Answer:
Royal Lawncare Company
Income Statement
Total Weedban Greengrow
Sales revenue $1,086,000 $364,500 $721,500
Variable costs $368,350 $109,350 $259,000
Contribution $717,650 $255,150 $462,500
margin
Traceable fixed $164,000 $131,00 $33,000
costs
Segment margin $553,650 $124,150 $429,500
Common fixed $101,000
costs
Net income $452,650
explain the procedure of inducting a new technology on a given business
The correct answer to this open question is the following.
Although the question does not provide a specific reference, we can say the following.
A general procedure of inducting a new technology on a given business would be like this.
First, really search for the technological necessities in your company. Take people's opinions. Once you have identified your priority, proceed informing every single one of the employees the reason and purpose of this new piece of technology or software. Remember that the benefit of it must be for all the areas in some way. Then give the specifics reasons for how this new technology will help employees' work. This novelty should be seen as an advantage, not an excuse for delaying work under the argument that "it is complicated."
Provide the proper training so everybody can get familiar with the technology.
Give the proper time so everybody is on the same page.
Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $10,000 each year for tuition, $2,500 each year for textbooks, and $12,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year.
Assume that if you decided not to go to college, your parents would not let you live at home.
What is your opportunity cost for four years of college? $_______
Answer:
$130,000
Explanation:
Calculation for the opportunity cost for four years of college
The first step is to calculate for the cost of education per year
Using this formula
Cost of education per year =Tuition+Text book +Room and board
Let plug in the formula
Cost of education per year =$10,000+$2,500+$12,000
=$24,500
Second step is to calculate the return in a situation were we decided not to go to college
$20,000-$12,000=$8,000
The last step is to calculate for the opportunity cost for 4 years of college:
Using this formula
Opportunity cost =Cost of education per year+ Return * Numbers of year
Where,
Cost of education per year=$24,500
Return =$8,000
Numbers of years =4
Let plug in the Formula
Opportunity cost =($24,500+$8,000)*4
Opportunity cost =$32,500*4
Opportunity cost =$130,000
Therefore the opportunity cost for four years of college will be $130,000
If you deposit $1000 in a bank account that pays 12% interest compounded annually, how much would be in your account after 6 years?
Answer:
The amount in the account after 6 years is $ 1,973.82
Explanation:
The future value at year 6 can be computed using the future value formula below:
FV=PV*(1+r)^n
PV is the amount deposited which is $1000
r is the interest rate of 12%
n is the number of years which is 6
FV=$1000*(1+12%)^6
FV=$1000*1.973822685
FV=$ 1,973.82
A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials. true or false
A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials. This statement was correct. Thus, option (a) is correct.
What is direct materials?The term direct materials refers to the manufactured product components such as integrated circuits, screen, camera modules and the other components. It was the used in the cost accounting. The material are they directly manufacture the goods and the services.
The concepts are the actual costs related to materials as result on the more standards outcomes is called the unfavorable direct materials. The favorable outcome of the fewer standards outcomes. The concept is the direct material price is fewer than the standard direct material price.
As a result, the significance of the direct materials are the aforementioned. Therefore, option (a) is correct.
Learn more about on direct materials, here:
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Your company has used competitive bidding to select a supplier for janitorial services. Three suppliers returned acceptable bids within the allotted time frame.
Category Weight Supplier A Rating Supplier B Rating Supplier C Rating
Quality systems 40% 2 3 2
Financial stability 29% 2 2 3
Management experience 20% 4 2 3
Price 11% 1 4 4
All scores on a five-point scale with 1poor, 5 excellent.
a. Calculate the total weighted score for each supplier. (Round your answers to 2 decimal places.)
Total Weighted Score
Supplier A
Supplier B
Supplier C
b. Based on these ratings from the supplier assessment, which supplier appears to be the best?
