A company is considering opening a new product line. The building being considered will have a monthly lease and utility payment of $3500. Two employees will be hired at $ 15/hr/employee. Each employee will work 120 hrs per month. The average revenue per unit product sold is estimated at $ 100. The variable cost of production of each unit is estimated at $40.

Required:
a. How many units must be produced each month for the buisness to breakeven?
b. How many units must be produced monthly to achieve a monthly profit of $10,000?

Answers

Answer 1

Answer:

Results are below.

Explanation:

First, we need to calculate the total fixed costs:

Total fixed costs= 3,500 + (120*2*15)

Total fixed costs= $7100

Now, using the following formula, we can determine the break-even point in units:

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

Break-even point in units= 7,100 / (100 - 40)

Break-even point in units= 118.33 = 119 units

Finally, the number of units to earn $10,000 in profit:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (7,100 + 10,000) / 60

Break-even point in units= 285


Related Questions

Suresh Co. expects its five departments to yield the following income for next year.

Dept. M Dept. N Dept. O Dept. P Dept. T Total
Sales $82,000 $44,000 $78,000 $65,000 $43,000 $312,000
Expenses
Avoidable 17,300 45,400 18,000 21,500 51,300 $153,500
Unavoidable 57,800 21,600 5,700 54,300 20,300 $159,700
Total expenses 75,100 67,000 23,700 75,800 71,600 313,200
Net income (loss) $6,900 $(23,000) $54,300 $(10,800) $(28,600) $(1,200)

Required:
Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.

Answers

Question Completion:

Management eliminates departments with sales dollars that are less than avoidable expenses.

Answer:

Suresh Co.

Departmental Income Statements

                               Dept. M        Dept. O       Dept. P         Total

Sales                      $82,000      $78,000     $65,000     $225,000

Expenses

Avoidable                 17,300         18,000        21,500        $56,800

Unavoidable           57,800           5,700       54,300       $159,700

Total expenses       75,100         23,700       75,800         216,500

Net income (loss)  $6,900       $54,300    $(10,800)         $8,500

Explanation:

a) Data and Calculations:

                               Dept. M    Dept. N     Dept. O    Dept. P    Dept. T    Total

Sales                     $82,000  $44,000  $78,000 $65,000 $43,000 $312,000

Expenses

Avoidable                17,300    45,400      18,000    21,500     51,300 $153,500

Unavoidable           57,800    21,600       5,700    54,300    20,300 $159,700

Total expenses       75,100   67,000     23,700    75,800     71,600 313,200

Net income (loss) $6,900 $(23,000) $54,300 $(10,800)$(28,600)$(1,200)

b) The unavoidable expenses will not change when the two departments have been eliminated.  This is why the total unavoidable expenses and the total net income do not tally with the departmental unavoidable and net income sums.

Suppose Megan is considering emigrating from her home country.

A fictional country of Klaxon has the same policies and institutions as Megan's home country, except that it has greater price stability. If Megan's decision to emigrate is based solely on the prospects for economic growth, she would_________.

Following Megan's decision, the western-most province of Klaxon separates from the rest of the country to form a new country, West Klaxon. West Klaxon plans to retain all the policies and institutions of Klaxon, except that West Klaxon will have less certainty in the rule of law. As a result, West Klaxon is a__________attractive emigration destination, from an economic perspective, than Klaxon.

Answers

Answer:

a. emigrate

b. more

Explanation:

Immigration attractiveness is a factor that draws immigrants to a foreign country.  A country becomes more attractive when the economic prospects are brighter than at the home-country.  The degree of immigration law enforcement also helps to either attract or deter potential migrants.  In recent years, wars and misgovernment have propelled millions to move boundaries.  At the same time, countries are imposing migration restrictions by imposing and implementing strict laws.

Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,000 using a $190,000 mortgage. They have no other debts. Mack earns $61,000 per year, and Amy earns $75,000. Each has a retirement plan valued at approximately $15,000. They recently received an offer in the mail from their mortgage lender for a mortgage life insurance policy of $190,000. Their only life insurance currently is a $19,000 cash-value survivorship joint life policy. They each would like to provide the other with support for at least five years if one of them should die.

Required:
Assuming $18,000 in final expenses and $20,000 allocated to help make mortgage payments, calculate the amount of life insurance they should purchase using the needs-based approach.

Answers

Answer:

I do not have time to answer this question, but you could answer this question on a calculator and find out the order and if its multiplying, subtracting, dividing or adding.

Explanation:

Thank you!-Brainly User

Amy and Mack should purchase a life insurance policy with a coverage amount of $1,037,000, using the needs-based approach.

