Answer:
Follows are the solution to this question:
Explanation:
In Option 1:
[tex]\to CM \ ratio = \frac{(Sales - variable\ cost)}{variable\ cost}[/tex]
[tex]= \frac{(306,000 - 192,780)}{306,000}\\\\= \frac{113,220}{306,000}\\\\= 0.37 \%[/tex]
In Option 2: .
[tex]\to BEP = \frac{Total \ fixed \ cost}{CM \ ratio}[/tex]
[tex]= \frac{73,075}{0.37}\\\\=\$ \ 197500[/tex]
In Option 3:
[tex]\to Required \ sales = \frac{(73,075+ 78,070)}{0.37}[/tex]
[tex]=\frac{151145}{0.37}\\\\=408500[/tex]
In Option 4:
[tex]\to Sales A = 408500 \times \frac{30}{100} = 1361666.67\\\\\to Sales B = 408500\times \frac{48}{100} = 851041.667\\\\\to Sales C = 408500\times \frac{22}{100} = 1856818.18\\\\[/tex]
The quantity demanded of turkey decreased from 5,000 to 4,750 when the price of chicken decreased from $2.00 to $1.90. What is the estimated cross-price elasticity of demand for turkey
Answer:
The estimated cross price elasticity of demand is -1
Explanation:
Here, we want to calculate the cross-price elasticity value
Mathematically, the cross price elasticity value is;
Percentage change in quantity of turkey/percentage change in price of chicken
percentage change in quantity of turkey will be
(4750-5000)/5000 = -0.05%
Percentage change in price of chicken will be
(1.9-2.0)/2 = -0.05
So the cross-price elasticity if demand will be ; 0.05/-0.05 = -1
A capital investment project is expected to generate an incremental increase in revenues of $15 million and an incremental increase in operating costs of $10 million during its first year. Year 1 incremental depreciation expense is $5 million. The firm’s interest expense will increase by $2 million during year 1. If the firm’s marginal tax rate is 35% what is the year 1 incremental after-tax cash flow for capital budgeting purposes?
Answer:
$5,000,000
Explanation:
Particulars Amount
incremental increase in revenues $15,000,000
- Incremental increase in operating costs $10,000,000
- Incremental depreciation expense $5,000,000
Earnings before interest and taxes $0
Tax ($0 *35%) $0
Operating Income $0
+ Incremental depreciation expense $5,000,000
After Tax Cash flow for capital budgeting $5,000,000
ere are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales $
888.00
Cost of goods sold
748.00
Depreciation
38.00
Earnings before interest and taxes (EBIT) $
102.00
Interest expense
19.00
Income before tax $
83.00
Taxes
17.43
Net income $
65.57
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $
376
$
326
Long-term assets
272
229
Total assets $
648
$
555
Liabilities and shareholders’ equity
Current liabilities $
201
$
164
Long-term debt
115
128
Shareholders’ equity
332
263
Total liabilities and shareholders’ equity $
648
$
555
The company’s cost of capital is 8.5%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)
d. Is the company creating value for its shareholders?
Answer:
c
Explanation:
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $24,000 and variable expenses of $6,480. Product Y45E had sales of $29,000 and variable expenses of $11,010. The fixed expenses of the entire company were $32,280. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company: Multiple Choice could increase or decrease. would increase. would not change. would decrease.
Answer:
would decrease.
Explanation:
The computation is shown below:
As we know that
Contribution = Sales - Variable Expenses
And,
PV Ratio = Contribution margin ÷ Sales
So, PV Ratio of C90B is
= ($24,000 - $6,480) ÷ $24,000
= 73%
And PV Ratio of Y45E is
= ($29,000 - $11,010) ÷ ($29,000)
= 62.03%
It increases in overall PV ratio also overall contribution would be more that reduced the break even point
"Should Dillard's keep its excellent department store credit card program? ______ Yes ______ No" is an example of _____.
