Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A
Answer:
324
Explanation:
Calculation to determine What order quantity maximizes expected profit for Bakery A
First step is for the Salvage value
Salvage value = $2 × (1 - 80%)
Salvage value= $0.40
Second step is to calculate the Overage cost
Overage cost = $0.50 - $0.40
Overage cost = $0.10
Second step is to calculate the Underage cost
Underage cost = $2 - $0.50
Underage cost = $1.50
Third step is to calculate the The critical ratio
The critical ratio = 1.5/(1.5 + 0.4) = 0.79. z = 0.8
Now let calculate the Order quantity
Order quantity = 300 + (0.8× 30)
Order quantity= 324
Therefore the order quantity maximizes expected profit for Bakery A is 324
Cootributions of political institutions
Answer:
Contributions of political institutions are diverse, and very important for any society.
Explanation:
Institutions contribute to the law and order of a nation. They also help define and determine the government structure of a place. Institutions also promote economic development by incentivizing investment if certain specific institutions are in place, like property rights enforcement, and impartial laws. In fact, this last aspects has been explored at length by economists like Amartya Sen and Daron Acemoglu.
Lyman Company has the opportunity to increase annual credit sales $100,000 by selling to a new, riskier group of customers. The expenses of collecting credit sales are expected to be 15 percent of credit sales. The company's manufacturing and selling expenses are projected at 70% of sales, and its effective tax rate is 40%. If Lyman accepts this opportunity, its after-tax profits would increase by an estimated:_____.
a. $10,200.
b. $10,000.
c. $9,000.
d. $14,400.
Answer:
Option c ($9,000) is the correct answer.
Explanation:
The given values are:
Annual increase in sales,
= $100,000
Now,
The collection expenses will be:
= [tex]100,000\times 15 \ percent[/tex]
= [tex]15,000[/tex]
Selling as well as manufacturing expenses will be:
= [tex]100,000\times 70 \ percent[/tex]
= [tex]70,000[/tex]
Tax expense will be:
= [tex]15,000\times 40 \ percent[/tex]
= [tex]6,000[/tex]
After-tax profits increase will be:
= [tex]15,000-6,000[/tex]
= [tex]9,000[/tex] ($)
The US Government is forecasting that the nominal risk-free rate of return on Treasury Notes maturing in 7 years is 2.5% and is expected to be constant for the foreseeable future. Apple Computer's Treasury department is considering issuing a 7 year corporate bond and they know that Apple's corporate bonds generally yield investors 100 basis points or 1% over the nominal risk free rate at the time of issuance. The bonds will be issued at par value. What is the coupon percentage and total yield expected on these new 7 year bonds?
a. 3.5%
b. 10%
c. 2.5
d. Cannot determine
Answer:
a. 3.5%
Explanation:
If the nominal interest rate of the Treasury bonds is 2.5%, and Apple's corporate bonds yield 1%, just add 2.5% + 1% = 3.5%.
when you are talking about bonds, 100 points = 1%. This many times confuses people that are not aware of this since you hear that a bond will pay 50 points more and you imagine a really high interest rate.
Answer:
A
Explanation:
How are wages for a particular job determined?
by the federal Wage and Hour Department
by the amount of inflation in the economy
by the equilibrium between supply and demand for workers
by advertisements in the newspaper or online
Answer:
by the equilibrium between supply and demand for workers
Explanation:
Wages are the amount to pay workers for a particular job when employed. Therefore, determining the wages for a particular job is mostly dependent "on the equilibrium between supply and demand for workers, " and sometimes location.
This is because the higher the number of workers available, the lesser the employers would be willing to increase the wage level of employees given the fact that they can easily find another employee. However, where there is a lesser number of employees for a particular job, the employers would be willing to increase the employees' wages to entice them.
According to the labor market equilibrium, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
The term "labor market," sometimes referred to as the "job market," describes the supply and demand for labor, with employers meeting the demand and employees meeting the supply.
The supply and demand of labor, which are met by employees and employers respectively, are referred to as the labor market.Both macroeconomic and microeconomic perspectives on the labor market are important because they provide useful information on employment and the state of the economy as a whole.Two crucial macroeconomic indicators are labor productivity rates and unemployment rates.Therefore, The wages for a particular job are determined by the equilibrium between supply and demand for workers. Thus, the correct answer is option (c).