To calculate the amount of life insurance Amy and Mack should purchase using the needs-based approach, we need to consider various factors such as outstanding debts, living expenses, and specific financial goals. Given the information provided, we will calculate the life insurance amount required to cover final expenses and help make mortgage payments for at least five years.

Final expenses:

Final expenses = $18,000

Mortgage payment assistance:

Mortgage payment assistance per year = $20,000

Mortgage payment assistance for five years = $20,000 * 5 = $100,000

Outstanding mortgage:

Outstanding mortgage = $190,000

Current joint life policy:

Current joint life policy = $19,000

Income replacement:

Amy's income = $75,000

Mack's income = $61,000

Total annual income = $75,000 + $61,000 = $136,000

Income replacement for five years = $136,000 * 5 = $680,000

Retirement plan:

Amy's retirement plan = $15,000

Mack's retirement plan = $15,000

Total retirement plan = $15,000 + $15,000 = $30,000

Now, let's calculate the total life insurance amount needed:

Total life insurance needed = Final expenses + Mortgage payment assistance + Outstanding mortgage + Current joint life policy + Income replacement + Retirement plan

= $18,000 + $100,000 + $190,000 + $19,000 + $680,000 + $30,000

= $1,037,000

Therefore, using the needs-based approach, Amy and Mack should purchase a life insurance policy with a coverage amount of $1,037,000.

Learn more about life insurance here: brainly.com/question/34025914

#SPJ2

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.2 pounds of the material, S5 uses 4.1 pounds of the material, and G9 uses 5.3 pounds of the material. Demand for all products is strong, but only 53,700 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.
K1 S5 G9
Selling price $155.8 $108.92 $205.55
Variable costs 91.00 90.00 136.00
Required:
Calculate the contribution margin per pound for each of the three products.

Answers

Answer and Explanation:

The computation of the contribution margin per pound for each of the three products is shown below:

As we know that

Selling price per pound - Variable cost per pound = Contribution margin

For Product K1

= $155.8 - $91

= $64.8

For Product S5

= $108.92 - $90

= $18.92

For Product G9

=$205.55 - $136

= $69.55

Now the contribution margin per pound is  

For Product K1 = Contribution margin ÷ Pound  

                       = 64.8 ÷ 4.2  

                       = 15.43 per pound

For Product S5 =  Contribution margin ÷ Pound  

                        = 18.92 ÷ 4.1  

                        = 4.61 per pound

For Product G9 = Contribution margin ÷ Pound

                          = 69.55 ÷ 5.3

                          = 13.22 per pound

Venture capital required rate of return. Blue Angel Investors has a success ratio of with its venture funding. Blue Angel requires a rate of return of for its portfolio of​ lending, and the average length on its loans is years. If you were to apply to Blue Angel for a ​$ ​loan, what is the annual percentage rate you would have to pay for this​ loan?

Answers

Complete Question:

Venture capital required rate of return. Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 20% for its portfolio of​ lending, and the average length on its loans is 5 years. If you were to apply to Blue Angel for a ​$100,000 ​loan, what is the annual percentage rate you would have to pay for this​ loan?

Answer:

Blue Angel Venture Capital

The annual percentage rate to be paid for this loan is:

= 38%

Explanation:

a) Data and Calculations:

Blue Angel Loan = $100,000

Required rate of interest = 20%

Average length of Blue Angel loan = 5 years

Success ratio of venture funding = 10%

Annual loss sustained from loan = 20% * (100% - 10%)

= 20% * 90%

= 18%

Therefore the annual percentage rate to be paid for this loan is:

38% (20 + 18%)

b) The implication is that the required rate of return expected by Blue Angel will be weighed by its failure rate of 90%.  This indicates additional cost of loan.  Therefore, the total annual percentage rate is the addition of the required rate of return and the rate of loss sustained.

The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted 0.3 machine hours per lamp and allocates overhead at a rate of $1.90 per machine hour. Last year Chilton manufactured 19,000 lamps, used 7,600 machine hours and incurred actual overhead costs of $12,920. What was​ Chilton's variable manufacturing overhead efficiency variance last​ year?
A. ​$9,660 favorable
B. ​$4,140 unfavorable
C. ​$4,140 favorable
D. ​$9,660 unfavorable

Answers

Answer:

See below

Explanation:

Given the above information, we can compute variable manufacturing overhead efficiency variance to be;

