Assume that "cost of processing" includes all labor and materials, including the owner's wages. Assume further that Isabel's family signed a long-term contract (20 years) with a service company to keep the machines in good repair for a fixed fee of $3 comma 650 per year, or $10 per day. Derive the firm's total cost curve. 1.) Using the multipoint curved line drawing tool, draw the total cost curve. Properly label your curve.
Answers
Answer:
Check the explanation
Explanation:
In the field of economics, to draw a graph that will show a cost curve of any item will involve the costs of production as a function of the overall quantity that was produced. When there’s a free market economy, productively effective and efficient firms optimize their production procedures by reducing their cost consistent with each potential level of production, thereby resulting into a cost curve.
Kindly check the attached images below to see the full explanation and the graphical presentation of the total cost curve.
Related Questions
Suppose that the demand curve for wheat is Upper Q equals 120 minus 10 p and the supply curve is Upper Q equals 10 p. The government imposes a price ceiling of p overbar equals $ 4 per unit. a. How do the equilibrium price and quantity change? (round quantities to the nearest integer and round prices to the nearest penny) The equilibrium quantity without the price ceiling is nothing and the price without the price ceiling is $ nothing. The equilibrium quantity with the price ceiling is nothing.
Answers
Answer:
$6; 60 units
40 units
Explanation:
Given that,
Demand curve: Q = 120 - 10P
Supply curve: Q = 10P
Government imposes a price ceiling = $4 per unit
Without price ceiling,
At equilibrium,
Supply = Demand
10P = 120 - 10P
20P = 120
P = $6 (equilibrium price)
Equilibrium quantity = 120 - (10 × 6)
= 120 - 60
= 60 units
With price ceiling of $4 per unit,
Equilibrium quantity:
= 10P
= 10 × 4
= 40 units
Screen Perfect Inc., and TV Stores enter into a contract for a sale of high-definition television sets. Screen Perfect ships goods that do not exactly conform to the contract in some details. TV Stores a. cannot reject the entire shipment c. must accept the entire shipment b. can reject the entire shipment d. must reject the entire shipment
Answers
Answer: b. can reject the entire shipment
Explanation: TV Stores can reject the entire shipment if the goods received from Screen Perfect Inc. do not conform exactly to the terms of the contract in some details. Under the perfect tender rule, Screen Perfect Inc. must ship or tender goods to TV Stores that exactly conform to the contract in every detail. The rule refers to the legal right for a buyer of a good to insist upon "perfect tender" in terms of quality, quantity, and manner of delivery by the seller.
Craydye Corporation manufactures a part for its production cycle. The costs per unit for 8,000 units of this part are as follows: Direct materials $ 24 Direct labor 42 Variable overhead 15 Fixed overhead 25 Total $106 Zinkyl Company has offered to sell Craydye Corporation 8,000 units of the part for $120 per unit. If Craydye Corporation accepts Zinkyl Company's offer, total fixed overhead will be reduced by $40,000. What alternative is more desirable and by what amount is it more desirable
Answers
Answer:
Make; $72,000
Working:
Make ($106*8000) 848,000
Buy [($120*8000 - 40,000)] 920,000
Make increases profits by 72,000
Answer: Please refer to Explanation
Explanation:
Craydye Corporation Cost of Making it themselves
=Total Cost * No. of units
= $106 * 8,000
= $848,000
Craydye Corporation Cost of buying from Zinkyl Company
= Purchase price * No. of units - Fixed cost reduction
= 120 * 8,000 - 40,000
= $920,000
=920,000 - 848,000
= $72,000
Craydye Corporation Making it themselves themslves is more desirable by a cost reduction of $72,000
Fosnight Enterprises prepared the following sales budget: The expected gross profit rate is 30% and the inventory at the end of February was $10,000. Desired inventory levels at the end of the month are 20% of the next month's cost of goods sold. What is the desired beginning inventory on June 1?
Answers
Final answer:
Since the sales figures for June and July aren't provided, we can't calculate the desired beginning inventory for June 1. Instead, we review the calculation of accounting profit, which is $50,000 in the example provided.
Explanation:
The desired beginning inventory on June 1 is the amount of inventory that Fosnight Enterprises wants to have at the start of the month to meet the planned sales for June, while maintaining a certain percentage of the next month's cost of goods sold as ending inventory for June. Since we do not have the actual sales figures for June and July, we cannot calculate this figure. However, we can discuss a related accounting concept using the provided self-check question.
The self-check question asks for the calculation of a firm's accounting profit, which is defined as total revenues minus explicit costs. In the given example, the firm had sales revenue of $1 million, and it spent $600,000 on labor, $150,000 on capital, and $200,000 on materials. The accounting profit would therefore be $1,000,000 (total revenues) - ($600,000 (labor) + $150,000 (capital) + $200,000 (materials)) = $50,000.