Learn more about labor market equilibrium here,
https://brainly.com/question/33965468
#SPJ6
The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $6,700 cash earned. The company completed commission work for a client and sent a bill for $5,200 to be received within 30 days. The company paid an assistant $2,000 cash as wages for the period. The company collected $2,600 cash as a partial payment for the amount owed by the client in transaction b. The company paid $940 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
The impact of each transaction on individual items of the accounting equation is as follows:
1. Cash $6,700 Consulting Revenue $6,700:
Assets (Cash +$6,700) = Liabilities + Equity (Retained Earnings $6,700)
2. Accounts Receivable $5,200 Commission Revenue $5,200:
Assets (Accounts Receivable +$5,200) = Liabilities + Equity (Retained Earnings $5,200)
3. Wages Expense $2,000 Cash $2,000:
Assets (Cash -$2,000) = Liabilities + Equity (Retained Earnings -$2,000)
4. Cash $2,600 Accounts Receivable $2,600:
Assets (Cash +$2,600 Accounts Receivable -$2,600) = Liabilities + Equity
5. Cleaning Expense $940 Cash $940:
Assets (Cash -$940) = Liabilities + Equity (Retained Earnings -$940)
Explanation:
a) Data and Calculations:
Accounts affected by each transaction:
1. Cash $6,700 Consulting Revenue $6,700
2. Accounts Receivable $5,200 Commission Revenue $5,200
3. Wages Expense $2,000 Cash $2,000
4. Cash $2,600 Accounts Receivable $2,600
5. Cleaning Expense $940 Cash $940
b) The accounting equation is Assets = Liabilities + Equity. It is the basis of accounting, debit and credit sides of accounts or the double-entry system of accounting. It is always in balance with each business transaction when they are properly recorded in the journals and correctly posted to the general ledger.
In its first month of operations, Wildhorse Co. made three purchases of merchandise in the following sequence: (1) 370 units at $6, (2) 470 units at $8, and (3) 570 units at $9. Assuming there are 270 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Wildhorse Co. uses a periodic inventory system. FIFO LIFO The Ending Inventory $Enter a dollar amount $Enter a dollar amount
Answer:
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
Explanation:
First determine the units sold
Units Sold = Total Purchases - Units in hand
= 1,410 units - 270 units
= 1,140
Note ; Wildhorse Co. uses a periodic inventory system. This means we calculate the cost at the end of the period.
FIFO
Means First in First Out
Cost of the ending inventory = 270 x $9.00 = $2,430
LIFO
Means Last in First Out
Cost of the ending inventory = 270 x $6.00 = $1,620
Conclusion
The cost of the ending inventory under FIFO is $2,430 and under LIFO is $1,620
During Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method. Multiple Choice, the production department of a process operations system completed and transferred to finished goods 20,000 units that were in process at the beginning of March and 100,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 54% complete with respect to conversion. At the end of March, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 29% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.
Answer:
Computing the equivalent units using the weighted-average method:
Materials Conversion
Total equivalent units 129,000 108,410
Explanation:
a) Data and Calculations:
Beginning inventory = 20,000 units
Degree of completion (Materials 100%, Conversion 54%)
Units started and completed in March = 100,000
Units transferred out = 120,000
Ending inventory = 29,000 units
Degree of completion (Materials 100%, Conversion 29%)
Total equivalent units Materials Conversion
Units started & completed 100,000 (100%) 100,000 (100%)
Units in Ending Inventory 29,000 (100%) 8,410 (29%)
Total equivalent units 129,000 108,410
b) In computing the equivalent units of production, the weighted-average method takes into account the units started and completed within the period and the ending work in process. This is unlike the FIFO method, which considers the units completed in the beginning work-in-process during the current period, the units started and completed, and the ending work-in-process inventory based on their various degrees of completion.
