Answer:
(a)140 years
(b)20 years
(c)8.75 years
Explanation:
The Rule of 70 is used in accounting to estimate the duration(number of years) it will take for the initial investment (P) to double in value given a particular interest rate (r) and an annual compounding period.
The Formula for the Rule of 70 is:
[tex]\text{Number of Years to Double}=\frac{70}{\text{Annual Rate of Return}}[/tex]
(a)Savings account earning 0.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{0.5}=140 years[/tex]
(b)A U.S. Treasury bond earning 3.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{3.5}=20 years[/tex]
(c)A stock market mutual fund earning 8.00% interest
[tex]\text{Number of Years to Double}=\frac{70}{8}=8.75 years[/tex]
Imagine that you are holding 5,100 shares of stock, currently selling at $30 per share. You are ready to sell the shares but would prefer to put off the sale until next year due to tax reasons. If you continue to hold the shares until January, however, you face the risk that the stock will drop in value before year-end. You decide to use a collar to limit downside risk without laying out a good deal of additional funds. January call options with a strike price of $35 are selling at $1, and January puts with a strike price of $25 are selling at $2. What will be the value of your portfolio in January (net of the proceeds from the options) if the stock price ends up at $21, $30, $41? What will the value of your portfolio be if you simply continued to hold the shares?
Answer:
If stock is continued to hold $107,100, $153,000, $209,100.
Explanation:
The first step is to calculate the value of your portfolio if u simply continued to hold the shares.
The stock holding = 5100
the current price = 30
The value of the portfolio is = 5100 * 30 =$ 153,000
The strike price= $21
The portfolio value is = 5100 * $21 = $107,100
The stock price = 5100 * $41 = $209,100
Thus,
The value of the portfolio calculation (net option proceed)
The current price =$30
Value of portfolio = Holding value + received from call option + paid to buy option
=5100 * 30 + 5100 * 1-5100 * 2
= $147,900
The strike price = $21
The January stock price = $ 25
The profit of option selling = $25 -$21 = $4 * 5100 = $20, 400
Value of portfolio = Holding value + received from call option + paid to buy option
= 5100 * 21 + 5100 * 1-5100 *2 + $20,400
which is = $122,400
Then,
The strike price = $4
The selling option loss = $41-$35= $6 * 5100 = $30,600
Value of portfolio = Holding value + received from call option + paid to buy option
which is = 5100 * 41 + 5100 * 1-5100 * 2 + $30,600
= $173, 400
Therefore
Stock price $21 $30 $41
if collar used $122,400 $147,900 $173,400
If stock is continued to hold stocks$107,100 $153,000 $209,100
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,100 account of a customer, C. Green. On March 9, it receives a $600 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green.
Answer:
1.
January 31
Dr. Allowance for uncollectible accounts $1,100
Cr. Account Receivable $1,100
2.
March 9
Dr. Cash $600
Cr. Account Receivable $600
Dr. Account Receivable $600
Cr. Allowance for uncollectible accounts $600
Explanation:
A receivable is written off on January, 31, it reduces the account receivable balance and record this amount in Allowance for uncollectible account to adjust the value in the expense for the period by making adjusting entry later on.
When the amount recovered from the written off receivable the entry reversed by passing through the receivable account to again settle that receivable amount in the Allowance for uncollectible account. It effect will be adjusted in the period end adjusting entries.
inancial information for Forever 18 includes the following selected data: ($ in millions except share data) 2021 2020 Net income $ 207 $ 124 Dividends on preferred stock $ 32 $ 23 Average shares outstanding (in millions) 300 200 Stock price $ 11.37 $ 10.32 Required: 1-a. Calculate earnings per share in 2020 and 2021. (Enter your answers in millions (i.e. 5,500,000 should be entered as 5.5).)
Answer:
$0.51 per share and $0.58 per share
Explanation:
The computation of the earning per share is shown below:
As we know that
Earning per share = (Net income - Dividends on preferred stock) ÷ (Average shares outstanding)
For 2020, it is
= ($124 - $23) ÷ (200 millions)
= $0.51 per share
And for 2021, it is
= ($207- $32) ÷ (300 millions)
= $0.58 per share
We simply applied the above formula
Ideally, a company reaches a point where increases in operating efficiency mean that expenses as a percentage of sales revenue flatten or even decline. This is referred to as ________.
Answer:
Ideally, a company reaches a point where increases in operating efficiency mean that expenses as a percentage of sales revenue flatten or even decline. This is referred to as operating leverage.
Ideally, a company achieves a point called constant economies of scale, where operating efficiency improvements cause expenses as a percentage of sales revenue to flatten or decline, signaling significant operational efficiency.
Ideally, a company reaches a point where increases in operating efficiency mean that expenses as a percentage of sales revenue flatten or even decline. This is referred to as constant economies of scale. Constant economies of scale occur when a business that has achieved its least minimum efficient scale sees its long-run average cost remain about the same with continued increases in the size of its operation. Achieving constant economies of scale is significant as it indicates a level of operating efficiency where the business can sustain or even improve profitability with growing operations. It is crucial in competitive seller markets for survival, as it allows a firm to push market prices below the costs of smaller firms, thus leveraging economies of scale for competitive advantage.
Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They aregeneral-purpose equipment (GPE), flexible manufacturing system(FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow:
General-Purpose Equipment (GPE)
Flexible Manufacturing System (FMS)
Dedicated Machine (DM)
Annual contracted units
200,000
200,000
200,000
Annual fixed cost
$100,000
$200,000
$500,000
Per unit variable cost
$15.00
$14.00
$13.00
The option GPE is best when the contracted volume is below nothing units (enter your response as a whole number).
The option FMS is best when the contracted volume is between nothing and nothing units (enter your responses as whole numbers).
The option DM is best when the contracted volume is overunits (enter your response as a whole number).
Answer:
Task 1:
GPE is best when the contracted volume is below 25,000 units.
Task 2:
FMS is best when the contracted volume is between 25,000 and 300,000 units.
Task 3:
DM is best when the contracted volume is over 300,000 units.
Explanation:
The schedule for total cost is attached.
Task 1:The option GPE is best when the contracted volume is below nothing units (enter your response as a whole number).
Answer:GPE is best when the contracted volume is below 25,000 units.
Working:GPE is best when cost for GPE is less than other two.
Difference between the variable cost per unit of GPE and FMS = $18 per unit - $14 per unit = $4 per unit.
Difference between the fixed cost of GPE and FMS = $200,000 - $100,000 = $100,000
The difference of cost between GPE and FMS can be found by (assuming n units produced)
GPE-FMS: 4n – $100,000
The cost difference has to be zero in order to lower the cost for GPE
Hence 4n-$100,000=0
Hence n = 25,000
GPE is best when the contracted volume is below 25,000 units.
Task 2:
The option FMS is best when the contracted volume is between nothing and nothing units (enter your responses as whole numbers).
Answer:FMS is best when the contracted volume is between 25,000 and 300,000 units.
Working:To compare FMS:
The cost has to be in between GPE and FMS
Considering difference between GPE and FMS
n = 25,000 (from above calculation)
Considering FMS and DM:
Difference in variable cost per unit of FMS and DM = $14 - $13 = $1 per unit
Difference in fixed cost of FMS and DM = $500,000 - $200,000 = $300,000
Difference = n – $300,000
n-300,000=0
n = 300,000
Hence FMS is best when the contracted volume is between 25,000 and 300,000 units.
Task 3:The option DM is best when the contracted volume is over units (enter your response as a whole number).
Solution:DM is best when the contracted volume is over 300,000 units.
Final answer:
To find the best manufacturing option, it's necessary to calculate the total cost per option and identify the break-even points by comparing the total cost equations. This analysis will provide the production volume ranges for when each option (GPE, FMS, DM) is most cost-effective.
Explanation:
To determine which manufacturing option is best for Borges Machine Shop at various production volumes, we need to calculate the total cost for each option at different volumes and compare them. The total cost is calculated by adding the fixed cost to the product of the variable cost per unit and the number of units produced.
For the General-Purpose Equipment (GPE), the total cost (TC) formula is:
TC = $100,000 + ($15 × number of units).
For the Flexible Manufacturing System (FMS), the total cost (TC) formula is:
TC = $200,000 + ($14 × number of units).
For the Dedicated Machine (DM), the total cost (TC) formula is:
TC = $500,000 + ($13 × number of units).
The point at which two options have the same total cost is where they break even, and this point can be calculated by setting the total cost equations of two options equal to each other.
Let's calculate the break-even points:
For GPE and FMS: $100,000 + $15n = $200,000 + $14nFor FMS and DM: $200,000 + $14n = $500,000 + $13nSolving these equations will give us the range of units where each option is best.
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. Narchie: _ _ _ _A) will break-even by selling 20,000 units.B) will break-even by selling 13,333 units.C) will break-even by selling 8,000 units.D) will break-even by selling 1,000,000 units.E) cannot break-even because it loses money on every unit sold.
D) will break-even by selling 1,000,000 units.
E) cannot break-even because it loses money on every unit sold.
Explanation:
Two of the statements are applicable
Narchie:
Will break-even by selling 1,000,000 units.Cannot break-even because it loses money on every unit sold.The break-even point shall be calculated by dividing the gross fixed production costs by the product price per unit less the variable cost of production. Fixed costs are those that stay the same, irrespective of how many units are delivered.
You have $12,000 to invest and would like to create a portfolio with an expected return of 9.75 percent. You can invest in Stock K with an expected return of 8.05 percent and Stock L with an expected return of 11.7 percent. How much will you invest in Stock K?
$5,589.04
$7,452.05
$4,890.41
$5,876.71
$6,410.96
Answer:
Correct option is $6410.96
Explanation:
Let investment in K=$x
Hence investment in L=(12000-x)
Portfolio return=Respective return*Respective weights
9.75=(x/12000*8.05)+(12000-x)/12000*11.7
(9.75*12000)=8.05x+140400-11.7x
117000=8.05x+140400-11.7x
x=(140400-117000)/(11.7-8.05)
=$6410.96(Approx)=investment in K
Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the following common costs were incurred: Computer services (85% fixed) $260,000 Building occupancy 600,000 Personnel costs 110,000 Total common costs $970,000 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Division B Area occupied (square feet) 20,000 40,000 Payroll $380,000 $180,000 Computer time (hours) 200 220 Computer storage (megabytes) 4,050 -0- Equipment value $200,000 $250,000 Operating profit (pre-allocations) $555,000 $495,000 If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B
Answer:
$136,190
Explanation:
The computation of computer cost allocated to Division B is shown below:-
Computer cost allocated to Division B = Computer service cost × Computer time of Division B ÷ Total computer time.