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $728,850 are allocated on the basis of machine hours. The Accounting Department's costs of $148,800 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $280,000 and $480,000, respectively. Maint Acctg A B Machine hours 495 115 3,000 390 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method
Answers
Answer:
The correct answer is $645,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the Maintenance Department's cost allocated to Department A using the direct method are as follows:
Cost allocated = Maintenance Department's costs × Machine hours of Dept. A ÷ ( Machine hours of Dept. A + Machine hours of Dept. B )
By putting the value, we get
Cost Allocated = $728,850 × 3,000 ÷ ( 3,000 + 390)
= $728,850 × 3,000 ÷ 3,390
= $645,000
Department A is allocated $546,637.50 of the Maintenance Department's costs using the direct method. This is calculated by determining the portion of machine hours that Department A uses out of total machine hours, and applying this percentage to the total Maintenance Department's costs.
Explanation:To calculate the Maintenance Department's cost allocated to Department A using the direct method, we first need to determine the total machine hours that the Maintenance Department serves. This is done by adding up the machine hours of all the departments, which are 495 for Maintenance, 115 for Accounting, 3,000 for Department A, and 390 for Department B. Therefore, the total machine hours are 4,000.
Next, we determine the proportion of machine hours that Department A uses, which is its machine hours (3,000) divided by the total machine hours (4,000). The calculation is 3,000 / 4,000 = 0.75 or 75%.
Finally, we multiply the total Maintenance Department's costs ($728,850) by 75% to find how much is allocated to Department A. The calculation is $728,850 * 0.75 = $546,637.50.
Therefore, Department A is allocated $546,637.50 of the Maintenance Department's costs using the direct method.
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Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more levered. Both companies will remain in business for one more year. The companies' economists agree that the probability of the continuation of the current expansion is 70 percent for the next year, and the probability of a recession is 30 percent. If the expansion continues, each firm will generate earnings before interest and taxes (EBIT) of $4.6 million. If a recession occurs, each firm will generate earnings before interest and taxes (EBIT) of $1.4 million. Steinberg's debt obligation requires the firm to pay $1,000,000 at the end of the year. Dietrich's debt obligation requires the firm to pay $1.5 million at the end of the year. Neither firm pays taxes. Assume a discount rate of 12 percent. What are the current market values of Steinberg's equity and debt? What are the current market values of Dietrich's equity and debt? Steinberg's CEO recently stated that Steinberg's value should be higher than Dietrich's because the firm has less debt, and, therefore, less bankruptcy risk. Do you agree or disagree with this statement?
Answers
Answer: kindly see Explanation.
Explanation:
STEINBERG Expansion Recession
Probability 70% 30%
EBIT 4,600,000 1,400,000
Payoff (bond) 1,000,000 1,000,000
Payoff(stock) 3,600,000 400,000
DIETRICH Expansion Recession
Probability 70% 30%
EBIT 4,600,000 1,400,000
Payoff (bond) 1,500,000 1,500,000
Payoff(stock) 3,100,000 (100,000)
Discount rate = 12%
Steinberg potential payoffs:
Equity = (0.7 × 3,600,000 + 0.3 × 400,000)/1.12 = 2357142
Debt = (0.7 × 1,000,000 + 0.3 × 1,000,000)/1.12 = 892857.14
Dietrich potential payoffs:
Equity = (0.7 × 3,100,000 + 0.3 × - 100,000)/1.12 = 1910714
Debt = (0.7 × 1,500,000 + 0.3 × 1,500,000)/1.12 = 1339285
B.) STEINBERG
DEBT + Equity = 2357142+892857 = $3249999
DIETRICH
DEBT + Equity = 1910714+1339285 = $3249999
Due to the identical nature of the two EBITs, it shows a redistribution of wealth between the stock and bond holders.
A produce distributor uses 790 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 39 percent of the purchase price per crate. Ordering costs are $31. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ?
Answers
Answer:
$398.48
Explanation:
For calculating the saving amount, first need to calculate the economic order quantity, total cost etc
The economic order quantity is
[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Annual demand is
= 790 packaging crates × 12 months
= 9,480 crates
And, the carrying cost is
= $10 × 39%
= $3.90
[tex]= \sqrt{\frac{2\times \text{9,480}\times \text{\$31}}{\text{\$3.90}}}[/tex]
= 388 units
Now the total cost is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,480 ÷ 388 × $31 + 388 ÷ 2 × $3.90
= $757.42 + $756.60
= $1,514.02
Now the total cost in case of 790 packing crates is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,480 ÷ 790 × $31 + 790 ÷ 2 × $3.90
= $372 + $1,540.50
= $1,912.50
Therefore, the annual saving cost is
= $1,912.50 - $1,514.02
= $398.48
C. Explain why the company was able to issue the bonds for only $9,738,256 rather than for the face amount of $11,000,000. The bonds sell for less than their face amount because the market rate of interest is greater than the contract rate of interest. Investors Are not willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds (market rate).
Answers
Answer:
The bonds sell for less than their face amount because the market rate of interest is greater than the contract rate of interest. Investors Are not willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds (market rate).
