Answer:
B
Explanation:
The first thing to do here is to calculate what the amount of money invested would be in 25 years given the interest rate.
Mathematically, that can be written as;
V = P(1 + r)^n
Where V is the future value
P is the present value which is $8,000
r is interest rate which is 6% (6/100 = 0.06)
n is the number of years which is 25 years
Now plugging these values into the equation, we have
V = 8,000(1 + 0.06)^25
V = 8,000(1.06)^25
V = $34,334.97 which is approximately $34,335
We can now proceed to get what this future value would be today if we take the inflation rate into consideration
Mathematically, this can work as follows
P = V(1 + i)^n
Where P is the present value of the money when the inflation is taken into consideration
V is the future value of the money which was calculated from above as $34,335
i is the inflation rate which is 1.8% per annum = (1.8/100 = 0.018)
n is the number of years which is 25
Substituting these values, we have;
P = 34,335/(1 + 0.018)^25
P = 34,335/(1.018)^25
P = 21,980.75
Which is approximately P = $21,981
The first year after you retire you want to be able to withdraw $100,000 from your savings account. Every year after that you want to increase your withdrawals by 2%. You expect that the account will earn 6% annual interest. How much money must you have in your savings account when you retire to make sure that your money lasts for 25 years
Answer:
Total amount of money to be had in savings is $1,544,352.63
Explanation:
First withdrawal is $100,000 and is increases by 2% every year till 25 years.
The amount required in savings account can be calculated by knowing the present value of growing annuity.
Annuity = [tex](p /(r-g) *[ 1 -(1+g / 1+r)^n][/tex]
given, p = $100,000
r = 6% = 0.06
g=2% = 0.02.
n = number of periods = 25.
= (100,000 ÷ (0.06 - 0.02)) × [ 1 - (1.02 ÷ [tex]1.06)^{25[/tex] ]
= $2,500,000 × [1 - 0.382258949]
= $2,500,000 × 0.61774105
= $1,544,352.63
Neil Andrews is the marketing manager for the National Basketball Association. Neil analyzes and tracks his marketing campaigns to determine the best success rate per project for increasing ticket sales. Neil uses an internal KPI to track his marketing campaign success. Which of the following would be an internal KPI Neil would use to track his marketing campaigns?
A. Marketing campaign market share eBook
B. Marketing campaign percentage of fans purchasing Sports Ilustrated magazine
C. Marketing campaign advertiser revenue sales
D. Marketing campaign ROI
Answer:
Option D
Explanation:
Neil Andrews, communications coordinator for that National Basketball Association. Neil evaluates and monitors its marketing strategies to assess the optimal rate of performance for a campaign to boost ticket prices. The ROI marketing campaign will be an internal KPI Neil used to track its marketing techniques.
Apps that are permitted to be installed on the company network, such as IM software and company computer equipment used mostly for personal purposes on online communities, are two fields that should be handled by organizational security administrators.
Thus, from the above we can conclude that the correct option is D.
upino Products provides the foundational data for this problem given that the unit product costs at a normal level of 5,000 units per month and selling price of $90 are as follows: Manufacturing costs: Direct materials............................................... $ 35 Direct labor...................................................... 12 Variable overhead............................................ 8 Fixed overhead (total for year = $300,000)...... 5 Selling and Admin costs: Variable............................................................ $ 15 Fixed (total for year = $480,000)...................... 8 This product is sold at a rate of 60,000 units per year. It is predicted that a price increase of $98 will decrease volume by 10%. An advertising campaign is proposed to support the price increase. How much can advertising expense be spent to support the price increase and without having operating income fall below the current levels?
