the company decide what it should keep, sell, or invest.
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how will food delivery like deliveroo engage with local community
Answers
Answer:
People can go around and help the economy continue flowing
Explanation:
The person ordering is supporting a restaurant in the community without having to leave the house if they don't want to but they are still able to get food from places and they are able to support them with their business. They are also paying the person who is delivering the food, helping give people in the community jobs and keep the economy flowing.
Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price $167 Materials and purchased parts $25/unit Direct Labor 2 hrs at $20 per hour Fixed Cost $1,400,000 If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.
Answers
The manufacturing cost per unit for Tech Engineering is $97 having charged overhead expenses at 80 % of labor cost
What is manufacturing cost?Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material and direct labor.
Manufacturing cost is computed as:
= Materials and purchased parts cost + Direct labor cost + Overhead expenses
= $25 + $40 + 80% * $40
= $25 + $40 + $32
= $97
Hence, the manufacturing cost per unit for Tech Engineering is $97
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The two most common types of fraud impacting financial statements are:___________
a. corruption and fraudulent financial reporting.
b. misappropriation of assets and embezzlement.
c. fraudulent financial reporting and e-commerce fraud.
d. fraudulent financial reporting and misappropriation of assets.
Answers
The two most common types of fraud impacting financial statements are d. fraudulent financial reporting and misappropriation of assets.
What are the main financial statements frauds?The main types of financial statement fraud include:
Improper revenue recognitionOverstatement of assetsUnderstatement of liabilitiesMisappropriation of assetsImproper disclosure.Experience has shown that revenue recognition is the most common type of financial statement fraud.
Thus, the two most common types of fraud impacting financial statements are Option d.
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What are some Drawbacks of business Debt?
Answers
Answer:Paying Back the Debt. Making payments to a bank or other lender can be stress-free if you have ample revenue flowing into your business. ...
High Interest Rates.
The Effect on Your Credit Rating.
Cash Flow Difficulties.
Explanation:
National orthopedics company issued 8% bonds dated january 1 with a face amount of 750000 on january 1 2021 the bonds mature on devember 21 2024 for bonds of similar risk and maturity the market rield was 10% interest is paid semiannually on june 30 and december 31 deteremine the price of the bonds at january 1 2021.
Required:
a. Prepare the journal entry to record their issuance by nation on january 1 2021.
b. Prepare an amortization schedule that determines interest a the effective rate each period.
c. Determine the price of the bonds at January 1, 2021.
d. Prepare the appropriate journal entries at maturity on December 31, 2021.
Answers
Answer:
a) January 1, 2021, bonds issued at a discount
Dr Cash 701,527.50
Dr Discount on bonds payable 48,472.50
Cr Bonds payable 750,000
price per bond:
PV of face value = $1,000 / (1 + 5%)⁸ = $676.84
PV of coupons payments = $40 x 6.4632 (PV annuity factor, 5%, 8 periods) = $258.53
price = $935.37
b. I attached an excel spreadsheet
c. price of each bond at issuance = $935.37
d. December 31, 2024, last coupon payment
Dr Interest expense 37,140.61
Cr Cash 30,000
Cr Discount on bonds payable 7,140.61
December 31, 2024, bonds redeemed
Dr Bonds payable 750,000
Cr cash 750,000
Snow Cap Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $160,000. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin.
Answers
The break-even point in units using the mathematical equation is 2,000 in units and the unit contribution margin is 80 per unit.
Break even points in unitsa. Break-even point in unit
Using this formula
Break-even point in unit=Fixed cost/(Selling price-Variable cost)
TC = FC + VC
Sales - TC = Net Income
Sales - TC = 0
Sales - FC - VC = 0
2500(Q)-160,000-170(Q) = 0
80(Q)-160,000 = 0
80(Q)=160,000
Q=160,000/80
Q=2,000 break-even in units
b. Unit contribution margin
Unit contribution margin = Selling price- Variable cost
Unit contribution margin= $250 - $170
Unit contribution margin =$80 per unit
Inconclusion the break-even point in units using the mathematical equation is 2,000 in units and the unit contribution margin is 80 per unit.