= (SA - AQ) × SR

Where

Standard quantity = SQ = 19,000

Actual Quantity = AQ = 7,600

Standard Rate = SR = $1.9

Variable manufacturing overhead efficiency variance

= [(19,000 × 0.3) - 7,600] × $1.9

= (5,700 - 7,600) × $1.9

= $3,610 U

The cost of equipment purchased by Tamarisk, Inc., on June 1, 2020, is $142,800. It is estimated that the machine will have a $8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 67,200, and its total production is estimated at 672,000 units. During 2020, the machine was operated 7,020 hours and produced 64,350 units. During 2021, the machine was operated 6,435 hours and produced 56,160 units.
Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 2020 2021 0
(a) Straight-line - 0
(b) Units-of-output - 0
(c) Working hours - 0
(d) Sum-of-the-years-digits - 0
(e) Double-declining-balance (twice the straight-line rate) $

Answers

Answer:

A. 2020 $11,200

2021 $19,200

B. 2020 $12,870

2021 $11,232

C. 2020 $14,040

2021 $12,870

D. 2020 $19,600

2021 $30,800

E. 2020 $23,799

2021 $33,999

Explanation:

Computation depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021,

(A)Computation for depreciation expense using Straight-line method

Using this formula

(cost-salvage) / useful life x depreciation from purchase date to end year

Let plug in the formula

2020

Depreciation expense= $142,800 - 8,400 / 7

Depreciation expense= 19,200 x (7/12)

Depreciation expense= $11,200 (for 2020)

2021

Depreciation expense= $142,800 - 8,400 / 7

Depreciation expense= 19,200 (for 2021)

(B) Computation for depreciation expense using Units-of-output Method

Using this formula

(cost - salvage) / total units produced x estimated units 2020/21

Let plug in the formula

Depreciation expense 2020:

Depreciation expense= ($142,800 - 8,400) / 672,000) x 64,350

Depreciation expense= 0.20x 64,350

Depreciation expense= $12,870

Depreciation expense 2021:

Depreciation expense=($142,800 - 8,400) / 672,000) x 56,160

Depreciation expense= 0.20x 56,160

Depreciation expense= $11,232

(C) Computation for depreciation expense using Working hours

Using this formula

(cost-salvage) / total working hours x estimated working hours 2020/21

Let plug in the formula

Depreciation expense 2020:

Depreciation expense= (($142,800 - 8,400)/67,200) x 7,020

Depreciation expense= 2 x 7,020

Depreciation expense= $14,040

Depreciation expense 2021:

Depreciation expense= ($142,800 - 8,400)/67,200) x 6,435

Depreciation expense= 2 x 6,435

Depreciation expense= $12,870

(D)Computation for depreciation expense using

Sum-of-the-years'-digits

n(n+1)/2

Depreciation expense 2020:

Depreciation expense= ($142,800 - 8,400)x 7/28 x 7/12

Depreciation expense=$134,400 x (7/28) x (7/12)

Depreciation expense= 33,600 x (7/12)

Depreciation expense= $19,600

Depreciation expense 2021:

Depreciation expense= (($142,800 - 8,400) x 7/28 x 5/12) +(($142,800-8,400) x 6/28 x 7/12)

Depreciation expense= $14,000 + $16,800

Depreciation expense= $30,800

(E) Computation for depreciation expense using Double-declining-balance

First step

1 / useful life x 100 x 2

= 1/7 x 100 x 2

= 28,57%

Now let calculate the Depreciation expense for 2020 and 2021

Depreciation expense 2020:

Depreciation expense=142,800 x 28.57 x (7/12)

Depreciation expense= $23,799

Depreciation expense 2021:

Depreciation expense=(142,800 -$23,799 ) x 28.57

Depreciation expense= $33,999

wo firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution and from now on require a pollution permit for each ton of pollution emitted into the air. The government gives each firm 50 pollution permits, which it can either use of sell to the other firm. It costs Firm A $200 for each ton of pollution that it eliminates before it is emitted into the air, and it cots Firm B $100 for each ton of pollution that it eliminates before it is emitted into the air. If the two firms have the same bargaining power, what would be the gains from trade for Firm B

Answers

Answer:

Firm A will buy all of the firm B's pollution permits. Each one will cost between $100 and $200.

Explanation:

The firm B will gain from the trade of pollution permits. Firm A will need higher pollution permits since it emits 100 tons of chemicals into air and the cost for eliminating each ton is $200. This cost is higher than the cost to Firm B which is $100 only. Firm A will buy all the pollution permits from Firm B and there will advantage for the Firm B to gain from the trade.

