Answer:
a. Popcorn sales would fall by 10%.
b. Popcorn sales would fall by 25%.
Explanation:
Question wants to know how much popcorn sales would fall by if the price increased by 20% and 50%.
a. Price increased by 20%
Price elasticity measures the change in quantity demanded as a result of a change in price. For normal goods it is assumed that the elasticity is negative which means that an increase in price leads to a decrease in quantity demanded:
Change in quantity demanded = elasticity * change in price
= 0.5 * 20%
= 10%
Popcorn sales would fall by 10%.
b. Price increased by 50%:
= 0.5 * 50%
= 25%
Popcorn sales would fall by 25%.
Blossom Company incurs these expenditures in purchasing a truck: cash price $26,470, accident insurance (during use) $2,080, sales taxes $1,660, motor vehicle license $570, and painting and lettering $2,190. What is the cost of the truck
Answer:
$30,320
Explanation:
With regards to the above, the cost of the truck would be
= Cash price $26,470 + Sales tax $1,660 + Painting and lettering $2,190
= $30,320
Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period
Answer:
232
Explanation:
Calculation for what is the exponential smoothing forecast value for the following period
Exponential smoothing forecast value=230 + 0.1 * (250-230)
Exponential smoothing forecast value=230 + 0.1*20
Exponential smoothing forecast value = 232
Therefore the exponential smoothing forecast value for the following period will be 232
True or False: In a competitive labor market, increasing the minimum wage always raises the number of employed workers.
It is FALSE that in a competitive labor market, increasing the minimum wage always raises the number of employed workers.
This is because when the minimum wage increases, the cost of employing and maintaining employees will increase.This situation would, however, reduce the capacity at which firms or companies can employ more staff.Thus, the unemployment rate would increase, as there will be less financial means to employ additional workers.Hence, in this case, it is concluded that in a competitive labor market, increasing the minimum wage always lowers the number of employed workers.
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14. If a company issues common stock for $40,000 and uses $30,000 of the cash to
purchase a truck,
a. assets will be increased by $10,000.
b. equity will be reduced by $40,000.
assets will be increased by $40,000.
d. assets will be unchanged.
If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck, assets will be increased by $10,000. Thus, option 'A' is the correct option.
What are common stocks?A form of corporate equity ownership and a kind of security is common stock. Outside of the United States, the words voting share and ordinary share are widely used. In the UK and other Commonwealth nations, they are referred to as equity shares or ordinary shares. This kind of share entitles the bearer to a portion of the company's income as well as voting rights on corporate policy and the make-up of the board of directors.
Any specific corporate assets do not belong to common stockholders; instead, they are owned equally by all shareholders. In the event that a corporation issues both ordinary and preference shares, the preference owners will be paid dividends first.
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Firms that were successful in the past can fail today because A) they keep pace with changes in the nature of competition. B) the company strategy is outdated. C) their financial situation is resilient. D) management monitors the relevant environmental factors regularly.
Answer:
b
Explanation:
If a company's strategy is outdated, the company might fail today.
For example, let us assume that all companies in an industry advertise on social media and tailor their products to the teenagers. But a company continues to advertise only on radio and newspaper. Very soon the company will fail.
Or if a media company doesn't incorporate social media to reach customers. With less people reading newspaper, if the company sticks only to newspapers, soon it would fail
other options contribute to success of a firm
In what ways are consumer preferences changing in Ford’s different market segments and geographies? Are consumers able to articulate what they will be eager to buy five years from now?
Answer:
The summary including its discussion is characterized throughout the explanation segment elsewhere here.
Explanation:
Consumer preferences start changing throughout the distinct markets and regions of Ford owing to all of the corporation's product categories. This same Ford engine will use the quality characteristics, advantages given, use circumstance, product category, difference to a rival company or far from some kind of competitive edge to modify customer preferences throughout various market categories as well as geographic areas.
