Thomlin Company forecasts that total overhead for the current year will be $11,597,000 with 164,000 total machine hours. Year to date, the actual overhead is $7,833,000 and the actual machine hours are 83,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$94 per machine hour b.$48 per machine hour c.$71 per machine hour d.$140 per machine hour

Answers

Answer 1

Answer: c.$71 per machine hour

Explanation:

The Pre-determined Overhead rate is the rate Thomlin Company forecasted that the company would incur total overhead for the current year.

They forecasted total overhead of $11,597,000 with 164,000 total machine hours.

Since the rate is based on Machine Hours the rate would be,

= Total Forecasted Overhead / Total Forecasted Machine Hours

= 11,597,000 / 164,000

= 70.71

= $71


Related Questions

The table gives a number of daily sales of cars by a local dealership, from a 0 minimum to a 6 maximum, and the number of days each sale happened during a 100 - day survey. That is. 0 cars were sold 6 days, 1 car 8 days, etc.
Car sales per day, X 0 1 2 3 4 5 6
Number of days 6 8 22 20 15 16 13
A) Give the probability density function of X.
B) Compute the expected value of A". Explain its meaning.
C) Compute the variance and standard deviation of X.
D) Find the expected value and variance of a function Y = 5 + 12X.

Answers

Answer: The answer has been provided and attached.

Explanation:

Based on the attached diagram, there will be 3.3 sales per day.

The variance will be 2.95.

Since standard deviation is the square root of variance, the standard deviation will be:

= ✓2.95

= 1.72

The expected value and variance of a function Y = 5 + 12X will be:

Expected value = 44.6

Variance = 424.8

Specialization and the gains from trade make the economy PPF outward bowed because​ _______. A. a good is initially produced by producers with higher opportunity costs and eventually produced by producers with lower opportunity costs B. all producers have​ bowed-out PPF​s, and the economy PPF is the horizontal sum of the individual PPFs C. as more of a good is​ produced, people are willing to pay less for each additional unit of the good D. a good is initially produced by producers with lower opportunity costs and eventually produced by producers with higher opportunity costs

Answers

Answer:

A. a good is initially produced by producers with higher opportunity costs and eventually produced by producers with lower opportunity costs

Explanation:

The production possibility frontier is a curve that shows the two combinations of goods and services produced in an economy.

Because of trade a country can specialise in the production of goods for which it has a lower opportunity cost in its production and import goods for which it has a higher opportunity cost.

This makes the ppf bowed out as the country produces more of the good for which it has a lower opportunity cost and less of the good for which it has a higher opportunity cost.

I hope my answer helps you

Assume Zap industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 1,690,200 $ 1,340,920 Allowance for Doubtful Accounts (92,000 ) (76,300 ) Accounts Receivable, Net $ 1,598,200 $ 1,264,620 Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019

Answers

Answer:

amount of Bad Debt Expense for 2019 = $92,000

Explanation:

A bad debt expense is a uncollectible receivable amount incurred on a credit sale to a customer, who is no longer able to pay the debt, due to bankruptcy or other financial problems. Companies make provision for these kind of credit losses in the allowance for doubtful accounts, and hence records the amount used from the allowance for doubtful accounts as the bad debt expense.

In our example, the allowance for doubtful account for 2019 is $92,000, hence since it was used to settle part of the credit losses, this becomes the bad debt expense.

Entry for Jobs Completed; Cost of Unfinished Jobs The following account appears in the ledger prior to recognizing the jobs completed in January: Work in Process Balance, January 1 $10,100 Direct materials 82,110 Direct labor 88,580 Factory overhead 46,560 Jobs finished during January are summarized as follows: Job 210 $40,920 Job 224 $47,740 Job 216 25,010 Job 230 84,120 a. Journalize the entry to record the jobs completed. If an amount box does not require an entry, leave it blank. b. Determine the cost of the unfinished jobs at January 31. $

Answers

Answer:

a.Entry to record the jobs completed.

Job 210 $40,920 (debit)

Job 224 $47,740 (debit)

Job 216 $25,010 (debit)

Job 230 $84,120 (debit)

Work - In Process $197,790 credit)

b. $29,550

Explanation:

a.Entry to record the jobs completed.

