The Cash account of Security Systems reported a balance of at , . There were outstanding checks totaling and a 31 deposit in transit of . The bank statement, which came from Cities Bank, listed the balance of . Included in the bank balance was a collection of on account from , a customer who pays the bank directly. The bank statement also shows a service charge and of interest revenue that earned on its bank balance. Prepare 's bank reconciliation at 31.
Answers
Answer:
Follows are the solution to this question:
Explanation:
please find the attached file.
Related Questions
As a result of a thorough physical inventory, Coronado Company determined that it had inventory worth $321000 at December 31, 2020. This count did not take into consideration the following facts: Walker Consignment currently has goods worth $46300 on its sales floor that belong to Coronado but are being sold on consignment by Walker. The selling price of these goods is $75000. Coronado purchased $21100 of goods that were shipped on December 27, FOB destination, that will be received by Coronado on January 3. Determine the correct amount of inventory that Coronado should report.
Answers
Answer:
The correct cost of inventory that Coronado should report is $367300
Explanation:
The goods sent on consignment still belong to the consignor until they are sold off by the consignee. So, the consignor should add the unsold consignment goods in its inventory. Thus we will add the cost of goods sent on consignment to the value of inventory.
Value of inventory = 321000 + 46300 = $367300
The goods purchased by Coronado on 27 December with FOB destination should not be added to the cost of inventory as with FOB destination terms, the goods do not belong to the buyer until they are delivered to their destination by the seller.
Thus, the correct cost of inventory that Coronado should report is $367300
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 1,100 units and of Product N0 is 200 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 1,100 8.0 8,800 Product N0 200 4.0 800 Total direct labor-hours 9,600 The direct labor rate is $24.10 per DLH. The direct materials cost per unit is $285.00 for Product R3 and $235.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 41,536 8,800 800 9,600 Production orders orders 56,010 1,200 200 1,400 Order size MHs 433,975 3,500 2,700 6,200 $ 531,521 The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) rev: 03_25_2018_QC_CS-119201 Multiple Choice $778.81 per unit $1,063.81 per unit $586.01 per unit $301.01 per unit
Answers
Answer:
Arntson, Inc.
The unit product cost of Product R3 under activity-based costing is closest to:
$778.81 per unit
Explanation:
a) Data and Calculations:
Annual production and sales:
Product R3 Product N0
Units 1,100 200
Direct Labor-Hours 1,100 200
Per Unit Total 8.0 4.0
Direct Labor-Hours 8,800 800
Total direct labor-hours 9,600
Direct labor rate is $24.10 per DLH.
Direct materials cost $285.00 $235.00
Estimated Expected Activity Cost Activity Measures Overhead Cost
Activity Pools
Overhead Cost Product R3 Product N0 Total
Labor-related DLHs $ 41,536 8,800 800 9,600
Production orders orders 56,010 1,200 200 1,400
Order size MHs 433,975 3,500 2,700 6,200
Total overhead costs $ 531,521
Activity rates: Product R3 Product N0
Labor-related DLHs $4.33 ($41,536/9,600) $38,104 $3,464
Production orders $40.00 ($56,010/1,400) 48,000 8,000
Order size MHs $70.00 ($433,975/6,200) 245,000 189,000
Total allocated overhead costs $331,104 $200,464
Product R3 Product N0
Units 1,100 200
Direct materials cost $285.00 $235.00 per unit
Total materials costs = $313,500 $47,000
Total direct labor costs 212,080 19,280
Total overhead costs 331,104 200,464
Total production costs $856,684 $266,744
Unit cost = $778.80 $1,333.72
Which of following is true regarding text messaging? They represent a secure mode of communication that cannot be intercepted. Instant messaging is not dependent on the availability of Internet or computers. They represent the best means to communicate long messages that must be archived. The guidelines for business use of texting are still evolving. Text messaging is transmitted primarily via computers.
Answers
Answer:
The guidelines for business use of texting are still evolving and they reapresent a secure mode of communication that cannot be intercepted are true regarding text messaging.
industry studies suggest that design activities introduce __ of all errors during the software process
Answers
Answer:
This question speaks to Computer Science.
The missing word is Correction.
Thus the complete sentence is: Industry studies suggest that design activities introduce correction of all errors during the software development process.
Explanation:
Requirements engineering is a branch of software development which appraises the needs that the software intends to meet and ensures that expectations are met. Errors at this stage can be very costly to correct if detected after the software is completed.