Because once positional awareness orientation has been established, a range of different strategic strategy will be established for the specific customers & component throughout different geographical areas as well as the appropriate potential benefits will be tried to interact to encourage Ford goods in smaller client segments. Selection changes are however helped bring about by considerations including the toughness as well as the credibility of the organization, the marketing techniques including its competing companies, the characteristics of the industry as well as the differentiation throughout the items provided throughout the category as well as the real economy.Developments are indeed evident. Consumers seem to be smarter than producers that have ever been assumed. 5 years within next, potential customers would then prefer buying cars from institutions that care about either the ecological footprint, not even just investment rewards, and even provide individuals the increased opportunity of going so much from public equipment thru the equipment made.On December 31, 2015. management had determined that it would not be able to collect the $1,200 owed to It by its customer Acme. Inc. On September 15, 2016, a check in the amount of $600 was unexpectedly received from Acme Management does not expect any future collections from Acme. (The company uses the direct write-off method to account for its uncollectible accounts.)Required:
Prepare the necessary journal entry to record the events. (Use a compound entry Instead of preparing two separate journal entries.)
Answer:
December 31, 2015, bad debt written off
Dr Bad debt expense 1,200
Cr Accounts receivables 1,200
September 15, 2016, write off is partially reversed and a partial payment is collected
Dr Accounts receivable 600
Cr Bad debt expense 600
Dr Cash 600
Cr Accounts receivable 600
Invisible Hand School of Social Responsibility Group of answer choices Advises managers to be responsible to shareholders by being responsive to the larger society. Role of business is to serve larger society and it does so best when serving shareholders only. Advises managers to serve shareholders and to act only with shareholders' interests in mind. Role of business is to serve larger society, so it should serve the needs of the larger society.
Answer:
The right alternative is Option b (Role of...............................shareholders only).
Explanation:
As per another invisible hand mode of philosophy, the business serves a wider community unless it serves its institutional investors. Whenever the company makes money, the stockholders seem to be effective as well as the organization would be likely to succeed even though the organization across the financial institution seems to have an increased amount of unemployment.Other selections are not comparable to just the example throughout the question. Therefore this option seems to be the appropriate one.
Match the terms relating to the basic terminology and concepts of corporate finance on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term Term Answer Description This benefit is conferred by the corporate form of organization in which an investor's personal responsibility for the debts of the business are limited to the amount the investor has invested in the firm
Finance A. Corporation B. This is the worth of a good or service as established by the discounted and current value of the item's cash flows C. This general term is given to an individual or a group that has an interest in, or is affected by, a business Treasurer Limited liability D. This position and title is held by the individual responsible for planning and managing how the firm is financed, when its funds are raised, and how its risks are managed. This is a company's attitude and standards of conduct toward its stakeholders, including its customers, stockholders, creditors, employees, suppliers, management, and the community This is a participant in a partnership, whose personal assets may not be seized to satisfy the debts of the partnership. This state-created entity is authorized to conduct business and offer its owners an investment with an unlimited life. Business ethicS E. Limited partner F. Double taxation of dividends Shareholder wealth maximization G. This is a disadvantage of the corporate organization since it requires taxes to be levied on both the income of the firm and the dividend income earned by its shareholders It addresses how financial resources are obtained, allocated, and managed by a person, a business organization, or a governmental entity H. Stakeholder I. Value J. This primary goal of financial management is evaluated by the effect of a decision or an action on the value of the firm.
Answer:
1. Limited liability
2. Value
3. Stakeholder
4. Treasurer
5. Business ethics
6. Limited partner
7. Corporation
8. Double taxation of dividend
9. Finance
10. Shareholder wealth maximization
Explanation:
1. Limited liability: This benefit is conferred by the corporate form of organization in which an investor's personal responsibility for the debts of the business are limited to the amount the investor has invested in the firm.
2. Value: This is the worth of a good or service as established by the discounted and current value of the item's cash flows.
3. Stakeholder: This general term is given to an individual or a group that has an interest in, or is affected by, a business.
4. Treasurer: This position and title is held by the individual responsible for planning and managing how the firm is financed, when its funds are raised, and how its risks are managed.
5. Business ethics: This is a company's attitude and standards of conduct toward its stakeholders, including its customers, stockholders, creditors, employees, suppliers, management, and the community.
6. Limited partner: This is a participant in a partnership, whose personal assets may not be seized to satisfy the debts of the partnership.
7. Corporation: This state-created entity is authorized to conduct business and offer its owners an investment with an unlimited life.
8. Double taxation of dividend: This is a disadvantage of the corporate organization since it requires taxes to be levied on both the income of the firm and the dividend income earned by its shareholders.
9. Finance: It addresses how financial resources are obtained, allocated, and managed by a person, a business organization, or a governmental entity.
