Consider two single-malt whiskey distillers, Laphroaig and Knockando. If they advertise, they can both sell more whiskey and increase their revenue. However, the cost of advertising more than offsets the increased revenue so that each distiller ends up with a lower profit than if they do not advertise. On the other hand, if only one advertises, that distiller increases its market share and also its profit.
a. Construct a payoff matrix using the following hypothetical information: If neither distiller advertises, each earns a profit of $35 million per year. If both advertise, each earns a profit of $20 million per year. If one advertises and the other does not, the distiller who advertises earns a profit of $50 million and the distiller who does not advertise earns a profit of $9 million.
b. If Laphroaig wants to maximize profit, will it advertise? Briefly explain.
c. If Knockando wants to maximize profit, will it advertise? Briefly explain.
d. Is there a dominant strategy for each distiller? Briefly explain.

Answer:

a)    900 dollar as all is M0

b)    900 as the deposit have no multiplier effect

c)    900 as there is no multiplier effect

d) 7,200 taking into consideration the multipler effect from the bank deposit.

e) 4,050 considering the deposit multiplier effect

Explanation:

a; b ; c ) as there is no multiplier effect the quantity of money matches the nominal currency.

d)

M0 (currency and coins) 0

M1 900 / 0.125 =  7,200

e)

currency : 900 / 2 = 450 M0

deposit :

450 / 0.125 = 3,600 M1

Total 4,050

Final answer:

The quantity of money in Elmendyn varies with banking practices: $900 as currency or with 100% reserves, $7200 with demand deposits at 12.5% reserves, and $4050 with equal parts currency and demand deposits at 12.5% reserves.

Explanation:

The economic activities in Elmendyn involving $1 bills, request an understanding of how the money supply can change based on different banking scenarios. Here's how the quantity of money is calculated:

The money multiplier effect comes into play when banks hold less than 100 percent in reserves and loan out the rest, leading to an increase in the quantity of money in the multi bank system.

Answer:

Explanation

question solve below

The maximum rate the market can be served is determined by the maximum output which is 5.5 gallons per hour. If the faucet and drain are working at maximum capacity, the bathtub will start to overflow after 40 hours. When filling with an eight-gallon container that takes two hours to refill, the average output rate is 4 gallons per hour.

The operations management scenario involving the 'bathtub theory' can be understood in terms of rate of input (faucet), storage capacity (bathtub) and rate of output (drain).

For question a-1, the maximum rate at which the market can be served is equivalent to the rate at which the drain (outlet to the market) can operate. Given that the drain can output a maximum of 5.5 gallons per hour, the maximum rate at which the market can be served is 5.5 gallons per hour.

For question a-2, with the drain wide open (5.5 gallons per hour) and the faucet running at maximum (7 gallons per hour), the bathtub will start to fill because the input rate is greater than the output rate. The difference between the input and output rate is 7 - 5.5 = 1.5 gallons per hour. Therefore, the tub will start to overflow after 60 (total capacity) divided by 1.5 (rate of increase) equals 40 hours.

For question b, if we use an eight-gallon container for filling and it takes two hours to refill and return it to the bathtub, the average output rate is 8 gallons per 2 hours, or 4 gallons per hour.

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Answer:

Requirement of the question is to prepare journal entries for each of transaction. where it is given that 40,000 common shares were outstanding at Beginning of the year.

Explanation:

Answer:

Check the explanation

Explanation:

As business or company owner there’s a good need to have legal and litigation team comprising of solicitors general, Auditors, and forensic risk manager who can help out in any needs relating to IRS notices and undue Harassment by official legally and prive their warrants to be false.

One must invest in strong compliance teams and establish stringent framework to comply with and pursue ethical audit requirements to avoid any ambiguity or IRS agencies investigation.

However various branches of government can raid businesses with strong evidence or information about any unscrupulous activities and can ask for investigation and further joint inquiries.

If business owner doesn't agree to any allegation he may seek help from legal team regarding charge sheet issued and avail various counseling benefits to avoid loss of brand image and punitive damages.

As a business owner, engaging with the rulemaking process, advocating for transparency, and using legal action are good ways to enforce controls and limits on a new administrative agency. These methods are mirrored by the checks and balances found within the branches of government.

