Answer:
The correct answer is trade secret
Explanation:
Trade secret can be considered as any secret or confidential information regarding business that provides a company with a competitive advantage over other company's in the market. Trade secret can be anything like commercial secrets, advertising strategies, recipe formula or manufacturing secrets etc. So therefore by reading the question it is quite clear that the intellectual property protection that keeps the recipe a secret is trade secret.
Irving's Rib Shack's recipe for their signature barbecue sauce is protected as a trade secret. This method of intellectual property protection is the same one utilized to keep the Coca-Cola formula private.
Explanation:The intellectual property protection that keeps Irving's Rib Shack's signature barbecue sauce recipe secret is referred to as trade secrets. This body of law grants protection to commercially valuable pieces of information that provide an enterprise a competitive edge, such as the secret recipe for Coca-Cola. In the case of Irving's Rib Shack, they protect their barbecue sauce recipe by not making it public, not through patent or copyright law, but by simply keeping it confidential, which is the nature of a trade secret.
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Lakeside, Inc. estimated manufacturing overhead costs for the year at $ 372 comma 000, based on 181 comma 000 estimated direct labor hours. Actual direct labor hours for the year totaled 191 comma 000. The manufacturing overhead account contains debit entries totaling $ 391 comma 000. The Manufacturing Overhead for the year was ________. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
The Manufacturing Overhead for the year was $401,750.
The company estimated overhead costs based on direct labor hours.
To calculate the overhead, we need to consider both estimated and actual figures. Their estimated manufacturing overhead was $372,000 based on 181,000 estimated direct labor hours, and the actual direct labor hours were 191,000.
First, calculate the predetermined overhead rate: $372,000 / 181,000 = $2.055 per direct labor hour.
Then, find the total manufacturing overhead applied: $2.055 x 191,000 = $391,605.
Finally, determine the Manufacturing Overhead: $391,605 + ($391,000 - $391,605) = $401,750.
Jarett & Sons's common stock currently trades at $27.00 a share. It is expected to pay an annual dividend of $2.50 a share at the end of the year (D1 = $2.50), and the constant growth rate is 4% a year. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. % If the company issued new stock, it would incur a 12% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
Cost of common equity assuming equity comes from retained earning = 13.26%
Cost of common equity from new stock = 14.52%
Explanation:
From the constant growth model:[tex]P0=\frac{D1}{ke-g} \\[/tex]
where P0=$27; D1=$2.50; g = 4%
If the company is using retained earnings, it does not incur any flotation costs as it just retains earnings instead of paying them out as dividends.
therefore from the above equation, if we solve for ke, we get:
[tex]ke=\frac{D1}{P0}+g = \frac{2.5}{27} +0.04 = 13.26%[/tex]
If the company issues new stock, it will effectively receive less that $27 per share as 12% will have to go towards flotation costs. ke in this case will be:
[tex]ke=\frac{D1}{P0(1-f)} +g = \frac{2.5}{27(1-0.12)} +0.04=14.52%[/tex]
Flotation costs effectively increase cost of capital.
Quantum Technology had $664,000 of retained earnings on December 31, 20X2. The company paid common dividends of $31,300 in 20X2 and had retained earnings of $588,000 on December 31, 20X1. a. How much did Quantum Technology earn during 20X2?
Answer:
Net Loss 107,300
Explanation:
[tex]$$Beginning Retained Earnings$$$+/- Net Income/Loss$$$- Dividends$$$Equals Ending Retained Earning[/tex]
We post the values given in the assingment and then we solve for the missing part.
664,000 Beginning Retained Earnings
+/- Net Income/Loss
- 31,300 Dividends
Equals to 588,000 Ending Retained Earnings
588,000 - 664,000 - 31,300 = Result from the period
Net Loss 107,300
1. Your church has decided that one of its missions will be to provide assistance to those members that demonstrate a need for assistance to attend local community colleges. The board decided to set-up a trust fund that will be available in 5 years. One member puts up $10,000 to begin the fund. The church also collects another $5,000 per year for the next 5 years. How much will the fund have beginning in 5 years? Assume an interest rate of 8%.
Answer:The total amount in fund at the beginning of [tex]5^{th}[/tex] year = $10000 +$19,963.55 = $29,963.55
Explanation:
Initial amount to begin the fund = $10,000
Now , given ;
Church collects another $5,000 per year for the next 5 years at an interest rate of 8%.
Therefore we'll evaluate the Present value of these $5000 for the next 5 years.