Data for January for Bondi Corporation and its two major business segments, North and South, appear below: Sales revenues, North $ 561,000 Variable expenses, North $ 325,500 Traceable fixed expenses, North $ 67,100 Sales revenues, South $ 433,200 Variable expenses, South $ 247,100 Traceable fixed expenses, South $ 56,000 In addition, common fixed expenses totaled $151,900 and were allocated as follows: $78,900 to the North business segment and $73,000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:
Answer:
[tex]561000 + 433200 + 78900 + 73000 = [/tex]
[tex]561000 + 433200 + 78900 + 73000 = [/tex]
All of the following are benefits associated with empowerment except: a. empowered employees are more likely to respond in a positive way to service failures and to engage in effective service recovery strategies. b. empowered employees are more customer focused and quicker in responding to customer needs. c. empowered employees tend to feel better about their jobs and themselves, which is automatically reflected in the way they interact with customers. d. empowered front-line employees gain a false sense of power, in turn aiding the customer. e. empowered front-line service employees can be key to new service ideas and a cheaper source of market research than going to the consumer directly.
Answer:
d. empowered front-line employees gain a false sense of power, in turn aiding the customer.
Explanation:
Employee empowerment is when an employer gives the employee a degree of autonomy in making decisions that affects their jobs.
They are allowed to decide how best to perform their jobs.
This gives the employee a sense of ownership that translates to better customer service, positive attitude, better employee moral, and cheaper source of market research than going to the consumer directly.
However this style does not give a false sense to power, because the employees actually.have autonomy in their work.
The statement that does not benefits associated with empowerment is that empowered front-line employees gain a false sense of power, in turn aiding the customer.
Empowerment is known to be firm based commitment to respect all its employees as intelligent and responsible human beings.The rewards of empowerment are numerous such as higher levels of employee satisfaction, a sense of shared purpose, and more collaboration etc.
Conclusively ,Employee empowerment as a management philosophy uses the importance of granting employees to make independent decisions and act on them.
Learn more from
https://brainly.com/question/24113378
You have $B in your bank account. You are asked if you would like to participate in a bet in which, if you win, your bank account will become $W. However, if you lose, your bank account will contain only $L. You win the bet with probability pw. How large should pw be to accept the bet? (
Answer:
Pw = ( B - L ) / ( W-L )
Explanation:
pW + pL = 1 ------ ( 2 )
Expected value after placing bet = W*pW + L*pL ------ ( 2 )
pL = ( 1 - pW ) from equation 1
rewrite equation 2
W*pW + L*( 1 - pW ) ------ (3)
The condition to accept bet is ; W*pW + L*( 1 - pW ) > $B
= W*pW + L - LpW > $B ( factorize )
= ( W - L ) * pW + L > $B
hence the value of Pw = ( B - L ) / ( W-L )
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $433,200; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $457,200 in materials costs, $451,600 in overhead costs and $232,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
a. $10,800 overapplied.
b. $18,400 overapplied.
c. $10,800 underapplied.
d. $18,400 underapplied.
Answer:
see below
Explanation:
Given that cost incurred = $457,200
Overhead
= $457,200 - $433,200
Cincinnati Exporters wants to raise $40 million to expand its business. To accomplish this, it plans to sell 22-year, $1,000 face value, semiannual coupon bonds. The bonds will be priced to yield 6.85 percent and coupon rate of 5.72 percent. What is the minimum number of bonds it must sell to raise the money it needs
Answer:
Minimum number of units to be issued = 45,791.4 units
Explanation:
The units of the bonds to be sold to raise the money equals to the price of the bonds divided by the sum to be raised
The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.
