Answer:
the economy will adjust to full employment of resources.
Explanation:
Of course, that was one of the primary views of classical economists such as J.B. Say and Alfred Marshal.
They held that it was possible to do what many modern economists would call the impossible: full employment, One where the economy uses its resources to the full.
Suppose you have two friends who have the same underlying ability, took the same courses in college, and have the same GPA. One of them decides to go to a business school for an MBA, while the other one chooses to pursue a PhD in English literature. Given that the expected earnings of an MBA are much higher than the expected earnings of an English PhD, is one of your friends being irrational?
Answer:
Rational is based on the logical preference. Being irrational does not means that the choice is made based on monetary preference. It is more logical than monetary.
Explanation:
The two friends took same courses in college but after the completion of college degree one decides to go for MBA and other pursues PhD in English. The expected earnings of MBA are higher than PhD but one of friend who chooses the PhD has not considered the logical decision making based on money. He might have chose the PhD because he is more interested in becoming a professor rather than a business professional.
Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts has a debit balance of $10,500; and sales for the year total $51,850,000. Bad Debt Expense is estimated at 1/4 of 1% of sales.
A. Determine the amount of the adjusting entry for uncollectible accounts.
B. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
C. Determine the net realizable value of accounts receivable.
Answer:
a. Amount of bad debts = Sales * (Bad debts %) = $51,850,000 * 0.25% = $129,625. Thus, the amount of the adjusting entry for uncollectible accounts is $129,625.
b. The adjusted balances are as follow
Accounts Receivable $2,150,000
Allowance for Doubtful Accounts $119,125 (129,625 - 10,500)
Bad Debt Expense $129,625
c. Net realizable value of accounts receivable = Balance of accounts receivables - Allowance for Doubtful Accounts
Net realizable value of accounts receivable = $2,150,000 - $119,125
Net realizable value of accounts receivable = $2,030,875
Question #1
A business organization that has members is a(n)
O Sole proprietorship
O Corporation
O Partnership
O LLC
Answer:
O LLC
Explanation:
Owners of a limited liability company, LLC are called its members. An LLC is formed by at least one member but has no upper limit. Members of an LLC may opt to get involved in managing business affairs. They enjoy unlimited liabilities to the debts of the entity. LLC members can be compared to the shareholders of a corporation.
Marge owns land and a building (held for investment) with an adjusted basis of $75,000 and a fair market value of $250,000. The property is subject to a mortgage of $400,000. Because Marge is in arrears on the mortgage payments, the creditor is willing to accept the property in return for canceling the amount of the mortgage.
a. How can the adjusted basis of the property be less than the amount of the mortgage?
b. If the creditor's offer is accepted, what are the effects on the amount realized, the adjusted basis, and the realized gain or loss for Marge?
c. Does it matter in (b) if the mortgage is recourse or nonrecourse?
Answer:
A. The amount deducted for Depreciation may be higher than the amortized amount of the mortgage principal.
Decrease in the value of the property after they granted the mortgage
Bi $400,000
ii. $75,000
iii. $325,000
C.No
Explanation:
a. The adjusted basis of the property can be tend to be lesser than the amount of the mortgage due to the fact that in the beginning of an asset life the amount that was deducted for Depreciation may be more higher than the amortized amount of the mortgage principal .
Secondly the adjusted basis of the property can be tend to be lesser than the amount of the mortgage when their is Decrease in the value of the property after they granted the mortgage .
Lastly the adjusted basis of the property can be tend to be lesser than the amount of the mortgage when the fair market value of Property are been given instead of the Adjusted basis of the property.
b. Calculation for the effects on the amount realized, the adjusted basis, and the realized gain or loss for
i. Based on the information given the amount that was realized will be the amount of $400,000
ii. Based on the information given the Adjusted basis will be the amount of $75,000
iii. Realized gain=$400,000 − $75,000
Realized gain= $325,000
c.No it don't not matter if the mortgage is recourse or nonrecourse since the amount that was realized was the amount of $400,000 and
to justify the nonrecourse mortgage is that the taxpayer has already enjoy some benefit when the mortgage was acquired due to the increase in Adjusted basis of the property.
