Answer:
$-2000
Explanation:
Economic profit = accounting profit - opportunity cost
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
if i hadn't quit my job, i would be earning $30,000. so, $30,000 is one of my opportunity costs.
also, if i hadn't started my business, i would be earning 0.1 x $70,000 = $7,000 on my capital. this is my second opportunity cost.
total opportunity cost = $7,000 + $30,000 = $37,000
economic profit = $35,000 - $37,000 = $-2000
Russell Retail Group begins the year with inventory of $45,000 and ends the year with inventory of $35,000. During the year, the company has four purchases for the following amounts.
Purchase on February 17 $200,000
Purchase on May 6 120,000
Purchase on September 8 150,000
Purchase on December 4 400,000
Calculate cost of goods sold for the year.
Answer:
COGS= $880,000
Explanation:
Giving the following information:
Beginning inventory= $45,000
Ending inventory= $35,000
Total Purchase= 870,000
To calculate the cost of goods sold (COGS), we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 45,000 + 870,000 - 35,000
COGS= $880,000
Stu deposited $400 in an account three years ago. Last year, he deposited $250 and plans to deposit $300 next year. The rate is 3 percent. Which one of these correctly states a portion of the formula needed to compute the future value five years from today
Answer and Explanation:
Future value = Present value x (1+i)^n, where
n = number of years
I = interest rate
From the question n = 8 years for the amount $400 ,
n= 7years for $250 ,
n=4years for $300
interest = 3%= 0.03
Future value of $400 = 400 (1 + 0.03)^8 = $506.71
Future value of $ 250 = 250 (1+0.03)^7 = $307.47
Future value of $ 300 =300(1+0.03)^4 = $337.65
Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio
Answer:
contribution margin ratio= 0.4
Explanation:
Giving the following information:
Selling price per unit= $20
Unitary variable cost= $12
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (selling price - unitary variable cost) / selling price
contribution margin ratio= (20 - 12) / 20
contribution margin ratio= 0.4
The contribution margin ratio is 0.4.The contribution margin ratio is the difference between company sales and variable costs, expressed as a percentage.
What is the contribution margin ratio?The total margin generated by an entity represents the amount of revenue available to cover fixed costs and generate profits.
The contribution margin ratio of a donation is the difference between a company’s sales and variable costs, expressed as a percentage. This ratio shows the amount of money available to cover fixed costs.
Giving the following information:
Selling price per unit is $20
Unitary variable cost is $12
To calculate the contribution margin ratio, we need to use the following formula:
[tex]\rm\,Contribution \;Margin\; Ratio= \frac{(Selling\; Price - Unitary Variable Cost)}{selling \;price} \\contribution \;margin\; ratio= \dfrac{ (20 - 12)}{20}\\Contribution\, margin\, ratio\, = 0.4[/tex]
Hence, the contribution margin ratio is 0.4.
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Assume Canada can either produce three bushels of barley or six bushels of hay in a set period of time, and China can produce either two bushels of barley or three bushels of hay in a set period of time. Which nation has a comparative advantage in producing hay
Answer:
Explanation:
Abcdefg
A bond has a $1,000 par value, 20 years to maturity, and pays a coupon of 5.5% per year, annually. The bond is callable in ten years at $1,075. If the bond’s yield to maturity is 5.89% per year, what is its yield to call? Question 13 options: A) 5.87% B) 6.57% C) 6.11% D) 6.43% E) 6.68%
Answer:
6.68% , option E is correct
Explanation:
The price of the bond can be computed using the below formula for bond price calculation:
bond price=face value/(1+r)^n+coupon*(1-(1+r)^-n)/r
face value is $1000
r is the yield to maturity which is 5.89%
coupon=face value*coupon rate=1000*5.5%=55
n is the number of coupons the bond would pay which is 11 coupons over 20 years
bond price=1000/(1+5.89%)^20+55*(1-(1+5.89%)^-20)/5.89%
bond price=$ 954.87
The yield on the call can be determined using excel rate function as further explained below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupons the bond would pay before being called in ten years' time i.e 10 coupons
pmt is the is the amount of annual coupon=$1000*5.5%=$55
pv is the current price of $954.87
fv is the call price which is $1,075
=rate(10,55,-954.87,1075)=6.68%
According to the Keynesian transmission mechanism, an increase in the money supply causes a(n) __________ in the interest rate and a(n) __________ in investment, which in turn causes a(n) __________ in total expenditures and aggregate demand.
