Answer:
expected income 105,000
Explanation:
Our goal would be to multiply the average contribution margin of the company by the total units produced.
[tex]average \: contribution \times units\: sold = contribution \: margin\\30 \times (40,000 + 60,000) = 30\times 100,000 = 300,000[/tex]
Important: the given is the weighted average, so the units mix (40% STD 60% SUPREME) is taken into consideration already, no need to additional calculation. If we were told the Contribution Margin per type of unit we will be needing to calculate the average CM.
Now, second step will be subtract the fixed cost from the contribution to get the pretax income
[tex]Net \:Income = contribution \: margin - fixed \: cost\\300,000 - 195,000 = 105,000[/tex]
At the beginning of 2016, Emily Corporation issued 24,000 shares of $100 par, 7%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred or common shareholders. What amount of dividends will a preferred shareholder owning 100 shares receive in 2018 if Emily pays $1,000,000 in dividends?
Answer: $2,100
Explanation:
Given:
No. of shares 24,000 of $100 par
Dividend per year = (100 shares X $100 par) X 7% = $700
Since, the preferred stock is cumulative, the holders will receive past dividends not distributed.
From 2016: 700
From 2017: 700
From 2018: 700
Total = $2,100
Activity-based costing systems: Multiple Choice
use a single, volume-based cost driver.
assign overhead to products based on the products' relative usage of direct labor.
often reveal products that were under- or over-costed by traditional costing systems.
typically use fewer cost drivers than more traditional costing systems.
have a tendency to distort product costs.
Answer:
Assign overhead to products based on the products´ relative usage of direct labor.
Explanation:
It is an accounting method. Recognizes the relationship between costs, overhead activities, and manufactured products. By doing this relation the assignation of indirect costs is less arbitrarily than traditional methods. It is very used in the manufacturing sector.
I hope this answer helps you.
During the year, credit sales amounted to $820,000. Cash collected on credit sales amounted to $780,000, and $15,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance in the Allowance for Bad Debts is ________.
Answer:
The ending balance in the Allowance for Bad Debts is 20,500 CREDIT
Explanation:
The ending balance of Allowance for bad debts would be the 2.5% of sales
The adjustment is made to get the allowance for Bad Debt match the estimate uncollectible ammounts.
Notice it state "company adjusted for bad debt expense"
This means it debit this account as much as it needed to be to make allowance match the estimate allowance.
The write-off are transaction durign the period. They are irrelevant
So the ending balance is:
2.5% of credit sales of 820,000 = $20,500
It is important to remember that Allowance is a counter-asset account. His normal balance is credit, so the final balance is credit.
Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. Sales (6,800 units) $306,000; Variable expenses 149,600; Contribution margin 156,400; Fixed expenses 96,500; Net operating income $ 59,900. If the company sells 7,200 units, its net operating income should be closest to________.
Answer:
The net operating income should be $69,100 for 7,200 units.
Explanation:
Given,
Sales (6800) units - $306,000
Variable expense (6800) - 149,600
Contribution - 156,400 (Sales - Variable cost )
Less - Fixed Expense $96,500
Net operating Income - $59,900
Since, the sales and the variable expense is given for 6800 units. For computing the net operating income for 7200 units, it is important to calculate per unit price of both.
Per unit sales = Sales ÷ Number of units
= $306,000 ÷ 6800 units
= $45 per unit sale
Per unit variable expense = Variable expense ÷ Units
= 149,600 ÷ 6800 units
= 22 per unit expense.
Now, we can compute easily.
Sales = (7200 × $45) = $324,000
Less - Variable cost (7200 × $22) = 158,400
Contribution - $165,600
Less - Fixed expense - $ 96500
Net operating income - $69,100
The fixed expense would remain the same.
Thus, the net operating income should be $69,100 for 7,200 units.
A product sells for $135 per unit, and its variable costs are 60% of sales. The fixed costs are $428,000. What is the break-even point in sales dollars? (Do not round intermediate calculations.)
Answer:
$1,070,000.00
Explanation:
Break Even Point in Sales = Fixed Cost/ Contribution Margin Ratio
In case contribution margin is taken as a percentage then straight calculation can be done.
Since variable cost = 60%, contribution margin ratio = Sales - Variable costs = 40%
Break even point in sales = $428,000.00 / 40% = $1,070,000.00
Alternatively it can be calculated by taking contribution per unit, for this
Contribution per unit = Sales Value - Variable cost = $135 - 60% = $54
BEP in units = $428,000 / $54 = 7,925.925 units
BEP in sales = BEP in units X Selling price per unit = 7,925.925 X $135 = $1,069,999.875
Thus value in both cases is same the difference is of rounding off.
$1,070,000.00
Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. Professors required each student to buy 10 notebooks, regardless of the price. The quality and design of calculators improved dramatically from 2014 to 2016. For example, calculators made in 2016 accept memory cards, whereas those made in 2014 do not, but this quality change is hard to measure. A new, safe method of memory enhancement became available for purchase. As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.