= $260,000 × 220 ÷ (200 + 220)
= $260,000 × 220 ÷ 420
= $260,000 × 0.5238
= $136,190
Therefore for computing the computer cost allocated to Division B we simply applied the above formula.
Final answer:
The computer cost allocated to Division B, based on the use of computer time, amounts to approximately $136,190.48, which is derived by taking Division B's computer time as a proportion of the total computer time used by both divisions and applying it to the total computer service costs.
Explanation:
To determine the computer cost allocated to Division B using computer time as the allocation basis, we first need to consider the total computer service costs. The costs given for computer services are $260,000, of which 85% is fixed. However, since the allocation is based on computer time, the entire $260,000 should be considered, irrespective of whether it is fixed or variable.
Next, we have to calculate the total computer time used by both divisions:
Division A: 200 hours Division B: 220 hours
The total computer time used is 200 hours + 220 hours = 420 hours.
Now, we can determine the proportion of the total computer service costs attributable to Division B:
(Computer service costs) x (Division B computer time / Total computer time)
Which is:
($260,000) x (220 hours / 420 hours) = $260,000 x (0.52381)
Therefore, the cost of technology allocated to Division B for computer services is approximately $136,190.48.
In August, one of the processing departments at Knepp Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $13,000. During the month, $178,000 of costs were added to production.In the department's cost reconciliation report for August, the cost of units transferred out of the department would be:
The following is not a category of facts that provide verification of the level of control and independence in determining whether the person is an employee or an independent contractor for the managing broker.
a. Length of relationship
b. Type of relationship
c. Financial Behavioral
Final answer:
The question pertains to distinguishing an employee from an independent contractor using various factors. Option 'c' in the question, 'Financial Behavioral,' is incorrect as the recognized categories are Behavioral Control, Financial Control, and Type of Relationship, which includes consideration of the length of the relationship.
Explanation:
The question addresses the determination of employment status, specifically the criteria used to distinguish between an employee and an independent contractor in the context of property management or real estate business. According to the Internal Revenue Service (IRS) and various employment laws, there are several factors to consider when determining whether a worker is an employee or independent contractor. These factors are generally categorized under three main headings:
Behavioral control (how much control the business has over the work done)Financial control (how the business aspects of the worker’s job are handled)Type of relationship (how the worker and business perceive their interaction)However, option 'c' in the given question mentions 'Financial Behavioral' which is not a recognized category. The correct categories are Behavioral Control, Financial Control, and Type of Relationship. The length of the relationship may also be considered, but it falls under the broader 'type of relationship' category.
Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity for each firm. Furthermore, the quantity the firm produces in long-run equilibrium is the efficient scale. True or False: This indicates that there is a markup on marginal cost in the market for jackets. True False Monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of the externality implies that there is too little entry of new firms in the market.
Monopolistically competitive market in a long run detailed description is given below.
Explanation:
The difference between the short‐run and the long‐run in a monopolistically competitive market is that in the long‐run new firms can enter the market, which is especially likely if firms are earning positive economic profits in the short‐run. New firms will be attracted to these profit opportunities and will choose to enter the market in the long‐run. In contrast to a monopolistic market, no barriers to entry exist in a monopolistically competitive market; hence, it is quite easy for new firms to enter the market in the long‐run.The entry of new firms leads to an increase in the supply of differentiated products, which causes the firm's market demand curve to shift to the left. As entry into the market increases, the firm's demand curve will continue shifting to the left until it is just tangent to the average total cost curve at the profit maximizing level of output, At this point, the firm's economic profits are zero, and there is no longer any incentive for new firms to enter the market. Thus, in the long‐run, the competition brought about by the entry of new firms will cause each firm in a monopolistically competitive market to earn normal profits, just like a perfectly competitive firm.
Excess capacity. a monopolistically competitive firm ends up choosing a level of output that is below its minimum efficient scale,When the firm produces below its minimum efficient scale, it is under‐utilizing its available resources. In this situation, the firm is said to have excess capacity because it can easily accommodate an increase in production. This excess capacity is the major social cost of a monopolistically competitive market structure.
Monopolistic competition has exclusive control over the means of production and prices. The frequency arises from the govt support.
In the long run, the monopolistically competition will make the market for the good where the long-run curve intersects the marginal revenue. This will lead to breakeven in in the longer run. Hence the option is true. The monopolistic competition may also create social inefficiencies as there too many firms.Learn more about the market as a monopolistically competitive market.
brainly.com/question/24053480.
