Question 12 (3.333333333 points)
3
In one study, small businesses starting out spent what percentage of sales on
marketing?
6
5 to 10%
8 to 15%
9
15 to 19%
25 to 32%
12

Answers

Answer 1

Answer:

The correct answer is 25 to 32%

Answer 2

Answer:

15-19%

Explanation:

Textbook, Chapter 30


Related Questions

3. (1 point) Suppose a firm faces potential demand from two customer bases, H and L, with high and low valuation of the firm’s product, respectively. If the product has network externalities and all type H customers are currently purchasing the product, then the price that can be charged to L consumers ________. a. increases with the number of H consumers b. decreases with the number of H consumers c. is independent of the number of H consumers d. cannot be determined because the price charged to H is not known

Answers

Answer: A. increases with the number of H consumers.

Explanation: If all type H customers are currently purchasing the product, it means that its customer base is large and significant enough and as such the firm would prefer to sell all of its product to H, and also do to the fact that there is only so much supply that a firm can provide. But, fewer quantities of goods would remain for L if more and more goods are sold to H. Due to this lower quantity supplied to the L customer base, it then means that the firm can set the price higher for L. This is because at a higher price, quantity demanded reduces (which is expected for L) and it can therefore maintain supply to H which has more customers.

Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sales Mix Unit Contribution Margin Lawnmowers 20 % $30 Weed-trimmers 50 % $21 Chainsaws 30 % $39 Yard Tools has fixed costs of $4,342,800. Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. Lawnmowers Enter a number of units units Weed-trimmers Enter a number of units units Chainsaws Enter a number of units units

Answers

Answer:

Total Break even sales = 154,000  units

Lawnmowers ($154,000 × 20%) = 30,800 Units

Weed-trimmers ($154,000 × 50%) =  77,000 units

Chainsaws ($154,000 × 30%) = 46,200 Units

Explanation:

As per the data given in the question,  the computation is shown below:

Weighted contribution margin = Contribution margin × Sales mix

= (0.2 × 30) + (0.5 × $21) + (0.3 × $39)

= $28.2

Now, Total break even sales = Fixed cost  ÷ Weighted contribution margin

= $4,342,800 ÷ $28.2

= 154,000  units

So classifications are as follows

Lawnmowers ($154,000 × 20%) = 30,800 Units

Weed-trimmers ($154,000 × 50%) =  77,000 units

Chainsaws ($154,000 × 30%) = 46,200 Units

We simply multiplied the total break even sales with each sales mix

A loan of $32,000 is to be repaid by the sinking fund method with annual payments. Interest on the loan is paid at a 6% annual effective rate of interest, and the sinking fund earns 4% annual effective interest. The total annual payments will be level at $3,300 until a final smaller annual payment suffices to pay off the loan. Find the amount of the final sinking fund deposit.

Answers

Answer:

The answer is $677.43

Explanation:

The file attached is a word document that explains the problem in details. Thank you and i hope it helps you

Oceanic Company has 15,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: 20Y1 $67,500 20Y2 22,500 20Y3 135,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

Answers

Final answer:

The dividends per share for the preferred and common stock for each year are as follows: Preferred stock: 20Y1 - $4.50, 20Y2 - $1.50, 20Y3 - $9.00. Common stock: 20Y1 - $1.35, 20Y2 - $0.45, 20Y3 - $2.70.

Explanation:

To determine the dividends per share for the preferred and common stock for each year, we first need to calculate the total dividends distributed for each year. The formula to calculate the dividends per share is: Dividends per share = Dividends distributed / Total number of shares.