PV = [tex]\frac{1}{(1+i)^{n}}\times 5000[/tex]
where ;
i = interest rate
n = time period
∴ Net Present Value = [tex]\left [ \frac{1}{(1+0.8)^{1}}+\frac{1}{(1+0.8)^{2}}+\frac{1}{(1+0.8)^{3}}+\frac{1}{(1+0.8)^{4}}+\frac{1}{(1+0.8)^{5}} \right ]\times 5000[/tex]
On evaluating the above equation;
Net Present Value = 5000×(0.926 + 0.857 + 0.794 + 0.735 + 0.681)
Net Present Value = $19,963.55
Now,
The total amount in fund at the beginning of [tex]5^{th}[/tex] year = $10000 +$19,963.55 = $29,963.55
Alpha Industries is considering a project with an initial cost of $7.4 million. The project will produce cash inflows of $1.54 million a year for seven years. The firm uses the subjective approach to assign discount rates to projects. For this project, the subjective adjustment is +1.5 percent. The firm has a pretax cost of debt of 8.6 percent and a cost of equity of 13.7 percent. The debt-equity ratio is 0.0.65 and the tax rate is 35 percent. What is the net present value of the project?
Answer:
Net Present Value: 362,855
Explanation:
First we need to calculate the WACC to know the required return of the project.
[tex]WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})[/tex]
Ke = 0.152 (0.137 cost of capital+ 0.015 subjective risk)
ER = 0.35 = E/(E+D)
Kd = 0.086
DR = 0.65 = D/(E+D)
t = 0.35
[tex]WACC = .152(.35) + .086(1-0.35)(.65)[/tex]
WACC 8.95350%
Then we calcualte the net present value:
Present value of the cash flow
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C= 1,540,000
rate = 8.9535%
time 7 years
[tex]1,540,000 \times \frac{1-(1+0.089535)^{-7} }{0.089535} = PV\\[/tex]
PV = 7,762,855
Present value of the cash flow - Investment = NPV
7,762,855 - 7,400,000 = 362,855
The management of L Corporation is considering a project that would require an investment of $208,000 and would last for 6 years. The annual net operating income from the project would be $104,000, which includes depreciation of $15,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):
Answer: 1.748 years
Explanation: The term payback period can be defined as the period under which the firm can recover its initial investment in the project from the cash inflows. It can be computed using following formula :-
[tex]=\:Payback\:period\:=\:\frac{Initial\:cash\:investment}{cash\:inflows}[/tex]
where,
total annual cash inflow = $104,000 + $15,000 = $119,000
now, putting the values into equation we get,
[tex]=\:Payback\:period\:=\:\frac{208,000}{119,000}[/tex]
= 1.748 years
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,800 units are planned to be sold in March. The variable selling and administrative expense is $4.30 per unit. The budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:
Answer:
The cash disbursements for S&A should be: $40,660
Explanation:
Assuming all variable cost are paid in cash
[tex]1,800 \: units \times 4.30 \: variable \: S&A = 7,740[/tex]
35,620 fixed S&A
- 2,700 depreciation (non-monetary)
32,920 Cash disbursement for fixed cost
[tex]fixed \: disbursements + variable \: disbursements = total[/tex]
32,920 + 7,740= 40,660
The cash disbursements for selling and administrative expenses on the March budget should be $40,660.
Explanation:To calculate the cash disbursements for selling and administrative expenses on the March budget, we need to calculate the total fixed selling and administrative expense, which includes depreciation. Then, we calculate the total variable selling and administrative expense by multiplying the variable cost per unit by the number of units planned to be sold in March. Finally, we add the fixed and variable expenses to find the total cash disbursements for selling and administrative expenses.
Fixed selling and administrative expense: $35,620 - $2,700 (depreciation) = $32,920 per month
Variable selling and administrative expense: $4.30 per unit × 1,800 units = $7,740
Total cash disbursements for selling and administrative expenses: $32,920 + $7,740 = $40,660
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A manufacturing company producing medical devices reported $59 million in sales over the last year. At the end of the same year, the company had $16 million worth of inventory of ready-to-ship devices. (Round your answer to 1 decimal place.) Assuming that units in inventory are valued (based on cost of goods sold) at $500 per unit and are sold for $1750 per unit, what is the company's annual inventory tumover
Answer:
The inventory TO is 3.6875
Explanation:
[tex]\frac{Sales}{Average Inventory} = $Inventory Turnover[/tex]
where:
[tex]$$Average Inventory=(Beginning Inventory + Ending Inventory)/2[/tex]
Considering there is not sufficient information to calculate the begining inventory we are going to work only with the ending inventory so:
[tex]\frac{59,000,000}{16,000,000} = 3.6875[/tex]
The inventory TO is 3.6875 This means the company sales their inventory almost 4 times per year.
On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent note from one of its customers to settle his $4,000 past-due account. Prepare the March 15 entry for Viking Office Supply by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Cash debit 1,200
Note Receivable debit 2,800
Account Receivable credit 4,000
Explanation:
The accounting will reflect the receipt of cash and the note at their principal.