Answer:
The answer is "making assumptions"
Explanation:
The making assumption is determined if it can't be provided to claim which is not confirmed unless the argument is one, which you or the writer could show if they tried, users must decide. It requires as a considering as thinks about both the subject so on that basis evaluating the statement.
It is the one way the mind saves power becomes to find patterns in how the environment functions, that draw from our previous history. It adopts such trends, or beliefs, to the current world when we experience new circumstances. Its approach saves us the power to evaluate the condition entirely fresh.According to Nohria, Groysberg, and Lee, within an organization, the primary lever to address the drive to ____ is the reward system.
Answer:
Civillization
Explanation:
What is the beta for a 2 stock portfolio with a 0.54 weight in Walmart stock and the remainder in Amazon
Answer: 0.73
Explanation:
Walmart Beta = 0.3616
Amazon's beta = 1.1634
The beta of the portfolio will be a weighted average of the portfolio beta;
= (Walmart beta * Walmart weight) + ( Amazon beta * Amazon weight)
= (0.3616 * 0.54) + ( 1.1634 * (1 - 0.54))
= 0.730428
= 0.73
Qualitative Risk Assessment. Imagine that you are a member of a project team that has been charged with developing a new product for the residential building industry. Using a qualitative risk analysis matrix, develop a risk assessment for a project based on the following information: : Identified risk factors Likelihood 1. Key team members pulled off project 1. High 2. Chance of economic downturn 2. Low 3. Project funding cut 3. Medium 4. Project scope changes 4. High 5. Poor spec. performance 5. Low Based on this information, how would you rate the consequences of each of the identified risk factors? Why? Construct the risk matrix and classify each of the risk factors in the matrix.
Answer:
As a member of a project team charged with developing a new project i will firstly address the risk factors with very high consequences first because this risk factors if not addressed will posses a very serious issue when trying to carry out the new project.
Explanation:
Attached below is the detailed solution
As a member of a project team charged with developing a new project i will firstly address the risk factors with very high consequences first because this risk factors if not addressed will posses a very serious issue when trying to carry out the new project.
If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
there are no cash flows given, so I will use another question as an example:
NCF year 0 = -$1,150,000
NCF year 1 = $275,000
NCF year 2 = $275,000
NCF year 3 = $275,000
NCF year 4 = $275,000
NCF year 5 = $275,000
NCF year 6 = $275,000
NCF year 7 = $275,000
a) when cash flows are the same for all the years, you can use an ordinary annuity factor:
PV = $275,000 x 4.86842 (PV annuity factor, 10%, 7 periods) = $1,338,815.50
NPV = -$1,150,000 + $1,338,815.50 = $188,815.50
b) PV = $275,000 x 3.81153 (PV annuity factor, 18%, 7 periods) = $1,048,170.75
NPV = -$1,150,000 + $1,048,170.75 = -$101,829.25
c) PV = $275,000 x 3.24232 (PV annuity factor, 18%, 7 periods) = $891,638
NPV = -$1,150,000 + $891,638 = -$258,362
If the cash flows are different, then you must discount each cash flow individually.
E.g. NCF year 0 = -$150,000
NCF year 1 = $75,000
NCF year 2 = $85,000
NCF year 3 = $95,000
NPV = -$150,000 + $75,000/1.1 + $85,000/1.1² + $95,000/1.1³ = $59,804.66
A middle-aged aircraft mechanic is laid off from his job after improved technology (robotics and machine learning) reduces the need for workers. This type of:______
Answer: Structural unemployment
Explanation:
A middle-aged aircraft mechanic is laid off from his job after improved technology (robotics and machine learning) reduces the need for workers. This type of Structural unemployment.
Structural unemployment is an unemployment that occurs when the workers doesn't have the necessary skills which are required for the job and this occurs when there's improvement in technology or when the economy undergoes changes. In this case, their skills become obsolete.
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,700 hours.