It is best practice for errors to be corrected during the feasibility stage. The next best phase to correct debug for errors and do major overhauls is during the design phase.
Cheers
The economic concept of scarcity refers to the idea that : APEX
Answers
Answer: Resources required to fulfil our needs are insufficient
Explanation:
Scarcity in economics is the term used to describe the notion that the needs of a society are infinite but the resources needed to satisfy these needs are finite.
This is why humans have to constantly make a trade-off between resources needed to satisfy a need by picking one alternative course of action that requires a resource over another.
Answer:
People have limited resources to fulfill their unlimited wants.
Explanation:
Warbler Gift's reported the following information for the sales of their single product: Total Per Unit Sales $ 300,000 $ 10 Variable expenses 180,000 6 Contribution margin 120,000 $ 4 Fixed expenses 100,000 Net operating income $ 20,000 Warbler's salesmen have proposed to decrease the selling price by 50 cents per unit. How many units will need to be sold for Warbler to earn at least the same net operating income
Answers
Answer: Requitred units =34,285.7 units
Explanation:
GIVEN
Total Per Unit Sales
$ 300,000 $ 10
Variable expenses 180,000 $6
Contribution margin 120,000 $ 4
Fixed expenses 100,000
Net operating income $ 20,000
New selling price=Old price - prosed price
=$10-$0.5 = $9.5
Revised contribution margin= Selling price-Variable costs
= $9.5-$6=$3.5
Proposed Contribution margin=Net operating income + Fixed expenses.
=(100,000 +20,000)= $120,000
Required units to be sold=Proposed Contribution margin/Contribution margin per unit
= $120,000/$3.5
=34,285.7 units
At the current year-end, Simply Company found that its overhead was underapplied by $2,500, and this amount was not considered material. Based on this information, Simply should:
Answers
Answer:
Close to the cost of goods sold
Explanation:
Since in the question it is mentioned that the simply found that the overhead was underapplied by $2,500 that means the expected overhead is less than the actual one
So the same is to close to the cost of goods sold account i.e. expenses account
Therefore the simply should close the $2,500 of underapplied overhead to the cost of goods sold
Under its executive stock option plan, N Corporation granted options on January 1, 2021, that permit executives to purchase 12.0 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $19 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives
Answers
Answer:
N. Corporation
The effect on earnings in the year after the options are granted to executives is a reduction in the net income by $16 million because of the Compensation Expense that will be recorded.
The journal entry on December 31, 2021 (a year after) is:
Debit Compensation Expense $16,000,000
Credit Stock Options $16,000,000
To record compensation expense.
Explanation:
a) Data and Calculations:
Options grant date = January 1, 2021
Options granted = 12.0 million shares
Options vesting date = December 31, 2023
There are 3 years before the vesting date
Fair value of the options = $4
Therefore, Total Compensation Expense = Options granted*Fair value per option
= 12,000,000 * $4
= $48,000,000
Annual compensation expense from 2021 to 2023 = $48,000,000/3
= $16,000,000
A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office building: Purchase price of the land $ 620,000 Sale of salvaged parts already on land $ 25,000 Demolition of the old building $ 23,000 Ground-breaking ceremony (food and supplies) $ 1,100 Land preparation and leveling $ 8,300 What amount should be recorded for the purchase of the land
Answers
Answer:
$651,300
Explanation:
Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.
Calculation of the cost of purchase of the land:
Purchase price $ 620,000
Demolition of the old building $ 23,000
Land preparation and leveling $ 8,300
Cost of purchase of the land $651,300
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $4,500 and liabilities decrease $4,500. One asset increases $4,500 and another asset decreases $4,500. Equity decreases $4,500 and liabilities increase $4,500. Equity increases $4,500 and liabilities decrease $4,500. Assets increase $4,500 and liabilities increase $4,500.
Answers
Answer: Assets increase $4,500 and liabilities increase $4,500.
Explanation:
An asset are the properties which a business or an organization owns. An asset possess an economic value.
Since the equipment purchased is an asset, this will lead to an increase of assets by $4500 and since it was bought on credit and hasn't been paid for, liabilities will also increase by $4500.
