Answer:
Troy Engines, Ltd.
a. The financial advantage of buying from the outside supplier = $34,000
b. The outside supplier's offer should be accepted.
c. The financial disadvantage of buying from the outside supplier = $136,000.
d. The outside supplier's offer should not be accepted.
Explanation:
a) Data and Calculations:
Cost of Internal External
Production Procurement
Per Unit 20,000 Units Per Year
Direct materials $17 $340,000
Direct labor 10 200,000
Variable manufacturing overhead 2 40,000 $36 $720,000
Fixed manufacturing overhead, traceable 9 180,000
Fixed manufacturing overhead, allocated 12 240,000 240,000
Total cost $50 604,000 $960,000
a) Buying 17,000 carburetors:
Cost of Internal External
Production Procurement
Variable manufacturing cost 29 493,000 $36 $612,000
Fixed manufacturing overhead, traceable 9 153,000
Fixed manufacturing overhead, allocated 12 240,000 240,000
Total cost $50 $886,000 $852,000
The financial advantage of buying from the outside supplier = $34,000 ($886,000 - $852,000)
b) The segment margin of the new product launched:
a) Buying 17,000 carburetors:
Cost of Internal External
Production Procurement
Variable manufacturing cost 29 493,000 $36 $612,000
Fixed manufacturing overhead, traceable 9 153,000
Fixed manufacturing overhead, allocated 12 240,000 240,000
Total cost $50 $886,000 $852,000
New segment product's margin (170,000)
Net total cost $716,000 $852,000
The financial disadvantage of buying from the outside supplier = $136,000 ($716,000 - $852,000).
Josephine quits her $40,000 a year job to start her own business. She rents an office for $15,000 a year, pays wages and salaries of $50,000 a year, utilities of $4,000 a year, and materials of $20,000. She uses her own car for sales work rather than leasing an equivalent car for $6000 a year. If revenues are $140,000, her accounting profit and economic profit are respectively.
a. $45,000 and $11,000.
b. $51,000 and $5000.
c. $45,000 and $5000
d. $51,000 and $45,000.
Answer:
b. $51,000 and $5000.
Explanation:
According to the scenario, computation of the given data are as follows,
Total Revenues = $140,000
Explicit cost = $15,000 + $50,000 + $4,000 + $20,000 = $89000
Implicit cost (opportunity cost) = $40,000 + $6,000 = $46,000
So, we can calculate accounting profit and economic profit by using following formula,
Accounting Profit = Total revenue - Explicit cost
By putting the value, we get
= $140,000 - $89,000
= $51,000
Economic Profit = Total revenue - Explicit cost - Implicit cost
By putting the value, we get
= $140,000 - $89,000 - $46,000
= $5,000
What is a disadvantage of merging cells? Merging cells combines formatting styles. Once cells are merged the process cannot be reversed. Multiple cells can be combined into one reference. Data functions in multiple cells may not be recognized.
Answer: Data functions in multiple cells may not be recognized.
Explanation:
When cells are merged on Excel, the data functions that were on the different cells that were merged may not be recognized in the merged cell so they will need to be inputted again.
This presents its own problem if the merged cells contained functions that had been used to calculate different things. The question then shifts to which function should stay in the merged cell out of the various functions that the composite cells had.
Arrange strategic planning analysis in correct order.
Business Planning
Corporate Planning
Product Planning
Division Planning
Benson Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Benson sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Benson's standard unit: variable cost per unit $37, fixed cost per unit $23, and selling price to outside customer $86. Berna currently purchases a standard unit from an outside supplier for $80. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Benson to provide 200,000 units per year at a transfer price of $35 per unit. Benson is already operating at full capacity. Benson can avoid $3 per unit of variable selling costs by selling the unit internally.
1. What is the minimum transfer price that Benson should accept? ,
2. What is the potential loss to the corporation as a whole resulting from this forced transfer?
Answer:
Potential loss to the whole corporation = $(60,000)
Explanation:
The Benson Division is operating at full capacity, hence it has no excess capacity .
This implies that it can not produce enough to meet both demand of internal and external buyers.
Hence, Benson Division cannot accommodate the demands of the Berna Division at a price lower than the external price, because it will result to a loss in contribution.
To maximize and optimize the group's profit in this scenario, the minimum transfer should be:
Minimum transfer price = External selling price - savings in selling cost resulting from in internal transfer
= $86-3= 83
Minimum transfer price = $83.