During February, $80,110 was paid to creditors on account, and purchases on account were $102,540. Assuming that the February 28 balance of Accounts Payable was $34,450, determine the account balance on February 1. $fill in the blank 1 b. On October 1, the accounts receivable account balance was $30,300. During October, $263,600 was collected from customers on account. Assuming that the October 31 balance was $34,800, determine the fees billed to customers on account during October. $fill in the blank 2 c. On April 1, the cash account balance was $13,620. During April, cash receipts totaled $207,020 and the April 30 balance was $9,810. Determine the cash payments made during April. $fill in the blank 3
Answer:
a. Accounts Payable on February 1 = $12,020
b. The fees billed to customers on account during October = $268,000
c. The cash payments made during April = $210,810
Explanation:
a) Data and Calculations:
1. Accounts payable:
February 1 = $12,020
Purchases 102,540
Payment (80,110)
February 28 $34,450
2. Accounts Receivable:
October 1 balance $30,300
Fees 268,000
Collections 263,600
October 31 balance $34,800
3. Cash:
April 1 balance $13,600
Receipts 207,020
Payments 210,810
April 30 balance $9,810
A review of Parson Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 85,000 units
Answer:
Total cost= $1,040,000
Explanation:
For 90,000 units:
Unitary variable cost= $8
Unitary fixed cost= $4
First, we need to calculate the total fixed cost:
Total fixed cost= 4*90,000= $360,000
Now, we can determine the total cost for 85,000 units:
Total cost= 85,000*8 + 360,000
Total cost= $1,040,000
Assume the smart watch industry is a perfectly competitive industry that uses a specialized input. If this industry experiences an increase in demand, we might expect that in the long run: Multiple Choice neither input nor output prices will increase. both input and output prices will increase. only input prices will increase. only output prices will increase.
Answer:
Option B, both input and output prices will increase
Explanation:
Since the demand far smart watches is increasing, the price of watches will escalate to cater the opportunity cost. With the rising demand for smart watch, the demand for specialized input will also increase. Considering the growth in demand for specialized input, its cost shall also escalate to take the benefit of opportunity. Along with raw material, variable costs such as transportation, manpower, electricity etc. will also increase both in input (bringing raw material and producing final product) and output (export of the final product)
In nut shell, both the input and output price will increase.
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows:
Required
a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year.
b. Allocate overhead costs to each month using the overhead rate computed in Requirement a.
c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Month Jan Feb March April
Number of Units 6,000 7,000 3,000 4,000
Expected Cost
Overhead ? ? ? ?
Direct Cost ? ? ? ?
Total Cost
Cost per unit ? ? ? ?
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate for the period:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (80,000*4) / 20,000
Predetermined manufacturing overhead rate= $16 per unit
Now, we can allocate overhead to each month:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January= 6,000*16= $96,000
February= 7,000*16= $112,000
March= 3,000*16= $48,000
April= 4,000*16= $64,000
The total unitary manufacturing costs are constant:
Total unitary manufacturing cost= 12 + 16
Total unitary manufacturing cost= $28
Assume Intel Corporation (INTC) and Texas Instruments (TXN) report the following information. Intel Corp Texas Instruments ($ millions) Sales PPE, net Sales PPE, net 2015 $34,209 $15,768 $12,580 $3,918 2016 38,826 17,111 13,392 3,899 Compute the 2016 PPE turnover for both companies. a. INTC: 2.27 TXN: 3.44 b. INTC: 2.17 TXN: 3.21 c. INTC: 2.50 TXN: 3.50 d. INTC: 2.36 TXN: 3.43
Answer:
d. INTC: 2.36 TXN: 3.43
Explanation:
The property , plant equipment turnover is the ratio of sales divided by the amount of PPE as shown below:
PPE turnover=sales/(beginning PPE+ending PPE)/2
Intel Corporation (INTC):
PPE turnover=$38,826/($15,768+$17,111)/2
PPE turnover=$38,826/$16,439.50
PPE turnover=2.36 times
Texas Instruments (TXN):
PPE turnover=$13,392/( $3,918+$3,899)/2
PPE turnover=$13,392/$3,908.50
PPE turnover=3.43 times
The correct option is D
Which of the following are sections of the Schedule of Cost of Goods Manufactured?
a. Direct Labor
b. Direct Materials
c. Factory Overhead
d. Cost of Goods Manufactured
e. Cost of Goods Sold
f. Net Income
Answer:
a. Direct Labor
b. Direct Materials
c. Factory Overhead
d. Cost of Goods Manufactured
Explanation:
Costs of Goods Manufactured Schedule records the total of manufacturing costs only. So, consider all costs related to manufacturing process for this question.
Katherine Stein told her boss, "Dan, a number of our senior staff will be retiring within five years. We can't afford to have the combined expertise, skills, wisdom, and relationships of these retirees walk out the door without first discovering and sharing these intellectual resources. I recommend that we implement a(n) ______________ system to harness this intellect."