Assume that demand for gasoline is inelastic and supply is relatively elastic. The government imposes a sales tax on gasoline. The tax revenue is used to fund research into clean fuel alternatives to gasoline, which will improve the air we all breathe. Who bears more of the burden of this tax, consumers or producers
Answers
Answer:
The burden is borne mostly by consumers
Explanation:
A Tax is said to be a compulsory or a Mandatory payment to local, state, or national government while Revenueis said to be the income of government derived or gotten from tax and non tax sources
Sales tax is termed a type of tax that is usually based on the cost of the item purchased and collected directly from the buyer. It is also said to be fee charged upon by the total cost of things you buy. It is collected by the seller and added onto the price. It's is due to a percent set by the government. consumers bore the tax payment mostly.
Troy, a cash basis taxpayer, owns an office building. His records reflect the following for 20X1. On March 1, 20X1, office B was leased for twelve months for $12,000. A $900 security deposit was received which will be used as the last month's rent. On September 30, 20X1, the tenant in office A paid Troy $3,600 to cancel the lease expiring on March 31, 20X1. The lease of the tenant in office C expired on December 31, 20X1, and the tenant left improvements valued at $1,400. The improvements were not in lieu of any required rent. Considering just these four amounts, what amount must Troy include in rental income on his income tax return for 20X1?
a. $17,900
b. $17,000
c. $16,500
d. $13,800
Answers
Answer:
c. $16,500
Explanation:
The rental revenue from office B must be included even though 3 months of rent belong to 20x2 = $12,000 + the $900 security deposit (last moth of rent). The $3,600 received for canceling the lease of office A should also be included. Total rental income = $12,000 + $900 + $3,600 = $16,500.
Cash basis taxpayers recognize revenue when they collect money, and recognize expenses when they pay for them. There are some exceptions that apply to prepaid expenses or unearned revenue. This is known as the 12 month rule. It means that if the cash collection or payment do not extend for more than 12 months after they were made, then they can be recorded as either revenues or expenses during the current period. Since the rent was prepaid in advance for 12 months, then all the cash received must be considered revenue.
All against Common Sense. Back in mid 80s, the US economy was very bad. It was much worse than it is now. At that time, to the surprise of many people, US automakers raised the prices of their cars. The common sense says that when the sales are slow, we lower prices and offer better deals to customers. Why do you think that the US car manufacturers increase the prices?
Answers
Answer:
Explanation:
This most likely happened because in the 80's the economy was so bad that even by lowering their prices the middle-class families would still not be able to afford to buy a car. The only individuals able to afford a car would be those who are wealthy. Therefore, by increasing prices and targetting wealthy individuals, the US car manufacturers could become profitable with much fewer sales and prevent the manufacturing plant from going under. Since wealthy individuals would not mind much the increased prices because they can still afford it without making much of a dent in their wealth.
None of the following would be an advantage of self-administered surveys:
A) Reduced cost
B) Respondent control
C) Reduced interview evaluation apprehension
A. True
B. False
Answers
Answer:
B. False
Explanation:
A self-administered survey is one where there is the collection of the necessary data for the survey is carried out through a questionnaire of questions to be answered by the interviewee. Questionnaires can be sent via mail, e-mail, personal interception, hand delivery etc.
The advantages of self-administered surveys are cost reduction, since questionnaires can be sent via email at no cost to both, greater control of the interviewee, since the questions can be developed according to the information you want to collect, greater quick feedback, which reduces the apprehension of the interview evaluation.
False, the self-administered surveys would not be advantageous in terms of reduced interview evaluation apprehension. The Option B.
Would self-administered surveys be advantageous?Self-administered surveys eliminate the need for face-to-face interactions and direct interviewer involvement which can indeed reduce interview evaluation apprehension. When individuals complete surveys on their own, they may feel less pressured and more comfortable expressing their opinions.
But this advantage does not hold true for self-administered surveys as they are completed by the respondents themselves without the presence of an interviewer. Consequently, the absence of an interviewer does not contribute to a reduction in interview evaluation apprehension. Therefore, the Option B is correct.