As a business owner, there are a variety of strategies that can be employed to ensure there are controls and limits to the new administrative agency's power. The first step would be to engage with the rulemaking process for the new agency by submitting comments, testifying at public hearings, or participating in public meetings. This can help influence the agency’s rules and policies, and can also allow you to contribute to setting the decision-making boundaries for the agency. In addition, you could use legal action as a way to challenge decisions made by the new agency, and also advocate for transparency within the agency, as this helps to maintain checks and balances.

These methods can be compared to the controls that are available to branches of government. For example, the executive, legislative, and judicial branches all have checks and balances on each other. The executive branch can veto legislation, the legislative branch can override vetoes and impeachment officials, and the judicial branch can declare acts unconstitutional.

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Final answer:

To journalize Finer Company's May sales transactions in the sales journal, only those involving sale of merchandise are included, specifically sales made on May 2, 7, 12, and 25, with total sales amounts recorded regardless of the cost of goods sold.

Explanation:

Journalizing Sales Transactions

To journalize the transactions for Finer Company that should be recorded in the sales journal for the month of May, we'll focus on transactions involving the sale of merchandise which are relevant to the perpetual inventory system. We will ignore non-merchandise transactions such as borrowing cash or selling equipment. Here are the appropriate entries:

May 2: Sold merchandise for $600 cash.

May 7: Sold merchandise on account for $1,566, terms 2/10, n/30.

May 12: Sold merchandise on account for $432, terms n/30.

May 25: Sold merchandise on account for $707, terms n/30.

For the sales on credit, the amounts to be recorded are the total sales amounts, not the cost of the goods sold. Therefore, the following entries are to be made in the sales journal:

Date: 05/02, Account Debited: Cash, Invoice No.: 5703, Amount: $600

Date: 05/07, Account Debited: Accounts Receivable - J. Dryer, Invoice No.: 5704, Amount: $1,566

Date: 05/12, Account Debited: Accounts Receivable - R. Lamb, Invoice No.: 5705, Amount: $432

Date: 05/25, Account Debited: Accounts Receivable - T. Taylor, Invoice No.: 5706, Amount: $707

Note that the transaction from May 16 where J. Dryer pays for a purchase does not belong in the sales journal since it is a cash receipt, not a sale.

Answer:

The journal entries related to the disposal of Machine A and B at the beginning of the current year.

Machine A:

Debit Accumulated depreciation                 $25,680

Debit Cash (sales proceed)                          $10,800

Credit Asset (Machine cost)                         $36,000

Credit Gain on disposal                                     $480

(To record disposal of Machine A)

Machine B:

Debit Accumulated depreciation                $50,050

Debit Cash (sales proceed)                                   $0

Debit Loss on disposal                                  $18,150

Credit Asset (Machine cost)                        $68,200

(To record disposal of Machine B)

Explanation:

Machine A: Using straight-line depreciation method = (Cost - Residual Value) / Useful life: ($36,000 - $3,900) / 5 years = $6,420/year

$6,420/year x 4 years = $25,680

The net book value of the asset is $36,000 - $25,680 = $10,320. Gain on disposal is $10,800 - $10,320 = $480

Machine B: Depreciation: ($68,200 - $4,500) / 14 years = $4,550/year

$4,550/year x 11 years = $50,050

The net book value of the asset is $68,200 - $50,050 = $18,150. Loss on disposal is $0 - $18,150 = -$18,150

Answer: this is to render a heat solution of about 1070 degree Celsius with water to quench, so as to retain the carbides solution in the defective steel for re use.

Explanation:

With the climate condition in the off shore oil drilling platform, it won't rake long for the fabricated steels to collapse and cause the loses of multiple lives and properties.

As an expert I will suggest we deconstruct the steels and use Austenitic stainless steel, because of its corrosion resistance.

We might as well sensitised the steels before use. Because the sensitisation occurs in the region that has seen temperature close to 600 and 900°C.

My possible solution to overcome this defect stated by the quality control and as a result spend less, is that we undergo a HEAT SOLUTION TREATMENT at a 1070°C followed by a water quench to help retain the carbides solution on a rapid cooling in those defective still, and also make it resistance to the climate condition of the area and also commence the project.

