Answer:
$140,000
Explanation:
For computing the dividend to the common stockholders, first we have to find out the yearly dividend which is shown below:
= Number of shares × par value per share × dividend rate
= 25,000 shares × $10 × 8%
= $20,000
Dividend paid in 2011 would be
= 2009 dividend + 2010 dividend + 2011 dividend
= $20,000 + $20,000 + $20,000
= $60,000
Out of $2000,000, the $60,000 will be paid to preference stockholders and the remaining $140,000 will be paid to equity stockholders
You own shares in Supernova Inc. that were purchased at a price of $23 per share. Quicksilver
Inc. has offered to purchase Supernova Inc. and buy your shares at a price of $34 per share.
What will be your return if you tender your shares to Quicksilver Inc. and the deal is
completed?
A) 47.83%
B) 33.48%
C) 50.22%
D) 45.43%
Answer:
A) 47.83%
Explanation:
The computation of the return is shown below:
= (Supernova price per share - owned purchase price per share) ÷ (owned purchase price per share) × 100
= ($34 per share - $23 per share) ÷ ($23 per share) × 100
= ($11 per share) ÷ ($23 per share) × 100
= 47.83%
Simply we take the difference per share and then divide it by the owned purchase price per share so that the accurate rate of return can be computed
Keren Wiseman is an employee of Dimensionworks Designs in New Mexico. She received the following achievement awards from her employer during 2017: Best Design, Santa Fe County: $1,340 Top Graphic Layout, New Mexico: $1,775 Employee of the Year: $785Required:How much of her achievement award income is taxable? ____
Answer:
$2,300
Explanation:
Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income.
The excludable amount or deduction is $1,600 out of total amount of awards.
Total amount of awards = Design + Graphic + Employee of the year
= $1,340 + $1,775 + $785
= $3,900
Taxable awards = Total amount of awards – Excludable amount
= $3,900 – $1,600
= $2,300
However, because the $3,900 total value of the awards is more than $1,600, Keren must include $2,300 in his taxable income.
A sustainable competitive advantage is gained:
A. when a company has durable competitive assets that are central to its strategy and superior to those of rival firms. B. when a company has sufficient resources to expedite its strategy.
C. when a company realizes its inherent weaknesses are transformable to advantages.
D. when a company can stand out relative to rivals because of resource utilization.
Answer:
A. When a company has durable competitive assets that are central to its strategy and superior to those of rival firms.
Explanation:
A sustainable competitive advantage is basically the strength to hold on sustainably no matter what.
Bramble Industries purchased $9,100 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,300 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Assuming that Bramble uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO VIDEO Assuming that Bramble uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO VIDEO At what amount would the purchase on February 1 be recorded if the net method were used? (Round answer to 0 decimal places, e.g. 6,578.)Net price $
Answer:
The first two solutions are attached in the excel document.
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation:
Solution 3:
Amount at which purchase on February 1 be recorded if the net method were used = $9,100*90%*97% = $7,944
Suppose that the stock market experiences a significant and prolonged decline. In response, the Federal Reserve lowers the federal funds interest rate. Not long afterward the interest rate decline, there is a large positive shock to investment spending. As a result of both the monetary policy action and the investment spending shock:
O actual output may go above potential outputO inflation will increase more than the FOMC had intendedO the unemployment rate will be below the natural rateO all of the above
Answer:
a decrease in the interest rate and a positive increase in the demand will increase the demand that will increase the actual output that will go beyond the potential output and increase the inflation and decrease the unemployment rate.
Explanation:
a decrease in the interest rate and a positive increase in the demand will increase the demand that will increase the actual output that will go beyond the potential output and increase the inflation and decrease the unemployment rate.
Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. Sold 7,000 shares of $30 par common stock for $69 per share. Sold equipment with a book value of $45,100 for $64,900. Purchased land for $417,000 cash. Purchased a building by paying $85,000 cash and issuing a $100,000 mortgage note payable. Sold a new issue of $320,000 of bonds at 99. Purchased 5,400 shares of $20 par common stock as treasury stock at $39 per share. Paid dividends of $2.00 per share. There were 33,000 shares issued and 5,000 shares of treasury stock.
