Answer:
a. Direct Material Purchases (Dr.) $98,500
Indirect Material Purchase (Dr.) $14,800
Accounts Payable (Cr.) $113,300
b. Direct Material Issued (Dr.) $82,500
Indirect Material Issued (Dr.) $8,800
Cost of Goods Manufactured (Cr.) $91,300
c. Direct Labor Cost Incurred (Dr.) $67,000
Indirect Labor Cost Incurred (Cr.) $18,750
Manufacturing Conversion Cost (Cr.) $85,750
d. Manufacturing Overhead (Dr.) $46,200
Factory Overhead (Cr.) $46,200
Explanation:
Journal entries are prepared for the issuance of material and labor cost to the manufacturing department. These transactions are recorded to identify the cost of factory overhead and conversions costs.
define nationalization.
Answer:
the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state.
Explanation:
At December 31, 2020, Concord Corporation had a projected benefit obligation of $551,500, plan assets of $313,400, and prior service cost of $134,800 in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2020. (Enter liability using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Pension asset/liability at December 31, 2020
Answer:
$238,100
Explanation:
Calculation to Determine the pension asset/liability at December 31, 2020
Using this formula
Pension asset/liability at December 31, 2020= Projected benefit obligation -Plan assets
Let plug in the formula
Pension asset/liability at December 31, 2020=$551,500 - $313,400
Pension asset/liability at December 31, 2020= $238,100
Therefore Pension asset/liability at December 31, 2020 is $238,100
Ensemble Co.
Unadjusted Trial Balance
For the Year Ending December 31, 2018
Debit Balances Credit Balances
Cash 42,900
Accounts Receivable 123,500
Prepaid Insurance 27,000
Equipment 300,000
Accounts Payable 52,000
Salaries Payable 4,800
Common Stock 40,000
Retained Earnings 137,200
Dividends 5,000
Service Revenue 1,216,000
Salary Expense 660,000
Advertising Expense 275,000
Miscellaneous Expense 16,600
1,801,500 1,801,500
How does grading work?
Ensemble Co.
UNADJUSTED TRIAL BALANCE
ACCOUNT TITLE DEBIT CREDIT
1 Cash
2 Accounts Receivable
3 Prepaid insurance
4 Equipment
5 Accounts Payable
6 Salaries Payable
7 Common Stock
8 Retained Earnings
9 Dividends
10 Service Revenue
11 Salary Expense
12 Advertising Expense
13 Miscellaneous Expense
14 Totals
Answer:
Ensemble Co.
UNADJUSTED TRIAL BALANCE
ACCOUNT TITLE DEBIT CREDIT
1 Cash 42,900
2 Accounts Receivable 123,500
3 Prepaid insurance 27,000
4 Equipment 300,000
5 Accounts Payable 52,000
6 Salaries Payable 4,800
7 Common Stock 40,000
8 Retained Earnings 137,200
9 Dividends 5,000
10 Service Revenue 1,216,000
11 Salary Expense 660,000
12 Advertising Expense 275,000
13 Miscellaneous Expense 16,600
14 Totals 1,466,600 1,466,600
Explanation:
A Trial Balance is used to check for mathematical accuracy. It is a list of Debits and Credit prepared from Ledger Account.
A bond with face value of $500,000 has a bid quote of 99.1227 and an asked quote of 99.3996. How much will you, an investor, pay to purchase 10 of these bonds
Answer: 4969980
Explanation:
Based on the information given in the question, the following can be deduced:
Face value = $500,000
Bid quote = 99.1227
Ask quote = 99.3996
The amount that will be paid by an investor to purchase 10 of these bonds will be:
= 10 × Face value × Ask price
= 10 × 500000 × 99.3996%
= 10 × 500000 × 0.993996
= 4969980
Which of the following is an example of frictional unemployment? A former mayor doing volunteer work A former mayor doing volunteer work A factory worker who loses her job because of recession A factory worker who loses her job because of recession A college student working part-time at the campus bookstore A college student working part-time at the campus bookstore A college graduate interviewing for two available positions A college graduate interviewing for two available positions An architect whose job is replaced by computer software that designs buildings
Answer:
A college graduate interviewing for two available positions
Explanation:
Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
An architect whose job is replaced by computer software that designs buildings is an example of structural unemployment. Structural unemployment i is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
A factory worker who loses her job because of recession is an example of cyclical recession. Cyclical unemployment occurs as a result of fluctuations in the economy.
