firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55. In the long run, the firm should a. Shut-down as the firm is making a loss of $15 million per week b. Shut-down as the firm cannot cover the variable costs c. Shut down because the price is lower tha average cost d. None of the above
What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Administrative Budget 4. Budgeted Income Statement
Answer:
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
Explanation:
First of all the sales budget is prepared in which expected sales are shown and then the selling and administrative budget is prepared which shows expenses related to sale.
The income statement budget is prepared which shows the expected income.
Then at last Budgeted Balance Sheet is prepared in which the expected income is transferred.
The order in which they appear is as follows.
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
The proper preparation sequencing of the budgets includes the Sales Budget, Selling and Administrative Budget, Budgeted Income Statement, and Budgeted Balance Sheet respectively.
The preparation of budgeted statement by business helps them to know how to expend funds in the future and plan for changes as well.
The proper preparation sequencing of the budgets includes:
Sales budget which are prepared to estimate the sales and revenue expected for the periodThe Selling and administrative budget is prepared estimate the cost of operationThe Budgeted Income Statement is prepared like the Conventional Income statement.The Budgeted Balance Sheet is prepared like the Conventional Balance sheet.Learn more about this here
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Jackie notices everyone wearing Converse sneakers on the first day of school. Ever the fashionista, this will likely affect: Multiple Choice Jackie's income, as she now needs to buy Converse and will have less to spend on other goods. Jackie's preferences for shoes, since she feels as though she needs them now. Jackie's expectations of future prices, since the price of Converse will likely go up because they're getting so popular. the prices of related goods, since other shoes will be less popular and cost less now.
Answer:
Jackie's income, as she now needs to buy Converse and will have less to spend on other goods.
Explanation:
Jackie is a fashionista and so she would respond to trends. Since everyone around her is wearing converse, she would want to wear converses too. so her income would be affected as it would be reduced as she would buy the converse.
g A constraint to complicated macroeconomic models has been: Group of answer choices that firms do not maximize profits. that agents are not rational. that economists have run out of ideas. a lack of computing power. an insufficient understanding of statistics.
Answer:
a lack of computing power.
Explanation:
Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.30 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 15,000 Sales commissions $ 1.30 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 4,200 If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Answer:
Total indirect manufacturing cost= $23,750
Explanation:
Giving the following information:
Variable manufacturing overhead $1.25
Fixed manufacturing overhead $ 15,000
Production= 7,000 units are produced
The indirect manufacturing cost is the sum of the total fixed overhead and total variable cost:
Total indirect manufacturing cost= 15,000 + 7,000*1.25
Total indirect manufacturing cost= $23,750
Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated?
Answer:
$293,500
Explanation:
The computation of the amount pay in separation cost is shown below:
As there are 587 employees
but 10% are downsized
So, separation cost is
= Current employees × downsized percentage × received amount by workers
= 587 employees × 10% × $5,000
= $293,500
We simply applied the above formula so that the amount pay by the company with respect to the separation cost could arrive
Consider Figure 9.2 on page 205 of our textbook. Suppose P0 is $10 and P1 is $11. Suppose a new firm with the same LRAC curve as the incumbent tries to break into the market by selling 4,000 units of output. Estimate from the graph what the new firm's average cost of producing output would be. If the incumbent continues to produce 6,000 units, how much output would be supplied to the market by the two firms? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn ?
Answer:
The 10,000 units of output that will be supplied by the two firms to the market.
Profit that each firm would earn will be higher than previous.
Explanation:
The firm selling 4,000 units at the price of $10 per unit. If the output is increased to 6,000 units the price will increase to $11 per unit. If the new 6,000 units are produced along with the previous 4,000 units then the total output supplied by the two firms will be 10,000 units (6,000 + 4,000). The supply of goods in the market will increase so price will fall and the revenue for the firms will decline but they can benefit with sales volume and their profit can increase.
The 10,000 units of output will be supplied by the two firms to the market.
The profit that each firm would earn will be higher than the previous.
Calculation of the number of units and profits:Here the firm sells 4,000 units at the price of $10 per unit. And, in the case when the output is increased to 6,000 units the price will increase to $11 per unit.
And, In the case when the new 6,000 units are produced along with the previous 4,000 units so the total output supplied by the two firms will be 10,000 units.