Answer:
Explanation:
The effects of (cash receipt or payment and amount) is shown below:
Retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. - cash payment of $198,000
Sold 7,000 shares of $30 par common stock for $69 per share - cash receipts for $483,000 (7,000 shares × $69)
Sold equipment with a book value of $45,100 for $64,900 - cash receipts for $64,900
Purchased land for $417,000 cash - cash payment for $417,000
Purchased a building by paying $85,000 cash and issuing a $100,000 mortgage note payable - cash payment for $85,000
Sold a new issue of $320,000 of bonds at 99 - cash receipts for $316,800 ($320,000 × 0.99)
Purchased 5,400 shares of $20 par common stock as treasury stock at $39 per share - $210,600 (5,400 shares × $39)
Paid dividends of $2.00 per share. There were 33,000 shares issued and 5,000 shares of treasury stock - cash payment for $52,000
(33,000 shares - 5,000 shares) × $2
Which of the following reports filter data before it is presented to the manager as information, and only includes information about records that are out of the ordinary or not according to some standard?A) summaryB) exceptionC) externalD) detailedE) none of these
Answer: Option A
Explanation: In wimples words, a summary report refers to the statement that is prepared by the organisation with the sole objective of helping the executive level managers in their decision making.
Such reports go through various phases and is converted from a detailed explanation to the points that are most relevant to the organisation. It provides a short form detail of the factors that needs most attention of top managers.
As the top managers have to attend a number of sues they will be unable to make any step from detailed information as that will be time consuming for them.
As the manager of a workforce with particularly stressful jobs, you plan to present techniques to help your workforce more effectively regulate emotions. Recognizing that these are individuals working in situations where they are not able to control the sources of stress, what technique would be most appropriate to teach your workforce?
Answer:
The most appropriate technique to teach the workforce would be "Cognitive Reappraisal".
Explanation:
"Cognitive Reappraisal" is a technique for managing emotions that involves an individual, realizing and accepting he has no control over a situation, and then choosing to think about the situation in a way which helps to create a positive emotional response rather than a negative one.
This technique will help the workforce regulate emotions more effectively.
You are an economic adviser to a candidate for national office. She asks you for a summary of the economic consequences of a balanced-budget rule for the federal government and for your recommendation on whether she should support such a rule. How do you respond?
Answer:
Recommendation: Do not support such rule
Explanation:
This type of budget rules restrain governments from employing taxes and transfers as automatic stabilizers. This due to the fact that these rules tend to bring deficits and surpluses.
Cardinal Company s considering a project that would require a $2,782,000 Investment in equlpment with a useful life of five years. At the end of five years, the project would terminate and the equlpment would be sold for its salvage value of $200,000 The company's discount rate ls 18%. The project would provide net operating income each year as follows: 2,873,000 Sales Variable expenses 1,019,000 1,854,000 Contribution margin Fixed expenses: Advertising, salaries, and other 754,000 fixed out-of-pocket costs 516,400 Depreciation Total fixed expenses 1,270,400 583,600 Net operating income13. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project’s actual net present value? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate calculations and final answer to the nearest whole dollar amount.)
Answer:
Project's net present value is: $-1,725,937.
Explanation:
Project actual variable cost = 45% x sales = $1,292,850 ( as variable expense ratio post-audit turns out to be 45%).
Actual net operating income each year = Sales - Variable cost - total fixed expenses = $309,750.
Thus, cash flows of the project will be:
Year 0: $-2,782,000.
Year 1 to Year 4: $309,750.
Year 5: 309,750 + 200,000 (salvage value of equipment) = $509,750
NPV of the project = -2,782,000 + [ (309,750/18%) x ( 1 - 1.18^-4) ] + 509,750/1.18^5 = $-1,725,937.
The Cardinal Company's project's actual net present value (NPV), considering the actual variable expense ratio of 45%, turns out to be -$1,743,727. This is calculated by revising the net operating income (NOI), calculating its present value over five years, and subtracting the net initial investment.