Explanation:
When the required rate of return of investors is higher than the coupon rate of the bond, It means the investors have option in the market which offer more rate of return than the coupon rate offered by the bond, So the value of the bond falls which ultimately compensate the difference of investors required rate of return and Coupon rate.
Douglass Interiors is considering two mutually exclusive projects and have determined that the crossover rate for these projects is 11.7 percent. Project A has an internal rate of return (IRR) of 15.3 percent and Project B has an IRR of 16.5 percent. Given this information, which one of the following statements is correct?I. Project A should be accepted as its IRR is closer to the crossover point than is Project B's IRR.II. Project B should be accepted as it has the higher IRR.III. Both projects should be accepted as both of the project's IRRs exceed the crossover rate.IV. Neither project should be accepted since both of the project's IRRs exceed the crossover rate.V. You cannot determine which project should be accepted given the information provided.
Answers
Answer:
V) You cannot determine which project should be accepted given the information provided.
Explanation:
The best way to determine which project to accept or reject is the net present value (NPV) and we do not have enough information to calculate it. Both projects have positive internal rates of return (IRR), but does any of them have a positive NPV? We cannot tell, so it is not possible to choose one or the other.
Final answer:
The correct statement is that Project B should be accepted because it has a higher internal rate of return (IRR) than Project A, which is indicative of greater economic desirability. The correct statement is II.
Explanation:
The crossover rate for Douglass Interiors projects is 11.7 percent, which is the discount rate at which both projects would have the same net present value (NPV). Since Project A has an internal rate of return (IRR) of 15.3 percent and Project B has an IRR of 16.5 percent, both projects have IRRs that exceed the crossover rate. This indicates that, depending on the discount rate, each project could be more attractive at different times. However, the decision to choose between two mutually exclusive projects shouldn't rely solely on the IRR if their IRRs are above the crossover rate. Instead, additional investment appraisal methods such as NPV should be considered to determine which project would add the most value over time.
Based on the IRR method, Project B should be accepted as it has the higher IRR compared to Project A. Statement II is correct because the IRR is a measure of the project's rate of return, and since Project B has a higher IRR, it is considered more economically desirable assuming that the IRR correctly ranks the projects and there are no other conflicting criteria for decision making.
CC’s is analyzing a proposed project with anticipated sales of 3,620 units, give or take 5 percent at a sales price of $24, plus or minus 2 percent.. The variable cost per unit is $14.60, plus or minus 4 percent, and the fixed costs are $12,900, plus or minus 1 percent. The depreciation expense is $8,100. If the company conducts a sensitivity analysis using a variable cost of $16, the total variable cost estimate will be:
Answers
Answer:
The total variable cost will be $ 16 * 3620= $ 57920
Explanation:
CC
Analyzing Proposed Project
Given 1 2 3
Variable Increase ---- 10% 9.125% 9.125%
Fixed Decreased 6.97%
Sales price per unit $24 $24 $24 $24
Variable price per unit $ 14.6 $16.06 $ 16 $ 16
Fixed Costs $ 12900 12900 $ 12900 $ 12000
Sales Volume 3620 3620 3620 3620
We have taken the sale prices constant and changed the variable costs and fixed costs.
CC
Sensitivity Analysis Report
Given 1 2 3
Sales 86880 86880 86880 86880
Variable Costs 52852 58137.2 57920 57920
Contribution Margin 34028 28742.8 28960 28960
Fixed Costs 12900 12900 12900 12000
Operating Profit 21128 15482.8 16060 16960
Dollar Change in
Variable Expenses 5645.2 5068 5068
The total variable cost will be $ 16 * 3620= $ 57920
You have just used the network planning model for a county road resurfacing project and found the critical path length is 40 days and the standard deviation of the critical path is 10 days. Suppose you want to pick a time (in days) within which you will complete the project with 90% confidence level, what should be that time (in days and round to the nearest whole number.)
A. 40B. 13C. 45D. 29E. 53
Answers
Answer: E.53
Explanation:
From the above information, the formula for due date is given below.
DUE DATE = Expected Completion Time + (Z * Standard Deviation)
A confidence level refers to the percentage of all possible samples that can be expected to contain the true population parameter. It is computed according to a random sample from the population and most times always associated with a certain confidence level that is a probability, usually presented as a percentage. The 90% says that 90% will include the true mean but 10% won't.
A Z-score is referred to as a numerical measurement that is made use of in statistics of a value's relationship to the mean (that is average) of a group of values, measured in terms of standard deviations away from the mean.
Expected time = 40
Confidence interval = 90 = Z VALUE of 1.282
Standard Deviation= 10
DUE DATE = 40 + (1.282 * 10) = 53days
= 40+ 12.82
=52.82
Approximately 53
Therefore,the time in days is 53 days.