Supplier A
Supplier B
Supplier C
Answer:
Competitive Bidding based on Weighted Score
a. Calculation of the total weighted score for each supplier:
Supplier A :
Quality systems 40% x 2/5 = 16%
Financial stability 29% x 2/5 = 11.6%
Management experience 20% x 4/5 = 16%
Price 11% 1/5 = 2.2%
Total weighted score = 45.8%
Supplier B :
Quality systems 40% x 3/5 = 24%
Financial stability 29% x 2/5 = 11.6%
Management experience 20% x 2/5 = 8%
Price 11% x 4/5 = 8.8%
Total weighted score = 52.4%
Supplier C
Quality systems 40% x 2 /5 = 16%
Financial stability 29% x 3 /5 = 17.4%
Management experience 20% x 3 /5 = 12%
Price 11% x 4/5 = 8.8%
Total weighted score = 54.2%
b. Best Supplier:
Supplier C
Explanation:
a) Data and Calculations:
Category Weight Supplier A Supplier B Supplier C
Ranking Ranking Ranking
Quality systems 40% 2 3 2
Financial stability 29% 2 2 3
Management experience 20% 4 2 3
Price 11% 1 4 4
What is the shortcut for the Find/Replace command screen?
O F5
O Ctrl + ?
O Ctrl + F
O F4
Answer it i Crtl+F
Explanation:
Answer:
is
3. Ctrl + F
Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $23,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following:
Expected annual sales of new product $1,910,000
Expected annual costs of new product:
Direct materials 495,000
Direct labor 674,000
Overhead (excluding straight-line depreciation on new machine) 335,000
Selling and administrative expenses 159,000
Income taxes 38%
Required:
1. Compute straight-line depreciation for each year of this new machine's life.
2. Determine expected net income and net cash flow for each year of this machine's life.
3. Compute this machine's payback period, assuming cash flows occur evenly throughout each year.
4. Compute this machine's accounting rate of return, assuming income is earned evenly throughout each year.
5. Compute net present value, using a discount rate of 6% and that assuming that cash flows occur at each year-end.
Answer:
1. $116,000
2. Net Income = $81,220 and Net Cash flow = $247,000
3. The payback period is 1 year and 11 months .
4. 31.85 %
5. $368,881.09
Explanation:
Straight Line Method charges a fixed amount of depreciation expense over the life of an asset.
Depreciation Expense = (Cost - Residual Value) / Estimated Useful Life
= ($487,000 - $23,000) / 4
= $116,000
Net Income = Sales - Expenses
Sales $1,910,000
Less Expenses :
Direct materials ($495,000)
Direct labor ($674,000)
Overhead ( $335,000 + $116,000) ($451,000)
Selling and administrative expenses ($159,000)
Operating Income before tax $131,000
Income tax at 38% ($49,780)
Net Income $81,220
Net Cash Flow Calculation :
Operating Income before tax $131,000
Add Depreciation Expense $116,000
Net Cash flow $247,000
Payback period
Payback period = Year 1 + Year 2
$487,000 = $247,000 + $240,000 / $247,000 × 12
= 1 year, 11 months
Therefore, the payback period is 1 year and 11 months .
Accounting Rate of Return = Average Profits / Average Investment × 100
Where, Average Profits = Sum of Profits ÷ Number of Years
= ($81,220 × 4) ÷ 4
= $81,220
and Average Investment = (Initial Investment + Scrape Value) ÷ 2
= ($487,000 + $23,000) ÷ 2
= $255,000
Therefore, Accounting Rate of Return = $81,220 / $255,000 × 100
= 31.85 %
NET PRESENT VALUE (NPV)
Calculation of NPV of Project A using a Financial Calculator :
($487,000) Cfj
$247,000 Cfj
$247,000 Cfj
$247,000 Cfj
$247,000 Cfj
6 I/Yr
Shift NPV $368,881.09
Jason has many roles in life. He is an engineering student in college, he's the oldest son in his family, and he earns extra money as an editor for the local newspaper. In his spare time, Jason likes to hike nature trails. In an economic sense, in which role is Jason functioning as a worker? A. Walking on nature trails B. Oldest son in family C. Editor for the local newspaper D. College student
Answer:
C.
Explanation:
Being an editor for a local newspaper counts as an economic sense because that is the only part that takes part as a job and helps the economy.
Mike Flannery holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 C 100,000 1.00 D 75,000 1.20 Total $375,000 What is the portfolio's beta?
Answer: 1.174
Explanation:
Portfolio beta is the weighted-average of the beta coefficient of all the individual stocks in a portfolio.