Recognize the Cost of Manufacture in the Jobs completed and De-recognize the costs from the Work In progress Account

b. the cost of the unfinished jobs

The cost of the unfinished jobs =  Opening Work-In process + Costs Added during the year - Finished Jobs at the end

Opening Work-In process                            $10,100

Add Manufacturing Costs :

Direct materials                        $82,110

Direct labor                              $88,580

Factory overhead                    $46,560    $217,240

Less Finished Jobs :

Job 210                                     $40,920

Job 224                                     $47,740

Job 216                                      $25,010

Job 230                                     $84,120    ($197,790)

Cost of the unfinished jobs                        $29,550

The Colson Company issued $407,000 of 9% bonds on January 1, 2014. The bonds are due January 1, 2020, with interest payable each July 1 and January 1. The bonds are issued at face value.
Prepare Colson’s journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.

Answers

Answer:

Dr cash    $407,000

Cr bonds payable       $407,000

July 1

Dr interest expense   $ 18,315.00  

Cr cash                                              $ 18,315.00  

December 31

Dr interest expense   $ 18,315.00  

Cr interest payable                                          $ 18,315.00  

Explanation:

The bond was issued at face value of $407,000 which means that cash of $407,000 was received which is to be debited to cash account and bonds payable account credited for the same amount.

On July1 ,interest coupon of  $ 18,315.00   ($407,000*8%*6/12) was paid which means that interest expense is debited with $ 18,315.00   while cash is credited.

On 31 December ,interest coupon of  $ 18,315.00   ($407,000*8%*6/12) was due  which means that interest expense is debited with $ 18,315.00   while interest payable is credited.

Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $111 and of each door is $261. The variable cost of a window is $68.00 and of a door is $180.50. Fixed costs are $515,375.
Required:
1. Determine the selling price per composite unit.
2. Determine the variable cost per composite unit.
3. Determine the break-even point in composite units.
4. Determine the number of units of each product that will be sold at the breakeven point.

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Handy Home sells windows and doors in the ratio of 7:3 (windows:doors).

Window:

Selling price= $111

Unitary variable cost= $68

Door:

Selling price= $261

Unitary variable cost= $180.5

Fixed costs are $515,375.

1) Selling price per composite unit:

Selling price= 0.7*111 + 0.3*261= $156

2) Composite variable cost:

Variable cost per unit= 0.7*68 + 0.3*180.5= 101.75

3) To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 515,375/ ( 156 - 101.75)

Break-even point in units= 9,500 units

4) Units for each product:

Windows= 0.7*9,500= 6,650

Door= 0.3*9,500= 2,850

Suppose the government is considering an increase in the toll on a certain stretch of highway from $.40 to $.50. At present, 50,000 cars per week use that highway stretch; after the toll is imposed, it is projected that only 45,000 cars per week will use the highway stretch. Assuming that the marginal cost of highway use is constant (i.e., the supply schedule is horizontal) and equal to $.40 per car, what is the change in social surplus attributable to the increase in the toll

Answers

Answer:

$250 is the change in social surplus attributable to the increase in the toll

Explanation:

Suppose the government increase in toll on a certain stretch of highways by this caused a dead-weight loss occur and then resulting full in the number of cars using the highway.

Dead-weight loss = (0.5) (0.50-0.40) (50,000-45,000)

Dead-weight loss = 0.5 * 0.10 * 5000

Dead-weight loss = $250

The increase paid by other remaining drivers (0.50-0.40)(40,000) can be viewed as transfer from drivers to the government.

Light-emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.45 and lasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts for 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type (you can get information on your rates from your local power company). An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a 10 percent return and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour?

Answers

Answer:

(A) For incandescent bulb, your break even cost is $32.67

(B) With LED bulb, your break even cost is $3.8115

Conclusion: It makes financial sense to use LED bulbs.

Explanation:

We start by checking the cost of your electricity bill when you use incandescent bulb and when you use LED bulb.