These cash flows include interest payment and redemption value
The price of the bond can be calculated as follows:
Step 1
PV of interest payment
Semi-annual coupon rate = 5.72/2 = 2.86 %
Semi-annual Interest payment =( 2.86 %×$1000)= $28.6
Semi annual yield = 6.85%/2 = 3.42%
PV of interest payment
= A ×(1- (1+r)^(-n))/r
A- interest payment, r- yield -3.42%, n- no of periods- 2 × 22 = 44 periods
= 28.6× (1-(1.0342)^(-44)/0.0342)= 645.82
Step 2
PV of redemption value (RV)
PV = RV × (1+r)^(-n)
RV - redemption value- $1000, n- 7, r- 4.5%
= 1,000 × (1+0.0342)^(-2×22)
= 1000 × 1.0342^(-44)= 227.7
Step 3
Price of bond = PV of interest payment + PV of RV
645.82 + 227.7= 873.525
Minimum number of units to be issued = $40 million/873.5= 45,791.4 units
Minimum number of units to be issued = 45,791.4 units
arrange the scrambled letter
utsbetiust
icevers
pecitionmto
imcltea
ntertsan
Answer:
below
Explanation:
substitute
service
competition
climate
entrants
Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $28 million per year. Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of $27 million per year. Shao plans to serve the route for only 10 years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is 9%. By how much would the value of the company increase if it accepted the better project (plane)
Answer:
41.28 million
Explanation:
the net present value of the two alternatives needs to be determined. The appropriate alternative would be the plane with the higher NPV
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Alternative 1
Cash flow in year 0 = $-100 million
Cash flow each year from year 1 to 5 = $28 million
I = 9%
NPV = $8.91 million
Alternative 2
Cash flow in year 0 = $-132 million
Cash flow each year from year 1 to 10 = $27 million
I = 9%
NPV = $41.28 million
The second alternative has the higher NPV and it would increase the value of the company by $41.28 million if accepted
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
As of December 31, 2021, Purdue Corporation reported the following: Cash dividends payable $ 29,000 Treasury stock 690,000 Paid-in capital—share repurchase 29,000 Common stock and other paid-in capital accounts 4,900,000 Retained earnings 3,900,000 During 2022, half of the treasury stock was resold for $258,000; net income was $690,000; cash dividends declared were $590,000; and small stock dividends declared and distributed were $418,000. What would shareholders' equity be as of December 31, 2022?
Answer:
$8,542,000
Explanation:
Stockholder's equity is computed as seen below;
Common stock and paid in capital
$4,900,000
Retained earnings
$3,900,000
Treasury stock
($258,000)
Total stockholder's equity
$8,542,000
Therefore the shareholder equity basis as of Dec 31 2022 is $8,542,000
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
1. See the attached excel file for the T-accounts.
2. Total of credit side = Total of debit side = $43,931
Explanation:
1. Post the transactions to the T-accounts.
Note: See the attached excel file for the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
The trial balance will look as follows:
Pose-for-Pics
Trial balance
For August, 31
Details Debit ($) Credit ($)
Cash 6,336
Equipment 33,700
Common stock 40,400
Prepaid Insurance 2,204
Insurance Expenses 96
Office Supplies 900
Photography fees 3,531
Utilities Expense 695
Total 43,931 43,931
at the best answer for the question
The selling of goods and/or services to a customer is called
A.Service Industry
B.Food Service
C.Purchasing
D.Retail
Answer:
The correct answer is D. Retail.
Explanation:
Retail is the sale to the final consumer of goods and services. It is a sector formed by different branches (such as the food industry, the fashion industry, the home industry, etc.), which constitutes the last link in the supply chain that goes from the manufacturer to the consumer, it is In other words, it is the culmination of the process of production of goods and services, when they reach the consumer. This sale is usually carried out in stores, supermarkets, pharmacies, internet platforms and any other place where goods and services can be offered to final recipients.
define private equity funds.
Answer:
Private equity is composed of funds and investors that directly invest in private companies
Hope this helps!
The optimal risky portfolio can be identified by finding ____________. I. the minimum variance point on the efficient frontier II. the maximum return point on the efficient frontier the minimum variance point on the efficient frontier III. the tangency point of the capital market line and the efficient frontier IV. the line with the steepest slope that connects the risk free rate to the efficient frontier A. I and II only B. II and III only C. I and IV only D. III and IV only
Answer:
D. III and IV only.
Explanation:
Portfolio variance can be defined as the measurement of risk or dispersion of returns of a set of securities that makes up a portfolio fluctuate over a period of time.
Simply stated, portfolio variance is typically the total returns of the portfolio over a specific period of time.
In order to calculate the portfolio variance, the standard deviations of each security in the portfolio with their respective correlations security pair in the portfolio would be used. Portfolio variance is the square of standard deviation.
