Answer:
1. Accounts receivable A/c Dr $9,700
To Service revenue $9,700
(Being service provided is recorded)
2. Cash A/c Dr $9,506
Sales Discount A/c Dr $194 ($9,700 × 2%)
To Accounts receivable A/c $9,700
(Being cash received recorded and the remaining balance is reported to the cash account in the debit side)
Explanation:
The journal entries are shown below
On March 12
Accounts receivable A/c Dr $9,700
To Service revenue $9,700
(Being service provided is recorded)
On March 20
Cash A/c Dr $9,506
Sales Discount A/c Dr $194 ($9,700 × 2%)
To Accounts receivable A/c $9,700
(Being cash received recorded and the remaining balance is reported to the cash account in the debit side)
Consider the following: Cash in Bank - checking account of $13,500, Cash on hand of $500, Post-dated checks received totaling $3,500, and Certificates of deposit totaling $124,000.
How much should be reported as cash in the statement of financial position?
a. $ 13,500.b. $ 14,000.c. $ 17,500.d. $131,500.
Answer:
b. $ 14,000
Explanation:
For closing balance of cash in the statement of financial position, only cash received and on hand is recorded. Post dated checks probably have not been presented to the bank yet and thus would not be included. Certificates of deposit correspond to savings account and thus will not be part of the checking or hard cash account. The only amounts to be recorded on balance sheet are,
Cash = 13,500 + 500 = $14,000
Hope that helps.
Answer:
=b. $ 14,000.
Explanation:
Cash to reported in the statement of Financial Position= Checking account balance+ Cash on hand
= $13,500+$500
=$14,000
Post-dated checks received is not considered as cash because cash has not been received. Cash is expected in the future when the checks are presented for payment and it is hourned.
Certificates of deposit is a tenured deposit or fund which cannot be withdrawn on demand without a notice or expiration of the period in the agreement.
Checking account balance can be converted to cash immediately.
The Megabux National Bank currently has deposits of $200 million. If the Fed establishes a reserve requirement of 12 percent, Megabux National must hold reserves of _______ against its deposits.A. $12 million B. $24 million C. $176 million D. $200 million
Answer:
Option (B) is correct.
Explanation:
Given that,
Megabux National Bank currently has deposits = $200 million
Fed establishes a reserve requirement = 12 percent
Therefore,
Reserves must be hold by the Megabux national bank against its deposits:
= Amount of Deposits × Required reserve ratio
= $200 million × 12 percent
= $200 million × 0.12
= $24 million
Sully Company provided the following information for last month. Production in units 3,000 Direct materials cost $7,000 Direct labor cost $10,000 Overhead cost $9,600 Sales commission per unit sold $4 Price per unit sold $29 Fixed selling and administrative expense $7,000 There were no beginning and ending inventories. What is gross margin for Sully Company last month? a.$54,000 b.$47,400 c.$32,400 d.$60,400 e.$64,600
Answer:
d.$60,400
Explanation:
The computation of the gross margin is shown below:
= Sales - Direct materials cost - Direct labor cost - Overhead cost
where,
Sales = 3,000 units × $29 = $87,000
And all the other items would remain the same
Now put these values to the above formula
So, the value would equal to
= $87,000 - $7,000 - $10,000 - $9,600
= $60,400
Sarbanes-Oxley Act (SOX) Section 404 requires an organization's executive officers to establish, maintain, review, and report on the effectiveness of the company's internal controls over financial reporting (ICFR). a. Trueb. False
Answer: A. True
Explanation:
Sarbanes-Oxley Act was passed by congress in order to safeguard the interest of investors from the fraudulent activities that are used in manipulation of the financial statements.