As per given , we have
Stock Investment Weight (W) Beta(B) (W) x (B)
[tex]\text{(Investment}/\text{Total investnment})[/tex]
A 150,000 0.40 1.40 0.56
B 50,000 0.13 0.80 0.104
C 100,000 0.27 1.00 0.27
D 75,000 0.20 1.20 0.24
Total 375,000 1.00 1.174
Hence, the portfolio's beta = 1.174
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at auction for a price of $10,371,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,497,500.
What was his annual rate of return on this sculpture? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Annual rate of return %
Answer:
-4.25%
Explanation:
purchase price in 1999 = $12,497,500
purchase price in 2003 = $10,371,500
annual rate of return = {[($10,371,500 - $12,497,500) / $12,497,500] / (2003 - 1999)} x 100 = (-0.170114 / 4) x 100 = -4.25%
the annual rate of return refers to how much money you win or loss with an investment during a year. In this case, the investor lost $2,126,000 in 4 years, which resulted in a total loss of 17.01% for the whole period.
Live Preview, found in the Font group, uses which method for seeing different font sizes without committing to them?
double-clicking the sizes on the Size drop-down list
pointing the mouse pointer to the sizes on the Size drop-down list
Oright-clicking the cell and clicking Preview Size on the drop-down list
clicking the sizes on the Size drop-down list
Answer:
pointing the mouse pointer to the sizes on the Size drop-down list
Live preview is the feature inbuilt in various new gadgets, Words, and Excel. It enables the user to preview the type of font, the color, the table style, the cell style, the number style, and many more without making the changes in the existing files.
The correct option is "pointing the mouse pointer to the sizes on the Size drop-down list".
The method or the way by which the font group can be live previewed is by simply pointing the mouse pointer over the toolbar where the font group is displayed under the Home tab. The pointer is simply dragged to various font sizes to see the live preview of each font style.
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InstaTrack is a newly emerging athletic shoe manufacturing company. After extensive market research, InstaTrack divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, which of the following most accurately reflects Insta Track's marketing strategy?
a) diversification
b) development
c) positioning
d) segmentation
Answer:
The answer is D
Explanation:
Market segmentation is the process of dividing a larger consumers or market into a smaller group(segments) based on some criteria.
One of the importances is that it allows a business to know what their customers' demands, or needs are.
Customers in the same segment respond similarly to market strategies.
intext:"The description of the relation between a company’s assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the"
Answer:
Accounting equation
Explanation:
The accounting equation is the basis of the double-entry accounting system.
The accounting equation ensures that each entry made on the debit side of the balance sheet should have a corresponding entry on the credit side. This ensures that the balance sheet remains balanced
Pecan Corporation’s controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for the year ended December 31, 20X4. Pecan owns 60 percent of Sandy Corporation’s stock, which it acquired at underlying book value on May 7, 20X1. At that date, the fair value of the noncontrolling interest was equal to 40 percent of Sandy Corporation’s book value. You have been provided the following information:
Consolidated net income for 20X4 was $271,000.
Sandy reported net income of $70,000 for 20X4.
Pecan paid dividends of $25,000 in 20X4.
Sandy paid dividends of $15,000 in 20X4.
Pecan issued common stock on April 7, 20X4, for a total of $150,000.
Consolidated wages payable increased by $7,000 in 20X4.
Consolidated depreciation expense for the year was $21,000.
Consolidated accounts receivable decreased by $32,000 in 20X4.
Bonds payable of Pecan with a book value of $204,000 were retired for $200,000 on December 31, 20X4.
Consolidated amortization expense on patents was $13,000 for 20X4.
Pecan sold land that it had purchased for $142,000 to a nonaffiliate for $134,000 on June 10, 20X4.
Consolidated accounts payable decreased by $12,000 during 20X4.
Total purchases of equipment by Pecan and Sandy during 20X4 were $295,000.
Consolidated inventory increased by $16,000 during 20X4.
There were no intercompany transfers between Pecan and Sandy in 20X4 or prior years except for Sandy’s payment of dividends. Pecan uses the indirect method in preparing its cash flow statement.
Pecan uses the indirect method in preparing its cash flow statement.