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Swifty Corporation was started on April 1 by R. S. Francis and associates. The following selected events and transactions occurred during April. Apr. 1 Stockholders invested $49,800 cash in the business in exchange for common stock. 4 Purchased land costing $30,500 for cash. 8 Incurred advertising expense of $1,510 on account. 11 Paid salaries to employees $1,380. 12 Hired park manager at a salary of $4,600 per month, effective May 1. 13 Paid $1,620 cash for a one-year insurance policy. 17 Declared and paid a $1,810 cash dividend. 20 Received $6,200 in cash for admission fees. 25 Sold 113 coupon books for $51 each. Each book contains 10 coupons that entitle the holder to one admission to the park. 30 Received $9,000 in cash admission fees. 30 Paid $530 on balance owed for advertising incurred on April 8. Swifty uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.Required:Journalize the April transactions.
Answers
Answer:
Swifty Corporation
Journal Entries:
April 1:
Debit Cash Account $49,800
Credit Common Stock $49,800
To record the issue of common stock for cash.
April 4:
Debit Land $30,500
Credit Cash Account $30,500
To record the purchase of land for cash.
April 8:
Debit Advertising Expense $1,510
Credit Accounts Payable $1,510
To record advertising expense incurred on account.
April 11:
Debit Salaries and Wages Expense $1,380
Credit Cash Account $1,380
To record the payment of salaries to employees.
April 13:
Debit Prepaid Insurance $1,620
Credit Cash Account $1,620
To record the prepayment of Insurance for one year.
April 17:
Debit Dividends $1,810
Credit Cash Account $1,810
To record the declaration any payment of dividend.
April 20:
Debit Cash Account $6,200
Credit Service Revenue $6,200
To record the receipt of admission fees in cash.
April 25:
Debit Cash Account $5,763
Credit Unearned Service Revenue $5,763
To record the receipt of admission fees in advance.
April 30:
Debit Cash Account $9,000
Credit Service Revenue $9,000
To record the receipt of admission fees in cash.
April 30:
Debit Accounts Payable $1,510
Credit Cash Account $1,510
To record the payment of advertising on account.
Explanation:
Swifty Corporation uses journals to initially record its business transactions as they occur on a daily basis. Journalizing transactions is an important step in the accounting process, as it identifies accounts involved and shows the accounts to be debited and the ones to be credited in the general ledger.
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $6,500 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $300 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $12,300 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $12,300 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Answers
Answer: Check attachment
Explanation:
Apr. 17:
Account payable:
= $6500 - $900
= $5600
Merchandise Inventory
= $5600 × 2%
= $5600 × 0.02
= $112
Cash = $5600 - $112
= $5488
Apr. 28:
Account payable:
= $12300 - $500
= $11800
Merchandise inventory
= $11800 × 1%
= $11800 × 0.01
= $118
Cash = $11682
Check attachment
In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 650 units at $4, (2) 750 units at $6, and (3) 850 units at $7. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter an average unit cost in dollars eTextbook and Media List of Accounts Compute the cost of the ending inventory under the average-cost method, assuming there are 550 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.) The cost of the ending inventory $enter the cost of the ending inventory in dollars
Answers
Answer: Average unit cost=$5.800 per unit
Cost of Ending inventory =$3,190
Explanation:
Average unit cost
First purchase= 650 units x $4=$2,600
Second Purchase=750 units x $6 =$4,500
Third Purchase= 850 units x $7 = $5,950
Total Cost = $13,050
Average unit cost = Total cost/ number of units =13,050/(650+750+850)= 13,050/2250= $5.8 per unit
Cost of Ending inventory = 550 unts at hand x $5.8 =$3,190
(using the average cost method)
he operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg. For the production combination of 135 Lite and 0 Dark, which resource is slack (not fully used)?
Answers
The slack resource is the Production Time of 210 minutes.
What is a slack resource?Slack resources are excess resources. They are recognized as spare organizational capabilities and assets ready for use in productive activities.
Slack resources represent underutilized and hidden spare capacities and energies that a company can employ whenever it chooses or possesses other required resources to combine with the slack resource.