our firm experiences strong seasonal demand, based on financial quarters. You have calculated the following seasonal relatives (or "indices") for each quarter: First Financial Quarter: 0.5 Second Financial Quarter: 1.0 Third Financial Quarter: 1.25 Fourth Financial Quarter: 1.25 The marketing department has just forecasted that 10,000 units will be ordered in the next fiscal year. The operations manager wants you to tell her how many units will be ordered in the fourth quarter of next fiscal year. What is your answer
Answer: 3,125 UNITS
Explanation:
According to the question above, the seasonal relatives for each quarter for the current year financials has been calculated thus:
1st quarter 0.5
2nd quarter 1.0
3rd quarter 1.25
4th quarter 1.25
using the above relatives to calculate what the next fiscal year order will be:
Total relatives above = 4.0
for the 4th quarter for the next year order :
= 1.25/4.0 * forecasted qty to be ordered for the next fiscal year
=1.25/4.0 * 10,000
0.3125 * 10,000
=3,125 units will be ordered in the forth quarter of the next fiscal year.
The number of units that would be ordered in the next fiscal year would be 3125
The financial report
The first quarter = 0.5
The second quarter = 1.0
The third quarter = 1.25
The fourth quarter = 1.25
0.5+1+1.25+1.25 = 4
The relatives are 4
The solution for the 4th quarter[tex]\frac{4thQuarter}{TotalRelatives} \\\\= \frac{1.25}{4}[/tex]
= 0.3125
The number of the units in the fiscal year would be 0.3125*10000
= 3,125 units
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A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
a. appreciation of the U.S. dollar and depreciation of the foreign currency.
b. appreciation of the U.S. dollar and appreciation of the foreign currency.
c. depreciation of the U.S. dollar and depreciation of the foreign currency.
d. depreciation of the U.S. dollar and appreciation of the foreign currency.
Answer:
a. appreciation of the U.S. dollar and depreciation of the foreign currency.
Explanation:
When the supply of us dollars fall, demand for US dollars would be greeter than the supply, the value of the US dollar would rise.
I hope my answer helps you
Answer:
OwO its a?
Explanation:
Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
An increase in the number of potential entrants into the industry.
A decrease in the elasticity of demand for the cartel's product.
An increase in the number of substitutes for the product produced by the cartel.
A new method of pricing that makes it more difficult for each firm to monitor the prices that the other firms in the cartel are charging.
Answer:
A decrease in the elasticity of demand for the cartel's product.
Explanation:
The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.
Adverse effects on consumers include:
1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.
2) Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.
3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.
4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.
A decrease in the elasticity of demand for the cartel's product would make it easier to maintain an effective collusive agreement, as it reduces the incentive for firms to cheat by undercutting prices.
Explanation:To maintain an effective collusive agreement in a cartel, it would be easier if there was a decrease in the elasticity of demand for the cartel's product. This is because a less elastic demand means that a change in price will have a smaller effect on the quantity demanded, reducing the incentive for firms to undercut each other on price. On the contrary, both an increase in the number of potential entrants into the industry and an increase in the number of substitutes for the product produced by the cartel, as well as a new pricing method that hinders price monitoring, would all make it harder to maintain a collusive agreement.
A cartel attempts to act like a monopolist to maximize profits by setting higher prices and reducing output. However, individual firms within the cartel have an incentive to cheat by slightly undercutting the cartel price to increase their market share and profit. If one firm cheats, and the others follow, the result is often akin to the firms entering into cutthroat competition, which may reduce profits for all.
Which of the following is a problem that could likely be minimized throughgood deployment planning? [35a. Identify system supportability issues in planning and executing a defense acquisition program.]
a. Inadequate training
b. Interoperability needs
c. Insufficient modeling and simulation
d. Inadequate testing
Answer:
The correct answer is letter "A": Inadequate training.
Explanation:
The deployment plan describes the design, strategy, and implementation of the project to be implemented. The plan takes into consideration a support system, problem follow-up, and roles of the personnel involved during every single step of the project.
Inadequate training can be successfully taken cared of within the deployment plan. One of its steps includes clarifying what are the responsibilities of each person involved.
During December, Far West Services makes a $2,400 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. (Note: the sales tax amount is in addition to the credit sale amount.) Record sales and sales tax payable.