On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20 year term and a stated rate of interest of 7%. Assuming a straight-line amortization of the discount, the amount of interest expense recognized on the December 31, Year 1 income statement is

Answers

Answer:

$3,600

Explanation:

According to the scenario, computation of the given data are as follows,

Bonds Face value = $50,000

Discount = 4%

Time period = 20 years

Interest rate = 7%

Premium = $50000 - ( $50,000 × 96%) = $2,000

So, we can calculate interest expense by using following formula,

Interest expense = ($50,000 × 7%) + ($2,000 ÷ 20)

= $3,600


The closing process is also known as which of the following?
A. Project completion
B. Project postmortem
C. Project wake
D. Project parity

Answers

Answer:

A. Project completion is the answer

plz mark me as brainliest

Answer is : A, project completion
(Hope you have a good day!)

Discount loan. ​ Up-Front Bank uses discount loans for all its customers who want​ one-year loans. ​ Currently, the bank is providing​ one-year discount loans at . What is the effective annual rate on these​ loans? If you were required to repay at the end of the loan for one​ year, how much would the bank have given you at the start of the​ loan? If you were required to repay ​$ at the end of the loan for one​ year, how much would the bank have given you at the start of the​ loan?

Answers

Complete Question:

Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans. Currently, the bank is providing one-year discount loans at 7.9%. What is the effective annual rate on these loans? If you were required to repay $205,000 at the end of the loan for one year, how much would the bank have given you at the start of the loan? If you were required to repay $205,000 at the end of the loan for one year, how much would the bank have given you at the start of the loan? $Џ (Round to the nearest dollar.)

Answer:

Up-Front Bank

a. The effective annual rate on these loans = 8.58%

b. The amount would have given $188,805.

Explanation:

a) Data and Calculations:

Discount on loans = 7.9%

Effective annual rate on the loans = 7.9%/(100% - 7.9%)

= 7.9%/92.1%

= 0.0858

= 8.58%

b) Amount to be repaid to the bank = $205,000

Amount given after the discount is deducted = $205,000 * 0.921

= $188,805

Amount deducted as interest = $16,195 ($205,000 * 7.9%)

Check:

Effective interest rate = $16,195/$188,805 * 100 = 8.58%

c) Up-Front Bank's discount loan does not require the payment of interest or any other charges.  Instead, these are deducted upfront from the face amount of the loan before it is given out.  The implication is that the receiver of the loan receives less than the face value.  In determining the effective interest rate, the discount amount is divided by the actual loan amount received, multiplied by 100.

A Joe and Jorge both graduated from an engineering college and decided to donate money to their college. They set up 10 engineering scholarships per year starting in 2046 for every year (assume more than 100 years). If $50,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 12% per year, what will the amount of each scholarship be starting in 2046

Answers

Answer:

Each scholarship will have an amount of $ 85,000.

Explanation:

Since Joe and Jorge both graduated from an engineering college and decided to donate money to their college, and they set up 10 engineering scholarships per year starting in 2046 for every year, if $ 50,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 12% per year, to determine what will the amount of each scholarship be starting in 2046 the following calculation must be performed:

(50,000 x 1.12 ^ (2046-2021)) / 10 = X

(50,000 x 1.12 ^ 25) / 10 = X

850,003.22 / 10 = X

85,000.32 = X

Therefore, each scholarship will have an amount of $ 85,000.

Delaware budgeted 35,000 barrels of oil for purchase in June for $90 per barrel. Direct labor budgeted in the chemical process was $240,000 for June. Factory overhead was budgeted at $400,000 during June. The inventories on June 1 were estimated to be:

Oil $15,200
P1 8,300
P2 8,600
Work in process 12,900

The desired inventories on June 30 were:
Oil $16,100
P1 9,400
P2 7,900
Work in process 13,500

Use the preceding information to prepare a cost of goods sold budget for June.

Answers

Answer:

See

Explanation:

Delaware chemical company

Cost of goods sold budget

Direct materials opening inventory

$15,200

Add: purchases (35,000 barrels × $90 per barrels)

$3,150,000

Less. Direct materials closing inventory

$16,100

Direct materials used $3,149,000

Direct labor $240,000

Factory overhead $400,000

Total manufacturing costs $3,789,100

Add: opening work in process $12,900

Cost of goods available for manufacture $3,802,000

3. Suppose you are thinking of purchasing the Moore Co.’s common stock today. If you expect Moore to pay $3.1, $3.38, $3.70, $4.02, and $4.38 dividends at the end of year one, two, three, four, and five respectively and you believe that you can sell the stock for $95 at the end of year five. If you required return on this investment is 11%, how much will you be willing to pay for the stock today?