Answer:
Available for advertizing campaing 480,000
Explanation:
First we calculate the current operating income:
sales price less all uniit operating cost
90 - 35 - 12 - 8 - 5 - 15 - 8 = 7
$7 x 60,000 units = $420,000 operating income
Now we calculate the new contribution margin and operating income
materials + labor + variable overhead + variable sale = total variable
35 + 12 + 8 + 15 = 70
new contribution margin per unit
98 - 70 = 28
sales 60,000 units less 10% = 54,000 units
contribution margin
28 x 54,000 = 1,512,000
Fixed overhead 300,000
Fixed selling and adming 480,000
operating income 732,000
Potential contribution from additional sales:
6,000 units x $28 = 168,000
Less: before raising income (420,000)
Available for advertizing campaing 480,000
Answer:
Explanation:
Statement showing calculation of current income
Particulars Amount
Sales (60000x90) $5400000
Less Material cost (60000x$35) $2100000
Less: labour cost (60000x$12) $720000
Less: Variable Overhead(60000x$8) $480000
Less: Variable selling and admin Exp.(60000x$15) $900000
Less: Fixed overhead $300000
Less: Fixed selling and admin expenses $480000
Net inome $420000
Proposed increase in Selling price = $98/unit
Resultant decrease in production = 10%X60000 = 6000 units
Revised income = 54000(98-35-12-8-15) - 300000 - 480000
= $732000
Maximum amount that can be spent on advertising so as to manitain the current level of income of $420000 is $312000 (i.e., $732000-$420000).
Unfortunately, Tori doesn't have enough money in her account right now. She needs to make additional contributions at the end of each of the next three years to be able to pay for the repairs. Her account currently has $5,000, which, along with her additional contributions, is expected to continue earning 9% annual interest. If she makes equal contributions each year, how large must each contribution be for Tori to have $9,000 after three years
Answer:
Annual deposit= $770.22
Explanation:
Giving the following information:
PV= 5,000
FV= 9,000
i= 0.09
n= 3
First, we need to calculate the final value of the first $5,000. We will use the following formula:
FV= PV*(1+i)^n
FV= 5,000*1.09^3
FV= 6,475.15
Now, we calculate the annual deposits for the difference:
Investment difference= 9,000 - 6,475.15= 2,524.85
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (2,524.85*0.09) / [(1.09^3)-1]
A= $770.22
If Home Depot was correct in that it was not discriminating, but simply filling positions consistent with those who applied for them (and very few women were applying for customer service positions), given your reading of this chapter, was the firm guilty of discrimination? If so, under what theory?
Answer:
Yes and the theory is stereotyping
Explanation:
In a workplace women are subjected to gender stereotyping.
Stereotyping is when there is a wrong belief or idea about people based on they look on the outside.
Most times this is a wrong belief or partially true. It is a form of prejudice because how the person is on the outside is not a true definition of who they are.
In this scenario women are made to feel they were not on the same level as male counterparts during promotions, hiring, and payment.
This prejudice was explained by home Depot to be based on experience. They said most women had experience as cashiers so the could only fill roles like cashier, customer care, and clerk
Evans Ltd. is now considering the possibility of offering a lifetime membership option to its subscribers. Under this proposal, subscribers could receive the monthly newsletter throughout their lives by paying a flat fee of $480. The one-year subscription rate of $40 would continue to apply to new and existing subscribers who choose to subscribe on an annual basis. Assume that the average age of Evans Ltd.'s current subscribers is 38 and their average life expectancy is 78 years. Evans Ltd.'s average interest rate on long-term debt is 12%.
Using the information given, calculate the present value of a lifetime membership for an average. (Round PV factors to 4 decimal places and final answer to 2 decimal places.)
Answer: $329.75
Explanation:
The one year subscription is $40 per year. It is estimated that the average age of current subscribers is 38 and they will leave on average to 78. This means that they will leave for,
= 78 - 38
= 40 years
Evans Ltd average interest rate on long-term debt is 12% so this means that we can use that 12% as a discount rate for the cash-flow expected.
I have attached a Present Value Interest Factor of an Annuity table to this question. It helps calculate annuities faster.
The above can be treated as an annuity because the $40 is constant every year.
The present value of the $40 over 40 years can be calculated by,
= $40 * present value Interest Factor of an Annuity for 40 years at 12% (look at the table for where 40 years on the y axis intersects with 12% on the x axis)
= $40 * 8.2438 (this is the figure when it is not rounded off to 3 dp)
= $329.752
= $329.75
This shows that the lifetime flat fee of $480 is more profitable for Evans Ltd as opposed to the yearly subscription. They should therefore try to sell more of the lifetime contract with the flat fee.
