Answer:
a. Computers
Explanation:
The MRP refers to the material requirement planning with respect to production, scheduling, controlling of an inventory. It works is to transform the master schedule to the detailed schedule in order to purchase the raw material.
It can be divided into two components i.e independent and dependent demand. The independent demand is held for the finished goods and the dependent demand is for the components
Now for developing the mrp depend upon the recognition between the dependent and independent demand and the second one is computer
Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $133,000 November 166,000 December 243,000 The Accounts Receivable balance on September 30 was $89,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales:
30% on cash
70% on account
Sales on account:
25% in the month of the sale
75% in the following month
October $133,000
November 166,000
December 243,000
The Accounts Receivable balance on September 30 was $89,000.
Cash collection October:
Sales on cash= 133,000*0.30= 39,900
Sales on account from October= (133,000*0.7)*0.25= 23,275
Sales on account September= 89,000
Total cash collection= $152,175
Cash collection November:
Sales on cash= 166,000*0.30= 49,800
Sales on account from October= (166,000*0.7)*0.25= 29,050
Sales on account October= (133,000*0.7)*0.75= 69,825
Total cash collection= $148,675
Cash collection December:
Sales on cash= 243,000*0.30= 72,900
Sales on account from October= (243,000*0.7)*0.25= 42,525
Sales on account October= (166,000*0.7)*0.75= 87,150
Total cash collection= $202,575
First, spend a couple of sentences summarizing the Concepts in Action video you watched this week. Then, answer the following. In the Concepts in Action video you watched this week, the speaker mention that for a small business, having payment terms is like using "free money" for a while. What do you think this means
Answer with its Explanation:
Free Money means the money that has to be paid back to the money lender within a reasonable time. The money lender usually is a trader who sells his product at credit allowing his customer a reasonable period to payback. Furthermore, the free money is termed free because they are interest free lendings.
In real life, free money is can be availed by purchasing products from the suppliers if you are acting as a middle man in the distribution channel or you are a small customer and your borrowings doesn't impact the supplier. Almost all of the businesses lend free money in the form of products because allowing credit increases the sales of the organizations.
Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of a meeker is $23. Suppose that the world price for a meeker is $24. Assume that Meekertown is too small to influence the world price for meekers once they enter meeker the international market. If Meekertown allows free trade, then it will _______________ meeker.
When a country is too small affect the world price, allowing for free trade will always increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.
a. True
b. False
Answer:
Export
true
Explanation:
Because the price of meekers in meekertown is lower than the world price for meekers, meekers from meekertown are cheaper. so if free trade is allowed, other countries would want to purchase meekers from meekertown because it is cheaper.
So, meekertown would export meekers if free trade is allowed.
When a country is too small affect the world price, allowing for free trade will always increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.
this is so because if the country is efficient in production of a good (producing at a lower price when compared to the world price), export of the good would increase thus increasing producer surplus. if on the other hand, the country is inefficient in producing a good and the country allows for free trade, the country can import the good. this would increase consumer surplus.
Ivanhoe provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation $1,500 per month Advertising $350 per month Insurance $2,770 per month Weed and feed materials $17 per lawn Direct labor $9 per lawn Fuel $2 per lawn Ivanhoe charges $70 per treatment for the average single-family lawn. Correct answer. Your answer is correct. Determine the company’s break-even point in number of lawns serviced per month. Break-even point Entry field with correct answer 110 lawns LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Determine the company’s break-even point in dollars.
Answer:
Explanation:
To start with, we need to get the value for total fixed cost and total variable cost
Total fixed costs = Depreciation + Advertising + Insurance
= $1,500 + $350 + $2,770
= $4,620
Total variable costs per unit = Weed and feed materials + Direct labor + Lawn Fuel
= $17 + $9 + $2
= $28 per lawn
We also need to compute the contribution margin ratio
= Sales per unit - Variable cost per unit / Sales per unit
= (70 - 28) / 70
= 0.6
= 60%
Therefore;
1. Break even sales
g Profit maximazation for a monopolist and a perfect competitor occurs where marginal revenue equals marginal cost. At this profit-maximizing output, the monopolist will charge a price ________ marginal revenue and a perfect competitor will charge a price ________ marginal revenue.
Answer: Higher than; Equal to
Explanation:
Profit maximazation for a monopolist and a perfect competitor occurs where marginal revenue equals marginal cost.