The interest of the note will ge accrued with the past of time. Currently no interest was earned, so we don't have to post anything related to the interest of the note.
We just write-off the account receivable of the customer and declare how we settle.
A firm has three different production facilities, all of which produce the same product. While reviewing the firm's cost data, Jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests closing that plant. Another manager, Joshua, notes that the high-cost plant has high fixed costs but that the marginal cost for that plant is lower than in the other plants. He says that the high-cost plant should not be shut down but should expand its operations. Who is right? Just considering the short run time frame, the manager who is correct is
Answer:
Joshua statement is correct.
Explanation:
Marginal cost:
Is the cost of producing a new unit.
Average Cost:
[tex]\frac{Fixed Cost + Variable Cost}{UnitsProduced} = $Average Cost[/tex]
[tex]\frac{Fixed Cost}{UnitsProduced} + $Variable Cost Per Unit= Average Cost[/tex]
If the marginal cost of this plant is lower than their other plants, it can decrease his average cost by increasing the amount produced.
This increase in production decrease the impact of the fixed cost in the unit price. At more production the average cost will decrease. Because the variable cost keeps at the same value but the fixed cost per unit decrease.
Extreme Manufacturing Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry $320,000 16,000 hours Account billing $220,000 4,000,000 lines Account verification accounts $182,000 80,000 accounts Correspondence letters $25,000 4,000 letters Total costs $747,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,200 hours 3,700 hours Account billing lines 600,000 lines 450,000 lines Account verification accounts 5,000 accounts 3,000 accounts Correspondence letters 1,000 letters 1,400 letters How much of the account billing cost will be assigned to Department B
Final answer:
The cost of account billing assigned to Department B is $24,750, calculated by finding the cost per line and multiplying it by the number of lines Department B used.
Explanation:
To determine the cost that will be assigned to Department B for account billing, we first need to calculate the cost per line for account billing by dividing the total account billing cost by the total number of billing lines.
Total cost of account billing = $220,000.
Total billing lines = 4,000,000 lines.
Cost per line = Total cost of account billing ÷ Total billing lines = $220,000 ÷ 4,000,000 lines = $0.055 per line.
Now, using the cost per line, we will multiply it by the number of lines used by Department B:
Account billing lines used by Department B = 450,000 lines.
Cost for Department B = Cost per line × Number of lines used by Department B = $0.055 × 450,000 lines = $24,750.
Employees earn vacation pay at the rate of one day per month. During the month of July, 30 employees qualify for one vacation day each. Their average daily wage is $105 per day. What is the amount of vacation benefit expense to be recorded for the month of July?
Answer: $3150
Explanation:
Given that,
average daily wage = $105 per day
In the month of july, 30 employees were qualify for one vacation day each.
Hence, the amount of vacation benefit expense to be recorded for the month of July as follows:
= Wage per day × Employees Qualify
= $105 × 30
= $3150
∴ The amount of vacation benefit expense to be recorded for the month of July is $3150.
Cost Behavior Prepare income statement in two formats Farnsworth Drycleaners has capacity to clean up to 7,500 garments per month. The following operating data is available for Farnsworth. Amount charged per garment for dry cleaning $10.00 Variable cost per garment $0.70 Fixed costs per month $14,400. Requirements: 1- Using the traditional format, prepare Farnsworth’s projected income statement for July assuming 4,260 garments are cleaned during the month. a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted.
2- Using the contribution margin format, prepare Farnsworth’s projected income statement for July assuming 4,260 garments are cleaned during the month. a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted.
Answer:
(1)
Fees revenues 42,600
Total expenses 1.92 x 4260 = 8179.2
Net income 34,420.8
(2)
Fees revenues 42,600
Variable cost 2,982
Contribution Margin 39,618
Fixed Cost 14,400
Net Income 25,218
Explanation:
(1)
We multiply by the garment cleaned
10 x 4,260 = 42,600
0.7 x 4,260 = 2982
and distribute the fixed cost among the normal capacity
14,400 / 7,500 = 1.92 fixed cost per garment cleaned
.7 + 1.92 = 2.62 cost per garment
(2)
We do not include the fixed cost in the unit cost, we subtact them completely as an expense.
Farnsworth Drycleaners' projected income statement for July can be prepared in both traditional format and contribution margin format.
Explanation:In order to prepare Farnsworth Drycleaners' income statements, we will use both the traditional format and the contribution margin format.
Traditional Format:First, we calculate the total revenue by multiplying the number of garments cleaned (4,260) by the amount charged per garment ($10.00). This gives us $42,600.
Next, we calculate the total variable costs by multiplying the number of garments cleaned (4,260) by the variable cost per garment ($0.70). This gives us $2,982.
The fixed costs per month are given as $14,400.