The supply of goods in the market should increase due to which the price will fall and the revenue for the firms will decline however they can benefit with sales volume and their profit can increase.
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he financial manager at Starbuck Industries is considering an investment that requires an initial outlay of $24,000 and is expected to produce cash inflows of $1,000 at the end of year 1, $5,000 at the end of years 2 and 3, $14,000 at the end of year 4, $9,000 at the end of year 5, and $7,000 at the end of year 6. a. Select the time line option that represents the cash flows associated with Starbuck Industries' proposed investment. b. Which of the approaches—future value or present value—do financial managers rely on most often for decision making? Why?
Answer:
Please check the attached image for the timeline image.
present value. this is because in making the decision of whether to carry out a project, the decision is made at the beginning of of the project and not in the future. so it is important to determine the present value to know if the project is profitable and should be carried out.
Explanation:
Timeline is arranges a series of events in chronological order. cash inflows are recorded as positive while cash outflows have a negative sign in front of the amount.
present value is the sum of discounted cash flows
With an increase in product advertising of $50 million you expect to increase sales by 10,000 units. If unit grow margin is $4,800, will the additional advertising increase product contribution?
Answer:
Income will decrease by $2,000,000.
Explanation:
Giving the following information:
Advertising increase= $50,000,000
Units increase= 10,000 units
Unit contribution margin= $4,800
To calculate the total effect on income, we need to use the following formula:
Effect on income= total contribution margin - increase in fixed costs
Effect on income= 10,000*4,800 - 50,000,000
Effect on income= $2,000,000 decrease
Income will decrease by $2,000,000.
International trade promotes economic growth when it allows any two countries to grow (in their combined production) beyond (above) their pre-trade production possibilities curve (PPC).
a. True
b. False
Answer: True
Explanation:
The Production Possibilities Curve (PPC) is meant to illustrate how a country produces goods and services given the limited resources it has. The curve represents the various amounts that have to be traded off of 2 goods to produce more or less of one good.
The Curve shows that it is best that a country produces those goods that is good at producing so that it can produce more of it and then trade with the rest of the world for the goods it isn't too efficient at producing. If both countries involved in the trade are able to grow beyond (above) their pre-trade production possibilities curve then the trade would have promoted economic growth.
The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to outsource some production to companies in developing countries. This decision to shift functions or processes to less developed countries is most likely due to their
Answer:
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The decision of the Ceo of Cell Inc. microbilogy research laboratory to outsource some production in developing countries so that maximum output and fast deliveries can be expected to customers and also by the company can focus on various other factors affecting the business.
What is a research laboratory?The scientific lab where the experiments or products research are made so that new products can be made or existing can be replaced in chemical biological or physical aspects.
What is outsourcing?The practice which is done by an individual or an organization by using third party to carry their business activities like performing tasks giving services to customers etc.
What is third party?The company or an individual which comes in between two aspects and try to manage or solve the issue or give solutions
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Blossom Company sells equipment on September 30, 2020, for $20,100 cash. The equipment originally cost $72,800 and as of January 1, 2020, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2020 is $5,45. Prepare the journal entries to (a) update depreciation to September 30, 2015, and (b) record the sale of the equipment.
Answer:
Date Account titles and explanation Debit Credit
30/09/2020 Depreciation expense $5,450
Accumulated depreciation $5,480
(To record depreciation expense)
30/09/2020 Accumulated depreciation $47,550
Cash $20,100
Loss on sale of equipment $5,230
Equipment $72,880
(To record sale of equipment)
You are thinking of building a new machine that will save you $ 4 comma 000$4,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 1 %1% per year forever. What is the present value of the savings if the interest rate is 9 %9% per year?
Answer:
The present value of the savings=$37,064.22
Explanation:
The present value of the savings is the amount that it worths today, this would be done in two stages;
The first stage is to determined the present of the first cash savings as follows:
PV of the first payment = 4,000 × (1.09)^(-1)=3,669.72
Second step is to determine the present value of the declining perpetuity
PV of declining perpetuity. A perpetuity is the series of cash flow occurring for the foreseeable future of years.
