Answer:
27
Explanation:
The computation of the optimal stocking level for the bakery is shown below:
Given that
Cost = c = $7
Selling price = p = $ 10
salvage value = s = $ 5
Mean = 25
Standard deviation = [tex]\sigma[/tex]= 8
Now based on the above information
underage cost = Cu = p-c = $10 - $7 = $3
And,
overage cost = Co = c-s = $7 - $5 = $2
So,
[tex]\frac{P\leq C_{u}}{(C_{u}+C_{o})}\\\\\frac{P\leq3}{(3+2)}[/tex]
= 0.6
Now use normsinv() function in excel
So,
The Z value for the probability 0.6 is 0.2533
Now finally
The optimal stocking level is
[tex]=\mu +z\sigma[/tex]
= 25 + 0.2533 × 8
= 27.02
= 27
Does selling a product at below cost make business sense?
Answer:
Yes
Explanation:
Seeling a product at below cost means that a company sells a product with a price that is lower than its manufacturing cost and in certain situations it makes business sense to do it when customers buy the product and then, will need to buy accesories or complimentary products over time which will allow to make profit from the other products.
What are the most important information needs that a governmental annual report should fulfill for each of the following: __________1. Administrators/managers in the governmental entity. 2. Members of the legislative branch. 3. Interested citizens. 4. Creditors or potential creditors.
Answer:
1. Compensation for employment services that they offer.
2. Disbursement in sufficient proportions of the available funds.
3. How the government have used their tax money.
4. The ability and capacity of the government to honor debts.
Explanation:
Each stakeholder to the governmental annual report hold a different need compared to the other. Therefore it is important to pay attention to whom the financial statements speaks to. The above shows the different needs of the stakeholders to governmental annual report.
Documents issued by the FASB include all of the following except:________.a. Statements of Financial Accounting Standards.b. Interpretations of Statements of Financial Accounting Standards.c. Statements of Financial Accounting Concepts.d. Financial Reporting Releases.
Answer: Financial Reporting Releases
Explanation:
The Financial Accounting Standards Board is a body that was set up in order to create and also improve the Generally Accepted Accounting Principles that are within the United States so as to be beneficial to the public.
Documents issued by the FASB include • Statements of Financial Accounting Standards
• Interpretations of Statements of Financial Accounting Standards.
• Statements of Financial Accounting Concepts.
Therefore, the Financial Reporting Releases isn't among the documents issued.
The following balances are from the accounts of Tappan Parts: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 21,800 $ 24,600 Work-in-process inventory 32,300 29,200 Finished goods inventory 5,500 6,500 Direct materials used during the year amount to $46,000 and the cost of goods sold for the year was $52,700. Required: Prepare a cost of goods sold statement.
Answer:
Tappan Parts:
Cost of goods sold statement:
Beginning inventory:
Direct materials $21,800
WIP 32,300
Finished goods 5,500
Total $59,600
Purchases of materials 53,400
Available $113,000
less Ending inventory:
Direct materials $24,600
WIP 29,200
Finished goods 6,500
Total $60,300
Cost of goods sold $52,700
Explanation:
a) Data and Calculations:
January 1 (Beginning) December 31 (Ending)
Direct materials inventory $ 21,800 $ 24,600
Work-in-process inventory 32,300 29,200
Finished goods inventory 5,500 6,500
Direct materials used during the year amount to $46,000 and the cost of goods sold for the year was $52,700
b) The missing figure in the above statement is the purchases of raw materials. This is determined by adding the cost of goods sold to the ending inventory of raw materials, work in process, and finished goods. This gives the cost of raw materials, WIP, and finished goods available for sale. Then the beginning inventories of raw materials, WIP, and finished goods are deducted to obtain the amount of purchases of materials made during the period.
Select the correct answer.
Which word correctly completes this sentence?
Prefiero ___ camisas que están en la mesa.
A.
esos
B.
eso
C.
esas
D.
ésos
Answer:
C. esas
Explanation:
The Spanish Language use both gender and quantity in their pronouns
Thus as Shirt is considered female we neeed to use a female pronoun
The stress is on the next to last syllable therefore: It doesn't have a written accent
as it ends in "s" and their grammar states:
/n /s /vowels do not have the accent written when the stress is on the next to last syllable
Which of the following employees is most likely to be a hub? Multiple Choice Before his next project starts, Joseph wants his boss to explain the rewards for a good job. Lila values efficiency and precision in coworkers. Magdala tries hard to give everyone credit for their contributions. Khadija urges her team to be flexible and to consider all available options. Robert's coworkers see him as rigid and nit-picky.