Answer:
E- 53
Explanation:
FORMULA:
DUE DATE = EXPECTED COMPLETION TIME + (Z * STDEV)
Expected time = 40
CONFIDENCE INTERVAL = 90 = Z VALUE OF 1.282
STANDARD DEVIATION = 10
DUE DATE = 40 + (1.282 * 10) = 53
All problems related to decision making under uncertainty have three common elements: Group of answer choices
A) The mean, median, and mode.
B) The set of decisions, the cost of each decision, and the profit that can be made from each decision.
C) The set of possible outcomes, the set of decision variables, and the constraints.
D) The set of decisions, the set of possible outcomes, and a value model that prescribes results.
E) The statement of the problem, a graphical representation of the problem, and a recommendation.
Answers
Answer:
D) The set of decisions, the set of possible outcomes, and a value model that prescribes results.
Explanation:
Problem solving involves use of various methods to find solutions to problems faced by individuals and organisations.
It involves generation of ideas or decisions that can resolve the problem.
These ideas are now analysed to see how viable they are, can they be implemented, and what is the possible outcome.
The valid ideas are now used to create a value model that can effectively bring results.
Star Studios is looking to purchase a new building for its upcoming film productions. The company finds a suitable location that has a list price of $1,460,000. The seller gives Star Studios the following purchase options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)
Pay $1,460,000 immediately.
Pay $460,000 immediately and then pay $136,000 each year over the next 10 years, with the first payment due in one year.
Make 10 annual installments of $180,000, with the first payment due in one year.
Make a single payment of $2,160,000 at the end of five years.
Determine the present value for each option assuming that the company can borrow funds to finance the purchase at 6%.
Answers
Star Studios is evaluating different payment options for a building purchase using a discount rate of 6%. Each option's present value is calculated using relevant present value formulas. The company will then compare these present values to determine the most cost-effective payment option.
Explanation:To determine the present value (PV) for each purchase option provided to Star Studios by the seller, we need to use the present value formulas and apply the discount rate of 6%. We'll handle each option separately.
Option 1: Immediate payment of $1,460,000. The present value is simply the payment amount, as it is already in today's dollars, which is $1,460,000.
Option 2: Immediate payment of $460,000 and $136,000 annually for 10 years. We use the present value of an annuity formula to calculate the present value of the ten annual payments and add the immediate payment of $460,000 to this result to find the total present value.
Option 3: Ten annual installments of $180,000. The present value of an annuity formula is also used here to find the present value of the series of equal payments.
Option 4: A single future payment of $2,160,000 at the end of five years. We apply the present value of a single sum formula to discount the future payment back to the present value.
To compare the options fairly, Star Studios must calculate and then compare each option's present value to determine which is the most cost-effective choice, given their borrowing rate of 6%.
Consider a simultaneous move game between a union and a company. If both the parties bargain hard, cach would gain nothing. If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million, while if they both accommodate, they each get $3 million. What would be the Nash equilibrium of this game? Oa Bargain hard, bargain hard Ob. Firm bargains hard, union accommodates OC. Union bargains hard, firm accommodates Od Both B&C
Answers
Answer:
d. Both B&C
Explanation:
The Nash equilibrium can be described as a stable condition relating to the interaction of different players whereby a unilateral change in the strategy of a player will result in no gain for the any of the players.
Since bargaining hard by both parties in the will result in no gain for both parties, the the Nash equilibrium of this game would therefore for either of one of the two parties to bargain hard and the other to accommodate.
Therefore, option "d. Both B&C" is the correct answer.
When comparing levered vs. unlevered capital structures, leverage works to increase EPS for high levels of operating income because interest payments on the debt (a) vary with EBIT levels. (b) stay fixed, leaving less income to be distributed over fewer shares. (c) stay fixed, leaving less income to be distributed over more shares. (d) stay fixed, leaving more income to be distributed over fewer shares. (e) decrease, leaving more income to be distributed over fewer shares
Answers
Answer:
The answer is D.
Explanation:
Unlevered capital structure is the one where there is no debt in the company, the company is completely financed by using equity. While levered capital structure involves the combination of both debt and equity in the company.
For a company, debt is an effective tool to raise funds for expansion without diluting or reducing ownership control by adding more shareholders.
Interest payment on debt is usually fixed.
Going for leverage does not increase the number of shares and Earnings Per Share(EPS) will be higher because earnings or income will be distributed to fewer shareholders unlike unlevered capital structure that tends to add to the number of shares thereby lowering EPS because earnings will be distributed to larger shareholders.
Darnell has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Vicky, whom Darnell has wanted to date for a long time, asks him to a concert. Darnell would prefer to go to the concert with Vicky and forgo the play, but he doesn't want to waste the $50 he spent on the play ticket.
From the perspective of an economist, if Darnell decides to go to the party with Vicky, what has he just done?
a. Incorrectly allowed a sunk cost to influence his decision
b. Made a choice that was not optimal
c. Correctly ignored a sunk cost
Answers
Answer:
c. Correctly ignored a sunk cost
Explanation:
The $50 he spent on the ticket is a sunk cost. Independently of his decision (go to the play or go with Vicky), the cost is already done.