For the preferred stock:

20Y1: Dividends per share = $67,500 / 15,000 = $4.5020Y2: Dividends per share = $22,500 / 15,000 = $1.5020Y3: Dividends per share = $135,000 / 15,000 = $9.00

For the common stock:

20Y1: Dividends per share = $67,500 / 50,000 = $1.3520Y2: Dividends per share = $22,500 / 50,000 = $0.4520Y3: Dividends per share = $135,000 / 50,000 = $2.70

The dividends per share for each year are as follows:

Preferred stock: 20Y1 - $4.50, 20Y2 - $1.50, 20Y3 - $9.00Common stock: 20Y1 - $1.35, 20Y2 - $0.45, 20Y3 - $2.70

1) You are indecisive about which stock to buy Microsoft, which is selling for $173 a share; or Apple, which is selling for $285 a share. Microsoft stock promises to pay annual dividends of $4.00, $5.00, and $5.50 over the next three years respectively, and you estimate it can be sold for $190 at the end of the third year. You expect Apple to pay a dividend of $5.50 the first year, $8.50, and $10.50 over the next two years, respectively. You also expect Apple’s stock to be trading at $330 in three years. Which stock would you buy if stocks from computer manufacturers typically yield 10%?

Answers

Answer:

I would buy the APPLE stock

Explanation:

Microsoft stock price = $173  

dividends earned = $4, $5 and $5.5

value after 3 years = $190

Apple stock price = $285

Dividends earned = $5.5, $8.5 and $10.5

value after 3 years = $330

Applying the dividend discount model

IVO = present value of dividend + present value of terminal price

for Microsoft

IVO = ( 4/1.1 + (5/(1.1/2)) + ( 5.5/(1.1/3)) + ( 190/(1.1/3))

      = $154.65  

for Apple

IVO = ( 5.5/1.1 + ( 8.5/( 1.1/2)) + (10.5/(1.1/3)) + ( 330/(1.1/3))

       = $267.8

Note: the IVO's are less than the current price of the stocks ( IVO = the intrinsic value of the shares ) but Microsoft shares are overpriced compared to apple

Answer:

If decided to purchase, Apple will yield better

Explanation:

we solve for the present value of the future cashflow discounted at 10%

we will then compare against the current market price and pick with the better NPV

Microsoft:

[tex]\left[\begin{array}{ccc}#&Cashflow&Discounted\\1&4&3.64\\2&5&4.13\\3&195.5&146.88\\TOTAL&&154.65\\\end{array}\right][/tex]

154.65 - 173 = -18.36

Apple:

[tex]\left[\begin{array}{ccc}#&$Cashflow&$Discounted\\1&5.5&5\\2&8.5&7.02\\3&340.5&255.82\\&TOTAL&267.84\\\end{array}\right][/tex]

267.84 - 285 = -17.16

Now, as both are negative we must decide if we accep to receive less than 10% in which case, we will purchase stock as their net present alue is higher than microsoft.

Analyzing Balance Sheet Accounts A review of the balance sheet of Dixon Company revealed the following changes in the account balances: Required: 1. Classify each change in the balance sheet account as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities, or a noncash investing and financing activity. a. Increase in retained earnings b. Increase in equipment c. Increase in interest receivable d. Decrease in bonds payable e. Increase in unearned rent revenue f. Decrease in prepaid insurance g. Decrease in long-term investment h. Increase in accounts payable 2. Indicate whether each of the changes in the balance sheet accounts produces an increase in cash, produces a decrease in cash, or is a noncash activity. a. Increase in retained earnings b. Increase in equipment c. Increase in interest receivable d. Decrease in bonds payable e. Increase in unearned rent revenue f. Decrease in prepaid insurance g. Decrease in long-term investment h. Increase in accounts payable

Answers

Answer:

Dixon Company Requirement 1: a. Increase in Retained Earnings b. Increase in Equipment c. Increase in interest receivable d. Decrease in Bonds Payable e. Increase in Unearned Rent Revenue f. Decrease in Prepaid Insurance g. Decrease in Long Term Investment h. Increase in Accounts Payable Non Cash Activity Investing Activity Operating Activity Financing Activity Operating Activity Operating Activity Financing Activity Operating Activity Requirement  2: a. Increase in Retained Earnings b. Increase in Equipment on Cash Activity Decrease in Cash

Explanation:

See attached image for the table

A firm commitment arrangement with an investment banker occurs when the: issue is solidly accepted in the market as evidenced by a large price increase. investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them. spread between the buying and selling price is less than one percent. investment banker sells as much of the security as the market can bear without a price decrease. syndicate is in place to handle the issue.