Answer: The quality and design of calculators improved dramatically from 2014 to 2016.
A new, safe method of memory enhancement became available for purchase.
As the price of textbooks increased, more and more students turned to the used-book market or chose not to buy textbooks at all, instead using the copies on reserve in the library.
Explanation: If textbook price increases , it might overstate the inflation in cost of going to college.
A new safe memory enhancement will be costly because of it's superior quality and technological progress.
Similarly , new calculator will also be improved and superior.
Thus, the survey will reflect higher prices,
Price indexes like the CPI could overstate education-related inflation for reasons such as professors enforcing set purchase requirements, students finding alternate ways to acquire textbooks due to price increases, and difficulty accounting for improvements in product quality, such as calculators.
Explanation:Student, your question pertains to Consumer Price Indexes (CPI) and how they represent inflation in education costs. Such price indexes can sometimes overstate inflation due to various factors.
The first and fourth options can explain this overstatement because they regard changes in consumer behavior related to costs: professors requiring a set number of notebooks independent of price, and students finding alternative methods to buying textbooks due to price increases.
These examples indicate that because the CPI uses a fixed basket of goods and services, it does not accurately reflect substitutions or changes in purchasing behavior that consumers might make in response to price changes.
The second option, an improvement in calculator quality, is another potential instance of overstated inflation. The CPI often has difficulty adjusting for quality changes, and so might not account for any additional value an improved calculator provides, thereby potentially overstating the effect of inflation.
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Financial Markets and Institutions. True or false? (LO2-1) a) Financing for public corporations must flow through financial markets. b) Financing for private corporations must flow through financial intermediaries. c) Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London. d) Derivative markets are a major source of finance for many corporations. e) The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity. f) The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
Answer:
The following statement is False.
(a). Financing for public corporations must flow through financial markets.
Reason: Financing for public corporations can be done through various sources of finance like financial markets, financial institutes and internal funds. It is not compulsion to finance the capital of public companies through financial markets.
The following statement is False.
(b). Financing for private corporations must flow through financial intermediaries.
Reason: Financing for private corporations does not necessarily need to flow through financial intermediaries. This can be done either directly or indirectly, i.e. with or without intermediaries.
The following statement is False.
(c). Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
Reason: Not necessarily, there are several FOREX exchanges around the world where foreign exchange trading occurs.
The following statement is False.
(d). Derivative markets are a major source of finance for many corporations.
Reason: Derivative markets are not necessarily a major source of finance for many corporations, since there are other financial institutions such as banks etc.
The following statement is False.
(e). The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
Reason: The opportunity cost of capital is defined as the incremental return on investment that a firm foregoes when it decides to use funds for a project, rather than investing cash in a marketable security.
The following statement is False.
(f). The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
Reason:Cost of capital is the required return necessary to make a capital budgeting project.
Financial markets and intermediaries aid various businesses in raising capital. Foreign exchange is not solely bound by physical exchange floors and derivative markets do provide indirect finance benefits to corporations. The opportunity cost of capital relates to foregone investments, while cost of capital corresponds to interest on borrowed funds.
Explanation:The subject of the question pertains to financial markets and their role in the capital structure of corporations, both public and private. Fundamentally, whether public or private, businesses raise capital through financial markets or intermediaries. Foreign exchange trading, while also occurring on the floor of the FOREX in New York and London, happens digitally as well, often in more vast amounts. Derivative markets, though not directly a source of capital, are used by corporations for hedging risk and speculation. Opportunity cost of capital refers to the return that could have been earned on the best-forgone investment, not the initial capital outlay. The cost of capital indeed refers to the interest corporations pay on borrowed finances.
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You have one semester left to graduate and you have the finances to do a maximum of four courses. Three of the courses are required courses. The last course slot belongs to an elective. You have narrowed down your choices to three electives, all of which are very popular and very useful courses that you are very interested in. Decide on the course you want to take. Then using at least two economic decision-making principles, explain why you are making this choice.
As a rational economic agent, out of the three electives I have selected, I will choose the one that will maximize my expected utility. This discipline, therefore, will be chosen according to my preference and with the marginal benefit that will add me.
Principle 1: Economic agents are rational
Principle 2: Economic agents think on the sidelines - this means that consumers make choices that add benefits to their utility functions.
Match the following terms with a short description of that term: Consistency, Atomicity, Isolation, Durability, Serializability.a. The data used by one transaction can not be used by another transaction until the first one has completed. b. The schedule for execution in a multiuser environment insures consistent results. c. A transaction takes the database from one consistent state to another. d. Once a transaction is done it can not be lost or undone. e. All statements within a transaction must be successfully completed or completely aborted.
Answer:
Atomicity: All statements within a transaction must be successfully completed or completely aborted.
Consistency: A transaction takes the database from one consistent state to another.
Isolation: The data used by one transaction can not be used by another transaction until the first one has completed
Durability: Once a transaction is done it can not be lost or undone.
