Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows:

Direct materials $6
Direct labor 4
Overhead (2/3 of which is variable) 9

Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.

Required:
a. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit.
b. Assume that Mazeppa is currently operating at full capacity. To fill the special order, regular customers will have to be turned away. Now what unit price should it charge the distributor if it wishes to increase total operating income by $60,000 more than it would be without accepting the special order?

Answers

Answer 1

Answer:

a. $20.00

b. $28,75

Explanation:

Find the total incremental costs to satisfy the special order and add $2.00 profit (because we are aiming for a profit not to just break-even).

Calculation of Total Incremental Unit Costs

Direct materials                                          $6 .00

Direct labor                                                 $4.00

Variable Overheads (2/3 × $9)                  $6.00

Shipping Cost                                             $2.00

Total Incremental Unit Cost                      $18.00

Add Profit Element                                     $2.00

Unit Selling Price for the Special Order  $20.00

In this case no changes will occur on fixed overheads, hence it is irrelevant.

Calculation of Desired Net Operating Income

Sales ($28 × 160,000 units)                                     $4,480,000

Less Product Costs :

Direct materials ($6 .00 × 160,000 units)                 ($960,000)

Direct labor ($4.00 × 160,000 units)                        ($640,000)

Variable Overheads ($6.00 × 160,000 units)          ($960,000)

Fixed Overheads ($3.00 × 160,000 units)               ($480,000)

Current Operating Income                                       $1,440,000

Add Desired Increase in Operating Income               $60,000

Desired Operating Income                                      $1,500,000

Unit Profit = $1,500,000 ÷ 160,000 units

                  = $9.375

Unit Profit = Unit Selling Price - Total Unit Costs - Unit Incremental Profit

therefore,

Unit Selling Price = Unit Profit  + Total Unit Costs + Unit Incremental Profit

                             = $9.375 + $19.00 + $0.375

                             = $28,75


Related Questions

Winona and Hubert need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. Winona is pretty good with a pair of shears; she can shear the llamas in 1 hour. Hubert is somewhat slow; it takes him 9 hours to shear the llamas. Winona earns $200 per hour as a psychiatrist, while Hubert earns $25 per hour as a cobbler. Keeping in mind that either Winona or Hubert must take time off from work to shear the llamas, who has the lowest opportunity cost of completing the task?

a. Jacques
b. Kyoko and Jacques face equal opportunity costs
c. Kyoko

Answers

B is the answer your welcome

true or false ,The first step in composing a message is to identify its purpose

Answers

The answer is true because if you don’t identify the purpose then you don’t know what yours writing about.
true because you need to know what you are going to ask

what are you being for halloween

Answers

Answer:

maybe a fox

Explanation:

A dinosaur maybe , mAybe not ,

Suppose that in a competitive market without government regulations, the equilibrium price of a hamburger is $7 each.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.

Answers

Answer:

Price Ceiling regulations prohibit the price of a good or service from being higher than a set price known as the Price Ceiling.

Price Floor regulations prohibit the price of a good or service from being lower than a set price known as the Price floor.

When either  Price Ceiling or Floor is said to be nonbinding, it means that it does not affect the market/ equilibrium price of the good or service.

Binding Ceilings or Floors affect the market/ equilibrium price.

Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.  BINDING PRICE CEILING.

The Fast-food restaurants cannot pay above a certain amount which makes this a Price Ceiling. It is binding because the Market wants to pay higher wages to hire more people but cannot therefore the price ceiling is having an effect on the equilibrium price.

The government prohibits fast-food restaurants from selling hamburgers for more that $5 each. BINDING PRICE CEILING.

Fast-food restaurants are not allowed to sell above the set price of $5 which makes this a price ceiling. It is Binding because the equilibrium price is $7 which means that fast-food restaurants are forced to sell below the equilibrium price therefore this Price ceiling affects the equilibrium price.

Answer:

See Below..

Explanation:

1. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.

