Answer:
Se benefician los estado unidenses porque no tienen que pagar más por el coche, también porque al abrir una fábrica pueden llegar a crear más de 5.000 puestos de trabajo. Y los japoneses no salen beneficiados porque la empresa que lleva los coches de Japón a estados unidos seguramente sea japonesa y también los trabajadores japoneses pierden trabajo
Explanation:
Suppose a stock had an initial price of $85 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $99. a. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield
Answer:
18.23%
1.76%
Explanation:
The total return of a stock = price return + dividend yield
Price return calculates the change in price of a stock
Price return = (change in price / initial stock price ) x 100
change in price = $99 - $85 = $14
($14 / $85) x 100 = 16.47%
Dividend yield = (dividend paid / initial price of the stock ) x 100
($1.5 / $85) x 100 = 1.76%
Total return = 16.47% + 1.76% = 18.23%
Suppose Dr. Chu decided to open a donuts shop call Dr. Donuts. Dr. Chu is able to source flours at $2 per pound (making 40 donuts), sugars at $5 per pound (making 100 donuts), and butter at $1 per pound (making 100 donuts) While the donuts are not very tasty, Dr. Chu believes he can sell a lot of them by pricing them at $0.36 per donuts. Assuming his rent is $1800 per month, corporate tax of $100 per month, and draws a salary of $200 a day (use 30 days in a month), how many donuts must Dr. Chu sell in a month to break-even.
Answer:
31,600 donuts
Explanation:
Break even point is the level of activity where a company makes neither a profit nor a loss.
Break even point (units) = Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Sales per unit - Variable Costs per unit
Step 1 : Sales per donut
Sales per donut = $0.36
Step 2 : Variable Cost per Donut
Variable Cost per Donut :
Flours ($2 ÷ 40) $0.05
Sugars ($5 ÷ 100) $0.05
Butter ($1 ÷ 100) $0.01
Total $0.11
Step 3 : Fixed cost per month
Rent $1,800
corporate tax $100
Salary ($200 x 30) $6,000
Total $7,900
therefore,
Break even point = $7,900 ÷ ($0.36 - $0.11)
= 31,600 donuts
Conclusion :
Dr. Chu sell 31,600 donuts in a month to break-even.
What are the main tools organizations use to track the progress of a plan?
A. Goals and objectives
O B. Schedules and budgets
C. Customer satisfaction surveys
O D. Sales and revenue
Answer:
schedules and budgets
Explanation:
Madison Corporation's production cycle starts in the Processing Department. The following information is available for April: Units Work-in-process, April 1 (25% complete) 50,000 Total units in process during April 290,000 Work-in-process, April 30 (60% complete) 30,000 Materials are added at the beginning of the process in the Processing Department. What are the equivalent units of production for the month of April, assuming Madison uses the weighted-average method
Answer:
Equivalent units of production= 278,000
Explanation:
Giving the following information:
Total units in process during April 290,000
Work-in-process, April 30 (60% complete) 30,000
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
To calculate the equivalent units, we need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= (290,000 - 30,000) + 30,000*0.6
Equivalent units of production= 278,000
Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building. Land is appraised at $247,500; land improvements are appraised at $55,000; and the building is appraised at $247,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer:
1. Land $175,324.50
Land improvements $38,961
Building $175,324.50
2. Dr Land $175,324.50
Cr Cash $175,324.50
Being entries to recognize cost incurred in the purchase of Land
Dr Land improvements $38,961
Cr Cash $38,961
Being entries to recognize cost incurred in the purchase of Land improvements
Dr Building $175,324.50
Cr Cash $175,324.50
Being entries to recognize cost incurred in the purchase of Building
Explanation:
Using the appraisal method to apportion the cost of an asset to the components of the asset involves the consideration of the appraised cost of each individual item as a portion of the total cost of the asset.