Data and Calculations:Production time = 8 hours or 480 minutes per day
Malt extract = 675 gallons
Lite (L) Dark (D)
Production time 2 min 4 min
Malt extract 5 gallons 3 gallons
Profits per keg $3.00 $2.00
Required production 135 kegs
Total resources required:
Production time = 270 minutes (135 kegs x 2) slack = 210 min (480 - 270)
Malt extract = 675 gallons (135 x 5) Slack = 0 min (675 - 675)
Thus, the slack resource is the Production Time of 210 minutes.
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The table below shows the annual change in the average nominal wage and inflation rate since 2008.
a. Compute the percentage change in real income for each year shown in the table.
Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a negative number, include a minus sign.
(Table in the picture. If you could provide me with a formula and an example I can do it on my own after that. Thanks :) )
b. Of the years listed above, the paycheck of the average worker declined in
of the six years.
c. Of the years listed above, the purchasing power of the average worker declined in
of the six years.
d. The average real income of households can increase (Click to select)
Answers
Based on the given data in the table, the percentage change in real income per year are:
2008 = -3.512009 = - 0.842010 = -2.38.2011 = -1.79.2012 = 0.612013 = 0.77The number of years the paycheck of the average worker declined was 2 years.
The number of years the purchasing power declined was 4 years.
The average real income of households can increase when nominal wage growth is larger than inflation.
What does the table show?To find the percentage change in real income each year, subtract Annual inflation from Annual nominal wage growth.
= 0.33 - 3.84 = -3.51
= -1.20 - (-0.36) = -0.84
= -0.74 - 1.64 = -2.38
= 1.37 - 3.16 = -1.79
= 2.68 - 2.07 = 0.61
= 2.23 - 1.46 = 0.77
For two years, the average paycheck declined when in 2009 and 2010, the nominal wage growth was negative.
Purchasing power declined for 4 years from 2008 to 2011 when annual real wage growth was negative.
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Kevin’s Bacon Company Inc. has earnings of $7 million with 2,500,000 shares outstanding before a public distribution. Eight hundred thousand shares will be included in the sale, of which 500,000 are new corporate shares, and 300,000 are shares currently owned by Ann Fry, the founder and CEO. The 300,000 shares that Ann is selling are referred to as a secondary offering and all proceeds will go to her. The net price from the offering will be $18.50 and the corporate proceeds are expected to produce $1.4 million in corporate earnings. a. What were the corporation’s earnings per share before the offering? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Answers
Answer:
$2.80
Explanation:
The computation of the corporation’s earnings per share before the offering is shown below:-
Corporation’s earnings per share before the offering = Earnings ÷ Outstanding shares
= $7,000,000 ÷ 500,000
= $2.80
Therefore for computing the corporation’s earnings per share before the offering we simply applied the above formula.
A woman worked part-time as a clerk at a drug store. She worked mostly on weekdays from 5 PM to 9 PM, but was occasionally given other shifts. Due to glaucoma, she eventually lost all sight in her left eye. She had no difficulty performing her job, but she did experience problems getting to work. She asked to be given a "day shifts only" schedule because of the danger of driving home at night and the complete unavailability of public transportation. Her supervisor said that she would not be given the schedule she requested because that would not be fair to the storeâs other employees. The woman provided a doctorâs note recommending that she not drive during evening hours, but the store did not change its position. Her union representative met with store officials and reported that he "got nowhere." Other attempts to arrange meetings involving the woman fell through. She received rides from family members and did not miss any work following the denial of her request. However, it became too difficult to continue to arrange rides and she quit.
Required:
Did the store fail to reasonably accommodate this employee? Why or why not?
Answers
Answer:
Did the store fail to reasonably accommodate this employee? Why or why not?
Yes, the store did fail to accommodate this woman. Changing her work schedule was not an extra benefit, it was a necessity for her. Changing her schedule due to valid medical reasons isn't being nice to her, it is doing the right thing. She was a good employee since she tried to keep working despite being difficult for her to go to work, but was unable to continue doing so.