Effect on Group's profit
Any unit transferred at a priced lower than $83 would result in a unit loss to the Benson Division equal to $83 minus the transfer price.
Any unit transferred to Berna at a price lower that its current purchase cost would save the division an amount equal to the current purchase cost minus the forced transfer price.
The potential loss to the organization as a whole would be computed as the net effect of the following:
Lost contribution by Benson : The difference between the Minimum transfer price and the transfer imposed by the group company multiplied by the quantity transferred.
Savings made by the Berna Division : The difference between the forced transfer price and current purchase of Berna.
We can summarize the effect of the forced transfer price on the whole corporation as follows:
Lost contribution per unit = 83 - 35= 48 .
Savings made per unit = 80 - 35 = 45
$
Total lost contribution by Benson
(48 × 200,000) (960,000)
Savings made by Berna as result of the transfer
(45 × 200,000) 900,000
Potential loss to the group (60,000)
Potential loss to the whole corporation = $(60,000)
The following list of statements about corporations are given below. 1. A corporation is an entity separate and distinct from its owners. 2. As a legal entity, a corporation has most of the rights and privileges of a person. 3. Most of the largest U.S. corporations are publicly held corporations. 4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued. 5. The net income of a corporation is taxed as a separate entity. 6. Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. 7. The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder. 8. The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation. 9. The chief accounting officer of a corporation is the controller. 10. Corporations are subject to more state and federal regulations than partnerships or proprietorships.
Answer:
1. True
2. True
3. False
4. True
5. True
6. True
7. True
8. True
9. True
10. True
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
It is considered to be one of the most complicated and expensive type of organization. Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.
Some of the characteristics or features of a corporation are highlighted below;
1. True: A corporation is an entity separate and distinct from its owners.
2. True: As a legal entity, a corporation has most of the rights and privileges of a person.
3. False: Most of the largest U.S. corporations are publicly held corporations. Actually, most of them are privately held corporations.
4. True: Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.
5. True: The net income of a corporation is taxed as a separate entity.
6. True: Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.
7. True: The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder.
8. True: The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation.
9. True: The chief accounting officer of a corporation is the controller.
10. True: Corporations are subject to more state and federal regulations than partnerships or proprietorships.
what are good poem names
Answer:
It Depends.
Explanation:
It really depends on what poem you are writing. If it is a sad poem, chose words or phrases with a sad connotation. If it is a netrual poem, chose words with a neutral connotation. It is very hard to give you an answer because you gave very little explanation about what the poem is about, but at the end of the day, name the poem based on what you think it is about.
Answer:
if it is about music entitle it whatever the poem is about like if it about depression entitle it: feelings slide over me
Explanation:
PLEASE HELP ASAP!! THESE ARE TRUE OR FALSE!! WILL MARK BRAINLIEST!!
1. International trade has little effect on our daily lives as consumers and workers.
2. Making, buying, and selling goods and services within a country is known as international
business.
3. Another term for international business is foreign or world trade.
4. Among the advantages enjoyed by the U.S. in world trade is our own production of wool
and oil.
5. Things we buy from other countries are called exports.
6. It is necessary for the U.S. to import a variety of metals.
7. Goods and services we sell to other countries are called exports.
8. There are a number of challenges involved with international trade, but currency exchange
rates are not one of them.
9. A limit set on the quantity of a product that can be imported or exported is called an
embargo.
10. A balance of payments and a balance of trade are the same thing.
Answer:
1. false
2. true
3. true
4. false
5. true
6. true
Explanation:
because i took this test
Answer:
1. false
2. false
3. true
4. true
5. false
6. true
7. true
8. false
9. false
10. false
Explanation:
In 2017, PetSmart agreed to acquire Chewy (a fast-growing pet food and product e-commerce company) for $3.4 billion. PetSmart paid a premium, which can be calculated as the amount by which the price offered for the acquisition of Chewy is more than the Group of answer choices comparable value of similar companies to Chewy within the same market. amount paid as a down payment for Chewy that was to be held in escrow until closing. difference between the amount that was offered for Chewy and the amount that was held in escrow to complete the deal. the market value of Chewy before the acquisition. market value of Chewy's competitors in the geographic locale of the company.
Answer:
PetSmart and Chewy
PetSmart paid a premium, which can be calculated as the amount by which the price offered for the acquisition of Chewy is more than the
comparable value of similar companies to Chewy within the same market.