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $43,000 $52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Activities and information for May
Raw materials purchases (paid with cash) 210,000
Factory payroll (paid with cash) 345,000
Factory overhead Indirect materials 15,000
Indirect labor 80,000
Other overhead costs 120,000
Sales (received in cash) 1,400,000
Pre-determined overhead rate based on direct labor cost 70%
Compute the following amounts for the month of May using T-accounts.
1. Cost of direct materials used.
2. Cost of direct labor used.
3. Cost of goods manufactured.
4. Cost of goods sold.
4. Gross profit.
5. Overapplied or underapplied overhead.
Do not consider any underapplied or overapplied overhead.
These are the accounts that are used t(that need to be filled in).
1. Raw Materials (RM)
2. Goods In Process (GIP)
3. Factory Payroll
4. Finished Goods (FG)
5. Factory Overhead
6. Income Statement (Partial)
Answer:
Lock-Tite Company
1. Cost of direct materials used = $186,000
2. Cost of direct labor used = $265,000
3. Cost of goods manufactured = $ 625,400
4. Cost of goods sold = $652,800
4. Gross profit = $747,200
5. Underapplied overhead = $29,500
Explanation:
a) Data and Calculations:
Inventories April 30 May 31
Raw materials $43,000 $52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Raw materials
Account Titles Debit Credit
Beginning balance $43,000
Cash 210,000
Factory overhead $15,000
Goods in Process 186,000
Ending balance $52,000
Goods in process
Account Titles Debit Credit
Beginning balance 10,200
Raw materials 186,000
Factory payroll 265,000
Factory overhead 185,500
Finished Goods Inventory 625,400
Ending balance 21,300
Factory Payroll
Account Titles Debit Credit
Cash $345,000
Factory Overhead $80,000
Goods in Process 265,000
Finished goods
Account Titles Debit Credit
Beginning balance 63,000
Goods in Process 625,400
Cost of goods sold 652,800
Ending balance 35,600
Factory Overhead
Account Titles Debit Credit
Raw materials $15,000
Factory payroll 80,000
Cash 120,000
Goods in Process $185,500
Balance 29,500
Income Statement (Partial)
Sales $1,400,000
Cost of goods sold 652,800
Gross profit $747,200
Frank says to Mary, "If you wash every window in my house today, I'll pay you $200.1
don't care if you do it, but there is $200 in it for you if you do." Mary washes 12 of the 20
windows in Frank's house by 2:00 p.m. At this point, which of the following is true?
Group of answer choices
Mary is obligated to finish washing the windows.
There is no contract yet in this situation.
Frank can revoke his offer to pay Mary the $200 for washing the windows.
Mary has formed a contract by beginning to wash the windows.
Answer:
There is no contract yet in this situation.
Boxwood Company sells blankets for $40 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 03 Purchase 5 $14 10 Sale 3 17 Purchase 15 $15 20 Sale 5 23 Sale 2 30 Purchase 15 $19 Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method. a.$50 b.$80 c.$20 d.$110
Answer:
The company had no beginning inventory on May 1. May 3 Purchase 5 $20 10 Sale ... Boxwood Company sells blankets for $40 each. The following was taken
Explanation:
define futures contract.
Answer: an agreement traded on an organized exchange to buy or sell assets, especially commodities or shares, at a fixed price but to be delivered and paid for later.
Explanation:
During the harsh winter of 1972-73:__________
A. people in the northeast did not have enough oil to heat their homes, but people elsewhere in the U.S. had enough oil to heat their swimming pools.
B. oil was diverted away from low-value uses (like heating swimming pools) to high-value uses (like heating homes in the northeast).
C. there was not enough oil for heating homes in the northeast or for heating swimming pools elsewhere in the U.S.
D. there was enough oil for heating homes in the northeast and for heating swimming pools elsewhere in the U.S.
Answer: A. people in the northeast did not have enough oil to heat their homes, but people elsewhere in the U.S. had enough oil to heat their swimming pools.
Explanation:
1973 saw the beginning of the energy crises after the Arab world placed an oil embargo on the U.S. As a result, gasoline and oil products became very expensive in the U.S. and had to be appropriately used.
The North-East did not suffer as much during this time New York receiving some of the lowest amounts of snow in modern history so less oil went to the north east for heating as it was ruled not to be cold enough.