Answer:
Khadija urges her team to be flexible and to consider all available options.
Explanation:
HUB which is an acronym of Historically Underutilized Business, is a form of business ventures or arrangement, whereby more than fifty percent is owned and control by a minority. For example, a woman, non-white Americans, etc, amongst others.
Hence, in this case, from the available options, Khadija is a female, and unlike Lila, she has a team of her own. This implies she is a leader and could be the owner or owned more than fifty percent in the company's ownership.
Therefore, the right answer is "Khadija urges her team to be flexible and to consider all available options."
School band members need to raise money for new uniforms. Some members want to sell energy drinks at a football game, but others want to organize a car wash in the school parking lot. Based on economics, what would be most influential in making the decision?
the labor needed
the consumer demand
the capital needed
the value of the resources
Answer:
The most influential in making the crucial decision is:
the consumer demand
Explanation:
Before the School Band members finalize on their decision about selling energy drinks and organizing a car wash, they will need to assess the demand for their product or service. This is critical because without effective demand, supply would be met with negative reactions which will not produce good results, no matter the decision taken.
Answer:
D: the value of the resources
Explanation:
Just took the test^_^
Match each of the numbered descriptions with the principle or assumption it best reflects. Enter the letter for the appropriate principle or assumption in the blank space next to each description.
A. Cost principle
B. Matching principle
C. Specific accounting principle
D. Full disclosure principle
E. General accounting principle
F. Business entity assumption
G. Revenue recognition principle
H. Going-concern assumption
1. Revenue is recorded only when the earnings process is complete.
2. Information is based on actual costs incurred in transactions.
3. Usually created by a pronouncement from an authoritative body.
4. Financial statements reflect the assumption that the business continues operating.
5. A company reports details behind financial statements that would impact users’ decisions.
6. A company records the expenses incurred to generate the revenues reported.
7. Derived from long-used and generally accepted accounting practices.
8. Every business is accounted for separately from its owner or owners.
Answer:
1 with G = Revenue Recognition Principle
2 with A = Cost principle
3 with C = Specific Accounting Principle
4 with H = Going concern assumption
5 with D = Full Disclosure Principle
6 with B = Matching Principle
7 with E = General Accounting Principle
8 with F = Business Entity Assumption
Explanation:
Revenue shall be recognised as at the time that their is 100% certain that the risk and reward associated is transferred to the customer. = Revenue Recognition Principle.
Cost Principle assumes to record transactions at its cost and not the market value.
Specific Accounting Principle is made with specific orders for specific industry.
Going concern assumption assumes that the business with continue to an infinite period of time and it will not end.
Full Disclosure principle requires to disclose all the material facts about business whether the effect is currently disclosed in financial statements or not.
Matching principle requires to record expense for each revenue earned.
General Accounting Assumption is old and applicable on all the businesses and industry.
Business Entity Assumptions assumes for business calculations that the owners are different from their business, and both are two separate identities.
Suppose that the price of a unit of medical care is $100 and the person sinsurance policy covers up to $100,000 in expenditures incurred on behalf of the insured individual per year. Show graphically how the maximum payment limit affects the quantity demanded. Assume a zero co-pay up to the limit.
Please find attachment
Answer and Explanation:
Please find attachment for full explanation
We can see from the graph that as the units in medical care demanded increases, insurance policy cover increases to meet maximum value =1000 units of medical care or $100000 in insurance policy cover for medical care
The bookstore of a university would be considered:
A) A cost center.
B) A profit center.
C) An investment center.
D) A revenue center.
A university would be considered an investment center.
What is an investment center ?An investment center is a division of a company that can use capital to make a direct profit contribution. The terms "profit center" and "cost center" are some examples of parallelism that you can compare and contrast.
A company's various departments are divided into two categories: those that make money and those that don't. Cost centers, profit centers, and investment centers are the three different categories into which organizational departments are divided. A cost center is evaluated based on how much it spends and is focused on lowering costs.
The marketing and human resources departments are two examples of the departments that make up the cost center. A profit center's efforts to produce profits through more sales or lower expenses are assessed based on the amount of profit it generates. The manufacturing and sales departments are examples of units that are included in a profit center. Profit and cost centers can also include divisions, initiatives, teams, subsidiary businesses, production lines, or machinery in addition to departments.
Thus, the option c is correct.