In legal terms, in order to determine if the supervisor's actions violated the American Disabilities Act, we must first know if the woman's glaucoma was so severe that it was considered a disability. Apparently due to the doctor's note, her condition could be considered a disability. If she was legally disabled, then the supervisor and the company should have been fined. They are legally required to change her work shift.
What are the things that you need to change for you to be a better person??
Answers
Explanation:
Any negative attitude you might ha e toward life and/or workIf the way you treat others is not how you want to be treated, you need to change your behavior.Be open-mindedAlways try to see the good Love yourselfAssessing the quality of reported earnings using cash flow data. Prior to the dominance of Netflix, Blockbuster was the leading movie rental company in the U.S. In 1989, Lee J. Seidler, a senior analyst with Bear Stearns & Co., issued a research report critical of Blockbuster’s earnings. Mr. Seidler observed that although Blockbuster’s 1988 net income was $15.5 million and its cash flow from operating activities was $48.4 million, his review of the firm’s cash flow data revealed that Blockbuster’s purchases of new videocassette rental inventory had been classified as an "investing activity" rather than as "operating activity" on the company’s statement of cash flows. Presented below is selected financial statement for Blockbuster (in millions of dollars): Blockbuster Cash Flow 1988 1987 Net Income $15.5 $4.09 Cash Flow from Operations 48.3 10.3 Purchases of videocassettes rental inventory (51.3) (14.3) Do you agree with Blockbuster’s decision to classify its videocassette inventory purchases as an "investing activity"? Why or Why not? How does Blockbuster’s cash flow classification of its video inventory purchases affect its cash flow from operations? In general, discuss how the statement of cash flow data can be used to help evaluate a company’s reported earnings?
Answers
Answer:
Follows are the solution to this question:
Explanation:
In 1988 blockbusters generated by operational cash flow exceeding $3 for each and every dollar of sales, which is defined in the below table:
1988 1987
[tex]\left\begin{array}{ccc} \text{cash flow from opeations(a)}&\$ \ 48.30 & 10.30 \\\text{net income(b)} &\$ \ 15.50 &4.09 \\ratio( \frac{a}{b}) &\$ \ 3.12 &2.52\end{array}\right[/tex]
So, Mr. Seidler 's problem will be whether the cashflow for vidoe rentals will be reported throughout the operating activities or Whether investment.
For the cash flow of such a behavioral pattern blockbuster, its ratio indicates also that blockbuster lost $0.19 for its net revenues reported by looks of mr. seidler in 1988 to each dollar in cash, as blockbuster was its world's largest video shop chain, getting its key sales from of the movie streaming of its operations.
1988 1987
[tex]\left\begin{array}{ccc} \text{cash flow from opeations(as report)}&\$ \ 48.30 & 10.30 \\\text{less:videocasette purchases} &\$ \ 15.30 &4.09 \\Cash \ flow &\$ \ 3.00 &4.00\end{array}\right[/tex]
[tex]\left\begin{array}{ccc} \text{cash flow from opeations(a)}&\$ \ 3.00 & 4.00 \\\text{net income(b)} &\$ \ 15.50 &4.09 \\ratio( \frac{a}{b}) &\$ \ 0.19 &0.98\end{array}\right[/tex]
It rate means which, Business retains stores since video cassettes have relatively low economic lives as the operational cash flow is much more consistent with the expected existence-generating sales of the asset.
Explain how integrity affects different stakeholder groups
Answers
Operating a business with integrity will make customers feel safe and secure. They won't feel taken advantage of and they'll want to keep giving you their business time and time again. They'll recommend you to others and become your greatest advocates. Attracting employees with integrity.
Duerr Company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is:
Answers
Answer:
The maturity value is "$79790".