Answer: knowledge management
Explanation:
Based on the information given, knowledge management would be used to harness this intellect.
Knowledge management simply has to do with the creation, and management of information and knowledge for an organization so that the organization's objectives can be achieved.
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in the Connect. This material also is available under the Investor
1. What amounts did Target report for the following items for the year ended January 30, 2016?
b) Income from current operations
c) Net income or net loss
d) Total assets
e) Total equity
2) What was Target’s basic earnings per share for the year ended January 30, 2016?
Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
3) Regarding Target’s audit report:
Who is Target’s auditor?
Did Target receive a "clean" (unmodified) audit opinion?
Answer:
1. What amounts did Target report for the following items for the year ended January 30, 2016?
b) Income from current operations
$2,669 million
c) Net income or net loss
$2,737 million
d) Total assets
$37,431 million
e) Total equity
$10,953
2) What was Target’s basic earnings per share for the year ended January 30, 2016?
$4.74 per share
Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
I guess that Christmas Holiday season is very important for them and a large percentage of their revenue is generated during November and December. It reports at the end of January to have time to consolidate its financial statements.
3) Regarding Target’s audit report:
Who is Target’s auditor?
Ernst & Young
Did Target receive a "clean" (unmodified) audit opinion?
yes, it did
The purpose of a SWOT analysis is to ___.
a. evaluate the marketing strategy that a company has been using.
b. determine the best strategy for the company.
c. compare the company's advantages with that of its competitors.
d. identify important company and environmental factors.
e. formulate goals and objectives for a company.
Answer: e. formulate goals and objectives for a company.
Explanation:
The SWOT analysis helps in decisions making in businesses. It helps in changing the needs of the organization. It helps the organization to build a plan so as to meet goals and improve the performances, and it also helps in keeping the relevancy in businesses in terms of decisions. It helps in analyzing the deep strengths, threats and weaknesses of the organization. It helps in promoting the overall growth, production, and services. It targets the market competition to develop necessary strategy.
On February 12, Goal Publishing, Inc., purchased the copyright to a book for $15,000 and agreed to pay royalties equal to 10% of book sales, with a guaranteed minimum royalty of $60,000. Goal had book sales of $750,000 during the year. In its income statement, what amount should Goal report as royalty expense for the year
Answer:
$75,000
Explanation:
The computation of the amount reported as a royalty expense is given below:
There is a guaranteed minimum royalty of $60,000
And the 10% of book sales is $75,000
So the amount that should be reported as a royalty expense would be higher of the two amount i.e. $75,000
Therefore the same is relevant
Assume that price level in the ABC Islands, a U.S. trading partner, increases signaling inflation in the ABC Island economy.
Using aggregate demand aggregate supply analysis, explain the impact of the increased price level on the United States economy. If the Federal Reserve wants to repair the effects on the U.S. economy noted above, identify a policy action it might undertake.Explain the impact of the Fed action on each of the following:
a. Output
b. Price level
c. The international value of the U.S. dollar
Answer is given below :
Explanation:
Inflation on ABC Island makes goods produced by ABC Island more expensive and makes goods made in the US cheaper. Thus the demand for goods made in the US will increase, the US export demand will increase, thereby the US net exports will increase and the US total demand will increase. The AD curve increases the real, shift price level and real GDP in the US economy. The unemployment rate will fall and demand for the US dollar will rise, causing the dollar to appreciate.In the following graph, the initial equilibrium is at point A, where AD0 (total demand) and SRAS0 (low-run total supply) intersection curves, equilibrium price levels P0 and true GDP Y0. As total demand increases, AD0 shifts to the right of AD1, blocking SRAS0 at point B with high P1 and high true GDP Y1. high total demand leads to inflation, the Fed wants to reduce inflation by reducing total demand. This can be done by using a contract monetary policy, by raising the required monetary ratio, by raising the discount rate, or by selling federal securities on the open market. Any of these tools will reduce the money supply, thereby increasing interest rates, reducing investment and reducing total demand. As a result,Output will decrease.Price will decrease.Low production reduces US import demand, thereby reducing foreign exchange demand. Foreign currency depreciation and the US dollar are appreciated.Manufacturing cost data for Copa Company are presented below. Indicate the missing amount for each letter (a) through (i).