Explanation:In this scenario, Cardinal Company needs to evaluate its project using the actual variable expense ratio to find out the project's actual net present value (NPV). The initial variable expenses are $1,019,000, but with a new variable expense ratio of 45%, the actual variable expenses turn out to be $2,873,000 * 45% = $1,292,850. This change would decrease the contribution margin and thus the net operating income (NOI). The altered NOI is $2,873,000 - $1,292,850 - $1,270,400 = $309,750.
We need to calculate the present value of this annual NOI for five years and then subtract the net initial investment to find the actual NPV. Using a discount rate of 18%, the present value of the NOI over the five years is $309,750 * (1 - (1 + 18%)^-5) / 18% = $838,273. The net initial investment is $2,782,000 - $200,000 (salvage value) = $2,582,000. Hence, the actual NPV of the project is $838,273 - $2,582,000 = -$1,743,727, indicating a substantial loss to the company.
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A firm is considering taking a project that will produce $12 million of revenue per year. Cash expenses will be $5 million, and depreciation expenses will be $1 million per year. The project would also reduce the cash revenues of an existing project by $2 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate?
The project's annual free cash flow, considering the impact on the other project and the 40% marginal tax rate, is $2.6 million.
Explanation:The subject pertains to the determination of the annual free cash flow of a project. Free cash flow is calculated by subtracting cash expenses, tax, and the impact on revenues from other projects from the total revenue it produces.
Here's how it's done:
Determine the operating income, which is the total revenue minus cash expenses and depreciation expenses. Subtract $5 million and $1 million from $12 million, which yields $6 million.Calculate the tax by multiplying the operating income by the tax rate. Hence, $6 million multiplied by 40% (or 0.40) amounts to $2.4 million.Compute for the net operating profit after taxes (NOPAT) by subtracting the tax from the operating income. Thus, $6 million minus $2.4 million equals $3.6 million.Add back the depreciation to the NOPAT since it is a non-cash expense. So, $3.6 million plus $1 million results to $4.6 million.Finally, incorporate the impact on other projects, which in this case is a decrease in cash revenues of $2 million. Therefore, $4.6 million minus $2 million gives us a free cash flow of $2.6 million per year.Learn more about Free Cash Flow here:https://brainly.com/question/34881412
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To calculate the annual free cash flow, you subtract cash expenses and opportunity costs from revenue, add non-cash expenses, then subtract taxes on the remaining amount. The annual free cash flow for the project is $4 million.
In order to calculate the free cash flow for the project, we need to account for the operating cash flows, changes in net working capital, and expenditures. The operating cash flows can be derived from the project's revenue, expenses, and taxes. Depreciation is non-cash, so we add it back after deducting taxes. Additionally, the reduction in cash revenue from an existing project is considered an opportunity cost and must be subtracted to reflect the true incremental cash flows from the project.
Here is the step-by-step calculation:
Calculate total revenue: $12 million.Subtract cash expenses: $12 million - $5 million = $7 million.Account for the opportunity cost: $7 million - $2 million = $5 million.Add back depreciation (since it's a non-cash expense): $5 million + $1 million = $6 million.Calculate taxes (we apply the tax rate to revenue minus cash expenses, not including depreciation): ($7 million - $2 million) * 40% = $2 million tax expense.Get the after-tax operating cash flow: $6 million - $2 million = $4 million.The annual free cash flow of the project is $4 million.
The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: A. copycatting. B. employee empowerment. C. patent infringement. D. continuous improvement. E. benchmarking.
Answer:
E. benchmarking
Explanation:
Benchmarking is used to identify internal opportunities for improvement by identifying other organizations that are best at some aspects of your operations, studying and breaking down what makes those organizations perform better and then aiming to implement changes in your company in order to achieve the same standards of the analyzed organizations.
Which of the following statements is NOT true regarding a bill of material (BOM)?
A. A BOM lists the quantity of each coponent required to make one unit of a product.
B. A BOM lists the hierarchy of components and their description.
C. In the food-service industry, BOMs manifest themselves in portion-control standards.
D. A BOM cannot be referenced on other bills of material.
Answer:
The false statement is letter "D": A BOM cannot be referenced on other bills of material.
Explanation:
A Bills of Material or BOM is a complete list including raw material, pieces and components and the quantity of each one of them that is necessary to produce or repair a product. Usually, for complementary goods, the BOM of one of them can be referenced in the BOM of another so opportunities for reducing costs can be identified.