Crede Company budgeted selling expenses of $30,300 in January, $34,500 in February, and $40,300 in March. Actual selling expenses were $31,300 in January, $34,190 in February, and $48,300 in March. The company considers any difference that is less than 5% of the budgeted amount to be immaterial. Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date.
Answer:
Crede Company Selling expense report
By Month
Month Budget Actual expenses Difference
January $30,300 $ 31,300 $1,000 U
February $34,500 $ 34,190 $310 F
March $40,300 $ 48,300 $8,000 U
Year to date
Budget Actual expenses Difference
$30,300 $31,300 $1,000 U
$64,800 $65,490 $690 U
$ 105,100 $113,790 $8,690 U
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $150,000, $375,000, and $87,500, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.
Compute the overhead rate for each activity.
Machine setups $ per setup
Machining $ per machine hour
Inspections $ per inspection
Answer:
Machine setup= $60 per setup
Machining= $15 per machine hour
Inspections= $50 per inspection
Explanation:
Giving the following information:
Estimated overhead costs:
Machine setup= 150,000
Machining= 375,000
Inspections= 87,500
The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 150,000/2,500= $60 per setup
Machining= 375,000/25,000= $15 per machine hour
Inspections= 87,500/1,750= $50 per inspection
The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300 comma 000 units. If the production budget calls for Saphire to produce 1 comma 200 comma 000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018?
Answer:
Hi, the information you have provided is missing information regarding the Budgeted Sales of 1-gallon containers During the year.
However, the following points are provided to help solve the problem.
The Beginning inventory of 1-gallon containers on January 1, 2018 can be determined using the missing figure approach.
Production Budget for the year end December 31, 2018
1-gallon containers
Budgeted Production 1,200,000
Less Budgeted Sales (amount missing) XXX
Less Budgeted Closing Stock (300,000)
Budgeted opening Stock XXX
The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Suppose selected data from recent consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc. are presented here (in millions).
Coca-Cola PepsiCo
Total current assets $17,551 $12,571
Total current liabilities 13,721 8,756
Net sales 30,990 43,232
Cost of goods sold 11,088 20,099
Net income 6,824 5,946
Average (net) accounts
receivable for the year 3,424 4,654
Average inventories
for the year 2,271 2,570
Average total assets 44,595 37,921
Average common
stockholders’ equity 22,636 14,556
Average current liabilities 13,355 8,772
Average total liabilities 21,960 23,466
Total assets 48,671 39,848
Total liabilities 23,872 23,044
Income taxes 2,040 2,100
Interest expense 355 397
Net cash provided by
operating activities 8,186 6,796
Capital expenditures 1,993 2,128
Cash dividends 3,800 2,732
Collapse question part
(a1)
Compute the following liquidity ratios for Coca-Cola and for PepsiCo. (Round current ratio to 2 decimal places, e.g. 6.25 and all other answers to 1 decimal place, e.g. 15.1.)
Coca-Cola PepsiCo
(1) Current ratio : 1 : 1
(2) Accounts receivable turnover times times
(3) Average collection period days days
(4) Inventory turnover times times
(5) Days in inventory days days
Answer:
Please find the detailed answer in the explanation section.
Explanation:
1. Current ratio = total current assets ÷ total current liabilities
For Coca-cola: $17,551 ÷ 13,721
= 1.28
For Pepsi : $12,571 ÷ $8,756
= 1.44
2.Accounts receivable turnover times times = Net sales ÷ average (net) accounts receivable
For Coca-cola: $30,990 ÷ $3,424
= 9.1
For Pepsi : $43,232 ÷ $4,654
= 9.3
3. Average collection period days days = (Accounts Receivable ÷ Net sales ) x 365 days
For coca-cola: ($3,424 ÷ 30,990) x 365 days
=40.3 days
For pepsi: ($4,654 ÷ $43,232) x 365 days
= 39.3 days
4. Inventory turnover times = Sales ÷ Inventory
For Coca-cola: $30,990 ÷ $2,271
=13.6
For Pepsi: $43,232 ÷ $2,570
=16.8
5.Days in inventory days = (Average Inventory ÷ Cost of sales) x 365 days
For Coca-cola: ($2,271 ÷ $11,088 ) x365 days
=74.8 days
For Pepsi: ($2,570 ÷ $20,099 ) x365 days
=46.7days
Luis and Amy are programmers employed by X Corp. They work in cubicles next to each other. Both have M.Sc. degrees in computer science (Luis also has a Ph.D. in philosophy). They are about the same age, and have been with the company since its birth. Luis codes games, while Amy codes a variety of projects. Although their work is different, both jobs require the same skill level. Luis makes $100,000 a year, while Amy makes $80,000. If Amy sues X Corp. because of the pay differential, what must she show? What might the company argue in defense? Who should win?