The brittleness of the weld on the offshore oil drilling platform likely stems from cold cracking, which can occur when hydrogen becomes trapped in the metal structure as it cools during welding. This issue can be mitigated by preheating the weld area or using a lower hydrogen process or filler material.

In professional opinion, the problem with the weld being brittle, despite being performed in an ambient temperature of 86 F for an offshore oil drilling platform, likely has to do with a phenomenon known as cold cracking. Cold cracking is a major risk in welding, especially with high carbon and alloyed steels like stainless steel. It occurs when hydrogen, often introduced into the metal during welding, is trapped within the metal structure as it cools, creating pressure that can result in cracking. The brittleness of the weld suggests that this might be what's happening.

To prevent this, the weld area could be preheated before welding to slow the cooling rate and allow the hydrogen to escape before it becomes trapped. You could also use a lower hydrogen process or filler material.

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Answer:

The annual after-tax cost of financing the purchase of the home will be $ 16,296.

Explanation:

To calcuate the annual after-tax cost of financing the purchase of the home we have to use the following formula:

annual after-tax cost of financing the purchase= Installment -tax saving

Acording to the data Tax Saving = 32 % x of Interest amount , hence, tax saving= 32% x $22,200

          =$7,104

So, annual after-tax cost of financing the purchase= $23,400- $7,104

                                                                                    = $ 16,296

Answer:

a. Decreased by 7010 units

Explanation:

Variable costing net operating income$ 90,000

Add manufacturing overhead costs

deferred in inventory under absorption

costing ($125,750-$90,000) $35,750

Deduct fixed manufacturing overhead costs released from inventory under absorption costingAbsorption costing net operating income $125,750

Fixed manufacturing overhead per unit = $58,650 ÷ 11,500 units = $5.1 per unit

Manufacturing overhead deferred in (released from) inventory = Fixed manufacturing overhead in endinginventory − Fixed manufacturing overhead in beginning inventory$35,750= ($5.1 per unit × Units in ending inventory) − ($5.1 per unit × Units in beginning inventory)$35,750 = $5.1 per unit × (Units in ending inventory − Units in beginning inventory)(Units in ending inventory − Units in beginning inventory)

= $35,750÷ $5.1 per unit = 7,010 units

Answer:

Option B, increased by 7,010 units is the correct answer

Explanation:

The profits under absorption costing of $125,750 is higher than the one recorded under variable costing of $90,000,this implies that more inventory items have been charged with fixed cost included in the closing value of inventory.

The fixed manufacturing overhead per unit=$58,650/11,500

                                                                         =$5.1

Invariably, each item of closing inventory under absorption costing has $5.1 of fixed cost included in it.

The difference between both methods' profit figures  $35,750 ($125,750-$90,000)

number of increase in closing inventory=difference in profit figures/fixed cost per  unit

number of increase in closing inventory=$35,750/$5.1

                                                                  =7,010

Answer:

These are the missing multiple choices:

a. $3,780,000, b. $4,212,000, c. $720,000

The correct option is A,$3,780,000

Explanation:

The  total cost of Martson's new equipment comprises of the invoice price of the equipment of $3,600,000 plus the cost of installation and shipping costs of $180,000.

The rationale for the shipping and installation is that costs of asset should include costs incurred in bringing the asset to its present location and condition such as installation and shipping costs.

The costs of the assets is $3,780,000($3,600,000+$180,000)

Answer:

1. Jan 1

Dr Cash $1,862,000

Dr Discount on bonds $38,000

Cr Bonds payable $1,900,000

2.

Dr cash $1,938,000

Cr bonds payable $1,900,000

Cr Premium bonds $38,000

Explanation:

Sunland Company

1. Jan 1

Dr cash

Dr Cash $1,862,000

Dr Discount on bonds $38,000

Cr Bonds payable $1,900,000

Cash ($1,900,000 x 0.98) = $1,862,000

2.Assuming instead that the above bonds sold for 102

Dr cash $1,938,000

Cr bonds payable $1,900,000

Cr Premium bonds $38,000

Cash ($1,900,000 x 1.02) = $1,938,000

Final answer:

With an increase in market interest rates to 9%, you would expect to pay less than the bond's $10,000 face value. To calculate the price, discount the bond's remaining cash flows at the new rate, yielding a value of approximately $9,724.77 that you might be willing to pay for it.