Final answer:
To record the sales and sales tax payable for the $2,400 credit sale, you would debit accounts receivable for $2,400 and credit sales for $2,400. Then, you would calculate the sales tax payable by multiplying the total credit sale amount by the combined state and local sales tax rate. Finally, you would debit sales tax payable for $204 and credit sales tax revenue for $204 to reflect the amount owed for sales tax.
Explanation:
To record the sales and sales tax payable for the $2,400 credit sale, you would debit accounts receivable for $2,400 and credit sales for $2,400. Then, you would calculate the sales tax payable by multiplying the total credit sale amount by the combined state and local sales tax rate:
Sales tax payable = Credit sale amount * (State tax rate + Local tax rate)
Plugging in the values:
Sales tax payable = $2,400 * (0.06 + 0.025) = $2,400 * 0.085 = $204
Finally, you would debit sales tax payable for $204 and credit sales tax revenue for $204 to reflect the amount owed for sales tax.
sle Co. owned a copy machine that cost $5,000 and had accumulated depreciation of $2,000. Isle exchanged the copy machine for a computer that cost $4,000. Isle's future cash flows are not expected to change significantly as a result of the exchange. What amount of gain or loss should Isle report and at what amount should it record the asset?
Answer:
In the income statement, there is no loss or gain and assets worth $3,000 is recorded in the balance sheet.
Explanation:
Exchange of non- monetary assets which is not expected to change the cash flows of the entity significantly lacks the commercial substance.
The accounting for exchange is grounded on the carrying amount of the assets given up, unless the boot is received so there is no gain recognized.
The asset named computer is recognized at the amount of carrying value of the copy machine amounts to $3,000.
Working Note:
Asset value = Cost of machine - Accumulated Depreciation
= $5,000 - $2,000
= $3,000
Where are shares of the reporting company's common stock issued in exchange for cash reported on a statement of cash flows?
Answer:
Please help me! https://brainly.com/question/14319457
Explanation:
Shares of the reporting company's common stock issued in exchange for cash are reported on the financing activities section of the statement of cash flows.
Explanation:The shares of the reporting company's common stock issued in exchange for cash are reported on the financing activities section of the statement of cash flows. This section shows the cash inflows and outflows related to the company's financing activities, such as issuing and repurchasing stock, taking on or repaying debt, and paying dividends.
For example, if a company issues new shares of common stock and receives cash in exchange, it would be reported as a cash inflow under the financing activities section. On the other hand, if the company repurchases its own shares and pays cash, it would be reported as a cash outflow.
"Other things equal, when the price of a good rises, the quantity supplied of the good alsorises, and when the price falls, the quantity supplied falls as well." This relationship betweenprice and quantity supplied
a.is referred to as the law of supply.
b.applies only to a few goods in the economy.
c.is represented by a downward-sloping supply curve.
d.All of the above are correct.
Answer:
the correct answer is a.is referred to as the law of supply.
A company claims that 20% of their mixed nuts are cashews, 30% are almonds, and the rest are peanuts and that they thoroughly mix millions of nuts and a machine shoots them into packages of 200. In other words, individual packages will vary in their nut distribution just due to random chance. To test their claim I bought a package of their mixed nuts. It contained 200 nuts. I counted 25 cashews, 50 almonds, and 125 peanuts.
In the tested package, the percentage distribution of cashews (12.5%), almonds (25%) and peanuts (62.5%) varied from the company's claims due to random distribution. However, a single package is a small sample size and may not accurately reflect the company's claimed distributions.
Explanation:The company represents the types of nuts in their mix as percentages, which implies that over a large number of mixed nut packages, approximately 20% will be cashews, 30% almonds, and the remaining 50% peanuts. In a single package, due to random distribution, these percentages could change.
In your package of 200 nuts, 12.5% were cashews (25 cashews), 25% were almonds (50 almonds), and 62.5% were peanuts (125 peanuts). The percentage of cashews and almonds are lower than the company's claim, while the percentage of peanuts is higher.
However, before making conclusions about the company's integrity, it would be wise to understand the concept of randomness and variation in statistics. Sample size matters, and a variation from expected results in a single packet does not necessarily indicate a lie or mistake.