Finally, we can calculate the net income by subtracting the total variable costs and fixed costs from the total revenue.
Contribution Margin Format:In the contribution margin format, we subtract the total variable costs from the total revenue to find the contribution margin. This gives us $39,618.
Then, we subtract the fixed costs to find the net income. This gives us $25,218.
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Salley Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable expenses 40 20 % Contribution margin 160 80 % Fixed expenses are $1,323,000 per month. The company is currently selling 9,380 units per month. Management is considering using a new component that would increase the unit variable cost by $9. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 600 units. What should be the overall effect on the company's monthly net operating income of this change?
Answer:
The effect on the company's monthly net operating income will be positive for 6,180
Explanation:
The situation we have currently is the following:
Sales are 9,380
Each unit generates a contribution a $160
Total contribution of $1,500,800 (9,380 units x $160)
less Fixed Cost $1,323,000
Operating Income of $177,800
With the new component the data will be
Sales 9,380 + 600 = 9,980
Contribution of 160 - 9 (increase in variable cost) = $151
Total Contribution = $1,506,980
less Fixed Cost $1,323,000
Operating Income $183,980
Let's compare each operating income:
with the new component $183,980
without the component (current situation) $177,800
Change in net income $6,180
Remember:
if the variable cost increase then the contribution margin decrease the same amount (more money of the sale is used to pay the cost)if their variable cost goes down, then the contribution margin increase (fewer sales revenues go for the cost of the unit and more is left for the rest of the expenses)Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics The effect of federal government spending on the national unemployment rate The effect of a cigarette tax on the quantity of cigarettes sold The effect of an increase in the money supply on the rate of inflation
The correct answers are the following:
Microeconomics
The effect of a cigarette tax on the quantity of cigarettes soldMacroeconomics
The effect of federal government spending on the national unemployment rate The effect of an increase in the money supply on the rate of inflationMicroeconomics is defined as the study of the individual decisions reached by economic agents (households/individuals, firms and public sector entities) in the markets of products services and factors of production.
Macroeconomics is the study of the economy as a whole, using aggregate indicators that are the result of accummulating thousands or millions of the individual decisions studied in the micro approach, and which measure the behaviour of the whole economy of a certain country, region, or even the whole world (depending on the level of aggregation used!)
The effect of federal government spending on the national unemployment rate and the effect of an increase in the money supply on the rate of inflation are topics in macroeconomics, while the effect of a cigarette tax on the quantity of cigarettes sold is a topic in microeconomics.
Explanation:In the study of economics, the topics you mentioned would likely be studied in both microeconomics and macroeconomics, but with a different focus. The effect of federal government spending on the national unemployment rate and the effect of an increase in the money supply on the rate of inflation are topics that fall under macroeconomics. These topics deal with the overall economy and how government policies impact it as a whole.
On the other hand, the effect of a cigarette tax on the quantity of cigarettes sold would be studied in microeconomics. This topic focuses on individual markets and how decisions by consumers and producers affect the specific market for cigarettes.
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Do you want to own your own candy store? Wow! With some interest in running your own business and a decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in thousands of dollars) for a random sample of candy stores are given below. Assume that the population of x values has an approximately normal distribution. 92 177 129 96 75 94 116 100 85 (a) Use a calculator with mean and sample standard deviation keys to find the sample mean startup cost x and sample standard deviation s. (Round your answers to one decimal place.) x = thousand dollars s = thousand dollars (b) Find a 90% confidence interval for the population average startup costs ? for candy store franchises. (Round your answers to one decimal place.) lower limit thousand dollars upper limit thousand dollars
Answer: Lower limit = 88.1
Upper limit = 126.1
Explanation:
Given :
Sample mean = [tex]\overline{x}[/tex] = 107.1
Sample standard deviation = s = 30.7
Sample size = n = 9
∴ Degree of freedom = [tex]d_{f}[/tex] = n - 1 = 8
∝ = 1 - confidence interval = 1 - 0.90 = 0.10
[tex]\frac{\alpha}{2}[/tex] = 0.05
From t-distribution table;
[tex]t_{0.05}[/tex] = 1.860
∴ Margin of error(MOE) = [tex]t_{0.05}[/tex]×[tex]\frac{30.7 }{\sqrt{9} }[/tex]
= 1.860×[tex]\frac{30.7 }{\sqrt{9} }[/tex]
=19.03
∴ Lower Limit = 107.1 - 19.03 = 88.1
Upper limit = 107.1 + 19.03 = 126.1
The sample mean startup cost for the candy stores is 106.3 thousand dollars with a standard deviation of about 31.5 thousand dollars. For a 90% confidence interval, the average costs would lie between 79.1 and 133.5 thousand dollars.