Since your answers are to be in kilowatt hour, we transform the watt measurement of the bulbs into kilowatt thus:

60watt incandescent bulb = 0.06kw

7watt led bulb = 0.007kw

National average cost of electricity per kilowatt hour is $1.21

Cost per kWh using incandescent bulb is 1.21 × 0.06 = $0.0726

Cost per kWh using led bulb is 1.21 × 0.007 = $0.00847

(A) WITH INCANDESCENT

0.06kw × 500hrs/year = 30kwhrs/year

Cost of electricity bill = 1.21 × 30 =$36.3

Your 10% return = $3.63

Break even cost per year, in kWh is = 36.3 - 3.63 = $32.67

(B) WITH LED

0.007kw × 500hrs/year = 3.5kwhrs/year

Cost of electricity bill = 1.21 × 3.5 = $4.235

Your 10% return = $0.4235

Break even cost per year in kWh is = 4.235 - 0.4235

(C) The incandescent bulb costs $0.45 but draws you a bill of $32.67 a year WHILE the led bulb costs $2.25 but draws you a bill of $3.8115

We conclude hence, that light-emitting diode bulbs make financial sense. Overlook the cost of purchasing the bulb because it uses less kilowatts per hour and draws you a very low bill, compared to the incandescent bulb!

Bonds payable-record issuance and premium amortization. Kaye Co. issued $1 million face amount of 11% 20-year bonds on April 1,2004. The bonds pay interest on an annual basis on March 31 each year.
Required:
a. Assume that market interest rates were slightly lower than 11% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount? Explain.
b. Independent of your answer to part a, assume that the proceeds were $1,080,000. Use the horizontal model (or write the journal entry) to show the effect of issuing the bonds.
c. Calculate the interest expense that Kaye Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2004, assuming that the premium of $80,000 is amortized on a straight-line basis.

Answers

Answer:

Cash proceeds would be higher than face amount.

Bond issuance:

Dr cash                                                          $1,080,000

Cr bonds payable                                                                    $1,000,000

Cr premium on bonds payable($1,080,000-$1,000,000)        $80,000

$57,400

Explanation:

If the market interest rate were slightly lower than 11% coupon rate,the cash proceeds from the bonds would be higher than face amount as a lower market rate is used as a discount rate in calculating the present value,in other words,the lower the discount rate,the higher the present value as further shown below.

Assume market rate is 10.5%

cash proceeds=-pv(rate,nper,pmt,fv)

rate is 10.5%

nper is 20 years

pmt =$1,000,000*11%=$110,000

fv is $1000,000

=-pv(10.5%,20,110000,1000000)=$1,041,154.54  

amortization(annually)=$80,000/20=$4000

Amortization for six months=$4,000*6/12=$2,000

coupon=$1,080,000*11%*6/12=$ 59,400.00  

Interest expense=coupon -premium amortization=$ 59,400.00-$2,000.00=$57,400

The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product ​ Number of units ​ Labor hrs per unit ​ Machine hours per unit Blinks 1,000 4 5 Dinks 2,000 2 8 ​ All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000. ​ The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the Single Plantwide Factory Overhead Rate for Blinks? Group of answer choices $19.50 $37.45 $78.00 $56.00

Answers

Answer:

Single Overhead Absorption rate = $19.5  per hour

Explanation:

Overhead absorption rate = Estimate overhead /Estimated labor hours

Estimated overhead = $84,000 + $72,000= 156 000

Estimated labour hours= ( 1000×4) + (2000× 2)=8,000 hours

Overhead absorption rate = 156,000/8,000 hours =$19.5  per hour

Single Overhead Absorption rate = $19.5  per hour

In the real world, we find that dividends Group of answer choices Tend to be a lower percentage of earnings for mature firms. Are usually changed every year to reflect earnings changes. Usually exhibit greater stability than earnings. Are usually set as a fixed percentage of earnings. Fluctuate more widely than earnings.

Answers

Answer: Usually exhibit greater stability than earnings.

Explanation:

A dividend is a distribution of profits to the shareholders by a corporation. When a profit is earned by a corporation, the corporation pays a proportion of its profit as dividend to the shareholders.

Although dividends should be distributed in relation to the earnings for the year, that is, when earnings fall, the dividends should fall and vice versa. In real world, dividends are usually stable because a regular dividend paying company is seeen to be a better firm and also investor friendly. Therefore, even if the earnings fall, the dividend yield usually remain stable.

So, correct option is option 1) usually exhibit greater stability than earnings

During January 2018, the first month of operations, a consulting firm had following transactions: Issued common stock to owners in exchange for $20,000 cash. Purchased $5,000 of equipment, paying $1,000 cash and signing a promissory note for $4,000. Received $9,000 in cash for consulting services performed in January. Purchased $1,500 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $16,000. Paid $750 on account. Paid $3,000 to employees for work performed during January. Received a bill for utilities for January of $3,400; the bill remains unpaid. What is the amount of total revenue to be reported on the income statement for the month of January?