Serializability: The schedule for execution in a multiuser environment insures consistent results
The terms Consistency, Atomicity, Isolation, Durability, and Serializability relate to database transactions, and matching them with their descriptions ensures an understanding of how databases maintain integrity and handle multiple transactions.
The terms Consistency, Atomicity, Isolation, Durability, and Serializability are all fundamental concepts related to database transactions. Matching them with their descriptions:
Consistency (c) - A transaction takes the database from one consistent state to another.Atomicity (e) - All statements within a transaction must be completed or completely aborted.Isolation (a) - The data used by one transaction cannot be used by another transaction until the first one has been completed.Durability (d) - Once a transaction is completed, it cannot be lost or undone.Serializability (b) - The schedule for execution in a multi-user environment ensures consistent results.Cornhusker Company provides the following information at the end of 2018. Cash remaining $ 3,800Rent expense for the year 6,000 Land that has been purchased 20,000 Retained earnings 11,400 Utility expense for the year 3,900 Accounts receivable from customers 6,200 Service revenue earned during the year 32,000 Salary expense for the year 12,300 Accounts payable to suppliers 1,700 Dividends paid to shareholders during the year 2,200 Common stock that has been issued prior to 2018 15,000 Salaries owed at the end of the year 1,900 Insurance expense for the year 2,500No common stock is issued during 2018, and the balance of retained earnings at the beginning of 2018 equals $6,100.Required:Prepare the income statement for Cornhusker Company on December 31, 2018.
Answer:
Explanation:
The income statement shows the profit or loss of a company during a particular year. The income statement shows that how much revenue is generated and how much expenses is incurred in a year.
If the revenue is greater than expenses, than the company is earning profits otherwise it suffers a loss.
= Service revenue - Salary expense - insurance expenses - utility expense - rent expense
= 32,000 - 12,300 - 2,500 - 3,900 - 6,000
= $7,300
The Cornhusker Company has earns a net profit of $7,300 on December 31, 2018.
The table attachment is given below:
The income statement for Cornhusker Company on December 31, 2018 includes service revenue, expenses such as rent, utilities, salary, and insurance, resulting in a net income of $7,300.
The income statement for Cornhusker Company on December 31, 2018:
Service Revenue: $32,000Rent Expense: $6,000Utility Expense: $3,900Salary Expense: $12,300Insurance Expense: $2,500Net Income = Total Revenue - Total Expenses
Net Income = $32,000 - $6,000 - $3,900 - $12,300 - $2,500 = $7,300
Which of the following elements are used in calculating revenue in a flexible budget? A) budgeted selling price and actual quantity of outputB) actual selling price and budgeted quantity of outputC) budgeted selling price and budgeted quantity of outputD) actual selling price and actual quantity of output
Answer:
The correct answer is A) budgeted selling price and actual quantity of output.
Explanation:
We call a flexible budget to a budget that is adjusted or flexed with some changes in activity or volume. It is noticeable that a flexible budget tends to be more sophisticated and useful than a statistic budget. And to calculate revenue in a flexible budget, it is necessary a budgeted selling price and actual quantity of output.
Revenue in a flexible budget is calculated using the budgeted selling price and the actual quantity of output.
Explanation:In a flexible budget, the elements used to calculate revenue are the budgeted selling price and the actual quantity of output. Hence, the correct answer to the question is: A) budgeted selling price and actual quantity of output. Flexible budgets adjust to different levels of activity and provide a more accurate tool for comparing budgeted performance at different levels of activity. They consider what revenues and costs should have been, given the actual level of output during the period.
Suppose a tax of $3 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. The tax decreases consumer surplus by $3,900 and decreases producer surplus by $3,000. The tax generates tax revenue of $6,000. The tax decreased the equilibrium quantity of the good from A. 2,400 to 2,000. B. 2,600 to 2,000. C. 3,000 to 2,400. D. 2,000 to 1,500.
Answer:
B. 2,600 to 2,000.
Explanation:
tax revenue = units x tax rate
units = tax revenue / tax rate = 6,000/3 = 2,000
2,000 will be the quantity after taxes.
6000 goverment revenue - 3900 consumer surplus - 3000 producer surplus
900 deathweight loss
(tax x ↓unit)/2 = deathweight loss
(3 x ↓unit)/2 = 900
(3 x ↓unit) = 900 *2
↓unit = 1800/3 = 600
It decrease to 2000 from 2600
A $3 per unit tax creates a wedge between the price paid by consumers and the price received by producers, representing a production cost increase. This results in a leftward shifted supply curve, with reduced consumer and producer surplus. The burden of the tax is shared, decreasing the equilibrium quantity of goods.
Explanation:When a $3 per unit tax is imposed on a good, the government creates a wedge between the price paid by consumers and the price received by producers. The distance between these prices equals the tax rate.
The new market price is the price paid by consumers, but sellers receive less per unit sold as they pay the difference (tax) to the government. This tax is akin to an increase in production cost, symbolized by a leftward shift of the supply curve. The new supply curve intercepts the demand at the new quantity.