Explanation:First, let's calculate the mean and standard deviation of the provided costs. The costs given are 92, 177, 129, 96, 75, 94, 116, 100, 85. By adding all the values and dividing by the number of values (9), we can find the mean, which comes out to about 106.3 thousand dollars. The standard deviation can be found using the formula sqrt[((92-106.3)^2 + (177-106.3)^2 + ... + (85-106.3)^2) / (9-1)], which is about 31.5 thousand dollars.
Now, for part (b), we can use the formula for a confidence interval, which is x ± z*(s/ sqrt(n)), where x is the mean, z is the z-score (for a 90% confidence interval, it's 1.645), s is the standard deviation, and n is the sample size. Plugging in the values we have, we get 106.3 ± 1.645*(31.5/sqrt(9)). This gives us the confidence interval as 79.1 thousand dollars to 133.5 thousand dollars.
So, if you're planning to start a candy store franchise, you can be 90% confident that the average startup cost will be between 79.1 and 133.5 thousand dollars.
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You are an owner of a bakery, and you meet with other neighborhood bakery owners. Consider that fresh baked goods and processed baked goods are substitutes. In an attempt to increase sales, you collectively decide to lower prices of fresh baked goods by 10%. Which of the following are consequences of this price change? Choose one or more: A. The supply of fresh baked goods will increase. B. The quantity supplied of fresh baked goods will decrease. C. The supply of fresh baked goods will decrease. D. Demand for processed baked goods will decrease. E. The demand for fresh baked goods will not change. F. The demand for fresh baked goods will increase. 1st attempt
Based on the available options the most likely consequences of lowering prices of fresh baked goods by 10% are options D. and F.
The consequences of lowering prices of fresh baked goods by 10% can be analyzed as follows:
A. The supply of fresh baked goods will increase: This is not necessarily true. Lowering prices may encourage bakery owners to produce and supply more fresh baked goods to meet the increased demand, but it relies on the particular conditions and the elasticity of supply.
B. The quantity supplied of fresh baked goods will decrease: This is unlikely to happen if the price reduction is aimed at increasing sales. Lower prices generally motivate suppliers to increase the quantity supplied.
C. The supply of fresh baked goods will decrease: This is not likely to occur as a result of reducing prices. Lower prices typically lead to an increase in supply, not a reduction.
D. Demand for processed baked goods will decrease: This is possible. If fresh baked goods become more inexpensive due to the price reduction, consumers may switch from processed baked goods to fresh ones, leading to a reduction in demand for processed baked goods.
E. The demand for fresh baked goods will not change: This is unlikely. Lowering prices generally stimulates demand, as it makes the product more desirable and affordable to consumers.
F. The demand for fresh baked goods will increase: This is a possible consequence. Lowering prices can lead to a boost in demand for fresh baked goods, as it makes them more appealing and available to consumers.
Based on the given options, the most likely consequences of lowering prices of fresh baked goods by 10% are D. Demand for processed baked goods will decrease, and F. The demand for fresh baked goods will increase.
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000 During July: Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO method, the number of equivalent units of conversion costs was:
The number of equivalent units of conversion costs for Penny, Inc. for the month of July using the FIFO method is 14,380 units.
To calculate the number of equivalent units of conversion costs using the FIFO method, we first need to account for the work needed to complete the beginning inventory and add the work done on the units started and completed during the month. Then we calculate the equivalent units for the ending inventory.
The beginning inventory had 850 units, 60% complete. This means that they were 40% incomplete regarding conversion costs at the start of the month. To finish these units, Penny, Inc. would need to complete the remaining 40% of the conversion work on the 850 units which is 850 units * 40% = 340 equivalent units of conversion costs for the beginning inventory.
Since 15,000 units were started and the ending inventory was 1,600 units (40% complete), then 15,000 units - 1,600 units = 13,400 units were fully completed in July. So, we have 13,400 units * 100% = 13,400 equivalent units for the units started and completed during the month.
For the ending inventory, which is 1,600 units at 40% completion, we calculate the equivalent units as follows: 1,600 units * 40% = 640 equivalent units of conversion costs.
Adding these up gives us: 340 (completion of beginning inventory) + 13,400 (started and completed) + 640 (ending inventory) = 14,380 equivalent units of conversion costs for the month of July.
Trade will take place: A. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good. B. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. C. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good. D. none of the above.
Answer: (B.) If the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
Explanation:
A producer will only sell goods and services if the consumer is willing to pay as much as the asking price. i.e. The price that the producer is asking. For this to happen the consumer's willingness to pay must be greater than the minimum price.
Therefore , the trade will take place if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
Trade occurs if a consumer's maximum willingness to pay exceeds the minimum price a producer will accept, benefiting both parties with a consumer surplus and a producer surplus. So, option B is correct.