Explanation:
In accounting, this excess price paid for the assets and liabilities is known as Goodwill. It is specifically referred to as acquired or purchased Goodwill. It is accounted for as an intangible asset. More specifically, goodwill is the excess of the purchase price over the sum of the net fair value of all of the acquired assets and the assumed liabilities in the acquisition process.
Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock.
a. Paid the stockholder a smaller dividend per share than another common stockholder.
b. Rejected the stockholder's request to be put in charge of its retail store.
c. Rejected the stockholder's sale of stock on an organized exchange.
d. Rejected the stockholder's request to vote via proxy because she was home sick.
e. In liquidation, paid the common shareholder after preferred stockholders were already paid.
Answer:
a
c
d
Explanation:
A shareholder is a person that buys stocks of a publicly traded company. they are referred to as owners and are entitled to dividends. Dividends are a proportion of income
All common shareholders earn the same amount of dividends
prefferred shareholders are given higher preference that common shareholders
Lakeside Rides is adding a new roller coaster to its amusement park. The firm expects this addition to increase its overall ticket sales and increase attendance at its park. In particular, the firm expects to sell more tickets for its current roller coaster and experience extremely high demand for its new coaster. Sales for its boat ride are expected to decline but food and beverage sales are expected to increase significantly. Which of the following are considered side effects associated with the new roller coaster?
a. ticket sales for the new roller coaster
b. change in ticket sales for the existing roller coaster
c. change in ticket sales for the boat ride
d. change in food and beverage sales
Answer:
b. change in ticket sales for the existing roller coaster
c. change in ticket sales for the boat ride
d. change in food and beverage sales
Explanation:
The side effects that along with the new roller coaster is as follows:
a. There should be the change in the sale of the ticket with respect to the existing roller coaster
b. There should be the change in the sale of the ticket with respect to the boat ride
c. Also, there should be the change in the sale for food & beverages
So the above represent the side effects
Hence, b, c and d are the correct options
If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its quick ratio decreases from 0.2 to 0.15 over the same time period, this indicates: a. the current liabilities have decreased. b. the inventory management should be further examined. c. the liquidity must have increased. d. the accounts receivable have decreased.
Answer: b. the inventory management should be further examined.
Explanation:
The Quick ratio is calculated by deducting inventory from the current assets and then dividing that amount by current liabilities while the Current ratio is simply dividing the current assets by the current liabilities.
If the Current ratio increased, it means that the company has more current assets per current liabilities from last year. The fact that the quick ratio dropped however, points to most of the current asset increase being the inventory which means that the company is carrying a lot of inventory.
Their management of inventory such that they are carrying such amounts therefore needs to be further examined before a decision is made on their liquidity.
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $467,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $67,000. The purchase was recorded and paid for in 2022. Another supplier shipment costing $28,500 was correctly recorded as a purchase in 2021. However, the merchandise, shipped FOB shipping point, was not received until 2022 and was incorrectly omitted from the physical count. A third purchase, shipped from a supplier FOB shipping point on December 28, 2021, did not arrive until January 3, 2022. The merchandise, which cost $97,000, was not included in the physical count and the purchase has not yet been recorded.
The company uses a periodic inventory system.
Required:
a. Determine the correct December 31, 2021, inventory balance and, assuming that the errors were discovered after the 2021 financial statements were issued, analyze the effect of the errors on 2021 cost of goods sold, net income, and retained earnings. (Ignore income taxes.)
b. Prepare a journal entry to correct the errors.
Answer:
Tog Company
a. The correct December 31, 2021 balance of Inventory is
= $592,500.
b. The error increased the cost of goods sold, thereby reducing the net income and the retained earnings.
c. Journal Entries to correct errors:
Debit 2021 Inventory $67,000
Credit 2022 Inventory $67,000
To correct the error.
December 31, 2021
Debit Purchase $97,000
Credit Accounts Payable $97,000
To record the purchase of merchandise, shipped FOB shipping point on December 28, 2021.
Explanation:
a) Data and Calculations:
Physical count Inventory = $467,000
FOB shipping point 2021 = 28,500
December 28 FOB shipping point = 97,000
December 31, 2021 balance = $592,500
The error would increase the cost of goods sold, thereby reducing the net income and the retained earnings.