Price Ceiling and Binding

In the labor market, minimum wage laws are an example of a price floor while a cap on wages is an example of a price ceiling. Moreover, the impact of the minimum wage laws depends on the skill and experience of the worker. In this case, new regulations restrict fast-food restaurants from increasing wages and, thus, attracting more workers. This binding price ceiling causes a shortage of workers in this labor market.

2. The government prohibits fast-food restaurants from selling hamburgers for more that $5 each.

Price Floor and Binding

A price ceiling is a legal maximum on the price at which a good can be sold. Therefore, prohibiting fast-food restaurants from selling hamburgers for more than a particular price is an example of a price ceiling. A binding price ceiling is a price ceiling that is set below the equilibrium price. Because the equilibrium price is $7 each for hamburgers, a legal maximum price of $5 is a binding price ceiling. A binding price ceiling will ultimately cause a shortage, while a non-binding price ceiling has no effect on the equilibrium price and quantity.

Hope this helped you!

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4 before completing part 5.
Part 5: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data.
Insurance expired during May is $275.
Supplies on hand on May 31 are $715.
Depreciation of office equipment for May is $330.
Accrued receptionist salary on May 31 is $325.
Rent expired during May is $1,600.
Unearned fees on May 31 are $3,210.
If an amount box does not require an entry, leave it blank or enter "0".
Kelly Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended May 31, 20Y8
Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Office Equipment
Accum. Depreciation
Accounts Payable
Salaries Payable
Unearned Fees
Common Stock
Retained Earnings
Dividends
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Net income

Answers

Part of question attached

Answer and Explanation:

Please find answer and explanation attached

For Sheffield Corp., sales is $1660000 (8300 units), fixed expenses are $480000, and the contribution margin per unit is $80. What is the margin of safety in dollars

Answers

Answer:

$460,000

Explanation:

The computation of the margin of safety in dollars is shown below:-

Break even sales = fixed cost ÷ contribution per unit

= $480,000 ÷ $80

= 6,000 units

The Margin of safety in dollars = Total sales - Break even sales

= 8,300 - 6,000

= 2,300

sale price = $1660000 ÷ 8,300

= $200 per unit

margin of safety in dollars = 2,300 × $200

= $460,000

Marigold Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $192000 loss in the year of disposal. The loss on disposal of the segment was $99000. If the tax rate is 30%, and income before income taxes was $1630000.

a. the income tax expense on the income before discontinued operations is $378300.
b. the income from continuing operations is $1141000.
c. net income is $1339000.
d. the losses from discontinued operations are reported net of income taxes at $291000.

Answers

Answer:

The correct option is b. The income from continuing operations is $1141000.

Explanation:

Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:

Income from continuing operations=[$1,630,000-(30%*$1,630,000)]

Income from continuing operations=$1,630,000-$489,000

Income from continuing operations=$1,141,000

You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds_____.
You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay_____interest rates because of differences in the bonds.
You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds_____.
You would expect a bond issued by New York State to pay_____interest rate as compared to a bond issued by the federal government.

Answers

Answer:

You would expect a bond of the U.S. government and a bond of an Eastern European government to pay different interest rates because of differences in the bonds Credit Risk.

The United States has the safest securities in the World and so pay different rates from other countries to reflect this especially with an Eastern European Government that is not as trusted.

You would expect a bond that pays the principal in year 2040 and a bond that pays the principal in year 2020 to pay higher interest rates because of differences in the bonds.

Bond with longer maturity terms are riskier as they will be exposed to more inflation and interest rate risk.

You would expect a bond from a software company you run in your garage and a bond from Coca-Cola to pay different interest rates because of differences in the bonds Credit Risk.

Coca-Cola is a big company with many assets that back up any leverage it has and so they will have a lower risk than a person with a small business in a garage that might be unable to keep up with payments and default.

You would expect a bond issued by New York State to pay higher interest rate as compared to a bond issued by the federal government.

The Federal Government will be less riskier than New York when it comes to repaying debt because if push comes to shove they can simply print more dollars. They also have higher revenue streams than New York State which means that New York is riskier and will therefore pay a higher interest rate to compensate.