A- 4,000, g-negative growth rate = 1%,
interest rate = 9%
PV in year 1 = 4,000× (1-0.09)/(0.09+0.01)
= 36,400
PV in year 0 = 36,400 × (1.09)^(-1) = 33,394.49
The present value of the savings = 33,394.49 + 3,669.72= 37,064.22
The present value of the savings=$37,064.22
Consider a team that you are familiar with - either by being a member of the team, a team leader, or a bystander. What were the team's goals?
Answer:
• To ensure that there is no income leakage whatsoever
• Ensure that there is no customer complaint made to the company's executives
• Early closure not later than 5pm daily, Monday to Friday
• Ensure customer survey ratings of at least 8.0
• Drive paperless environment.
• Daily reconciliation of the bank's transit accounts.
Explanation:
I used to belong to a team called settlement and reconciliation , which is under operations support, business banking in one of the top financial institution.
The goals are as listed above. For instance as a settlement and reconciliation team, you must ensure accurate settlement of all merchants such that none would receive excess settlement s which could deplete the bank's income. Also, there must be no customer complaint escalated to the bank's executives hence team must promptly resolve all queries and complaint.
Another goal is to drive early closure. No member of staff must remain in the office after 5pm unless permission is obtained to deal urgent transaction. Each year, the bank conducts internal survey among departments to know how well we treat our internal and external stakeholders. The least score approved for my team is 8.0 out of 10 , which must be met.
Again, one of the goals of the bank is paperless drive which was included in each team or unit's goals. We support the drive for paperless transactions by suggesting means to consummate transactions without printing. We must also ensure daily and timely reconciliation of all our transit accounts in order to ensure that no idle fund is sitting in there.
On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $66,000 and $900, respectively. During 2022, Larry's wrote off $2,275 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,500 at December 31, 2022. Bad debt expense for 2022 would be:
Answer:Bad debts expense = $6,875
Explanation:
A bad debt expense is recognized when a customer cannot pay its financial obligations therefore the account receivable will no longer be collectible
Beginning uncollectible accounts= $900
Ending allowance for uncollectible accounts = $5,500
Amounts written off = $2,275
Ending allowance for uncollectible accounts =Begining uncollectible accounts + current bad debts expense - amounts written off in 2022
$5,500= $900 + bad debts expense - $2,275
current bad debts expense for 2022= $5,500 - $900 + $2,275 = $6,875
Can also be illustrated as
ACCOUNTS
Begining uncollectible accounts $900
Amounts written off (less) - $2,275
Bad debts expense(add) + $6,875
Ending allowance for uncollectible accounts $5,500
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.10 dividend every year, in perpetuity. If this issue currently sells for $80.65 per share, what is the required return?
Answer:
7.56%
Explanation:
Calculation for the required return for Smiling Elephant
Using this formula
Required return =D/P0
Where,
D=$6.10
P0=$80.65
Let plug in the formula
Required return =$6.10/$80.65
Required return =0.0756×100
Required return =7.56%
Therefore the Required return for Smiling Elephant Inc will be 7.56%
You want employees to know that they can talk to retirement planning specialists. Which of the following statements is most likely persuasive to the most employees?
a) Make your financial dreams come true. Talk one-on-one with our expert retirement planners to decide which retirement packages make the most sense for you.
b) Learn about your options for retirement income. Talk one-on-one with our expert retirement planners to decide which retirement packages make the most sense for you.
c) Learn about your options for retirement income by talking one-on-one with our expert retirement planners, who can help you decide which retirement packages make the most sense for you based on your retirement goals and hopes.
d) Learn about your options for retirement income. Meet with our retirement planners to find out their recommendations for your retirement package.
The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves determining whether the proposed diversification move Group of answer choices provides the company with additional resource strengths. provides additional ways to build the entrepreneurial skills of the company's senior managers. spreads stockholders' risks across a greater number of lines of business. has competitively valuable value chain match-ups with the company's present businesses such that its businesses can perform better together than apart. has good potential for increasing the company's rate of return on invested capital.
Answer: Has competitively valuable value chain match-ups with the company's present businesses such that its businesses can perform better together than apart.
Explanation:
The better-off test of diversification is that the company must gain a return that is higher than incremental growth. Incremental growth is usually defined a 1 + 1 = 2 formula and this test argues that Diversification must provide more than this such that the company achieves synergistic growth ( 1 + 1 = 3) which is what happens when different entities work better together than alone.
Diversification should therefore be into an area that will be able to match-up with the company's present businesses such that its businesses can perform better together than apart and produce even greater returns.