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You have just found your dream home. The selling price is $120,000. You will put $20,000 down and obtain a 30-year fixed-rate mortgage at 7.25% compounded monthly for the rest. Suppose that in addition to the required monthly payment, you decide to make an additional principal payment along with your regular payment. How much extra must you pay each month (rounded to the nearest dollar) if you wish to pay off the loan in 20 years
Answers
Answer:
$108
Explanation:
The computation is shown below:
Given that
PV = 100,000, ($120,000 - $20,000)
FV = 0,
N = 360 (30 × 12 months)
rate = 7.25%/12
Now use PMT function in Excel
= PMT(RATE,NPER,-PV,FV,TYPE)
The present value comes in negative
After applying the above formula
The monthly payments is 682
Now replace N with 240 (20 years × 12 months)
So,
monthly payment = 790
Therefore
The difference is
= $790 - $682
= $108
5. The Market Place recently offered 5,000 shares of stock for sale via a Dutch auction. The firm received bids as follows: 500 shares at $22.50; 2,500 shares at $22.20; 3,300 shares at $22; and 5,500 shares at $21. Ignoring all costs, how much will the firm receive from this auction
Answers
Answer:
$110,000
Explanation:
No of Shares Price Total number of shares
500 22.50 500
2500 22.20 3000
3300 22.00 6800
5500 21.00 12300
In Dutch auction, share are allotted from highest no. of share to lowest at the price where all the shares are taken. So in this case, highest number of shares are asked by Bidder D which is 5500 shares (available 5000 shares). The bidder will be getting shares at $22 because this is the price when all the shares were taken.
Hence, the amount the firm will receive from this auction = 5,000 *22 = $110,000
The following information relates to a product produced by Faulkland Company: Direct materials $ 10 Direct labor 7 Variable overhead 6 Fixed overhead 8 Unit cost $ 31 Fixed selling costs are $1,000,000 per year. Variable selling costs of $4 per unit sold are added to cover the transportation cost. Although production capacity is 500,000 units per year, Faulkland expects to produce only 400,000 units next year. The product normally sells for $40 each. A customer has offered to buy 60,000 units for $30 each. The customer will pay the transportation company directly for the transportation charges on the units purchased. If Faulkland accepts the special order, the effect on operating profits would be a:
Answers
Answer:
$180,000 Increase
Explanation:
The effect on operating profits can be determined by calculating the incremental income or loss arising from the special order.
Incremental analysis of accepting special order
Sales (60,000 × $30) $1,800,000
Less Variable Costs :
Direct materials ($ 10 × 60,000) ($600,000)
Direct labor ($ 7 × 60,000) ($420,000)
Variable overhead ($ 6 × 60,000) ($360,000)
Selling Costs ( $4 × 60,000) ($240,000)
Incremental Income/(loss) $180,000
Conclusion :
If Faulkland accepts the special order, operating income will increase by $180,000.
Relay Corporation manufactures batons. Relay can manufacture 300,000 batons a year at a variable cost of$750,000 and a fixed cost of $450,000. Based on Relay's predictions, 240,000 batons will be sold at the regular price of $5.00 each. In addition, a special order was placed for 60,000 batons to be sold at a 40% discount off the regular price. Required: By what amount would income before income taxes be increased or decreased as a result of the special order
Answers
Answer:
The total rise in income is $30,000
Explanation:
The computation is shown below:
Sale price 3 {5 × (1 - 0.40)
Less: Incremental cost 2.5 ($750,000 ÷ 300,000)
Increase in income per unit 0.50
Divide by Total units 60,000
Total increase in income $30,000
Hence, the total rise in income is $30,000 and the same is to be considered
The total rise in income before tax is $30,000 as a result of a special offer when the Relay Corporation manufactures batons.
What is income?Income is defined as the consumption and saving opportunity achieved by a commodity within a nominal time structure, which is commonly represented in monetary words. Income is challenging to describe conceptually, and the explanation may be further across areas.
Computation of change in income:
According to the given information,
Regular price = $5.
Discount Rate=40%
Then sales price would be:
[tex]\text{Sale Price}= \text{Regular Price}(1- \text{Discount Rate})\\\\\text{Sale Price}=\$5 \text (1 - 0.40)\\\\\text{Sale Price}= \$3[/tex]
Then the incremental cost is:
[tex]\text{Incremental Cost}=\dfrac{ \text{Variable Cost}}{\text{Units Produced}}\\\\ \text{Incremental Cost}=\dfrac{\$750,000}{\$300,000}\\\\ \text{Incremental Cost}=2.5[/tex]
Increase in income per unit:
[tex]\text{Increase In Income}=\text{Sales Price}- \text{Incremental Cost}\\\\\text{Increase In Income}=\$3-\$2.5\\\\\text{Increase In Income}=0.50[/tex]
Therefore, the increase in income is :
[tex]=\text{Per unit Increase In Income}\times\text{Total Units}\\\\=0.50\times60,000\\\\=\$30,000[/tex]
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Which of the following are fixed costs in the federal budget
A) social security
B)medicare/medicaide
Answers
Answer:
Medicare
Explanation:
I think b because we can only get it free on very poor and undeveloped are but it cost high in developer area
1. If Canace Company, with a break-even point at $283,200 of sales, has actual sales of $480,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales?