Georgia Movie Company has a capital structure with 40.00% debt and 60.00% equity. The cost of debt for the firm is 8.00%, while the cost of equity is 14.00%. The tax rate facing the firm is 40.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $2.60 million, and it also expects cash flows from the movie operation to increase by 4.00% each year going forward. The company wants to examine the project over a 10.00-year period. What is the WACC for this project
Answer:
10.32%
Explanation:
The computation of the weighted average cost of capital is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate)+ (Weightage of common stock) × (cost of common stock)
= (0.40 × 8%) × ( 1 - 40%) + (0.60 × 14%)
= 1.92% + 8.4%
= 10.32%
We simply multiplied the weight with its cost i.e weight of debt with the weightage of debt and weight of equity with the weightage of equity
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 50,000 units of RX5 follows. Direct materials $ 5.00 Direct labor 8.00 Overhead 9.00 Total costs per unit $ 22.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $18.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5.
Answer:
It is cheaper to buy the product than producing it.
Explanation:
Giving the following information:
The current cost per unit to manufacture the required 50,000 units of RX5 follows. Direct materials $ 5.00 Direct labor 8.00 Overhead 9.00 Total costs per unit $ 22.00 Direct materials and direct labor are 100% variable. The Overhead is 80% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $18.00 per unit.
First, we need to calculate the total cost of making the product:
The total cost of producing 50,000 units:
Direct material= 50,000*5= 250,000
Direct labor= 50,000*8= 400,000
Total overhead= 50,000*9= 450,000
Total cost= 1,100,000
Total cost of purchasing:
Buying= 50,000*18= 900,000
Unavoidable overhead= 50,000*(9*0.2)= 90,000
Total cost= 990,000
It is cheaper to buy the product than producing it.
Allison's is expected to have annual free cash flow of $62,000, $65,400, and $68,900 for the next three years, respectively. After that, the free cash flow is expected to increase at a constant rate of 2 percent per year. At a discount rate of 14.5 percent, what is the present value of this firm?
Answer:
Present value of the firm = $ 524,467.50
Explanation:
Using the free cash flow, the value of a firm is the the present value of the free cash discounted at the appropriate cost of capital.
Year PV
1 62,000× (1.145)^(-1) = 54,148.47162
2 65,400 × (1.145)^(-2) = 49,884.63225
3 68,900 × (1,145)^(-3) = 45, 898.95119
4 to infinity ( see working below) $374,535.44
Workings
Present value from Year 4 to infinity (this will be done in two steps)
Step 1
PV in year 3 = FCF × (1+g)/(WACC- g)
FCF -68,900, g =2%, WACC - 14.5%
= ( 68,900 × 1.02(/0.145-0.02)
= $562,224.00
Step 2
PV in year 0 = PV in year 3 × (1+r)^(-3)
= $562,224.00 × (1.145^(-3)
= $374,535.44
The present value of Allison =
54,148.47 + 49,884.63 +45,898.95 +374,535.44
= $ 524,467.50
Present value of the firm = $ 524,467.50
Exercise 7-11A Accounting for notes receivable LO 7-5Rainey Enterprises loaned $50,000 to Small Co. on June 1, Year 1, for one year at 7 percent interest. Requireda. Record these general journal entries for Rainey Enterprises: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)(1) The loan to Small Co.(2) The adjusting entry at December 31, Year 1.(3) The adjusting entry and collection of the note on June 1, Year 2.
Answer:
Notes receivable:
Dr Notes receivable $50,000
Cr Cash $50,000
December Year 1:
Dr interest receivable $1,750
Cr Interest revenue $1750
June 1 Year 2:
Dr interest receivable $1,750
Cr Interest revenue $1750
The collection of cash from Small co:
Dr cash ($50,000+$1750+$1750) $53,500
Cr Interest receivable($1750+$1750) $3,500
Cr Notes receivable $50,000
Explanation:
Upon the lending of $50,000 to Small Co,the cash account is credited with $50,000 since it is an outflow of cash and the notes receivable account debited with the same amount.
However,at year end year 1, interest is due on the notes receivable,which is computed thus:
interest receivable December Year 1=$50,000*7%*6/12=$1,750
The interest due on 31st December year 1 would be debited to interest receivable and credited interest revenue.
Interest due on 1 june year 2=$50,000*7%*6/12=$1,750
Final answer:
Rainey Enterprises would record the loan to Small Co. with a debit to Notes Receivable and a credit to Cash. By Year End, Rainey would adjust for accrued interest, and upon collection, both the principal and remaining interest are recognized and the cash account is increased.
Explanation:
The student has asked how to record the general journal entries for Rainey Enterprises concerning a loan given to Small Co. The entries include the initial loan disbursement, the adjusting entries at the end of Year 1 and the collection of the note along with the final interest at Year 2.
Here is how Rainey Enterprises would record these transactions:
Loan to Small Co on June 1, Year 1:
Debit Notes Receivable $50,000
Credit Cash $50,000
Adjusting Entry at December 31, Year 1:
Debit Interest Receivable $1,750 ($50,000 x 7% x 6/12)
Credit Interest Income $1,750
Adjusting Entry and Collection on June 1, Year 2:
Debit Cash $53,500 ($50,000 principal + $3,500 full year interest)
Credit Notes Receivable $50,000
Credit Interest Income $1,750 (interest already recognized)
Credit Interest Receivable $1,750
Henry Quincy wants to withdraw $30,000 each year for 10 years from a fund that earns 8% interest. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately?