Suppose that per-unit costs for Alpha-Zeta Co. are $25 when they are producing 50,000 units. Now suppose that the firm increases production to 50,100 units and total costs are $2,000,000 at that level of production. Question: What is occurring as the firm increases production from 50,000 to 50,100 units?

Answers

Answer:

Diseconomies of scale due to the fact that per unit cost increased from $25 to $39.92

Explanation:

Economies is scale is when a larger production is a product leads to reduced cost of production.

For example if production of 1,000 units of a good costs $20 per unit, but production of 1,500 units goes for $17. The cost of production per unit reduces. So there is economies of scale.

In the given scenario production of 5,000 units is at $25 per unit.

While at 5,100 units it is (2,000,000 ÷ 50,100) = $39.92

So this is a diseconomies of scale.

True/ false. Initiative means acting only when asked to.

Answers

False. It involves the ability to take charge of things or starting/doing things independently on ones own.
false, initiative means taking an opportunity before anyone. so basically without being asked to.

Much has been written about how to identify and interpret signs that indicate that a new organizational form is needed. Grinnell and Apple have identified five signs in addition to those previously described in Section 3.625:Management is satisfied with its technical skills, but projects are not meeting time, cost, and other project requirements.There is a high commitment to getting project work done, but great fluctuation in how well performance specifications are met.Highly talented specialists involved in the project feel exploited and misused.Particular technical groups or individuals constantly blame each other for failure to meet specifications or delivery dates.Projects are on time and to specification, but groups and individuals aren’t satisfied with the achievement. Grinnell and Apple state that there is a good chance that a matrix structure will eliminate or alleviate these problems. Do you agree or disagree? Does your answer depend on the type of project? Give examples or counterexamples to defend your answers.

Answers

Explanation:

I agree that the matrix structure will alleviate these problems encountered.

The matrix structure is a model characterized mainly by its flexibility. The organizational structure of the matrix structure is organized in work groups according to the project being carried out in the company, making the work functions more defined and dynamic, being able to change whenever there are new projects in view.

This structure helps companies to create greater autonomy in carrying out work, increasing coordination and satisfying specialization, which generates greater motivation in employees, increasing participation in the decision-making process, generating more innovation and productivity and the speed with which employees projects are finalized.

What do successful entrepreneurs have in common?

Answers

Answer:

market trends change constantly, funding fall through, business partners flake, and ideas may go wrong

Answer:Here are things that all successful entrepreneurs have in common:

Subject Matter Expertise. A Growth Mindset. Intense Discipline. Persistence. Passion. Curiosity. Self-Motivated. Risk Takers.

hope this help!

A commodity’s demand causes its price to go up.
True
False

Answers

Answer:

the answer is false

Explanation:

Headland Mining Company purchased land on February 1, 2020, at a cost of $1,169,500. It estimated that a total of 52,800 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $96,300. It believes it will be able to sell the property afterwards for $107,000. It incurred developmental costs of $214,000 before it was able to do any mining. In 2020, resources removed totaled 26,400 tons. The company sold 19,360 tons. Compute the following information for 2020.
A) Per unit mineral cost.
B) Total material cost of December 31, 2020, inventory.
C) Total material cost in cost of goods sold at December 31, 2020.

Answers

Answer:

1. $26 per unit

2. $183,040

3. $503,360

Explanation:

1. Computation of per unit mineral cost

Per unit mineral cost=(1,169,500+96,300+214,000-107,000)/52,800

Per unit mineral cost=1,372,800/52,800

Per unit mineral cost=$26 per unit

Therefore the Per unit mineral cost will be $26 per unit

2. Computation of Total materials cost

Total materials cost= (26,400 tons-19,360 tons)*26

Total materials cost=7,040*26

Total materials cost=$183,040

Therefore the Total materials cost will be $183,040

3. Calculation for the Total materials cost in Cost of goods sold

Total materials cost in Cost of goods sold= (19,360*26)

Total materials cost in Cost of goods sold =$503,360

Therefore the Total materials cost in Cost of goods sold will be $503,360

Pix Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $12. The total costs to be assigned are $533,760, prepare the cost section of the production cost report for Pix Company using the FIFO approach.