Answer: lower; rise; raises.
Explanation:
According to the Keynesian transmission mechanism, when there is an increase in money supply which is an expansionary policy, this will result into a reduction in the interest rate.
Since the interest rate has been reduced, this will lead to an increase the in investment as investors will be willing to borrow loan for investment opportunities and this will also lead to a rise in the total demand and expenditure.
Kiley Corporation had these transactions during 2017 Analyze the transactions and indicate whether each transaction is an operating activity, investing acivity, financing activity, ar noncash investing and financing activity
(a) Purchased a machine for $30,000, giving a long term note in exchange
(b) Issued $50,00D par value common stock for cash. 38%
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
(d) Declared and paid a cash dividend of $13,000.
e) Sold a long-term investment with a cost of $15,000 for $15,000 cash
(f) Collected $16,000 from sale of goads.
(g) Paid $18,00D to suppliars.
Answer:
Operating Activities in a business's Cash-flow statement involve activities that have to do with the core business of firm which include the provision of its goods or service to the market. An example would be Revenue.
Investing Activities involve activities related to long term assets as well as securities related to other company's such as ownership of other company stocks and bonds.
Financing Activities refer to how the business raises cash to conduct its operations and this includes Equity transactions (including dividends) and Debt.
Non-cash investing and financing activity are Investing or Financing activities that are done by exchanging one for the other devoid of the use of cash.
A) Purchased a machine for $30,000, giving a long-term note in exchange. - Non-cash Investing and Financing activity
B) Issued $50,000 par value common stock for cash. - Financing Activities
C) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. - Non-cash Investing and Financing activity
D) Declared and paid a cash dividend of $13,000. - Financing Activities
E) Sold a long-term investment with a cost of $15,000 for $15,000 cash. - Investing Activities
F) Collected $16,000 from sale of goods. - Operating Activities
G) Paid $18,000 to suppliers. - Operating Activities
Justin hires Miguel to sell his baseball glove for $560. As part of their contract, Justin will pay him $100 to conduct the sale. Justin is a _______________________. Group of answer choices
Answer: Factee
Explanation:
This is a factorage transaction in which Justin will pay Miguel to act as an intermediary who will sell the baseball glove and receive a commission. That commission is known as a Factorage.
In a Factorage transaction, the intermediary being paid to sell the product is considered to be the Factor and the person who will pay for the product to be sold is the Factee. Justin in this scenario is paying for the baseball glove to be sold and so is the Factee.
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: White divisionGrey division Sales (net)$270,000 $540,000 Salary expense37,800 64,800 Cost of goods sold135,000 202,500 The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Gross profit for the White and Grey Divisions is: WhiteGrey A.$97,200 $272,700 B.$232,200 $475,200 C.$135,000 $337,500 D.$72,200 $247,700 E.$97,200 $247,700
Answer:
White Division Gross Profit = $72,200
Grey Division Gross Profit = $247,700
Explanation:
White Division Grey division
Sales (net) $270,000 $540,000
Less: Cost of goods sold $135,000 $202,500
Gross Margin $135,000 $337,500
Less: Salary Expenses $37,800 $64,800
Rent $25,000 $25,000
Gross Profit $72,200 $247,700
The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Hence, the rent expenses will be shared equally. Rent = $50,000 hence, both division will pay $25,000 each for rent
Suppose the price level and value of the U.S. Dollar in year 1 are 1 and $1, respectively. Instructions: Round your answers to 2 decimal places. a. If the price level rises to 1.55 in year 2, what is the new value of the dollar
Answer: $0.65
Explanation:
The Price Level and the value of a currency are inversely related because inflation erodes the value of the currency. Therefore if the price level increases, the value of the currency drops. The reverse is true.
The formula therefore is is;
New Value = [tex]\frac{1}{Price Level}[/tex]
New Value = [tex]\frac{1}{1.55}[/tex]
New Value = 0.6452
New Value = $0.65
Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1000,20 years to maturity, and a coupon rate of 6.6 percent paid annually.