Learn more about Investment center, here:
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Which of these are considered rewards of practicing management? Building a catalog of successful products or services Becoming a mentor and helping others Experiencing decreased discretion over the work that you do Experiencing a feeling of accomplishment along with your employees Magnifying your range and stretching your abilities
Answer:
The rewards of practicing management include:
a. Building a catalog of successful products or services
b. Becoming a mentor and helping others
c. Experiencing a feeling of accomplishment along with your employees
d. Magnifying your range and stretching your abilities
Explanation:
When management is truly practiced, the rewards are usually great. The rewards cannot be quantified by what one person has accomplished, because it has some multiplier effects. Organizational efficiency is also improved. For those in management, they will gain much experience which they can easily pass to others through mentoring and coaching. With their employees, they will also feel a sense of having accomplished something meaningful. Management also gives one the ability to go beyond one's natural range, stretching the person's abilities, and enabling her to attain better outcomes than initially imagined.
Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 14,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 3 Total fixed selling expense $ 19,000 Total fixed administrative expense $ 15,000 Beginning merchandise inventory $ 10,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
Answer:
Results are below.
Explanation:
Traditional format income statement:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 10,000 + 86,000 - 23,000
COGS= $73,000
Sales= 14,000*17= 238,000
COGS= (73,000)
Gross profit= 165,000
Total selling expense= (2*14,000 + 19,000)= (47,000)
Total administrative expense= (3*14,000 + 15,000)= (57,000)
Net operating income= 61,000
Contribution margin income statement:
Total variable cost= 73,000 + 14,000*2 + 14,000*3= 143,000
Sales= 14,000*17= 238,000
COGS= (143,000)
Gross profit= 95,000
Total fixed selling expense= (19,000)
Total fixed administrative expense= (15,000)
Net operating income= 61,000
Skippers Landing sells boats and provides mooring facilities for its customers. Skippers Landing sells the boats for $60,000 each and provides mooring facilities for $10,000 per year. It concludes that the goods and services are distinct and accounts for them as separate performance obligations. Skippers Landing enters into a contract to sell a boat and one year of mooring services to a customer for $65,000. Required: How should Skippers Landing allocate the transaction price of $65,000 to the performance obligations
Answer:
Skippers Landing should allocate the transaction price of $65,000 to the performance obligations as follows:
Boat = $60,000/$70,000 x $65,000 = $55,714
Mooring facilities = $10,000/$70,000 x $65,000 = $9,286
Explanation:
To apply "IFRS 15 Revenue from Contracts with Customers," Skipper Landing will allocate the transaction price to each performance obligation for each boat and mooring facilities sold based on the proportion of the relative stand-alone selling prices of each boat and mooring facilities sold to the customer in the transaction.
A 4-year project has an annual operating cash flow of $51,000. At the beginning of the project, $4,200 in net working capital was required, which will be recovered at the end of the project. The firm also spent $22,300 on equipment to start the project. This equipment will have a book value of $4,620 at the end of the project, but can be sold for $5,640. The tax rate is 40 percent. What is the Year 4 cash flow
Answer: $60,432
Explanation:
The equipment can be sold for $5,640 yet the book value is $4,620. The gain is therefore;
= 5,640 - 4,620
= $1,020
After tax cashflow from sale
= Sales price - tax on gain
= 5,640 - (1,020 * 40%)
= $5,232
Cash-flow in 4th year = Annual Cash flow + after-tax cash-flow from sales + net working capital recovered
= 51,000 + 5,232 + 4,200
= $60,432
Ecstasy Pharmaceuticals faces fixed costs of $1 million with manufacturing its new drug. The company sells the drug in bottles of 50 pills for $10. The company estimates that it must sell 200,000 bottles to break even. What is the total cost to produce a bottle of 50 pills
Answer:
The cost of producing one bottle is $10 .
Explanation:
The fixed costs of making the drug = $1 million
The selling price of the 50 pills bottles = $10
Total number of bottles sold at breakeven =200000
Total revenue from the sale of bottle = $10 × 200000
Total revenue from the sale of bottle = $2000000
Since at breakeven point the total revenue is equal to total cost. So, total cost of producing the 200000 bottles is $2000000.
Thus, the cost of producing one bottle = $2000000 / 200000 = $10
"A customer who has signed an arbitration agreement at account opening has a dispute with a representative that he wishes to settle under FINRA’s procedures without being subject to a binding decision. The customer should use the:"
Answer:
The customer should use the:
Non-binding arbitration
Explanation:
This non-binding arbitration will enable the two disputing parties to be advised on the best possible solution to their disagreement. However, since the arbitration is non-binding and merely advisory, the two parties are not bound by the decisions of the arbitrator unless they each agree to abide with the settlement. On the other hand, if the arbitration is binding, then the decision of the arbitrator is final.