The tax revenue is found by multiplying the tax per unit by the total quantity sold. The tax incidence, or burden, is shared by both consumers and sellers. In this case, the consumers' surplus decreased by $3,900 and the producers' surplus decreased by $3,000, causing a total tax revenue of $6,000 and a decrease in the equilibrium quantity of goods.
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Dalton Industries makes all purchases on account, subject to the following payment pattern: Paid in the month of purchase: 25% Paid in the first month following purchase: 55% Paid in the second month following purchase: 20% If purchases for January, February, and March were $210,000, $190,000, and $240,000, respectively, what were the firm's budgeted payments in March?
Answer:
The firm's budgeted payments in March is $206,500
Explanation:
The purchase pattern is categorized into three percentage : 25%, 55% , and 20%
Here, following month is considered to be a month which is before than actual month.
The firm's budgeted payments in March is computed below:
= 25% of march month + 55% of February month + 20% of January month
= 25% × $240,000 + 55% × $190,000 + 20% × $210,000
= $60,000 + $104,500 + $42,000
= $206,500
Thus, the firm's budgeted payments in March is $206,500
Aspen Corporation has two divisions, East and West. Its corporate office is separate from these divisions and incurred $190,000 in administrative costs during the year. These costs are allocated to the divisions based on their individual revenues. During the year, the East and West divisions had revenues of $1,800,000 and $2,200,000, respectively. How much of the administrative cost should be assigned to the East division based on the cost allocation rule described?
Answer: the administrative cost that should be assigned to the East division is $85,500.
Explanation: The East division should be assigned with the 45% of the administrative revenues since the total revenues obtained by the two divisions is $1,800,000 plus $2,200,000 equals $4,000,000. $4,000,000 is the total and $1,800,000 is the 45% of the total ($1,800,000 times 100 divided by $4,000,000). 45% of $190,000 is $85,500.
The East division of Aspen Corporation should be assigned $72,500 of the administrative costs based on the cost allocation rule described.
Explanation:In this question, the administrative costs incurred by Aspen Corporation need to be allocated to the East and West divisions based on their individual revenues. To calculate the allocation for the East division, we can use the formula: (East division revenue / Total revenue) * Administrative costs. Using the provided information, the allocation for the East division would be:
((1,800,000 / (1,800,000 + 2,200,000)) * 190,000 = $72,500
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The value of any asset is the ________.
sum of all future cash flows it is expected to provide over the relevant time period
sum of the present values of all future cash flows it is expected to provide over the relevant time period
present value of the sum of all future cash flows it is expected to provide over the relevant time period
sum of all compounded future cash flows it is expected to provide over the relevant time period
Answer:
The value of any asset is the sum of the present values of all future cash flows it is expected to provide over the relevant time period
Explanation:
When valuing an asset, an investor should
1. First forecast the cash flows that he is likely to receive in each period during during the investment horizon.
2. Discount each of the periodic cash-flows at the relevant periodic required rate of return - i.e calculate the present value for each cash-flow
3. Sum the present values calculated in step 2. This total is the value of the asset.
Daniel, age 38, is single and has the following income and expenses in 2018:Salary income $60,000Net rent income 6,000Dividend income 3,500Payment of alimony in accordance with the separation agreement which was signed in 2018 12,000Mortgage interest on residence 9,900Property tax on residence 1,200Contribution to traditional IRA (assume the amount is fully deductible) 5,000Contribution to United Church 2,100Loss on the sale of real estate (held for investment) 2,000Medical expenses 3,250State income tax 300Federal income tax 7,0001) What is Daniel's gross income?2) What is Daniel's AGI?3) What is Daniel's Total itemized deductions (after any limitations)? This is all for 2018.
Answer:
Explanation:
Payment of Alimony ⇒ Deductible For AGI
Mortgage interest on residence ⇒ Deductible From AGI
Property Tax on Residence ⇒ Deductible From AGI
Contribution to traditional IRA ⇒ Deductible For AGI
Contribution to United Church ⇒ Deductible From AGI
Loss on sale of real estate ⇒ Deductible For AGI
Medical Expenses ⇒ Deductible From AGI
State Income Tax ⇒ Deductible From AGI
Federal Income Tax ⇒ Not Deductible
∴Gross Income:
Salary Income 60,000
Net Rent 6,000
Dividend Income 3,500 69,500
∴Deduction for AGI:
Payment of Alimony 12,000
Contribution to traditional IRA 5,000
Loss on sale of real estate 2,000 19,000
Adjusted Gross Income 50,500
∴ Itemized Deduction
Mortgage interest on residence 4,900
Property Tax on Residence 1,200
Contribution to United Church 2,100
State Income Tax 300
Medical Expenses[$3250 - ($50500× 7.50%)] ----
∴Total Itemized Deduction 8,500
Daniel's gross income for 2018 is $69,500, his Adjusted Gross Income (AGI) is $52,500, and his total itemized deductions are $13,500. The deductions include mortgage interest, property tax, state income tax, and charitable contributions. Medical expenses are not deductible in this case.