If the yield to maturity is 8.9 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Price of bond = $786.86
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond would be worked out as follows:
Step 1
Calculate the PV of interest payments
Annual interest payment
= 6.6% × 1,000× 1/2= 33
PV of interest payment = A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 8.9%/2 = 4.45 %
n- 20× 2= 40
PV of interest payment= 33 × (1-(1.0445^(-40)/0.0445 = 611.611
Step 2
PV of redemption Value
PV = RV × (1+r)^(-n)
PV = 1,000 × (1.0445)^(-40) = 175.25
Step 3
Price of bond
Price of bond= 611.611 + 175.25 = 786.862
Price of bond = $786.86
4. Sales tax is taken on
O A. selling price minus trade discount.
B. shipping charges.
O c. trade discounts.
0 D. cash discounts.
Answer:
A. selling price minus trade discount.
Explanation:
Using ABC to compute product costs per unit
Jaunkas, Corp., manufactures mid-fi and hi-fi stereo receivers. The following data have been summarized:
Mid-Fi Hi-Fi
Direct materials cost per unit $ 400 $ 1,300
Direct labor cost per unit 400 300
Indirect manufacturing cost per unit ? ?
Indirect manufacturing cost information includes the following:
Activity Allocation Rate Mid–Fi Hi–Fi
Setup $1,700/per setup 39 setups 39 setups
Inspections $ 400/per hour 45 hours 15 hours
Machine maintenance $ 10/per machine 1,900 machine 1,200 machine
hour hours hours
The company plans to manufacture 200 units of the mid-fi receivers and 250 units of the hi-fi receivers.
Requirement
Calculate the product cost per unit for both products using activity-based costing.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Activity Allocation Rate Mid–Fi Hi–Fi
Setup $1,700/per setup 39 setups 39 setups
Inspections $ 400/per hour 45 hours 15 hours
Machine maintenance $ 10/per machine 1,900 machine 1,200 machine
First, we need to allocate indirect costs using the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Mid-Fi:
Allocated MOH= 1,700*39 + 400*45 + 10*1,900= $103,300
Hi-Fi:
Allocated MOH= 1,700*39 + 400*15 + 10*1,200= $84,300
Now, we can calculate the unitary cost.
Mid-Fi:
Unitary indirect costs= 103,300/200= $516.5
Unitary cost= 400 + 400 + 516.5= $1,316.5
Hi-Fi:
Unitary indirect cost= 84,300/250= $337.2
Unitary cost= 1,300 + 300 + 337.2= $1,937.2
Monica has a Roth IRA to which she contributed $15,000. The IRA has a current value of $37,500. She is 54 years old and takes a distribution of $25,000. How much of the distribution will be taxable to Monica? Group of answer choices
Answer:
$10,000
Explanation:
Monica has a Roth IRA in which she contributed $15,000
The IRA has a current value of $37,500
Monica is 54 years old
She takes a distribution of $25,000
Therefore, the amount of distribtion that will be taxable can be calculated as follows
Amount of taxable distribution= $25,000-$15,000
= $10,000
Hence the amount of distribution that will be taxable to Monica is $10,000
If a check correctly written and paid by the bank for $936 is incorrectly recorded in the company's books for $963, how should this error be treated on the bank reconciliation
Answer:
The difference of $27 will be added in the bank reconciliation statement.
Explanation:
With regards to the above information,
Since bank paid $936 but was recorded as $963 in the company's books.
The difference would therefore be ;
= $963 - $936
= $27.
This means that in the company's books, the balance is shown less than the actual balance by $27
Therefore, $27 will be added to the balance in the bank with regards to the books while preparing the bank reconciliation statement.
Hence, $27 which is $963 - $936 will be added in the bank reconciliation statement.
You work in the marketing research department of Burger King. Burger King has developed a new cooking process that makes the hamburgers taste better. However, before the new hamburger is introduced in the market, taste tests will be conducted. How should the sample size for these taste tests be determined? What approach would you recommend? Justify your recommendations to a group of students representing Burger King management
Answer with its Explanation:
The first step is to diversify the sample size so that our sample includes every person from different cultures, geographic, religions, genders, etc., which would help in better assessment of the product's future in the market.
Second step is to set a sample size for receiving the feedback of the customers at required confidence interval that is Burger King's goal to achieve. For example, Burger King desires to achieve 93% customer satisfaction and the error rate would determined by using the confidence interval. This sample size would be calculated using the practical approach.
Third step is to ensuring that the errors in prediction are reasonably low by practical approach, confidence interval approach and diversified test samples. All this will help the company to ensure that they have accurate results in hand for decision making.