A large country can gain from imposing a tariff on the import of a good if: Group of answer choices the part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market the tariff is high enough that the country becomes an exporter of the product. the tariff drives the quantity imported to zero. the tariff revenue collected by the domestic government is less than the losses caused by the production and consumption effects of the tariff.
Answer:
part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market
Explanation:
Tariff is a form of tax levied on imported goods. Tariffs increases the price of import. This would discourage foreign exporters because there would be less demand for their good.
Tariffs would reduce the consumption of foreign goods and this would lead to negative welfare effect on consumers. This negative welfare effect can be mitigated if the tariff paid is greater than the welfare losses
Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Laptops $1,000 $500 40% Tablets 600 300 60% The estimated fixed costs for the current year are $3,192,000. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year.
Answer:
Break-even point (units)= 8,400
Explanation:
Giving the following information:
Laptops $1,000 $500 40%
Tablets 600 300 60%
Fixed costs= $3,192,000
To calculate the break-even point for the whole company, we need to use the following formula:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (0.4*1.000 + 0.6*600) - (0.4*500 + 0.6*300)
Weighted average contribution margin= $380
Break-even point (units)= 3,192,000 / 380
Break-even point (units)= 8,400
The main reason the usefulness of Pareto optimal policies is limited as a policy guide is that: Question 2 options: it is too subjective. it is only objective, and good policy also requires a subjective element. real-world changes in which no one is harmed are rare or nonexistent. real-world changes in which more people are helped than are harmed are rare.
Answer:
real-world changes in which no one is harmed are rare or nonexistent.
Explanation:
Pareto optimality, also known as Pareto efficiency was named after Vilfredo Pareto and it refers to an economic system in which no additional changes can make a person better off without making at least one person worse off.
This ultimately implies that, when there's a maximum level of efficiency in the allocation of goods and resources in an economy and no further changes can be made without making at least one person worse off. Thus, it can only exist in theory but not in reality.
The main reason the usefulness of Pareto optimal policies is limited as a policy guide is that real-world changes in which no one is harmed are rare or nonexistent because the goods and resources cannot be reallocated.
Suppose the town of Boone has a total population of 70,000 people. Of those, 65,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.
Instructions: In part a, round your answer to 1 decimal place. In part b, enter your answer as a whole number.
a. What is Boone’s unemployment rate?
percent
b. Suppose there are 1,000 people who are unemployed as a result of frictional unemployment and 2,000 people who are unemployed as a result of cyclical unemployment. How many people are unemployed as a result of structural unemployment?
Answer:
A. 5.8%
B. 1,000
Explanation:
Calculation for Boone’s unemployment rate
Unemployment rate=[(70,000-1,000)-65,000]/(70,000-1,000)*100
Unemployment rate=(69,000-65,000)/69,000*100
Unemployment rate=4,000/69,000*100
Unemployment rate=5.8%
Therefore Boone’s unemployment rate will be 5.8%
B. Calculation for How many people are unemployed as a result of structural unemployment
Unemployed people=[(70,000-1,000)-65,000]-1,000-2,000
Unemployed people= 4,000 - 1,000 - 2,000
Unemployed people=1,000
Therefore the numbers of people that are are unemployed as a result of structural unemployment will be 1,000
The following data are for the two products produced by Tadros Company. Product A Product BDirect materials$20 per unit $30 per unit Direct labor hours 0.5 DLH per unit 1.5 DLH per unit Machine hours 0.4 MH per unit 1.2 MH per unit Batches 200 batches 360 batches Volume 16,000 units 3,600 units Engineering modifications 20 modifications 80 modifications Number of customers 800 customers 720 customers Market price$55 per unit $220 per unitThe company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Cost Driver Indirect manufacturing Engineering support$53,600 Engineering modifications Electricity 53,600 Machine hoursSetup costs 160,800 Batches Nonmanufacturing Customer service 121,600 Number of customers
1.1 Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours.
1.2 What is the gross profit per unit?
2.1 How much gross profit is generated by each customer of Product A and Product B using the plantwide overhead rate?
2.2 What is the cost of providing customer service to each customer?
Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate?