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget—Welding Department
For the Month Ended May 31
1 Variable costs:
2 Indirect factory wages $40,020.00
3 Power and light 20,880.00
4 Indirect materials 17,400.00
5 Total variable cost $78,300.00
6 Fixed costs:
7 Supervisory salaries $19,800.00
8 Depreciation of plant and equipment 35,700.00
9 Insurance and property taxes 18,450.00
10 Total fixed cost 73,950.00
11 Total factory overhead cost $152,250.00
During May, the department operated at 9,080 standard hours, and the factory overhead costs incurred were indirect factory wages, $42,268; power and light, $22,064; indirect materials, $18,700; supervisory salaries, $19,800; depreciation of plant and equipment, $35,700; and insurance and property taxes, $18,450.
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,080 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter favorable variances as negative amounts.
Factory Overhead Cost Variance Report
Shaded cells have feedback.
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter favorable variances as negative amounts.
Score: 106/174
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget - Welding Department
For the Month Ended May 31
1 Productive capacity for the month 8,700 hours
2 Actual production for the month 9,080 hours
3
4 Budget (at Actual Production) Actual Variances: Favorable Variances: Unfavorable
5 Variable factory overhead costs:
6 ✔ ✔
7 ✔ ✔
8 ✔ ✔
9 ✔ ✔
10 Fixed factory overhead costs:
11 ✔ ✔
12 ✔ ✔
13 ✔ ✔
14 ✔ ✔
15 ✔ ✔
16 ✔
17
18 ✔
19 ✔
20 ✔
Answer:
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget—Welding Department
For the Month Ended May 31 Budgets
1 Variable costs: Static Flexible Actual Variance
2 Indirect factory wages $40,020 $41,768 $42,268 $500 U
3 Power and light 20,880 21,792 22,064 272 U
4 Indirect materials 17,400 18,160 18,700 540 U
5 Total variable cost $78,300 $81,720 $83,032 $1,312 U
6 Fixed costs:
7 Supervisory salaries $19,800 $19,800 $19,800 None
8 Depreciation of plant & equipment 35,700 35,700 35,700 None
9 Insurance and property taxes 18,450 18,450 18,450 None
10 Total fixed cost 73,950 $73,950 $73,950 None
11 Total factory overhead cost $152,25 $155,670 $156,982 $1,312 U
Explanation:
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget—Welding Department
For the Month Ended May 31
1 Variable costs: Static Flexible Actual Variance
2 Indirect factory wages $40,020 $41,768 $42,268 $500 U
3 Power and light 20,880 21,792 22,064 272 U
4 Indirect materials 17,400 18,160 18,700 540 U
5 Total variable cost $78,300 $81,720 $83,032 $1,312 U
6 Fixed costs:
7 Supervisory salaries $19,800 $19,800 $19,800 None
8 Depreciation of plant & equipment 35,700 35,700 35,700 None
9 Insurance and property taxes 18,450 18,450 18,450 None
10 Total fixed cost 73,950 $73,950 $73,950 None
11 Total factory overhead cost $152,25 $155,670 $156,982 $1,312 U
Flexing the budget:
Indirect factory wages $40,020.00/8,700 * 9,080 = $41,768
Power and light 20,880.00/8,700 * 9,080 = $ 21,792
Indirect materials 17,400.00 /8,700 * 9,080 = $18,160
Total variable cost $78,300.00/8,700 * 9,080 = $81,720
If a firm has a sales price per unit of $6.00, a variable cost per unit of $4.00, and a break-even point of 40,000 units, fixed costs are equal to
Answer:
$80,000
Explanation:
From marginal analysis concepts, the break-even point is determined using the formula.
Break-even in units = fixed cost / contribution margin per unit
For this firm,
break -even = 40,000 units
Contribution margin per unit = selling price - variable costs
=$6 - $4 =$2
Therefore:
40,000 = fixed costs/ $2
Fixed costs = $40,000 x 2
Fixed costs = $80,000
If the average propensity to consume is 0.75, and the marginal propensity to consume is 0.70, if income rises by $4,000, consumption will increase by _____. (Remember when we use APC versus MPC. Use only one for this question).