The Marginal Revenue curves are different for either of them though and this impacts what price they sell at. This is because the price the good will be sold at depends on where the maximising output touches the demand curve.
The Monopolist has a Marginal Revenue curve that is lower than the Demand Curve. Therefore the point where Marginal Revenue and Marginal Cost intersect, will not be on the demand curve but lower than it. The price charged will therefore be the point where the maximising output touches the Demand Curve.
The Perfectly Competitive Firm however is in a market where Price is equal to the Demand curve and equal to the Marginal Revenue curve as well. The point where the Marginal Cost intersects with Marginal Revenue will also be the point where the maximising output touches the Demand curve so the price will be the same as the Marginal Revenue.
Marley Investments, Inc. purchased 45% of the common stock of Beige Corporation on January 1, 2019, Beige Corporation reports a net income of $700,000 for the 2019 year.
Which of the following is the correct journal entry?
A. Equity Investments-Beige Corporation 315,000
Revenue from Investments 315,000
B. Revenue from Investments 315,000
Cash 315,000
C. Revenue from Investments 315,000
Cash 315,000
D. Revenue from Investments 315,000
Equity Investments-Beige Corporation 315,000
Answer:
A.
Debit Equity Investments-Beige Corporation 315,000
Credit Revenue from Investments 315,000
Explanation:
In the given scenario Marley Investment is purchasing 45% of common stock of Beige Corporation
Revenue for the year is $700,000
So the cost of purchase will be 0.45 * 700,000 = $315,000
Since Marley Investment is making an investment in Beige shares, it will debit it's Equity Investment for this amount ($315,000)
Equity investment are costs incurred when a business purchases securities.
After purchase of the shares the revenue can now be recognised by crediting the Revenue from Investment account.
Marley Investment is now a stakeholder in Beige Corporation
3. Individual Problems 20-3 Lightweight personal locator beacons are now available to hikers, making it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness. True or False: Forest Service costs will likely fall due to moral hazard. True False
Answer: False
Explanation:
Moral Hazard refers to the tendency of people or entities to take on more risk if they know they will be saved from it.
With the Forest Service now making locator beacons available for hikers, the result will be that more hikers will be emboldened to hike further in the wilderness or into more dangerous areas knowing that should they get in trouble, the rescue teams will locate them faster. It will also mean that more hikers will start coming to the forest because they feel they can hike and be found easily if they get into trouble.
These 2 things will mean that the Forest Service will both have to conduct more rescue missions and maybe hire more personnel as a result of the increased number both of which will increase their costs not reduce them.
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 250,000 $ 286,000 Purchases 672,000 888,000 Freight-in 14,000 Net markups 26,000 Net markdowns 4,500 Net sales 860,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided
Answer:
261,690
Explanation:
The computation of inventory is shown below:-
Particulars Cost Retail Cost-to-Retail Ratio
Beginning inventory $250,000 $286,000
Add Purchases $672,000 $888,000
Freight-in $14,000
Net markup $26,000
Total $936,000 $1,200,000
Less: Net markdowns $4,500
Goods available for sale $1,195,000
Cost-to-retail percentage 0.78 (in working note)
Less: Net sales $860,000
Retail Estimated ending
inventory $335,500 ($1,195,000 - $860,000)
At cost Estimated ending
inventory $261,690
Cost-to-retail percentage is
= 936,000 ÷ 1,200,000
= 0.78
Estimated ending inventory at cost is
335,500 × 0.78
= 261,690
Powell Company issued a $1,200,000, 7 %, 10-year bond payable at face value on January 1, 2018. Interest is paid semiannually on January 1 and July 1.
Requirements
1. Journalize the issuance of the bond payable on January 1, 2018.
2. Journalize the payment of semiannual interest on July 1, 2018.
Answer:
1.Dr Cash 1,200,000
Cr Bonds Payable 1,200,000
2. Dr Interest Expense 42,000
Cr Cash 42,000
Explanation:
1. Preparation of the Journal entry to record the issuance of the bond payable on January 1, 2018.
Since the company issued the amount of $1,200,000 this means that the transaction will be recorded as:
January 1 2018
Dr Cash 1,200,000
Cr Bonds Payable 1,200,000
( To record Issued bonds at par)
2. Preparation of the Journal entry to record the payment of semiannual interest on July 1, 2018.
Since the company issued the amount of $1,200,000 with 7 %, and 10-year bond payable at face value, this means the transaction will be recorded as;
July 1 2018
Dr Interest Expense 42,000
Cr Cash 42,000
($1,200,000 × 0.07 × 6/12)
(To record paid semiannual interest payment)
A monopoly's cost function is CQ and its the demand for its product is pQ where Q is output, p is price, and C is the total cost of production. Determine the profit-maximizingLOADING... price and output for a monopoly.