"Which of the following statements are TRUE regarding the rights agent? I The rights agent usually handles the mechanics of a rights offering II The rights agent is usually the existing transfer agent of the issuer III The rights agent issues the additional shares upon presentation of the rights certificates with payment"
Answer:
I, II, and III
I The rights agent usually handles the mechanics of a rights offering
II The rights agent is usually the existing transfer agent of the issuer
III The rights agent issues the additional shares upon presentation of the rights certificates with payment
Explanation:
Aright is defined as an offering to existing shareholders to purchase more shares. Usually there is a proportion of original shares the shareholder can now purchase. For example 1 to 5 shares means the shareholder can buy one share for every 5 old shares owned.
A rights agent is a person or entity that is responsible for maintaining records on behalf of rights holders.
When rights are issued, a rights agent is handles sales to shareholders, he is usually the initial transfer agent for the issuing company, and he issues the additional shares when payment and rights certificates are presented.
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows.
Sales 80,000 units x 45 per unit $3,600,000
Cost of goods sold
- Beginning inventory $__________0
- Cost of goods manufactured (100,000 units x $25 per unit) $2,500,000
- Cost of good available for sale $2,500,000
Ending inventory (20,000 x 25) $500,000
Cost of goods sold $2,000,000
Gross margin $1,600,000
Selling and administrative expenses $580,000
Net income %1,020,000
a. Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2.25 per unit in variable selling and administrative expenses.
b. The company's product cost of $25 per unit is computed as follows:
Direct materials $4 per unit
Direct labor $11 per unit
Variable overhead $4 per unit
Fixed overhead ($600,000/ $100,000 units) $6 per unit
Required:
Prepare an income statement for the company under variable costing.
Answer:
Income statement for the company under variable costing
Sales (80,000 units x $45) $3,600,000
Less Cost of Sales
Beginning inventory $0
Cost of goods manufactured (100,000 units x $19) $1,900,000
Cost of good available for sale $1,900,000
Less Ending inventory (20,000 x $19) ($380,000) ($1,520,000)
Contribution $2,080,000
Less Period Costs
Fixed Manufacturing Overhead ($600,000)
Selling and administrative expenses - Fixed ($400,000)
Selling and administrative expenses - Variable ($180,000)
Net Income / (loss) $900,000
Explanation:
Under Variable Costing.
1.Product cost = Variable Manufacturing Costs Only
Therefore, Product cost = $4 + $11 + $ 4
= $19
2.Period Cost = Fixed Manufacturing Overheads + Non - Manufacturing Costs
railway cabooses justpaid its annual sividend of $1.70 per share. The company has been reducing the dividends by 11.3 percent each year. how much are you willing to pay today to purchase stock in this company if your required rate of return is 12 percent?
Answer:
$6.47
Explanation:
The computation of the current price of the stock is shown below:
= {Current Dividend x [1 + (Dividend Growth)} ÷ [Required rate of Return - (Dividend growth)]
= {$1.70 × [1 + (- 0.113)]} ÷ [0.12 - (- 0.113)]
= $1.5079 ÷ 0.233
= $6.47
hence, the current price of the stock valued today is $6.47 i.e come by applying the above formula
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
Scenario: Your direct supervisor is interested in a project you are currently working on, and they have asked to increase the scope to increase the department's goals. How would you respond if your supervisor was not the project sponsor?
ANSWER:
Take down his/her suggestions. The first thing is to show respect. Accept thoughts and contributions towards that project. Most times a project "sponsor" is not someone who is a professional in the field or discipline that the project is about.
If your direct supervisor has the idea of increasing the scope of the project, take note of his/her reasons and if they will truly bring the achievement of more departmental goals, then relay the idea of expansion to the project sponsor.
Answer:
At this point, the important thing is to remain calm and in control. Your supervisor, like everyone else, is likely to get confused and blame people for things that are not their fault, or even find fault that does not exist.
In that case, you should wait for him to finish speaking, ask for permission to speak and explain how you did your job and show how your supervisor is wrong about the conclusion he made. This must be done calmly and politely, always maintaining respect.
Explanation:
Periodic interest rates. You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of 0.050%, a weekly compounded rate of 0.355%, a monthly compounded rate of 1.15%, a quarterly compounded rater of 4.25%, a semiannually compounded rate of 7.5%, or an annually compounded rate of 18%? What is the effective annual rate (EAR) of a daily compounded rate of 0.050%?