Required:
A. What amount of dividends was paid to the noncontrolling interest during 20X4?
B. What amount will be reported as net cash provided by operating activities for 20X4?
C. What amount will be reported as net cash used in investing activities for 20X4?
D. What amount will be reported as net cash used in financing activities for 20X4?
E. What was the change in cash balance for the consolidated entity for 20X4?
You need to have $32,000 in 14 years. You can earn an annual interest rate of 3 percent for the first 4 years, 3.6 percent for the next 3 years, and 4.3 percent for the final 7 years. How much do you have to deposit today
Answer:
PV= 19,042.84
Explanation:
Giving the following information:
You need to have $32,000 in 14 years. You can earn an annual interest rate of 3 percent for the first 4 years, 3.6 percent for the next 3 years, and 4.3 percent for the final 7 years.
To calculate the initial deposit, we need to use the following formula for each interest rate:
PV= FV/(1+i)^n
Last 7 years:
PV= 32,000/(1.043^7)
PV= $23,831.96
Year 4 - 7:
PV= 23,831.96/1.036^(3)
PV= 21,432.88
Finally, for year 0 to 4:
PV= 21,432.88/ 1.03^(4)
PV= 19,042.84
The may be pay life insurance co. is trying to sell you an investment policy that will pay you and your heirs $33000 per year forever. Suppose a sales associate told you the policy costs $478,000. At what interest rate would this be a fair deal?
Answer:
6.9%
Explanation:
The May be life insurance corporation is trying to sell an investment policy
This policy will pay $33,000 per year forever
A sales associate mention that the policy would cost $478,000
Therefore, the interest rate at which it will be a fair deal can be calculated as follows
Interest rate= Annual inflows/present value
= 33,000/478,000
= 0.0690×100
= 6.9%
Hence the interest rate at which it would be a fair deal is 6.9%
During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Sales $2,150,000 Manufacturing costs: Direct materials $960,000 Direct labor 420,000 Variable manufacturing cost 156,000 Fixed manufacturing cost 288,000 1,824,000 Selling and administrative expenses: Variable $204,000 Fixed 96,000 300,000 Required: 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 $ Cost of goods sold: $ $ $ 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31, 2016 $ Variable cost of goods sold: $ $ $ Fixed costs: $ $ 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2). The income from operations reported under costing exceeds the income from operations reported under costing by the difference between the two, due to manufacturing costs that are deferred to a future month under costing.
Answer:
1) YoSan Inc.
Income Statement
For the month ended July 31, 202x
Sales revenue $2,150,000
- Cost of goods sold $1,520,000
Gross profit $630,000
- S & A expenses $300,000
Operating profit $330,000
2) YoSan Inc.
Income Statement
For the month ended July 31, 202x
Sales revenue $2,150,000
- Variable costs:
Direct materials $800,000 Direct labor $350,000 Variable manufacturing cost $130,000Variable S & A expenses $170,000 $1,450,000Contribution margin $700,000
- Period costs:
Fixed manufacturing cost $288,000Fixed S & A expenses $96,000 $384,000Operating profit $316,000
3) When you prepare a variable costing income statement, the ending inventory of finished goods and WIP only includes variables costs. All fixed or period expenses are included during the period that they occur and are not carried over to the next period. I.e. the ending inventory (400 units) for next month will be lower under variable costing.
A cement manufacturer has supplied the following data: Tons of cement produced and sold 320,000 Sales revenue $ 1,024,000 Variable manufacturing expense $ 241,000 Fixed manufacturing expense $ 340,000 Variable selling and administrative expense $ 199,320 Fixed selling and administrative expense $ 101,000 Net operating income $ 142,680 The company's contribution margin ratio is closest to:
Answer:
contribution margin ratio= 0.57
Explanation:
Giving the following information:
Sales revenue $ 1,024,000
Total variable cost:
Variable manufacturing expense $ 241,000
Variable selling and administrative expense $ 199,320
Total= $440,320
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - total variable cost) / sales
contribution margin ratio= (1,024,000 - 440,320) / 1,024,000
contribution margin ratio= 0.57
How did the corporate culture of Enron contribute to its bankruptcy? Did Enron’s bankers, auditors, and attorneys contribute to Enron’s demise? If so, how? What role did the company’s chief financial officer play in creating the problems that led to Enron’s financial problems?