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The average credit card debt for college seniors is $16,601 with a standard deviation of $4100. What is the probability that a sample of 35 seniors owes a mean of more than $18,000? Round answer to 4 decimal places.
Answer:
0.0218
Explanation:
Data provided in the question:
Average credit card debt, µ = $16,601
Standard deviation, σ = $4,100
Sample size, n = 35
To find : P ( X > 18000 )
Now,
P ( X > $18,000 ) = 1 - P ( X < $18,000 )
For Standardizing the value, we have
Z = [ X - µ ] ÷ [ σ ÷ √n ]
Z = [ $18,000 - $16,601 ] ÷ [ $4,100 ÷ √35 ]
or
Z = 2.02
Thus,
P ( [ X - µ ] ÷ [ σ ÷ √n ] > [ $18,000 - $16,601 ] ÷ [ 4100 ÷ √35 ]
or
P ( Z > 2.02 )
or
P ( X > 18000 ) = 1 - P ( Z < 2.02 )
[ from standard Z-value table P ( Z < 2.02 ) = 0.9782 ]
therefore,
P ( X > 18000 ) = 1 - 0.9782
or
P ( X > 18000 ) = 0.0218
Fulbright Corp. uses the periodic inventory system. During its first year of operation, Fulbright made the following purchases (listed in chronological order of acquisition): • 40 units at $100 • 70 units at $80 • 170 units at $60 Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. What is the ending inventory using the LIFO method?
Answer:
$1000
Explanation:
Under the LIFO method, the sales units was 270 units out of which 170 units at $60 is used, 70 units at $80 is used and the remaining 30 units is used at $100
The remaining units i.e 10 units is left which is an ending inventory at$100 i.e $1000
The ending inventory units would be
= Sales units - Available units
= 270 units - 260 units
= 10 units
Is the proportion of men who write a shopping list before going shopping less than the proportion of women who do so? Let p1 and p2 represent the population proportions of men and women, respectively, who use shopping lists. Suppose a random sample of 50 men and 50 women was asked if they use a shopping list when they have more than ten items to buy. Of the 50 men, 20 said yes and of the 50 women 30 said yes.
Answer:
The proportion of women that make the list is higher than the proportion of men.
Explanation:
Giving the following information:
Let p1 and p2 represent the population proportions of men and women, respectively, who use shopping lists. Suppose a random sample of 50 men and 50 women was asked if they use a shopping list when they have more than ten items to buy. Of the 50 men, 20 said yes and of the 50 women 30 said yes.
We need to calculate the proportions of each gender that said 'yes':
p1= 20/50= 0.4
p2= 30/50= 0.6
The proportion of women that make the list is higher than the proportion of men.
Outstanding Job Hours to Print Job Penalty for not completing job in 24 hoursJob A 6 -$120Job B 9 -$200Job C 12 -$360Job D 16 -$400Job E 2 -$50A print shop has contracted to print a number of jobs within 24 hours. Any jobs not completely printed within this time will result in a penalty, as shown in the table above. However too many jobs have been accepted, and not all can be printed. Which jobs should be printed in the next 24 hours?A) Job D, Job A, and Job EB) Job C and Job BC) Job D and Job AD) Job C, Job B, and Job E
Answer:
Option D is correct
Explanation:
The cumulative loss in penalty of this option is the highest compared to the rest which makes it logical.
The costs of a market activity paid for by an individual engaged in the market activity are ________ costs.a.Externalb.socialc.Internald.commone.free-rider
Answer: internal cost
Explanation:
Internal costs are costs of a market activity paid for by an individual engaged in the market activity.
External costs are costs of a market activity paid for by an individual not engaged in the market activity.
Social cost is the sum of internal and external costs.
Free rider is when an individual benefits from a public good but doesn't pay for it.
I hope my answer helps you.
Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside recorded the following data for its commercial bathtub production line during the month of March:
Standard DL hours per tub 5
Standard variable overhead rate per DL hour $ 6.00
Standard variable overhead cost per unit $ 30.00
Actual variable overhead costs $ 16,400
Actual DL hours 2,050
Actual variable overhead cost per machine hour $ 8.00
Actual tubs produced 1,500
1. What is the variable manufacturing overhead efficiency variance in March?
Answer:
$32,700 Favorable
Explanation:
Variable Manufacturing overhead efficiency variance can be computed as follows,
VMOH Variance = Standard Overhead rate * (Actual Hours - Standard Hours)
VMOH Variance = 6.0 * (2050 - (1500 * 5))
Variance = $32,700 Favorable
This a favorable variance as budgeted per tub direct labor hours are more than they actually were at production level of 1500 tubs.
Hope that helps.
Before purchasing a used car, Jim Myers checked www.kbb to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $15,100. She put $2,700 down and financed the rest with a 36-month, 7.5% loan.What is her monthly car payment by formula?
To calculate the monthly car payment, use the formula: Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1+Monthly interest rate)^(-Number of months)). Using this formula, Jim Myers' monthly car payment is approximately $372.78.
Explanation:To calculate the monthly car payment, we can use the formula:
Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1+Monthly interest rate)^(-Number of months))
In this case, Jim Myers financed $15,100 with a 36-month, 7.5% loan. Using the formula, we can calculate the monthly car payment as follows:
Loan amount = $15,100 - $2,700 (Down payment) = $12,400
Monthly interest rate = 7.5% / 12 = 0.00625
Number of months = 36
Substituting these values into the formula, we get:
Monthly payment = ($12,400 * 0.00625) / (1 - (1+0.00625)^(-36))
By evaluating this expression, we find that her monthly car payment is approximately $372.78.
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The correct monthly car payment for Jim Myers is $405.37.
To calculate the monthly car payment, we can use the formula for an installment loan, which is given by:
[tex]\[ P = \frac{rPV}{1 - (1 + r)^{-n}} \][/tex]
First, we need to convert the annual interest rate to a monthly interest rate.
The annual interest rate is 7.5%, which we can express as a decimal by dividing by 100, giving us 0.075.
To find the monthly interest rate, we divide this by 12 (since there are 12 months in a year):
[tex]\[ r = \frac{0.075}{12} = 0.00625 \][/tex]
Next, we determine the amount financed, which is the purchase price minus the down payment:
[tex]\[ PV = \$15,100 - \$2,700 = \$12,400 \][/tex]
The total number of payments is the loan term in months:
n = 36
Now we can plug these values into the loan formula:
[tex]\[ P = \frac{0.00625 \times \$12,400}{1 - (1 + 0.00625)^{-36}} \][/tex]
[tex]\[ P = \frac{\$77.50}{1 - 0.7164} \][/tex]
[tex]\[ P \approx \$405.37 \][/tex]
Therefore, Jim Myers' monthly car payment is approximately $405.37.
Blossom Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 167,000 miles. Taxi 10 cost $33,600 and is expected to have a salvage value of $200. Taxi 10 was driven 32,000 miles in 2021 and 32,700 miles in 2022. Determine the depreciation cost. (Round answer to 2 decimal places, e.g. 1.25.) Depreciable cost $enter the depreciation per unit rounded to two decimal places in dollars per unit eTextbook and Media Compute the depreciation for each year. 2021 2022 Depreciation expense $enter the depreciation for 2021 rounded to 0 decimal places in dollars $enter the depreciation for 2022 rounded to 0 decimal places in dollars eTextbook and Media
Answer:
$0.20 per miles, $6,400, $6,540
Explanation:
The calculation of the depreciation per unit and its expense method is presented below:
= (Original cost - residual value) ÷ (estimate driven miles)
= ($33,600 - $200) ÷ (167,000 miles)
= ($33,400) ÷ (167,000 miles)
= $0.20 per miles
Now for the 2021 year, it would be
= Miles driven in 2021 year × depreciation per miles
= 32,000 miles × $0.20
= $6,400
And, in 2022, it would be
= Miles driven in 2022 year × depreciation per miles
= 32,700 miles × $0.20
= $6,540
All of the following are considered input barriers to entry except:(A) control of a key raw material by a single firm.(B) the ability to obtain financing for capital projects at more favorable rates than potential competitors.(C) the fact that workers in a particular industry belong to a union.(D) a patent on a specialized type of capital that is needed to produce a particular product
Answer:
(C) the fact that workers in a particular industry belong to a union.