Answer:
$2,800
Explanation:
The computation of the increase in consumption is shown below:
= Marginal propensity to consume × rise in income
= 0.70 × $4,000
= $2,800
Hence, the consumption would be increased by $2,800
We simply applied the above formula i.e. marginal propensity to consume is multiplied with the rise in income so that the correct answer could come
What was this product's net operating income (loss) last year? last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable expenses are $40 per unit and its fixed expenses are $540,000 per year. required: 1. what was this product's net operating income (loss) last year? 2. what is the product's break-even point in unit sales and dollar sales? 3. assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. if the company will only consider price reductions in increments of $2 (e.g., $68, $66, etc.), what is the maximum annual profit that it can earn on this product? what sales volume and selling price per unit generate the maximum profit? 4. what would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement 3?
Answer:
1. What was the product's operating income(loss) last year = $90,000 loss
2. What is the product's Break even point in unit sales and dollars
• Break even sales in units 18,000
• Break even i n sale dollars $1,260,000
3. Maximum annual profit given an increment of 5,000 units and reduction of sales price per unit by $2.
• Net profit of $20,000
4. What would be the break even point in unit sales and dollars using the selling price that you determined in requirement 3.
• Break even sales units 19,285.7
• Break even in sales dollars $1,311,427.6
Explanation:
Please see attached detailed solution to the above questions and answers.
The product's net operating loss last year was $90,000.
The net operating loss will be calculated thus:
Sales (15000 × 70) = 1050000Less: Variance cost (15000 × 40) = 600000Contribution margin = 450000Less: fixed cost = 540000Net operating loss = 90000The product's break even sales in units will be:
= $540000 / $30
= 18,000
The break even in sale in dollars will be:
= 18000 × 70
= $1,260,000
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An office building with an adjusted basis of $320,000 was destroyed by fire on December 30, 2020. On January 11, 2021, the insurance company paid the owner $450,000. The fair market value of the building was $500,000, but under the co-insurance clause, the insurance company is responsible for only 90 percent of the loss. The owner reinvested $410,000 in a new office building on February 12, 2021, that was smaller than the original office building. What is the recognized gain and the basis of the new building if § 1033 (nonrecognition of gain from an involuntary conversion) is elected?
Answer:
Recognized gain or loss = $40,000
Basis of the new building = $320,000
Explanation:
Total gain = Insurance Claim - Adjusted Basis of destroyed Building
Total gain = $450,000-$320,000 = $130,000
if Section 1033 (nonrecognition of gain from an involuntary conversion) is elected
Recognized Gain = Insurance Claim – the Greater of Replacement Cost or the Adjusted Basis of Building
Recognized gain or loss = $450,000-$410,000
Recognized gain or loss = $40,000
Deferred Gain = Total gain - Recognized gain or loss
Deferred Gain= $130,000-$40,000
Deferred Gain = $90,000
Basis of the new building if Section 1033 (nonrecognition of gain from an involuntary conversion) is elected
Basis of the new building = Investment - Deferred Gain
Basis of the new building = $410,000 - $90,000
Basis of the new building = $320,000
Karla owns a monopolistically competitive firm that has many competitors that advertise. What can Karla realistically hope to achieve if she decides to advertise as well?
Answer:
1.) Katy can educate her consumers about the differences between her store and her competitors.
2.) Katy can protect her consumer base.
Explanation:
Using advertisements, Katy can show her consumer the differences and advantages that her products have over those of her competitors thereby encouraging them to patronise her.
She can also use these adverts to protect her customer base from her competitors because when they see the adverts, they will be even more encouraged to keep buying from Katy and will thus be less likely to switch to her competitors.
The other two options are incorrect.