Answer:
Amount invested today when first withdrawal end year $201302
Amount invested today when first withdrawal immediately $217407
Explanation:
given data
Annuity = $30,000
Rate r = 8% = 0.08
time Period NPER = 10 years
solution
we get here first present value of ordinary annuity that is
Annuity(PV, NPER, r)
= $30,000 (PV,10,8%)
= 6.71008
Present value = $30,000 × 6.71008
Present value = $201302.44
and
when he invest today if the first withdrawal takes place immediately is
Present value = $30,000 × 6.71008 × 1.08
Present value = $217406.64
Final answer:
Henry Quincy must invest approximately $196,114.32 if the first withdrawal from an annuity earning 8% interest is at year-end, or $211,803.47 if the first withdrawal is immediate. The difference is due to the nature of the annuity, with the immediate withdrawal requiring a higher initial investment.
Explanation:
To determine how much Henry Quincy must invest today to withdraw $30,000 each year for 10 years from a fund that earns 8% interest, we need to calculate the present value of an annuity. The calculation differs depending on whether the first withdrawal is at year-end (ordinary annuity) or immediately (annuity due).
Ordinary Annuity (First Withdrawal at Year-End)
The formula for the present value of an ordinary annuity is PVA = PMT \\times [1 - [tex](1 + r)^{-n}[/tex]] / r, where PMT is the annual payment ($30,000), r is the interest rate (0.08), and n is the number of years (10). After computing, Henry Quincy's initial investment should be approximately $196,114.32.
Annuity Due (First Withdrawal Takes Place Immediately)
For an annuity due, the calculation is slightly different since payments are made at the beginning of each period. The present value is calculated using the same formula as an ordinary annuity but then multiplying the result by (1 + r). Thus, the initial investment for an annuity due would be approximately $211,803.47.
These calculations allow Henry to understand how much to invest today to achieve his financial goals, whether the withdrawal is immediate or deferred to the end of the year.
A. Given the historical cost of product Z is $20, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison?
a. $18.b. $20.c. $21.d. $22.
Answer:
j
Explanation:
Geoff hesitated as he read the fast food menu, unsure whether he should supersize his order of delicious golden French fries. Doing so would increase his cost from $0.99 to $1.59 and just might provide him the nutrition he needed to make it through the second half of his day at the office. Of course, if he finished his hamburger and the usual amount of fries, he would simply throw the extra ones away. However, if he failed to supersize his order, he would have to take a candy bar break mid-afternoon and they weren't exactly giving them away in the break room vending machines. He would likely need two candy bars, which sold for $0.95 each. What is Geoff's target service level
Answer:
Geoff's target service level is 0.76
Explanation:
Doing so would expand his expense from $0.99 to $1.59 and could very well give him the sustenance he expected to endure the second 50% of his day at the workplace. Obviously, in the event that he completed his cheeseburger and the typical measure of fries, he would essentially discard the additional ones. In any case, on the off chance that he neglected to supersize his request, he would need to take a confection break mid-evening and they weren't actually offering them away in the reprieve room candy machines. He would probably require two pieces of candy, which sold for $0.95 each.
Answer:
0.76
Explanation:
Doing so would expand his expense from $0.99 to $1.59 and very well might give him the nourishment he expected to endure the second 50% of his day at the workplace. Obviously, in the event that he completed his burger and the standard measure of fries, he would essentially discard the additional ones. Nonetheless, in the event that he neglected to supersize his request, he would need to take a confection break mid-evening and they weren't actually offering them away in the reprieve room candy machines. He would almost certainly require two pieces of candy, which sold for $0.95 each.
Molly decided to try and save money on her textbooks this semester. Instead of buying new books at the campus bookstore, Molly did the following: Molly and Pat signed a written contract that stated that "Pat will furnish the correct used business law book for use in Molly's business law class; and in return on January 15, 2017, Molly promises to pay Pat $50 for the book." Molly took the book and planned to pay Pat. Meanwhile, Pat properly assigned the contract to Jack because she owed him money. When Molly went to the first class session, however, she discovered that the book that she had received from Pat was no longer being used in that class. When Jack asked Molly for payment for the book, Molly refused to pay him. Molly told Jack that the book was useless to her and that she was not paying either him or Pat anything for it. Nor would she give him or Pat the book. Jack told Molly that he had an enforceable assignment in the form of a negotiable instrument and that he could collect regardless of whether the book was useless. Molly said she did not believe him, and ignored his requests for payment. Continuing with her attempt to save money on books, Molly agreed to buy Tim's U.S. history book for $40. She had an oral agreement with Tim that he would give her the book and that she would pay him in three days. This time Molly got the right book. Tim, in writing, properly assigned the right to the $40 payment to Richard. Three days later, Richard asked Molly for the money. Molly admitted she had agreed to pay Tim in three days, but told Richard that she was not going to pay him because he did not have a negotiable instrument. Nor did she pay Tim. Molly also purchased a communications book from Sam and in writing promised by the end of the week to give him a used DVD player she owned as payment. Two weeks have elapsed, and Molly still not given Sam the DVD player, even though he has made repeated requests. Does Jack have a negotiable instrument and can he collect from Molly? Why or why not? How about Richard? And Sam? Discuss and explain in detail the relevant law for each of the three scenarios set forth in this exam question.