He decide to go to the concert beacuse he prefers it than go to the play. He maximizes his utility, as he would not recover the $50 in any way. In the utility calculation, the sunk cost has no influence.
He has correctly ignored a sunk cost, not letting it to influence in his decision.
Hawkeye Auto Parts uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $66,000 and $111,000, net purchases at cost and retail were $796,000 and $1,311,000, and sales during the first six months totaled $811,000. The estimated inventory at June 30, 2021, would be:
Answers
Answer:
$372,710
Explanation:
For determining the ending inventory first we need to do following computations which are given below:
As per cost method
Goods available for sale
= Beginning inventory + Net Purchase for the year
= $66,000 + $796,000
= $862,000
Under Retail method
Goods available for sale:
= Beginning inventory + Net Purchases for the year
= $111,000 + $1,311,000
= $1,422,000
Now
Cost to retail ratio is
= $862,000 ÷ $1,422,000
= 61%
And, Estimated ending inventory as per retail
= Goods available for sale at Retail - Net sales
= $1,422,000 - $811,000
= $611,000
Therefore, Estimated ending inventory as per cost is
= Estimated ending inventory at retail × Cost to retail ratio
= $611,000 × 0.61
= $372,710
copyright: Multiple Choice Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years. Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 17 years. Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 50 years. Is the amount by which the value of a company exceeds the fair market value of a company's net assets if purchased separately. Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 17 years.
Answers
Answer:
Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years.
Explanation:
The copyright is an exclusive right given to a creator to publish and reap the economic benefits from his work, for 70 years.
Copyright to create works such as literary books, music albums, films, animated media, and so on.
During this 70 years, anyone who would like to reproduce the creative work, has to pay copyright to the creator. After the period of 70 years, the copyright expires, and the work enters the public domain, which means that it is not necessary to pay copyright anymore to reproduce the works.
The Southern Division manager of Texcaliber Inc. is growing concerned that the division will not be able to meet its current period income objectives. The division uses absorption costing for internal profit reporting and had an appropriate level of inventory at the beginning of the period. The division manager knows that he can boost profits by increasing production at the end of the period. The increased production will allocate fixed costs over a greater number of units, reducing cost of goods sold and increasing earnings. Unfortunately, it is unlikely that additional production will be sold, resulting in a large ending inventory balance. The division manager has come to Aston Melon, the divisional controller, to determine exactly how much additional production is needed to increase net income enough to meet the division's profit objectives. Aston analyzes the data and determines that the division will need to increase inventory by 30% in order to absorb enough fixed costs to meet the division's income objective. Aston reports this information to the division manager. Is Aston acting ethically?
Answers
Answer:
Aston has given the information required to meet division profit objective. Increasing the profit objective is common goal of every manager. Here manager wanted to meet profit objective by minimising fixed cost which is not wrong motive. Whether the excess production can be sold in the market. If there is a chance to sell, more production can be made.
Absorption costing means that all of manufacturing costs are absorbed by units produced. It calculates every cost on no. of units produced but it does not mean to increase production only in order to match income objective or to reach this goal instead of fact that inventory remains at end, and sale of that increased production does not take place and income objective met because of the lower cost per unit.
Aston's decision to increase production for absorbing more fixed costs to boost reported profits may not be considered ethically sound in business sense as it might create a misleading image of the division's performance and it doesn’t reflect operational efficiency improvements.
Explanation:In the context of business ethics, it can be argued that Aston isn't acting ethically. While increased production to absorb more fixed costs can increase reported profits under absorption costing, it is essentially an accounting maneuver, not necessarily reflecting an improvement in operational efficiency or profitability. It's also important to note that the increased inventory could lead to potential storage costs and the risk of obsolescence if not sold within an appropriate timeframe, therefore creating a potentially misleading image of the division's economic performance.
Ethics in Accounting
For Aston as a controller, his responsibility should extend beyond just meeting current period income objectives. He should also consider the long-term financial picture and be transparent about the financial health and performance of the division. Carrying out a strategy that potentially misrepresents the division's true operational performance could arguably be seen as unethical.
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Gubser Welding, Inc., operates a welding service for construction and automotive repair jobs. Assume that the arrival of jobs at the company's office can be described by a Poisson probability distribution with an arrival rate of two jobs per 8-hour day. The time required to complete the jobs follows a normal probability distribution, with a mean time of 3.2 hours and a standard deviation of 2 hours. Answer the following questions, assuming that Gubser uses one welder to complete all jobs:
What is the mean arrival rate in jobs per hour? Round your answer to four decimal places.
jobs per hour
What is the mean service rate in jobs per hour? Round your answer to four decimal places.
jobs per hour
What is the average number of jobs waiting for service? Round your answer to three decimal places.