3.1 Determine the manufacturing cost per unit of each product line using ABC.
3.2 What is the gross profit per unit?
4.1 How much gross profit is generated by each customer of Product A and Product B using ABC?
4.2 Is the gross profit adequate for each customer of Product A and B using ABC?
5. Which method of product costing gives better information to managers of this company?
a. Plantwide overhead rate method
b. Departmental overhead rate method
c. Activity-based costing method
Answer:
Tadros Company
Plantwide method:
Product A Product B
1.1. Manufacturing cost per unit $40 $85
1.2 Gross profit per unit $15 $135
2.1 Gross profit per customer $300 $675
2.2 Customer of customer to each customer is:
= $80
The gross profit is adequate for each customer.
ABC method:
Product A Product B
3.1The Manufacturing cost per unit $36.26 $101.61
3.2 Gross profit per unit $18.74 $118.39
4.1 Gross profit per customer $374.85 $591.94
4.2 Cost of customer service to each customer is $80.
The Gross profit per customer is adequate.
5. The ABC product costing method gives better information to managers of Tadros Company.
c. Activity-based costing method
Explanation:
a) Data and Calculations:
Product A Product B
Direct materials $20 per unit $30 per unit
Direct labor hours 0.5 DLH/unit 1.5 DLH per unit
Total direct labor hours 8,000 (0.5*16,000) 5,400 (1.5*3,600)
Direct labor costs $160,000 ($20*8,000) $108,000 ($20*5,400)
Machine hours 0.4 MH per unit 1.2 MH per unit
Batches 200 batches 360 batches
Volume 16,000 units 3,600 units
Engineering modifications 20 modifications 80 modifications
Number of customers 800 customers 720 customers
Market price $55 per unit $220 per unit
Direct labor rate = $20 per direct labor hour (DLH).
Overhead rates based:
a. Plantwide Method:
Total manufacturing overhead costs/Total direct labor hours
$268,000/13,400 = $20
Cost of production:
Product A Product B
Direct materials per unit $320,000 $90,000
Direct labor hours per unit DLH 160,000 108,000
Overhead costs 160,000 108,000
Total production costs $640,000 $306,000
Volume 16,000 units 3,600 units
Manufacturing cost per unit $40 $85
Income Statement:
Product A Product B
Sales Revenue ($55 and $220) $880,000 $792,000
Total production costs 640,000 306,000
Gross profit $240,000 $486,000
Volume 16,000 units 3,600 units
Gross profit per unit $15 $135
Gross profit $240,000 $486,000
Customers 800 customers 720 customers
Gross profit per customer $300 $675
b. Departmental Method:
c. ABC Method:
Additional information follows:
Cost Pools Overhead Costs Driver
Indirect manufacturing
Engineering support $ 53,600 Engineering modifications
Electricity 53,600 Machine hours
Setup costs 160,800 Batches
Nonmanufacturing
Customer service 121,600 Number of customers
Overhead rate using ABC:
Cost Pools Overhead Costs Driver Rates
Indirect manufacturing
Engineering support $ 53,600 100 modifications = $536
Electricity 53,600 10,720 Machine hours $5
Setup costs 160,800 560 Batches $287
Customer service 136,800 1,520 customers $90
Cost of production:
Product A Product B
Direct materials per unit $320,000 $90,000
Direct labor hours per unit DLH 160,000 108,000
Overhead costs:
Engineering support 10,720 42,880
Electricity 32,000 21,600
Setup costs 57,400 103,320
Total production costs $580,120 $365,800
Volume 16,000 units 3,600 units
Manufacturing cost per unit $36.26 $101.61
Income Statement:
Product A Product B
Sales Revenue ($55 and $220) $880,000 $792,000
Total production costs 580,120 365,800
Gross profit $299,880 $426,200
Volume 16,000 units 3,600 units
Gross profit per unit $18.74 $118.39
Gross profit $299,880 $426,200
Customers 800 customers 720 customers
Gross profit per customer $374.85 $591.94
Total production costs $580,120 $365,800
Customers 800 customers 720 customers
Cost per customer $725.15 $508.06
Customer service costs
Customer service $121,600/1,520 = $80
the model used to describe the flow of economics activity in the free market is a
Answer:
Flow chart or a flow model. I don't remember which it was
Logan is working on a game development team that will be in charge of creating
storyboards and documenting the game plot, ultimately creating the design
documents needed to make the game. What specific team is Logan working on?