Daniel's Gross Income, Adjusted Gross Income (AGI), and Total Itemized Deductions
1. What is Daniel's gross income?
Daniel's gross income includes salary, net rent income, and dividend income.
Salary: $60,000Net Rent Income: $6,000Dividend Income: $3,500Total Gross Income = $60,000 + $6,000 + $3,500 = $69,500
2. What is Daniel's AGI?
To calculate Daniel's Adjusted Gross Income (AGI), we subtract the allowable adjustments from his gross income:
Gross Income: $69,500Alimony Payment: -$12,000IRA Contribution: -$5,000Total Adjustments = $12,000 + $5,000 = $17,000
AGI = $69,500 - $17,000 = $52,500
3. What is Daniel's Total Itemized Deductions (after any limitations)?
Daniel’s itemized deductions include the following:
Mortgage Interest on Residence: $9,900Property Tax on Residence: $1,200Medical Expenses: $3,250 (Only amounts exceeding 7.5% of AGI are deductible for 2018)State Income Tax: $300Contribution to United Church: $2,100Medical Expenses Deductible Amount: 7.5% of AGI ($52,500) = $3,937.50. Since $3,250 < $3,937.50, no medical expenses are deductible.
Total Itemized Deductions = $9,900 + $1,200 + $300 + $2,100 = $13,500.
Mary and David are partners who share profits and losses on a 3:1 basis. This means Mary receives 75% and David receives 25% of income after any allocations. Mary receives a salary allowance of $15,000. Earnings for the period total $51,000. What will be the total amount credited to Mary's Capital account when the Income Summary account is closed?
Answer:
$53,250
Explanation:
In case of profit sharing ratio 3:1
Mary will receive 75% of profits, provided after any allocations made.
Therefore total share of Mary = Salary + Share in profit.
= $15,000.00 + ($51,000.00 X 75%) = $15,000.00 + $38,250.00 = $53,250.00
Note: Salary will also be credited to Mary's capital account, although in some cases firms also open partner's current account in that case salary will be credited to current account and not the capital account. But generally only one capital account is being operated.
Therefore amount credited to Mary's Capital Account = $53,250.00
Baker Oats had an asset turnover of 1.6 times per year. a. If the return on total assets (investment) was 12 percent, what was Baker’s profit margin? (Input your answer as a percent rounded to 1 decimal place.) b. The following year, on the same level of assets, Baker’s assets turnover declined to 2 times and its profit margin was 6 percent. How did the return on total assets change from that of the previous year?
Answer:
a) Baker's profit margin = 7.5%
b) No change on return on total assets
Explanation:
a) Assets Turnover = [tex]\frac{Net Sales}{Average Total Assets}[/tex] = 1.6 times
Return on total assets = [tex]\frac{Net profit}{Average Total assets}[/tex] = 12%
Then we have profit margin on sales = [tex]\frac{Return on total assets}{Asset turnover ratio}[/tex] = [tex]\frac{12}{1.6}[/tex] = 7.5%
b) In case asset turnover declined to 2 times with profit margin of 6% then Return on total assets = Asset turnover ratio X Profit Margin
= 2 X 6% = 12%
Thus there is no change in that case on return on total investments.
a) Baker's profit margin = 7.5%
b) Thus there is no change in that case on return on total investments.
Final answer:
Baker Oats' profit margin is calculated as 7.5%. Its return on total assets remained at 12% despite changes in asset turnover and profit margin in the following year. The firm's accounting profit in the self-check question was $50,000.
Explanation:
To calculate Baker Oats's profit margin, we use the formula for Return on Total Assets (ROTA):
ROTA = Asset Turnover × Profit Margin
Given that ROTA is 12% and Asset Turnover is 1.6 times per year, the profit margin (PM) can be calculated as:
ROTA / Asset Turnover = PM
12% / 1.6 = PM
PM = 7.5%
For part b, to find how the return on total assets changed when the assets turnover went up to 2 times and profit margin decreased to 6%, we calculate:
New ROTA = New Asset Turnover × New Profit Margin
New ROTA = 2 × 6%
New ROTA = 12%
Even though the profit margin decreased, the increase in asset turnover kept the ROTA the same year-over-year.
As for the self-check question provided: The accounting profit is calculated by subtracting explicit costs from total revenues.
Accounting Profit = Total Revenue - (Labor Costs + Capital Costs + Material Costs)
Accounting Profit = $1,000,000 - ($600,000 + $150,000 + $200,000)
Accounting Profit = $1,000,000 - $950,000
Accounting Profit = $50,000
Which of the following is an essential characteristic of enduringly great companies? They undergo continuous change. They are solely driven by incremental improvements. They focus on beating the competition. They oppose experimentation. They are risk averse.
Answer:
The answer is (A) They undergo continuous change.