Answer:
If Amy sues X Corp. because of the pay differential, what must she show?
The Equal Pay Act of 1963 prohibits discrimination in payment on the basis of gender (and race and origin also). In this case, Amy must prove that her work requires the same skills as Luis's and that it provides the same value to the company. They both have a master's degree in computer science, but she must also show that Luis's Ph.D. is not important to their work.
What might the company argue in defense?
The company might argue two things:
That Luis has a higher education degree, since he has a Ph.D. That Luis's work is more specialized since he codes games, while Amy codes different projects. They would have to prove that the games that Luis codes are much more profitable and valuable to the company than the work Amy does.Who should win?
If their work is similar, then Amy should win. If they are basically both doing the same job and require the same skills, therefore, the salary should be the same.
But if Luis's work is much more relevant and profitable for the company, then Amy would lose. If this is true, they might have to change Luis's compensation and reduce his salary but increase bonus compensation. This is true in all companies (or the vast majority of), e.g. the quarterback receives the highest salary since his job is more important for the team.
A customer wishes to open an account to fund payment of private middle school tuition. If the customer does not wish to deposit more than $2,000 per year and wishes to get a tax benefit, the best advice is for the customer to open a:
Answer: Coverdell Education Savings Account (ESA)
Explanation:
A Coverdell Education Savings Account (ESA) is a type of Trust account created by the US Government to help families fund the educational expenses of their members who are aged 18 or below.
This account is not Taxable as the US Government wants to use it as a way to encourage Educational Expenditure.
The account however is limited to a maximum deposit of $2,000 per year per beneficiary and so is perfect for the customer in question.
Harry owns a Cadillac and a Porsche. Ryan has always wanted a Porsche and knows Harry owns one. Harry decides to sell his Cadillac and buy a BMW. A mutual friend of Ryan and Harry tells Ryan, "Harry's selling his car." Thinking Harry is selling the Porsche (he does not know he also has a Cadillac), Ryan calls Harry and says, "I'll give you $9,500 for your car." Harry, thinking Ryan is talking about the Cadillac, says, "You've got a deal." On what grounds is the above agreement open for rescission
Answer:
mutual mistake
Explanation:
A mutual mistake happens when all the parties involved in a contract (two or more) are mistaken or do not know the correct information about some specific material fact that is relevant to the contract. In this case, the contract can be rescinded because Harry believes that Ryan wants to buy his Cadillac, while Ryan believes Harry is selling his Porsche.
Since both of them are mistaken and do not know relevant material facts regarding the contract, the contract can be terminated.
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity Standard Price Standard Cost
or Hours or Rate Per Unit
Direct materials 7.7 ounces $ 2.00 per ounce $ 15.40
Direct labor 0.8 hours $ 11.00 per hour $ 8.80
Variable overhead 0.8 hours $ 4.00 per hour $ 3.20
The company reported the following results concerning this product in June.
Originally budgeted output 3,100 units
Actual output 2,500 units
Raw materials used in production 22,300 ounces
Purchases of raw materials 23,400 ounces
Actual direct labor-hours 3,600 hours
Actual cost of raw materials purchases $ 45,100
Actual direct labor cost $ 13,100
Actual variable overhead cost $ 3,550
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 price variance for June is:_________.