10. Shareholder wealth maximization: This primary goal of financial management is evaluated by the effect of a decision or an action on the value of the firm.
Alice Copper has wages of $120,000 and dividend income from a mutual fund of $5,000. She has allowable itemized deductions of $9,000. Alice is a single person with no dependents. What is the amount of Alice's Taxable Income
Answer:
$112,600
Explanation:
Calculation for What is the amount of Alice's Taxable Income
Wages $120,000
Add Dividend Income $5,000
Adjusted Gross Income $125,000
($120,000+$5,000)
Less Standard Deduction(Single and no dependents) ($12,400)
Taxable Income $112,600
($125,000-$12,400)
Therefore the amount of Alice's Taxable Income will be $112,600
This style of leadership may stunt the development of employees and ties the organization’s success to its leader.
Free rein
Autocratic
Democratic
Answer:
Autocratic
Explanation:
In autocratic leadership, the manager or leader makes all decisions on behalf of the company or group. The leader does not seek or consider the inputs of others when making decisions. The autocratic leadership style is the same as the dictatorship style.
An autocratic leader issues orders or commands which the subordinates are expected to follow to the latter. When the organization archives success, all the credit goes to the leader.
Suppose a food pantry received a donation and allowed volunteers to vote on how the funds were to be spent. Three options were provided, with the donation only covering the cost of one project. The projects included improvements to the building, additional purchases of food, and purchasing a vehicle for food delivery. The majority of volunteers voted for purchasing additional food, with purchasing a vehicle coming in second. Since only one project could be funded, what is the opportunity cost of the decision to purchase additional food
Answer:
The opportunity cost of the decision to purchase additional food is the lost benefit that would have been derived if the decision was to purchase a vehicle for food delivery.
Explanation:
The opportunity cost in this scenario is the forgone benefit that would have been derived by the purchasing of a vehicle for food delivery, which was the second best option not chosen. In evaluating opportunity costs, the costs and benefits of every available option (improvements to the building, additional purchases of food, and purchasing a vehicle for food delivery) must be considered and weighed against the others. Since building improvements are ruled out, the decision choice is between purchasing a new vehicle and additional purchases of food.
Last year you purchased a new car for $18,500. Today you sold the car for $14,750. If the car's value is measured by what someone is willing to pay for it, what was the percentage change in the value of the a car
Answer:
-20.27%
Explanation:
Value = ($14,750 / $18,500) - 1 = -20.27%
The annual report of Oracle Corporation included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $323 million, accounts written off during the year of $145 million, balance in allowance at the end of the year $296 million. What did Oracle Corporation report as bad debt expense on the income statement for the year
Answer:
Oracle Corporation reported $118 million as bad debt expense on the income statement for the year.
Explanation:
This can be calculated using the following formula:
Balance in allowance at the end of the year = Balance in allowance at the beginning of the year + Bad debt expense - Accounts written off during the year ......................... (1)
Where:
Balance in allowance at the end of the year = $296 million
Balance in allowance at the beginning of the year = $323 million
Bad debt expense = ?
Accounts written off during the year = $145 million
Substituting the values into equation (1) and solve for Bad debt expense, we have:
$296 million = $323 million + Bad debt expense - $145 million
Bad debt expense = $296 million - $323 million + $145 million
Bad debt expense = $118 million
Therefore, Oracle Corporation reported $118 million as bad debt expense on the income statement for the year.
Which of the following is the most accurate statement regarding managers in today's world? Group of answer choices There is a greater need for customer focus than ever before. Managers are found almost exclusively in large corporations that have more than 500 employees. Managers are found almost exclusively in for-profit organizations. More than half of today’s managers are women.
Answer:
There is a greater need for customer focus than ever before.
Explanation:
Juan is temporarily between jobs while searching for a new one. This type of short-term unemployment is called __________ unemployment.
Answer:
frictional unemployment
Explanation:
An educational institution that sells shares to investors to make money
Incomplete question. Hence, In answered from a general economic perspective.
Answer:
is having an IPO
Explanation:
Of course, an IPO (Initial Public Offering) is one method that can be used to make/raise money by a business. Usually, the institution places its shares of stocks open for sale to investors.
Therefore, we can infer from the above statement that the educational institution was formerly privately owned, but since it started to sell its shares to investors so as to make money, it is having an IPO.
how do large corporation can help during the health crisis?