Explanation:
To remain competitive in today’s world, a company must be willing to continue changing according to what the market currently needs and will need in the future. When a company remains stagnant, it would be outpaced by its competitors. Most of the household names that we commonly encounter maintains a spirit of continuous improvement – and we can encounter this from the innovative product they choose to make, better customer experience, or improvement in internal business process.
One of the biggest problems with telephone surveys is that
A. it takes too long to collect the results. B. they're too impersonal. C. the cost is higher than other methods. D. people often refuse to participate..
2
.help please
Answer:
One of the biggest problems with telephone surveys is that people often refuse to participate. - D.
Answer:
D. people often refuse to participate.
Explanation:
One of the biggest problems with telephone surveys is that people often refuse to participate. Many people ignore the calls or block the caller because they are not interested or refuse.
Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power. Greta is concerned with whether the segment is
Answer:
The answer is substantial.
Explanation:
Substantial, in the context of market segment, means that there are a number of people who are able to purchase the product based on the set price, and that there are a sufficient number of them for the business to make a worthwhile profit. Measuring how substantial a market segment is would help businesses determine market segments in a more effective manner, alongside criteria such as measurable, accessible, and actionable.
If someone offered to give you a $500,000 noninterest-bearing note that was due 5 years from today. (you will receive only one $500,000 payment three years from today) How much would you loan them if you wanted to earn an 6% annual interest rate that is compounded semiannually?
Answer:
We can accept the note giving 418,742.13 or less.
Explanation:
There is a note due in 5 year.
When someone offered this note, it was 3 years from maturity. Is asking you to purchase the note for cash.
The idea is that we receive 500,000 in the future.
For how much are we willing to accept the note?
We are going to discount the 500,000 in three years using our 6% rate compound semiannually.
[tex]Principal * (1+ \frac{r}{n} )^{time* n} = Ammount[/tex]
Where n is the times the rate compounds within a year.
semiannual rate, capitalize 2 times per year.
We post our givens and solve:
[tex]Principal * (1+ \frac{0.06}{2} )^{3* 2} = 500,000[/tex]
[tex]\frac{500,000}{(1 + 0.03)^{6}} = PV [/tex]
PV = 418742.1283
PV = 418,742.13
We can accept the note giving 418,742.13 or less.
Determine the following estimate without using a calculator. Then use a calculator to perform the computation necessary to obtain an exact answer. How reasonable is your estimate when compared to the actual answer? Estimate the total cost of six grocery items if their prices are $4.21, $7.19, $12.68, $2.02, $10.24, and $6.63, by rounding each price to the nearest dollar and then adding.
Answer:
Estimate: $43
Exact: $42.97
Explanation:
1. First we must identify the rules of rounding.
Any number you want to round to (ie: the nearest dollar, tenth, ect) you must look at the number behind it (ie: looking at the ones spot when asked to round to the nearest ten). This number behind is called the rounding digit.
If the rounding digit we are asked to round is a 0, 1, 2, 3, or 4, then we make the rounding digit and every number behind it a 0. This is call rounding down.
If the rounding digit we are asked to round to is a 5, 6, 7 , 8, or 9, then we make the rounding digit and every number behind it a 0. The number in front of the rounding digit (the place value we were asked to round to) becomes 1 digit higher. This is called rounding down.
2. We will now round all the numbers to the nearest dollar. So, our rounding digit will be the number behind the dollars, the tenths place.
4.21 → 4.21 → rounding down → 4.00 → 4
7.19 → 7.19 → rounding down → 7.00 → 7
12.68 → 12.68 → rounding up → 13.00 → 13
2.02 → 2.02 → rounding down → 2.00 → 2
10.24 → 10.24 → rounding down → 10.00 → 10
6.63 → 6.63 → rounding up → 7.00 → 7
3. Next, we will take all our rounded numbers and add them up.
4 + 7 = 11
↓
11 + 13 = 24
↓
24 + 2 = 26
↓
26 + 10 = 36
↓
36 + 7 = 43
4. Then, add up all the original prices.
4.21 + 7.19 = 11.40
↓
11.40 + 12.68 = 24.08
↓
24.08 + 2.02 = 26.10
↓
26.10 + 10.24 = 36.34
↓
36.34 + 6.63 = 42.97
5. The estimate, when compared to the actual answer, is very comparable because the estimate is only $0.03 more than the actual amount. The two are less than 10¢ away from each other. The efficiency had when rounding and the close proximity to the real answer makes the two very comparable.
To estimate the total cost of six grocery items, you round each price to the nearest dollar and add them which gives $43. The exact total calculated with a calculator is $42.97. The estimate is reasonable because it is very close to the exact total.
Explanation:To estimate the total cost of those six grocery items, you round the individual prices to the nearest dollar before adding them up. Here's how it's done:
$4.21 rounds to $4$7.19 rounds to $7$12.68 rounds to $13$2.02 rounds to $2$10.24 rounds to $10$6.63 rounds to $7The sum of those rounded numbers is $43 which is your estimated total cost.