What is the average time a job waits before the welder can begin working on it? Round your answer to one decimal place.
hours
What is the average number of hours between when a job is received and when it is completed? Round your answer to one decimal place.
hours
What percentage of the time is Gubser's welder busy? Round your answer to the nearest whole number.
Answers
Answer:
Mean arrival rate = 0.25 job per hour
Mean service rate = 0.3125 job per hour
Average number of job = 1.85
Average time taken = 7.4 hour
Average number of hours a job received and completed = 10.6 hours
Gubser's welder busy percentage of time = 80%
Explanation:
As per the data given in the question,
Mean arrival rate = 2 ÷ 8 = 0.25 job per hour
Mean service rate = 1 ÷ 3.2 = 0.3125 job per hour
Average number of job = (Mean arrival rate^2 × Standard deviation^2 + (mean arrival rate ÷ mean service rate)^2) ÷ 2(1 - (mean arrival rate ÷ mean service rate)^2)
= (0.25^2 × 2^2 + (0.25 ÷ 0.3125)^2) ÷ 2(1-(0.25 ÷ 0.3125))
= 0.25 + 1.60
= 1.85
Average time taken by job waiting = Average number of job waiting ÷ Mean arrival rate
= 1.85 ÷ 0.25
= 7.4 hours
Average number of hours a job received and completed = Average time taken by job waiting + 1 ÷ Mean service rate
= 7.4 + 1 ÷ 0.3125
= 10.6 hours
Gubser's welder busy percentage of time = Mean arrival rate ÷ Mean service rate
= 0.25 ÷ 0.3125
= 0.80
= 80%
The mean arrival rate in jobs per hour at Gubser Welding, Inc., is 0.25, while the mean service rate is 0.3125 jobs per hour. The other questions related to queuing theory, such as the average number of jobs waiting or the percentage of time the welder is busy, require more complex calculations that cannot be determined with the given information alone.
Explanation:To calculate the mean arrival rate in jobs per hour for Gubser Welding, Inc., we divide the total number of jobs by the number of hours in the workday. With an arrival rate of two jobs per 8-hour day, we find that:
Mean arrival rate = Total jobs / Total hours = 2 jobs / 8 hours = 0.25 jobs per hour.
To find the mean service rate in jobs per hour, which is how many jobs the welder can complete per hour, we use the inverse of the mean time to complete one job:
Mean service rate = 1 / Mean time per job = 1 / 3.2 hours = 0.3125 jobs per hour.
The average number of jobs waiting for service and the average time a job waits before the welder can begin working on it can be computed through queuing theory formulas, which typically require more advanced calculations and software. In this case, given only the arrival and service rates, we cannot complete these calculations properly without further information or assumptions regarding the queue discipline, system capacity, or the number of servers (welders).
Similarly, the average number of hours between when a job is received and when it is completed, and the percentage of time the welder is busy, also depend on specific queuing theory calculations.
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Prepare a schedule in good form showing the required additions to the sinking fund, the expected semiannual earnings, and the end-of-period balance in the sinking fund for each of the 10 semiannual periods. (Note: The future amount of an ordinary annuity of $1 for 10 periods at 3 percent per period is 11.46387931.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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Question:
The question is incomplete. Below is the complete question and the answer.
On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issued at par $2,000,000 of 6 percent term bonds to construct a new city office building. The bonds mature in five years on July 1, 2021. Interest is payable semiannually on January 1 and July 1. A sinking fund is to be established with equal semiannual additions made on June 30 and December 31, with the first addition to be made on December 31, 2016. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. City officials assume a yield on sinking fund investments of 6 percent per annum, compounded semiannually. Investment earnings are added to the investment principal.
Prepare a schedule in good form showing the required additions to the sinking fund, the expected semiannual earnings, and the end-of-period balance in the sinking fund for each of the 10 semiannual periods. (Note: The future amount of an ordinary annuity of $1 for 10 periods at 3 percent per period is 11.4638793.)
Explanation:
Fiscal Period Required Expected Ending
Year Additions Earnings Balance
2016 1 $174,461.01 0 $174,461.01
2 $174,461.01 $5,233.83 $354,155.86
2017 3 $174,461.01 $10,624.68 $539,241.55
4 $174,461.01 $16,177.25 $729,879.81
2018 5 $174,461.01 $21,896.39 $926,237.21
6 $174,461.01 $27,787.12 $1,128,485.34
2019 7 $174,461.01 $33,854.56 $1,336,800.92
8 $174,461.01 $40,104.03 $1,551,365.96
2020 9 $174,461.01 $46,540.98 $1,772,367.95
10 $174,461.01 $53,171.04 $2,000,000
The calculation for the above journal is given as;
Required Addition =
Bond value/future amount of ordinary annuity at 3% per period
Required Addition = 2,000,000/11.4638793
= $174,461.01 ( for 10 period)
Expected Earnings = Ending bal. x 3%
= $174,461.01 *3%
= $5,233.83 (for 2017).