Answers

Answer:

The total or gross revenue for this company on the income statement would be the sum of:

$9,000 received in cash for consulting services performed in January$16,000 worth of consulting services that will be paid on account.

So the total revenue will be $25,000.

This is because revenue is different from cash: as long as the sales are made, they are counted as revenue even if they are on account, and no cash payment has been made.

A company would like to produce 5000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the product is $1.50 per product. After producing 500 products, the company must stop production to replace a filter on the machine (the filter is replaced after producing every 500 products). The filter costs $50.00. What is the Total Cost Per Product

Answers

Answer:

Total Cost Per Product is $1.60

Explanation:

From the question the following information are derived:

Direct raw material cost per product = $1.50

The cost of the filter for producing 500 products = $50

Hence, the cost of the filter per product = $(50 / 500) = $0.10

In this question, No cost of labor is given, we can now decide the following

Total Cost per product = $(1.50 + 0.10)

= $1.60

Total Cost Per Product in this account is $1.60

If a company would like to produce 5000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the product is $1.50 per product. The Total Cost Per Product is $1.60.

Using this formula

Total cost per product=Direct raw material cost per product +( Filter costs/Production)

Where:

Direct raw material cost per product  = $1.50

Costs of filter =$50

Production=500

Let plug in the formula

Total cost per product=$1.50+($50 / 500)

Total cost per product=$1.50+$0.10

Total cost per product=$1.60

Inconclusion if a company would like to produce 5000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the product is $1.50 per product. The Total Cost Per Product is $1.60.

Learn more here:

https://brainly.com/question/24373570

Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $112 for the skirt:

Store Travel Time Each Way (Minutes) Price of a Skirt (Dollars per skirt)
Local Department Store 15 103
Across Town 30 89
Neighboring City 60 63

Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.

Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.

Store Opportunity Cost of Time (Dollars) Price of a Skirt (Dollars per skirt) Total Cost (Dollars)

Local Department Store 103
Across Town 89
Neighboring City 63

Assume that Juanita takes opportunity costs and the price of the skirt into consideration when she shops. Juanita will minimize the cost of the skirt if she buys it from the:_______

Answers

Answer:

Juanita should purchase the skirt at the neighboring city because the total economic cost will be lowest.

Explanation:

three options:

local store 15 minutes away and a price of $103across town 30 minutes away and a price of $89neighboring city 1 hour away and a price of $63

Juanita makes $16 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:

total economic cost:

local store = $103 + [1/4 hours x 2 (round trip) x $16] + (1/2 hour x $16) = $119across town = $89 + [1/2 hours x 2 (round trip) x $16] + (1/2 hour x $16) = $113neighboring city = $63 + [1 hour x 2 (round trip) x $16] + (1/2 hour x $16) = $103

Juanita should purchase the skirt at the neighboring city because the total economic cost will be lowest ($103)

Opportunity costs are the benefits lost or extra costs incurred for choosing one activity or investment over another alternative. Economic costs include both accounting costs and opportunity costs.

Assume you are the president of Nuclear Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Accounts Payable$33,000 Accounts Receivable 59,950 Cash 13,500 Common Stock 63,030 Dividends 230 Equipment 32,000 Notes Payable 1,500 Operating Expenses 61,700 Other Expenses 9,000 Sales Revenue 87,300 Supplies 8,450 Prepare a statement of retained earnings for the year ended December 31.

Answers

Answer:

Ending retained earnings is     $ 16,370.00  

Explanation:

Before preparing the statement of retained earnings for the year ended December 31, the net income for the current year needs to be ascertained.

net income=sales revenue-operating expenses-other expenses

net income=$87,300-$61,700-$9000=$ 16,600.00  

Statement of Retained earnings for the year ended 31 December:

Beginning retained earnings     $0

net income                                  $16,600

dividends                                    ($230)

ending retained earnings         $ 16,370.00  

   

Hewlett-Packard introduced its HP Tablet a few years after Apple launched its original iPad, about the same time Apple introduced its next-generation iPad2. HP Tablet sales were very disappointing, and Hewlett-Packard eventually killed the product. According to the text, the primary reason for the HP Tablet’s failure was due in large part to:_____

a. poor product quality
b. not satisfying customer needs on critical factors.
c. an insignifanct point of difference
d. bad timing

Answers

Answer:

d. bad timing

Explanation:

Remember the principle of first entry advantage which says that the first entrant to a market has better advantage of gaining more market share over late entrants.