Based on the information given, the necessary thing to do will be to diversify so that everyone will be taken into consideration.
Also, the feedbacks that are gotten from the customers should be taken into consideration.
It is also important to ensure that the errors that are in the prediction are low by the practical approach, confidence interval approach, and diversified test samples.
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Q 11.26: The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at some point in the near future. The company currently has Retained Earnings of $2,419,000 and a Cash balance of $827,000. They also have current liabilities totaling $436,000. What is missing in order for Testa to be able to pay a cash dividend
Answer: B. : a healthy cash reserve
Explanation:
For the company to be able to declare a Dividend, it's cash reserve needs to be healthy. For this to happen use the following formula;
Free cash balance = Available cash balance - Current Liabilities payable
= 827,000 - 436,000
= $391,000
After taking out the money that will be needed to pay the Current Liabilities, there would be an insufficient balance to pay off the Dividends of $400,000.
Their cash reserve is not healthy enough for the dividends to be declared.
The thing that is missing in order for Testa to be able to pay a cash dividend is a healthy cash reserve.
It should be noted that for the company to be able to declare a dividend, it's important that the cash reserve is healthy.
The free cash balance can be calculated as:
= Available cash balance - Current Liabilities payable
= $827,000 - $436,000
= $391,000
When the current liabilities are paid, there would be an insufficient balance to pay off the dividends of $400,000. Therefore, a healthy cash reserve is required.
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The static budget, at the beginning of the month, for Amira Company follows: Static budget: Sales volume: 1 comma 000 units; Sales price: $ 70 per unit Variable costs: $ 33 per unit; Fixed costs: $ 36 comma 200 per month Operating income: $ 800 Actual results, at the end of the month, follows: Actual results: Sales volume: 990 units; Sales price: $ 74 per unit Variable costs: $ 35.00 per unit; Fixed costs: $ 33 comma 500 per month Operating income: $ 5 comma 110 Calculate the flexible budget variance for fixed costs.
Answer:
$2700 Favourable
Explanation:
A flexible budget variance is any difference between the results generated by a flexible budget and actual results. If Flexible budgeted value is greater than Actual results then it would be a favorable result or Vice versa.
Data
Budgeted fixed cost = $36,200
Actual Fixed cost =$33,500
Variance =?
Solution
Variance = Budgeted fixed cost - actual fixed cost
Vaiance = $36,200-$33500
Variance =$2700 Favorable
Listed below are accounts that appear in financial statements.
Required: Identify the financial statement(s) in which each of the following three accounts would be found. Note: An account may appear in more than one financial statement.
Balance sheet Income statement statement of changes
in retained earning
Dividends
Deffered Revenue
Service Revenue
Answer:
Dividends - Statement of Changes in Retained Earning
Dividends are payments to shareholders from a company's net income. They are derived from the Statement of Changes in Retained Earning because this is where Net Income is sent to. After they are deducted from Retained Earnings, the Earnings form part of Equity.
Differed Revenue - Balance Sheet
Differed Revenue refers to money that was received from a customer or client for goods and/or services that have not yet been delivered. The business will treat them as a liability until they are delivered so they will go under Current Liabilities in the Balance Sheet assuming they are to be fulfilled in 12 months or less which is usually the case.
Service Revenue - Income Statement
These are revenue that the business earns for providing a service when their main source of revenue is by selling goods. It is listed in the Income Statement just after Revenue and is added to Revenue to get Total Revenue.
What is the first step of the process of creating a new product?
A. Idea generation
B. Idea screening
C. Focus group testing
D. Business analysis
Answer: A. Idea generation
Explanation:
The beginning fo creating a great product is to generate fantastic ideas.
Idea generation includes the stage of constructing through the idea, innovating the concept, developing the process, and the main thing is bringing the concept to reality.Behind any product, the idea of creating it is the necessary step to show it in reality, without it a person cannot create a plan to construct a product.
Hence, the first step of the process of creating a new product is A. Idea generation .
Rest other 3 steps are after this.
Answer:
idea generation
Explanation:
Jon Stewart suggest that bringing disease into the immigration debate is just a scare tactic. Using one of the video clips Hoffman cites, give an example of a way that emotions are appealed to in the arguments presented
Answer:
The Joe Stewart and Hoffman are committing thread of Hominem fallacy. It occurs when arguer attacks the qualities of the opponent instead of the opponent's argument.