Case A Case B Case C
Direct materials used $(a) $73,230 $133,500
Direct labor 59,750 90,370 (g)
Manufacturing overhead 50,000 84,670 104,900
Total manufacturing costs 198,600 (d) 257,500
Work in process 1/1/20 (b) 19,770 (h)
Total cost of work in process 224,960 (e) 339,300
Work in process 12/31/20 (c) 16,940 72,760
Cost of goods manufactured 189,300 (f) (i)
Answer:
(a) $88,850
(b) $26,360
(c) $35,660
(d) $248,270
(e) $268,040
(f) $251,100
(g) $19,100
(h) $81,800
(i) $412,060
Explanation:
$59,750 + $50,000 - $198,600 = $88,850
$198,600 - $224,960 = $26,360
$224,960 - $189,300 = $35,660
$73,230 + $90,370 + $84,670 = $248,270
$248,270 + $19,770 = $268,040
$268,040 - $16,940 = $251,100
$133,500 + $104,900 - $257,500 = $19,100
$257,500 - $339,300 = $81,800
$339,300 + $72,760 = $412,060
The cost of goods manufactured calculates the total production cost of manufactured goods in a particular period.
Manufacturing cost data for Copa Company
(A)Direct materials used= $59,750 + $50,000 - $198,600 = $88,850
(B)Work in process 1/1/20 =$198,600 - $224,960 = $26,360
(C)Work in process 12/31/20=$224,960 - $189,300 = $35,660
(D)Total manufacturing costs=$73,230 + $90,370 + $84,670 = $248,270
(E)Total cost of work in process =$248,270 + $19,770 = $268,040
(F)Cost of goods manufactured=$268,040 - $16,940 = $251,100
(G)Direct labor=$133,500 + $104,900 - $257,500 = $19,100
(H)Work in process 1/1/20 =$257,500 - $339,300 = $81,800
(I)Cost of goods manufactured=$339,300 + $72,760 = $412,060
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If you deposit $5,000 4 years from today, how much can you withdraw 10 years from today if interest is 6 percent per year compounded annually?
Answer:
the future value is $7,093
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $5,000 × (1 + 0.06)^6
= $5,000 × 1.06^6
= $7,093
Hence, the future value is $7,093
A $600,000 state lottery prize is spread evenly over twelve years ($50,000 a year) (Alternative 1), or you may take a lump distribution of $452,000 (Alternative 2). If you can earn 8 percent, calculate the present values of both alternatives. Use Appendix D to answer the question. Round your answers to the nearest dollar.
Answer and Explanation:
The computation of the present values of both alternatives is shown below:
For alternative one, the lump sum amount is
= Yearly payment × PVIFA factor at 8% for 12 years
= $50,000 × 7.5361
= $376,805
And, in the alternative 2, the lumpsum amount i.e. present value is $452,000
So as we can see that the alternative 2 is better as the lumspsum amount is high as compared with the alternative 1
Terry Dactal has compiled the financial information displayed below. Which of the following is Terry’s net worth? Salaries $72,400 Credit Card Balance $8,600 Cash on Hand $1,500 Utilities paid to date $8,450 Coin Collection $2,350 Jewelry value $8,500 Home value $335,000 Auto loan balance $14,300 Stock Portfolio value $18,500 1967 Ford Mustang value $40,900 Grocery Expenses $7,550 Checking account $3,200 Mortgage Balance $278,600 Property Taxes owed $1,750 Mortgage loan payments made $19,500 Student loan balance $26,200 New York vacation expenses paid $4,200 Auto loan payments paid $6,600 Income taxes paid-to-date $9,100 Clothing/entertainment expense $5,000 Interest earned $400 Insurance premiums paid $5,500
Answer: $80,500
Explanation:
A person's net worth is their Net assets less their liabilities.
Terry's assets include:
Cash on hand, Coin collection, Home value, Jewellery, stock portfolio, 1967 Ford Mustang, Checking account
Terry's liabilities include:
Credit card balance, Auto loan balance, Mortgage balance, Property taxes owed, Student loan balance.
Net worth is therefore:
= (1,500 + 2,350 + 335,000 + 8,500 + 18,500 + 40,900 + 3,200) - (8,600 + 14,300 + 278,600 + 1,750 + 26,200)
= $80,500
If you receive 10 units of utility from consuming one cup of coffee and 16 units of utility from consuming two cups of coffee, which of the following is the likely amount of utility you will receive from consuming three cups of coffee?
Answer:
26
Explanation:
Answer:
18
Explanation:
1 unit= 10 2 units =16 2/16= 8
3 cups is 18
Owner, Andy Pforzheimer, talks to his staff about their technical skills. He likely expects the Executive Chef, in particular, to excel at which technical
skills? Check all that apply.