Trade will take place if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. This scenario enables both the consumer to obtain the item for less than the maximum they were willing to pay, creating a consumer surplus, and the producer to sell the item for more than their minimum acceptable price, leading to a producer surplus. These conditions drive trade since both parties are made better off through the transaction.
The cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $140,000, and total direct labor costs would be $100,000. During May, the actual direct labor cost totaled $13,500, and factory overhead cost incurred totaled $19,200. Required: What is the predetermined factory overhead rate based on direct labor cost?
Answer:
The 140% is the predetermined factory overhead rate based on direct labor cost.
Explanation:
The given information is shown below:
Total factory overhead cost - $140,000
Total direct labor costs - $100,000
Actual direct labor cost - $13,500
Factory overhead cost - $19,200
By using these information, it is easy to compute predetermined factory overhead rate which is based on direct labor cost. The formula is shown below:
= Total factory overhead cost ÷ Total factory overhead cost
= ($140,000 ÷ $100,000) × 100
= 1.4 × 100
= 140%
Other cost is irrelevant and thus not be considered while computing predetermined factory overhead rate.
Hence, the 140% is the predetermined factory overhead rate based on direct labor cost.
Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. The company has grown by over 150 percent in the past year. Dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as Wikipedia's Jimmy Wales. What can Dominic do to exemplify the social entrepreneurship model?
Answer:
He should provide catered food for homeless on weekly basis.
Explanation:
Impromptu catering was founded by Dominic, who is an emerging entrepreneur in the catering business. He is famous for his deadlines which provides catering and decoration services in less than a 24 hour deadline. The company has grown to 150% in just one year. Dominic gives his success credit to the strategies of prominent social entrepreneur which he studied over the years. So he should also do something unique that would make him demonstrate or exemplify the social entrepreneurship model. So he should provide catered food to the homeless people on weekly basis. This would set an example for others as well.
Dominic can model his impromptu catering company on social entrepreneurship by adopting sustainable practices, fair employment, charitable contributions, and possibly a 'One for One' model to create social value alongside business growth.
Focusing on key principles such as sustainable sourcing, equitable employment practices, and contributing to social causes, Dominic's impromptu catering business could align with the ethos of companies like The Body Shop, Ben & Jerry's, and Newman's Own. These companies have successfully merged commercial success with a steadfast commitment to social impact, with initiatives like using natural and responsibly sourced ingredients, maintaining a fair pay scale, and donating profits to charity. Following the example of TOMS Shoes, Dominic could also consider a 'One for One' model, where for every event catered, his company provides a healthy meal to those in need, thereby turning every business transaction into a moment of social contribution.
Moreover, Dominic should consider transparency, ensuring that his customers are aware that while his business is for-profit, it operates with a strong commitment to social values. By embodying these qualities and engaging in activities that carry out substantial social change, Dominic's venture could serve as a paradigm of social entrepreneurship, thus redefining the landscape of catering services with a socially responsible business model.
On June 1, 2018, Blue Co. distributed to its common stockholders 180,000 outstanding common shares of its investment in Red, Inc. an unrelated party. The book value on Blue’s books of Red's $1 par common stock was $1.20 per share. Immediately after the declaration, the market price of Red's stock was $3.40 per share. In its income statement for the year ended June 30, 2018, what amount should Blue report as gain before income taxes on disposal of the stock? (Do not round your intermediate calculation.)
Answer:
Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
Explanation:
Book value per share of Red Inc = $1.20 per share
As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.
Net gain = Sale price - Book value
= $3.40 - $1.20 per share = $2.2 per share
Total gain for the year end on June 30 will be
= $2.2 per share X 180,000 shares = $396,000 shares
Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.
A __________ is what customers expect they will get by purchasing a product. A. Brand promise B. A tagline C. Warranty D. Service mindset Please select the best answer from the choices provided A B C D
Your question asks what answer choice best describes what a customer expects when purchasing a product.
Answer: A). Brand promiseThe reason why answer choice "A). Brand promise" would be the correct answer because this is what customers expect when they buy a product.
Brands like to give advertisements that promise the consumers that they will enjoy their product and will not regret buying it, and that's what customers expect when they buy and use the product
Brand promise is a "saying" or "statement" that a company/brand makes about their products that a customer will expect to experience when they have the product. It's more so like a slogan.
For example, Geico says that customers can save 15% or more on car insurance from them. This means that customers would expect to save 15% or more on car insurance if they choose Geico.
I hope this helps!Best regards,MasterInvestorA brand promise is what customers expect from a product, reflecting the essence of what the brand offers in terms of quality and experience, which is distinct from taglines, warranties, or service mindsets.