Question 7 At Runner, the engraving department is a bottleneck, and the company is considering hiring an extra worker, whose salary will be $69,873 per year, to mitigate the problem. With the extra worker, the company will be able to produce and sell 7,700 more units per year. The selling price per unit is $15.00. Cost per unit currently is $7.81 as follows: Direct material $2.77 Direct labor 0.90 Variable overhead 0.24 Fixed overhead (primarily depreciation of equipment) 3.90 Total $7.81 Calculate the annual financial impact of hiring the extra worker. The annual net profit will by $ by hiring the extra worker.
Answer and Explanation:
Given:
Cost of extra worker salary = $69873
Units with extra worker =7700 units per year
Selling price = $15.00
Cost per unit = $7.81
(Direct material = $2.77
Direct labour = $0.90
Variable overhead = $0.24
Fixed overhead = $3.90)
Calculate net income:
Sale revenue($15*7700units) =$115500
Deduct expenses:
Direct material ($2.77*7700units) =$21329
Direct labour($0.90*7700 units)= $6930
Variable overhead(0.24*7700 units) =$1848
Fixed overhead allocated(3.90*7700 units) = $30030
Net profit = $55363
Therefore profit increases with additional worker
At the end of the year, the deferred tax asset account had a balance of $4 million attributable to a temporary difference of $16 million in a liability for estimated expenses. Taxable income is $44 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized.
Answer:
1 . Dr ncome tax expense 7
Dr Deferred tax asset 4
Cr Income tax payable 11
2. Dr Income tax expense3
Cr Valuation allowance-Deferred tax asset3
Explanation:
Preparation of Journal entries
JournalDebitCredit
(In million)
1 . Dr ncome tax expense 7
($11-$4=7)
Dr Deferred tax asset 4
($16× 25% = $4)
Cr Income tax payable 11
($44 × 25% = $11 )
2. Dr Income tax expense3
Cr Valuation allowance-Deferred tax asset3
(3/4 × $4) = $3 million
Deferred tax asset= ($16× 25%)
Deferred tax asset= $4 million
Income tax payable= ($44 × 25%)
Income tax payable= $11 million
Bernie Madoff invites you to invest $1,000 in his fund now and be guaranteed at least $1,500 in 4 years. What is the effective rate that Mr. Madoff is promising you?
Answer: 10.67%
Explanation:
Mr Madoff is offering to grow the current value of $1,000 to a future value of $1,500 in 4 years.
This is a future value problem.
1,500 = 1,000 * ( 1 + interest) ^ 4 years
( 1 + interest) ^ 4 = 1,500/1,000
( 1 + interest) = 4√(1,500/1,000)
1 + interest = 1.1066819197
Interest = 1.1066819197 - 1
= 10.67%
Last year Janet purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.21%. If Janet sold the bond today for $993.14, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
20.10%
Explanation:
The first task is to compute the bond's purchase price last year which is found using the bond price formula below:
bond price=face value/(1+r)^n+ annual coupon*(1-(1+r)^-n/r
face value=$1000
r=yield to maturity=12.21%
n=number of annual coupons in 15 years=15
annual coupon=face value*coupon rate=$1000*11%=$110
bond price=1000/(1+12.21%)^15+110*(1-(1+12.21%)^-15/12.21%
bond price=1000/(1+12.21%)^15+110*(1-0.177634192 )/12.21%
bond price=$918.50
Rate of return=(price today-initial price+coupon received)/initial price
price today= $993.14
initial price=$918.50
coupon received(for 1 year)=$110
Rate of return=($993.14-$918.50+$110)/$918.50=20.10%
By the end of 2022, Humanity International has the benefit of hindsight to know that estimates of uncollectible accounts in 2021 were too high. How did this overestimation affect the reported amounts of total assets and expenses at the end of 2021
Answer:
Humanity International
The overestimation of the uncollectible accounts in 2021 reduced the reported amount of total assets and increased the total amount of expenses at the end of 2021.