Answer: Knowledge of kitchen equipment such as an anti-griddle or kitchen torch
Preparing delicious menu items for customers to enjoy
Explanation:
Technical skills simply refers to the skills and the abilities that one should have so that the person can be able to do his or her job effectively.
In this case, the owner expects the Executive Chef to excel at:
• Knowledge of kitchen equipment such as an anti-griddle or kitchen torch
• Preparing delicious menu items for customers to enjoy.
As a chef, he must be able to prepare delicious meals and also have knowledge of the kitchen utensils and the equipments.
Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Pool - Budgeted O/H $ - Budgeted Level for Cost Driver - O/H Cost Driver
Materials Handling $160,000 3,200 lbs. Material Weight
Machine Setup 13,200 390 S/U�s # of S/Us
Machine Repair 1,380 30,000 Mach. Hrs Machine Hrs.
Inspections 10,560 160 Inspections # of Inspections
Requirements for Job #971 which included 4 Units of Production:
D/L Hours = 20 Hours
D/Mat�ls = 130 lbs.
Machine S/U = 30 Set-ups
Machine Hrs. = 15,000 Machine Hours
Inspections = 15 Inspections.
Using ABC, the materials handling overhead cost assigned to Job #971 is:______.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020.
Answer:
c. $6,500.
Explanation:
The computation of the material cost assigned to Job 971 is as follows:
= Budgeted Overhead × Material Weight for Job 971 ÷ Total Weight
= $160,000 × 130 ÷ 3200
=$6,500
Hence, the material cost assigned to Job 971 is $6,500
Therefore the correct option is c.
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store.Issued 100,000 shares of common stock in exchange for $500,000 cash.Purchased office equipment at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed.Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000.Paid $6,000 in rent on the store building for the month of June.Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.Paid $120,000 on account for the merchandise purchased in 3.Collected $55,000 from customers on account.Paid shareholders a cash dividend of $5,000.Recorded depreciation expense of $2,000 for the month on the office equipment.Recorded the amount of prepaid insurance that expired for the month.
Answer:
Sew below
Explanation:
Sidwell
Debit Cash account $500,000
Credit Common stock $625,00
To record the issue of 100,000 shares for cash
Debit office equipment $100,000
Credit cash account $40,000
Credit notes payable $60,000
To record the purchase of office equipment
Debit inventory $200,000
Credit Accounts payable $200,000
To record the purchase of inventory
Debit Accounts receivables $280,000
Credit Sales revenue $280,000
To record the sales of goods on account
Debit Cost of goods sold $140,000
Credit Inventory $140,000
To record the cost of goods sold
Debit rent expenses $6,000
Credit cash account $6,000
To record the payment of rent for the month
Marketing and common sense
A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.
 Basic       Deluxe
Sales (units) 8,000 2,000
Sales price per unit $8,000 $12,000
Variable costs per unit $6,400 $9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.
Required:
a. What is the sales activity variance for the basic model?
b. Is the sales activity variance for the basic model favorable or unfavorable? What is the sales activity variance for the deluxe model?
c. What is the sales mix variance for the basic model?
d. What is the sales quantity variance for the basic model?
e. What is the sales mix variance for the deluxe model based?
f. What is the sales quantity variance for the deluxe model?