This was true in the Tablet market which saw Apple's iPad been the very first commercially sold tablet devices. Because of wrong/late timing when Apple introduced its next-generation iPad2 the HP tablet came in struggling to get a part of the already captured tablet market by Apple's iPad.

Brett has almond​ orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this​ year's crop with him. Assume he produces 1,000 tons of almonds and his neighbor produces 800 tons of walnuts. If the market price of almonds is $100 per ton and the market price of walnuts is $110 per​ ton.
A. Should he make the​ exchange? The market value of the almond crop is _____.
B. Does it matter whether he prefers almonds or​ walnuts? Why or why​ not?

Answers

Answer:

(A) The almond market value is = 100,000 and the walnuts market value is 88,800. (B) His preferences are secondary, the most important choice is the market value of the profit and crop

Explanation:

Solution

Given that:

The first step to take is to find the almond crop market value which is stated as follows:

(A) The market value of almond is = 1000 * 100 = 100,000

Thus,

The walnuts market value is = 800* 111 = 88,800

he should not make the exchange because, the almond has more value

(B)His choice is not really important, the market value of the profit and crop should be of more importance.

Suppose all individuals are​ identical, and their monthly demand for Internet access from a certain leading provider can be represented as p​ = 5 minusone half q where p is price in​ $ per hour and q is hours per month. The firm faces a constant marginal cost of​ $1. If the firm will charge a monthly access fee plus a per hour​ rate, the monthly access fee will equal A. ​$5. B. ​$16. C. ​$1. D. ​$8.

Answers

Answer: B) $16

Explanation:

First lets take down the data given to us;

access from a certain leading provider can be represented as p​ = 5 minusone half q i.e 5 - 0.5q

Using the concept of two-part terrific which is a monopolistic market system, it is type of price discrimination where the price of goods and services are of two section namely; a lump-sum fee (expensive) as well as a per-unit charge .

Entry fees are set to be equal to the consumer surplus in the competitive equilibrium.

So we calculate our price and quantity in the competitive equilibrium first,  marginal cost is equal to price

5 - 0.5q = 1

4 / 0.5 = q

q = 8

Now the intercept of the demand curve at the vertical axis is 5,

so the consumer surplus in the competitive equilibrium is:

M = (5 - 1) * 8 / 2

M = 4 * 4

M = 16

the monthly access fee will be equal to $16.

What are the principles of logic and critical thinking?​

Answers

Defining a problem, examining evidence, analyzing, and asking questions

"Donald is a 21-year-old full-time college student. During 2019, he earned $2,550 from a part-time job and $1,150 in interest income. If Donald is a dependent of his parents, what is his standard deduction amount

Answers

Answer:

His standard deduction amount would be of $ 2,900

Explanation:

In order to calculate his standard deducion amount If Donald is a dependent of his parents we would have to make the following calculation:

Since His earned income is more than $1,150, therefore, Standard Deduction would be= $2,550 + $350

Standard Deduction would be= $2,900

Therefore, If Donald is a dependent of his parents, his standard deduction amount would be of $ 2,900

Metro​ Services, Inc. reported the following information for the year 2019. Based on the following​ information, calculate the rate of return on total assets for Metro​ Services, Inc.​ (Round the percentage to two decimal​ places.)Total​ Assets, December​ 31, 2019​$599,000Total​ Assets, December​ 31, 2018​$505,000For Year Ended December​ 31, 2019:     Interest Expense​$27,900     Net Income​$67,100A. ​7.78%B. ​7.10%C. ​11.20%D. 17.21%

Answers

Answer:

Option D,17.21%   is correct

Explanation:

The total assets deployed in generating profit for the year is the average of the beginning assets of $599,000 and the closing assets of $505,000 which translated into $552,000 i.e ($599,000+$502,000)/2

The total return on assets is the profit before interest, hence the interest of $27,900 is added to net income of $67,100 to give total return on assets in dollar terms i.e $95,000($27,900+$67,100)

The return on total assets=total return/average assets=$95,000/$552,000=17.21%

Miller Company's most recent contribution format income statement is shown below:sales (20,000 units)............300,000 15.00Variable expenses.............180,000 9.00CM ..............................120,000 6.00Fixed expense................. 70,000Net operating income......... 50,000Required:Prepare a new contribution format income statement under each of the following conditions (consider each case independently):1. The number of units sold increases by 15%.2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%.4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%.