Answer:
Does Jack have a negotiable instrument and can he collect from Molly? Why or why not?
Jack does not have a valid negotiable instrument and cannot collect from Molly because the book was not "correct" since it was no longer used in the business law class. Molly should return incorrect book to Pat though. In this contract, neither party performed.How about Richard?
Tim's oral agreement with Molly is valid since the amount is only $40 and Tim can assign it to Richard, but the assignment must be written. Without a written assignment of the debt, Richard cannot collect any money.And Sam?
Sam does have written agreement that can be legally enforceable. Although the costs and time of enforcing the contract are probably higher than the DVD (consideration).Exercise 16-05 a-b (Video) In Waterway Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2020 are as follows. Beginning Work in Process Ending Work in Process Month Units Conversion Cost% Units Transferred Out Units Conversion Cost% January 0 — 11,100 3,100 63 March 0 — 12,300 3,400 40 May 0 — 15,400 7,860 80 July 0 — 10,200 2,200 46 Compute the physical units for January and May. January May Units to be accounted for Beginning work in process Started into production Total units Units accounted for Transferred out Ending work in process Total units Compute the equivalent units of production for (1) materials and (2) conversion costs for each month. Materials Conversion Costs January March May July
Answer:
(a) Total units for January = 14,200
Total units for May = 23,260
(b). Conversion cost for :
January = 13,053
March = 13,660
May = 21,688
July = 11,212
Explanation:
As per the data given in the question,
1)
Jan. May
Units to be accounted for
Beginning WIP 0 0
Started into production 14,200 23,260
Total number units 14,200 23,260
Units accounted for
Transferred out 11,100 15,400
Ending WIP 3,100 7,860
Total units 14200 15400
2)
We can calculate the conversion cost by using following formula:
Conversion cost = Transferred out unit + (Work in process unit × conversion cost)
Material Conversion cost
Jan. 14,200 13,053 (11,100 + 3,100 × 63%)
Mar. 15,700 13,660 (12,300 + 3,400 × 40%)
May 23,260 21,688 (15,400 + 7,860 × 80%)
July 12,400 11,212 (10,200 + 2,200 × 46%)
Suppose a seven-year, $ 1 comma 000 bond with a 7.8 % coupon rate and semiannual coupons is trading with a yield to maturity of 6.50 %.If the yield to maturity of the bond rises to 7.20 % (APR with semiannual compounding), what price will the bond trade for?
Answer:
The price of the bond is 1,072.19
Explanation:
The price at which the bond trades for can be computed using the pv formula in excel which tries to discount to present value all the cash inflows receivable from the bond into today's present worth.
=-pv(rate,nper,pmt,fv)
rate is the yield to maturity of 6.50% divided by 2 since the bond pays interest semi-annually i.e 3.25%
nper is the number of coupon payments the bond would pay which is 7 years multiplied by 2 i.e 14
pmt is the semi-annual interest of the bond which is $1000*7.8%/2=$39
the fv is the face value of the bond of $1000
=-pv(6.5%/2,14,39,1000)=$1,072.19
What performance criteria include a broad range of knowledge, skills, traits, and behaviors that are needed to perform a job successfully? A) credibilities B) competencies C) accomplishments D) future possibilities
Answer:
B). Competencies.
Explanation:
These are skill, qualities, knowledge and behavioural traits that makes an applicant worthy of a job.
They are often used as benchmarks to rate and evaluate candidates during the recruitment process, especially when reviewing application forms and at interview.
During the recruitment process, you will likely be asked competency based questions, and the recruiter will use your answers to determine your suitability.
You should therefore identify the key competencies of any given role at the beginning of the application process, and match your skills and experience to them.
An insurance company must make payments to a customer of $8 million in one year and $4 million in four years. The yield curve is flat at 9%. a. If it wants to fully fund and immunize its obligation to this customer with a single issue of a zero-coupon bond, what maturity bond must it purchase?
Answer:
1.8356 years
Explanation:
The computation of the purchase of maturity bond is shown below:
Years (A) Payment PVF at 9% PV Weight (B) Duration (A × B)
1 $8,000,000 0.9174 $7,339,449.54 0.7215 0.7215
4 $4,000,000 0.7084 $2,833,700.84 0.2785 1.1142
$101,731,503.39 1 1.8356
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 26000 units to the Production Division at 1050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of $3150 and unit variable costs and fixed costs of $1050 and $2100, respectively. The Production Division is currently paying $3000 per unit to an outside supplier. $90 per unit can be saved on internal sales from reduced selling expenses. What is the increase/decrease in overall company profits if this transfer takes place?
a. Decrease $1,200,000
b. Increase $2,520,000
c. Decrease $3,000,000
d. Increase $27,000,000
Final answer:
The transfer of engine units from the Engine Division to the Production Division results in a loss of $2100 per unit. With 26000 units, this equates to a $54,600,000 decrease in revenue for the Engine Division. After accounting for the Production Division's savings, the overall company profit decreases by $6,240,000; however, this result does not match any provided options.