Answer:
The answer is "70 units".
Explanation:
In the given question some equation is missing which can be defined as follows:
[tex]C = 1.5Q^2+40Q\\\\P=320-0.5Q[/tex]
Monopolistic functions are used where Marginal Profit = Marginal Cost where marginal revenue and marginal cost stand for the MR and MC.
Finding the value of MR :
[tex]\ MR = \frac{\partial TR}{\partial Q} \\\\[/tex]
[tex]= \frac{\partial PQ}{\partial Q} \\\\= \frac{\partial (320-0.5Q)Q}{\partial Q}[/tex]
[tex]= \frac{\partial (320Q -0.5Q^2)}{\partial Q}\\\\ = \frac{\partial Q (320 -0.5Q)}{\partial Q}\\\\ \ by \ solving \ we \ get \\\\ = 320 - Q...(1)[/tex]
Calculating the value of the MC:
[tex]MC = \frac{\partial TC}{\partial Q} \\[/tex]
[tex]=\frac{\partial (1.5Q^2 + 40Q)}{\partial Q} \\\\=\frac{\partial Q (1.5Q + 40)}{\partial Q}\\\\ \ by \ solve \ value \\\\ = 3Q + 40....(2)[/tex]
compare the above equation (i) and (ii):
[tex]\to 320 -Q = 3Q+40\\\\\to 320 -40 = 3Q+ Q\\\\\to 280 = 4Q\\\\\to 4Q =280 \\\\\to Q= \frac{280}{4}\\\\\to Q= 70 \\[/tex]
Your goal as a speaker is to help your audience understand, remember, and act upon your ideas. To improve comprehension and enhance retention, use visual aids.
1.Well-planned visual aids can _________________ and make the presenter appear more professional.
a) increased audience interest
b) decrease interruptions
2.What is an advantage of using multimedia slides?
a) They enhance recall because the audience keeps the reference material.
b) They are always compatible with other equipment and programs.
c) They are inexpensive to update and easy to use and transport.
3.What visual aid conveys a professional appearance by allowing the presenter to choose from many color, art, and font options?
a) Handouts
b) Speaker notes
c) Multimedia slides
Read the scenario, and answer the question.
You are giving a presentation on designing multimedia presentations. You will have access to compatible A/V equipment, and you know that each of your listeners will probably want a copy of the key tips in your presentation.
4.What visual aid option should you choose? Check all that apply.
a) Flip charts
b) Props
c) Transparencies
d) Handouts
e) Multimedia slides
Answer:
1. A
2. A
3. C
4. D and E.
Explanation:
1. Well-planned visual aids can increased audience interest and make the presenter appear more professional.
2. An advantage of using multimedia slides is that they enhance recall because the audience keeps the reference material.
3. Multimedia slides is a visual aid conveys a professional appearance by allowing the presenter to choose from many color, art, and font options.
4. Multimedia slides and handouts is a visual aid option that allows access to compatible A/V equipment, and each of the listeners can have a copy of the key tips in the presentation.
Generally, in order to have good communication and for the sake of impacting knowledge, speakers should help their audience understand, remember, and act upon ideas. Also, to improve comprehension and enhance retention, speakers are advised to use visual aids such as a multimedia slide, handouts etc. A multimedia slide can be designed or created through the use of a computer software such as Microsoft PowerPoint.
Additionally, the handouts should be shared to the audience at the end of the presentation.
Answer:
everything besides B
Explanation:
Travers Company is contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units (the total capacity of their factory). Travers Company is presently manufacturing 7000 units in their factory.
Direct Materials $5
Direct Labor $10
Variable Overhead $7
Fixed Overhead $6
Poppins Company wants to purchase 2,000 units at a special unit price of $36. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $6250 in order to stamp the company’s logo on the product.
Required:
What is the amount of the incremental income (loss) from accepting the order?
Answer:
The amount of the incremental income from accepting the order is $21,750 .