A brand promise is what customers expect they will get by purchasing a product. This is different from a tagline, which is a catchy phrase associated with the brand; a warranty, which is a promise to fix or replace the product; or a service mindset, which reflects a company's overall approach to customer service. When considering options like money-back guarantees and service contracts, these are explicit forms of reassurance that sellers provide to instill confidence in the consumer, but they are not what a brand promise entails. A brand promise is the essence of what the brand offers and what customers anticipate receiving in terms of product quality, service, and overall experience.
Martha was promised a 10% raise if she wins a contract with the city government. Martha could use the money to pay off some debts. However, she happens to know that another company already has informally won the contract. There is a very slim chance that she could win the contract away from the other organization, but she does not believe she can do it. According to expectancy theory, Martha is unmotivated to try to win the contract because she lacks __________.
Answer:
The answer is expectancy.
Explanation:
Expectancy theory is a concept developed by Victor H. Vroom in 1964, where he postulated, that the strength an individual has in terms of his or her motivation to do an action, would appear when three components are satisfied to a certain value: expectancy, instrumentality, and valence. The question above is relevant to the expectancy component, which is detailed as the belief that an individual has regarding their efforts would result in the individual choosing to perform an action. In the case of Martha, she wasn’t sure that her efforts in trying to win the contract would lead to her 10% raise (outcome, a component of instrumentality), and thus, she decided not to try.
Martha lacks 'expectancy' according to expectancy theory. This means that she does not believe her efforts will lead to a successful outcome, therefore decreasing her motivation to try. Other theories also suggest that motivation could be influenced by belief in personal ability, a need for financial stability, and other interpersonal and personal affairs.
Explanation:According to expectancy theory, Martha is unmotivated to try to win the contract because she lacks expectancy. Expectancy is an individual's belief in their ability to succeed in a specific task, in this case, Martha winning the contract. Martha's lack of belief in her ability to win the contract diminishes her motivation to try, as she does not believe her efforts will result in a favourable outcome. This aligns with the self-efficacy theory proposed by Albert Bandura, where an individual's belief in their own capabilities plays a pivotal role in motivating behavior.
Furthermore, Martha's situation could also be observed through Maslow's Hierarchy of Needs. The promise of a raise (a physiological need) could motivate her to strive harder. However, due to her limited expectancy, the incentive may not be effective. Similarly, the Efficiency Wage Theory suggests that workers' productivity (or in this case, effort) depends on their pay. Yet, if the potential pay increase does not seem achievable, it may fail to motivate the worker.
There are other factors that can motivate people beyond the financial benefit, such as the sense of accomplishment, positive interactions with others, forming deep relationships, asserts of dominance, and enjoying what they do. But ultimately, one's expectancy to achieve the goal is critical to motivation.
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Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2018. Stanford incurred the following expenses: Total investigation costs related to the restaurant $33,000 Total investigation costs related to the bakery 51,400 If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar.
Answer:
deduction available would be $4131.11
Explanation:
Here in the question we have to take out what is the maximum amount that Stanford can deduct for investigating expenses.
First of all it is important to know that the deductions in investigation expenses would be allowed only when Stanford would purchase that business( restaurant or bakery), but here it is told that the Stanford has purchased bakery not restaurant , so therefore there will be no deductions for investigation expenses related to the restaurant .
But since he has purchased bakery the deduction of only $5000 is allowed to him . Here the deduction is taken on basis of dollar for dollar expense in amount which is in excess of $50,000. So the calculation of it would be like this -
amount in excess of $50,000 = $51,400 - $50,000
= $ 1400
Now subtracting this amount from $5000, to see how much amount would be deducted now and how much would remain for to be amortized over next 180 months.
$5000 - $1400
= $3600 ( amount which will be deductible now)
now subtracting this from $51,400,
$51,400 - $3600 = $47,800
$47,800 is the amount that will be left over to be amortized over next 180 months, as PER MONTH AMOUNT WILL BE
$47,800 / 180
= 265.55
and there are only 2 months left for year to be over, so
$265.55 x 2 = $ 531.11
Now the total deduction would be =
$3600 + $531.11
= $4131.11
Stanford's $33,000 investigation cost for the failed restaurant acquisition is a sunk cost and immediately expensed. The $51,400 cost for the successful bakery acquisition can be capitalized and added to the basis of the bakery.
Explanation:In business accounting and taxation, certain acquisition-related costs are treated differently. The $33,000 that Stanford spent on investigating the restaurant acquisition, which was not completed, is considered a sunk cost and is not recoverable or capitalized, but rather, it typically is expensed in the current period. On the other hand, the $51,400 spent investigating the bakery acquisition, which was completed, can be capitalized and added to the basis of the property (i.e., the bakery). Therefore, that cost is not immediately deducted but rather will affect the calculation of gain or loss when the property is eventually disposed of.