2. If the margin of safety for Canace Company was 40%, fixed costs were $1,725,600, and variable costs were 60% of sales, what was the amount of actual sales (dollars)?
Answers
Answer:
Instructions are below.
Explanation:
1) Canace Company:
break-even point= $283,200
Actual sales= $480,000
To calculate the margin of safety, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 480,000 - 283,200= $196,800
Now, the margin of safety ratio:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= 196,800 / 480,000
Margin of safety ratio= 0.41
2)
Margin of safety ratio= 0.40
Fixed costs= $1,725,600
Variable costs were 60% of sales.
First, we need to calculate the contribution margin ratio:
contribution margin ratio= 1 - variable costs ratio
contribution margin ratio= 0.4
Now, we can calculate the break-even point in dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 1,725,600/0.4
Break-even point (dollars)= $4,314,000
Now, current sales:
Margin of safety ratio= (current sales level - break-even point)/current sales level
0.4 = (current sales level - 4,314,000) / current sales level
0.4current sales level = current sales level - 4,314,000
4,314,000 = 0.6current sales level
$7,190,000 = current sales level
The 2017 Annual Report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2017 December 31, 2016 Total assets $930.9 $920.1 Total liabilities 197.1 208.6 Net sales 515.7 517.4 Net income 80.7 67.2 Compute the following ratios for Tootsie Roll for 2017. (a) Asset turnover (Round answer to 3 decimal places, e.g. 0.851 times.) enter the asset turnover rounded to 4 decimal places times (b) Return on assets (Round answer to 2 decimal places, e.g. 4.87%.) enter the return on assets in percentages rounded to 2 decimal places % (c) Profit margin on sales (Round answer to 2 decimal places, e.g. 4.87%.) enter the profit margin on sales in percentages rounded to 3 decimal places %
Answers
Answer:
a. Asset turnover = Sales/Average total assets
Asset turnover= 515.7/[(930.9+920.1)/2]
Asset turnover = 515.7 / 925.5
Asset turnover = 0.5572123
Asset turnover = 0.557
b. Return on Assets = Net income/Average total assets
Return on Assets= 80.7/[(930.9+920.1)/2]
Return on Assets = 80.7 / 925.5
Return on Assets = 0.08719
Return on Assets= 8.72%
c. Profit Margin = Net income/Sales
Profit Margin = 80.7/515.7
Profit Margin = 15.65%
manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 73,000 units last year: LOADING...(Click the icon to view the manufacturing costs.) Another company has offered to sell TechSystems the switch for $13.00 per unit. If TechSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. LOADING...(Click the icon to view the outsourcing decision analysis.) TechSystems needs 82,000 optical switches next year (assume same relevant range). By outsourcing them, TechSystems can use its idle facilities to manufacture another product that will contribute $220,000 to operating income, but none of the fixed costs will be avoidable. Should TechSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) TechSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Expected sales price of the other product × × Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches
Answers
Answer:
Since the question is missing most of its numbers, I looked for similar question.
variable cost per unit = $1,015,000 / 73,000 = $13.9041
total fixed costs = $490,000
since fixed costs are not avoidable, but can be used to generate $220,000 in revenues, the differential analysis is the following:
Make Buy Net income increase
(decrease)
variable costs $1,140,136.20 $0 $1,140,136.20
fixed overhead $490,000 $270,000 $220,000
purchase price $0 $1,066,000 ($1,066,000)
total $1,630,136.20 $1,336,000 $294,136.20
TechSystems should outsource the production since it will be able to increase its operating profits by $294,136.20.
Starting from potential output, if firms become less optimistic about the future and decide to decrease their investment in new capital, then this will shift the ______ curve to the left and generate ______. Group of answer choices Aggregate demand; a recessionary output gap Aggregate supply; a recessionary output gap Aggregate demand; an expansionary output gap Aggregate supply; an expansionary output gap
Answers
Answer:
Option A (aggregate demand; a recessionary output gap) is the right choice.
Explanation:
The overall production volume again for desired items and products that form the gross national product. The amount of money supply, government expenditures, social spending, including private consumption seems to be the aggregate demand. As investment drops significantly, AD further decreases and therefore also sometimes shifts. Owing to the whole total performance would become less than that of productive capacity. So, this clearly shows a recessionary annual deficit.The other options offered are not relevant to the scenario presented. So, the solution above is the right one.