Answer:
Corporate Culture Of Enron:
The culture at Enron was not promoting integrity and core values of business ethics. The corporate culture of the company has been supporting unethical behavior of employees prevailing in the workplace. There have been no importance given to business ethics. The company punished the employees who appeared to be weak resource for the organization and department were forced to fire low ranking employees creating Job security issues for them. The employees then engaged in such illegal activities to keep themselves at the top rank even at the cost of company. There was also miscommunication in the organization about its performance to the stakeholders.
Explanation:
Contribution of Banker's, Auditors and Attorneys:
Auditors were responsible for ensuring accuracy of financial statements. Anderson deceived many investors who relied on companies financial statements. Anderson certified financial statements of the company without questioning them about the relevancy and accuracy. Anderson was found guilty of obstructing justice by destroying Enron's related auditing documents. Attorneys helped to mold some of company's special purpose partnership. These deals lead to demise of the company. Merrill Lynch replaced research analyst after his coverage of the Enron company which dissatisfied the company executives. Merrill Lynch was subject to threats by Enron that it would loose $750 million from stock offerings.
Role Of CEO:
The CEO of the company contributed to the bankruptcy of the company by involving in unconsolidated partnerships and special purpose entities. He was involved in exploiting the market by using techniques that rapidly exploit deregulating markets. He tripled the staff of Enron for demeaning the Enron's Credit Rating.
Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 40% Zebra shareholder throughout the year.
Operating income (sales) $100,000
Cost of goods sold (40,000)
Depreciation expense (MACRS) (10,000)
Administrative expenses (5,000)
§1231 gain 21,000
Depreciation recapture income $25,000
Short-term capital loss from stock sale (6,000)
Long-term capital loss from stock sale (4,000)
Long-term capital gain from stock sale 15,000
Charitable contributions (4,500)
a. Calculate Sammy’s share of Zebra’s nonseparately computed income or loss.
b. Calculate Sammy’s share of any Zebra long-term capital gain.
Answer:
a. $70,000
b. $6,000
Explanation:
Non separately income = Operating income +Depreciation recapture income -COGS -ADM expense -depreciation
= $100,000 + $25,000 - $40,000 - $5,000 - $10,000
= $70,000
a. Sammy share of Zebra’s non-separately computed income or loss
= $70,000 * 0.40
= $28,000
b. Sammy share in Long term capital gain
= $15,000 * 0.40
= $6,000
What is capital budgeting? a. The process of managing cash flow. b. The analysis of real asset investment opportunities. c. The process of managing current assets. d. None of the above.
Answer:
b. The analysis of real asset investment opportunities.
Explanation:
Capital Budgeting is the Process of appraising various alternatives of investments.
It uses techniques such as the Net Present Value methods, Internal Rate of Return and Payback Period methods to analyze the best alternatives of investments.
Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the Weaving Department. The department has a full capacity of 75,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of November was as follows:
Variable overhead $450,000
Fixed overhead 262,500
Total $712,500
The actual factory overhead was $725,000 for November. The actual fixed factory overhead was as budgeted. During November, the Weaving Department had standard hours at actual production volume of 64,500 hours.
Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.
a. Variable factory overhead controllable variance: $
b. Fixed factory overhead volume variance: $
Answer:
a) $12,500 unfavorable
b) 0
Explanation:
variable factory overhead controllable variance = actual variable overhead expense - (standard variable overhead per unit x standard number of units)
actual variable overhead expense = $725,000
standard variable overhead per unit = $712,500 / 60,000 = $11.875
standard number of units = 60,000
variable factory overhead controllable variance = $725,000 - $712,500 = $12,500 unfavorable
Controllable factory overhead is not related to any changes in the actual volume or quantity produced.
Fixed factory overhead volume variance = actual fixed overhead - standard fixed overhead = $262,500 - $262,500 = 0
Fixed overhead was exactly the same as the standard or budgeted overhead.
Larned Corporation recorded the following transactions for the just completed month.
1. $89,000 in raw materials were purchased on account.
2. $87,000 in raw materials were used in production.
3. Of this amount, $76,000 was for direct materials and the remainder was for indirect materials.
4. Total labor wages of $128,500 were paid in cash. Of this amount, $103,000 was for direct labor and the remainder was for indirect labor.
5. Depreciation of $190,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer with its Explanation:
Part 1: $89,000 in raw materials were purchased on account.