Answer:
they can donate
Explanation:
they can donate money and other stuff to
Testing the probability of a relationship between variables occurring by chance alone if there really was no difference in the population from which that sample was drawn is known as:
a.Chi-square test
b.Significance testing
c.Multiple regression analysis
d.Correlation coefficient
Answer:
b.significance testing is answer.
Explanation:
I hope it's helpful!
The process of determining the likelihood of a link between variables arising by chance alone if there was no difference in the population from which the sample was selected is called as Significance testing. Thus, option (b) is correct.
What is probability?Probability is an area of mathematics that deals with numerical representations of how probable an event is to occur or how likely a statement is to be true. The probability of an occurrence is a number between 0 and 1, where 0 denotes the event's impossibility and 1 represents certainty.
A test of significance is a formal technique for comparing observable facts to a claim (also known as a hypothesis) whose veracity is being evaluated. A claim is a statement concerning a parameter, such as the population percentage p or population mean. Therefore, it can be concluded that option (b) is correct.
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Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $20,000 bill from her accountant for consulting services related to her small business. Reese can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 12 percent on her investments. a. What is the after-tax cost if she pays the $20,000 bill in December? b. What is the after-tax cost if she pays the $20,000 bill in January? Use Exhibit 3.1. c. Should Reese pay the $20,000 bill in December or January? multiple choice 1 December January d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $20,000 bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) e. Should Reese pay the $20,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year? multiple choice 2 December January
Answer:
a. What is the after-tax cost if she pays the $20,000 bill in December?
= $20,000 x (1 - 32%) = $13,600
b. What is the after-tax cost if she pays the $20,000 bill in January?
total after tax cost (including investment revenue):
= $20,000 x (1 - 35%) = $13,000
= -$20,000 x 12% x 1/12 x (1 - 35%) = -$130
= $12,870
c. Should Reese pay the $20,000 bill in December or January?
January, since the after tax cost is lower
d. What is the after-tax cost if she expects her marginal tax rate to be 24 percent next year and pays the $20,000 bill in January?
= $20,000 x (1 - 24%) = $15,200
= -$20,000 x 12% x 1/12 x (1 - 24%) = -$152
= $15,048
e. Should Reese pay the $20,000 bill in December or January if she expects her marginal tax rate to be 32 percent this year and 24 percent next year?
December, since the after tax cost is lower
The advantages of focusing a company's entire competitive effort on a single market niche allows for
Answer:
scaling operations to serve the customer market segment
Explanation:
This allows for scaling operations to serve the customer market segment. By focusing on a single market they can ignore other markets and make all of their business decisions on growing their business specifically to meet all of the demand of that current market. This allows them to scale rapidly while also maintaining great customer service for their company in that market segment. This ultimately, allows for even faster growth for the company which correlates into increased profits.
The following classification scheme typically is used in the preparation of a balance sheet:
a.
Current assets
f.
Current liabilities
b.
Investments and funds
g.
Long-term liabilities
c.
Property, plant, and equipment
h.
Contributed capital
d.
Intangible assets
i.
Retained earnings
e.
Other assets
Using the letters above and the format below, indicate the balance sheet category in which an entity typically would place each of the following items. Indicate a contra account by placing your answer in parentheses.
1._____Long-term receivables
2._____Accumulated amortization
3._____Current maturities of long-term debt
4_____Notes payable (short term)
5._____Accrued payroll taxes
6._____Leasehold improvements
7._____Retained earnings appropriated for plant expans
8._____Machinery
9._____Donated capital
10._____Short-term investments
11._____Deferred tax liability(long term)
12._____Allowance for uncollectible accounts
13._____Premium on bonds payable
14. _____Supplies inventory
15._____Additional paid-incapital
16._____Work-in-process inventory
17._____Notes receivable (short-term)
18._____Copyrights
19._____Unearned revenue(long-term)
20._____Inventory
Answer:
Long-term Receivables: Other Assets
Accumulated Amortization: Intangible Assets
Current maturities of long-term debt: Current Liabilities
Notes payable (short-term): Current Liabilities
Accrued payroll taxes: Current Liabilities
Leasehold improvements: Property, Plant and Equipment
Retained earnings appropriated for plant expansion: Retained Earnings
Machinery: Property, Plant and Equipment
Donated capital: Contributed Capital
Short-term investments: Current Assets
Deferred tax liability (long-term): Long-term Liabilities
Allowance for uncollectible accounts: Current Assets
Premium on bonds payable: Long-term Liabilities
inventory: Current Assets
Additional paid-in capital: Contributed Capital
The following classification scheme typically is used in the preparation of a balance sheet is Current assets. (a)
Other Assets - Long-term receivables Intangible Assets - Accumulated amortization Current Liabilities - Current maturities of long-term debtCurrent Liabilities - Notes payable (short term)Property, Plant and Equipment - Accrued payroll taxes Property, Plant and Equipment - Leasehold improvementsRetained Earnings - Retained earnings appropriated for plant expansionProperty, Plant and Equipment - MachineryContributed Capital - Donated capitalCurrent Assets - Short-term investmentsLong-term Liabilities - Deferred tax liability(long term)Current Assets - Allowance for uncollectible accountsCurrent Assets - Premium on bonds payableCurrent Assets - Supplies inventoryContributed Capital - Additional paid-incapitalLong-term Liabilities - Work-in-process inventoryContributed Capital - Notes receivable (short-term)Current Assets - CopyrightsContributed Capital - Unearned revenue(long-term)Current Assets - InventoryWhat is Current Assets?