Journal Entries to correct errors:
December 31, 2021
a. 2021 Inventory $67,000 2022 Inventory $67,000. The records should be for 2021 and not 2022.
b. This only affects the physical count and not the records.
c. Purchase $97,000 Accounts Payable $97,000. Both the physical count and the records were omitted.
Michael McBride is an employee of Reach-it Pharmaceuticals. His company car is a 2019 Lexus GS 200t with a fair-market value of $50,000 and a lease value of $13,250, according to Publication 15-b. During the year, Michael drove 45,000 miles, of which 9,000 were for personal use. The car was available for use on 270 of the days during the year. All gasoline was provided by the employer and is charged back to Michael at $0.055 per mile. What is the amount of the company-car fringe benefit that will appear on Michael's W-2, using the lease-value rule
Answer:
Michael
The amount of the company-car fringe benefit that will appear on Michael's W-2, using the lease-value rule is:
= $1,960.27
Explanation:
a) Data and Calculations:
Fair market value of 2019 Lexus GS 200t = $50,000
Lease value of the company car = $13,250
Distance that Michael drove the car during the year = 45,000
Personal use of the car during the year = 9,000
Percentage of personal use = 9,000/45,000 * 100 = 20%
Availability of the car during the year = 270
Gasoline charged back to Michael by the employer = $0.055 * 45,000 * 20%
= $495
Company-car fringe benefit that will appear on Michael's W-2, using the lease-value rule is = $13,250 * 20% * 270/365 = $1,960.27
You believe that interest rate parity and the international Fisher effect hold. Assume that the U.S. interest rate is presently much higher than the New Zealand interest rate. You have receivables of 1 million New Zealand dollars that you will receive in one year. You could hedge the receivables with the one-year forward contract. Or, you could decide to not hedge. Is your expected U.S. dollar amount of the receivables in one year from hedging higher, lower, or the same as your expected U.S. dollar amount of the receivables without hedging
Answer:
The expected value is the same as the forward rate reflects the interest rate differential and expected spot rate as per the reflects the interest rate differential.
haraldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.2 ounces $ 5.00 per ounce $ 26.00 Direct labor 0.9 hours $ 14.00 per hour $ 12.60 Variable overhead 0.9 hours $ 5.00 per hour $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 4,400 units Actual output 4,600 units Raw materials used in production 25,000 ounces Purchases of raw materials 20,100 ounces Actual direct labor-hours 7,200 hours Actual cost of raw materials purchases $ 42,900 Actual direct labor cost $ 14,400 Actual variable overhead cost $ 4,200 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is:
Answer:
8,967
Explanation:
Problem 9-3 Withholding Methods (LO 9.1) Sophie is a single taxpayer. For the first payroll period in July 2020, she is paid wages of $2,200 monthly. Sophie claims one allowance on her pre-2020 Form W-4. Click here to access the withholding tables. IRS Publication 15-T, Federal Income Tax Withholding Method Pay period 2020 Allowance Amount Weekly $ 83 Biweekly 165 Semimonthly 179 Monthly 358 Quarterly 1,075 Semiannually 2,150 Annually 4,300 Round intermediate computations and your final answer to two decimal places. a. Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding: $fill in the blank 276f67fd3f97003_1 b. Use the wage bracket method to determine the amount of Sophie's withholding for the same period. $fill in the blank 92701d098054043_1 c. Use the percentage method assuming Sophie completed a 2020 Form W-4 and checked only the single box in Step 1(c). $fill in the blank 75763bf84f9d024_1 d. Use the wage bracket method using the same assumptions in part c of this question. $fill in the blank 73d4ce04b013fc1_1
A natural monopolya. exists when many sellers experience lower average total costs than potentialcompetitors do.b. exists when a firm has sole ownership of a natural resource.c. is an example of a government-created barrier.d. is needed to make a profit in the long run.e. exists when a single seller experiences lower average total costs than any potentialcompetitor.
Answer:
e. exists when a single seller experiences lower average total costs than any potential competitor.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public water supply company is an example of a monopoly because they serve as the only source of water provider to the general public in a society.
A natural monopoly exists when a single seller experiences lower average total costs than any potential competitor because of the very high start-up or initial cost and economy of scale.
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. How much should each division be charged for computer technology department services?