Answers

Answer:

Miller Company

New contribution format income statement under each of the following conditions (consider each case independently):

1. The number of units sold increases by 15%.

Sales (23,000 units)     $345,000 ( unit price $15.00)

Variable expenses       $207,000 ( unit cost $9.00)

Contribution Margin     $138,000 ( unit $6.00)

Fixed expense               $70,000

Net operating income $68,000

2. The selling price decreases by $1.50 per unit, and the number of units sold increases by 25%.

Sales (25,000 units)    $337,500 ( unit price $13.50)

Variable expenses      $225,000 ( unit cost $9.00)

Contribution Margin     $112,500 ( unit $4.50)

Fixed expense               $70,000

Net operating income $42,500

3. The selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%.

Sales (19,000 units)      $313,500 ( unit price $16.50)

Variable expenses        $171,000 ( unit cost $9.00)

Contribution Margin    $142,500 ( unit $7.50)

Fixed expense              $90,000 ($70,000 + 20,000)

Net operating income $52,500

4. The selling price increases by 12%, variable expenses increase by 60 cents per unit, and the number of units sold decreases by 10%.

Sales (18,000 units)    $302,400 ( unit price $16.80)

Variable expenses      $172,800 ( unit cost $9.60)

Contribution Margin   $129,600 ( unit $7.20)

Fixed expense              $70,000

Net operating income $59,600

Explanation:

a) Contribution Format Income Statement as per question:

Sales (20,000 units)   $300,000 ( unit price 15.00)

Variable expenses      $180,000 ( unit cost 9.00)

Contribution Margin   $120,000 ( unit 6.00)

Fixed expense              $70,000

Net operating income $50,000

b) The contribution format income statement can be prepared under different scenarios to account for different events as in the above.  They are estimates of future occurrences under scenario planning and analysis which can help management to make informed decisions, knowing the outcome of each situation.

Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 60,000 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 45,000 of the reacquired shares at $51 per share. The remaining 15,000 shares were sold at $40 per share on November 23.
Required:
A. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles.
B. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
C. For what reasons might Mystic Lake have purchased the treasury stock?

Answers

Answer:

A. Journalize the transactions

July 9, purchase of 60,000 treasury stocks

Dr Treasury stocks 2,520,000

    Cr Cash 2,520,000

September 22, 45,000 treasury stocks sold

Dr Cash 2,295,000

    Cr Treasury stocks 1,890,000

    Cr Additional paid in capital 405,000

November 23

Dr Cash 600,000

Dr Additional paid in capital 30,000

    Cr Treasury stocks 630,000

   

B. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

Additional paid in capital = $405,000 - $30,000 = $375,000

December 31 balance:

Additional paid in capital $375,000

C. For what reasons might Mystic Lake have purchased the treasury stock?

management believed that the stock was underpricedthey have excess cash and no immediate projects to invest init is a way to increase the price of stocks since lower equity with the same profits means that each remaining stock will earn more returns

Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses. Time Warner, Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $75,100 Home Box Office (pay television) 43,200 Warner Bros. (films, television, and videos) 44,500 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 27% Home Box Office 16% Warner Bros. 25% a. Determine the contribution margin and contribution margin ratio for each segment from the information given. When required, round to the nearest whole millionth (for example, round 5,688.7 to 5,689). Round contribution margin ratio to whole percents for each segment from the information given. Turner Home Box Office Warner Bros. Revenues $ $ $ Variable costs Contribution margin $ $ $ Contribution margin ratio (as a percent) % % % b. Does your answer to (a) mean that the other segments are more profitable businesses

Answers

Answer:

Time Warner, Inc.

a) Contribution Margin and Contribution Margin Ratio for each segment:

                                             Turner      Home Box Office       Warner Bros.