Explanation:
Incremental analysis of Accepting Special Order
Hint : Consider Incremental Amounts Only
Sales (2,000 units × $36) $72,000
Less Expenses
Direct Materials ($5 × 2,000) ($10,000)
Direct Labor ($10 × 2,000) ($20,000)
Variable Overhead ($7 × 2,000) ($14,000)
Special stamping machine ($6250)
Incremental income/ (loss) $21,750
Note : There is excess capacity of 3,000 units (10,000 units - 7,000 units) to meet the Special Order. Hence
Fixed Overheads will be the same whether or not the special order is accepted, hence they are not included in the analysis.
Conclusion :
The amount of the incremental income from accepting the order is $21,750 .
It costs a bakery $3 to sell a single cake. This bakery makes $7 in revenue from each cake it sells. Assume this bakery sells 25 cakes. What is its total profits
Answer:
$100
Explanation:
The revenue is the total amount the company receives for the sale of products and the profit is the amount left after the costs are subtracted. Because of that, to calculate the profit you have to subtract the costs from the revenue generated:
Profit= Revenue-costs
Profit= (7*25)-(3*25)
Profit=175-75
Profit= 100
According to this, the total profit is $100.
A country in South America is experiencing high inflation, around 15% annually, and high unemployment, around 25%. According to the AD/AS model, which of the following is most likely to explain this outcome?
a. A positive real shock
b. A positive aggregate demand shock
c. A negative aggregate demand shock
d. A negative real shock
Answer:
The correct answer is the option D: A negative real shock
Explanation:
To begin with, in the case presented where the economy has suffered from high inflation and unemployment rates then the most likely situation that could have happened before to explain this outcome is that the country and its economy were harmed badly by a negative real shock. This tend to happen when the aggregate supply is low and this one tends to decline rapidly affecting the economy in its whole due to the fact that the sellers are now producing less of the products and services and therefore the consumption and the real GDP decreases dramastically.
A sporting goods store purchased $10,150 worth of ski boots in October. The store had $4,350 of ski boots in inventory at the beginning of October and expects to have $3,800 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October
Answer:
The budgeted cost of goods sold for October is $9,600.
Explanation:
Prepare a Budgeted Costs of Goods Sold for October as follows :
Budget Purchases $10,150
Add Budgeted Closing Stock $3,800
Needed $13,950
Less Budgeted Opening Stock ($4,350)
Budgeted Cost of Goods Sold $9,600
Conclusion :
The budgeted cost of goods sold for October is $9,600.
Financial Statements of a Manufacturing Firm
The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes:
Purchased $320,000 of materials
Used $275,000 of direct materials in production
Incurred $236,000 of direct labor wages
Applied factory overhead at a rate of 75% of direct labor cost
Transferred $652,000 of work in process to finished goods
Sold goods with a cost of $630,000
Sold goods for $1,120,000
Incurred $252,800 of selling expenses
Incurred $100,000 of administrative expenses
A. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method.
Focault Inc.
Income Statement
For the Month Ended July 31
Revenues $
Cost of Goods Sold
Gross Profit $
Selling and administrative expenses:
Selling Expenses $
Administrative Expenses
Total selling and administrative expenses
Income from Operations $
B. Determine the inventory balances at the end of the first month of operations.
Materials inventory, July 31
Work in process inventory, July 31
Finished goods inventory, July 31
Answer:
Required A.
Focault Inc.
Income Statement For the Month Ended July 31
Revenues $1,120,000
Cost of Goods Sold ($630,000)
Gross Profit $ 490,000
Selling and administrative expenses:
Selling Expenses ($252,800)
Administrative Expenses ($100,000)
Income from Operations $137,2000
Required B
Materials inventory, July 31 = $45,000
Work in process inventory, July 31 = $36,000
Finished goods inventory, July 31 = $22,000
Explanation:
Raw Materials T - Account
Debit :
Purchases $320,000
Totals $320,000
Credit:
Used in Production $275,000
Ending Balance $45,000
Totals $320,000
Manufacturing Cost Schedule
Raw Materials $275,000
Direct labor $236,000
Overheads ($236,000 × 75%) $177,000
Total Manufacturing Cost $688,000
Less Cost Transferred to Finished Goods ($652,000)
Ending Work In Process $36,000
Finished Goods T - Account
Debit :
Cost of Goods Manufactured $652,000
Totals $652,000
Credit :
Trading Account : Cost of Sales ($630,000)
Ending Balance $22,000
Totals $652,000
Your Competitive Intelligence team is predicting that the Chester Company will invest in adding capacity to their Cute product this year. Assume Chester's product Cute invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).