In November and December 2020, Crane Company, a newly organized magazine publisher, received $79200 for 1,000 three-year subscriptions at $26 per year, starting with the January 2021 issue. Crane included the entire $79200 in its 2020 income tax return. What amount should Crane report in its 2020 income statement for subscriptions revenue
Answer:
Crane should report $26,400 as subscription revenue in Income Statement
Explanation:
Amount received towards Subscription = $79,200 for 3 years
Subscription revenue to be recognized in Income Statement of 2020 =
= $79,200 / 3
= $26,400
assume that a firm will generate the following cash flows. (ignore liquidation value and initial investment.) also assume that the interest rate you would receive on an alternative investment of equal risk is 10%. end of year 1: $110 end of year 2: $242 end of year 3: $133.10 what is the value of the firm based on these cash flows
Answer:
$400
Explanation:
To find the value of the firm based on the cash flows, we have to find the present value of the cash flows
Present value is the sum of discounted cash flows
Cash flow in year 1 = $110
Cash flow in year 2 = $242
Cash flow in year 3 = $133.10
I = 10%
Present value = $400
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
In a free-market economy, firms face some degree of uncertainty, or risk. Some of this risk is controllable, and some is not. Identify the different types of risk that a business might encounter in the marketplace and identify whether they are controllable or uncontrollable. Justify your answer.
Explanation:
Controllable risks are those that the company can control more actively, they can be the risks of internationalization of the business, for example, risk of an investment in a country where there is not much certainty that the company will be successful or a country in economic crisis.
Non-controllable risks are those inherent to the market, that is, companies cannot control certain situations, such as an economic and political crisis that affects consumers' purchasing power and makes them consume less and thus directly affects business .
Therefore, it is necessary to have an effective risk management in any organization, in order to monitor market situations and identify possible risks and to anticipate solutions to enable the company to minimize losses arising from any negative risk that may arise.
Who would qualify as a disinterested third party in a transaction?
Answer: An escrow agent
Explanation:
An escrow agent would qualify as a disinterested third party in a transaction. An escrow agent is simply an individual or an entity which holds property for third parties while there is a disagreement that us being resolved or when a transaction is finalized. The role of an escrow agent is usually played by an attorney.
After these closing entries what will be the balance in the retained earnings account? Total Revenues $ 125,000 Total Expenses 60,000 Retained Earnings (beginning) 130,000 Dividends 15,000
Answer:
$10,000
Explanation:
Given the data above,
Economists look at any situation in terms of its component parts: the people making decisions, the environment in which they're making those decisions, and the goods or services being exchanged. For example, think about a wedding celebration. Which of the following wedding-related items are services? Check all that apply. Having a wedding gown altered The food at the reception Flowers for a wedding reception Getting your hair done for a wedding
Answer:
Having a wedding gown altered
Getting your hair done for a wedding
Explanation:
A service is rendered when there is no exchange of physical goods between the buyer and seller
When a wedding gown is altered and when my hair is done, there is no exchange of a physical good
Computerland is a small country which produces three goods: desktops, laptops, and tablets. The prices and quantities for three consecutive years are as follows. 2012 2013 2014 Price Quantity Price Quantity Price Quantity Desktops 10 20 10 18 12 24 Laptops 10 50 9 40 12 60 Tablets 5 50 5 45 8 55 Suppose 2013 is the base year. What is the percentage growth of real GDP from 2013 to 2014
Answer:
37.9%
Explanation:
Please find attached a clear image of the table used in answering this question
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year.
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Real GDP in 2013 = (10 X 18) + (9 x 40) + (5 x 45) = 180 + 360 + 225 = 765
Real GDP in 2014 = (10 X 24) + (9 x 60) + (5 x 55) = 240 + 540 + 275 =1055
Percentage growth rate in real GDP = (1055 / 765 ) - 1 = 0.379 = 37.9%
Managers are increasingly viewing the world as "one big marketplace" due to globalization and the interconnectedness of national economies. Of the possible management orientations, which would be counterintuitive to this mentality and result in an inability to see opportunities in other countries?
Answer: Ethnocentric orientation
Explanation:
The options are;
A. Regiocentric orientation
B. Geocentric orientation
C. Polycentric orientation
D. Ethnocentric orientation
E. Multicentric orientation
Ethnocentric orientation is an orientation whereby one believes that their home country is superior and better than other countries and this orientation usually leads to lost opportunities that could have been used by a company to expand. Managers who see the world as a big marketplace typically have geocentric orientation.