Answer:
A. $1,600,000
B. Unfavorable
$2,400,000
C. $1,344,000
D. $256,000
E. $2,520,000
F. $120,000
Explanation:
a. Calculation for What is the sales activity variance for the basic model
Sales activity variance=(7,000 - 8,000) *($8,000 - $6,400)
Sales activity variance=$1,000*$600
Sales activity variance= $1,600,000
Therefore Sales activity variance for the basic model will be $1,600,000
b. The sales activity variance for the basic model is UNFAVORABLE reason been that the sales amount is lesser than the budgeted amount
Calculation for What is the sales activity variance for the deluxe model
Sales activity variance=(2,800 - 2,000) *($12,000 - $9,000)
Sales activity variance=800*3,000
Sales activity variance= $2,400,000
Therefore the sales activity variance for the deluxe model will be $2,400,000
c. Calculation for What is the sales mix variance for the basic model
Sales mix variance=[7,000 - 8,000/10,000 *(7,000 + 2,800)] *($8,000 - $6,400)
Sales mix variance=[7,000 - 80% *(7,000 + 2,800)] *($8,000 - $6,400)
Sales mix variance=[7,000 - 80% *(9,800)] *($1,600)
Sales mix variance=[7,000 -7,840 ] *($1,600)
Sales mix variance=840*$1,600
Sales mix variance= $1,344,000
Therefore the sales mix variance for the basic model will be $1,344,000
d. Calculation for What is the sales quantity variance for the basic model
Sales quantity variance=(9,800 - 10,000) x (8,000/10,000) x ($8,000 - $6,400)
Sales quantity variance= $256,000
Therefore the sales quantity variance for the basic model will be $256,000
e. Calculation for What is the sales mix variance for the deluxe model based
Sales mix variance=[2,800 - 2,000/10,000 *(7,000 + 2,800)] *($12,000 - $9,000)
Sales mix variance=[2,800 - 20% *(7,000 + 2,800)] *($12,000 - $9,000)
Sales mix variance=[2,800 - 20% *(9,800)] *($3,000)
Sales mix variance=[2,800 -1,960 ] *($3,000)
Sales mix variance=840*$3,000
Sales mix variance= $2,520,000
Therefore the sales mix variance for the deluxe model based will be $2,520,000
f. Calculation for What is the sales quantity variance for the deluxe model
Sales quantity variance=(9,800 - 10,000) x (2,000/10,000) x ($12,000 - $9,000)
Sales quantity variance= $120,000
Therefore the sales quantity variance for the deluxe model will be $120,000
The question is about variances of a machine distributor.
A Sales Activity Variance Basic
8000 - 7000 = 1000 * $8000
= $8,000,000
B. Unfavorable
Sales Activity Variance Deluxe
2000 - 2800 = 800 * $12000
=9,600,000
Favorable
Sales Mix Variance Basic
$8000 - $6400 = $1600
1000 * $1600 = $1,600,000
Sales Mix Variance Deluxe
$12000 - $9000 = $3000
800 * $3000 = $2,400,000
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A country has constant opportunity cost of production. If they devote all of their resources to the production of blankets they can produce a total of 284 per week. If they devote all of their resources to the production of t-shirts they can produce a total of 612 shirts per week. What is the opportunity cost of producing 1 blanket
Answer:
2.15 shirts
Explanation:
Opportunity cost or implicit is the cost of the next best option forgone when one alternative is chosen over other alternatives
By producing one more blanket, the country would be forgoing the opportunity to produce one more shirt.
opportunity cost of producing 1 blanket = 612 shirts / 284 = 2.15 shirts
What is the difference between a programmed and a non-programmed decision?
A design consultant says your dining area is too crowded and redesigns your space with three fewer tables to resolve the problem. Each table yields an average of $150 / day. You are closed Mondays. About how much money will you lose in a year by removing three tables?
Answer:
$140,400
Explanation:
Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold its two-year-old ovens at a discount for $700,000. Great Harvest incurred and paid freight costs of $35,000, and its employees ran special electrical connections to the ovens at a cost of $5,000. Labor costs were $37,800. Unfortunately, one of the ovens was damaged during installation, and repairs cost $5,000. Great Harvest then consumed $900 of bread dough in testing the ovens. It installed safety guards on the ovens at a cost of $1,500 and placed the machines in operation.
Prepare a schedule showing the amount at which the ovens should be recorded in Great Harvest's Equipment account.
Answer:
Particulars Amount
Purchase price $700,000
Add: Freight cost $35,000
Add: Electrical connections $5,000
Add: Labor costs $37,800
Add: Bred dough used $900
Add: Safety guards $1,500
Total cost of Equipment $780,200
Note: Repairs cost of $5,000 will not be included
g Mystery Inc has a beta of 1.1. The firm just paid a dividend of 60 cents and the dividends are expected to grow at 5.5% per year. The expected return on the market is 10% and treasury bills have a yield of 5%. The company's current stock price is $45. Calculate the cost of equity using the dividend growth model.
Answer:
6.91%
Explanation:
The formula for share price using the dividend growth model stated below can be used to determine the cost of equity as well whereby the formula is rearranged in order to make the cost of equity the subject as shown thus:
share price=expected dividend/(cost of equity-growth rate)
share price=$45
expected dividend=last dividend*(1+dividend growth rate)
expected dividend=$0.60*(1+5.5%)=0.633
cost of equity=the unknown
dividend growth rate=5.5%
45=0.633/(cost of equity-5.5%)
45*(cost of equity-5.5%)=0.633
cost of equity-5.5%=0.633/45
cost of equity=(0.633/45)+5.5%
cost of equity=6.91%