Explanation:
When the uncollectible accounts in 2021 were overestimated, the uncollectible expense for the year was also overestimated. This increased the total amount of expenses for that year. In turn, the total amount of assets was decreased since the uncollectible allowance is usually deducted from an element of the assets (Accounts Receivable).
On December 31, 2019, The Bates Company's revenue is $440,000 and expenses total $340,000 before consideration of the following: Accrued wages total $21,000; Accrued revenues total $56,000; Depreciation expense is $27,000; Rental revenue of $7,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue; The income tax rate is 40% of income before income taxes. What is Bates' net income after consideration of the above information
Answer:
Explanation:
Revenue = $440,000
Expenses = $340000
Accrued wages = $21000
Accrued revenues = $56000
Depreciation exp = $27000
Rental value earned but not recorded = $7000
Income tax rate = 40%
Total revenue = 440000 +56000 + 7000 = $503000
Total expenses = 340000 + 21000 + 27000 = $388000
Income before tax = 503000 - 388000 = $115000
income tax = 115000 x .4 = $46000
Net income = 115000 - 46000 = $69000 .
When new facilities are built and operated overseas that require large investment of capital because these new establishments are tailored to the exact needs of the home country firm, it is called a(n) _____.
a. exporting.b. subsidiary.c. strategic alliance.d. multinational enterprise.e. foreign acquisition.
Answer:
b. subsidiary
Explanation:
Subsidiaries are companies that belong to a larger parent company. They are usually established overseas as an extension of the parent company's operations.
Parent companies of the subsidiaries hold controlling interest in stock, therefore they tailor the subsidiaries to their exact needs.
When there is a 100% ownership by the parent company it is called a wholly owned subsidiary
Royal Enterprises has presented the following information for the past three months operations:
Month Units Average Cost
June 3,300 $ 11.80
July 5,700 $ 7.80
August 6,900 $ 7.00
a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.)
b. What would total costs be for a month with 5,300 units produced?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Month Units Average Cost
June 3,300 $ 11.80=38,940
July 5,700 $ 7.80 = 44,460
August 6,900 $ 7.00 = 48,300
To calculate the unitary variable cost and fixed costs under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (48,300 - 38,940) / (6,900 - 3,300)
Variable cost per unit= $2.6
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 48,300 - (2.6*6,900)
Fixed costs= $30,360
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 38,940 - (2.6*3,300)
Fixed costs= $30,360
Now, the total cost for 5,300 units:
Total cost= 30,360 + 2.6*5,300
Total cost= $44,140
Company incurred the following costs while producing units: direct materials, per unit; direct labor, per unit; variable manufacturing overhead, per unit; total fixed manufacturing overhead costs, ; variable selling and administrative costs, per unit; total fixed selling and administrative costs, . There are no beginning inventories. What is the operating income using absorption costing if units are sold for each?
Answer:
"$45" seems to be the correct answer.
Explanation:
The query given appears insufficient or unfinished. Please find attachment of the full questionnaire.
According to the question:
Direct Material
= 9
Variable Manufacturing Overhead
= 16
Direct Labor
= 20
Now,
The units product cost will be:
= [tex]Direct \ Material + Direct \ Labor +Variable \ Manufacturing \ Overhead[/tex]
= [tex]9+20+16[/tex]
= [tex]45[/tex]$
The following account titles and balances were taken from the adjusted trial balance of King Co. for Year 2. The company uses the periodic inventory system.
Account Title Balance
Sales returns and allowances $ 3,500
Miscellaneous expense 1,100
Transportation-out 2,500
Sales 155,000
Advertising expense 6,500
Salaries expense 21,600
Transportation-in 2,950
Purchases 85,000
Interest expense 450
Merchandise inventory, January 1 12,000
Rent expense 8,500
Merchandise inventory, 10,700
December 31
Purchase returns and allowances 2,500
Loss on sale of land 3,500
Utilities expense 1,750
Required:
1. Prepare a schedule to determine the amount of cost of goods sold.
2. Prepare a multistep income statement.
3. Prepare a single-step income statement.
Answer:
King Co.