Answer:
HELLO SOME PARTS OF THE QUESTION IS MISSING ATTACHED BELOW IS THE MISSING PARTS
answer : 13156
Explanation:
Considering only products primarily in the core segment last year.
they are : Ant, cone, cute,Drat and Daze
From the question it is assumed that Chester's product Cute and other products in its Core segment will be increased by 10% this year hence we will calculate the 10% increase of each core product and add it to its initial value
For ANT (1550)
will become = 1550 + ( 10% * 1550 ) = 1705
For CONE ( 1050 )
will become = 1050 + ( 10% * 1050 ) = 1155
For Cute ( 1300 )
will become = 1300 + (10% * 1300 ) = 1430
For Drat ( 1040 )
will become = 1040 + ( 10% * 1040 ) = 1144
For DAZE ( 1040 )
will become = 1040 + ( 10% * 1040 ) = 1144
The total capacity of the current year = 1705 + 1155 + 1430 + 1144 + 1144 = 6578
Hence the Total capacity the Industry will produce in the core next year still applying the 10% increment will be = 2 * 6578 = 13156
The ideal marketing objective is ________. idealistic, quantifiable, and consumer-oriented situational, unattainable, and internal time specific, realistic, and quantifiable realistic, qualitative, and competitive quantifiable, research-based, and without regard to ethics
Answer:
The correct answer is: Time specific, realistic and quantifiable.
Explanation:
To begin with, a good marketing campaign must follow certain objectives in order to be fully successfull or at least as high as possible. Therefore that the best objectives to look for regarding marketing expertises are the facts that the objectives are realistic, so that means that it can be possible done by the budget of the company; quantifiable, so that means that the company can measure the benefits of using the campaign and see that the costs were worthy; and finally, time specific objectives, so that means that the company can know if their goals are being accomplished in the time expected.
Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida and wants to expand to other states. During 2019, she spends $14,000 to investigate TV rental stores in South Carolina and $9,000 to investigate TV rental stores in Georgia. She acquires the South Carolina operations but not the outlets in Georgia. As to these expenses, Iris should: a.Expense $9,000 for 2019 and capitalize $14,000. b.Expense $23,000 for 2019. c.Capitalize $23,000. d.Capitalize $14,000 and not deduct $9,000. e.None of these choices are correct.
Answer:
b.Expense $23,000 for 2019.
Explanation:
The computation is shown below:
= Spend in the investigation for the TV rental stores in South Carolina + Spend in the investigation for the TV rental stores in Georgia
= $14,000 + $9,000
= $23,000
Hence, the amount of expense $23.000 would be considered
Therefore the option b is correct
Fisher meeting with Bill Gates, CEO - Microsoft, to form alliances to develop new photo software that helped customers manipulate images, was an example of -
Answer: External horizontal diversification
Explanation:
External horizontal diversification is when new products or services are added to a company because they may appeal to the customers. This is a strategy that is used to increase the dependence of firm on certain segments of the market.
This was used when Fisher met with Bill Gates, CEO - Microsoft, to form alliances to develop new photo software that helped customers manipulate images.
Hermes International produces a Kelly handbag, named for the late actress Grace Kelly. Craftsmen stitch the majority of each $7,000 bag by hand and sign it when they finish. This is an example of _____ production.
The online retailer Lands' End communicates a remarkable commitment to its ________ with these unconditional words: "We accept any return, for any reason. Guaranteed Period."
Answer:
Customers
Explanation:
By making such statements the online retailer is trying to build trust with customers. And to satisfy their purchase experience about the value they will derive from the product. It is a good marketing strategy employed by some businesses today.
ABG Corporation has the following dividend forecasts for the next three years: Year Expected Dividend 1 $ .25 2 $ .50 3 $ 1.25 After the third year, the dividend will grow at a constant rate of 5% per year. The required return is 10%. What is the price of the stock today?