Answers

Answer:

A firm commitment arrangement with an investment banker occurs when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.

The correct option is B.

Explanation:

A firm commitment arrangement happens when an investment banker buys the securities for less than the offering price and accepts the risk of not being able to sell them.

However, the issuer receives a little less money than the offering price but he gets a specific amount for all the security being issued. The risk rests completely on the investment banker.

Therefore, the correct option is B.

Consider the assembly line of a laptop computer. The line consists of 12 stations and operates at a cycle time of 1.50 minutes/unit. Their most error-prone operation is step 1. There is no inventory between the stations, because this is a machine-paced line. Final inspection happens at station 12. What would be the information turnaround time for a defect made at station 1

Answers

Answer :

Information turnaround time = 16.50 minutes

Explanation :

As per the data given in the question,

Cycle time of whole line = 1.50 minutes/unit

which means 1 unit is made in 1.50 minutes. In the line of 12 stations 1st step is the most error prone.

Error made at step 1 means that unit must be processed by 11 other stations in order to be made and inspected at 12th station.

The information turnaround time = cycle time × number of stations after error is made

=1.50 × 11

= 16.50 minutes

The information turnaround time for a defect made at station 1 on an assembly line with a cycle time of 1.50 minutes/unit and final inspection at station 12 would be 16.5 minutes.

The information turnaround time for a defect made at station 1 on an assembly line producing laptop computers with the cycle time of 1.50 minutes/unit would be the time taken for the product to reach the final inspection stage at station 12. Since it's stated that this is a machine-paced line with no inventory between stations, we can calculate the turnaround time by multiplying the cycle time with the number of stations up to the inspection point. With 12 stations, including the station where the defect occurs and the final inspection station, the calculation would be:

Turnaround time = Cycle time x (Number of stations from the defective station to the inspection station)Turnaround time = 1.50 minutes/unit x (12 - 1)Turnaround time = 1.50 minutes/unit x 11Turnaround time = 16.5 minutes

Therefore, the information turnaround time for a defect produced at station 1 and detected at station 12 would be 16.5 minutes.

MangiareBuono, a supermarket chain, has asked Fiorello to supply it with 30,000 gallons of Top Quality Oil at a price of $8 per gallon. MangiareBuono plans to have the oil bottled in 16-ounce bottles with its own MangiareBuono label. If Fiorello accepts the order, it will save $0.23 per gallon in the packaging of Top Quality Oil. There is sufficient excess capacity for the order. However, the market for Refined Oil is saturated, and any additional sales of Refined Oil would take place at a price of $3.10 per gallon. Assume that no significant non-unit-level activity costs are incurred.
a. What is the profit normally earned on one production run of Refined Oil and Top Quality Oil?
b. Should Fiorello accept the special order?

Answers

Answer:

The complete question and solution  is given in the box below

Explanation:

Special Order, Traditional Analysis Fiorello Company manufactures two types of cold-pressed olive oil, Refined Oil and Top Quality Oil, out of a joint process. The joint (common) costs incurred are $92,500 for a standard production run that generates 30,000 gallons of Refined Oil and 15,000 gallons of Top Quality Oil. Additional processing costs beyond the split-off point are $2.40 per gallon for Refined Oil and $1.95 per gallon for Top Quality Oil. Refined Oil sells for $4.25 per gallon, while Top Quality Oil sells for $8.30 per gallon. MangiareBuono, a supermarket chain, has asked Fiorello to supply it with 30,000 gallons of Top Quality Oil at a price of $8 per gallon. MangiareBuono plans to have the oil bottled in 16-ounce bottles with its own MangiareBuono label. If Fiorello accepts the order, it will save $0.23 per gallon in packaging of Top Quality Oil. There is sufficient excess capacity for the order. However, the market for Refined Oil is saturated, and any additional sales of Refined Oil would take place at a price of $3.10 per gallon. Assume that no significant non-unit-level activity costs are incurred. Required: 1. What is the profit normally earned on one production run of Refined Oil and Top Quality Oil? $ 2. Should Fiorello accept the special order?