The false statement regarding a bill of material is that a BOM cannot be referenced on other bills of material. In fact, subassemblies can have their own BOMs, which are included in the BOMs of more complex assemblies. Hence, correct option D.
The statement D. A BOM cannot be referenced on other bills of material is not true regarding a bill of material (BOM). It is quite common in complex manufacturing processes for a BOM to reference other BOMs, especially when various subassemblies are involved in creating a final product. This hierarchical structure allows for more efficient material tracking and inventory management. Therefore, subassemblies can indeed have their own BOMs, which are referenced in the BOM of a more complex assembly.
A Bill of Material (BOM) serves several critical functions in manufacturing and production:
A BOM lists the quantity of each component required to make one unit of a product, ensuring accurate material planning.
It includes a hierarchy of components along with a descriptive list, organizing the components in a way that reflects their relationships within the product.
In the food-service industry, BOMs take the form of portion-control standards, specifying the amount of each ingredient used in a dish to maintain consistency and control costs.
Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year.
What was the company's turnover rounded to the nearest tenth?
A) 9.8
B) 10.2
C) 9.5
D) 9.2
Answer:
The company's turnover rounded to the nearest tenth: C) 9.5
Explanation:
Asset turnover helps investors understand how effectively companies are using their assets to generate sales. Asset turnover is calculated by using following formula:
Asset Turnover = Total Sales or Revenue/ Average Total Assets
where:
Average Total Assets = (Beginning Assets + Ending Assets )/2 = (Assets at the beginning of year +Assets at end of year )/2
In the House of Orange:
Average Total Assets = ($84,000 + $90,000)/2 = $87,000
Asset Turnover = $826,650/$87,000 = 9.5
Final answer:
The company's turnover is found by dividing sales by average operating assets. Sales were $826,650 and the average operating assets were $87,000, resulting in a turnover of approximately 9.5 when rounded to the nearest tenth.
Explanation:
To find the company's turnover, we need to use the formula for asset turnover ratio, which is calculated by dividing sales by average operating assets. For the House of Orange, the sales were $826,650, and the average operating assets are the average of the beginning and end of year assets, which are $84,000 at the beginning and $90,000 at the end. Thus, the average operating assets are calculated as ($84,000 + $90,000) / 2 = $87,000.
Now, we use the sales and average operating assets to find the turnover: Turnover = Sales / Average Operating Assets = $826,650 / $87,000 ≈ 9.506, which rounded to the nearest tenth is 9.5. So, the correct answer would be (C) 9.5.
The population of deer in a certain area of Stanly county grows proportional to itself. The population of deer in 2000 was found to be 145, and by 2010 the population had frown to 185. Find the growth constant k (rounded to 6 decimal places), and the expected deer population in 2013.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Aerelon Airways, a commercial airline, suffers a major crash. As a result, passengers are
considered to be less likely to choose Aerelon as their carrier, and it is expected free cash flows
will fall by $15million per year for five years. If Aerelon has 55 million shares outstanding, an
equity cost of capital of 10%, and no debt, by how much would Aerelonʹs shares be expected to
fall in price as a result of this accident?
A) $0.93
B) $1.03
C) $1.14
D) $1.34
Answer:
Option B $1.03
Explanation:
First lets calculate present value = cash flow(PVAF, life, rate) where PVAF = present value annuity factor
= 15(PVAF, 10, 5 years)
from the annuity table
Present value = 15 * 3,790 = $56.8618 million
The decrease in Present value will be $56.8618 million
Decrease in price = present value/number of share = 56.8618/66 = 1.033851 approx $1.03
Final answer:
Aerelon's shares are expected to fall by $1.14 per share due to the crash. This is calculated by determining the present value of the lost free cash flows at a 10% discount rate and dividing by the number of shares outstanding.
Explanation:
To calculate how much Aerelon’s shares are expected to fall in price as a result of the crash, we need to determine the present value (PV) of the loss in free cash flows (FCF). The total loss in FCF is $15 million per year for five years. Using the given equity cost of capital which is 10%, we can discount these future cash flows to the present value. We then divide this total loss in present value by the number of shares outstanding to determine the per-share price impact.