Explanation:

The scenario presents a situation where a local water company issued a $10,000 ten-year bond at an interest rate of 6%. When contemplating the purchase of this bond one year before its maturity, the current market interest rate has risen to 9%. This rise in interest rates implies that the market value of the bond will decrease below its face value because investors can obtain a higher return elsewhere. Therefore, you would expect to pay less than the $10,000 face value for the bond.

To calculate the price you would be willing to pay for this bond, you would discount the remaining cash flows (one year of interest plus the principal at maturity) back at the current market rate of 9%. The bond would pay $600 in interest (6% of $10,000), and the repayment of the $10,000 principal at the end of the year. The calculation is as follows:

Adding these together gives you a value you might be willing to pay for the bond:

$550.46 + $9,174.31 = $9,724.77

Answer:

$1,090

Explanation:

The lowest acceptable price for Data Department is the minimum transfer transfer price.

The minimum transfer price is defined as a price that is acceptable to the transferring division and out of a range of acceptable prices, it is that would be the best for the company.

Mini Transfer price = Variable unit costs - internal savings + opportunity cost

Note : the plant has excess capacity to produce the Flash II part, therefore there is no opportunity cost

Mini Transfer price = $ 860+  $ 80 + $ 150

                               =  $1,090

Therefore the lowest acceptable house price the Data Department should receive to produce the part in house at the Computer​ Department is  $1,090

Final answer:

The lowest acceptable inminushouse price the Data Department should receive to produce the Flash II part inminushouse at the Computer Department is $1222, which covers the variable costs of production.

Explanation:

To determine the lowest acceptable inminushouse price the Data Department should receive to produce the Flash II part inminushouse at the Computer Department, we need to consider the variable costs involved in the production. The variable manufacturing costs for the Flash II part include direct materials, direct labor, variable manufacturing overhead, and variable selling expenses. Adding these costs together, we get $860 (direct materials) + $80 (direct labor) + $150 (variable manufacturing overhead) + $132 (variable selling expenses) = $1222.

Therefore, the lowest acceptable inminushouse price the Data Department should receive is $1222, which covers the variable costs of production. This ensures that the Data Department covers its expenses when producing the Flash II part inminushouse at the Computer Department.

Answer:

4,000 bushels of wheat

Explanation:

Given that,

Selling price per bushel of wheat = $25

His land follows diminishing returns as some are better suited for wheat production than others.

First acre of land produce = 1,000

Second acre of land produce = 900

Third acre of land produce = 800

As the land is following diminishing returns and it can be seen from the above information that there is a reduction of 100 bushel of wheat as we are moving from one acre of land to other acre of land.

Similarly,

Fourth acre of land yield = 700

Fifth acre of land produce = 600

Therefore, the total bushels of wheat produce by each of the farmer’s five acres is calculated as follows:

= First acre of land produce + Second acre of land produce + Third acre of land produce + Fourth acre of land produce + Fifth acre of land produce

= 1,000 + 900 + 800 + 700 + 600

= 4,000 bushels of wheat

Answer: a) $1,775.44

b. 7.34%

Explanation:

a)What we are dealing with here is an annuity.

And to find the monthly payments, we can use the Present Value of an annuity formula because we already have the present value of the Annuity.

Formula is,

PV = PMT ( 1 - (1 + r) ^ -n)/ r

Where PV is the present value

PMT is the payment

r is the APR

n is the number of periods.

Because n is in months, APR must be in months too so,

= 7.1%/12

= 0.59%

Calculating therefore would be,

89,500 = PMT (1 - (1 + 0.59%) ^ - 60)/ 0.59%

89,500 = PMT (50.41)

PMT = 89,500/50.41

PMT = 1775.44138068

PMT = $1,775.44

The monthly payment is $1,775.44

b) Effective annual rate on this loan = (1+APR/12)^12 -1

= (1+7.1%/12)^12 -1

= 7.34%

Effective annual rate on this loan is 7.34%

If you need any clarification do comment.

Final answer:

The monthly payments for the sports coupe loan at 7.1% APR are $1,775.72, with an effective annual rate of 7.35%. Lowering the interest rate to 0.5% reduces the monthly payment to $1,602.31.