Answers

Answer:

Summary of costs to be accounted for

Costs to be accounted for:            Materials         Conversion     Total

Beginning WIP                                   0                          0                  0

Costs incurred in the period         $142,800          $390,960     $533,760

Total costs to be accounted for   $142,800          $390,960     $533,760

 

Calculation of cost per equivalent unit

                                                       Materials         Conversion     Total

Total costs to be accounted for   $142,800          $390,960     $533,760

Total equivalent units                      35,700              32,580                        

Cost per equivalent unit                   $4                     $12              $16

Cost allocation

                                                       Materials         Conversion     Total

Units finished and transferred      $122,000        $366,000      $488,000

Ending WIP                                     $20,800          $24,960         $45,760  

Total costs to be accounted for    $142,800        $390,960      $533,760

Explanation:

beginning WIP 0 units

units started and completed 30,500

ending WIP 5,200

100% complete for materials

40% complete for conversion costs (2,080 EU)

total EU:

materials 35,700

conversion 32,580

total costs:

materials 35,700 x $4 = $142,800

conversion 32,580 x $12 = $390,960

total = $533,760

for countries the term specialization refers to

Answers

Answer:

we need more info

Explanation:

there's only those words nothing else

Specialization. Refers to the people, companies or countries focusing on providing a single good or service. This is so they can increase their efficiency and profit. Productivity. The amount of goods and services produced by a worker or business in a given time period. Hope this helps you out!! Please mark me brainliest!! Thank you!! :))

During job interviews, potential employers often ask candidates to describe a time where they have demonstrated their initiative and/or results driven skills. This week, you’ll have a chance to practice.

In paragraph 1, describe a time at work, home, or school where there was a problem and you took the initiative to solve that problem and to seek results on your own.

In paragraph 2, explain how the process went and describe the solution that you developed.

Answers

Answer:

During a pandemic everyone and everything is crazy and it hasn't gone very for me at work or at home. I guess that's why they say it's best for you stay home and quaretine for days because of a test that came back positive.

Explanation:

Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $116,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 15% of accounts receivable.
Required:
1. Record the adjusting entry for uncollectible accounts on December 31, 2021.
2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported in the balance sheet.
3. Calculate the net realizable value of accounts receivable.

Answers

Answer:

Bad Debt expense = Allowance for uncollectible debit + (Estimated uncollectibles)

= 1,900 + (15% * 116,000)

= $‭19,300‬

1.

Dec. 31 DR Bad debt expenses                                  $19,300    

                   CR Allowance for Uncollectable                            $19,300

2. Balance Sheet;

= 116,000 * 15%

= $‭17,400‬

Income Statement;