Calculating the Present Value of the Loss in Free Cash Flows:
The formula for the present value of an annuity (a series of equal payments at regular intervals) is PV = FCF × [(1 - (1 + r)^(-t)) / r], where FCF is the annual free cash flow, r is the equity cost of capital, and t is the number of years.
PV = $15 million × [(1 - (1 + 0.10)^(-5)) / 0.10]
PV = $15 million × [(1 - (1 + 0.10)^(-5)) / 0.10]
PV = $15 million × [4.16986]
PV = $62.5479 million
Calculating the Per-Share Price Impact:
The total present value of the loss is divided by the number of shares outstanding to find the per-share impact.
Share price impact = PV / Number of shares
Share price impact = $62.5479 million / 55 million shares
Share price impact = $1.14
Therefore, as a result of the crash, Aerelon’s shares would be expected to fall by $1.14 per share, which corresponds to option C.
Throughout history, all sorts of interesting things have been used as money, including fresh fish and cattle. Fresh fish is not an effective form of money. What essential characteristic of money does fresh fish lack that most makes it ineffective? allocated by the government store of value medium of exchange stackablity unit of account Cattle is not an effective form of money. What essential characteristic of money does cattle lack that most makes it ineffective? store of value medium of exchange stackability unit of account allocated by the government
Answer: Medium of exchange
Explanation:
The most essential quality of money lacked by both Fish and Cattle is medium of exchange which implies having an item that will help in determining the rate of exchange for different products. Both cannot be used for this purpose for lack of homogeneity, divisibility, portability etc.
Both items can be allocated by the Government, used in storing value, they are stackable and can both work as units of accounts.
The investments of Steelers Inc. include a single investment: 42,730 shares of Bengals Inc. common stock purchased on September 12, Year 1, for $14 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $12 per share.
Required:
A. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles.
B. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements?
Answer:
Explanation:
A. The journal entries are shown below:
On September 12
Investment A/c - Bengals Inc A/c Dr $598,220 (42,730 × $14)
To Cash A/c $598,220
(Being the acquired investment including brokerage commission is recorded)
On December 31
Unrealized gain or loss on available-for-sale securities A/c Dr $85,460
To Valuation allowance for available-for-sale securities $85,460
(Being decline in share value is recorded)
The computation is shown below:
= 42,730 shares × ($14 per share - $12 per share)
= 42,730 shares × $2 per share
= $85,460
B. The unrealized gain or loss for available-for-sale investments is shown in the Stockholder equity section on the balance sheet. It is to be shown in the negative item in the equity section.
Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?
a. based on magnitude of government social programs
b. based on corruption based on competitiveness
c. based on cost of doing business
d. based on average duration between presidential/prime minister elections
Answer:
b. based on corruption based on competitiveness
Explanation:
Competing globally and enhancing a nation’s position internationally are characteristically linked to the welfare of citizens. In fact, in today’s world, improving the welfare of citizens has become a priority for responsible governments and those which aspire to be global actors.
Liberalization, globalization of business, and access to information have induced governments in many parts of the world to demonstrate to their constituencies that they are responsive and committed to fostering a healthy economy.
Horner Company buys a delivery van with a list price of $70,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days. Sales taxes amount to $930 and the company paid an extra $700 to have a special device installed. What should be the recorded cost of the van?
a. $58,310.
b. $59,907.
c. $59,940.
d. $59,240.
Answer:
c. $59,940.
Explanation:
The computation of the recorded cost of the van is shown below:
= Net price - net price × cash discount + sales tax + extra amount paid for special device installed
where,
Net price = $70,000 - $70,000 × 15%
= $70,000 - $10,500
= $59,500
And, the other items values would remain the same
Now put these values to the above formula
So, the value would be equal to
= $59,500 - $59,500 × 2% + $930 + $700
= $59,500 - $1,190 + $930 + $700
= $59,940
Final answer:
To find the recorded cost of the van, calculate the net price after discounts, add sales taxes and the cost of the special device. The correct recorded cost of the van is $59,940.
Explanation:
To find the recorded cost of the van, we need to calculate the net price after the discounts and then add the sales taxes and the cost of the special device.