Answer:
Price of share today = $21.302
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
Step 1 : PV of dividend from year 1 to 3
Year PV of Dividend
1 0.25 × 1.1^(-1) = 0.227
2 0.50 × 1.1^(-2) = 0.413
3 1.25 × 1.1^(-3) = 0.939
Strep 2 : PV of dividend from year 4 to infinity
PV (in year 3 terms) of dividend= 1.25 × 1.05/(0.1-0.05) = 26.25
PV in year 0 terms = 26.25 × 1.1^(-3) = 19.72
Present Value = 0.227 + 0.413 + 0.939 + 19.72 = 21.302
Price of share today = $21.302
Sager Industries is considering an investment in equipment that will replace direct labor. The equipment has a cost of $86,000 with a $7,000 residual value and a 10-year life. The equipment will replace three employees who has an average total wages of $15,810 per year. In addition, the equipment will have operating and energy costs of $4,190 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment.
Answer:
130.77%
Explanation:
depreciation expense per year using straight method = (purchase cost - salvage value) / useful life = ($86,000 - $7,000) / 10 = $7,900
total costs = depreciation expense + operating and energy costs = $7,900 + $4,190 = $12,090
average rate of return = total savings / total costs = $15,810 / $12,090 = 1.30769 = 130.77%
Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 23 years to maturity that is quoted at 103 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. a. What is the company’s pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the tax rate is 21 percent, what is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Viserion, Inc.
Cost of debt:
Premium on Debt = 3% (103 - 100%)
Amortization of the premium = 3%/23 = 0.13%
Interest cost = 6%
Cost of debt (pretax) = 6% - 0.13% = 5.87%
Explanation:
The cost of debt is the difference between the interest expense in percentage that Viserion, Inc. pays annually and the premium on the debt that must be amortized over the life of the debt. Since Viserion, Inc. pays 6% annually or 3% semiannually on the debt and amortizes 0.13% of the debt premium, the amortization rate is taken away from the annual interest to get the cost of debts in percentage terms.
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,116 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.04 each. The following cost information is provided
Direct Materials per unit $6.34
Direct Labor per unit $7.30
Variable Factory Overhead per unit $2.50
Fixed Factory Overhead per unit $7.50
How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves?
Answer:
If the company buys the part, it will save $$6,559.6
Explanation:
Giving the following information:
Purchase price= $13.04
The company uses 2,116 units of this part annually.
Production:
Direct Materials per unit $6.34
Direct Labor per unit $7.30
Variable Factory Overhead per unit $2.50
We weren't provided with information regarding the fixed costs. I will assume that non of the fixed overhead costs are avoidable, therefore, they are irrelevant to the decision making process.
Buy:
Total cost= 2,116*13.04= $27,592.64
Production:
Total cost= 2,116*(6.34 + 7.3 + 2.5)= $34,152.24
If the company buys the part, it will save $$6,559.6
In the case when the company buys the part, it will save $6,559.6.
Calculation of the value of part:Since
Purchase price= $13.04
Direct Materials per unit $6.34
Direct Labor per unit $7.30
Variable Factory Overhead per unit $2.50
Now
For Buy:
Total cost= 2,116*13.04= $27,592.64
For Production:
Total cost= 2,116*(6.34 + 7.3 + 2.5)= $34,152.24
So, we can say that In the case when the company buys the part, it will save $6,559.6.
Learn more about material here: https://brainly.com/question/24555844
Yarim corporation produces and sells 6500 units per month of a single product for a price of $170 per unit variable costs are $24 per unit and monthly fixed costs are $120 per unit.
Per Unit Percent of Sales
Selling price $180 100%
Variable expenses 54 30%
Contribution margin $126 70%
The company is currently selling 5,500 units per month. Fixed expenses are $383,300 per month. The marketing manager believes that a $6,500 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
A. Decrease of $6,500.
B. Increase of $4,700.
C. Increase of $11,200.
D. Decrease of $4,700.
Answer:
Effect on income= $11,140 increase
Explanation:
Giving the following information:
Contribution margin $126
The marketing manager believes that a $6,500 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= total contribution margin increase - fixed costs increase
Effect on income= 140*126 - 6,500
Effect on income= $11,140 increase
Journalize the following transactions in the accounts of Simmons Company:
Mar. 1 Received a $60,000, 60-day, 6% note dated March 1 from Bynum Co. on account.
18 Received a $25,000, 60-day, 9% note dated March 18 from Solo Co. on account.
Apr. 30 The note dated March 1 from Bynum Co. is dishonored, and the customer’s account is charged for the note, including interest.