The purchase of raw material inventory on account is treated as increase in raw material inventory and accounts payables. The journal entry would be as under:
Dr Raw Material Inventory $89,000
Cr Accounts Payables $89,000
Part 2: $87,000 in raw materials were used in production. Of this amount, $76,000 was for direct materials and the remainder was for indirect materials.
The entry would be increase in work in progress by $76,000 & Manufacturing overhead by $11,000 and would decrease the raw material inventory with $87,000.
The journal entry would be as under:
Dr Work In Progress $76,000
Dr Manufacturing Overhead $11,000
Cr Raw Material Inventory $87,000
Part 3: Total labor wages of $128,500 were paid in cash. Of this amount, $103,000 was for direct labor and the remainder was for indirect labor.
The direct cost are allocated to the work in progress and indirect costs are allocated to manufacturing overheads.
The journal entry would be as under:
Dr Work In Progress $128,500
Dr Manufacturing Overhead $103,000
Cr Cash Account $231,500
Part 4: Depreciation of $190,000 was incurred on factory equipment.
The depreciation of the factory equipment is an indirect cost and all the indirect costs are charged to manufacturing overhead.
The journal entry would be as under:
Dr Manufacturing Overhead $190,000
Cr Cash Account $190,000
Classify each statement about types of market structure as either true or false. Monopolies produce differentiated products.
Answer: False
Explanation:
Monopolies do not produce differentiated products, they produce unique products. This is because they are the only supplier of the goods in question and as such do not need to differentiate their goods to have a sales advantage.
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $500 each. The company has a 25% income tax rate.
Variable production costs
Plastic for casing $17,000
Wages of assembly workers 82,000
Drum stands 26,000
Variable selling costs
Sales commissions 15,000
Fixed manufacturing costs
Taxes on factory 5,000
Factory maintenance 10,000
Factory machinery depreciation 40,000
Fixed selling and administrative costs
Lease of equipment for sales staff 10,000
Accounting staff salaries 35,000
Administrative management salaries125,000
Compute its contribution margin per unit and its contribution margin ratio. Prepare a contribution margin income statement. Interpret the contribution margin and contrubition margin ratio.
Answer and Explanation:
The computation of contribution margin per unit and its contribution margin ratio and the Preparation of contribution margin income statement is shown below:-
Particulars Amount
Sales Revenue $500,000
(1,000 × 500)
Variable Costs
Plastic for casing $17,000
Wages of assembly workers $82,000
Drum stands $26,000
Sales commission $15,000
Total Variable costs $140,000
Contribution $360,000
($500,000 - $140,000)
Fixed Costs
Taxes on factory $5,000
Factory maintenance $10,000
Factory machinery depreciation $40,000
Lease of equipment for
sales staff $10,000
Accounting staff salaries $35,000
Administrative management
salaries $125,000
Total fixed Cost $225,000
Income $135,000
($360,000 - $225,000)
Taxes at 25% $33,750
Net Income $101,250
Contribution Margin per unit $360
($360,000 ÷ 1,000)
CM Ratio 0.72
(360,000 ÷ 500,00)
Answer and Explanation:
The computation of contribution margin per unit and its contribution margin ratio and the Preparation of contribution margin income statement is shown below:-
Particulars Amount
Sales Revenue $500,000
(1,000 × 500)
Variable Costs
Plastic for casing $17,000
Wages of assembly workers $82,000
Drum stands $26,000
Sales commission $15,000
Total Variable costs $140,000
Contribution $360,000
($500,000 - $140,000)
Fixed Costs
Taxes on factory $5,000
Factory maintenance $10,000
Factory machinery depreciation $40,000
Lease of equipment for
sales staff $10,000
Accounting staff salaries $35,000
Administrative management
salaries $125,000
Total fixed Cost $225,000
Income $135,000
($360,000 - $225,000)
Taxes at 25% $33,750
Net Income $101,250
Contribution Margin per unit $360
($360,000 ÷ 1,000)
CM Ratio 0.72
(360,000 ÷ 500,00)
We simply applied the above format
Bundy Car Mechanic Inc. uses a job-order costing system. The company applies all of its overhead costs to jobs using a predetermined overhead rate based on direct labor-hours. At the beginning of the year, it made the following estimates:
Direct labor-hours required to support estimated output 46,000
Fixed overhead cost $805,000
Variable overhead cost per direct labor-hour $1.00
During the year, a customer brought in her car for repairs. The following information was available with respect to the car's repairs:
Direct materials $719
Direct labor cost $177
Direct labor—hours used 7
If Bundy sets its selling prices by adding a markup percentage of 30% of its total job cost, then how much would Bundy have charged this customer for her car's repairs?