Explanation:
The given values are:
Principal
= $79,000
Time
= 30/360
Rate
= 12%
The interest on the cash loan to Ryan and Co will be:
= [tex]79000\times 12 \ percent\times \frac{30}{360}[/tex]
= [tex]790[/tex] ($)
Maturity value
= [tex]Principal\times (1+rate\times time)[/tex]
= [tex]79000\times (1+(12 \ percent\times \frac{30}{360} )[/tex]
= [tex]79000\times 1.0100[/tex]
= [tex]79790[/tex]
The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $200,000 in setting up a production plant. He believes that he could sell his patent for $50 million. a. What is the book value of the firm? (Enter your answer in dollars.) b. What is the market value of the firm? (Enter your answer in dollars not in millions.) c. If there are 2 million shares of stock in the new corporation, what is the book value per share? (Round your answer to 2 decimal places.) d. What is the price per share? (Round your answer to 2 decimal places.)
Answers
Answer:
(A) $200,000
(B) $50,200,000
(C) $0.10 per share
(D) $25.10 per share
Explanation:
(A) The book value of the firm is $200,000
(B) The market value of the firm can be calculated as follows
= $200,000 + 50,000,000
= $50,200,000
(C) The book value per share can be calculated as follows
= 200,000/2,000,000
= $0.10 per share
(D) The price per share can be calculated as follows
= 50,200,000/2,000,000
= $25.10 per share
Suppose that each week Fiona buys 16 peaches and 4 apples at her local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:
multiple choice
The law of diminishing marginal utility does not hold for Fiona.
Fiona is not maximizing her utility.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be greater than her marginal utility from the 4th apple she buys.
Answers
If Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that C. If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.
What is marginal utility?Marginal utility describes the benefit derived from the consumption of one additional unit of a product or service.
The marginal utility can be computed using this formula:
Marginal utility = total utility difference/quantity of goods difference.
This means that marginal utility is equal to the change in total utility divided by the change in the number of goods consumed.
Thus, if Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that Option C is correct.
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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:
Home Work
Direct materials cost per unit $38 $72
Direct labor cost per unit 23 40
Sales price per unit 359 573
Expected production per month 620 units 490 units
Harbour has monthly overhead of $180,660, which is divided into the following cost pools:
Setup costs $80,840
Quality control 68,620
Maintenance 31,200
Total $180,660
The company has also compiled the following information about the chosen cost drivers:
Home Work Total
Number of setups 41 53 94
Number of inspections 320 410 730
Number of machine hours 1,200 1,400 2,600
Required:
a. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.
b. Calculate the production cost per unit for each of Harbour's products under a traditional costing system.
c. Calculate Harbour's gross margin per unit for each product under the traditional costing system.
Answers
Answer:
Instructions are below.
Explanation:
a)
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 180,660/2,600
Predetermined manufacturing overhead rate= $69.49 per machine hour
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Home= 69.49*1,200= $83,388
Work= 69.49*1,400= $97,286
b) We need to determine the unitary cost for each product:
Home:
Unitary cost= 38 + 23 + (83,388/620)= $195.50
Work:
Unitary cost= 72 + 40 + (97,286/490)= $310.54
c) Gross margin= selling price - unitary cost
Home:
Gross margin= 359 - 195.5= $163.4
Work:
Gross margin= 573 - 310.54= $262.46
Flounder Corp. uses a periodic inventory system and reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 100 $5 $ 500 12 Purchases 385 6 2,310 23 Purchases 200 7 1,400 30 Inventory 230 Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $enter a weighted-average unit cost in dollars eTextbook and Media Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost The cost of the ending inventory $enter a dollar amount $enter a dollar amount $enter a dollar amount The cost of goods sold $enter a dollar amount $enter a dollar amount $enter a dollar amount
Answers
Answer:
Flounder Corp.
Weighted Average FIFO LIFO
Ending Inventory $1,414 $1,580 $1,280
Cost of goods sold $2,796 $2,630 $2,930
Explanation:
a) Data and Calculations:
Date Explanation Units Unit Cost Total Cost
June 1 Inventory 100 $5 $ 500
June 12 Purchases 385 6 2,310
June 23 Purchases 200 7 1,400
Total units 685 $ 4,210
June 30 Inventory 230
June 30 Units Sold 455 (685 - 230)
Weighted Average Cost = Total costs/Total units bought
= $4,210/685 = $6.146
Weighted Average:
Ending Inventory = $1,414 ($6.146 * 230)
Cost of goods sold = $2,796 ($6.146 * 455)
FIFO:
Ending Inventory = (30 * $6) + (200 * $7) = $1,580
Cost of goods sold = (100 * $5) + (355 * $6) = $2,630
LIFO:
Ending Inventory = (100 * $5) + (130 * $6) = $1,280
Cost of goods sold = (200 * $7) + (255 * $6) = $2,930
The weighted average method is based on an average cost for estimating the cost of ending inventory and cost of goods sold. The FIFO method assumes that goods bought initially are the first to be sold while the LIFO method assumes that goods bought last are the first to be sold.