The list price is $70,000.
The dealer grants a 15% reduction, which means a discount of $70,000 * 0.15 = $10,500.
The net price after the 15% reduction is $70,000 - $10,500 = $59,500.
The dealer also offers an additional 2% cash discount if payment is made in 30 days. This is a discount of $59,500 * 0.02 = $1,190.
The net price after both discounts is $59,500 - $1,190 = $58,310.
The sales tax is $930, and the cost of the special device is $700.
Therefore, the recorded cost of the van should be $58,310 + $930 + $700 = $59,940.
Therefore, the correct answer is c. $59,940.
The Z Corporation is considering an investment with the following data (Ignore income taxes.): Year 1 Year 2 Year 3 Year 4 Year 5 Investment $ (32,000) $ (12,000) Cash inflow $ 8,000 $ 8,000 $ 20,000 $ 16,000 $ 16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is:
Answer:
3.5 yeas
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $32,000
In year 0 = $12,000
In year 1 = $8,000
In year 2 = $8,000
In year 3 = $20,000
In year 4 = $16,000
In year 5 = $16,000
If we sum the first 3 year cash inflows than it would be $36,000
Now we deduct the $36,000 from the $44,000 , so the amount would be $8,000 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $16,000
So, the payback period equal to
= 3 years + $8,000 ÷ $16,000
= 3.5 yeas
In 3.5 yeas, the invested amount is recovered.
Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Baker. Labor costs will go from $1.90 to $2.40 per unit. In addition, their material costs have fallen from $6.82 to $5.82. Assume all period costs as reported on Baldwin's Income Statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product Baker would need to be sold next round to break even on the product?
A.759
B.874
C.1,047
D.848
Answer:
D.848
Explanation:
Please see attachment
The labor cost per unit has increased by $0.50 while the material cost has decreased by $1.00, leading to a net decrease in total unit cost by $0.50. If half of the new costs/savings are passed to the customers, there will be a net decrease in the selling price by $0.25 per unit. However, due to missing data such as unit selling price and fixed costs, we can't calculate the exact break-even point.
Explanation:First, let's calculate the impact of labor and material costs changes on the unit cost of product Baker. The labor cost per unit has increased by $0.50 ($2.40 - $1.90) but the material cost per unit has decreased by $1.00 ($6.82 - $5.82) resulting in a net decrease in the total unit cost by $0.50. If Baldwin decides to pass half of the new costs/savings to the customers, this means there will be a net decrease in the selling price by $0.25 per unit.
To calculate the number of units needed to break even, we need to know the unit contribution margin (the selling price per unit - unit variable cost). Since all period costs are said to remain the same, we can use this figure as the fixed cost in our break-even formula. Unfortunately, as important data such as the selling price per unit and fixed costs are missing, it's not possible to solve the break-even point problem.
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Jensen Company reports the following:
Direct materials used $345,000
Direct labor incurred 250,000
Factory overhead incurred 400,000
Operating expenses 175,000
Jensen Company’s period costs are
a. $345,000
b. $250,000
c. $400,000
d. $175,000
Answer:
d. $175,000
Explanation:
The computation of the period cost is shown below:
Period costs = Operating expenses
= $175,000
It records only that expenses which are incurred during the particular year. Examples - Salaries expense, Depreciation, Repairs, and maintenance, Advertising expense, sales commission, etc
All other information which is given is not relevant. Hence, ignored it
Final answer:
The Jensen Company's period costs are its operating expenses, which are not directly tied to production. The correct period cost given in the question is $175,000, representing the operating expenses.
Explanation:
The student asked what Jensen Company's period costs are, given a breakdown of expenses including direct materials, direct labor, factory overhead, and operating expenses. Period costs are those costs that are not directly tied to the production process and are expensed in the period they are incurred. From the options given, the correct answer is d. $175,000, which represents the operating expenses. These costs are not involved in manufacturing but rather in non-production activities of the company.