solution

a) normal profit = (30,000 gallons x $4.25) + (15,000 gallons x $8.3) - $193,750 = $58,250

b) Do determine whether to accept the special order

 cost per gallon = $92500 x 15000

                                                45000

                 $30833

           =       15000    

        $2.1 per gallon

     $2.1 + $1.95 = $4.05

profit margin per gallon = $8 - $4.05 - $0.23

                          = $3.72

In this manner, special order ought to be acknowledged as we can see the net revenue is adequate to recover the related expenses and friends has the entrance limit also.

Sepulvada Manufacturing Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The purchase price is $4 per pound, but a 2% discount is usually taken. Freight costs are $.15 per pound, and receiving and handling costs are $.10 per pound. The hourly wage rate is $9.00 per hour, but a raise which will average $.25 will go into effect soon. Payroll taxes are $1.00 per hour, and fringe benefits average $2.00 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is .2 hours and .1 hours, respectively. The standard direct labor rate per hour is:

Answers

Answer:

$12

Explanation:

The standard direct labor rate is the budgeted direct labor cost per hour incurred in the manufacturing process. It is used to calculate the budgeted production costs:

the current hourly wage is $9.00 and we must add the payroll taxes per hour ($1.00) and the fringe benefits per hour ($2.00) = $9 + $1 + $2 = $12

Even though a pay raise will occur soon, until it does actually happen, it cannot be considered in the calculation of the standard labor rate.

Mills Corporation acquired as an investment $300 million of 7% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 5% for bonds of similar risk and maturity. Mills paid $340 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $325 million.Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.

Answers

Answer and Explanation:

As per the data given in the question,

Journal entries on July 1 and Dec. 31,2021

July-01    Investment in bonds A/C Dr. $300 million

               Premium on bonds A/c Dr. $40 million

               To Cash  A/c $340 million

Dec-31    Cash A/c Dr. $10.5 million

                        ($300 × 3.5%)

              To Premium on bonds  A/c $2.00 million

              To Interest Revenue A/c $8.5 million

                        ($340 × 2.5%)

Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years.
Required:
a)
What is the effective annual interest rate (EAR) you would get for your investment in the first 10
years?
b)
How much money do you have in your account today?
c)
If you wish to have $85000 now, how much should you have invested 15 years ago?

Answers

Answer:

Part A: 8.16%

Part B: $56,577.5

Part C: $39,700

Explanation:

Part A:

EAR = (1 + r / n )^ n      -  1

Here

r is the nominal interest rate, which is 8%

n is the number of compounding periods in a year and here, for semiannual requirement it is 2.

So by putting values in the above equation, we have:

EAR = (1 + 8% /2) ^2   - 1

= 8.16 %

Part B:

Amount invested is $12500 which must be compounded for 10 years semi annually at the EAR. This means

The future value = Initial Investment + Interest Income for 10 year

Future Value after 10 years = $12500 + ( $12500 *  8.160%*10 years)

= $22,700

Similarly,

Amount invested for next 5 years is $42,700 ($22,700 and the additional $20,000 which was added to the account). This amount must be compounded for next 5 years at 6.5%. This means

Value Today = Initial Investment + Interest Income for 5 year

The Future Value = $42,700 + (42,700 * 6.5% * 5 years) = $56,577.5

Part C:

Let the initial amount that was deposited be "x".

As per the guidelines given in the question, for first 10 years the interest is EAR which is 8.16%.

Interest Earned = (x * 8.16% * 10 Years) = 0.816x

The same initial investment "x" would be investment for the next 5 years at 6.5% rate.