Garrison 16e Rechecks 2017-10-31
Answer:
Direct material price variance= $1,638 favorable
Explanation:
Giving the following information:
Direct materials 7.7 ounces $ 2.00 per ounce $ 15.40
Purchases of raw materials 23,400 ounces
Actual cost of raw materials purchases $ 45,100
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 45,100/23,400= $1.93
Direct material price variance= (2 - 1.93)*23,400
Direct material price variance= $1,638 favorable
A cost center
A) only incurs costs and does not directly generate revenues.
B) incurs costs and generates revenues.
C) is a responsibility center of a company which incurs losses.
D) is a responsibility center which generates profits and evaluates the investment cost of earning the profit.
Answer: A---incurs costs and does not directly generate revenue.
Explanation:
A cost center is a department or unit in an organization which incurs cost on the organisation for its operation but does not directly add profit or directly generate revenue to the company.
Examples of a cost centre in a company include, The IT department., Research and Development Department.
For example the way in which an IT department, a cost centre in a company can indirectly generate revenue by operating efficiently and for the Research and Development Department is to develop a new promising product.
Your coin collection contains 59,1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2053, assuming they appreciate at an annual rate of 6.6 percent?
Answer:
The collection is worth $37,525.78.
Explanation:
Giving the following information:
Your coin collection contains 59 1952 silver dollars.
Interest rate= 6.6%
Number of years= 2053 - 1952= 101 years
To calculate the value of the collection today, we need to use the following formula:
FV= PV*(1+i)^n
FV= 59*(1.066^101)
FV= $37,525.78
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 116,000 $ 58,000 $ 174,000 Variable expenses 35,800 7,700 43,500 Contribution margin $ 80,200 $ 50,300 130,500 Fixed expenses 83,250 Net operating income $ 47,250 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Claimjumper Makeover
Total Sales:
Claimjumper= $116,000
Makeover= $58,000
Total= $174,000
Variable expenses:
Claimjumper= $35,800
Makeover= $7,700
Total= $43,500
Contribution margin:
Claimjumper= $80,200
Makeover= $50,300
Total= $130,500
Fixed expenses 83,250
Sales proportion:
Claimjumper= 116,000/174,000= 0.67
Makeover= 58,000/174,000= 0.33
Variable cost proportion:
Claimjumper= 35,800/43,500= 0.82
Makeover= 7,700/43,500= 0.18
First, we need to calculate the contribution margin ratio for the company:
Weighted average contribution margin ratio= (weighted average selling price - weighted average unitary variable cost)/ weighted average selling price
Weighted average contribution margin ratio= 130,500/174,000
Weighted average contribution margin ratio= 0.75
Now, we can calculate the break-even point in dollars:
Break-even point (dollars)= fixed costs/ Weighted average contribution margin ratio
Break-even point (dollars)= 83,250/0.75
Break-even point (dollars)= $111,000
Finally, we structure the income statement:
Sales= 111,000
Total variable costs= (111,000*0.25)= (27,750)
Income statement:
Sales:
Claimjumper= 111,000*0.67= 74,370
Makeover= 111,000*0.33= 36,630
Variable costs:
Claimjumper= 27,750*0.82= (22,755)
Makeover= 27,750*0.18= (4,995)
Contribution margin= 83,250
Fixed costs= 83,250
Net operating income= 0
Analyzing Accounts Receivable Changes The comparative balance sheets of Sloan Company reveal that accounts receivable (before deducting allowances) increased by $15,000 in 2013. During the same time period, the allowance for uncollectible accounts increased by $2,100. If sales revenue was $120,000 in 2013 and bad debts expense was 2.5% of sales, how much cash was collected from customers during the year?
Answer:
Cash was collected from customers during the year was $ 104,100
Explanation:
Sales revenue = $120,000
Bad debt expense = 2.5% of sales
Therefore, Bad debt expense = $120,000 x 2.5% = $3,000
Thus, allowance for uncollectible accounts should have increased by $3,000. But it increased by $2,100.
Therefore, uncollectible accounts receivable of $900 ($3,000 - $2,100) were written off during that year.