A two-asset portfolio with a standard deviation of zero can be formed when the assets have a correlation coefficient equal to negative one (-1) because this defines the efficiency frontier. In Economical portfolio theory, the efficient frontier is a group of optimal portfolios that offers an investor the highest expected return for a specific risk level or offers the lowest risk for a defined level of expected return.
A common risk can be defined as a type of risk that affects the entirety of a business firm or company and as such can't be diversified.
Generally, the optimal risky portfolio can be identified by finding the tangency point of the capital market line and the efficient frontier and the line with the steepest slope that connects the risk free rate to the efficient frontier.
Why are the incentives of a supplier the opposite of the incentives of a demander
Answer:
The incentives of a supplier are the opposite of the incentives of a demander because it is a relationship whose nature makes supply and demand inversely proportional to each other: the higher the supply, the lower the demand for each product and the lower its price; While the lower the supply, the greater the demand for each product and the higher its price. Thus, in many cases, suppliers seek to restrict supply to maximize profits, while demanders seek to lower prices through a greater quantity of goods offered.
At the beginning of April, Owl Corporation has a balance of $11,500 in the Retained Earnings account. During the month of April, Owl had the following external transactions.
1. Issue common stock for cash, $10,000.
2. Provide services to customers on account, $7,000.
3. Provide services to customers in exchange for cash, $1,700.
4. Purchase equipment and pay cash, $6,100.
5. Pay rent for April, $1,200.
6. Pay employee salaries for April, $2,000.
7. Pay dividends to stockholders, $1,250.
Required:
Using the external transactions above, compute the balance of Retained Earnings at April 30. (Decreases should be entered as a negative.)
Answer: $15,750
Explanation:
Retained earnings are profits so will be increased by sales and services provided and reduced by expenses.
They will also be reduced by dividends because that is where dividends are paid from:
Retained earnings = Opening balance + service for customers + service for customers - rent - employee salaries - dividends
= 11,500 + 7,000 + 1,700 - 1,200 - 2,000 - 1,250
= $15,750
The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 659,000 Direct labor cost $ 88,000 Raw material purchases $ 135,000 Selling expenses $ 104,000 Administrative expenses $ 49,000 Manufacturing overhead applied to work in process $ 209,000 Actual manufacturing overhead costs $ 221,000 Inventories Beginning Ending Raw materials $ 8,600 $ 10,200 Work in process $ 5,400 $ 20,200 Finished goods $ 78,000 $ 25,600 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.
Answer:
1. Schedule of cost of goods manufactured.
Beginning Work in Process $ 5,400
Direct labor cost $ 88,000
Direct Material Costs :
Beginning Inventory $ 8,600
Add Raw material purchases $ 135,000
Less Ending Inventory ($ 10,200) $ 133,400
Manufacturing Overhead applied $ 209,000
Ending Work in Process ($ 20,200)
Cost of goods manufactured $415,600
Under-applied overheads = $12,000 ($ 221,000 - $ 209,000)
2. Schedule of cost of goods sold.
Beginning Finished Goods Inventory $ 78,000
Add Cost of Goods Manufactured $ 415,600
Less Ending Finished Goods Inventory ($ 25,600)
Cost of goods sold $467,400
Add Under-applied overheads $12,000
Adjusted Cost of goods sold $479,400
3. Income statement.
Sales $ 659,000
Less Cost of Goods Sold ($479,400)
Gross Profit $179,600
Less Expenses
Selling expenses $ 104,000
Administrative expenses $ 49,000 ($153,000)
Net Income (Loss) $26,600
Explanation:
See the schedules including the income statement prepared above.