Answer:
Retail Division = $220,000
Commercial Division = $100,000
Explanation:
Step 1 : Determine the Overhead application rate
Overhead application rate = Overhead ÷ Total Activity
= $320,000 ÷ 4,000 hours
= $80 per hour
Step 2 : Apply the rate to the respective departments
Applied Overhead = Overhead application rate x Department Activity
therefore,
Retail Division = $80 x 2,750 hours = $220,000
and
Commercial Division = $80 x 1,250 hours = $100,000
Answer:
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Additional data for the two divisions is following below: Retail Division Commercial Division $2,150,000 $1,200,000 800,000 175,000 Sales Cost of goods sold 1,300,000 Selling expenses Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations. 150,000 Hardy Company Divisional Income from Operations Commercial Division Retail Division Income from operations
Explanation:
Nelter Corporation, which has only one product, has provided the following data conceming its most recent month of operations:
Selling price 108
Units in beginning inventory 955
Units produced 2390
Units sold 3000
Units in ending inventory 345
Variable costs per unit
Direct materials 25
Direct labor 20
Variable manufacturing overhead 1
Variable selling and administrative 14
expense
Fixed costs
Fixed manufacturing overhead 64530
Fixed selling and administrative 9000
expense
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month
Required:
a. Prepare a contribution format income statement for the month using variable costing.
b. Prepare an Income statement for the month using absorption costing
Answer:
Part a
Nelter Corporation
Contribution format income statement for the month using variable costing
Sales ($108 x 3,000) $324,000
Less Cost of Sales ($138,000)
Contribution $186,000
Less Expenses
Fixed manufacturing overhead $64,530
Fixed selling and administrative $9,000
Variable selling and administrative (14 x 3,000) $42,000 ($115,530)
Net Income (loss) $70,470
Part b
Nelter Corporation
Income statement for the month using absorption costing
Sales ($108 x 3,000) $324,000
Less Cost of Sales ($219,000)
Gross Profit $105,000
Less Expenses
Fixed selling and administrative $9,000
Variable selling and administrative (14 x 3,000) $42,000 ($51,000)
Net Income (loss) $54,000
Explanation:
Calculation of Ending Units
Beginning Inventory 955
Add Production 2,390
Total Available for Sale 3,345
Less Sales (3000)
Ending Inventory 345
Variable Costs Calculations
Product Cost = Variable Manufacturing costs
= $25 + $20 + $1
= $46
Cost of Sales = units sold x product cost
= 3,000 x $46
= $138,000
Absorption Cost Calculation
Product Cost = Variable Manufacturing costs
= $25 + $20 + $1 + ($64,530 / 2,390)
= $25 + 20 + $ 1 + $27
= $73
Cost of Sales = units sold x product cost
= 3,000 x $73
= $219,000
Metlock, Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2020 through 2023, inclusive.
2015 2016 2017 2018
Income Statement Data
Sales revenue $131,770 (e) $111,819
Cost of goods sold (a) 38,162 36,026
Gross profit 92,208 81,083 (i)
Operating expenses 86,550 (f) 71,903
Net income (b) $4,774 (j)
Balance Sheet Data
Inventory $17,680 (c) $19,992 (k)
Accounts payable 7,888 8,840 6,256 (l)
Additional Information
Purchases of inventory on account 35,210 (g) $32,708
Cash payments to suppliers (d) (h) 33,524
Required:
Compute the gross profit rate and the profit margin for each fiscal year.
Answer:
Metlock, Inc.
2020 2021 2022
Gross profit rate = 70% 68% 68%
Profit margin = $5,658 $4,774 $3,890
Percentage margin 4.3% 4% 3.5%
Explanation:
a) Data and Calculations:
2020 2021 2022 2023
Income Statement Data
Sales revenue $131,770 (e) $111,819
Cost of goods sold (a) 38,162 36,026
Gross profit 92,208 81,083 (i)
Operating expenses 86,550 (f) 71,903
Net income (b) $4,774 (j)
Balance Sheet Data
Inventory $17,680 (c) $19,992 (k)
Accounts payable 7,888 8,840 6,256
Additional information:
Purchases of inventory
on account 35,210 (g) $32,708
Cash payments to
suppliers (d) (h) 33,524
2020 2021 2022 2023
Income Statement Data
Sales revenue $131,770 119,245 $111,819
Cost of goods sold 39,562 38,162 36,026
Gross profit 92,208 81,083 75,793
Operating expenses 86,550 76,309 71,903
Net income $5,658 $4,774 $3,890
Balance Sheet Data
Inventory $17,680 (c) $19,992 (k)
Accounts payable 7,888 8,840 6,256
Additional information:
Purchases of inventory
on account 35,210 (g) $32,708
Cash payments to
suppliers 27,322 (h) 33,524
a) = $131,770 - $92,208 = $39,562
b) = $92,208 - 86,550 = $5,658
c) =
d) = $35,210 - 7,888 = $27,322
e) = $38,162 + 81,083 = $119,245
f = $81,083 - 4,774 = $76,309
i) = $111,819 - 36,036 = $75,793
j) = $75,793 - 71,903 = $3,890
2020 2021 2022
Gross profit rate = Gross profit/Sales * 100
Gross profit 92,208 81,083 75,793
Sales revenue $131,770 119,245 $111,819
Gross profit rate = 70% 68% 68%
Profit margin = $5,658 $4,774 $3,890
Percentage margin = Net Income/Sales * 100
4.3% 4% 3.5%
How can you become a driver of change
Answer: 'Drivers of Change' (DoC) is an approach developed by DFID to address the lack of linkages between a country's political framework and the work of development agencies. The approach focuses on “the interplay of economic, social and political factors that support or impede' poverty reduction”.