In accounting, a current asset is any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a business within the current fiscal year or operating cycle or financial year.
What is Classification scheme?In information science and ontology, a classification scheme is the product of arranging things into kinds of things or into groups of classes.
What is a balance sheet?In financial accounting, a balance sheet is a summary of the financial balances of an individual or organization.
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Transaction costs include costs of negotiating contracts with other firms. cost of enforcing contracts. the existence of asset-specificity. All of these
Answer:
Negotiating contracts with other firms
Explanation:
Transaction costs are initial cost incurred entering into a contract with other parties. These include brokers fees and commissions. Thus, these costs are incurred when negotiating contracts with other firms.
Jiminez, Inc., had the following transactions during the month of March, current year. Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement.
Question Completion:
Cash received from bank loans was $10,000.
Revenues earned and received in cash were $9,000.
Dividends of $4,000 were paid to stockholders.
Expenses incurred and paid were $5,600.
Answer:
Jiminez, Inc.
Income Statement for the month ended March 31:
Revenue $9,000
Expenses 5,600
Net income $3,400
Dividends 4,000
Retained earnings during the year ($600)
Explanation:
Jiminez, Inc. paid more dividends to stockholders this month than it actually generated in net income. The excess amount of dividends must be from retained earnings carried forward from the previous month. In preparing the income statement for the month of March, Jiminez, Inc. must deduct all the expenses from its revenue to obtain the net income before tax. The bank loan does not form part of the items for the preparation of the income statement, as only temporary accounts are considered.
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.
Required:
Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand.
Cups of Coffee Served in a Week
2,000 2,100 2,200
Fixed cost ? ? ?
Variable cost ? ? ?
Total costs ? ? ?
Average cost per cup of coffee served ? ? ?
Answer:
fixed cost : $1,200 $1,200 $1,200
Varaible cost 440 462 484
Total cost 1640 1662 1684
Average cost 0.82 0.79 0.77
Explanation:
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Total cost = fixed cost + variable cost
Average cost = total cost / quantity produced
Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours. The company's total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $20,000 for variable overhead and $30,000 for fixed overhead. The predetermined overhead rate, including both fixed and variable components, is $2.50 per direct labor-hour. The standards call for two direct labor-hours per unit of output produced. Last year, the company produced 11,500 units of product and worked 22,000 direct labor-hours. Actual costs were $22,500 for variable overhead and $31,000 for fixed overhead.
Required:
a. What is the denominator level of activity?
b. What were the standard hours allowed for the output last year?
c. What was the variable overhead spending variance?
d. What was the variable overhead efficiency variance?
e. What was the fixed overhead budget variance?
f. What was the fixed overhead volume variance?