= $19,300

3. Net realizable value

= Accounts receivable - Estimated uncollectibles

= 116,000 - 17,400

= $‭98,600‬

The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. The final price includes the original price paid plus an expected capital gain. The actions of the marginal investor determine the equilibrium stock price. Market equilibrium occurs when the stock's price is -Select-less thanequal togreater thanCorrect 1 of Item 1 its intrinsic value. If the stock market is reasonably efficient, differences between the stock price and intrinsic value should not be very large and they should not persist for very long. When investing in common stocks, an investor's goal is to purchase stocks that are undervalued (the price is -Select-abovebelowequivalent toCorrect 2 of Item 1 the stock's intrinsic value) and avoid stocks that are overvalued.
The value of a stock today can be calculated as the present value of -Select-a finitean infiniteCorrect 3 of Item 1 stream of dividends:
This is the generalized stock valuation model. We will now look at 3 different situations where we can adapt this generalized model to each of these situations to determine a stock's intrinsic value:
1. Constant Growth Stocks;
2. Zero Growth Stocks;
3. Nonconstant Growth Stocks.
Constant Growth Stocks:
For many companies it is reasonable to predict that dividends will grow at a constant rate, so we can rewrite the generalized model as follows:
This is known as the constant growth model or Gordon model, named after Myron J. Gordon who developed and popularized it. There are several conditions that must exist before this equation can be used. First, the required rate of return, rs, must be greater than the long-run growth rate, g. Second, the constant growth model is not appropriate unless a company's growth rate is expected to remain constant in the future. This condition almost never holds for -Select-maturestart-upCorrect 4 of Item 1 firms, but it does exist for many -Select-maturestart-upCorrect 5 of Item 1 companies.
Which of the following assumptions would cause the constant growth stock valuation model to be invalid?
The growth rate is zero.
The growth rate is negative.
The required rate of return is greater than the growth rate.
The required rate of return is more than 50%.
None of the above assumptions would invalidate the model.
-Select-Statement aStatement bStatement cStatement dStatement eCorrect 6 of Item 1
Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.60. It expects to grow at a constant rate of 2% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Zero Growth Stocks:
The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is:
Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual preferred stock that entitles its owners to regular, fixed dividend payments in perpetuity. The valuation equation is simply the current dividend divided by the required rate of return.
Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $2.00 at the end of each year. If investors require an 10% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share
Nonconstant Growth Stocks:
For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where they experience different growth rates during different parts of the cycle. For valuing these firms, the generalized valuation and the constant growth equations are combined to arrive at the nonconstant growth valuation equation:
Basically, this equation calculates the present value of dividends received during the nonconstant growth period and the present value of the stock's horizon value, which is the value at the horizon date of all dividends expected thereafter.
Quantitative Problem 3: Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.15 per share at the end of 2013. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2013)? Round your answer to the nearest cent. Do not round intermediate calculations.
$ per share

Answers

Full question attached

Answer and Explanation:

Find attached

Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit 7 Macy returns 125 units because they did not fit the customer 's needs (invoice amount: $1,750). Allied restores 8 Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends cash per unit (for a total cost of $20,000) terms 2/10, n/60. The goods cost Allied $15,000 the units, which cost $1,250, to its inventory. Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage allowances, and any cash discount. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, Exercise 5-4 Recording sales, sales returns, and sales allowances LO P2
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000).
Note: Enter debits before credits. Date General Journal Debit Credit May 03

Answers

Answer:

May 3 No Journal Entry

May 5

Dr Merchandise Inventory 21,000

Cr Accounts Payable 21,000

May 7

Dr Accounts Payable 1,750

Cr Merchandise Inventory 1,750

May 8

Dr Accounts Payable 300

Cr Merchandise Inventory 800

May 15

Dr Accounts Payable 18,950

Cr Merchandise Inventory 379

Cr Cash 18,571

Explanation:

Preparation of Journal entries

May 3 No Journal Entry

May 5

Dr Merchandise Inventory 21,000

(1,500 * $14 per unit )

Cr Accounts Payable 21,000

(To record the purchase of inventory)

May 7

Dr Accounts Payable 1,750

Cr Merchandise Inventory 1,750

(To record the purchase return)

May 8

Dr Accounts Payable 300

Cr Merchandise Inventory 800

(To record the allowance to Macy)

May 15

Dr Accounts Payable 18,950

($21,000-$1,750-$300)

Cr Merchandise Inventory 379

($21,000-$1,750-$300)*2%

Cr Cash 18,571

($21,000-$1,750-$300)*98%

(To record the payment on account)

Brews 4 U is a local chain of coffee shops. Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patronizing the stores. Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis.

Average monthly customer-visits 1,462
Average monthly total costs $4,629
Regression results: Intercept $1,496
b coefficient $2.08
R2 0.86814

Required:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
b. How is the letter y in the regression equation best described?
c. How is the letter x in the regression equation best described?
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
e. What is the percent of the total variance that can be explained by the regression equation?

Answers

Answer:

Explanation:

a. In a regression equation expressed as y= a + bx, how is the letter b best described?

Here, b is the slope and best described as the estimate of the cost when there's a visit of an additional customer.

b. How is the letter y in the regression equation best described?

The letter y is the observed store cost for that particular month.

c. How is the letter x in the regression equation best described?

The letter x is the observed customer visit for that particular month.

d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?