Answers

Answer:

$69.87

Explanation:

The price i would be willing to pay for the stock can be determined by finding the present value of the dividend payments

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 3.1

Cash flow in year 2 = 3.38

Cash flow in year 3 = 3.70

Cash flow in year 4 = 4.02

Cash flow in year 5 = 4.38 + 95 = 99.38

I = 11%

Present value = $69.87

To find the PV 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.

From a list of companies below select one that would use a job-order costing system. Manufacturer of swimming pool chemicals. Manufacturer of custom hot tubs and spas. Manufacturer of ceramic tile. Producer of yogurt. Home builders Manufacturer of custom tool sheds. Manufacturer of papers clips. Manufacturer of balloons. Manufacturer of custom emergency rescue vehicles.

Answers

Answer:

Companies that would use a job-order costing system include:

1. Manufacturer of custom hot tubs and spas.

2. Home builders.

3. Home builders Manufacturer of custom tool sheds.

4. Manufacturer of custom emergency rescue vehicles.

Explanation:

One common feature among these manufacturers is that their products are custom-made.  Job-order costing system is suitable for the manufacture of individual products and not for mass production of similar items.  Each product is unique and will usually meet the specifications and taste of each customer.  Since their prices are not for the mass market, their costs are usually accounted for differently using the Job-order costing system.

Lin Land Ltd. (LLL) is considering investing in an apartment complex. The sale price is $450,000 and LLL expects to have positive after-tax cash flows from rents of $20,000 for the next three years. At the end of the third year, LLL anticipates selling the apartment complex for a net after-tax gain on sale of $500,000. If LLL's required return is 15%, should LLL go ahead and purchase the apartment complex?

Answers

Answer:

no

Explanation:

we need to determine the npv to know if it is suitable

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

cash flow in year 0 = -450,000

cash flow in year 1 and 2 = 20,000

cash flow in year 3 = 20,000 + 500,000

i = 15%

npv = -75,577.38

where q is the quantity of bicycles produced. When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles. Answer: $ 4718.9869 equation editorEquation Editor b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes

Answers

Question Completion

A manufacturer of mountain bikes has the following marginal cost function:

C(q)=600/(0.7q+5)

Answer:

a. The total cost = $3,492.40

b. The profit on the first 30 bikes is:

= $2,507.60

Explanation:

a) Data and Calculations:

Fixed cost for producing the bicycles = $2,800

Number of bicycles produced = 30

Selling price per bike = $200

Marginal cost (C(q)) =600/(0.7q+5)

= 600/ (0.7*30 + 5)

= 600/ (21 + 5)

= 600/26

= $23.08

Total cost = Fixed cost + (C(q))

= $2,800 + $23.08 * 30

= $2,800 + $692.40

= $3,492.40

Profit:

Sales revenue $6,000 ($200 * 30)

Less Total cost  3,492.40

Profit =             $2,507.60

if you are going to create or own a business, what would it be? List at least 3 and cite your reasons why you have listed them.​

Answers

Answer:

If I were to create a business, and had to choose three alternatives of commercial sectors in which to get involved, I would choose the following:

-Renewable energies, given that given the eventual disappearance of fossil fuels and the rise of electric cars, renewable energies will become the main source of power in the medium-term future.

-Mining of cryptocurrencies, inasmuch as these currencies have been classified as the money of the future, and the exponential growth they have had since their inception has been remarkable.

-Retail of essential consumer goods, such as food, as it is a necessary industry and whose consumption, despite the ups and downs of the economy, never declines.

Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $900,000 of 10-year, 7% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.

May 1. Issued the bonds for cash at their face amount.
Nov. 1. Paid the interest on the bonds.
Dec. 31. Recorded accrued interest for two months.

Required:
Journalize the entries to record the above selected transactions for the current year.

Answers

Answer:

May 1

Cash                                  $900000 Dr

   Bonds Payable                  $900000 Cr

November 1

Interest Expense                $31500 Dr

     Cash                                    $31500 Cr

Dec 31

Interest Expense                $10500 Dr

     Interest Payable                  $10500 Cr

Explanation:

May 1

The bonds are issued at face value which means the company has received full amount of face value which is $900000. So, we debit cash by $900000 and credit bonds payable by the same amount.

Nov 1

The bonds pay interest semi annually and the amount of semi annual interest is,

Semi annual interest = 900000 * 0.07 * 6/12 = $31500

So, when this interest is paid, interest expense is recorded by $31500 as debit and cash is credited by same amount.