To get the exact total cost, you add the original prices with a calculator:
$4.21 + $7.19 + $12.68 + $2.02 + $10.24 + $6.63 = $42.97The estimate is reasonable because it is very close to the exact total cost.
Learn more about Estimation here:https://brainly.com/question/16131717
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ark each of the items in the following list with letters to indicate whether it would be listed as an Asset, Liability or Equity item on the balance sheet or Revenue or Expense item on the income statement.a.Accounts Receivableb. Sales c.Equipmentd. Supplies Expensee. Cashf.Accounts Payableg.Retained Earningsh. Revenuei.Contributed Capitalj.Cost of Goods Soldk.Notes Payablel.Selling and Administrative Expenses
Answer: These could be categorized as follows :-
Explanation:
a. Accounts receivable = Asset in balance sheet
b. Sales = Revenue in income statement
c. Equipment = Asset in balance sheet
d. Supplies expense = Expense in income statement
e. Cash = Asset in balance sheet
f. Accounts payable = Liability in balance sheet
g. Retained Earnings = Equity in balance sheet
h. Revenue = Revenue in income statement
i. Contributed Capital = Equity in balance sheet
j. .Cost of Goods Sold = Expense in income statement
k. Notes Payable = Liability in balance sheet
l. Selling and Administrative Expenses = Expense in income statement
Central Metals, Inc. is considering investing in a silver mine. An investment of $500,000 would be made for one year with the following potential outcomes: What's the expected rate of return? Rate of Return Probability of Outcome 150% .10 60% .25 35% .50 (100%) .15 15.2% 120% 50% 32.5%
Answer:
The expected rate of return is 32.5%
Explanation:
The expected rate of return is equal to the sum of all the outcomes. So, in order to obtain the rate of return, you have to multiply each possible outcome by its probability of occurrence. Note that the sum of [tex]0.10 + 0.25 + 0.50 + 0.15 = 1 = 100%[/tex], that means that the probability of all outcomes has to sum 100%.
The result of each outcome multiplied by its probability is:
[tex]150% * 0.10 = 0.15[/tex][tex]60% * 0.25 = 0.15[/tex][tex]35% * 0.50 = 0.175[/tex][tex](100%) * 0.15 = (0.15)[/tex]The result of the sum of those calculations is equal to 0.325, or 32.5%.
The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts:
Accounts receivable $441,000 Debit
Allowance for Doubtful Accounts 1,310 Debit
Net Sales 2,160,000 Credit
All sales are made on credit.
Based on past experience, the company estimates 2.5% of ending accounts receivable will be uncollectible.
What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
a. Debit Bad Debts Expense $11,025; credit Allowance for Doubtful Accounts $11,025.
b. Debit Bad Debts Expense $9,715; credit Allowance for Doubtful Accounts $9,715.
c. Debit Bad Debts Expense $12,335; credit Allowance for Doubtful Accounts $12,335.
d. Debit Bad Debts Expense $5,400; credit Allowance for Doubtful Accounts $5,400.
e. Debit Bad Debts Expense $15,400; credit Allowance for Doubtful Accounts $15,400.
Answer:
The adjusting entry at the end of the year is option c.
Debit Bad Debts Expense $12,335;
credit Allowance for Doubtful Accounts $12,335
Explanation:
Bad debt : The amount which is not received by the customer for good supplied by the company is treated as a bad debt.
In the given question,
The 2.5% of ending accounts receivable will be uncollectible so, the allowance would be equals to
= 2.5 % of Accounts receivable
= 2.5 % × $441,000
= $110,25
Now add the allowance for doubtful accounts to the allowance which is calculated above.
So,
= $110,25 + 1,310
= $12,335
The estimated bad debts expense is $12,335
Hence, the adjusting entry at the end of the year is option c.
Debit Bad Debts Expense $12,335;
credit Allowance for Doubtful Accounts $12,335
Final answer:
The correct adjusting entry to record the estimated bad debts expense, considering the percent of receivables method and the current debit balance in the Allowance for Doubtful Accounts, is to debit Bad Debts Expense and credit Allowance for Doubtful Accounts by $12,335. Option C is correct.
Explanation:
To determine the adjusting entry for bad debts expense using the percent of receivables method, we first calculate the desired ending balance in the Allowance for Doubtful Accounts. This is done by multiplying the ending accounts receivable balance by the bad debt percentage, which is 2.5% in this case. So, the calculation is $441,000 * 2.5% = $11,025.
Next, we need to adjust the current balance in the Allowance for Doubtful Accounts to reach the calculated desired balance. The existing balance is a debit of $1,310, which is unusual as this account typically has a credit balance. To correct this and achieve the desired credit balance of $11,025, we need to add both the desired ending balance and the absolute value of the current balance, resulting in an adjusting entry of $11,025 + $1,310 = $12,335.