1)production team
2)pre-production team
3)post-production team
4)art design team
University Printing Services offer a program of reproducing class notes for participating professors teaching large classes with an enrollment uniformly distributed between 200 and 300 students. Professor Pulat has subscribed to this program. A copy of her notes costs $8 to produce and it sells for $12. The students purchase their books at the start of the semester. Any unsold notes are shredded for recycling as she makes changes to her notes every semester. In the meantime, when all copies are sold, no additional copies are printed. If the University Printing Services wants to maximize its revenues, how many copies should it print
Answer:
233 copies
Explanation:
Cost of shortage (Cs)= Revenue per unit - Cost per unit
Cost of shortage (Cs) = $12 - $8
Cost of shortage (Cs) = $4
Cost of excess (Ce) = Original cost per unit - Salvage value per unit
Cost of excess (Ce) = $8 - $0
Cost of excess (Ce) = $8
Service Level (SL) = Cs/(Cs+Ce)
Service Level (SL) = $4 / ($4+$8)
Service Level (SL) = $4/$12
Service Level (SL) = 0.33
Optimum Level = Minimum student + SL*(Maximum student - Minimum student)
Optimum Level = 200 + 0.33*(300 - 200)
Optimum Level = 200 + 33
Optimum Level = 233 copies
An appliance store finding that the contribution margins on appliances are not adequate to achieve performance targets might introduce an extended warranty plan to provide an additional source of contribution margin. A company selling generators may institute an every-six-month service plan that promises both preferential service in a power outage to the customer and considerable contribution margin to the seller to augment the margin associated with the sale of the generator. And, of course, lemonade stand operators might decide to sell pretzels in addition to lemonade. Assume the following base case (per questions A1 and A2): revenue is $100 per unit, variable costs are $20 per unit, and total fixed costs are $40,000. A complementary product/service is being introduced. The product being introduced will use existing resources; however, some additional new costs will be incurred. This product/service will generate additional revenue of $60 per unit, additional variable costs of $16 per unit, and additional fixed costs of $16,240. For every 10,000 original units, the enterprise expects to sell 2,000 complementary units. How many complementary units does the company need to sell to break even
Answer:
Break-even point in units= 369 units
Explanation:
Giving the following information:
Selling price per unit= $60
Unitary varaible cost= $16
Fixed costs= $16,240
To calculate the break-even point in units for the complementary product, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 16,240 / (60 - 16)
Break-even point in units= 369 units
PLEASE HELP WITH THIS
Answer:
1: B
2: A
3: D
4:C
5: C
6: C
7: D
8: Q
Explanation:
I'm leaning this rn
On January 1, 2018, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of $120,000. Excess cost attributable to inventory is written off in 2018. During 2018, Lite Company earned $200,000 and declared a dividend of $40,000 for the year.
The fair value of the Lite stock investment at the end of 2018 was $210,000. Which of the following amounts are correct assuming that Como elected to use the fair value option to account for the Lite investment?
a. $28,000 $210,000
b. $81,000 $263,000
c. $91,000 $273,000
d. $18,000 $210,000
Answer: a. $28,000 $210,000
Explanation:
First column is income and second is Carrying value.
Carrying value is the fair value at year end = $210,000
Income = Dividend received + fair value adjustment
Fair value adjustment = Fair value - cost of shares
= 210,000 - 200,000
= $10,000
Dividend = 45% * 40,000
= $18,000
Income = 18,000 + 10,000
= $28,000
A trial balance consists of:Multiple ChoiceA two-column financial statement intended for distribution to interested parties outside the business.A two-column schedule showing the totals of all debits and of all credits made in journal entries.A two-column schedule listing names and balances of all ledger accounts.A two-column schedule of all debit and credit entries posted to ledger accounts.
Answer:
A two-column schedule listing names and balances of all ledger accounts.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Balance sheet: it contains financial information about assets, liability, and equity.
2. Cash flow statement: it contains financial information about operating, financial and investing activities.
3. Income statement: it contains financial information about the income and expenses of an organization.
4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
A trial balance consists of a two-column schedule listing names and balances of all ledger accounts.
One example of a job benefit is:
a) Salary
b) Uniforms and supplies
c) Health insurance
d) Flexible hours
Answer:
c
explanation:
Answer:
it would be C) health insurance.