Explanation:
To calculate the change in overall company profits resulting from the internal transfer of engine units, we must analyze the costs and savings associated with the transfer. The engine division sells externally at $3150 per unit. For internal sales, the transfer price is $1050. The production division currently buys externally at $3000 per unit. Then, we need to account for the saving on reduced selling expenses of $90 per unit for internal transactions.
First, we calculate the lost revenue for the Engine Division for each unit transferred to the Production Division: $3150 (external sale price) - $1050 (internal transfer price) = $2100 lost per unit. For 26000 units, that's a total loss of $54,600,000. However, this is not the final profit impact on the company, as we have to account for the savings made by the Production Division.
Next, we find the savings per unit for the Production Division: $3000 (external purchase price) - $1050 (internal transfer price) - $90 (savings on selling expenses) = $1860 savings per unit. For 26000 units, the Production Division saves $48,360,000.
Subtracting the loss from the Engine Division from the savings of the Production Division, we get the total change in company profit: $48,360,000 (savings) - $54,600,000 (loss) = decrease of $6,240,000. Hence, the overall company profits will decrease, but this is not one of the provided options, which highlights an inconsistency in the question or provided options.
Production information for month was: Number of units produced 30, 000 Number of units sold 28,000 Selling price $20 Beginning inventory 0 Fixed selling and administrative costs $ 20,000 Fixed manufacturing overhead $ 150,000 Direct materials cost per unit 2 Direct manufacturing labor 6 Variable manufacturing overhead per unit 4 Variable selling expenses per unit 2 FMOH per unit 5 ($150,000 : 30,000 =$5) What is cost per unit under Absorption costing method?
Answer:
$17
Explanation:
The computation of the cost per under Absorption costing method is shown below:
= direct labor per unit+ direct materials per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit
where,
= $2 + $6 + $4 + $5
= $17
We do not considered the selling and admin expenses and the same is ignored
Final answer:
The cost per unit under Absorption costing is $17, calculated by summing the direct materials, direct manufacturing labor, variable manufacturing overhead, and fixed manufacturing overhead per unit.
Explanation:
The student asked what the cost per unit under Absorption costing method is. Absorption costing includes all manufacturing costs, both fixed and variable, in the cost of a product. To calculate the cost per unit under absorption costing, we add up the direct materials cost per unit, direct manufacturing labor, variable manufacturing overhead per unit, and fixed manufacturing overhead (FMOH) per unit.
Direct materials cost per unit: $2
Direct manufacturing labor: $6
Variable manufacturing overhead per unit: $4
FMOH per unit: $5
Adding these costs together gives us the total cost per unit under absorption costing:
Total Cost per Unit = $2 (Direct Materials Cost) + $6 (Direct Manufacturing Labor) + $4 (Variable Manufacturing Overhead) + $5 (FMOH) = $17 per unit.
Which of the following statements are true regarding dividends? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
A large stock dividend is a distribution of more than 25% of previously outstanding shares.
A stock dividend commonly indicates management's confidence that the company is doing well.
The account Paid-in Capital in Excess of Par Value is always credited when a large stock dividend is declared.
The payment date reflects the date a cash dividend is paid to stockholders.
Answer:
A large stock dividend is a distribution of more than 25% of previously outstanding shares.
The account Paid-in Capital in Excess of Par Value is always credited when a large stock dividend is declared.
Explanation:
A dividend is considering parsing or separating out profit sharing. A dividend has also, tax rate. For example, there is sometimes in the world situation where we get to see increasing of values of stock and in that time, shareholder can choose what he will do. He can sell the stock and if he does that, he will have to play a tax on capital gains.
So, if someone is sharing a dividend stock, he will be paid an amount of money that the company will earn in the meantime. Companies can device when and how will they pay their dividends.
Large stock dividends, the use of dividends as signals of corporate health, and the significance of the payment date in cash dividends are all correctly described statements. However, it's not always the case that the account Paid-in Capital in Excess of Par Value is credited when a large stock dividend is declared.
Explanation:The following statements are true:
A large stock dividend is indeed defined as a distribution of more than 25% of previously outstanding shares. The company issues additional shares to stockholders relative to the shares those stockholders already own. A stock dividend can indicate management's confidence in the company's well-being. It's a way of returning profits back to shareholders, which is often seen as a positive signal of the company's financial health. The payment date does reflect the day a cash dividend is paid to stockholders. It's the date on which the company actually dispatches the dividend to the shareholders.However, the statement that the account Paid-in Capital in Excess of Par Value is always credited when a large stock dividend is declared is not necessarily true. This account represents the amount received from the issue of stock that is above its par value, but whether it is credited or not depends on the specific accounting practices of the company.
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Powder Ski Shop reports inventory using lower-of-cost-or-market. Below is information related to its year-end inventory. Inventory Quantity Cost Market Ski jackets 10 $ 117 $ 97 Skis 15 320 370 Calculate the amount to be reported for ending inventory.