Cash collected from customers = Sales revenue - Increase in accounts receivable - Uncollectible accounts written off
= $120,000 - $15,000 - $900
= $104,100
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.20 per stone for quantities of 600 stones or more, $8.60 per stone for orders of 400 to 599 stones, and $9.10 per stone for lesser quantities. The jewelry firm operates 101 days per year. Usage rate is 19 stones per day, and ordering costs are $39. a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Order quantity stones b. If annual carrying costs are 21 percent of unit cost, what is the optimal order size
Answer:
a. 274
b. 295
Explanation:
a. Optimum Order
Optimum Order = √( (2×Total Annual Demand×Ordering cost per order) / Holding Cost per unit)
= √ ((2×101×19×$39) / $2)
= 273.57
= 274
b. Optimum Order
Optimum Order = √( (2×Total Annual Demand×Ordering cost per order) / Holding Cost per unit)
= √ ((2×101×19×$39) / $8.20 ×0.21)
= 294.83
= 295
Find the mean, median and mode for the above set of data
Answer:
a. Mean = 35.2 ≈ 35
b. Median = 35.6 ≈ 36
c. Mode = 36.6 ≈ 37
Step-by-step Explanation:
==>Given:
Class of ages in yrs
No. of cases of each class = f
Midpoint of each class = x
Product of midpoint and no. of cases of each class = fx
==>Required:
a. Mean
b. Median
c. Mode
==>SOLUTION:
a. Mean = (Σfx)/Σf
Σf = sum of no. of cases = 5+10+20+22+13+5 = 75
Σfx = 47.5+195+590+869+643.5+297.5 = 2,642.5
Mean = 2,642.5/75 = 35.2 ≈ 35
b. Median = Lm + [((Σf/2) - Cfb)/fm]Cw
Our median is between the 37th and the 38th term, which can be found in the class interval 35-44. This is our median class.
Lm = Lower class boundary of the median class = lower limit of the Medina class + upper limit of the class before the median class ÷ 2 = (35+34)/2 = 34.5
Σf/2 = 75/2 = 37.5
Cfb = Cumulative frequency of class before the median class = 5+10+20 = 35
fm = frequency of the Medina class = 22
Cw = Class width = upper class boundary - lower class boundary = 44.5-34.5 = 10
Median = 34.5 + [(37.5-35)/22] × 10
= 34.5 + [2.5/22] × 10
= 34.5 + [25/22]
= 34.5 + 1.1
= 35.6 ≈ 36
c. Mode = Lm + [∆¹/(∆¹+∆²)]Cw
Modal class = (35-44) [i.e. the class with the highest frequency, which is where our mode falls in]
Lm = lower class boundary of the modal class = lower limit of the modal class + upper limit of the class before the modal class ÷ 2 = (35+34)/2 = 34.5
∆¹ = difference between the frequency of the modal class & the frequency of the class before the modal class = 22 - 20 = 2
∆² = difference between the frequency of the modal class & the frequency of the class after the modal class = 22 - 13 = 9
Cw == Upper class boundary - Lower class boundary = 44.5 - 34.5 = 10
Mode = 34.5 + [2/(2+9)] × 10
= 34.5 + [2/11] × 10
= 34.5 + [20/11]
= 34.5 + 1.8
Mode = 36.6 ≈ 37
When Sandra and Charles Givens were divorced, the court ordered a division of property and awarded Sandra $65,000. The award was a judgment against Charles, who failed to pay it. Sandra asked the court to find Charles in contempt. Their lawyers had a conference with the judge, and they agreed that Charles would pay $2500 immediately and $300 per month until the judgment was paid in full. Charles alleged that the new payment schedule was a binding contract, because Sandra had accepted his offer of payments. Was it a contract
Answer:
Yes, it is a binding contract.
Explanation:
A contract is a legal binding agreement between two or more parties at the court of law. The agreement could be in terms of money, services, right or duties between the parties involved.
Since a consent has been reached between the two parties before the judge, Charles would pay the sum in the stipulated manner. The acceptance of the offer of payment by Sandra made it a binding contract for Charles, so he is bound by this service until he pays the full amount to Sandra.