The estimated cost for 370 customer visit will be:

Y = a + bx

where,

a =$1496

b = $2.08

x = 370 customer visit

Y = $1496 + ($2.08 × 370 customer visit)

= $1496 + $769.6

= $2265.6

e. What is the percent of the total variance that can be explained by the regression equation?

The percent of total variance which the regression equation explain will be:

R2 = 0.86814 or 86.814%

Categories of expenditures
Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction C I G X M
Eric's employer upgrades all of its computer systems using U.S.-made parts.
Ginny gets a new refrigerator made in the United States.
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Eric buys a bottle of Italian wine.

Answers

Answer:

Categories of expenditures

1. I

Eric's employer upgrades all of its computer systems using U.S.-made parts.

2. C

Ginny gets a new refrigerator made in the United States.

3. X

Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.

4. G

The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.

5. M

Eric buys a bottle of Italian wine.

Explanation:

The US Gross Domestic Product (GDP) can be measured using the expenditure approach: Y = C + I + G + (X – M).  This expenditure approach calculates GDP by evaluating the sum of all final goods and services purchased in the US economy.  The components of the US GDP identified as “Y” in equation form include Consumption (C), Investment (I), Government Spending (G), and Net Exports (X – M) with X as exports and M as imports.

Eaton Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 5,000 nubby tires and 10,000 smooth tires each year and incurs $172,000 of overhead costs. The following information is available:
Activity Total Cost Cost Driver
Materials handling $60,000 Number of requisitions
Machine setups 55,000 Number of setups
Quality inspections 57,000 Number of inspections
For the nubby tires, the company has 400 requisitions, 200 setups, and 200 inspections. The smooth tires require 600 requisitions, 300 setups, and 400 inspections.
Determine the overhead rate for each activity.

Answers

Answer:

Materials handling= $60 per requisition

Machine setups= $110 per setup

Quality inspections= $95 per inspection

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Materials handling= 60,000/1,000= $60 per requisition

Machine setups= 55,000/500= $110 per setup

Quality inspections= 57,000/600= $95 per inspection

Which staff member usually does the work of both a front desk clerk and an accounting clerk?
A. Controller
B. Credit manager
C. Accounts receivable clerk
D. Night auditor

Answers

D for sure is the correct answer

"16. An investment promises to pay $6,000 at the end of each year for the next five years and $4,000 at the end of each year for years 6 through 10. a. If you require a 12 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?"

Answers

Answer:

$33,387.70

Explanation:

A summary of the cash flows for this investment  is :

Year 1        $6,000

Year 2        $6,000

Year 3        $6,000

Year 4        $6,000

Year 5        $6,000

Year 6        $4,000

Year 7        $4,000

Year 8        $4,000

Year 9        $4,000

Year 10       $4,000

So, clear these are uneven cash flows thus use your CFj function on your financial calculator to find the Net Present Value at the rate of 12% as below:

CFj        $6,000

CFj       $6,000

CFj        $6,000

CFj       $6,000

CFj       $6,000

CFj        $4,000

CFj       $4,000

CFj        $4,000

CFj        $4,000

CFj       $4,000

I/YR = 12 %

SHIFT NPV = $33,387.70

Thus, the maximum amount you would pay for this investment is  $33,387.70.

Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit:
Materials $ 36.00
Labor 14.00
Variable overhead 4.00
Fixed overhead ($1,800,000 per year; 100,000 units per year) 18.00
Total $ 72.00
Simpson Company has approached Andreasen with an offer to buy 7,500 thermostats at a price of $60 each. The regular price is $100. Andreasen has the capacity to produce the 7,500 additional units without affecting its current production of 100,000 units. Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2 per unit material cost. The labor cost of affixing the label will be the same as for the current models. The Simpson order will also require a one-time rental of packaging equipment for $20,000.
Required:
a. Prepare a schedule to show the impact of filling the Simpson order on Andreasen’s profits for the year. (Enter your answers in thousands (i.e., 5,400,000 should be entered as 5,400). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)
Status quo 100,000 units Alternative 107,500 units Difference Higher or lower