Swifty Hardware reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 31,000 $ 21,500 Cost of goods purchased 203,500 153,000 Cost of goods available for sale 234,500 174,500 Less: Ending inventory 35,000 31,000 Cost of goods sold $199,500 $143,500 Swifty made two errors: 1. 2021 ending inventory was overstated by $3,600. 2. 2022 ending inventory was understated by $6,550. Compute the correct cost of goods sold for each year. 2022 2021 Cost of goods sold
Answer:
See below
Explanation:
1. Correct amount of cost of goods sold 2022
= beginning inventory + cost of goods purchased - correct ending inventory
= $31,000 + $203,500 - ($35,000 - $6,550)
= $234,500 - $28,450
= $206,050
2.Correct amount of cost of goods sold 2021
= $21,500 + $153,000 - ($31,000 - $3,600)
= $139,900
A company expects to pay a dividend of $3.50 per share one year from today. the dividend is expected to grow at 30 percent per year for three years. Thereafter, the dividend will grow at 4 percent per year in perpetuity. if the appropriate discount rate for the stock is 13 percent, what is the price of the stock today
Answer: $70
Explanation:
Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price
Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)
= (3.50 * 1.30³ * 1.04) / (13% - 4%)
= $88.856
Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴
= $69.97
= $70
The BX11160 company has provided its contribution format income statement for a given month. Sales (8,000 units) $ 440,000 Variable expenses 280,000 Contribution margin 160,000 Fixed expenses 103,500 Net operating income $ 56,500 If the BX11160 company sells 7,900 units next month, how much would its net operating income expected to be next month? (Do not round intermediate calculations.)
Answer:
Net operating income= $48,500
Explanation:
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= 160,000 / 8,000
unitary contribution margin= $20
Now, the net income for 7,600 units:
Contribution margin= 7,600*20= 152,000
Fixed expenses= (103,500)
Net operating income= $48,500
Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?
Answer:
$836.08 per month
Explanation:
In order to calculate Cindy's new monthly rent, we would simply need to divide the renter's insurance by 12 since there are 12 months in a year. and then add that product to her monthly rent like so...
565.00 / 12 = 47.08
789 + 47.08 = 836.08
Finally, we can see that Cindy's new rent after including the renters insurance would be $836.08 per month
A corporation is concerned about their exposure to criminal liability after the most recent election cycle placed a number of new legislators in Congress who campaigned against corporate corruption. Select the strategy that would be least effective in reducing the company's criminal liability.
A. It could prioritize ethical leadership when making hiring decisions for management-level positions.
B. It could encourage reporting by establishing internal protections for whistleblowers beyond what is provided by Congressional law.
C. It could strengthen its code of ethics to reflect the current political mood.
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Answer:
The strategy that would be least effective in reducing the company's criminal liability is:
D. It could donate to the election campaigns of the new members of Congress to establish goodwill.
Explanation:
While the other three options will effectively reduce the company's criminal liability exposure, option D is the least that is likely to have a positive or effective effect. This implies that option D is most likely to aggravate the criminal liability of the company as it will be regarded as bribery to cover up a crime.
15. Consider a no-load mutual fund with $400 million in assets, 50 million in debt, and 15 million shares at the start of the year; and $500 million in assets, 40 million in debt, and 18 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share, and capital gains distributions of $0.30 per share. Assuming that the fund carries no debt, and that the total expense ratio is 0.75%, what is the rate of return on the fund
Answer:
12.09%.
Explanation:
Calculation to determine the rate of return on the fund
First step is to calculate the beginning year NAV
Beginning year NAV = ($400 million assets - 50 million debt) / 15 million shares
Beginning year NAV = 23.33
Second step is to calculate the ending year NAV
Ending year NAV = ($500 million assets - (500*0.75% expense) - 40 million debt] / 18 million shares
Ending year NAV =[456.25/18 million shares]
Ending year NAV =25.35
Now let calculate the return using this formula
Return = (Ending NAV -beginning NAV + Capital gain + income) / Beginning NAV)
Let plug in the formula
Return = (25.35-23.33+0.30+0.50)/23.33
Return = 12.09%
Therefore the rate of return on the fund is 12.09%
A company establishes a $2,050 petty cash fund on May 2. On May 30, the fund shows $868 in cash along with receipts for the following expenditures: transportation-in, $160; postage expenses, $589; and miscellaneous expenses, $440. The petty cashier could not account for a $7 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $7 and credit Cash for $1,182], and (3) June 1 entry to increase the fund to $2,400.
Answer:
Explanation:
Petty cash $2,050
Cash $2,050
Merchandise inventory $160
Postage Expense $589
Misc. expenses $440
Credit:
Cash over and short $7
Cash
Petty Cash $350
Cash $350
(2400-2050)