Revenues                            $75,100           $43,200                   $44,500

Variable costs                       20,277                6,912                        11,125 Contribution margin          $54,823           $36,288                    $33,375

Contribution margin ratio

   (as a percent of Revenue)    73%                  84%                          75%

b) The answer in (a) does not mean that the two other segments are more profitable than Turner.  The Contribution Margin Ratio is not enough to decide the profitability of each segment.  It only shows the percentage of revenue that is left after deducting the variable costs.  To determine profitability, fixed costs will be deducted from the contribution margin.  Fixed costs refer to the periodic costs associated with running the different segments.

Explanation:

Segment Contribution Margin Analysis helps management to review the contributions made by each segment to the entity.  It shows the difference between segmental revenues and segmental variable costs.

Our company is growing fast, which always means changes and innovations. Because of this growth, the accounting department will be restructured. For the last five years, Paolo has served as chief manager with grace and dedication. However, because of the restructuring, Paolo’s position will no longer be needed. He will be working in the marketing department on the third floor, starting next Tuesday.In this message, the organizational pattern is used.Outlines give you a chance to organize your thinking before determining word choice and sentence structure. Which of the following will help you create a more effective outline?Avoid illustrations when supporting subpointsCombine subpoints whenever possiblePut the main idea in the titleUse one subpoint per main ideaUse evidence to support subpointsInclude 3 to 5 major components

Answers

Complete question

(1) ...In this message, the___organizatipn pattern is used.

(2)  Which of the following will help youcreate a more effective outline?Check all that apply.

a) Put the main idea in the title,

b) Use one sub-point per main idea,

c) Use evidence to support sub-points,

d) Include 3 to 5 major components,

e) Combine subpoints whenever possible,

f) Avoid illustrations when supporting subpoints

Answer:

1. indirect organizational pattern

2. a, c, d

Explanation:

1. Since the nagative information was placed at the end of the message it follows an Indirect message pattern inorder to minimise negative feelings by the listeners.

2.  A more effective outline is created when the main idea of the message is placed in the title, while also using supporting evidence to discuss the sub-points. And finally limiting the use of illustrations when supporting subpoints.

The Aberdeen Development Corporation (ADC) is considering an Aberdeen Resort Hotel project. It would be located on the picturesque banks of Grays Harbor and have its own championship-level golf course. The cost to purchase the land would be $1 million, payable now. Construction costs would be approximately $2 million, payable at the end of year 1. However, the construction costs are uncertain. These costs could be up to 20 percent higher or lower than the estimate of $2 million. Assume that the construction costs would follow a triangular distribution. ADC is very uncertain about the annual operating profits (or losses) that would be generated once the hotel is constructed. Its best estimate for the annual operating profit that would be generated in years 2, 3, 4, and 5 is $700,000. Due to the great uncertainty, the estimate of the standard deviation of the annual operating profit in each year also is $700,000. Assume that the yearly profits are statistically independent and follow the normal distribution. After year 5, ADC plans to sell the hotel. The selling price is likely to be somewhere between $4 and $8 million (assume a uniform distribution). ADC uses a 10 percent discount rate for calculating net present value. (For purposes of this calculation, assume that each year's profits are received at year-end.) Use Analytic Solver to perform 1,000 trials of a computer simulation of this project on a spreadsheet.
(a) What is the mean net present value (NPV) of the project?
(b) What is the estimated probability that the project will yield an NPV greater than $2 million?
(c) ADC also is concerned about cash flow in years 2, 3, 4, and 5. Generate a forecast of the distribution of the minimum annual operating profit (undiscounted) earned in any of the four years. What is the mean value of the minimum annual operating profit over the four years?
(d) What is the probability that the annual operating profit will be at least $0 in all four years of operation?

Answers

A what is the mean net present value

Question Workspace Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week (millions of gallons) Price per gallon 6 $3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 Exhibit 3-5 shows the supply schedule for Tucker's Cola. Suppose there are four additional suppliers of cola in the market. When the price per gallon of cola is $1.50, the first supplier is willing to sell 10 million gallons, the second supplier is willing to sell 2 million gallons, the third supplier is willing to sell 5 million gallons, and the fourth supplier is willing to sell 0 gallons. The market quantity supplied of cola when the price is $1.50 is

Answers

Answer:

20 million gallons

Explanation

The market quantity supplied can be found by adding the quanirty supplied of the 5 suppliers.

When price is $1.5, tucker supplies 3 million gallons

3 + 10+2 + 5 + 0 = 20

I hope my answer helps you

Precious Metal Mining has $17 million in sales, its ROE is 13%, and its total assets turnover is 4x. Common equity on the firm’s balance sheet is 55% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Do not round intermediate steps.