1. Schedule of Cost of Goods Sold:
Merchandise inventory, January 1 $12,000
Purchases 85,000
Transportation-in 2,950
Purchase returns and allowances (2,500 )
Merchandise inventory, (10,700 )
Cost of goods sold $86,750
2. King Co.'s Multi-step Income Statement
For the year ended December 31:
Net Sales $151,500
Cost of goods sold 86,750
Gross profit $64,750
Expenses:
Miscellaneous expense 1,100
Transportation-out 2,500
Advertising expense 6,500
Salaries expense 21,600
Rent expense 8,500
Utilities expense 1,750
Total expenses $41,950
Operating income $22,800
Interest expense 450
Income before taxes $22,350
Loss on sale of land 3,500
Net Income $18,850
3. King Co's Single-step Income Statement
For the year ended December 31:
Net Sales $151,500
Cost of goods sold 86,750
Operating expenses 41,950
Interest expense 450
Loss on sale of land 3,500 132,660
Net Income $18,850
Explanation:
Data:
Sales $155,000
Sales returns and allowances (3,500)
Net Sales $151,500
Miscellaneous expense 1,100
Transportation-out 2,500
Advertising expense 6,500
Salaries expense 21,600
Rent expense 8,500
Utilities expense 1,750
Total expenses $41,950
Interest expense 450
Loss on sale of land 3,500
Transportation-in 2,950
Purchases 85,000
Purchase returns and allowances 2,500
Merchandise inventory, January 1 12,000
Merchandise inventory, 10,700
December 31
Akira Takano, a marketing manager, is about to test his hypothesis that if the price of a particular product is increased by $5, unit sales will increase by 10 percent. Akira is involved in ________ research.
Answer:
a. causal
Explanation:
The causal research refers to the research in which there is an investigation or the research would depend upon the cause and effect relationship.
It is known as explanatory research.
According to the given case, since the price is increased by $5 and the unit sale is risen by $10 so here the Akira involved in Causal research and the same is to be considered
Oklahoma Oil Corp. paid interest of $792,000 during 2021, and the interest payable account decreased by $129,500. What was interest expense for the year
Answer:
The interest expense for the year is $662,500.
Explanation:
The following are given in the question:
Interest paid during the year 2021 = $792,000
Amount of decrease in interest payable account = $129,500
The interest expense for the year can be calculated as follows:
Interest expense for the year = Interest paid during the year 2021 - Amount of decrease in interest payable account = $792,000 - $129,500 = $662,500
Therefore, the interest expense for the year is $662,500.
Define the limits of the principle of commonality in regards to individuals, government, and corporations.
Answer:
The answer is below
Explanation:
Given that principle of commonality deals with things that are generally good or beneficial to the whole society regardless of time, space, and cultures. For example, education. However, there are some limitations to the principle of commonality, in relations to government, corporations, and individuals, such as:
1. Lawful subordination: often, corporations are compelled to carry out their activities in a certain way, otherwise they will be sanctioned heavily. This can also be applied to individuals and governments when it comes to making decisions that need approval based on established laws and legal procedures.
2. Economic power: for most common goods that are considered beneficial to society are often capital intensive. Be either corporation, government, or individuals, need a good amount of capital to facilitate necessarily sustainable advancement.
For each account listed, identify whether the account would appear in either the income statement section or the balance sheet section of the worksheet. Assuming normal balances, identify if the account would be recorded in the debit (DR) or credit (CR) column. Account Section of worksheet Debit (DR) or Credit (CR) column? 8. Service Revenue 9. Accounts Payable 10. Cash 11. Depreciation Expense—Building 12. Sandy, Withdrawals 13. Accumulated Depreciation—Building
Answer:
dh xdr uh detox scv dry jcb dr utf xxv bird sync
Explanation:
weir acoustic rabbit eui Inc's zero