Answer:
$5,770
Explanation:
The computation of ending inventory is shown below:-
Inventory Quantity Lower of cost Ending inventory
Net realizable value
Ski Jackets 10 $97 $970
Skis 15 $320 $4,800
Total $5,770
The amount to be reported for ending inventory is calculated using the lower-of-cost-or-market method.
Explanation:The amount to be reported for ending inventory is calculated using the lower-of-cost-or-market (LCM) method. Under this method, the inventory value is reported at the lower of its cost or its market value. In this case, for the Ski jackets, the cost is $117 and the market value is $97. Since the market value is lower, the ending inventory value for Ski jackets would be 10 x $97 = $970. For the Skis, the cost is $320 and the market value is $370. Since the cost is lower, the ending inventory value for Skis would be 15 x $320 = $4800.
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If a company offers many opportunities for career advancement and expects its jobs to change a lot in the next five years, then according to , an ambitious employee who is enthusiastic about learning new skills might be a good fit for that company.A. EMPLOYER BRAND
B. SOCIAL CONTRACT
C. MATCHING MODEL
D. CONTIGENT WORKFORCE
Option C
According to matching model , an ambitious employee who is enthusiastic about learning new skills might be a good fit for that company
Explanation:‘Matching model’, which intimated that HR practices and the organization composition should be handled in a design that is corresponding with organizational strategy. The matching model justifies praise for implementing an fundamental framework for subsequent theory improvement in the area of strategic Human Resource Management (HRM).
Some sorts of rewards have to be granted based on outcomes of appraisal and the acts of employees. According to matching model this manner is subordinate on the HRD modes and plans of the organization.
The best fit for a company offering career advancement and expecting job changes is an ambitious employee enthusiastic about learning, as per the MATCHING MODEL. This model compares employee attributes with job demands and organizational culture to ensure compatibility. Transferable skills, a proactive approach, and adaptability are key strengths in such dynamic work environments.
If a company offers many opportunities for career advancement and expects its jobs to change a lot in the next five years, then according to C. MATCHING MODEL, an ambitious employee who is enthusiastic about learning new skills might be a good fit for that company. The matching model is an HR approach where the suitability of a candidate is assessed based on whether their skills, knowledge, and personality match the job demands and organizational culture.
Considering the dynamic nature of the job role, someone who possesses a proactive personality, the desire for lifelong learning, and adaptability would be particularly suited to this work environment. Such individuals would be able to adjust and grow with the company, continuously realigning their career goals and capabilities with the evolving needs of the organization.
Employees are indeed a company's greatest asset, and those with transferable skills, a positive attitude, and a readiness to embrace change will find this type of company culture conducive to their career advancement.
The following events took place at a manufacturing company for the current year:(1) Purchased $95,000 in direct materials.(2) Incurred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.(3) Other manufacturing overhead was $107,000, excluding indirect labor.(4) Transferred 80% of the materials to the manufacturing assembly line.(5) Completed 65% of the Work-in-Process during the year.(6) Sold 85% of the completed goods.(7) There were no beginning inventories.What is the value of the ending Work-in-Process Inventory?a. $95,060.50.b. $13,261.50.c. $14,259.00.d. $88,410.00.
Answer:
D $88410
Explanation:
Work in progress includes all the raw materials, direct labour and conversion costs incurred so far excluding cost of goods sold .
WIP= Intial WIP +Manufacturing costs incurred- Cost of goods sold.
The WIP inventory at the begining of the period is given as nil.
WIP during the period = (95000*80%)+56000+13600+107000
=252600(but it was given that 65% of the Process was completedi.e., finished goodswhich are not the part of the WIP inventory ; hence the remaining 35% is the Work in process inventory)
=$ 88410.
Further the remaining raw material 20% = 95000*20% shall not comprise a part of the WIP as it has not been brought into process itself , it shall lie in raw materials inventory itself.It shall be counted into the WIP once it is brought into the manufacturing assembly line.
Answer:
the value of the ending Work-in-Process Inventory is d. $88,410.00.
Explanation:
Materials utilized in Production Process
Materials Cost=$95,000×80%
= $76,000
Cost of Goods Manufactured Schedule
Direct Materials $76,000
Direct Labor $56,000
Indirect Labor $13,600
Other manufacturing overhead $107,000
Total Manufacturing Costs $252,600
Completed = 65%
Incomplete = 35%
Opening Work In Process Inventory = Nill
Therefore, ending Work-in-Process Inventory = $252,600 × 35%
= $88,410
Stopher Incorporated makes a single product. The company has a standard cost system in which it applies overhead to this product based on machine-hours. Data for last year appear below: budgeted variable overhead $ 45,220 budgeted production 20,000 units standard machine-hours per unit 1.90 machine-hours actual production 21,000 units actual variable overhead $66,789 actual machine-hours 36,900 machine-hours The variable component of the predetermined overhead rate is closest to:
Answer:
$1.19 per machine-hour
Explanation:
Variable component of the predetermined overhead rate =
Budgeted variable overhead $ 45,220
÷
Budgeted production 20,000 units ×Standard machine-hours per unit 1.90 machine-hours =38,000
Hence:
$45,220/38,000 machine-hours
= $1.19 per machine-hour
Therefore the variable component of the predetermined overhead rate is closest to: $1.19 per machine-hour