Explanation:

Monthly Payments Calculation:
For the $89,500 sports coupe at 7.1% APR with a 60-month loan, the monthly payment is $1,775.72.

Effective Annual Rate Calculation:
The effective annual rate on this loan is 7.35%.

Comparison:
If the interest rate drops to 0.5%, the monthly payment would be $1,602.31.

The monthly payments for the sports coupe loan at 7.1% APR are $1,775.72, with an effective annual rate of 7.35%. Lowering the interest rate to 0.5% reduces the monthly payment to $1,602.31.

Answer:

1. Number of times ingredients are missing

INPUT

2. Number of customer complaints. OUTPUT

3. Number of hours kitchen equipment is down for repairs. INPUT

4. Number of server order mistakes. INPUT

5. Percent of meals prepared on time. OUTPUT

6. Number of unexpected cook absences. INPUT

Explanation:

The following are inputs and outputs to the cooking process of a restaurant:

1. Number of times ingredients are missing

INPUT

2. Number of customer complaints. OUTPUT

3. Number of hours kitchen equipment is down for repairs. INPUT

4. Number of server order mistakes. INPUT

5. Percent of meals prepared on time. OUTPUT

6. Number of unexpected cook absences. INPUT

Answer:

The answer is C.

The flexible budget variance for variable manufacturing overhead costs is favorable because fewer DL hrs were logged during production than expected.

Explanation:

The flexible budget variance for manufacturing overhead =

                     (Actual DL hrs * OAR) - Actual Overhead

          =    ( 12,000* $21.50 )    - ( $545,000 - $325,000)

      =             $258,000 - $220,000

      =            $38,500 Fav.

Answer:

$78,300

Explanation:

The computation of the cash collected is shown below:

Cash collection = Billings cost - account receivable

= $110,700 - $32,400

= $78,300

Since we have to compute the cash collected so we deduct the account receivable from the billings so that the accurate amount could arrive

Therefore, all the other information which is mentioned is not relevant. Hence, ignored it

Answer:

Production costs= $4,310,400

Explanation:

Giving the following information:

$13.5 per pair in variable raw material costs and $13.44 per pair in variable labor expense.

The production costs are the sum of direct material, direct labor, and variable overhead.

Production costs= (13.5 + 13.44)*160,000= $4,310,400

Answer:

$4,310,400

Explanation:

Answer:

Net operating income= 374,500

Explanation:

Giving the following information:

Direct materials= $5

Direct labor= $3 per unit

Variable overhead= $4 per unit

Fixed overhead= $189,000.

The company produced 21,000 units, and sold 15,500 units

Under the absorption costing method, the unitary product cost is calculated using the direct material, direct labor, and total unitary overhead.

First, we need to calculate the unitary fixed overhead:

Unitary fixed overhead= 189,000/21,000= $9

Now, we can calculate the unitary product cost

unitary product cost= 5+3+4+9= $21

We need to determine the sales, therefore, we will reverse engineer the variable costing income statement:

Net operating income= 325,000

Fixed costs= 189,000

Variable costs= (5+3+4)*15,500= 186,000

=total sales= $700,000

Finally, we determine the net operating income under absorption costing:

Sales= 700,000

Cost of goods sold= (21*15,500)= (325,500)

Net operating income= 374,500

Answer:

$374,500

Explanation:

Variable costing consider all variable costs as production cost and Absorption costing consider all the cost incurred in production either variable or fixed as production cost.

Cost of Product

Direct materials,                 $5 per unit

Direct labor,                        $3 per unit

Variable overhead,            $4 per unit

Fixed overhead per unit    $9 per unit

Total Product cost              $21 per unit

Variable cost per unit

Direct materials,                 $5 per unit

Direct labor,                        $3 per unit

Variable overhead,            $4 per unit

Total Product cost              $12 per unit

Variable costing

Net Income = Sales - variable - Fixed Costs

$325,000 = Sales - (15,500 x $12 ) - $189,000

$325,000 = Sales - $186,000 - $189,000

$325,000 = Sales - $375,000

Sales = $325,000 + $375,000

Sales = $700,000

Fixed overhead per unit = $189,000 / 21,000 = $9 per unit

Under absorption costing

Sales = $700,000

Cost of Sales = (15,500 x $21 ) = $325,500

Net Income = $700,000 - $325,500 = $374,500

Answer:

Explanation:

The file attached shows all the necessary explanation. I hope it helps. Thank you

Answer:

In 269th Payment the principal component is greater than half of the payment

Explanation:

Amortization schedule is attached please find it.