Answer:
Choose an annually compounded rate of 18%
The effective annual rate (EAR) of a daily compounded rate of 0.050% is 0.05001%.
Explanation:
We need to find the effective annual rate of interest for each nominal interest and compare this for the different alternatives.
The effective annual rate of interest is the annual rate that if compounded once a year would give us the same result as the same result as the interest per period compounded a number of times a year.
Conversion of Nominal to Effective Interest Rate.
1. A daily compounded rate of 0.050%
Use a financial calculator to enter the data
P/YR = 365
Nominal interest = 0.050%
Thus Effective Interest rate = ? 0.05001%
2. A weekly compounded rate of 0.355%
Use a financial calculator to enter the data
P/YR = 52
Nominal interest = 0.355%
Thus Effective Interest rate = ? 0.3556 %
3. A monthly compounded rate of 1.15%
Use a financial calculator to enter the data
P/YR = 12
Nominal interest = 1.15%
Thus Effective Interest rate = ? 1.1561%
4. A quarterly compounded rater of 4.25%
Use a financial calculator to enter the data
P/YR = 4
Nominal interest = 4.25%
Thus Effective Interest rate = ? 4,32%
5. A semiannually compounded rate of 7.5%
Use a financial calculator to enter the data
P/YR = 2
Nominal interest = 7.5%
Thus Effective Interest rate = ? 7.64%
6. an annually compounded rate of 18%
Use a financial calculator to enter the data
P/YR = 1
Nominal interest = 18%
Thus Effective Interest rate = ? 18%
Conclusion :
Choose the option giving the HIGHEST effective annual rate.
Thu, I would rather have an annually compounded rate of 18%.
Q3) At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. If output rises to 48,000 units, what will the percentage change in operating cash flow be
Answer: 18.6%
Explanation:
Degree of operating leverage = % change in Operating cash flow / % change in output
% change in Output
= [tex]\frac{48,000 - 45,000}{45,000}[/tex]
= 6.7%
Degree of operating leverage = % change in Operating cash flow / % change in output
2.79 = % change in Operating cash flow/ 6.7%
% change in Operating cash flow = 2.79 * 6.7%
% change in Operating cash flow = 18.6%
Bee Inc. is working on its cash budget for March. The budgeted beginning cash balance is $55,000. Budgeted cash receipts total $139,000 and budgeted cash disbursements total $134,000. The desired ending cash balance is $80,000. To attain its desired ending cash balance for March, the company needs to borrow:
Answer:
$20,000
Explanation:
The computation of the borrowed amount is shown below:
As we know that
Ending cash balance = beginning cash balance + cash receipts - cash disbursements + cash borrowings
$80,000 = $55,000 + $139,000 - $134,000 +cash borrowings
$80,000 = $194,000 - $134,000 + cash borrowings
So, the borrowing is $20,000
PROBLEM 1:
Equipment A Equipment B
cost $100,000 $63,000
Accumulated depreciation(1/1) $ 42,000 $36,000
Useful life 8 years 5 years
Depreciation method straight line straight line
Date sold 7/1/12 9/1/12
Sales price $ 39,000 $ 20,000
Journalize all entries required to update deprecition and record thesales of the two assets in 2012.accumulated depreciation includes depreciation recorded through 12/31/11.
Answer:
Equipment A
Journal Entry - update depreciation
Depreciation expense $6,250 (debit)
Accumulated depreciation $6,250 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)
Cash $ 39,000 (debit)
Profit and Loss $12,750 (debit)
Equipment $100,000 (credit)
Equipment B
Journal Entry - update depreciation
Depreciation expense $6,300 (debit)
Accumulated depreciation $6,300 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)
Cash $ 20,000 (debit)
Profit and Loss $700 (debit)
Equipment $63,000 (credit)
Explanation:
Straight line method charges a fixed amount of depreciation for the time the asset is in use in the business.