Answer:
Variable rate = 20000 /20000 = $1 per DLH
Fixed rate = 30000/20000 = $1.5 per DLH
Predetermined overhead rate = Variable rate + Fixed rate
Predetermined overhead rate = 2.5
a. Predetermined overhead rate = Estimated total fixed + variable overhead / Estimated level of activity
2.5 = (20,000 + 30,000] / Estimated level of activity
2.5 = 50,000 / Estimated level of activity
Estimated level of activity = 50,000 /2.5
Estimated level of activity = 20,000 Direct labor hours
b. Standard hours = Number of actual output * Standard hours per unit
Standard hours = 11,500 units * 2 hours
Standard hours = 23,000 hours
c. Variable overhead spending variance = Actual variable cost - [Actual hours *SR]
= 22500 - [22000*1]
= 22500 -22000
= 500 U
d. Variable overhead efficiency variance =SR[AH-SH allowed for actual output]
= 1*[22000 - (11500 units * 2)]
= 1*[22000 - 23000]
= 1*1000
= 1000 F
e. Fixed overhead budget variance = Actual fixed cost -budgeted fixed overhead cost
= 31000- 30000
= 1000 U
f. Fixed overhead volume variance = Budgeted fixed overhead cost - Standard fixed overhead cost allowed for actual output
= 30000 - [11500 units* 2SH*1.5 rate]
= 30000 - 34500
= 4500 F
The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September. Corporate headquarters building lease$78,000 Cosmetics Department sales commissions--Northridge Store$5,270 Corporate legal office salaries$66,500 Store manager's salary-Northridge Store$12,200 Heating-Northridge Store$20,400 Cosmetics Department cost of sales--Northridge Store$39,100 Central warehouse lease cost$9,800 Store security-Northridge Store$16,200 Cosmetics Department manager's salary--Northridge Store$4,310 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store
Answer:
the total amount of non-direct cost is $154,300
Explanation:
The computation of the total amount of non-direct cost is shown below:
= Corporate headquarters building lease + Central warehouse lease cost + Corporate legal office salaries
= $78,000 + $9,800 + $66,500
= $154,300
Hence, the total amount of non-direct cost is $154,300
What would it cost an insurance company to replace a family's personal property that originally cost $42,000
Answer: $48,300
Explanation:
The last part of the question is:
The replacement costs for the items have increased 15 percent.
The Insurance company will have to replace the total value of the family's property including whatever replacement costs that may have arisen.
Total cost = 42,000 * ( 1 + 15%)
= $48,300
Using time and materials pricing, what is the total price for a job requiring 2 direct labor hours and $59 of materials
Answer:
b. $221.5
Explanation:
Note: The similar question is attached as picture below
Particulars Amount
Materials $62
Materials markup (25% of $62) $15.5
Direct Labor (2 Hours at $72 per hour) $144
Total price for Job $221.5
Potter Corporation produces one product. The following per unit cost information is available:
Direct materials 7.00$
Direct labor 15.00
Variable overhead 8.00
Variable Selling and Admin 2.00
Fixed overhead costs are $100,000 per peiod and fixed selling and administrative costs are$70,000 per period.The selling price is $70 per unit.
Required:
Prepare an absorption costing (traditional) income statement assuming:
a. Production is 8,000 units and sales are 8,000 units.
b. Production is 8,000 units and sales are 9,000 units.
c. Production is 8,000 units and sales are 6,000 units.
Answer:
(a) Profit = $134,000
(b) Profit = $159,500
(c) Profit = $83,000
Explanation:
According to the scenario, calculation are as follows:
Variable cost of goods sold = Total variable production cost + fixed OH per unit
= ( $7 + $15 + $8) + ( $100,000 ÷ 8,000)
= $30 + $12.5
= $42.5
So, Absorption costing income statement are as follows:
(a) Production is 8,000 units and sales are 8,000 units
Sales = 8,000 × $70 = $560,000
Less: Variable expense
Variable cost of goods sold = 8,000 × $42.5 = 340,000
Less : Variable selling and admin expense
Variable selling and admin expense = 8,000 × $2 = $16,000
Fixed selling expense = $70,000
Profit = $134,000
(b) Production is 8,000 units and sales are 9,000 units
Sales = 9,000 × $70 = $630,000
Less: Variable expense
Variable cost of goods sold = 9,000 × $42.5 = $382,500
Less : Variable selling and admin expense
Variable selling and admin expense = 9,000 × $2 = $18,000
Fixed selling expense = $70,000
Profit = $159,500
(c) Production is 8,000 units and sales are 6,000 units
Sales = 6,000 × $70 = $420,000
Less: Variable expense
Variable cost of goods sold = 6,000 × $42.5 = $255,000
Less : Variable selling and admin expense
Variable selling and admin expense = 6,000 × $2 = $12,000
Fixed selling expense = $70,000
Profit = $83,000