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To find out as much as you can about the market for your potential business, be sure to talk to
A. the local bookstore owner. B. potential employees. C. potential customers. D. anyone who may compete with you locally.18
To find out as much as you can about the market for your potential business, be sure to talk to potential customers.
Answer:potential customers - C.
Answer:
The correct answer is letter "C": potential customers.
Explanation:
At the moment of starting a new business, it is imperative to carry out polls so we can identify what exactly the needs of our potential consumers are and if the good or service we intend to offer matches those needs. That poll will give us a clear idea or what our market will be and, if necessary, can be carried out more than once to check if possible adjustments made to our initial planned good or service would be translated in higher profits.
How does bicarbonate (HCO3−) help alleviate heartburn symptoms? A. Bicarbonate solution dilutes the excess stomach acid. B. It has a soothing effect on acid-damaged tissues. C. It reacts with excess stomach acid and neutralizes it. D. It creates an antacid.
Answer:
The correct option is c) it reacts with excess stomach acid and neutralizes it.
Explanation:
Bicarbonate (HCO3-) , which is also know as sodium bicarbonate is nothing but a type of salt which includes both sodium and bicarbonate ions. Doctors recommend this in case of heartburn, as this is a very common remedy available to everyone in any pharmacy . This sodium bicarbonate consists of what we call an alkaline pH , which helps in giving relief from excess stomach acid, but it is important to remember that this is a temporary solution for the problem of stomach acid.
Bryan, who is 45 years old, had some surprise medical expenses during the year. To pay for these expenses (which were claimed as itemized deductions on his tax return), he received a $20,000 distribution from his traditional IRA (he has only made deductible contributions to the IRA). Assuming his marginal ordinary income tax rate is 15%, what amount of taxes and/or early distribution penalties will Bryan be required to pay on this distribution?
Answer:
The amount of income tax that Bryan would have to pay is $3000 and he would not pay any early distribution penalties.
Explanation:
In this question it is being told that the surprise medical expenses which Bryan had to incurred were qualified as per the IRA that's why these were claimed as itemized deductions on his tax return. Since these expenses were qualified as per IRA distribution , no penalties would taken on it. Usually there is 10% early distribution penalty but here it is not valid. So Bryan is only required to give income tax on whole $20,000.
INCOME TAX = $20,000 X 15%
= $3000
GoPro's earnings before interest and taxes (EBIT) was \$190$190 million. Assuming GoPro's tax rate is 35\%35%, what is their net operating profit after taxes (NOPAT) for 2014 expressed in million of dollars? *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.
Answer: 123.5
Explanation: Earnings before interest and tax,that is, EBIT is sometimes used synonymously with operating income is the profits of company before deducting income tax expense and interest expense. These are used to evaluate the performance of company before tax and capital structure affecting it. NOPAT that is net operating profit after tax is calculated by deducting interest and tax from EBT.
THAT IS,
NOPAT = EBT (1- tax rate)
since there is no interest-
EBIT= EBT
Therefore,
NOPAT = 190(1- 35%)
= 123.5
To calculate GoPro's net operating profit after taxes (NOPAT) for 2014, we multiply the earnings before interest and taxes (EBIT) by (1 - the tax rate).
Explanation:To calculate net operating profit after taxes (NOPAT), we need to multiply the earnings before interest and taxes (EBIT) by (1 - tax rate). In this case, GoPro's EBIT is $190 million and the tax rate is 35%, so the calculation would be:
Calculate the tax amount by multiplying the EBIT by the tax rate: 190 million * 0.35 = 66.5 millionSubtract the tax amount from the EBIT to get the NOPAT: 190 million - 66.5 million = 123.5 millionTherefore, GoPro's net operating profit after taxes (NOPAT) for 2014 is $123.5 million.
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Alpha Company provided the following data concerning its income statement: sales, $850,000; purchases, $368,000; beginning inventory, $255,000; ending inventory, $282,000; operating expenses, $105,000; freight-in, $5,000; sales discounts, $17,000; purchases discounts, $15,000; sales returns & allowances, $107,000; and purchases returns & allowances, $41,000. The data are complete and provide the basis for preparation of an income statement. How much is net income?
Answer:
NET INCOME: 341,000
Explanation:
Inventory equation:
beginning inventory + purchase = COGS + ending inventory
base on your information we need to get the net purchases and COGS so:
purchases 368,000
freight-in 5,000
return and allowance -41,000
purchase discount -15,000
net purchases 307,000
Now we replace in the inventory equation with the know values
255,000 + 307,000 = COGS + 282,000
and we solve for COGS
COGS = 280,000
Now we have to determinate the net sales:
sales 850,000
sales discount -17,000
return&llowances -107,000
net sales 726,000
Finally we proceed with the net income statment
net sales 726,000
COGS -280,000
Gross Profit 446,000
operating expenses -105,000
Net Income 341,000