Explanation:
Which of the following is not one of the drivers of supply chain performance? A. facilities B. procedures C. information D. inventory
B. Procedures is not one of the drivers of supply chain performance.
The four main drivers of supply chain performance are facilities, inventory, information, and transportation. These drivers help to determine how responsive and efficient the supply chain is.
Good facilities or locations ensure that the goods produced are in good condition till they are requested by consumers. The quality of the goods is also preserved. Efficient transportation ensures that goods get to the customers on time. Inventory which involves stock-taking helps salespeople to know what goods are available and readily provide customers with the needed information and stock. Information is also an essential factor. Knowledge of factors affecting pricing, push versus pull, forecasting, etc., helps decision-makers to know what is needed to improve the quality of goods and their delivery.Conclusively, Procedures are not one of the drivers of supply chain performance.
Learn more about supply chain performance here:
https://brainly.com/question/13441219
Calculate the transaction value (in $ thousands) of a theoretical company based on the information provided below. Current Share Price $18.00 Shares Outstanding (Thousands) 5,000 Total Debt ($ Thousands) $3,700 Cash ($ Thousands) $2,100 Acquisition Premium 10% Review Later $82,600 $115,700 $97,600 $100,600
Answer:
The Transaction Value (in $ thousands) is:
= $97,240
Explanation:
a) Data and Calculations:
Current Share Price $18.00
Shares Outstanding (Thousands) 5,000
Total market value = $90,000 ($18 * 5,000)
Total Debt ($ Thousands) $3,700
Cash ($ Thousands) $2,100
Net liability = $1,600 ($3,700 - $2,100)
Net fair value = $88,400
Acquisition Premium 10%
Premium = $8,840 ($88,400 * 10%)
Acquisition or Transaction value = $97,240 ($88,00 * 1.1)
b) The transaction value is the acquisition value of the theoretical company.
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 2.40 ounces $27.00 per ounce $64.80
Direct labor 0.60 hours $12.00 per hour 7.20
Variable manufacturing overhead 0.60 hours $3.50 per hour 2.10
Total standard cost per unit $74.10
During November, the following activity was recorded related to the production of Fludex
a. Materials purchased, 13,000 ounces at a cost of $330,200
b. There was no beginning inventory of materials; however, at the end of the month, 2,850 ounces of material remained in ending inventory
c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average 160 hours at an average pay rate of $11.00 per hour
d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead during November totaled $6,000
e. During November, the company produced 4,200 units of Fludex.
Required
1. For direct materials:
a. Compute the price and quantity variances
b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?
2. For direct labor:
a. Compute the rate and efficiency variances
b. In the past, the 20 technicians employed in the production of Fludex consisted of 7 senior technicians and 13 assistants. Durin November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Woulc recommend that the new labor mix be continued?
3. Compute the variable overhead rate and efficiency variances
Answer:
Becton Labs, Inc.
1. Direct materials:
a. Price variance
= $20,600 Favorable
Quantity variance
= $1,890 Unfavorable
b. The company can sign the contract provided it is made clear to the new supplier that price variations would not be welcome shortly after signing the contract, but will depend on the market realities.
2. Direct labor:
a. Direct labor rate and efficiency variances:
Direct labor rate variance
= $3,200 Favorable
Efficiency variance
= $8,160 Unfavorable
b. I would not recommend that the new labor mix be continued. The old mix may be working better because the labor efficiency cost increased with the new mix labor mix.