Explanation:
All other options are considered as possible entry barriers because they may put hindrance for an entrepreneur to enter the field of producers . The fact that workers of a particular industry belong to a union because role of union comes only when industry starts functioning . It can not play any role at the start of an industry.
In order for "limit pricing" to be effective, the firm practicing such a strategy must be able to charge a price that is:________
a. greater than the potential entrant's ATC but lower than the firm's own ATC.
b. lower than the potential entrant's ATC but greater than the firm's own AVC.
c. lower than the potential entrant's ATC but greater than the firm's own ATC.
d. greater than the potential entrant's ATC but lower than the firm's own AVC.
In order for "limit pricing" to be effective, the firm practising such a strategy must be able to charge a price that is lower than the potential entrant's ATC but greater than the firm's own ATC.
Explanation:
A pricing strategy is a level where products are sold by a supplier at an expense that is cheap enough to make the market unprofitable for others. Monopolies use it in order to discourage market entry and in many cases it is illegal.
It is not able to sustain a monopolistic-ally profitable firm where P = MC and growth, with a long-run balance, generates an efficiency that approaches the minimum possible in an ATC business. Profit so long as potential customers can not enter the market.
What would operational testers use to determine whether a system meets operational performance parameters?
Answer:
Measures of Effectiveness
Explanation:
The Measures of Effectiveness (MOE) are measures specifically created to assess system operational environment, behaviour and capability as they relate to the achievement or attainment of the system's objectives, goals and tasks. MOE actually measures the probability that a system will perform as required and perform as expected.
FOr MOE to be effective as an operational tester, the following characteristics must be available; testable, complete, simple, quantitatively measurable and easily measurable.
Therefore in order to determine whether a system meets its operational performance parameters Measures of Effectiveness must be employed.
John loans George money and they sign a written agreement whereby George will repay John in monthly installments. Is this loan subject to the Truth-n-Lending Act? No, if John is not in the business of offering credit
Answer:
No.
Explanation:
No, if John is not in the business of offering credit.
The Truth in Lending Act is a primary federal law of United States enacted in 1968 designed to keep consumers informed of credit agreements. It is used to regulate and standardized the method of calculating the cost associated with borrowing and how they are disclosed.
Edit question Utah Light, Inc. has a takeover offer from Cal Corp. Utah Light is experiencing difficulty with earnings and its share price has dropped from $32 to $19. Cal Corp's offer is for $23 per share. Utah Light's board meets once and reaches a general consensus after thirty minutes that because of pending plans and developing assets, it should not accept the offer as the actual value of the company is at least $30 a share - in their estimation.
1. Must the board accept the offer?
2. If they reject it, have they exposed themselves to any liability to the shareholders? Why, or why not?
Answer:
1. They do not have to accept the offer 2. No, if there is clear opportunity to continue with the business, the board is not exposing shareholders to any loss.
Explanation:
The stock value of a company is a valuation given by the market with the available information. It is believed that company's management team has more accurate information about the company and if their own calculation says that the company valuation is about $23 (in this case $30) the shareholders should believe in the management team criteria. Could be thought that Utah Light's board destroyed the premium of $4 per share that Cal Corp was intended to pay. Instead, what the board did was to avoid the destruction of $7 per share. The stock valuation could change in time (it is not definitely), but if they accept the takeover offer, the destruction of value will be definitive.