Home Corporation will open a new store on January 1. Based on experience from its other retail outlets, Home Corporation is making the following sales projections: Cash Sales Credit Sales January $60,000 $40,000 February $30,000 $50,000 March $40,000 $60,000 April $40,000 $80,000 Home Corporation estimates that 70% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale. In a cash budget for April, the total cash receipts will be:
Answer:
$97,000
Explanation:
The computation of the total cash receipts for the month of April is shown below:
= Cash sales in April + (Credit sales in February × following second month percentage) + (Credit sales in March x following month percentage)
= $40,000 + ($50,000 x 30%) + ($60,000 x 70%)
= $40,000 + $15,000 + $42,000
= $97,000
We simply added the cash sales for one month and the credit sales for two months so that the total cash receipts could come
esterday, Berryman Investments was selling for $50 per share. Today, the company completed a 7-for-2 stock split. If the total market value was unchanged by the split, what is the price of the stock today? Select the correct answer. a. $15.59 b. $12.99 c. $14.29 d. $16.89 e. $11.69
Answer:
The correct option is C, $14.29
Explanation:
A 7-2 stock split means that 7 shares now have the value of 2 shares held previously.
This simply means that a stockholder who had 2 shares before the stock split now has 7 shares.
The price of the share after the stock split the value of 2 shares before stock split divided by 7 shares i.e ($50*2)/7=$ 14.29
The correct option from the multiple choices is $ 14.29
Baker Industries’ net income is $26,000, its interest expense is $6,000, and its tax rate is 45%. Its notes payable equals $23,000, long-term debt equals $70,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.
Answer:
ROI=10%
ROIC=0.83
Explanation:
Net Income = $26,000
Interest expense = $6,000
Tax rate = 45%
Payable = $23,000
Long-term debt = $70,000
Common equity = $260,000
1. ROE = Net Income / Common equity
= 26,000 / 260,000
=0.1
=10%
2. ROIC = EBIT * (1-Tax rate) / Invested capital
EBIT = Net Income before tax + Interest
Net Income before tax = (Net income * 100) / (100-Tax rate)
Net Income before tax = 26000 * 100 / 100-45
=2600000 / 55
Net Income before tax = 47272.72
EBIT = 47272.72 + 6,000
=53272.72
Invested Capital = Note payable + Long term debt.+ Common Equity
=23000 +70000 +260000
=$353,000
Therefore ROIC = EBIT * (1-Tax rate) / Invested capital
ROIC= 53272.72 * (1-0.45) / 353,000
=53272.72*0.55 / 353,000
=292299.996/353,000
=0.8280
=0.83
ROIC= 0.83
When a change in depreciation method occurs:________. a. prior years' financial statements should be changed to reflect the newly adopted method. b. the change should be reported in current and future years. c. the cumulative effect of the change should be reflected on the income statement as of the beginning of the next year. d. the cumulative effect of the change in accounting principle should be classified as an discontinued operations on the income statement.
Mcleod, Inc. incurred fixed costs of $ 400 comma 000. Total costs, both fixed and variable, are $ 450 comma 000 when 59 comma 000 units are produced. It sold 30 comma 000 units during the year. Calculate the variable cost per unit. (Round your answer to the nearest cent.)
Answer:
Unitary variable cost= $1.72
Explanation:
Giving the following information:
Mcleod, Inc. incurred fixed costs of $400,000.
Total costs= $450,000
Units produced= 59,000
First, we need to calculate the total variable cost:
Total variable cost= total cost - total fixed cost
Total variable cost= 450,000 - 400,000
Total variable cost= 50,000
Now, the unitary variable cost:
unitary variable cost= 50,000/29,000
unitary variable cost= $1.72
According to the Fair Value framework and to the lecture, what should companies try to do?
a. Offer fair value on all three bundles.
b. Offer better than fair value on all three bundles.
c. Offer fair value on two bundles and offer better than fair value on the other bundle.
Answer:
c. Offer fair value on two bundles and offer better than fair value on the other bundle
Explanation:
According to the Fair Value framework companies should try to Offer fair value on two bundles and as well try to offer better than fair value on the other bundle which simply means that in a situation where their are two bundles companies should tend to offer fair value on them and they should as well offer something that is far better than fair value on other bundle.
Therefore Fair value can be seen as an estimated price in which either asset or liability can be sold out or settled to a third party under recent and current market conditions.