May 17 The note dated March 18 from Solo Co. is dishonored, and the customer’s account is charged for the note, including interest.
July 29 Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Co. on April 30.
Aug. 23 Wrote off against the allowance account the amount charged to Solo Co. on May 17 for the dishonored note dated March 18.
Answer and Explanation:
The journal entries are shown below:
On Mar 1
Notes Receivable $60,000
To Accounts Receivable $60,000
(Being the note receivable is recorded)
On Mar 18
Notes Receivable $25,000
To Accounts Receivable $25,000
(Being the note receivable is recorded)
On Apr 30
Accounts Receivable $60,600
To Notes Receivable $60,000
To Interest Revenue ($60,000 × 2 ÷ 12 × 6%) $600
(Being the note receivable and interest revenue is recorded)
On May 17
Accounts Receivable $25,375
To Notes Receivable $25,000
To Interest Revenue ($25,000 × 9% × 2 ÷ 12) $375
(Being the note receivable and interest revenue is recorded)
On Jul 29
Cash $61,812
To Accounts Receivable $60,600
To Interest Revenue (60,600 × 8% × 90 ÷ 360) $1,212
(Being the note receivable and interest revenue is recorded)
On Aug 23
Allowance for Doubtful Accounts $25,375
To Accounts Receivable $25,375
(Being the allowance for doubtful debts is recorded)
International franchising is
International franchising is a business model that expands the franchising concept into the international marketplace. For example, you can use the rental car concept as a prime example. You can expand the concept of renting a car from a domestic market to an international market.
The Pennington Corporation issued a new series of bonds on January 1, 1987. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2016. Coupon payments are made semiannually (on June 30 and December 31).
A. What was the YTM on January 1, 1987?
B. What was the price of the bonds on January 1, 1992, 5 years later, assuming that interest rates had fallen to 10%?
C. Find the current yield, capital gains yield, and total return on January 1, 1992, given the price as determined in part b.
D. On July 1, 2010, 6 1/2 years before maturity, Pennington's bonds sold for $916.42. What were the YTM, the current yield, the capital gains yield, and the total return at that time?
E. Now assume that you plan to purchase an outstanding Pennington bond on March 1, 2010, when the going rate of interest given its risk was 15.5%. How large a check must you write to complete the transaction?
Answer:
A. What was the YTM on January 1, 1987?
since the bonds were sold at par, the YTM = coupon rate = 12%
B. What was the price of the bonds on January 1, 1992, 5 years later, assuming that interest rates had fallen to 10%?
0.5 = {60 + [(1,000 - m)/50]} / [(1,000 + m)/2]
25 + 0.025m = 60 + 20 - 0.02m
0.045m = 55
m = 55/0.045 = $1,222.22
C. Find the current yield, capital gains yield, and total return on January 1, 1992, given the price as determined in part b.
current yield = coupon / market price = $120 / $1,222.22 = 9.82%
capital gains yield = (P₁ - P₀)/P₀ = ($1,222.22 - $1,000)/$1,000 = 22.22%
total return = [(P₁ - P₀) + D]/P₀ = [($1,222.22 - $1,000) + $600] /$1,000 = 82.22%
D. On July 1, 2010, 6 1/2 years before maturity, Pennington's bonds sold for $916.42. What were the YTM, the current yield, the capital gains yield, and the total return at that time?
YTM = {60 + [(1,000 - 916.42)/13]} / [(1,000 + 916.42)/2] = 66.965 / 958.21 = 6.98856 x 2 (annual yield) = 13.98%
current yield = coupon / market price = $120 / $916.42 = 13.09%
capital gains yield = (P₁ - P₀)/P₀ = ($916.42 - $1,000)/$1,000 = -8.36%
total return = [(P₁ - P₀) + D]/P₀ = [($916.42 - $1,000) + $2,820] /$1,000 = 273.64%
E. Now assume that you plan to purchase an outstanding Pennington bond on March 1, 2010, when the going rate of interest given its risk was 15.5%. How large a check must you write to complete the transaction?
accrued interest = $60 x 2/6 = $20
0.075 = {60 + [(1,000 - m)/13]} / [(1,000 + m)/2]
0.03875(1,000 + m) = 136.92 - 0.07692m
38.75 + 0.03875m = 136.92 - 0.07692m
0.11567m = 98.17
m = 98.17 / 0.11567 = 848.71 + 20 (accrued interest) = $868.71