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $40,990 per month plus $2,789 per flight plus $18 per passenger. The company expected its activity in August to be 96 flights and 308 passengers, but the actual activity was 99 flights and 311 passengers. The actual cost for plane operating costs in August was $262,690. The plane operating costs in the planning budget for August would be closest to:
Answer:
$314,278
Explanation:
Cost in flexible budget = $40,990 + ($2,789*96) + ($18*308)
Cost in flexible budget = $40,990 + $267,744 + $5,544
Cost in flexible budget = $314,278
The operating costs in the planning budget for August would be
Sales of Granite City Products Inc. have been on a steady decline for the last 12 months. A market research study conducted revealed that the product of Granite City Products Inc. can be sold only for $480 as opposed to the current market price charged of $580 per unit. Granite City Products Inc. has decided to revise its sales price to $480. The annual sales target volume of the product after price revision is 280 units. Granite City Products Inc. wants to earn 30% on its sales amount. What is the target cost per unit
Answer:
$336.00
Explanation:
Calculation for the target cost per unit
First step is to calculate the The target sales revenues
The target sales revenues =($480 × 280)
The target sales revenues = $134,400
Second step is to calculate the The target operating income
The target operating income=($134,400 × 30%)
The target operating income = $40,320
Third step is to calculate the The target cost
The target cost=($134,400 –$40,320)
The target cost = $94,080
Now let calculate the The target cost per unit
The target cost per unit = $94,080 / 280
The target cost per unit= $336.00
Therefore The target cost per unit is $336.00
Difine the following
1 operetional cost
2 social cost and
3 complementary goods
Answer:
1. expenses related to the operation of a business
2.sum of the private costs resulting from a transaction
3. complementary good is a good whose appeal increases with the popularity of its complement.
roles performed by
managers
Answer:
honesty, truth, trustworthy, kind, believe, self-respect
Explanation:
Al of these are the quality of a manager
Answer:
Managing the business and making sure that everything works smoothly and efficiently.
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. The bond rate is 6.6% per year payable semi-annually. You plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 3% per year compounded semi-annually, what will be your minimum selling price for the bond?
Answer:
Minimum selling price for the bond = $11350.38
Explanation:
Given - You have just purchased a municipal bond with a $10,000 par
value for $9,500. You purchased it immediately after the previous
owner received a semi-annual interest payment. The bond rate is
6.6% per year payable semi-annually. You plan to hold the bond for
4 years, selling the bond immediately after you receive the interest
payment. If your desired nominal yield is 3% per year compounded
semi-annually.
To find - What will be your minimum selling price for the bond?
Proof -
Formula for Bond value is -
Bond value = [tex]\frac{Coupon Amount}{( 1+ Interest rate)^{1} } + \frac{Coupon Amount}{( 1+ Interest rate)^{2} } + \frac{Coupon Amount}{( 1+ Interest rate)^{3} } + .....\frac{Coupon Amount}{( 1+ Interest rate)^{n} }[/tex]
As given,
Coupon Rate = 6.6%
⇒Coupon Rate for semi-annual = 3.3%
and hereby time period becomes double i.e 8 years.
Now,
Interest rate = 3%
For semi-annual , interest = 1.5%
Now,
Coupon amount = 10,000×3.3% = 330
Now,
Bond value = 330 ×PVIF(1.5% , 8) + 10,000×IVAF(1.5%, 8)
= 330×7.486 + 10,000×0.888
= 11350.38
∴ we get
Minimum selling price for the bond = $11350.38
define investment bank.
Answer:
Investment banks are middlemen between those with money and those with ideas who need funding. They give money a productive purpose by channelling into projects.. it's a financial service of company or corporate division that engages in advisory-based financial transactions on behalf of individuals, corporations and governments
Two methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $740,000, an AOC of $190,000 per year, and $135,000 salvage value after its 3-year life. Method 2 will cost $870,000 with an AOC of $135,000 and a $170,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 37% higher after three years than it is after five years. If the MARR is 14% per year, which method should the company select
Answer:
method 2 should be selected
Explanation:
The computation is shown below:
For Method 1
Value = $740,000 + $190,000 ÷ 1.14 + $190,000 ÷ 1.14^2 + $190,000 ÷ 1.14^3 - $135,000 ÷ 1.14^3
= $1,089,988.93
For Method 2
Value = $870,000 + $135,000 ÷ 1.14 + $135,000 ÷ 1.14^2 + $135,000 ÷ 1.14^3 - $170,000 × 1.37 ÷ 1.14^3
= $1,026,219.458
As we can see that in the method 2 there is a less cost as compared with method 1
So, method 2 should be selected