The Model E extender fits with the 2 inch heavy duty hitches.The contract calls for 247 Model E extenders per week to be delivered in equal installments over the 16 weeks of the contract. The goal of Alpha Assemblies is to work 40 hours per week. The actual work time for completing the Model E extenders has been broken down by process in the table below. Also provided is the anticipated learning rate for each process. All processes must be performed in sequence and each step has its own separate and unique workcenter. To achieve the goal of working 40 hours per week or less, the cycle time must be lower than the takt time. What is the expected Cycle Time for Model E in Week 16? Note: learning is applied to the batch quantity per week. Do not try to break out the units within a week.Process Time Required per Unit Predecessor Task Learning RateA 9 82B 12 A 86C 18 B 81D 9 C 90E 12 D 80F 17 E 88G 14 F 83H 12 G 85I 8 H 82
Answer:
Cycle Time = 10.19482 minute
Explanation:
From the question :
The Model E can be illustrated perfectly as shown below:
Process Time Required Predecessor Task Learning Rate
per Unit
A 9 82
B 12 A 86
C 18 B 81
D 9 C 90
E 12 D 80
F 17 E 88
G 14 F 83
H 12 G 85
I 8 H 82
Now For the minutes per week for each Process; we have :
Process Time Required Predecessor Learning Minutes
per Unit Task Rate (Week 16)
A 9 82 4.069096
B 12 A 86 6.564098
C 18 B 81 7.74841
D 9 C 90 5.9049
E 12 D 80 4.9152
F 17 E 88 10.19482
G 14 F 83 6.644165
H 12 G 85 6.264075
I 8 H 82 3.616974
The objective here is to determine the expected Cycle Time for Model E in Week 16
So, we can equally regard the Cycle Time = Bottleneck of Activity for Week 16.
Cycle Time = 10.19482 minute in as much as it is the the largest activity time for the week 16
Given that the demand per week is : = 247
The available time per week = 40 hours = 40 × 60 hours = 2400 minutes
Talk Time = Available Time Per Week/Demand Per Week
Talk Time = 2400/247
Talk Time = 9.716599
Thus; here the cycle time is greater than the talk time.
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $24 $18 Machine-hours needed per unit 3 hours 2 hours The company can only perform 14,200 machine hours each period, due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?
Answer:
Largest possible total contribution margin = $127,800
Explanation:
Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product with he highest contribution per unit of the scare resource
The highest contribution from the 4,200 machine hours could be determined as follows:
Step 1 : Contribution per hour
Contribution per machine hour = contribution per unit/ machine hour
Product L Product C
$ $
Contribution 24 18
Machine hour 3 2
Contribution per hour 8/ hr 9/hr
Ranking 2nd 1st
Product C would be produced using the entire machine hours. Doing so would generate the highest contribution possible.
Contribution = contribution per hour × machine hours
= 9 × 14,200 = $127,800
Largest possible total contribution margin = $127,800
An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Rajiv can either mow 2 lawns or wash 1 car; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 1 lawn or wash 2 cars. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns.
(A) All three spend all their time washing cars
(B) All three spend half their time on each activity.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
(D) Identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Yakov Charles
Answer:
(A) All three spend all their time washing cars
In 10 hours Rajiv will wash 10 cars, because he can wash 1 car per hour.
Yakov will also wash 10 cars because he can wash 1 car per hour.
And, Charles will wash 20 cars because he can wash 2 cars per hour.
(B) All three spend half their time on each activity.
In 5 hours, Rajiv will mow 10 lawns, and wash 5 cars.
Yakov will mow 5 lawns and wash 5 cars.
And Chalres will mow 5 lawns and wash 10 cars.
(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.
Rajiv will mow 10 lawns and wash 10 cars.
Yakov will wash 10 cars.
And Charles will mow 10 lawns.
(D) Identify the opportunity cost of washing cars for each worker.
For Rajiv, the opportunity cost of washing 1 car is not mowing 2 lawns.
For Yakov, the opportunity cost is not mowing 1 lawn.
For Charles, the opportunity cost is not mowing half a lawn.