Thus, given that Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building
Appraised cost of
Land = $247,500
Land improvements = $55,000
Building = $247,500
Total appraised cost of the asset = $247,500 +$55,000 + $247,500
= $550,000
Allocated cost of;
Land = $247,500/$550,000 * $389,610
= $175,324.50
Land improvements = $55,000/$550,000 * $389,610
= $38,961.00
Building = $247,500/$550,000 * $389,610
= $175,324.50
Journal entries
Dr Land $175,324.50
Cr Cash $175,324.50
Being entries to recognize cost incurred in the purchase of Land
For journal entries, we debit each of the individual assets account and credit cash to recognize the cost incurred in the purchase of the asset.
Select the correct answer. How does insurance protect a policyholder against financial loss? A. by allowing the policyholder to make premium payments B. by allowing the policyholder to make a claim for reimbursement C. by allowing the policyholder to avoid maintenance costs for the insured items D. by allowing the policyholder to pay for all the losses
Answer:
by allowing the policyholder to make premium payments
Explanation:
Answer:
B. by allowing the policyholder to make a claim for reimbursement
Explanation:
Took the test on plato 100% right
Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.65. Suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 2.25. Calculate your portfolio's new beta. Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
0.7125
Explanation:
Calculation to determine your portfolio's new beta.
First step is to calculate the Increase in beta as a result of net sales
Increase in beta as a result of net sales=2.25-1
Increase in beta as a result of net sales=1.25
Hence:
increase/stock=1.25/20=0.0625
Now let calculate the new beta
New beta=0.65+0.0625
New beta=0.7125
Therefore your portfolio's new beta will be 0.7125
A purely domestic firm that sources and sells only domestically, Multiple Choice should never hedge since this could actually increase its currency exposure. faces no exchange rate risk and should never hedge since this could actually increase its currency exposure. faces no exchange rate risk. faces exchange rate risk to the extent that it has international competitors in the domestic market.
Answer:
faces exchange rate risk to the extent that it has international competitors in the domestic market.
Explanation:
Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.
So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.
For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.
Direct material budget. Inglenook Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of Chablis in 2015. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2015.
Answer:
2,530,000 bottles
Explanation:
Regarding the above information, we will compute the number of bottles to be purchased in 2015 as seen below
Purchase in units = Usage + Desired ending material inventory units - Beginning inventory units
Purchase in units = 2,500,000 + 80,000 - 50,000
Purchase in units = 2,530,000
Therefore, the number of bottles to be purchases in 2015 is 2,530,000
How can life expectancy and literacy rates affect the quality of labor in the economy?
Explanation:
Life expectancy and literacy rates can affect the quality of labor in the economy because if citizens are literate, they are educated and likely have white-collar jobs. Citizens who are illiterate likely have more manual labor jobs.A nation with lower fertility rates will usually have less people, and scarce resources will take longer to run out
Jim is a manager of a restaurant. He is very concerned with efficiency and goal accomplishment as well as very intent on making employees happy through lots of participation and open-mindedness. Whats the answer?
A. Jim is a high-high style leader.
B. Jim is low in initiating structure and high in consideration.
C. Jim is an impoverished leader.
D. Jim is a compromiser.
Answer:
A. Jim is a high-high style leader.
Explanation:
As in the given situation it is mentioned that Jim would be very concerned with the efficiency and the accomplishment of the goal so this means he is a high-high style leader as these type of leaders would try to collaborate and cooperate in order to motivate for work in an efficient manner so that the company goals could be achieved
hence, the first option is correct
National Dog Week is a dog food manufacturing factory. Suppose the theoretical capacity for the factory is 25,000 pounds/month. A consultant was brought in to determine their average monthly resource utilization. After extensive analysis, the effective capacity averages 20,000 pounds/month. Therefore, the average safety capacity of the factory is _______ pounds/month.
Answer:
National Dog Week
herefore, the average safety capacity of the factory is __5,000__ pounds/month.
Explanation:
a) Data and Calculation:
Theoretical capacity for the factory = 25,000
Effective capacity for the factory = 20,000
Safety capacity for the factory = 5,000
b) The safety capacity of National Dog Week describes the factory's capacity that is not being put to use currently but can be called to use when demand requires it. It is the difference between the factory total usable capacity and the effective currently being used capacity.
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:
Standard Model Deluxe Model
Number of machine hours 26,500 31,500
Number of material moves 625 925
Number of setups 85 575
Total estimated overhead costs are $313, 020, of which $183, 750 is assigned to the material handling cost pool and $179, 180 is assigned to the setup cost pool.
Required:
1. Calculate the overhead assigned to each product using the traditional cost system.
2. Calculate the overhead assigned to each product using ABC.
Answer:
Results are below.
Explanation:
a)
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 313,020 / 58,000
Predetermined manufacturing overhead rate= $5.4 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 5.4*26,500= $143,100
Deluxe= 5.4*31,500= $170,100
b)
First, we need to calculate the allocation rates:
Material handling= 183,750 / 1,550= $118.55 per material moves
Setup= 179,180 / 660= $271.48 per setup
Now, we can allocate overhead:
Standard= 118.55*625 + 271.48*85= $97,169.55
Deluxe= 118.55*925 + 271.48*575= $265,759.75
During lunch time, customers arrive at a postal office at a rate of lambda equals 36 per hour. The interarrival time of the arrival process can be approximated with an exponential distribution. Customers can be served by the postal office at a rate of mu equals 45 per hour. The service time for the customers can also be approximated with an exponential distribution. For each of the following questions, show your work and use the right notation.
Required:
Determine the utilization factor.
Answer:
the utilization factor is 4 ÷ 5
Explanation:
The computation of the utilization factor is shown below:
given that
Customer arrives at the rate of λ equivalent to the 36 per hour
And, Customers can be served by the postal office at a rate of μ equivalent to the 45 per hour
λ = 36 / hour
μ = 45 / hour
Now utilization factor is
P = λ ÷ μ
= 36 ÷ 45
= 4 ÷ 5
Thus, the utilization factor is 4 ÷ 5
Brief Exercise 15-02 During January, its first month of operations, Coronado Company accumulates the following manufacturing costs: raw materials $4,400 on account, factory labor $6,200 of which $5,800 relates to factory wages payable and $400 relates to payroll taxes payable, and factory utilities payable $2,100. Prepare separate journal entries for each type of manufacturing cost.
Answer:
Item 1
Debit : Raw Materials $4,400
Credit : Accounts Payable $4,400
Item 2
Debit : Work in Process : Factory wages ($5,800 + $400) $6,200
Credit : Wages Payable $6,200
Item 3
Debit : Work In Process : Factory Utilities $2,100
Credit : Utilities Payable $2,100
Explanation:
If there is no immediate payment of cash for the expenses incurred, raise a liability - Accounts Payable otherwise recognize a Cash Outflow.
All manufacturing costs incurred are accounted for in the Work In Process Account.
Journal entries for each type of manufacturing cost have been prepared above.
Cora purchased a hotel building on May 17, 2020, for $3,000,000. Determine the cost recovery deduction for 2021. a.$76,920 b.$69,000 c.$48,150 d.$59,520
Answer: $76920
Explanation:
Firstly, we should note that the hotel building is simply non residential and then qualifies to be part of 39 year property.
Then, the cost of recovery will be:
= 1/39 × Cost of the hotel
= 1/39 × $3,000,000
= $76,920
Therefore, the cost recovery deduction for 2021 is $76,920
Cherry Valley Lumber's (CVL) lumber mill produces boards of various sizes and quality specifications for the home construction industry. CVL incurs joint costs in the initial phases of processing raw timber, such as transporting the logs to the mill, removing the bark from the logs, and cutting rough-cut boards. After the split-off point, CVL incurs costs in the Planing Department to finalize the finished boards of various grades and sizes. Which of the following statements regarding the costs at CVL is true?
a. The costs to finish the boards after the split-off point will not be traced directly to the finished boards according to the various grades and sizes produced. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will be traced to the final finished boards.
b. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will not be directly traced to the final finished boards. All costs to finish the boards after the split-off point will be traced directly to the finished boards according to the various grades and sizes produced.
c. It will be impossible for CVL to directly trace any costs to the finished boards of various grades and sizes.
d. CVL will be able to directly trace all costs before and after the split-off point to the finished boards of various grades and sizes.
Answer:
Cherry Valley Lumber's (CVL)
The statement regarding the costs at CVL that is true is:
b. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will not be directly traced to the final finished boards. All costs to finish the boards after the split-off point will be traced directly to the finished boards according to the various grades and sizes produced.
Explanation:
This is why the costs at split-off are usually apportioned to the different categories of products based on some chosen criteria, e.g. sales value, size, etc. However, after split-off, costs that are incurred can easily be traced to the various grades and sizes of boards produced. This simply means that after split-off, costs become traceable and direct to each board category.
Presented below is information related to Pharoah Corporation for the current year. Beginning inventory $ 590,300 Purchases 1,472,500 Total goods available for sale $2,062,800 Sales revenue 2,455,000 Compute the ending inventory, assuming that (a) gross profit is 46% of sales, (b) gross profit is 60% of cost, (c) gross profit is 36% of sales, and (d) gross profit is 25% of cost.
Answer:
a. $948,888
b. $773,550
c. $1,237,680
d. $412,560
Explanation:
The Ending Inventory is calculated using the missing figure approach or the Gross Margin technique.
that is,
Ending Inventory = Cost of Goods Available for Sale - Cost of Sales
thus,
This can be clearly done by writing up a Trading Account as shown below for each scenario.
also remember,
Cost + Profit = Sales
so for those based on cost use this formula.
for example : gross profit is 60% of cost
will be : 100 % + 60 % = 160 %
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part b
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($773,550) ($1,289,250)
Gross Profit $773,550
Part c
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($1,237,680) ($825,120)
Gross Profit $1,237,680
Part d
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($948,888) ($1,113,912)
Gross Profit $948,888
Part a
Pharoah Corporation
Trading Account for the Year
Sales $2,062,800
Less Cost of Sales
Beginning Inventory $ 590,300
Add Purchases $1,472,500
Goods Available for Sale $2,062,800
Less Ending Inventory (Balancing amount) ($412,560) ($1,650,240)
Gross Profit $412,560
Iduna Company has adopted the dollar-value LIFO method in 2018. At December 31, 2018, the ending inventory at dollar-value LIFO is $103,000, with a price index of 1.00. At December 31, 2019, the ending inventory using year-end prices is $125,000. The price index is 1.3 in 2019. Round all dollar amounts to the nearest dollar. What is the ending inventory using dollar-value LIFO at December 31, 2019
Answer:
$96,154
Explanation:
Calculation to determine the ending inventory using dollar-value LIFO at December 31, 2019
First step is to calculate the Ending Inventory
Ending Inventory= $125,000/1.3
Ending Inventory =$96,154
Now let calculate the ending inventory using dollar-value LIFO at December 31, 2019
December 31, 2019 Ending inventory using dollar-value LIFO=$96,154* $1
December 31, 2019 Ending inventory using dollar-value LIFO= $96,154
Therefore the ending inventory using dollar-value LIFO at December 31, 2019 will be $96,154
Assume that you have entered into a fixed for fixed currency swap agreement under which every 6 months you agree to pay 3% on a notional of 110M USD and receive 4% on a notional of 100M EUR. On the date you signed the contract the spot exchange rate is 1.1 USD/EUR. Six months later the spot exchange rate is 1.05 USD/EUR. Your actual payment net of what you receive at the first payment date equals to :__________
Answer: -0.55M USD
Explanation:
The payment made will be:
= 3%/2 × 110M USD
= 0.03/2 × 110M USD
= 1.65M USD
The amount received will be:
= 4%/2 × 100M EUR
= 2% × 100M EUR
= 0.02 × 100M EUR
= 2M EUR
Since exchange rate = 1.1 USD/EUR
2M EUR = 2 × 1.1 = 2.2M USD
Therefore, net payment will be:
= 1.65M - 2.2M
= - 0.55M USD
g You are looking for a dividend security to provide yourself with additional steady income. You have found a company with an expected dividend next year of $1.20. You have done an analysis on the company's past dividends and the dividend amount has increased at a constant rate of 3.4 percent for the last eight years and you have no expectation of a change in growth rate. If you require a 9 percent rate of return on your investments, what should you be willing to pay today for the stock
Answer: See explanation
Explanation:
The following information can be gotten from the question:
Expected dividend, D1 = $1.20
Required rate of return, r = 9%
Growth rate = 3.4%
Then, the formula to get the price will be:
= D1/(r-g)
= 1.2/(9%-3.4%)
= 1.2/5.6%
= $21.4
The amount to pay due the stock is less than $24.00
1. Evaluate the situation that Mason and Shepherd find themselves in with respect to their existing employers. What are the legal and ethical issues raised
Answer:
The answer is provided in two separate headings for Mason and Shepherd with regard to the issues faced by them and how to handle them.
Explanation:
Mason
Mason's goal is start a venture by utilising the information received from the company she has worked for. This could lead to the violation of the agreement with her employer with regard to Non-competition, Non-disclosure and Development provisions.
So to tackle this situation she needs to first of all prove that the business is not a competitor of ATS. Moreover, she must refrain from coming into contact of the current customers of ATS. Finally, data kept in her office computer on the details of the new venture is currently under the ownership of ATS. Therefore, she should removed that data. Other than that she could negotiate with ATS with the help of a legal consultant.
Shepherd
Shepherd has signed an agreement with NOVA, where he is being bound to disclose all the inventions he has worked on so far. This problem is more likely on the intellectual property law.
To resolve this issue he could own his inventions by way of patent the translate engines as early as possible. While the process may take some years, it will be protected from NOVA as it would in pending status.
If Argentina imposes a 20 percent tax on natural gas exports to be paid by suppliers. Other things equal, this causes the:
Select one:
a. supply of natural gas exports to shift to the right.
b. quantity of natural gas exports produced to increase.
c. demand for natural gas exports to shift to the right.
d. supply of natural gas exports to shift to the left.
Answer:
supply of natural gas exports to shift to the left.
An employee earns $28 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 46 hours during the week. Assume that the FICA tax rate is 7.5% and that federal income tax of $200 was withheld. a. Determine the gross pay for the week. $fill in the blank 1 b. Determine the net pay for the week. Round intermediate calculations and your final answer to the nearest cent. $fill in the blank 2
Answer and Explanation:
a. The computation of the gross pay for the week is shown below
Regular pay ($28 ×40 hours) $1,120
Overtime pay (6 hours × $28 × 1.5) $252
Total gross pay $1,372
b. The computation of the net pay for the week is given below:
Gross pay $1,372
Less:
FICA ($1,372 × 7.5%) $103
Federal income tax $200
Net pay $1069.10
Consider the following information:
Portfolio Expected Return Beta
Risk-free 11% 0
Market 12.2 1.0
A 11.0 0.9
A. Calculate the expected return of portfolio A with a beta of 0.9.
B. What is the alpha of portfolio A.
C. If the simple CAPM is valid, is the above situation possible?
Required information Skip to question [The following information applies to the questions displayed below.] The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Debit Credit Cash $ 10,400 Accounts Receivable 134,000 Prepaid Rent 4,400 Supplies 22,000 Equipment 240,000 Accumulated Depreciation $ 119,000 Accounts Payable 10,400 Salaries Payable 9,400 Interest Payable 3,400 Notes Payable (due in two years) 24,000 Common Stock 140,000 Retained Earnings 44,000 Service Revenue 340,000 Salaries Expense 240,000 Rent Expense 12,000 Depreciation Expense 24,000 Interest Expense 3,400 Totals $ 690,200 $ 690,200 Required: 1. Prepare an income statement for the year ended December 31, 2021.
Answer and Explanation:
The preparation of the income statement is presented below:
Service Revenue 340,000
Less:
Salaries Expense 240,000
Rent Expense 12,000
Depreciation Expense 24,000
Interest Expense 3,400
Net income $60,600
Hence, we simply deduct the expenses from the service revenue so that we get the net income
Choose all of the items that are examples of fiscal policy.
a. There is an increase in income tax rates.
b. The Federal Reserve purchases bonds on the open market.
c. The estate tax is repealed.
d. Government increases military spending.
e. Public money is used to build a high-speed train that connects Los Angeles and Las Vegas.
f. The Federal Reserve increases the money supply by decreasing the reserve-ratio requirement.
g. To help domestic firms, government sets a quota on the number of goods that can be imported.
Answer:
A
C
D
E
Explanation:
fiscal policies are steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policy reduces money supply
tools of fiscal policy
Taxes
government spending
transfer payments
A public good rev: 04_09_2018 Multiple Choice generally results in substantial negative externalities. can never be provided by a nongovernmental organization. costs essentially nothing to produce and is thus provided by the government at a zero price. cannot be provided to one person without making it available to others as well.
Answer:
cannot be provided to one person without making it available to others as well.
Explanation:
A public good is a good that is non excludable and non rivalrous. It cannot be provided to one person without making it available to others as well. If one person is using it, it does not stop other people from using it also. An example of a public good is roads.
Public goods contrasts with club goods and private goods
A club good is a type of public good. It is excludable but non-rivalrous. For example paid streaming services are an example of a club good. Those who do not subscribe are excluded from using the service. But all subscribers have equal assess to the service
A private good is a good that is excludable and rivalrous.e.g. a privately owned car
There are some excellent free personal finance apps available: Mint, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using Mint, you realize you need to pay off one of your high interest loans to reduce your interest expense. You decide to discount a $5,250, 345-day note at 3% to your bank at a discount rate of 4.5% on day 210. What are your proceeds
Answer: $5309.86
Explanation:
The proceeds will be calculated as:
Face value of note = $5250
Interest rate = 3%
Note tenure = 345
Number of days used = 360
Outstanding interest on note = $5250 × 3% × 345/360 = $150.94
Gross Proceeds = $5250 + $150.94 = $5400.94
Bank Discount rate = 4.5%
Discounting days = 210
Time if maturity left = 345 - 210 = 135
Discount rate for 135 days = 4.5%/360 × 135 = 1.69%
Discount value = $5400 × 1.69% = $91.14
Net proceeds after discount = $5400 - $91.14 = $5309.86
A cement manufacturer has supplied the following data: Tons of cement produced and sold 263,000 Sales revenue $ 1,104,600 Variable manufacturing expense $ 432,000 Fixed manufacturing expense $ 229,000 Variable selling and administrative expense $ 94,000 Fixed selling and administrative expense $ 219,000 Net operating income $ 130,600 What is the company's unit contribution margin?
Answer:
$2.2 per unit
Explanation:
With regards to the above and to compute the company's unit contribution margin, we need to first calculate the total contribution margin
Total contribution margin
= Sales revenue - Variable manufacturing expenses - Variable selling and administrative expenses
= $1,104,600 - $432,000 - $94,000
= $578,600
Therefore, the company's unit contribution margin
= Total contribution margin ÷ Number of units produced and sold
= $578,000 ÷ 263,000
= $2.2 per unit