Answers

Answer:

net income = $303,875

Explanation:

total sales $17 million

return on equity (ROE) = 13% = net income / stockholders' equity

asset turnover = 4 = total sales / average total assets

common equity = 55% of assets

first we must determine average total assets:

average total assets = total sales / 4 = $17 million / 4 = $4.25 million

common equity = 55% x total assets = 55% x $4.25 million = $2,337,500

ROE = 13% = net income / $2,337,500

net income = 13% x $2,337,500 = $303,875

Brickhouse is expected to pay a dividend of $3.65 and $2.66 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.3 percent. What is the stock price today if the required return is 12.3 percent

Answers

Answer:

The stock price today is $ 29.56

Explanation:

Dividend for year 1, d₁ = $ 3.65

Dividend for year 2, d₂ = $ 2.66

Required rate = 12.3% = 0.123

Growth rate = 3.3% = 0.033

Value after year 2= (d₂ × Growth rate) ÷ (Required rate - Growth rate)

= (2.66 × 1.033) ÷ (0.123 - 0.033)

=30.5308889

Hence current price = Future dividend and value × Present value of discounting factor(rate%,time period)

= (3.65÷1.123) + (2.66÷[tex]1.123^2[/tex] ) + (30.5308889 ÷[tex]1.123^2[/tex] )

=$29.56

What are commercial bank?

Answers

Answer:

A commercial bank is a type of bankthat provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.

Commercial bank:a bank that offers services to the general public and to companies.
Other Questions
Les filles font une promenade ____ campagne. au aux le la A teacher purchased a 1-foot long sub to share amongst a group of 4 students but decided to eat 1/3 of it. after dividing the rest of the sub into equal parts how much of a sub will each student receive please an answer and a question im confused 5. Kalen is trying to find the average of three measurements. The measurements are 13.8, 15.64, and 22.51. He adds thenumbers and divides by three. The result on the calculator shows 17.3167. Where should Kalen round? Explain. why were Federalists like Alexander Hamilton skeptical of negotiations with France? Which phrase describes a model in science? a structure that is always built to be an exact copy of an object a structure that is used to represent a complex systemseveral structures that always represent different thingssomething that is unique and does not imitate an object Read the passage:A government hopes to promote a strong economy by letting companies operate freely. It eliminates business regulations, lowers taxes, and encourages companies to seek profits however they see fit.Which type of economic system does the passage describe?A. CommandB. MarketC. TraditionalD. Mixed find the minimum maximum and domain and range of the functions h(x) = -x + 4x - 2 To eliminate the y-terms and solve for x in the fewest steps, by which constants should the equations be multiplied by beforeadding the equations together?First Equation: 5x - 4y = 28Second equation: 3x - 3y = 30The first equation should be multiplied by 3 and the second equation by 5.The first equation should be multiplied by 3 and the Second equation by -5.The first equation should be multiplied by 9 and the second equation by 4The first equation should be multiplied by 9 and the second equation by -4.Mark this and retumSave and ExitNextSubmit Cho's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Cho's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Cho signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Cho's kitchen cannot fit more than three ovens, Cho cannot change the number of ovens she uses in her production of pizzas in the short run. However, Cho's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Cho lets them know how many workers she needs for each day of the week. In the short run, these workers are __________ inputs, and the ovens are __________ inputs. help help! will mark brainlist What should a food service worker use to pick up ready-to-eat food with? A Tongs or a deli tissue B Cleaned bare hands C Cleaned hands/arms D Let the customer pick the item Find the largest value of x that satisfies the equation |5x 1| = x + 3. Why was the Petition of Right (1628) of such importance? [tex] - \frac{1}{2} x > 4[/tex] Any moving object has _______________ energy A.kinetic B.potential C.gravitational potential In the western region of the state the times of all boys running in this event are normally distributed with standard deviation 12 seconds, but with mean 5 minutes 22 seconds. Find the proportion of boys from this region who qualify to run in this event in the state meet. (Hint: normalcdf) I NEED HELP PLEASE, THANKS! :) What two civilizations are regarded as the earliest roots of Europes government systems? Which river formed the Grand Canyon? SPANISH PLEASE HELP10 sentences about a famous person in Spanish (Anyone works) plz can someone help me with this plzz