3. The variable overhead rate and efficiency variances:
Variable overhead rate variance
= $5,200 Favorable
Variable overhead efficiency variance
= $2,380 Unfavorable
Explanation:
a) Data and Calculations:
Standard Costs for 1 Unit of Fludex:
Standard Standard Standard Cost
Quantity or Hours Price or Rate
Direct materials 2.40 ounces $27.00 per ounce $64.80
Direct labor 0.60 hours $12.00 per hour 7.20
Variable manufacturing
overhead 0.60 hours $3.50 per hour 2.10
Total standard cost per unit $74.10
Activities recorded during November:
a. Materials purchased = 13,000 ounces at $330,300
Each ounce = $25.41 (330,300/13,000)
b. Materials used for production = 10,150 ounces (13,000 - 2,850)
Standard materials = 4,200 * 2.40 = 10,080 ounces
c. Direct labor hours = 20 * 160 = 3,200 hours
Standard labor hours = 0.60 * 4,200 = 2,520
Average labor rate = $11.00 per hour
Direct labor costs = $35,200 ($11.00 * 3,200)
d. Standard variable overhead = $11,200 (3,200 *$3.50)
Actual overhead incurred = $6,000
Actual overhead rate = $1.43 ($6,000/4,200)
e. Units produced = 4,200
1. Direct materials:
a. Price variance = (Actual price - standard price)* Actual units
= ($25.41 - $27.00)13,000 = $20,600 F
Quantity variance = (Actual quantity - Standard quantity) Standard Cost
= (10,150 - 10,080) * $27.00
= $1,890 U
b. The company can sign the contract provided it is made clear to the new supplier that price variations would not be welcome shortly after signing the contract, but will depend on the market realities.
2. Direct labor:
a. Direct labor rate and efficiency variances:
Direct labor rate variance = (Actual rate - Standard rate) * Actual hours
= ($11 - $12) * 3,200 = $3,200 Favorable
Efficiency variance = (Actual hours - Standard hours) * Standard rate
= (3,200 - 2,520) * $12
= $8,160 Unfavorable
b. I would not recommend that the new labor mix be continued. The old may be working better because the labor efficiency cost increased.
3. The variable overhead rate and efficiency variances:
Variable overhead rate variance = Actual costs − (AH × SR)
= $6,000 - (3,200 * $3.50)
= $6,000 - $11,200
= $5,200 Favorable
Variable overhead efficiency variance = (AH − SH) × SR
= (3,200 - 2,520) * $3.50
= $2,380 Unfavorable
Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,000 using a $190,000 mortgage. They have no other debts. Mack earns $61,000 per year, and Amy earns $75,000. Each has a retirement plan valued at approximately $15,000. They recently received an offer in the mail from their mortgage lender for a mortgage life insurance policy of $190,000. Their only life insurance currently is a $19,000 cash-value survivorship joint life policy. They each would like to provide the other with support for at least five years if one of them should die.
Required:
Assuming $18,000 in final expenses and $20,000 allocated to help make mortgage payments, calculate the amount of life insurance they should purchase using the needs-based approach.
Answer:
I do not have time to answer this question, but you could answer this question on a calculator and find out the order and if its multiplying, subtracting, dividing or adding.
Explanation:
Thank you!-Brainly UserAmy and Mack should purchase a life insurance policy with a coverage amount of $1,037,000, using the needs-based approach.
To calculate the amount of life insurance Amy and Mack should purchase using the needs-based approach, we need to consider various factors such as outstanding debts, living expenses, and specific financial goals. Given the information provided, we will calculate the life insurance amount required to cover final expenses and help make mortgage payments for at least five years.
Final expenses:
Final expenses = $18,000
Mortgage payment assistance:
Mortgage payment assistance per year = $20,000
Mortgage payment assistance for five years = $20,000 * 5 = $100,000
Outstanding mortgage:
Outstanding mortgage = $190,000
Current joint life policy:
Current joint life policy = $19,000
Income replacement:
Amy's income = $75,000
Mack's income = $61,000
Total annual income = $75,000 + $61,000 = $136,000
Income replacement for five years = $136,000 * 5 = $680,000
Retirement plan:
Amy's retirement plan = $15,000
Mack's retirement plan = $15,000
Total retirement plan = $15,000 + $15,000 = $30,000
Now, let's calculate the total life insurance amount needed:
Total life insurance needed = Final expenses + Mortgage payment assistance + Outstanding mortgage + Current joint life policy + Income replacement + Retirement plan
= $18,000 + $100,000 + $190,000 + $19,000 + $680,000 + $30,000
= $1,037,000
Therefore, using the needs-based approach, Amy and Mack should purchase a life insurance policy with a coverage amount of $1,037,000.