The correct adjusting entry is therefore: Debit Bad Debts Expense $12,335; credit Allowance for Doubtful Accounts $12,335. This adjusts the Allowance for Doubtful Accounts to the proper credit balance, reflecting the estimated uncollectible receivables.
How is job order and process costing similar?
Answer: The following are the similarities between job order and process costing:
Explanation:
Job order costing and process costing have significant similarities:
Both job and process cost frameworks have a similar objective: to decide the expense of items.
Both job and process cost frameworks have a similar cost streams. Bookkeepers record production in separate records for materials stock, work, and overhead. At that point, they move the expenses to a Work in Process Inventory account.
Both job and process cost frameworks used predetermined overhead rates to apply overhead.
The price of a cup of coffee is $2.00 and the price of a cookie is $1.00. Mary has $8 a day to spend on coffee and cookies. Draw Mary's budget line. Label it. The budget line marks the boundary between ______. A. what Mary can afford and what she cannot afford B. what Mary would like to buy and what she would not like to buy C. what Mary wants and what Mary needs D. what is essential and what is a luxury good for Mary
Answer:
A. what Mary can afford and what she cannot afford
Explanation:
The line will be the combination between Cookies and coffees she can afford with his daily income of 8
She can afford to purchase any combination on the line or below the line
for example,
She can buy either 4 coffees = 8
3 coffees 2 cookies = 8
2 coffee 4 cookies = 8
1 coffe 6 cookies = 8
8 cookies = 8
or just 1 coffe = 2
She cannot afford above the line
4 coffe and 3 cookies = 4*2 + 3 *1 = 11
From 1970 to 2010, the real price of eggs decreased and the total annual consumption of eggs decreased. Which of the following would cause an unambiguous decrease in the real price of eggs and an unambiguous decrease in the quantity of eggs consumed? Select one:
a. A shift to the left in the supply curve for eggs and a shift to the right in the demand curve for eggs.
b. A shift to the left in the supply curve for eggs and a shift to the left in the demand curve for eggs.
c. none of the other choices is correct
d. A shift to the right in the supply curve for eggs and a shift to the right in the demand curve for eggs.
Answer:
The correct answer would be Option C, None of the other choices are correct.
Explanation:
Demand and supply curves are plotted on a graph containing quantity and price of the product on x axis and y axis respectively. The intersection of demand and supply curves give us the accurate quantity at an accurate price of the product. Any shift of the curve will result in the surplus or shortage of the product. So in this question, it is asked the reason for the decrease in the quantity of eggs consumed. So the answer is A shift to the right in the supply curve for eggs and a shift to the left in the demand curve for eggs will result in an unambiguous decrease in the quantity of eggs consumed.
The question asks for a scenario that would result in a decrease in both the real price of eggs and the total annual consumption of eggs. The correct answer is Option b: a simultaneous leftward shift in both the supply and demand curves, which leads to an unambiguous decrease in the equilibrium quantity and an ambiguous impact on price, but given the historical data on actual price decrease, this would be the cause.
Explanation:To determine the cause of an unambiguous decrease in both the real price of eggs and the total annual consumption of eggs, we need to consider the effects of shifts in both the supply and demand curves. Let's review the given options:
Option a: A leftward shift in the supply curve would typically increase the equilibrium price, while a rightward shift in the demand curve would increase both the equilibrium price and quantity.Option b: A leftward shift in the supply curve would increase the equilibrium price and decrease the equilibrium quantity. A leftward shift in the demand curve, however, would decrease both the equilibrium price and quantity. Therefore, a simultaneous leftward shift in both the supply and demand curves for eggs would result in an ambiguous change in the equilibrium price but an unambiguous decrease in the equilibrium quantity.Option c: This option suggests that none of the other choices would lead to both a decrease in the real price and quantity consumed of eggs, which aligns with our assessment of options a and b.Option d: A rightward shift in the supply curve would lead to a decrease in the equilibrium price and an increase in the equilibrium quantity, whereas a rightward shift in the demand curve would increase both the equilibrium price and quantity.Given these analyses, the correct answer is Option b: A shift to the left in the supply curve and a shift to the left in the demand curve for eggs. This is the only scenario provided that could lead to a decrease in both price and quantity consumed.
For a certain product, the cost function is linear with fixed costs of $480. If the product will sell for $25 per unit and the break even quantity is 80 units, find the marginal cost and marginal profit for the product.
Answer:
Marginal Cost = $19
Marginal Profit = $6
Explanation:
Break even quantity = [tex]\frac{fixed cost}{contribution per unit}[/tex]
80 = [tex]\frac{480}{contribution}[/tex]
Contribution = [tex]\frac{480}{80}[/tex] = 6 per unit
Contribution = Sales - Variable cost = $25 - VC = $6
$25 - $6 = VC = $19
Marginal cost is cost incurred for every additional unit produced, i.e. variable cost = $19, as fixed cost remains constant.
Marginal revenue is additional revenue on sale of every unit = contribution per unit = $6
Marginal cost = $19
Marginal Profit = $6