Tookies Tacos’ next annual dividend will be $4.26 a share and all later dividends are expected to increase by 4.4 percent annually. What is the rate of return if this stock is currently selling for $48.74 a share?
Answers
The rate of return if this stock is currently selling for $48.74 a share is 13.14%.
Rate of returnUsing this formula
Rate of return=(Annual dividend/Stock current price)+Expected rate
Let plug in the formula
Rate of return= ($4.26/$48.74) + .044
Rate of return=0.0874+0.044
Rate of return=0.1314×100
Rate of return=13.14%
Inconclusion the rate of return if this stock is currently selling for $48.74 a share is 13.14%.
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A self-driving car designer and a luxury automobile company partner together to develop a luxury, fully autonomous vehicle. By joining together, these companies can
Answers
The joining together of the self-driving car designer and a luxury automobile company can result in profit maximization.
What is profit maximization?It should be noted that profit maximization simply means the process that's important to bring about the highest level of profit in a company.
In this case, the joining together of the self-driving car designer and a luxury automobile company can result in profit maximization and improvement in sales.
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Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2018 (the end of its fiscal year). Wildhorse Co. Trial balance December 31, 2018
Debit Credit
Cash $8,200
Accounts Receivable 14,800
Supplies 13,300
Prepaid Rent 1,600
Equipment 19,200
Accounts Payable $15,900
Common Stock 31,000
Retained Earnings 10,200
$57,100 $57,100
Summarized transactions for January 2019 were as follows.
1. Advertising costs, paid in cash, $1,160.
2. Additional supplies acquired on account $4,460.
3. Miscellaneous expenses, paid in cash, $2,180.
4. Cash collected from customers in payment of accounts receivable $12,130.
5. Cash paid to creditors for accounts payable due $12,570.
6. Repair services performed during January: for cash $6,860; on account $9,040.
7. Wages for January, paid in cash, $2,500.
8. Dividends during January were $2,520.
Required:
a. Post the journal entries to the accounts in the ledger.
b. Prepare a trial balance as of January 31, 2019.
Answers
Answer:
a)
1. Advertising costs, paid in cash, $1,160.
Dr Advertising expense 1,160
Cr Cash 1,160
2. Additional supplies acquired on account $4,460.
Dr Supplies 4,460
Cr Accounts payable 4,460
3. Miscellaneous expenses, paid in cash, $2,180.
Dr Miscellaneous expenses 2,180
Cr Cash 2,180
4. Cash collected from customers in payment of accounts receivable $12,130.
Dr Cash 12,130
Cr Accounts receivable 12,130
5. Cash paid to creditors for accounts payable due $12,570.
Dr Accounts payable 12,750
Cr Cash 12,750
6. Repair services performed during January: for cash $6,860; on account $9,040.
Dr Cash 6,860
Dr Accounts receivable 9,040
Cr Service revenue 15,900
7. Wages for January, paid in cash, $2,500.
Dr Wages expense 2,500
Cr Cash 2,500
8. Dividends during January were $2,520.
Dr Dividends 2,520
Cr Cash 2,520
b)
Debit Credit
Cash $6,080
Accounts Receivable $11,710
Supplies $17,760
Prepaid Rent $1,600
Equipment $19,200
Accounts Payable $7,610
Common Stock $31,000
Retained Earnings $10,200
Service revenue $15,900
Advertising expense $1,160
Miscellaneous expenses $2,180
Wages expense $2,500
Dividends $2,520
TOTALS $64,710 $64,710