The loan payment includes the interest and principal portion. After deducting the interest on the due balance the residual amount is paid towards the principal.  

Loan is paid per month, the amount of each payment can be calculated as follow:

Loan Payment per month = r ( PV ) / 1 - ( 1 + r )^-n

r = rate per period = 9% per year = 0.75% per month

n = number months = 30 years x 12 months per year = 360 Months

PV =  present value of all payments = $420,000

P = payment per month = ?

P = 0.75% ( $420,000 x 90% ) / 1 - ( 1 + 0.75% )^-360

P = $3,041.47 per month

Answer:

Option (D) is correct.

Explanation:

Given that,

Japanese adult non- institutionalized population = 110.272 million

Labor force = 65.36 million

Number of people employed = 62.242 million

Labor force participation rate is calculated as the percent of adult population involved in the labor force.

Labor force participation rate:

= (Labor force ÷ adult non- institutionalized population) × 100

= (65.36 ÷ 110.272) × 100

= 0.5927 × 100

= 59.27% or 59.3%

Unemployment rate is calculated as the percent of people unemployed among the labor force.

Number of people unemployed:

= Total labor force - Number of employed

= 65.36 - 62.242

= 3.118 million

Unemployment rate:

= (Number of people unemployed ÷ Labor force) × 100

= (3.118 ÷ 65.36) × 100

= 0.0477 × 100

= 4.77% or 4.8%

Answer:

Option A is correct one.

$7.00

Explanation:

Bundle package price (or) Suite price of all the 3 products is 17. This is more than the stand alone price of primary product Ra. Hence as per the rule of Incremental revenue allocation, 100% of stand alone revenue to be allocated to primary product in such case.

When using the incremental-revenues allocation method and designating Ra as the primary product, the amount of revenues from a bundled package of all three products to be allocated to Ra is $7.00.

The correct option is 'a'.

The student's question involves the allocation of revenues from bundled product packages using the incremental-revenues allocation method. Specifically, the student wants to know how much of the revenue from a package of all three products should be allocated to the product designated as the primary product (i.e., Ra).

In this scenario, the individual prices of Do, Ra, and Mi are $8, $7, and $5 respectively, and the package price of all three is $17.00. To determine the amount allocated to Ra, we subtract from the bundle price ($17.00) the sum of the incremental prices for the other two products based on their combination prices with Ra. This is calculated as follows:

After calculating the incremental prices of Do and Mi relative to Ra, sum these incremental amounts and subtract from the total package price to find the allocation to Ra:

The correct answer for the revenue allocated to Ra when applying the incremental-revenues allocation method for a package of Do, Ra, and Mi is $7.00 (option a).

Final answer:

The taxes due on sale of the property are based on the capital gain and accumulated depreciation recapture. The capitalized gain is calculated to be $406,365, which would be subject to capital gains tax, and the depreciation recapture at a standard rate for real estate would be 25% of $136,365.

Explanation:

To calculate the taxes due on sale of the property, we must first determine the gain on sale and the depreciable basis after accounting for the amortization. The property was purchased for $1 million and sold for $1.27 million, resulting in a gross gain of $270,000. Over the 5 year holding period using straight-line depreciation, the depreciable basis of $750,000 is reduced by the depreciation taken ($750,000 divided by 27.5 years equals approximately $27,273 per year, multiplied by 5 years equals roughly $136,365 in total depreciation).

This means the adjusted basis of the property at the time of sale is $1,000,000 (purchase price) minus $136,365 (accumulated depreciation), which equals $863,635. Subtracting this from the sale price of $1,270,000, we get a capital gain of $406,365. This gain would be subject to capital gains tax, and the accumulated depreciation recaptured at a 25% rate for real estate. Without specific tax rates for the individual's income, we cannot calculate the exact tax amount, but we have the necessary information to do so with those rates.