Depreciation Expense = (Cost - Residual Value) / Estimated Useful Life
Equipment A
Depreciation Expense = $100,000 / 8 years
= $12,500
Depreciation Expense for 2012 = $12,500 × 6/12
= $6,250
Journal Entry - update depreciation
Depreciation expense $6,250 (debit)
Accumulated depreciation $6,250 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($ 42,000 + $6,250) $48,250 (debit)
Cash $ 39,000 (debit)
Profit and Loss $12,750 (debit)
Equipment $100,000 (credit)
Equipment B
Depreciation Expense = $63,000 / 5 years
= $12,600
Depreciation Expense for 2012 = $12,600 × 6/12
= $6,300
Journal Entry - update depreciation
Depreciation expense $6,300 (debit)
Accumulated depreciation $6,300 (credit)
Journal Entry - to record the sale
Accumulated depreciation ($36,000 + $6,300) $42,300 (debit)
Cash $ 20,000 (debit)
Profit and Loss $700 (debit)
Equipment $63,000 (credit)
A company's flexible budget for 13,200 units of production showed sales, $54,120; variable costs, $21,120; and fixed costs, $18,000. The operating income expected if the company produces and sells 19,600 units is:
Answer:
Net income= $31,000
Explanation:
Giving the following information:
Production= 13,200
Sales= 54,120
Variable costs= $21,120
Fixed costs= $18,000
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin/number of units
Unitary contribution margin= (54,120 - 21,120) / 13,200
Unitary contribution margin= $2.5
Now, for 19,600 units:
Total contribution margin= 2.5*19,600= 49,000
Fixed costs= (18,000)
Net income= 31,000
The Oriole Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $1,760 per month
Maid service $24 per room
Other costs $46 per room
Determine the inn’s break-even point in number of rented rooms per month.
Answer:
Break-even point in units= 402 rooms a month
Explanation:
Giving the following information:
The inn has 50 rooms that it rents at $100 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,500 per month
Depreciation $1,300 per month
Maintenance $1,760 per month
Maid service $24 per room
Other costs $46 per room
First, we need to calculate the total fixed costs and the unitary variable cost.
Total fixed costs= salaries + utilities + depreciation + maintenance
Total fixed costs= $12,060
Unitary variable cost= 24 + 46= $70
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,060/ (100 - 70)
Break-even point in units= 402 rooms a month
Two investment advisers are comparing performance. One averaged a 21% rate of return and the other a 18% rate of return. However, the beta of the first investor was 1.4, whereas that of the second investor was 1. a. Can you tell which investor was a better selector of individual stocks (aside from the issue of general movements in the market)? First investor Second investor Cannot determine b. If the T-bill rate was 7% and the market return during the period was 13%, which investor would be considered the superior stock selector? Second investor First investor Cannot determine c. What if the T-bill rate was 4% and the market return was 17%? First investor Second investor Cannot determine
Gaines Corporation invested $126,000 to acquire 26 comma 000 shares of Owens Technologies, Inc. on March 1, 2018. On July 2, 2019, Owens pays a cash dividend of $ 3.25 per share. The investment is classified as equity securities with no significant influence. Which of the following is the correct journal entry to record the transaction on July 2, 2019?
a. Cash 78,000
Equity Investments 78,000
b. Cash 78,000
Retained Equipment 78,000
c. Equity Investments 78,000
Cash 78,000
d. Cash 78,000
Dividend Revune 78,000
Answer:
Cash Dr, $84,500
Dividend revenue $84,500
Explanation:
The Journal entry is shown below:-
Cash Dr, $84,500 (26,000 × $3.25)
To Dividend revenue $84,500
(Being dividend is recorded)
To record the dividend, we debited the cash as it increased the assets and we credited the dividend revenue as it also increased the revenue
Therefore the above entry is the right and the same is not given in the option.
Wanda contracted to sell Mike 100 boxes of ball bearings.The contract did not specify a place of delivery.The ball bearings now reside at Wanda's place of business.Wanda refuses to ship the 100 boxes to Mike,and Mike refuses to come to Wanda's place of business to pick them up.Who is right? Why?
Answer:
Wanda is right since the contract did not specify a place of deliveryExplanation:
Wanda is right, since the contract did not specify the place of delivery or whether Wanda is expected to deliver the bearing to Mikes place.
If it is in Wanda terms of business that normally boxes above 100 when purchased, delivery is free and he defaults, then he is wrong, but in this case it was not specified who will bear the cost of shipping, and it is not in Wanda terms of business that delivery is free, so Wanda is right in my own opinion.