Sales Revenue ? ? ? ?
Less: variable cost ? ? ? ?
Materials ? ? ? ?
Labor ? ? ? ?
Variable Overhead ? ? ? ?
Total variable cost ? ? ? ?
Contribution margin ? ? ? ?
Less; fixed costs ? ? ? ?
Operating profit or loss ? ? ? ?
b. Do you agree with the decision to accept the special order. Yes or no?
c. Considering only profit, determine the minimum quantity of thermostats in the special order that would make it profitable, assuming capacity is available.... Quanitity of Themostats #___?____ units

Answers

Answer:

Andreasen Corporation

Special Order by Simpson Company:

a.                                Status quo        Alternative        

                              100,000 units   107,500 units      Total        Difference

                                ($'000)            ($'000)           ($'000)        ($'000)

Sales Revenue      $10,000              $450           $10,450      $450 Higher

Total Variable cost   5,400                420               5,820        420 Higher

Contribution           $4,600                $30             $4,630          30 Higher

Fixed costs                1,800                  20                1,820          20 Higher

Operating profit     $2,800                $10              $2,810           10 Higher

b. No.

d. Contribution per unit = $4 ($30,000/7,500)

Fixed cost = $20,000

Fixed cost Plus Profit = $30,000

Minimum quantity to make it profitable = $30,000/$4 = 7,500 thermostats

However, this profit level is far below the normal production profit of 28% on sales revenue.

Explanation:

a) Data and Calculations:

Materials $ 36.00

Labor 14.00

Variable overhead 4.00

Total variable cost = $54

Fixed overhead ($1,800,000 per year; 100,000 units per year) 18.00

Total $ 72.00

Selling price = $100

Special order = 7,500 thermostats

Price of special order = $60

Relevant costs of special order:

Materials               $ 36.00

Labor                         14.00

Variable overhead     4.00

Additional material = $2

Unit variable cost = $56

Total variable cost =   $420,000

Packaging equipment    20,000

Total relevant cost =  $440,000

Sales Revenue =       $450,000

Profit from special order = $10,000

1. As a young child, Karina had a passion for animals and environmental issues. After she graduated from college, Karina landed a job in an organization whose mission is to create public awareness about endangered animals and other environmental issues. Karina’s employer depends largely on grants and donations to fund business activities.

Answers

Answer: Non-profit corporation

Explanation:

The question seeks to find out what kind of company Karina works for. The answer would be a Non-profit Corporation. Non-profit Organizations are usually involved in humanitarian and altruistic pursuits such animal rights and environmental protection.

Non-profit usually rely on grants and donations in order to carry out their operations and they get usually these from wealthy individuals and companies as part of their Corporate Social Responsibility.

Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such as costumes and props. Its direct labor includes each film’s actors, directors, and extras. The company’s overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars.At the beginning of the year, Yancey made the following estimates:Direct labor-dollars to support all productions $ 8,260,000Fixed overhead cost $ 4,956,000Variable overhead cost per direct labor-dollar $ 0.17Required:1. Compute the predetermined overhead rate. (I found the answer: .77 per DL$)2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:Direct materials $ 1,386,000Direct labor cost $ 2,478,000Compute the total job cost for this particular film.Direct Materials: $1,386,000Direct Labor: $2,478,000

Answers

Answer and Explanation:

The computation is shown below:

Predetermined overhead rate is

= Variable overhead cost per direct labor hours + Fixed overhead cost ÷ Direct labor-dollars

= $0.17 + $4,956,000 ÷ 8,260,000

= $0.17 + $0.6

= $0.77

Now the total cost is

= Direct material cost + direct labor cost + manufacturing cost

= $1,386,000 + $2,478,000 + ($2,478,000 × $0.77)

= $5,772,060

Selected accounts from the ledger of McDaniel Corporation appear below. Indicate the nature of each account. Type Of Account

1. Supplies select a type of account
2. Notes Payable select a type of account
3. Service Revenue select a type of account
4. Dividends select a type of account
5. Accounts Payable select a type of account
6. Salaries and Wages Expense select a type of account
7. Common Stock select a type of account
8. Accounts Receivable select a type of account
9. Equipment select a type of account
10. Notes Receivable select a type of account

Answers

Answer:

1. Supplies - ASSETS

Supplies are assets and are debited when they increase.