Answer:
Selling price= $1,336
Explanation:
Giving the following information:
Direct labor-hours required to support estimated output 46,000
Fixed overhead cost $805,000
Variable overhead cost per direct labor-hour $1.00
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (805,000/46,000) + 1
Predetermined manufacturing overhead rate= $18.5 per direct labor hour
Now, we can calculate the total cost:
Direct materials $719
Direct labor cost $177
Direct labor—hours used 7
Total cost= 719 + 177 + 18.5*7= $1,027.7
Finally, the selling price:
Selling price= 1,027.7*1.3= $1,336
The company estimates future uncollectible accounts. The company determines $14,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record bad debts at the end of January.
Answer:
Bad debt expense = $4,690
Explanation:
Entry DEBIT CREDIT
Bad debt Expense $4,690
Allowance for doubtful debt $4,690
In Order to record bad debt expense, we need to go through some minor workings.
Workings
Receivables on January 31 past due = $14,000 x 30% = $4,200
Receivable not past due = ($14,000 x 70%) x5% = $490
Bad debt expense = Receivables on January 31 past due + Receivable not past due
Bad debt expense = $4,200 + $490
Bad debt expense = $4,690
ent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The Deltas awarded Kent a $35,000 scholarship called "The Dean Wormer Double Secret Probation Memorial Scholarship". Kent pays the following amounts, out of his scholarship, to attend Faber College: Tuition - $26,000; Required lab fees - $300; Required books and supplies - $1,000; Room and board - $7,500. Part 1 of 6: Does the $26,000 of the scholarship that was paid for tuition have to be included in Flounder's taxable income for federal income tax purposes?
Answer:
Kent "Flounder" Dorfman
Scholarship from Delta Tau Chair Fraternity
The $26,000 will not be included in Flounder's taxable income for federal income tax purposes. It is a qualified scholarship expense. It is only the portion of $7,500 used for Room and board that is not a qualified scholarship expense.
Though it is required that the $35,000 be disclosed in form 1040. Qualified expenses like tuition, required lab fee, required books and supplies are tax-exempt, while Room and board and other non-required expenses are not qualified and therefore taxable.
Explanation:
S117(b)(2) of the IRS Code states the expenses that are qualified and tax-exempt if they are tuition-related.
When a qualified student, usually above 18 years and enrolled in post-secondary educational institution, receives a scholarship, the amount she uses to pay for tuition and other required expenses, which are generally payable by other students, are regarded as qualified expenses. Since they are qualified, they are also tax-exempt, meaning that taxes will not be paid on them, instead they will be deducted for tax purposes from the student's income. In the case of Kent, the tuition fee is not included in her taxable income for federal income tax purposes.
Ceteris paribus, if personal taxes are increased, consumer spending will ____________ and the aggregate demand curve will shift to the ______________.
Answer:
decrease, left
Explanation:
In simple words, when the authorities increase personal taxes in the community the disposable income of the individuals decrease. Disposable income refers to the net income that individuals get in hand for their spending on utilities.
Thus, due to less disposable income the spending will decrease which will further lead to decrease in demand, theretofore, shifting the demand curve to the left.
❗️❗️can anyone help me out with BIM PLEASE ❗️❗️(banking & credit cards)❗️Which terms describe an account that does not have sufficient funds to cover all the charges made to it? Select all that
apply.
Overdrawn
Non-sufficient funds
Insufficient funds
Loan
Overdraft
Answer:
Overdrawn
Insufficient funds
Explanation:
An account that doesn't have sufficient funds to cover all charges made against it, has special terms which bankers use to describe it. They include:
i. Insufficient funds: this refers to situation where the amount in the account is less than amount drawn on it or charges made against it.
ii. Account overdrawn: this doesn't have a special bank permit to withdraw more than what is in the account.