Excess reserves A. are reserves banks keep above the legal requirement. B. are reserves banks keep to meet the reserve requirement. C. are loans made at above market interest rates. D. are the deposits that banks do not use to make loans. Suppose the required reserve ratio is 1313% and a bank has the following balance sheet: Assets Liabilities Reserves $2 comma 0002,000 Deposits $10 comma 00010,000 Loans $8 comma 0008,000 This bank keeps required reserves of $nothing and excess reserves of $nothing. (Enter your responses as integers.)
Answer:
The correct answer is A
Required reserve is $1,300
Excess reserve is $700
Explanation:
Excess reserve is the capital reserve that is held by the financial institutions or the banks in excess or more of what is needed by the creditors, internal controls or the regulators.
So, it is the reserves banks need to keep above the legal requirements.
The required reserve is computed as:
Required reserve = Reserve ratio × Deposits
= 13% × 10,000
= $1,300
Excess reserve is computed as:
Excess reserve = Reserves - Required reserve
= $2,000 - $1,300
= $ 700
Excess reserves are funds that banks hold over and above the legal requirement set by the Federal Reserve. Based on the 13% reserve ratio and the bank's balance sheet, the required reserves are $1,300 and the excess reserves are $700.
Explanation:In response to your question, the excess reserves are reserves that banks hold in addition to the legal requirement. This means they surpass what's mandated by the Federal Reserve, and is not used for loans or investments. So, option A is correct in stating that excess reserves are the reserves banks keep above the legal requirement.
Looking at the bank's balance sheet with reserves of $2,000 and deposits of $10,000, you can calculate the required and excess reserves. Given that the required reserve ratio is 13%, the required reserves would be 13% of $10,000 which equals $1,300. Since the actual reserves are $2,000, the excess reserves would be $2,000 - $1,300 which equals $700.
So, the bank keeps required reserves of $1300 and excess reserves of $700.
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In economics, the term "capital" refers to :
A) mineral resources.
B) buildings and equipment.
C) consumer goods.
D) the money in one's pocket.
Answer:
D. the money in one's pocket
Explanation:
this is so because the financual assets needed fpr a business to produce good and/or services requires money
Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of _____.
a. physical constraints
b. nonphysical constraints
c. bottleneck activities
d. work order
Answer:
The correct answer is letter "B": nonphysical constraints.
Explanation:
According to the Theory of Constraints (TOC) a constraint is a limiting factor that does not enable companies to perform their work at their maximum capacity for their goals' achievement. In the same sense, nonphysical constraints are not material factors negatively influencing employees' actions. Wages cuts, reduction of benefits, unclear lines of command are examples of that kind of constraint.
A state constructs an office building. The construction is financed with: (1) a transfer of $1 million from the General Fund; (2) a grant of $2 million from the federal government; (3) bond proceeds of $7 million; and (4) earnings of $100,000 from temporary investment of bond proceeds. All transactions occur in one year. How much should be reported as Other financing sources in the Capital Projects Fund?
Answer:
$8 million
Explanation:
There are total 4 sources involved.
But the government grants are reduced from the cost of the the project. It is not recorded as other financing sources.
Also the earnings from bond proceeds shall not be considered for the other financing sources, as that is mere use of income.
Use of general fund in these capital projects will account for such other financing sources.
Cash received from issue of bonds for this project will also account for such capital fund.
Thus, total other financing sources = $1 million + $7 million = $8 million
In this scenario, the amount to be reported as 'Other financing sources' in the Capital Projects Fund totals $8.1 million, which is the sum of the transfer from the General Fund ($1 million), the bond proceeds ($7 million), and the earnings from temporary investments ($100,000).
Explanation:In accounting for government funds, the amounts reported as Other financing sources in a Capital Projects Fund typically include transfers from other funds, proceeds from long-term debt (bonds), and interest earned on temporary investments.
In your case, the state is funding the construction of an office building with: a transfer of $1 million from the General Fund (1), a grant of $2 million from the federal government (2), bond proceeds of $7 million (3), and earnings of $100,000 from temporary investment of bond proceeds (4).
The grant from the federal government would not typically be classified as 'Other financing sources' for the Capital Projects Fund. Instead, it would be classified as revenue. Therefore, the total amount to be reported as Other financing sources in the Capital Projects Fund would be the sum of items 1, 3, and 4: $1 million + $7 million + $100,000 = $8.1 million.