Dec 31

Following the accrual basis of accounting, the interest on bond that relates to November and December of the current year will be recorded as a liability and as an expense for this year. Thus, the amount of the interest will be,

Interest accrued - two months = 900000 * 0.07 * 2/12  = 10500

Carr Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a Group of answer choices

Answers

Answer: A. debit of $3,745 to Premium on Bonds Payable.

Explanation:

The carrying value of the bonds at redemption date is $103,745.

The bonds retired however, had a face value of $100,000.

The company therefore paid a premium on these bonds which is:

= 103,745 - 100,000

= $3,745

This amount will be debited to the Premium on Bonds Payable account.

Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here.

New Office Equipment
1. List price: $41,900; terms: 2/10 n/30; paid within discount period.
2. Transportation-in: $860. Installation: $510.
3. Cost to repair damage during unloading: $431.
5. Routine maintenance cost after six months: $110.

Basket Purchase of Copier, Computer, and Scanner for $51,000 with Fair Market Values
1. Copier $22,755.
2. Computer $6,765.
3. Scanner $31,980.

Land for New Warehouse with an Old Building Torn Down

1. Purchase price, $82,400.
2. Demolition of building, $4,750.
3. Lumber sold from old building, $1,800.
4. Grading in preparation for new building, $7,700.
5. Construction of new building, $217,000.

Required:
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

Answers

Answer:

New Office Equipment $42,863

Basket Purchase Of Copier, Computer, Scanner $61,500

Land For New Warehouse $310,050

Explanation:

Calculation to determine the amount of cost to be capitalized in the asset accounts

NEW OFFICE EQUIPMENT

Amount of cost to be capitalised in the asset accounts = $41,900*0.98+$860+$510+$431

Amount of cost to be capitalised in the asset accounts =$41,062+$860+$510+$431

Amount of cost to be capitalised in the asset accounts =$42,863

BASKET PURCHASE OF COPIER, COMPUTER AND SCANNER

Amount of cost to be capitalised in the asset accounts = $22,755 + $6,765 + $31,980

Amount of cost to be capitalised in the asset accounts= $61,500

LAND FOR NEW WAREHOUSE with an old building torn down

Amount of cost to be capitalised in the asset accounts = $82,400 + $4,750 - $1,800 + $7,700 + $217,000

Amount of cost to be capitalised in the asset accounts = $310,050

Therefore The Amount of cost to be capitalised in the asset accounts are:

New Office Equipment $42,863

Basket Purchase Of Copier, Computer, Scanner $61,500

Land For New Warehouse $310,050

Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2020. Mio's salary for 2020 is $190,000. Assume a 366-day year. In your computation, round any division to four decimal places before converting to a percentage. For example, 0.473938 would be rounded to 0.4739 and converted to 47.39%. If required, round your final answer to the nearest dollar. What is Mio's foreign earned income exclusion

Answers

Answer:

Mio's foreign earned income exclusion is $99,960

Explanation:

The calculation of the Mio's foreign earned income exclusion is given below:

The foreign earned income exclusion limit for 2020 is $107,600

Now the foreign earned income exclusion depend on days equivalent to

=  Foreign earned income exclusion limit × (2020 days ÷ total number of days in a year)

= $107,600 × (340 days ÷ 366 days)

= $99,960

Hence, Mio's foreign earned income exclusion is $99,960

Jesse is a part-time nonexempt employee in Austin, Texas, who earns $12.50 per hour. In January, during the last biweekly pay period he worked 35 hours. He is married with zero withholding allowances, which means his federal income tax deduction is $10.00, and has additional federal tax withholding of $30 per pay period. (Do not round interim calculations, only round final answer to two decimal points.) What is his net pay?

Answers

Answer: $364.03

Explanation:

From the information given, Jesse's net pay will be:

Gross Pay = $12.50 × 35 = $437.50

Less: Federal tax = $30.00

Less: Fica = $27.12

Less: Medicare $6.35

Less: federal income tax deduction = $10.00

Less: State = $0.00

Net Pay = $364.03

Based on the calculation above, Jesse's net pay will be $364.03

Maplewood Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000 Maplewood has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Maplewood wants to break even on the order, what should the unit sales price be

Answers

Answer:

$8.1

Explanation:

Variable cost to be incurred for the offer = ($420,000/70,000) * 3,000

Variable cost to be incurred for the offer = $6 * 3,000

Variable cost to be incurred for the offer = $18,000

Additional Fixed cost = $6,300

Total Cost incurred for the offer = Variable cost to be incurred for the offer + Additional Fixed cost

Total Cost incurred for the offer = $18,000 + $6,300

Total Cost incurred for the offer = $24,300

Unit Sales Price (Break even) = Total Cost incurred for the offer / 3,000 units

Unit Sales Price (Break even) = $24,300 / 3,000 units

Unit Sales Price (Break even) = $8.1

Machinery purchased for $73,800 by Blossom Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,920 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,535 at the end of that time. Assume straight-line depreciation.