Answer:

1. Contribution margin for current year = $ 382,500

  Contribution margin for projected year = $ 420,750

2.  Fixed costs for current year - $ 451,400

Explanation:

Computation of fixed costs

Fixed selling expenses  ( 60 % of $ 250,000)                     $ 150,000

Fixed administrative expenses ( 80 % of $ 280,000)         $ 224,000

Fixed manufacturing overhead ( 30 % of $ 358,000)         $   77,400

Total Fixed costs                                                                    $ 451,400

Computation of variable costs and contribution margin for current year

Direct Materials cost for current year                                       $ 496,000

Direct Labor costs for current year                                           $    34,900

Variable selling expenses  ( 40 % of $ 250,000)                     $ 100,000

Variable administrative expenses ( 20 % of $ 280,000)         $   56,000

Variable manufacturing overhead ( 70 % of $ 358,000)         $  180,600

Total Variable costs for current year                                        $  867,500

Contribution margin for current year =

Sales Revenue - Variable costs

$ 1,250,000 - $ 867,500         =   $ 382,500        

Computation of variable costs and contribution margin for projected year

Direct Material cost for projected year( $ 496,000 * 110 %)= $ 545,600

Direct Labor costs for projected year ( $ 34,900 * 110 %)    = $   38,390                          

Variable selling expenses  ( 110 % of $ 100,000)                     $ 110,000

Variable administrative expenses ( 110 % of $ 56,000)         $    61,600

Variable manufacturing overhead ( 110 % of $ 180,600)         $  198,660

Total Variable costs for current year                                        $  954,250

Contribution margin for current year =

Sales Revenue - Variable costs

$ 1,375,000 ($ 1,250,000* 110 %) - $ 954,250         =   $ 420,750

Answer:

Contribution Margin for current year $312,500

Total Fixed Costs  481,400

Contribution Margin for projected year $373,450

Fixed Costs for the projected year will remain same 481,400

Explanation:

Wildhorse Corporation

Sales  $1,250,000

Direct materials $496,000,

Direct labor $34,900,

Manufacturing overhead

Variable (70% )  of $358,000= 250,600

Manufacturing Margin 468,500

Administrative expenses

Variable (20% )of $280,000=   56,000

Selling expenses

Variable (40% )of  $250,000=  100,00

Total Variable Costs 910,500

Contribution Margin for current year $312,500

Total Fixed Costs  481,400

Selling expenses

Fixed  60% of ,$250,000=       150,00

Administrative expenses

Fixed  80% of $280,000=       224,000

Manufacturing overhead

Fixed  30% of $358,000 =   107,400

Wildhorse Corporation

Sales  $1, 375,000

Costs / no of units = ( $1,250,000/125,000= $10 per unit  )

( 125000+12500= 137,500 units * units price = $ 10 = 13750,000)

Total Variable Costs 910,500 for 125,000 units

Unit Variable Costs =910,500/ 125,000 units =$  7.284

Total variable costs for 137,500 units = $ 1001550

Contribution Margin for projected year $373,450

We calculate the total variable costs and get the unit variable costs by dividing with the number of units given. Now we multiply it with additional 10 % increase in the units to get the Contribution Margin for projected year .

Fixed Costs for the projected year will remain same 481,400

Selling expenses

Fixed  60% of ,$250,000=       150,00

Administrative expenses

Fixed  80% of $280,000=       224,000

Manufacturing overhead

Fixed  30% of $358,000 =   107,400

Answer & Explanation:

Fish is a common resource not a public good because it is subject to rivalry in consumption.Tragedy of commons results when property right aren't assigned for the common resource.

Daniel Pauly's prediction is that fish is a common resource susceptible to the tragedy of the commons, where people overfish to maximize profits.

This leads to the depletion of the resource, which Pauly predicts will happen in the future.

However, other statements are not as accurate. Demand for fish is not decreasing, and the supply is increasing at a decreasing rate, but this does not lead to sustainable fishing practices. Pauly's prediction implies that catch size will continue to decline due to the tragedy of the commons, a serious issue that must be addressed to ensure ocean sustainability.

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Answer:

$7200

Explanation:

LIFO means last in, first out. It means the last purchased inventory are the first to be sold.

The cost of goods sold = 360 x $20 = $7200

I hope my answer helps you

Answer:

$7,200

Explanation:

The LIFO method of inventory valuation is one in which the last set of inventory items purchased are the first to be sold. This system may not be prudent where the items of inventory are perishable.