Explanation:
The video clips of Hodgman cites appeal to emotions like fear that includes suggesting that immigrants will bring diseases to the country. There is a likely hood that diseases spread will increase which will create health emergency in the country. The immigrants will then involve in violent gang activities like smuggling, drugs, drink and molessting children.
Constanza, who is single, sells her current personal residence (adjusted basis of $262,500) for $735,000. She has owned and lived in the house for 30 years. Her selling expenses are $36,750. What is Constanza’s realized and recognized gain? Constanza’s realized gain is $ and her recognized gain would be $ .
Answer:
Realized gain $435,750
Recognized gain$ 185,750
Explanation:
Calculation for Constanza’s realized and recognized gain
The realized gain will be calculated as :
Amount realized $698,250
($735,000 − $36,750)
Less the Adjusted basis ($262,500)
Realized gain $435,750
Constanza’s Recognised gain
Realized gain $435,750
Less Section 121 exclusion ($250,000)
Recognized gain$ 185,750
Therefore Constanza’s realized gain is $435,750 and her recognized gain would be $186,750 .
If a customer is reluctant to try a new product because she's afraid it might make her ill, the company offering it is most likely facing ________ barrier.
Answer: Risk barrier
Explanation:
With every new product or innovation, there is a risk that things will not work well. This risk is divided into 4 types;
Physical risk where the product might be harmful physicallyEconomic risk depending on the cost of the productPerformance risk Social Risk where a person wonders how the public will perceive them for using the product.The customer is facing a Physical risk barrier when she encountered the new product. As it has not been tried and tested by others, using it as a pioneer means that she will not know what she is getting into and so she worries that there is a chance it will harm her physically and make her ill.
Nicolas Enterprises sells a product for $67 per unit. The variable cost is $33 per unit, while fixed costs are $231,200. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $73 per unit.
Answer:
a)Break-even point = 6,800 units
b) Break-even point =5780 units
Explanation:
Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.
The break-even point is calculated as
Units to achieve target profit = (Total general fixed cost for the period)/ contribution per unit
Contribution per unit = Selling Price - Variable cost
Contribution per unit = 67 - 33 = 34
Fixed cost =231,200
So the units requited to achieve break-even point:
Break-even point = 231,200/34 = 6,800 units
Break-even point = 6,800 units
b) If the selling price wete increased to 73
The break-even point = 231,200/ (73- 33) = 5,780 units
Break-even point =5780 units
Through which strategy do you believe Lockheed Martin would be most profitable to pursue diversification?
Answer: Related diversification
Explanation:
Here is the complete question:
Lockheed Martin has been a recognized brand in technology for aeronautics and space systems fordecades. The U.S. government is Lockheed Martin’s main customer. Recently, as large-scale military actions have decreased across the globe, the government has been consuming less of Lockheed Martin’sofferings.
As a top of executive of Lockheed Martin, you’ve been asked to consider the opportunities to diversify into new markets in order to remain competitive and continue to increase profits.
Through which strategy do you believe Lockheed Martin would be most profitable to pursue diversification?
Related diversification occurs when a business or an organization expands its activities into similar product lines that to the ones it currently offers.
An example of related diversification is when a computer manufacturer starts making calculators.
By pursuing related diversification, Martin is exploring innovative products which are still within aeronautics scope.
Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent.
Year
0 1 2 3 4 5
Glass Flows $51100 $13150 $16050 $23900 $12400 $3050
The discounted payback period is:________.
a. 0.39 year longer than the payback period.
b. 0.64 year longer than the payback period.
c. 0.76 years longer than the payback period.
d. 0.25 years longer than the payback period.
Answer:
c. 0.76 years longer than the payback period.
Explanation:
Payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.
the amounted invested in the project = $-51100
In year 1, the amount recovered = $-51,100 + $13150 = $-37,950
In year 2, the amount recovered = $-37,950 + $16050 = $-21,900
In year 3, the amount recovered = $-21,900 + $23900 = $2000
the amount invested is recovered in 2 + 21,900 / 23900 = 2.92 years
Discounted payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.