Required:
Prepare the entry to correct the prior years' depreciation, if necessary.

Answers

Answer:

See explanation

Explanation:

Prior year depreciation lies in the Profit Reserve called  Retained Earnings and in the Asset therefor correct Profit Balance and Asset Balances to effect this adjustment.

Depreciation Expense = (Cost - Salvage Value ) ÷ Estimated Useful Life

Waterway Corp. purchased machinery for $315,600 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value of $18,600, production of 237,600 units, and working hours of 25,000. During 2021, Waterway Corp. uses the machinery for 2,650 hours, and the machinery produces 30,300 units. From the information given, compute the depreciation charge for 2021 under each of the following methods.

a. straight line $_____:
b. Units-of-output $________:
c. Working Hours $______:
d. Sum-of-the-years-digits $_________:
e. Declining balance (use 20% as the annual rate).

Answers

Answer:

Waterway Corp.

a. straight line $__29,700___:

b. Units-of-output $__37,875___:

c. Working Hours $___31,482___:

d. Sum-of-the-years-digits $____48,600_____:

e. Declining balance (use 20% as the annual rate) = $54,704

Explanation:

Cost of machinery purchased on May 1, 2020 = $315,600

Estimated useful life = 10 years

Salvage value = $18,600

Depreciable amount = $297,000

Production units = 237,600

Working hours = 25,000

Straight-line method:

Annual Depreciation Expense = $29,700 ($297,000/10)

Production units:

Depreciation per unit = $1.25 ($297,000/237,600)

Working hours:

Depreciation per hour = $11.88 ($297,000/25,000)

Sum-of-the-years-digits = 55 years;

Depreciation per year = $5,400 ($297,000/55)

Declining balance rate = 20% (100/10 * 2)

During 2021:

Straight-line:

Depreciation expense = $29,700

Machine hours used = 2,650

Depreciation expense = 2,650 * $11.88

= $31,482

Production units = 30,300

Depreciation expense = 30,300 * $1.25

= $37,875

Sum-of-the-years-digits:

Depreciation expense = 9 * $5,400 = $48,600

Declining balance:

2020 = $315,600 * 20%  * 8/12 = $63,120 * 8/12 = $42,080

2021 balance = $273,520

2021 Depreciation expense = $273,520 * 20% = $54,704

Utilize the following financial information to answer the question. Current value of land $2,000,000 Cost to rebuild the physical structure $7,500,000 Furniture, fixtures and equipment $ 500,000 Economic deductions $ 800,000 Functional obsolescence $ 200,000 Physical deterioration $1,000,000 Based on the cost replacement approach, how much would be estimated value of the property

Answers

Answer: $8,000,000

Explanation:

Based on the cost replacement approach:

Estimated value = Land Value + Replacement Value - Deductions from value

Replacement value = Cost to rebuild physical structures + Furniture

= 7,500,000 + 500,000

= $8,000,000

Economic deductions:

= 800,000 + 200,000 + 1,000,000

= $2,000,000

Estimated value = 2,000,000 + 8,000,000 - 2,000,000

= $8,000,000

Allison Company has 40,000 shares of $320 par value, 5% cumulative preferred stock and 140,000 shares of $80 par value common stock. Allison declares and pays cash dividends amounting to $900,000. If no arrearage on the preferred stock exists, how much in dividends per share (use two decimal places) is paid to the common stockholders

Answers

Answer:

$1.86

Explanation:

Preference shares get first preference when dividends are being paid. So, out of the dividend declared, we first payoff Preference dividends then the remainder goes to Common Stock holders.

Cash Dividend = $900,000

Preference Dividends

Preference Stockholders receive a fixed dividend calculated as :

Dividend = 40,000 shares x $320 x 5 % = $640,000

Dividend per share = $640,000 / 40,000 = $16.00

Common Stockholders Dividends

Remainder = $900,000 - $640,000 = $260,000

Dividend per share = $260,000 / 140,000 = $1.86

Conclusion :

Dividends per share paid to the common stockholders is $1.86

Hardware is adding a new product line that will require an investment of . Managers estimate that this investment will have a​ 10-year life and generate net cash inflows of the first​ year, the second​ year, and each year thereafter for eight years. The investment has no residual value. Compute the payback period.