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A machine purchased three years ago for $360,000 has a current book value using straight-line depreciation of $200,000; its operating expenses are $30,000 per year. A replacement machine would cost $240,000, have a useful life of nine years, and would require $13,000 per year in operating expenses. It has an expected salvage value of $65,000 after nine years. The current disposal value of the old machine is $85,000; if it is kept 9 more years, its residual value would be $10,000.
Required:
a. Calculate the total costs in keeping the old machine and purchase a new machine.
Old machine New Machine
Total cost :
b. Should the old machine be replaced?
Yes
No
Answer: See explanation
Explanation:
a. Calculate the total costs in keeping the old machine and purchase a new machine.
The total costs in keeping the old machine will be:
Opportunity cost = $85000 - $10000 = $75000
Add: Opening costs = 30000 × 9 = $270000
Total cost = $75000 + $270000 = $345000
The total cost in buying a new machine will be:
Opportunity cost = $240000 - $65000 = $175000
Add: Opening costs = 13000 × 9 = $117000
Total cost = $175000 + $117000 = $292000
b. Should the old machine be replaced?
Yes. The old machine should be replaced because it's cost is higher.
As a consequence of automation and product diversity, in cost estimation Select one: A. companies no longer need to pay attention to estimating overhead. B. direct labor is playing an increasingly important role in cost determination. C. a facility level approach to estimating costs is increasingly important. D. cost estimation is improved with the inclusion of non-unit cost drivers.
Answer:
D. cost estimation is improved with the inclusion of non-unit cost drivers.
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production. The various type of costs are;
1. Product cost is the expenses incurred when a product is sold.
2. Period cost refers to the period in which costs are incurred.
3. Fixed cost refers to costs that remains constant over variations in production activity, irrespective of amount of goods.
3. Variable cost refers to cost which are the same per unit of production but vary directly with level of output.
4. Direct costs refer to the costs that are peculiar to a particular department or area while indirect cost can't be traced to any.
5. Manufacturing overhead are all indirect cost required in producing a good that isn't associated with direct materials or direct labor.
As a consequence of automation and product diversity, in cost estimation; cost estimation is improved with the inclusion of non-unit cost drivers.
Analyse the benefits of employee training to a business.
Explanation:
Boosts Employee Performance. ...
Improve Morale and Job Satisfaction. ...
Ensures Opportunities for Learning. ...
Opportunity to Identify Weaknesses. ...
Provide a Framework to Develop Strengths. ...
Encourages Innovation and Risk Acceptance. ...
Boosts Adherence to Quality Standards
Forecasting is the heart of planning process. Explain
Answer:
Forecasting is a very important step in the planning process, so much that without forecasting, the planning process for a project of a firm as a whole would not be possible.
Explanation:
The reason is that by definition, planning corresponds to a process that will be realized at some point in the future, (whether in the long or short-term depends on the planning horizon), and for the most part, information about the future is uncertain, and hard to predict. For that reason, the planning process must use forecasting methods to determine important variables like future sales, future revenue, future costs, and so on.
There are many forecasting techniques. For the most part, these techniques are statistical in nature and based on past information that is supposed to replicate somehow in the future. However, sometimes, more qualitative or intuitive forecasting methods are used, when statistical information is hard to come by.
The current price of the Volkswagen ADR (VWAGY) is 35.50. You purchase 50 shares on margin. You finance half of the purchase yourself and borrow the other half from your broker at an annual interest rate of 6.0%. Assume that the ADR pays an annual dividend of 0.56 per share. If the price in one year is 42, what is the return on your investment (keep in mind that you need to pay interest on the loan)
Answer:
33.77%
Explanation:
In one year, you are going to receive ($42 x 100) + ($0.56 x 100) = $4,256
you must return ($35.50 x 50) = $1,775
plus interests = $1,775 x 6% = $106.50
total return = $4,256 - $1,775 - $106.50 = $2,374.50
you invested $1,775
return on your investment = ($2,374.50 / $1,775) - 1 = 33.77%