2. Notes Payable - LIABILITIES.

Current Liabilities owed to creditors.

3. Service Revenue. REVENUE

Revenue that will go to the income statement.  

4. Dividends. EQUITY.

These are payments to Shareholders and so are Equity.

5. Accounts Payable. LIABILITY.

These are current liabilities and increase by credit.

6. Salaries and Wages Expense. EXPENSE.

These are expenses that will go to the Income Statement

7. Common Stock. EQUITY.

Common Stock is equity as it represents ownership in the company.

8. Accounts Receivable. ASSET.  

Accounts Receivables are current assets and are debited when they increase.

9. Equipment. ASSET.

Equipment are fixed assets and are debited when they increase.

10. Notes Receivable. ASSETS.

Like Receivables these are current assets and are debited when they increase.

A comparative balance sheet for Sarasota Corporation is presented as follows.
December 31
Assets 2020 2019
Cash $ 72,680 $ 22,000
Accounts receivable 84,360 68,680
Inventory 182,360 191,680
Land 73,360 112,680
Equipment 262,360 202,680
Accumulated Depreciation-Equipment
(71,360 ) (44,680 )
Total $603,760 $553,040
Liabilities and Stockholders' Equity
Accounts payable $ 36,360 $ 49,680
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 203,400 139,360
Total $603,760 $553,040
Additional information:
1. Net income for 2020 was $129,720. No gains or losses were recorded in 2020.
2. Cash dividends of $65,680 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Prepare a statement of cash flows for 2020 for Sarasota Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Determine Sarasota Corporation’s current cash debt coverage, cash debt coverage, and free cash flow.

Answers

Answer:

Sarasota Corporation

1. Statement of Cash Flows for the year ended December 31, 2020:

Operating Activities:

Net Income                          $129,720

Non-cash adjustment:

Depreciation                           26,680

Cash from operating         $ 156,400

Changes in working capital:

Accounts Receivable             (15,680)

Inventory                                  9,320

Accounts Payable                 (13,320)

Net cash from operating activities       $136,720

Investing Activities:

Land                                      39,320

Equipment                           (59,680)

Net cash from investing activities        $(20,360)

Financing Activities:

Cash dividends                                     $(65,680)

Net cash inflows                                    $50,680

2. Sarasota Corporation's:

a) Current Cash Debt Coverage = Cash from operating activities/Current liabilities

= $136,720/$36,360

= 3.76

b) Cash Debt Coverage = Cash from operating activities/Total liabilities

= $136,720/$186,360

= 0.73

c) Free Cash Flow = Cash from operating activities minus Capital expenditure

= $136,720 - 59,680

= $77,040

Explanation:

a) Data and Calculations:

Sarasota Corporation

Comparative Balance Sheets

As of December 31 2020 and 2019:

Assets                                  2020              2019           Increase     Decrease

Cash                               $ 72,680          $ 22,000        $50,680

Accounts receivable         84,360              68,680          15,680  

Inventory                          182,360             191,680                            $9,320

Land                                   73,360             112,680                            39,320

Equipment                      262,360           202,680         59,680

Accumulated Depreciation-Equipment

                                         (71,360)            (44,680)       26,680

Total                             $603,760         $553,040

Liabilities and Stockholders' Equity

Accounts payable        $ 36,360           $ 49,680                           13,320

Bonds payable               150,000           200,000                          50,000      

Common stock ($1 par) 214,000            164,000          50,000

Retained earnings        203,400            139,360

Total                            $603,760         $553,040

b) The decrease in bonds is not a cash flow.  The increase in Common Stock is not a cash flow.  The two are exchanges.  In calculating the free cash flow, the cash proceeds from sale of land were not taken into consideration because the sale was a one-off transaction and not part of the operating activities of Sarasota Corporation.

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