Answers

Answer: 6.17 years

Explanation:

Payback period = Period before debt is paid back + Amount left to to be paid back / Cashflow in year of payback.

Year                   Cash Flows                        Amount left to be paid back

 0                       (1,540,000)                                  (1,540,000)

  1                          315,000                                    (1,225,000)

  2                         265,000                                   (960,000)

  3                         230,000                                   (730,000)

 4                         230,000                                    (500,000)

 5                         230,000                                    (270,000)

 6                        230,000                                     (40,000)

 7                        230,000                                     190,000

Year before payback = 6

Payback amount = 6 + (40,000 / 230,000)

= 6.17 years

Place the events in order to describe how money the Fed adds to the economy starts to be multiplied. The reserve requirement in this example is 10%.

a. The bank lends $900 to a customer needing a loan.
b. The store owner deposits the $900 in another bank.
c. The customer spends the $900 at a store.
d. The bank sets $100 aside as required reserves.
e. The Fed buys a security from a bank for $1,000.

Answers

Answer:

1. e. The Fed buys a security from a bank for $1,000.

In order to increase money supply, the Fed buys a security from the bank and gives them money.

2. d. The bank sets $100 aside as required reserves.

The bank will set aside 10% of the money paid by the Fed which comes to $100 leaving the bank with $900.

3. a. The bank lends $900 to a customer needing a loan.

The bank then lends this money to customer who needed it.

4. c. The customer spends the $900 at a store.

The customer then spends the money thereby transferring it to another party.

5. b. The store owner deposits the $900 in another bank.

The store owner then takes the money spent by the customer and deposits it in another bank. That bank then gives the Fed 10% and then the cycle repeats.

Answer:

E.

D.

A.

C.

B.

Explanation:

Other Questions
A credit card company advertises an APR of 17.2%, compounded daily. What is the effective interest rate PLEASE HELP ASAP THIS IS A MAJOR TEST FOR ME! Below is the number of innings pitched by each of the Greenbury Goblins' six starting pitchers during the Chin Tournament. Find the median number of innings pitched. The Greek city-state of ____________ was founded on democratic principles.Del phiCorinthAthensSparta Power is the rate at which...........is done or the rate at which........... is converted from one form to another . Which of the following processes causes the webbing to disappear?Choose 1 answer:. MitosisB. MeiosisC.ApoptosisD.Fertilization In Act III, When Juliet refuses to marry Paris, Lord CapuletA threatens never to see her again and strikes her.B vows to banish her from Verona,C blames the Friar and the Nurse for interfering.D send her to Friar Laurence to confess her sins. 2. An atom of Be has four protons, five neutrons and four electrons. What 10 poinis the mas of Be? *O a.4b. 5c. 109 During reading, Alyssa encounters the word flaw. She believes that flaw means physical or structural defect.Which sentence uses Alyssas definition of the word flaw?Impatience, especially with his younger sister, has always been a flaw for Justin.The flaw in the story's plot caused confusion for several readers.Even though Marty tries to avoid sweets, chocolate remains a flaw of his.The gemstone's one major flaw was a tiny black speck. Can someone please help me?? I have a huge test coming up and I need to review for it. Do you know the answer? If you do, please explain it because i want to be sure the day of the test. Thanks!! 25 Points!! What are the different variables of greenhouse gases and how do they affect one another? What is the Slope in the equation y= -2x +5 www.biologycomer.com10. At 100x, you will see a cell that is larger and has a dark shape in it. This cell doesn't look like the others because it is awhite blood cell and it functions to protect your body against microbes. Red blood cells do not have a nucleus. White blood cellcount is used as a diagnostic tool to determine if someone is sick. If you were fighting an infection, would you expect to havemore or less WBC's? Why? Please answer question! What energy created from heat that comes from inside Earth?geothermalwindwatersolar which body of water lies to the west Mecca and Medina? what is the coefficient of 49n+986=-43 Dan and David are marking exam papers. Each set takes Dan 35 minutes and David 1 hour. Express the time's Dan and David take as a ratio.Give your answer in its simplest form. Give give examples of cleanliness please begging you guys someone help me Read this excerpt from A Black Hole is NOT a Hole.So much for experiencing a smallish black hole; youd have no time for sightseeing. A visit to a bigger black hole could be more interesting. It might take a while for the major effects to kick in. As you drifted in from the event horizon toward the singularity at the center, you might get a chance to look around.Which question would be relevant to ask about this excerpt?What sort of sightseeing is there to do in a large black hole?Why do larger black holes exert a greater force?Why do smaller black holes exert a greater force?What sort of sightseeing is there to do in a small black hole?