Given that sales during the month totaled 360 units, these must have been part of the items purchased during the month at $20 each. Hence, cost of goods sold

= 360 * $20

= $7,200

Final answer:

The operating income of Manganese Company will increase by $21,375 if it accepts the special order of 750 frames at $60 each, given that setup costs are sunk and the workers' wages are unaffected by the order.

Explanation:

To determine how much the operating income will increase or decrease if Manganese Company accepts the special order, we need to analyze the relevant costs and revenues associated with the order. The total revenue from the special order would be 750 frames × $60/frame, while total variable costs would be the sum of wood and glass costs, variable overhead, and direct labor, all multiplied by 750 frames. Since the setup cost is a sunk cost because the workers' wages will be paid whether or not the special order is accepted, it should not be included in the calculation.

Calculation

Total Revenue:

750 frames × $60/frame = $45,000

Total Variable Costs:

(Wood and glass $15/frame + Variable overhead $5/frame + Direct labor $11.5/frame) × 750 frames = $23,625

Operating Income Increase:

Total Revenue - Total Variable Costs = $45,000 - $23,625 = $21,375

The operating income will increase by $21,375 if the special order is accepted.

Answer:

the common stockholders receive $162,000

Explanation:

Preference Shareholders have preference interest over the dividends of Written Inc. This means the preference share holders will be paid their dividends before the common shareholders receive theirs

Note : The preferred stock is cumulative meaning that any dividends in arrears would have to be paid first before payment of dividends relating to current year dividends are declared and issued

Preference Dividends Arrears

Past Two years = (120,000 shares×$5×6%)×2

                          =$72,000

Current Year     = 120,000 shares×$5×6%

                          =$36,000

Total = $72,000+$36,000 = $108,000

Dividends Paid to Common stockholders

Total Distributed Dividend                               $270,000

Less Distributed to Preference shareholders($108,000)

Paid to Common stockholders                        $162,000

Answer and Explanation:

The preparation of cash budget for July, August and September is shown below:-

                                                         July      August        September

Beginning cash balance                  $8,400    $8,000        $8,000

Add:  

Cash receipts                                  $20,000  $26,000       $40,000  

Total cash available                         $28,400   $34000       $48000

Less:-  

Cash payments                                $28,000  $30,000       $22,000

Less:-  

Interest on bank loan                       0               $76               $117

Preliminary cash balance               $400        $3,924           $25,883

Additional loan(loan repayment)   $7,600     $4,076        -$11,676

Ending cash balance                     $8,000       $8,000         $14,207  

Loan balance                                              

Loan balance -Beginning of month      0         $7,600         $11,676  

Additional loan(loan repayment)      $7,600    $4,076      -$11,676  

loan balance-end of month                $7,600     $11,676       0

Working note

Interest = $7600 × 1% = $76    

Interest = $11,676 × 1% = $117

Therefore for making cash budget we simply added all the receipts and less all the payments.

A monthly cash budget for Karim Corp is prepared by tracking the beginning balance, forecasted receipts, forecasted payments, any necessary loans, and interest, and then calculating the ending balance. For July and August, loans are necessary to maintain the $8,000 minimum balance. In September, a surplus allows repayment of the loans.

For the cash budget, let's go month by month July begins with a cash balance of $8,400. Adding the forecasted receipts of $20,000 and subtracting the forecasted payments of $28,000 leaves us with an ending balance of $400. However, Karim Corp requires a minimum balance of $8,000, so you will have to take out a loan for $7,600 to meet this requirement. The loan costs 1% interest per month or $76 for July.

Moving on to August, we begin with our balance of $8,000 (the loaned amount). We add receipts of $26,000 and subtract payments of $30,000, leaving a balance of $4,000. Again, we need to maintain a balance of $8,000, so we need another loan. This time the loan is for $4,000, and the interest cost is $40. Adding this to the July interest gives a total interest cost of $116.

In September, we start with our balance of $8,000, add receipts of $40,000 and subtract payments of $22,000. This gives us an ending balance of $26,000. With this surplus, we can pay off the total loan amount of $11,600 (loans of $7,600 and $4,000 plus the total interest of $116). This leaves us with a final September balance of $14,234.

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