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Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?
$205.83
$216.67
$228.07
$240.08
$252.08
Answer:
future value = 240.076 = 240.08
so correct option is $240.08
Explanation:
given data
present value = $125
rate = 8.5 % = 0.085
time = 8 year
to find out
future value
solution
we get here future value that is express as
future value = present value × [tex](1+r)^{t}[/tex] ...........................1
here r is rate and t is time period
put here value in equation 1
future value = present value × [tex](1+r)^{t}[/tex]
future value = $125 × [tex](1+0.085)^{8}[/tex]
future value = 240.076 = 240.08
so correct option is $240.08
3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the marginal revenue curve is steeper than the demand curve for a single price monopolist?
Answer:
The answer is in a perfect competition profit is maximized when marginal cost equal marginal revenue and price is equal to average revenue and marginal revenue, while in monopolist profit is maximized when marginal cost is equal to marginal revenue.
Explanation:
The firm in a perfectly competitive market is a price taker,the price in the market is determined by the market forces of demand and supply. The firm has to sell their product at the ruling market price.The demand curve facing the firm in perfectly competitive market is horizontal or perfectly elastic, profit is therefore maximized when the marginal cost is equal to average revenue and marginal revenue. The firm in the market operate at the output level in which the price and marginal revenue is equal to marginal cost. Whatever prices that change the market demand or supply will change the demand curve faced by the firm.The firm cannot do anything to this than to accept the market price and the demand curve.
In a monopoly the demand curve is identical to the demand curve of the firm, because industry demand curve is downward sloping.The monopolist can either set the price or quantity not the two.when one is determined the value of the other will be determined by the demand function. The profit maximization of the monopolist also requires that marginal cost must be equal to marginal revenue just like in the case of perfect completion.when the monopolist equates MR and MC the monopolist determines its output and the market price for the product. The revenue curve is steeper than the demand curve,because the straight line is the market demand. The firm will have to reduce The price of the product if they want to sell more of their product the unit of the product sold is the AR which is equal to the price.Therefore the AR curve of the monopolist and the perfect competition MR and AR are both identical that informed the reason why the marginal revenue curve is steeper than the demand curve for a single price monopolist.
In a perfect competition market, the Marginal Revenue is equal to the price (MR = P), and for monopolist, the marginal revenue is not equal to the price, because changes in quantity of output affects the price.
Why is price equal to Marginal revenue in pure competition?Marginal revenue (MR) is an increase in the total revenue resulting from an increase in one unit of product. As the price always remains constant in perfect competition, increasing the total revenue from the production of 1 additional unit will be equal to the price.
Therefore, Price = Marginal Revenue (P = MR) in perfect competition.
In a monopoly the demand curve is the same as the firm's demand curve, in that the industry demand curve drops downwards. One owner can set the price or quantity and not both.
If one is determined the price of the other will be determined by the demand function. Increasing the monopolist's profit also requires that the marginal cost should be equal to the marginal revenue as if it were in perfect competition.
The Marginal revenue curve is steeper than the demand curve because a straight line is market demand. The firm will have to lower the Product Price if it wants to sell more of its product a unit of sale sold average revenue equal to the Price.
So the AR curve of AR monopolist and perfect competition MR and AR are both same.
Thus, this is the reason why the marginal revenue curve is steeper than the demand curve in the case of a monopolist.
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Suppose that you are a systems analyst on a project that involves modifying the sales order process. Since your company receives in the neighborhood of 2500 sales orders per day, how many do you need to sample if you want 95% certainty that you have covered all variations? What if the number of sales orders per day was 25,000 orders?
Answer:
Sample size = 384.16 ≈ 385
If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders
Explanation:
Data provided in the question:
Number of sales order received per day = 2500
Confidence level = 95%
Certainty factor for 95% certainty = 1.96
Now,
Sample size = [tex]0.25\times(\frac{\textup{Certainty factor}}{\textup{1 -Desired accuracy}})^2[/tex]
on substituting the respective values, we get
Sample size = [tex]0.25\times(\frac{\textup{1.96}}{\textup{1 - 0.95}})^2[/tex]
or
Sample size = 384.16 ≈ 385
If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders