Answer: $6.00
Explanation:
From the question, we can see that the productivity in the United States is (45/9) = 5 times higher than that of Mexico.
Therefore, the wages in Mexico should be 5 times lower than the wages paid to the workers in the United States. This will be:
= $30.00 / 5
= $6.00
Therefore, in order for the firm to reduce its wage cost per unit of output by moving to Mexico, the wages in Mexico must be below $6.00 per hour.
Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 5.50 percent. Use the formula presented in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
8.46%
Explanation:
Calculation for the the taxable equivalent yield for this investment
Using this formula
Taxable equivalent yield
=Tax-exempt yield / (1 − Your tax rate)
Let plug in the formula
Taxable equivalent yield=0.055 / (1 - 0.35)
Taxable equivalent yield=0.055/0.65
Taxable equivalent yield=0.0846*100
Taxable equivalent yield= 8.46%
Therefore the taxable equivalent yield for this investment is 8.46%
Using information from the news article you read and your knowledge of economics, compose a paragraph in response to the article. Your comment on the article should state your opinion on government intervention. Use economic analysis to guide your opinions. In your writing, be sure to use proper grammar as well as a topic sentence and introductory and concluding statements.
Answer:
I commend the governments of Peachtree City and Fayette County for their recent intervention, which will be beneficial to our economy. Earlier, the city reduced the water level in the lake so that people who live on the lake could maintain the shoreline. When the council started to refill the lake, city staff noted problems with the dam and spillway and brought it to the attention of Fayette County. There were financial constraints to completing this project, but the Peachtree City government decided to spend additional money to finish the project. That was the right course of action. The residents’ properties (and property values) have been restored, and the lake will once again draw visitors to the town to enjoy the lake and spend money in our town’s businesses.
Explanation:
PLATO word for word, just in case <3
Westerville Company reported the following results from last year’s operations:
Sales $1,800,000
Variable expenses 435,000
Contribution margin 1,365,000
Fixed expenses 1,005,000
Net operating income $360,000
Average operating assets $1,200,000
At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics:
Sales $360,000
Contribution margin ratio 70% of sales
Fixed expenses $216,000
The company’s minimum required rate of return is 10%.
1. What is last year's margin?
2. What is last year's turnover?
3. What is last year's ROI?
4. What is the margin related to this year's investment opportunity?
5. What is the turnover related to this year's investment opportunity?
6. What is the ROI related to this year's investment opportunity?
7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year?
8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year?
9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year?
Answer:
Westerville Company
1. Last year's margin is:
= 20%
2. Last year's turnover is:
= $1,800,000
3. Last year's ROI is:
= 30%
4. The margin related to this year's investment opportunity is:
= 10%
5. The turnover related to this year's investment opportunity is:
= $360,000.
6. The ROI related to this year's investment opportunity is:
= 12%
7. The margin this year is:
= 18.33%
8. The turnover that it will earn this year is:
= $2,160,000
9. The ROI that it will earn this year is:
= 26.4%
Explanation:
a) Data and Calculations:
Last Year's This Year's Total
Sales $1,800,000 $360,000 $2,160,000
Variable expenses 435,000 108,000 543,000
Contribution margin 1,365,000 252,000 $1,617,000
Fixed expenses 1,005,000 216,000 1,221,000
Net operating income $360,000 $36,000 $396,000
Average operating assets $1,200,000 $300,000 $1,500,000
Minimum Required Rate of Return = 10%
= $120,000 $30,000 $150,000
1. Last year's margin = 20% ($360,000/$1,800,000) * 100
2. Last year's turnover = $1,800,000
3. Last year's ROI = 30% ($360,000/$1,200,000) * 100
4. The margin related to this year's investment opportunity is:
= 10% ($36,000/$360,000) * 100
5. The turnover related to this year's investment opportunity is $360,000.
6. The ROI related to this year's investment opportunity is:
12% ($36,000/$300,000)
7. The margin = 18.33% ($396,000/$2,160,000) * 100
8. The turnover that it will earn this year = $2,160,000
9. The ROI that it will earn this year = 26.4% ($396,000/$1,500,000) * 100
A new-task buying in business market ____________. Group of answer choices is characterized by uncertainty and high perceived risk is not possible when the buyer is a business customer is similar to habitual decision making in the consumer market begins with evaluating potential vendor proposals is essentially a low involvement buying situation
Answer: begins with evaluating potential vendor proposals
Explanation:
A new-task buying in business refers to when a company is buying a good for the first time and so have no experience in the matter and do not have selected vendors that they can trust more in this endeavour.
In that case, the best first step would be to evaluate the proposals of different vendors so that the company can see which one would serve its needs best based on the different parameters that they have. They can then begin to source goods from that vendor after further scrutinization.
Wildhorse Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,400 $3.78 $5.31 $1.89 1333 1,100 3.19 4.01 1.18 1426 1,000 5.31 5.90 1.65 1437 1,200 4.25 3.78 1.59 1510 900 2.66 3.84 1.65 1522 700 3.54 4.60 0.94 1573 3,200 2.12 2.95 1.42 1626 1,200 5.55 7.08 1.77 From the information above, determine the amount of Wildhorse Company inventory.
Answer:
Wildhorse Company
The amount of the inventory is:
= $30,496.
Explanation:
a) Data and Calculations:
Item No. Quantity Cost per Estimated Cost to NRV LCNRV Inventory
Unit Selling Price Sell Value
1320 1,400 $3.78 $5.31 $1.89 $3.42 $3.42 $4,788
1333 1,100 3.19 4.01 1.18 2.83 2.83 3,113
1426 1,000 5.31 5.90 1.65 4.25 4.25 4,250
1437 1,200 4.25 3.78 1.59 2.19 2.19 2,628
1510 900 2.66 3.84 1.65 2.19 2.19 1,971
1522 700 3.54 4.60 0.94 3.66 3.54 2,478
1573 3,200 2.12 2.95 1.42 1.53 1.53 4,896
1626 1,200 5.55 7.08 1.77 5.31 5.31 6,372
Inventory value = $30,496
Problem solving importance to the future of workplace
Answer:
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Suppose that the United States currently imports 1.0 million pairs of shoes from China at $20 each. With a 50 percent tariff, the consumer price in the United States is $30. The price of shoes in Mexico is $25. Suppose that as a result of USMCA, the United States imports 1.2 million pairs of shoes from Mexico and none from China.
Required:
What are the gains and losses to U.S consumers, U.S producers, and U.S government and the world as a whole?
Answer:
Trade situation is a win-win game for US consumers as well as US producers and for all the whole world.
Since China is producing cheaper shoes which means US consumers will be gain from Chinese import at a reduced cost and that will result in higher consumer surplus. But because of the tariff, US consumers are at a disadvantage. Due to free trade agreement between US and Mexico, Chinese producers lost as their is tariff in their product which make it to be uncompetitive.
Explanation:
Looking at the difference between importation cost from both Mexico and China,
I.e Consumer Price of Mexican shoes - Consumer Price of Chinese Shoes = $30 - $25 = $5
Which means US consumers are paying $5 extra for Mexican import than Chinese import without tariff
For Chinese product
With the tariff, US consumers were paying ( 1 million * $10 ) = $10 million
Net consumer surplus is -$10 million USD.
For Mexican product
1.2 million * $5 = $6 million
Net Gain
$10 million - $6 million = $4 million.
The Net losses for US Sellers is $6 million
US government is losing all its tariff because of the free trade agreement resulting from Mexican import
1 million * $10 = 10 million
Trade situation is a win-win game for US consumers as well as US producers and for all the whole world.
Since China is producing cheaper shoes which means US consumers will be gain from Chinese import at a reduced cost and that will result in higher consumer surplus. But because of the tariff, US consumers are at a disadvantage. Due to free trade agreement between US and Mexico, Chinese producers lost as their is tariff in their product which make it to be uncompetitive.
On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $11,000,000 and an effective interest rate of 8%. Construction expenditures incurred during 2021 were as follows:
January 1 $600,000
March 1 660,000
July 31 540,000
September 30 700,000
December 31 400,000
Required:
Calculate the amount of interest capitalized for 2021.
Answer:
The amount of interest capitalized for 2021 is $124,000
Explanation:
First, we need to calculate the weighted expenditure by the time period it spent in the period.
The weighted expenditure calculation is made in the PDF file attached with this answer please find it.
Weights are calculated as follow
January 1 = 12/12 = 1
March 1 = 10/12 = 0.83
July 31 = 5/12 = 0.42
September 30 = 3/12 = 0.25
December 31 = 0/12 = 0
The amount of Interest capitalized is calculated as follow
Amount of Interest capitalized = Weighted average expenditure x Interest rate = $1,550,000 x 8% = $124,000
Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents Which could be the heading of Carrie's balance sheet?
Carrie's Balance Sheet (January 1, 2021)
Carrie's Balance Sheet (January)
Carrie's Balance Sheet (Friday, January 3) Carrie's Balance Sheet (January 2011 - January 2021)
Answer: Carrie's Balance Sheet (January 1, 2021)
Explanation:
The heading of the balance sheet should include as much as possible, the month and year of the balance sheet. It can also include the exact date.
This is done so that the Balance sheet can have a particular reference date such that stakeholders who use the balance sheet can know relate the financial performance of the company as of a certain day which would enable for better analysis.
The heading of Carrie's balance sheet is: Carrie's Balance Sheet (January 2021).
What is balance sheet?Balance sheet help to summarize a company or an organization financial position or financial statement.
Since she is preparing the balance sheet for herself, what will be the heading of the balance sheet is Carrie's Balance Sheet (January 2021).
Therefore the heading of Carrie's balance sheet is: Carrie's Balance Sheet (January 2021).
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Which of the following is not true of taxable asset purchases?
a. Net operating losses carry over to the acquiring firm.
b. The acquiring firm may step up its basis in the acquired assets.
c. Target firm shareholders are subject to a potential immediate tax liability.
d. Target firm net operating losses and tax credits cannot be transferred to the acquiring firm.
e. None of the above
Answer:
e. None of the above
Explanation:
The taxable asset purchases allows the individual to increase or step up the tax basis of acquired assets so as to reflect the price of the purchases made.
If one buy an assets, then he or she wants to allocate total purchase price in a way which gives a favorable postacquisition tax results.
In case of taxable asset purchases, the tax credits or the net operating losses cannot be transferred from the target firm to the acquiring firm.
The net operating loss carries over to the acquiring firm is not true of a taxable transaction.
What is an asset?An asset may be defined as any source owned by any individual or business that provides a long-term benefit that usually lasts for at least one year.
In a taxable asset purchase, net operating losses are not acquired by the firm. All the other statements are true for the taxable asset purchase.
Therefore, A is the correct option.
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Suppose that the reserve requirement for checking deposits is 20 percent and that banks do not hold any excess reserves. If the Fed sells $3 million of government bonds, the economy's reservesdecrease by $ million, and the money supply will by $ million. Now suppose the Fed lowers the reserve requirement to 15 percent, but banks choose to hold another 5 percent of deposits as excess reserves. True or False: The money multiplier will remain unchanged. True False True or False: As a result, the overall change in the money supply will remain unchanged. True False
Answer:
1. decrease, $ 3 million, decrease, $ 15 million
2. TRUE
3. TRUE
Explanation:
1. The reverse requirement is given as r = 0.2
The money multiplier is [tex]$\frac{1}{r}=\frac{1}{0.2}=5$[/tex]
Now when the monetary base is changed by $3 million, then the total money supply will change by [tex]$\frac{3}{0.2}= \$ 15 \ mn$[/tex].
Of the $ 15 mn, the reverse will change by $ 15 mn x 0.2 = $ 3 mn.
If Fed sells the government bond of $ 3 million, then the money supply will reduce and the economy's reverses will decrease by $ 3 million and the money supply will decrease by $ 15 million.
2. TRUE
Now if the bank reduces the reserve ratio but he bank maintains excess reserves, then the money multiplier = [tex]$\frac{1}{(r+e)}=\frac{1}{0.15+0.05}=5$[/tex]
Therefore, the money multiplier will remain same, it will remain unchanged.
3. TRUE.
Since the money multiplier remains constant, the overall change in money supply will not increase. It remains the same.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles. Answer: $ 4718.9869 equation editorEquation Editor b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes
The question is incomplete. The complete question is :
A manufacturer of mountain bikes has the following marginal cost function:
[tex]$C'(q)=\frac{700}{0.7q+8}$[/tex]
where q is the quantity of bicycles produced.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook.
a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles?
b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes?
Solution :
Given :
[tex]$C'(q)=\frac{700}{0.7q+8}$[/tex]
a). Fixed cost, FC = $ 2800
Total cost to produce 30 bicycles is :
[tex]$C = 2800 + \int_0^{30} C'(q) \ dq$[/tex]
[tex]$ = 2800 + \int_0^{30} \frac{700}{0.7q+8} \ dq$[/tex]
[tex]$= 2800+700\left[\frac{\ln (0.7q+8)}{0.7}\right]^{30}_0$[/tex]
[tex]$=2800+1000[\ln ((0.7 \times 30)+8)- \ln 8 ]$[/tex]
[tex]$= 2800 +1000 [\ln 29 - \ln 8]$[/tex]
= 2800 + 1287.85
= $ 4087.85
b). Total selling price = $ (200 x 30)
= $ 6000
Profit = 6000 - 4087.85
= $ 1912.15
Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $0.05 per unit. A pound option represents 31,250 units. Assume that at the time of the purchase, the spot rate of the pound is $1.51 and continually rises to $1.62 by the expiration date. The highest net profit possible for the speculator based on the information above is: Group of answer choices $1,562.50 -$1,250.00 -$625.00 -$1,562.50
Answer:
-$1,562.50
Explanation:
Calculation to determine The highest net profit possible for the speculator based
Premium of the option = $.05 per unit * (31,250 units)
Premium of the option= -$1,562.50
Therefore Based on the information given and the above calculation The HIGHEST NET PROFIT that will be possible for the speculator will be -$1,562.50
Which of the following best explains why resources need to be allocated in the game of economic? A) Natural resources are often found in places far from where they are used for production. B) There are always different production methods for the same goods and services. C) There are not enough resources to produce all of the good and services that everyone wants. D) If sufficent resources are not set aside for future production, scarcity cannot be eliminated. THE ANSWER IS C!!!!!!
Answer:
The best explanation for the need to allocate resources in the game of economics is that:
C) There are not enough resources to produce all of the goods and services that everyone wants.
Explanation:
In economics, it has been established that human needs are insatiable and that the resources to meet the needs are not readily and sufficiently available. This is the bedrock of Economics. It is the reason that Economics is studied as a separate course. Scarcity and needs are important concepts in human interactions. Therefore, the ability to allocate scarce resources to enable the production of goods and services is key to human development.
Shirine has been debating between two career pathways in finance. She creates a Venn diagram to compare the two careers. In a Venn diagram, the separate circles contain characteristics unique to each item being compared and the intersection contains characteristics that are common to both items being compared. This is the Venn diagram that Shirine creates:
A Venn diagram.
Title 1 has Sets up and oversees customer accounts; Analyzes how much to grant in loans; Possible Careers: Teller, Loan Officer, Credit Checker.
Title 2 has Analyzes how to grow customers' money; Deals with securities and commodities; Possible Careers: Personal Finance Advisor, Treasurer, Risk Management Analyst. The area of overlap has Deals with money, Works with customers.
Which accurately labels the titles in Shirine’s diagram?
a) Title 1 should be Investment Career Pathway, and Title 2 should be Banking Career Pathway
b) Title 1 should be Banking Career Pathway, and Title 2 should be Investment Career Pathway
c) Title 1 should be Banking Career Pathway, and Title 2 should be Financial Management Career Pathway
d) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway
Answer:
d) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway
Explanation:
i believe its D but im not exactly sure
Answer:
D
Explanation:
______________, a vast network of linked computers, had its origins in the late 1960s, when scientists at the United States Department of Defense Advanced Research Projects Agency (DARPA) established the ARPAnet computer network so they could transfer data between sites working on similar research projects. This led to a quantum leap forward in computer communications.
Answer:
The internet.
Explanation:
The internet refers to a vast, global system of interconnected computer networks.
There's a standard framework for the transmission of informations on the internet, it is known as the internet protocol suite or Transmission Control Protocol and Internet Protocol (TCP/IP) model. One of the very basic rule of the TCP/IP protocol for the transmission of information is that, informations are subdivided or broken down at the transport layer, into small chunks called packets rather than as a whole.
Hence, the standard Internet communications protocols which allow digital computers to transfer (prepare and forward) data over long distances is the TCP/IP suite.
Additionally, WWW simply means World Wide Web. The World Wide Web was invented by Sir Tim Berners-Lee in 1990 while working with the European Council for Nuclear Research (CERN); Web 2.0 evolved in 1999. Basically, WWW refers to a collection of web pages that are located on a huge network of interconnected computers (the Internet). Also, users from all over the world can access the world wide web by using an internet connection and a web browser such as Chrome, Firefox, Safari, Opera, etc.
1. Which of the following is an example of inflation?
a. The price of lettuce increases by $0.40 a head overnight.
b. The price level of many things you buy increases over time.
c. The average price level of many things you buy decreased last year.
d. The prices of computers and cellphones increases.
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20 year term and a stated rate of interest of 7%. Assuming a straight-line amortization of the discount, the amount of interest expense recognized on the December 31, Year 1 income statement is
Answer:
$3,600
Explanation:
According to the scenario, computation of the given data are as follows,
Bonds Face value = $50,000
Discount = 4%
Time period = 20 years
Interest rate = 7%
Premium = $50000 - ( $50,000 × 96%) = $2,000
So, we can calculate interest expense by using following formula,
Interest expense = ($50,000 × 7%) + ($2,000 ÷ 20)
= $3,600
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.
Example M1 M2
Clancy has $25,000 in a money market account.
Alex has a roll of quarters that he just withdrew from the bank to do laundry.
Eileen has $8,000 in a two-year certificate of deposit (CD).
Answer: a. M2 money supply
b. M1 and M2
c. M2 money supply
Explanation:
M1 is the money supply which consist of the physical currency, coin, travelers check, demand deposits, checkable deposits.
M2 is the money supply which consists of checking deposits, cash, convertible near money.
Based on the above description of M1 and.M2 money supply, the following questions are answered below.
a. Clancy has $25,000 in a money market account.
It is included in the M2 money supply.
b. Alex has a roll of quarters that he just withdrew from the bank to do laundry.
This will be included in both the M1 money supply and the M2 money supply.
c. Eileen has $8,000 in a two-year certificate of deposit (CD).
It is included in the M2 money supply.
In a traditional economy, decisions about which goods are produced are
based on:
O
A. what businesses believe will generate the most profits.
B. what the government decides is important for society.
ОО
C. what the local community has made for generations,
D. what goods are most likely to sell in international markets.
a. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern day example of this concept, and discuss some potential solutions.
b. State and describe the concept that states, "factors of production are somewhat immobile." Give an example with detail.
Answer: See explanation
Explanation:
a. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern day example of this concept, and discuss some potential solutions.
This is referred to as the agency problem. This brings about conflict of goals between the manager and the shareholders. An example is when the managers use the resources of the company for their own personal benefits or in a scenario whereby the managers fake the earnings so that the stock prices will rise temporarily.
b. State and describe the concept that states, "factors of production are somewhat immobile." Give an example with detail.
This is referred to as imperfect market theory. When transferring labor, capital or other resources, there are costs attached to the transfer and restrictions as well. .
The following is a list of items for Witts Company's 2016 statement of cash flows:
a. receipt from sale of equipment, $2,700
b. increase in inventory, $3,900
c. net income, $13,500
d. payment for purchase of building, $29,000
e. depreciation expense, $8,700
f. receipt from issuance of bonds, $8,000
g. increase in prepaid expenses, $800
h. loss on sale of equipment, $2,200
i. payment of dividends, $5,200
j. decrease in accounts receivable, $1,700
l. issuance of common stock for land, $6,900
m. decrease in accounts payable, $1,500
n. beginning cash balance, $10,200
Required:
Prepare the statement of cash flows.
Answer and Explanation:
The preparation of the statement of cash flows is presented below:
Cash flows from operating activities
Net income $13,500
Add: depreciation expense $8,700
Add: loss on sale of equipment $2,200
Less: increase in inventory $3,900
Less: increase in prepaid expense -$800
Add: decrease in account receivable $1,700
Net cash provided by operating activities $19,900
Cash flows from investing activities
receipt from sale of equipment, $2,700
Less: payment for purchase of building, $29,000
Net cash used by investing activities -$26,300
Cash flows from financing activities
receipt from issuance of bonds, $8,000
Less: payment of dividends, $5,200
Net cash provided by financing activities $2,800
Net decrease in cash -$3,600
Add: opening cash balance $10,200
Ending cash balance $6,600
Windsor, Inc. had the following transactions during the current period.
Mar. 2 Issued 5,600 shares of $5 par value common stock to attorneys in payment of a bill for $33,600 for services performed in helping the company to incorporate.
June 12 Issued 61,500 shares of $5 par value common stock for cash of $384,375.
July 11 Issued 1,500 shares of $100 par value preferred stock for cash at $107 per share.
Nov. 28 Purchased 1,800 shares of treasury stock for $72,000.
Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Answer:
See the journal entries below.
Explanation:
The journal entries will look as follows:
Date Details Debit ($) Credit ($)
Mar. 2 Attorney bill 33,600
Common stock (5,600 * $5) 28,000
APIC - Common stock (33,600 - 28,000) 5,600
(To record the issue of 5,600 shares of common share to pay Attorney Bill.)
June 12 Cash 384,375
Common stock (61,500 * $5) 307,500
APIC - Common stock (384,375- 307,500) 76,875
(To record the issue of 61,500 shares of common stock for cash.)
July 11 Cash (1,500 * $107) 160,500
Preferred stock (1,500 * $100) 150,000
APIC - Preferred stock (160,500 – 150,000) 76,875
(To record the issue of 1,500 shares of preferred stock for cash.)
Nov 28 Treasury stock 72,000
Cash 72,000
(To record the purchase of 1,800 shares of treasury stock.)
Note: APIC = Additional-paid-in-capital
Lusk Corporation produces and sells 10,000 units of Product X each month. The selling price of Product X is $40 per unit, and variable expenses are $32 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $70,000 of the $120,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: rev: 07_07_2020_QC_CS-218335
Answer: ($30000)
Explanation:
If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product will be calculated thus:
Sales = 10000 × $40 = $40000
Variable expense = 10000 × $32 = $320000
Contribution margin lost = $400000 - $320000 = $80000
Savings in fixed expense = $120000 - $70000 = $50000
Financial disadvantage = Savings in fixed expenses - Contribution margin lost
= $50000 - $80000
= -$30000
Recording Cash Dividends [LO 11-3 National Chocolate Corp. produces chocolate bars and snacks under the brand names Blast and Soothe. A press release contained the following information March 5-National Chocolate Corp. today announced that its Board of Directors has declared a special one-time" cash dividend of $1.20 per share on its 102,000 outstanding common shares. The dividend will be paid on April 29 to shareholders of record at the close of business on March 26. The Company's fiscal year will end April 30 Required 1. Prepare any journal entries that National Chocolate Corp. should make on the four dates mentioned in press release. (If no entry is required for a transaction/date, select "No Journal Entry Required" in the first account field.)
Answer and Explanation:
The journal entries are shown below:
On Mar-05
DIvidends $122,400 (102,000 shares × $1.20)
To Cash dividends payable $122,400
(Being declaration of the dividend is recorded)
On Mar-26
No entry should be recorded on the recording date
On Apr-29
Cash dividends payable $122,400
To Cash $122,400
(being payment of the cash dividend is recorded)
On Apr-30
Retained earnings $122,400
To Dividends $122,400
(Being closing of the dividend account is recorded)
Do tax cuts stimulate or restrict spending? Why?
Answer:
Income tax cuts reduce the amount individuals and families pay on wages earned. When people can take home more of their paychecks, consumer spending increases.
Explanation:
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In the B2B market, General Motors Company, Anheuser-Busch, and Kraft all purchase raw materials from their upstream suppliers, make and then sell their own finished products to consumers. In terms of business customers, these three companies are all examples of _____ in the B2B market.
Answer:
Producers.
Explanation:
B2B (business-to-business) is a marketing strategy that deals with meeting the needs of other businesses, by selling products or services to the organizations for resale to other consumers, used in production of goods or for the operation of an organisation.
In terms of business customers, these three companies are all examples of producers in the B2B market because they all purchase raw materials from their upstream suppliers, subsequently, they make and then sell their own finished products to the end users or consumers.
a. On July 1, 2018, the Churab Company paid $200,000 in return for a 5% interest (20,000 shares) in the UNCY Corporation’s common stock.
b. On December 21, 2018, UNCY paid all its stockholders a cash dividend of $1.00 a share.
c. On December 31, 2018, UNCY’s common stock had a market value of $15 a share.
d. On November 30, 2019, UNCY issued 100,000 shares of preferred stock that would be convertible, at the option of its stockholders, into 60,000 shares of common stock no earlier than 2022.
d. On December 31, 2019, UNCY’s common stock had a market value of $12 a share.
e. On February 1, 2020, Churab sold all its shares of its UNCY stock for $19 a share.
Required:
Provide all the journal entries that the Churab Company would make for the investment activity described above.
Answer:
Churab Company
Journal Entries
a. On July 1, 2018
Debit Investment in UNCY Corporation $200,000
Credit Cash $200,000
To record the purchase of 5% interest (20,000 shares) in the UNCY Corporation’s common stock.
b. On December 21, 2018
Debit Cash $20,000
Credit Dividend Revenue $20,000
To record the receipt of dividend from UNCY Corporation at $1.00 a share.
c. On December 31, 2018
Debit Investment in UNCY Corporation $100,000
Credit Unrealized Gain from Investment $100,000
To record the unrealized gain from investment when the market value rose to $15 a share.
d. On December 31, 2019
Debit Unrealized Loss from Investment $60,000
Credit Investment in UNCY $60,000
To record the unrealized loss from investment when the market value fell to $12 a share.
e. On February 1, 2020
Debit Cash $380,000
Credit Investment in UNCY Corporation $240,000
Credit Realized Gain from Investment $140,000
To record the sale of the shares of UNCY stock for $19 per share.
Explanation:
a) Data and Analysis:
a. On July 1, 2018 Investment in UNCY Corporation $200,000 Cash $200,000 5% interest (20,000 shares) in the UNCY Corporation’s common stock.
b. On December 21, 2018, Cash $20,000 Dividend Revenue $20,000 $1.00 a share.
c. On December 31, 2018, Investment in UNCY Corporation $100,000 Unrealized Gain from Investment $100,000 (a market value of $15 a share).
d. On November 30, 2019, UNCY issued 100,000 shares of preferred stock that would be convertible, at the option of its stockholders, into 60,000 shares of common stock no earlier than 2022.
d. On December 31, 2019, Unrealized Loss from Investment $60,000 Investment in UNCY $60,000 a market value of $12 a share.
e. On February 1, 2020, Cash $380,000 Investment in UNCY Corporation $240,000 Realized Gain from Investment $140,000
Clark Company estimated the net realizable value of its accounts receivable as of December 31, 2019, to be $170,000, based on an aging schedule of accounts receivable. Clark has also provided the following information: The accounts receivable balance on December 31, 2019 was $181,000. Uncollectible accounts receivable written off during 2019 totaled $12,500. The allowance for doubtful accounts balance on January 1, 2019 was $16,000. How much is Clark's 2019 bad debt expense
Answer:
$7,500
Explanation:
Calculation to determine How much is Clark's 2019 bad debt expense
First step is to calculate the Allowance for Doubtful Accounts balance
Allowance for Doubtful Accounts balance=
$181,000-$170,000
Allowance for Doubtful Accounts balance=$11,000
Second step is to calculate the amount to be written off
Written off=$16,000-$12,500
Written off=-$3,500
Now let calculate the bad debt expense
Bad debt expense=$11,000-$3,500
Bad debt expense=$7,500
Therefore How much is Clark's 2019 bad debt expense is $7,500
Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells its shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows:
Direct materials $2.00
Direct labor 0.50
Variable factory overhead 1.50
Fixed factory overhead 2.50
Total cost per unit $6.50
Should Piper Rose Boutique accept the special order made by the college?
Answer:
Piper Rose Boutique should accept the special order made by the college
Explanation:
Price per unit the college is willing to pay = $6
Total variable cost per unit to be incurred by Piper Rose Boutique = Direct materials + Direct labor + Variable factory overhead = $2.00 + $0.50 + $1.50 = $4,00
Since the price per unit of $6 that the college is willing to pay is greater than the total variable cost per unit of $4 to be incurred by Piper Rose Boutique, Piper Rose Boutique should accept the special order made by the college.
Note: the Fixed factory overhead is not relevant in taking the decision. Only the variable costs are relevant.