The following data pertains to Traverse Co.’s investments in marketable debt securities: Market value Cost 12/31/24 12/31/25 Trading $150,000 $155,000 $145,000 Available-for-sale 150,000 130,000 110,000 What amount should Traverse Co. report as unrealized holding loss to be included in 2025 Net Income?
Answer and Explanation:
The computation of the amount reports as unrealized holding loss is shown below:
The marketable securities should be reflected by considering the lower value of market value or cost therefore the trading cost would be decreased by $10,000 i.e.
= $155,000 - $145,000
= $10,000
While the available to sale value is also fall but does not reflected in the income statement it could be shown in the other comprehensive income
Warrants exercisable at $20 each to obtain 79000 shares of common stock were outstanding during a period when the average market price of the common stock was $25. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by
Answer:
$15,800
Explanation:
Calculation to compute diluted earnings per share
Using this formula
Diluted earnings per share=Shares of common stock- (Shares of common stock×Warrants exercisable ÷Average market price of the common stock )
Let plug in the formula
Diluted earnings per share=79,000-(79,000×$20÷$25)
Diluted earnings per share=79,000-$63,200
Diluted earnings per share=$15,800
Therefore $15,800 diluted earnings per share will increase the weighted average number of outstanding shares.
Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 3,000 meals. Amount Per Unit Sales revenue $ 18,000 $ 6.00 Costs of meals produced 13,500 4.50 Gross profit $ 4,500 $ 1.50 Administrative costs 2,100 0.70 Operating profit $ 2,400 $ 0.80 Fixed costs included in this income statement are $4,500 for meal production and $600 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.50 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. Required: a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)
Answer:
See explanations below
Explanation:
Kind find attached solution. Please note that 3,300 units was used for the alternative.
SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 515,454 Cost of goods sold 365,628 Depreciation 46,713 Earnings before interest and taxes $ 103,113 Interest paid 21,483 Taxable income $ 81,630 Taxes (23%) 18,775 Net income $ 62,855 Dividends $ 25,000 Retained earnings 37,855 Prepare the 2018 statement of cash flows for Smolira Golf Corp. (Negative answers should be indicated by a minus sign.)
Answer:
Note: Find attach the other missing table of question
Particulars Amount$
Cash flow from operating activities
Income 62,855
Depreciation 46,713
Increase in AR (10,685)
Increase in inventory (39,202)
Increase in AP 3,540
Decrease in notes payable (3,258)
Increase in other CL 4,590
Cash flow from operating activities A $64,553
Cash flow from Investing activities
Sale of invt
Purchase of PPE = ($102,771)
($522,333 + $46,713 - $466275)
Cash flow from Investing activities B ($102,771)
Cash flow from Financing activities
Issue of long term debt 66,525
Dividends Paid (25,000)
Cash flow from Financing activities C $41,525
Net change in cash & cash equivalents A+B+C $3,307.00
Opening cash and cash equivalents $36,185
Closing cash and cash equivalents $39,492
Michael owns Michael’s Tantalizing Tees, a T-shirt shop in a small college town in New Hampshire. With a staff of three part-time employees, Michael operates the business in accordance with his personal goals, dreams, and capabilities. Does Michael have an agency conflict to deal with?
Answer:
No
Explanation:
Agency conflict occur when the owners of a firm do not manage the company. Instead the firm is managed by mangers. As a result, the interest of the manger might not be aligned with that of the owners and as a result the manager would not act in the best interest of the owners.
Agency problem is more common in public companies
Since Michael owns and operates the shop, there is no agency company as he seems to be a sole proprietor
The following income statement applies to Kawai Company for the current year: Income Statement Sales revenue (200 units × $60) $ 12,000 Variable cost (200 units × $36) (7,200 ) Contribution margin 4,800 Fixed cost (1,600 ) Net income $ 3,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Kawai Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements.
Answer:
a. Use the contribution margin approach to calculate the magnitude of operating leverage.
operating leverage = contribution margin / net income = $4,800 / $3,200 = 1.5
b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Kawai Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected.
if sales increase by 10%, net income will increase by 10% x 1.5 = 15%
a 15% increase in net income = $3,200 x 15% = $480
c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected.
Sales revenue $13,200
Variable costs ($7,920)
Contribution margin $5,280
Fixed costs ($1,600)
Net income $3,680
c-2. Calculate the percentage change in net income for the two income statements.
% change = [($3,680 - $3,200) / $3,200] x 100 = 15% increase