What is a public franchise? A public franchise is
A. a firm that can supply the entire market at a lower average total cost than can two or more firms.
B. an entity through which the government directly provides certain services to consumers.
C. a firm that is the only seller of a good or service that does not have a close subsitute.
D. a firm designated by the government as the only legal provider of a good or service.
E. a firm that is the only buyer of a factor of production.
Answer:
D. a firm designated by the government as the only legal provider of a good or service.
Explanation:
Public franchise -
It is the type of firm , which is legally opened by the government , to provide certain goods and services, is referred to as public franchise.
These firm are opened in order to restrict the market , as , where other any other firm are not allowed to compete .
This method is adapted in order to regulate the market , which helps the consumers to buy certain products at lower price .
Last year, Sinclair Company’s single product had a selling price of $25 per unit, reported a profit of $20,000, had a contribution margin ratio of 40% and incurred variable costs totaling $180,000. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by $2.00 per unit. Ignore income taxes. How many units must be sold in the current year to earn the same profit as was earned last year?
Answer:
15,000 units
Explanation:
In this question we use the formula of break-even point in unit sales which is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
The selling price is $25 - $2 = $23
And, the variable expense per unit would be = $25 × 60% = $15
So, it would be $23 - $15 = $8
We know that
Operating profit = Sales - variable cost - fixed cost
$20,000 = $300,000 - $180,000 - fixed cost
So, the fixed cost would be
= $100,000
And, the sales would be
= Variable cost × 100 ÷ variable cost ratio
= $180,000 × 100 ÷ 60
= $300,000
And, the other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= ($100,000 + $20,000) ÷ ($8)
= ($120,000) ÷ ($8)
= 15,000 units
You are interested in purchasing a new car and have done some research. One of the many points you wish to consider is the resale value of the car after 5 years. You wish to estimate the resale value of the one that piques your interest with a 99% confidence interval. In your research, you obtain data on 17 recently resold 5-year-old sedans of the same model you wish to purchase. These 17 cars were resold at an average price of $12,500 with a standard deviation of $700. What is the 99% CI for the true mean resale value?
Answer:
The 99% confidence interval would be given by (12004.26;12995.74)
Explanation:
1) Previous concepts
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
[tex]\bar X=12500[/tex] represent the sample mean for the sample
[tex]\mu[/tex] population mean (variable of interest)
s=700 represent the sample standard deviation
n=17 represent the sample size
2) Confidence interval
The confidence interval for the mean is given by the following formula:
[tex]\bar X \pm t_{\alpha/2}\frac{s}{\sqrt{n}}[/tex] (1)
In order to calculate the critical value [tex]t_{\alpha/2}[/tex] we need to find first the degrees of freedom, given by:
[tex]df=n-1=17-1=16[/tex]
Since the Confidence is 0.99 or 99%, the value of [tex]\alpha=0.01[/tex] and [tex]\alpha/2 =0.005[/tex], and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-T.INV(0.005,16)".And we see that [tex]t_{\alpha/2}=2.92[/tex]
Now we have everything in order to replace into formula (1):
[tex]12500-2.92\frac{700}{\sqrt{17}}=12004.26[/tex]
[tex]12500+2.92\frac{700}{\sqrt{17}}=12995.74[/tex]
So on this case the 99% confidence interval would be given by (12004.26;12995.74)
On January 1, 2013, Goll Corp. issued 3,000 of its 10%, $1,000 bonds for $3,120,000. These bonds were to mature on January 1, 2023 but were callable at 101 any time after December 31, 2016. Interest was payable semiannually on July 1 and January 1. On July 1, 2018, Goll called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Goll's gain or loss in 2018 on this early extinguishment of debt was Group of answer choices $30,000 loss. $24,000 gain. $90,000 gain. $36,000 gain.
Answer:
$24,000 Gain
Explanation:
Given that,
Bonds issued = 3,000
Par value = $1,000
Value of issued bonds = $3,120,000
Goll's gain in 2018 on this early extinguishment of debt:
= Issue price of bonds - Premium amortized - Callable value
= $3,120,000 - [($3,120,000 - $3,000,000) × 11/20] - (3,000 × $1,000 × 1.01)
= $3,120,000 - $66,000 - $3,030,000
= $24,000 Gain