Income generated by sales of foreign-produced goods in U.S. markets flows to foreign producers of these goods, and thus this income is subtracted from U.S. GDP.
a. True
b. False
Answers
Answer: True
Explanation:
Foreign produced goods being sold in the United States are considered to be Imports. Imports are a leakage to the GDP of a nation as they represent income which flows out of the economy to other countries.
For this reason this income is subtracted from US GDP.
Indeed the Expenditure method accounts for this by deducting it from US Exports.
Bronny gonna get the lebelt
Answers
Lightfoot Company sells its product for $55 per unit and has variable costs of $30 per unit. Total fixed costs are $25,000. Suppose variable costs increase by 10% due to an increase in the cost of direct materials. What will be the effect on the breakeven point in units if variable costs increase by $5 due to an increase in the cost of directmaterials?
A. It will increase by 250 units.
B. It will decrease by 167 units.
C. It will decrease by 250 units.
D. It will increase by 167 units.
Answers
Answer:
The Break-even point in units will increase by 250 units.
Explanation:
Giving the following information:
Fixed costs= $25,000
Selling price= $55
Unitary varaible cost= $30
First, we need to calculate the current break-even point in units:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 25,000 / 25
Break-even point in units= 1,000
Now, the new Break-even point in units:
Break-even point in units= 25,000 / (55 - 35)
Break-even point in units= 1,250
The Break-even point in units will increase by 250 units.
A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $536, and B for $525. In addition, A offers a three-day rate of $464 and a nine-day rate of $416, and B offers a four-day rate of $459 and a seven-day rate of $436. Annual holding costs are 37 percent of unit price. Three hundred and ninety boxes are to be shipped, and each box has a price of $154. Which shipping alternative would you recommend?
Answers
Answer: I would recommend shipper A three days option as that is the cheapest option with $604.499
Explanation:
Given data
Boxes to be shipped = 300
Cost/Box = $154
Annual holding cost = 37%.
Solution:
Total cost of boxes
= $154 * 300
= $46,200
Holding cost
= 0.37 * $46,200
= $17,094.
Daily holding cost
= $17,094/365
= $46.833.
Shipper A
Two days rate = $536
= $536 + 2 ( 46.833 )
= $629.266
Three days rate = $464
= $464 + 3(46.833)
= $604.499
Nine days rate = $416
= $416 + 9(46.833)
= $835.697
Shipper B
Two days rate = $525
= $525 + 2(46.833)
= $616.67
Four days rate = $459
= $459 + 4(46.833)
= $646.332
Seven days rate = $436
= $436 + 7(46.833)
= $763.831
I would recommend shipper A three days option as that is the cheapest option with $604.499
Question 3
A situation where the level of output scale and average costs are all rising is called
Answers
Answer: Decreasing return to scale
Explanation:
Decreasing return to scale is a situation where the level of output, scale and average costs are all rising.
Decreasing return to scale happens when there's a rise in inputs that are involved in production process such as labour and capital which brings about a increase in output as well even though it's lesser.
A landlord needs to update a rental house due to it's age, so it can be habitable again. If he has that ability to cover a $1,500.00 payment monthly for 3 years at 5% compounded monthly, how much can he borrow and still be able to afford the payment?
Answers
Answer:
$50,048.55
Explanation:
Use the Time Value of Money Techniques to Find the Principle (PV), that is the amount to be borrowed under the conditions given.
Pmt = - $1,500.00
N = 3 × 12 = 36
i = 5%
P/yr = 12
Fv = $0
Pv = ?
Using a Financial calculator to enter the amount as done above the Principle amount would be $50,048.55
Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback ratio of 0.30. Its earnings this year will be $4 per share. Investors expect a 12% rate of return on the stock. Find the price of the stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answers
Answer:
$46.67
Explanation:
Given the data from the question
We have
Earnings per share = $4
Growth rate = RoE * Plowback ratio
=> 20% * 0.30
=> Growth rate = 6%
Expected dividend per share(D1) = (1 - 30%) x $4 = $2.80
Current market price(Po) = D1/Ke - g
Current market price(Po) = $2.80 ÷ (0.12 - 0.06)
Po = $2.80 ÷ 0.06
Po = $46.67
Hence, in this case, the correct answer is $46.67 for the price of stock.