Note: For the remaining period, the expected earning is calculated the same way as above.
Ending Balance = Previous ending bal. + Required additions + expected earnings
= $174,461.01 + $174,461.01 + $5,233.83
= $354,155.86 ( for year 2017)
Do same for the remaining years.
At the beginning of September 2018, Sheffield Company reported Inventory of $7800. During the month, the company made purchases of $35000. At September 30, 2018, a physical count of inventory reported $8100 on hand. Cost of goods sold for the month is $35300. $42800. $34700. $35000.
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Answer:
$34,700
Explanation:
Data provided
Beginning inventory = $7,800
Purchase = $35,000
Closing inventory = $8,100
The computation of Cost of goods sold for the month is shown below:-
Cost of goods sold = Beginning inventory + Purchase - Closing inventory
= $7,800 + $35,000 - $8,100
= $42,800 - $8,100
= $34,700
Therefore for computing the cost of goods sold we simply applied the above formula.
A firm that produces wood shutters and bookcases has received two orders for shutters: one for 100 shutters and one for 150 shutters. The 100-unit order is due for delivery at the start of week 4 of the current schedule, and the 150-unit order is due for delivery at the start of week 8. Each shutter consists of two frames and four slatted wood sections. The wood sections are made by the firm, and fabrication takes one week. The frames are ordered, and lead time is two weeks. Assembly of the shutters requires one week.
Determine the size and timing of planned-order releases necessary to meet delivery requirements using Lot-forLot ordering policy.
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Answer:
Since 100 shutters are scheduled to be finished in 3 weeks, you must order the 200 frames immediately so they arrive at the end of 2nd week or beginning of the 3rd week. This way, you can assemble the parts during the 3rd week and have them finished by the beginning of the 4th week when they must be delivered.
The other order, 150 shutters must be finished in 7 weeks, so you can order the 300 frames at the end of the fourth week. This way the frames will be received by the end of the 6th week and the parts assembled during the 7th week.
Lot-for-lot order quantities are carried out for every job order that required them.
Using the lot-for-lot (L4L) ordering policy, the planned-order releases for the 100-unit and 150-unit orders of wood shutters are calculated based on the fabrication and assembly lead times.
Explanation:In this case, the lot-for-lot (L4L) ordering policy means that the firm will order exactly the quantity needed to fulfill each order. As per the given information, the 100-unit order is due in week 4, and the 150-unit order is due in week 8. We need to calculate the timing and size of planned-order releases.
Since each shutter consists of two frames and four slatted wood sections, the firm needs to produce 2 frames and 4 wood sections for each shutter. Fabrication of the wood sections takes one week and frame lead time is two weeks. Assembly of the shutters takes one week.
Using the L4L ordering policy, the planned-order releases will be:
For the 100-unit order due in week 4: Frame order release in week 2, Wood sections fabrication order release in week 3, Assembly order release in week 4.For the 150-unit order due in week 8: Frame order release in week 6, Wood sections fabrication order release in week 7, Assembly order release in week 8.Learn more about Lot-for-lot ordering policy here:https://brainly.com/question/30541105
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Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $47,700 for Division A. Division B had a contribution margin ratio of 35% and its sales were $231,000. Net operating income for the company was $27,200 and traceable fixed expenses were $59,700. Corbel Corporation's common fixed expenses were:
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Answer:
$41,650
Explanation:
Contribution margin is the net of sales and variable costs.
Contribution Margin:
Division A = $47,700
Division B = $231,000 x 35% = $80,850
Company calculates the Net Income after deducting The traceable and common fixed costs from the total contribution margin.
Total contribution margin = $47,700 + $80,850 = $128,550
Net Income = Total contribution margin - Traceable Fixed Expense - Common Fixed expenses
$27,200 = $128,550 - $59,700 - Common Fixed expenses
$27,200 = $68,850 - Common Fixed expenses
Common Fixed expenses = $68,850 - $27,200 = $41,650
Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for 2017 follow. Molding Trimming Direct labor hours 45,000 DLH 48,000 DLH Machine hours 37,500 MH 3,500 MH Overhead costs $ 740,000 $ 610,000 Data for two special order parts to be manufactured by the company in 2017 follow. Part A27C Part X82B Number of units 9,800 units 51,500 units Machine hours Molding 6,200 MH 1,240 MH Trimming 2,400 MH 600 MH Direct labor hours Molding 4,000 DLH 2,150 DLH Trimming 1,100 DLH 5,500 DLH Required 1. Compute the plantwide overhead rate using direct labor hours as the base. 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.