discounted cash flows
$13150 / 1.08 = $12,175.93
$16050 / 1.08^2 = $13,760.29
$23900 / 1.08^3 = $18972.59
$12400 / 1.08^4 = $9114.37
the amount is recovered in 3 + 6191.19 / 9114.37 = 3.68 years
the discounted payback is longer than the payback period by 3.68 years - 2.92 years = 0.76 years
The American car battery industry boasts that its recycling rate now exceeds 95%, the highest rate for any commodity. However, with changes brought about by specialization and globalization, parts of the recycling system are moving offshore. This is particularly true of automobile batteries, which contain lead. The Environmental Protection Agency (EPA) is contributing to the offshore flow with newly implemented standards that make domestic battery recycling increasingly difficult and expensive. The result is a major increase in used batteries going to Mexico, where environmental standards and control are less demanding than they are in the U.S. One in five batteries is now exported to Mexico. There is seldom difficulty finding buyers because lead is expensive and in worldwide demand. While U.S. recyclers operate in sealed, mechanized plants, with smokestacks equipped with scrubbers and plant surroundings monitored for traces of lead, this is not the case in most Mexican plants. The harm from lead is legendary
The correct answer to this open question is the following.
The question is incomplete. There are parts of the question missing. Indeed, there is no question posted, it is just a statement.
However, we can do research and comment on the following.
We are facing two scenarios here. Both, ethical dilemmas that need to be solved.
1) as an independent auto repair shop owner that tries to safely dispose of a few old batteries each week. (Your battery supplier is an auto parts supplier who refuses to take your old batteries.)
In this case, I would check the original agreement with the supplier to see if there is a clause on old batteries management. If not, I would ask it to help me solve this issue because I am his client and has to take care of me and the environment. Otherwise, I would have to contemplate the option of changing supplier.
2) I am the manager of a large retailer responsible for the disposal of thousands of used batteries each day.
In this other case, I would follow the Environmental Department rules and regulations to comply with the correct procedures. This means to ask for support and orientation to get all the revisions to work properly. Because I know all the consequences of not recycling correctly or the damage done to humans and the environment. So although it could be more money, and would modernize my equipment to better manage the disposal of batteries. It would be an investment, not an expense.
You invest a single amount of $14,800 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for 14 years at 17 percent. How much will you have after 21 years
Answer:
Value of investment after 21 years = $354,608.11
Explanation:
The value of an amount invested at a certain rate of return for certain number of years where interest compounded annually is known as the future value.
The future value of an investment can be determined using the future value formula. This formula is stated below:
FV = PV × (1+r)^(n)
FV - Future Value , PV- Present Value, r-rate of return, n- number of years
For the first round of investment 15% for 7 years, future value would be:
FV = 14,800 × (1.15)^(7) = 39,368.29
Second round of investing 17% for 14 year, future value would be
FV = 39,368.29 × (1.17)^(14)= 354,608.11
Future Value =$354,608.11
Value of investment after 21 years = $354,608.11
Pinkin Inc. needs to determine a price for a new phone model. Pinkin desires a 20% markup on the total cost of the phone. Pinkin expects to sell 43,000 phones. Additional information is as follows:
Variable product cost per unit $82
Variable administrative cost per unit $66
Total fixed overhead $110,000
Total fixed administrative $90,000
Using the total cost method what price should Pinkin charge?
a. $178.08
b. $190.00
c. $152.08
d. $170.92
e. $188.75
Answer: $183.18
Explanation:
Pinkin aims to make a 20% markup on the total cost of selling the product.
Costs
Fixed Cost Per Unit
= (Total fixed overhead + Total fixed administrative) / no. of units
= (110,000 + 90,000)/43,000
= $4.65
Variable Costs Per Unit
= Variable product cost per unit + Variable administrative cost per unit
= 82 + 66
= $148
Total Cost per unit = 4.65 + 148
= $152.65
Price Pinkin should charge
= Total Cost ( 1 + Markup)
= 152.65 ( 1 + 20%)
= $183.18
Note; Answer is not in the options. Either Options are for another question or question has wrong details.
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $5,800. On September 9, the customer unexpectedly pays the $5,800 balance. Record the cash collection on September 9.
Answer and Explanation:
According to the given situation, the Journal entry is shown below:-
On September 9
Account receivable Dr $5,800
To Allowance for doubtful debts $5,800
(Being written off amount is recorded)
Here we debited the account receivable as it increased the assets and credited the allowance as it decreased the assets
On September 9
Cash Dr, $5,800
To Accounts receivable $5,800
(Being cash collection is recorded)
Here we debited the cash as it increased the assets and we credited the accounts receivable as it decreased the assets