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Answer:
1. $14,52 per direct labor hour
2. Overheads Assigned
Part A27C = $89,367
Part X82B =$95,832
Explanation:
The plantwide overhead rate is the absorption rate calculated on the entity`s to total overheads and total activity.
plantwide overhead rate = Budgeted Overheads / Budgeted Activity
= ($ 740,000 + $ 610,000) / (45,000+48,000)
= $14,52 per direct labor hour
Part A27C
Molding department (4,000× $14,52) = $58,080
Trimming department(2,150× $14,52) = $31,287
Total = $89,367
Part X82B
Molding department (1,100× $14,52) = $ 15,972
Trimming department (5,500× $14,52) = $79,860
Total = $95832
The Ayayai Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 98. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Ayayai Company records straight-line amortization semiannually
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Answer:
Journal entries on January 1:
Dr Cash $254,800
Dr Discount on bonds payable$5200
Cr Bonds payable $260,000
July 1:
Dr Interest expense $13,520
Cr cash $13,000
Cr Discount on bonds payable $520
December 31:
Dr Interest expense $13,520
Cr cash $13,000
Cr Discount on bonds payable $520
Explanation:
The proceeds of issue =$260,000*98%=$254,800
Discount on bonds payable=Par value-cash proceeds
par value is $260,000
Discount on bonds payable=$260,000-$254,800=$5200
The discount amortization on semi-annual basis=$5200 /5*6/12=$520
Semi-annual interest on the bond =$260,000*10%*6/12=$13,000.00
Naylor Company had $154,200 of net income in 2016 when the selling price per unit was $155, the variable costs per unit were $95, and the fixed costs were $572,900. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $61,200 in 2017. Compute the number of units sold in 2016.
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Answer:
Units sold in 2016 = 12118.33
Explanation:
Given that
Net income = 154200
Fixed inputs = 572900
Selling price per unit = 155
Variable cost per unit = 95
Recall that
Net income = total revenue - total expenses
And that
Net income = (selling price - variable cost) × number of goods sold - fixed cost
Thus
154200 = (155 - 95)x - 572900
572900 + 154200 = 60x
727100 = 60x
x = 727100/60
x = 12,118.33 units
Answer:
The number of units sold in 2016 is 12,118 units
Explanation:
Number of units to sold in 2016=fixed costs+target profit/contribution per unit
fixed costs is $572,900
target profit=$154,200
Contribution per unit =selling price per unit -variable cost per unit
selling price per unit is $155
variable cost per unit is $95
contribution per unit=$155-$95
contribution per unit =$60
Number of units sold in 2016=($572,900+$154,200)/$60
number of units sold in 2016=$727,100/$60
number of units sold in 2016= 12,118.33 units
the number of units sold in 2016 is 12,118
Now consider the impact of a third firm entering the market with the same costs, C3(q3) = 80q3. Find the new equilibrium level of each firm’s output and the total market output. What is the market price and each firm’s profits in equilibrium? Briefly explain why these changes are reasonable.
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Answer:Many purchases that individuals make at the retail level are produced in markets that are neither perfectly competitive, monopolies, nor monopolistically competitive. Rather, they are oligopolies. Oligopoly arises when a small number of large firms have all or most of the sales in an industry. Examples of oligopoly abound and include the auto industry, cable television, and commercial air travel. Oligopolistic firms are like cats in a bag. They can either scratch each other to pieces or cuddle up and get comfortable with one another. If oligopolists compete hard, they may end up acting very much like perfect competitors, driving down costs and leading to zero profits for all. If oligopolists collude with each other, they may effectively act like a monopoly and succeed in pushing up prices and earning consistently high levels of profit. Oligopolies are typically characterized by mutual interdependence where various decisions such as output, price, advertising, and so on, depend on the decisions of the other firm(s). Analyzing the choices of oligopolistic firms about pricing and quantity produced involves considering the pros and cons of competition versus collusion at a given point in time.
Explanation:The economic development and growth of the production is proportional to the equivalent fraction of the industry
Ryan, a successful entrepreneur, is planning to get into the petroleum business. He has bought two jack-up rigs running into millions of dollars to start the business. What type of product are these rigs examples of?
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Answer: Installations
Explanation: Setting up installations would help Ryan start up his proposed petroleum business. Installations are defined as things installed or set up, especially the whole of a system of machines, apparatus, and accessories, when set up and arranged for practical working, as in electric lighting, transmission of power, and in this instance, the jack-up rigs Ryan bought to start the business.
Last month, Ginger's hotel ran an occupancy rate of 85%. Her competitive set had 150,000 room nights included within it that were available for sale during that month. During that month, the competitive set sold a total of 115,000 rooms. What was the approximate occupancy rate INDEX last month for Ginger's hotel?
Answers
The approximate occupancy rate INDEX last month for Ginger's hotel is 112
Explanation:
Ginger’s occupancy = 85%
Its competitive set has 150,000 rooms. But only 115,000 sold
So occupancy rate of the competitive set = 115000 by 150000 = 0.7667 = 76.67%
The occupancy should always be rounded to the lower whole number (so as to not change the occupancy rooms)
Hence competitive set occupancy = 76%
So, occupancy rate INDEX = ginger’s occupancy by competitive set occupancy
= 85 by 76
= 1.1184
=112% (rounded to nearest whole number)
Hence, Answer is: 112