For next 5 years:

Interest Earned = (x * 6.5% * 5) = 0.325x

Future value of the investment at the end of the year 15 = $85,000

0.816x + 0.325x + x = $85,000

2.141x = $85,000

x = $85,000 / 2.141 = $39,700

With a required reserve ratio of 20%, explain in detail how an Open Market Purchase of $100,000 from an individual leads to an expansion in the money supply. I would like you to describe (at least) four different "rounds" in this process. By how much does the money supply increase during each round? What is the maximum the money supply can increase from this Open Market Purchase? What can lead to the actual increase being much lower than the above number?

Answers

Answer:

the answer is 500000

Explanation:

Solution

When bank gives out loan they don't reimburse them in cash rather they pit in amount into their demand deposit and deposit  is also part of supply of money.

Normally, let's  say bank give loan of 100000 to a first person.then bank will give the person 1 with the deposit demand in his account. based on requirements reserve ratio, the  bank will keep 20% with them in cash and borrow the  remaining 80000 to other person.

Again, the bank will deposit in person 2 or second person and lend 64000 o third person  and keep 16000 as cash.

Importantly, in the explanation above when we say bank will deposit 80000 in persons account,its only refers to as book keeping, that is, it is written only in books and the account holder balance goes higher but the actual money stays with the bank.

Now,

Total amount of money supply bank can produce = the multiplier*high money powered =1/0.2*100000

=500000

Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $45 per unit with variable costs of $30 per unit. Plaid models sell for $50 per unit with variable costs of $25 per unit. Total fixed costs for the company are $19,950. Mayfield Company typically sells two Blue models for every three Plaid models. Required: What is the breakeven point in total units

Answers

Answer:

Break even point in total units is 950 units

Explanation:

The break even point in total units is the composite break even point considering both the products. This will give us one overall break even point for the company. The break even point in units is the number of units that must be sold in order for the total revenue to be equal to total costs.

To calculate the over all break even in units, we need to divide the fixed costs by the weighted average contribution per unit.

Weighted average contribution per unit = weight of product A in sales mix * contribution of product A  +  weight of product B in sales mix * contribution of product B

Sales mix = 2 + 3  = 5

Blue = 2 / 5 = 0.4

Plaid = 3 / 5 = 0.6

Weighted average contribution per unit = 2/5 * (45 - 30)  +  3/5 * (50 - 25)

Weighted average contribution per unit = $21 per unit

Break even point in units = 19950  /  21    = 950 units

Novak Corp. reported net income of $1.20 million in 2022. Depreciation for the year was $192,000, accounts receivable decreased $420,000, and accounts payable decreased $336,000. Compute net cash provided by operating activities using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answers

Answer:

$1,476,000

Explanation:

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

Statement of The Cash Flow 31 December,2022

Particular                               Amount        Total Amount

Net Income                                                  $1,200,000

Depreciation                                $192,000  

Accounts receivable Decrease   $420,000  

Accounts payable Decrease       ($336,000)  

                                                                 $276,000

Net cash provided by operating activities        $1,476,000

The four components of planned aggregate expenditure are: A. spending on domestic goods, domestic services, foreign goods, and foreign services.B. spending on durable goods, inventory investment, government debt, and net exports.C. consumption, planned investment, government transfers, and net interest.D. consumption, planned investment, government purchases, and net exports.

Answers

Answer:

D.

Explanation:

Aggregate Planned Expenditure (AE) can be defined as the sum value of all the finished products and services in an economy. This value is calculated by adding all the expenditures that are considered in an economy. These components are household consumption (C), planned investments (I), Government expenditures or purchases (G), and net exports (NX) [net exports is the difference between the total exports and total imports].

The sum value or the aggregate planned expenditure is calculated by adding all these components.  

So, the correct answer is option D.

Which of the following is true of investors using options to manage​ risk? A. Investors can hedge against a price decline by buying a call option. B. Investors can hedge against a price decline by buying a put option. C. Options suffer a loss if the value of the asset moves in the opposite direction of that being hedged against. D. Options are less expensive than other hedging devices.

Answers

Final answer:

A put option can be used to hedge against a price decline, and options can suffer losses if the value of the asset moves in the opposite direction of the hedged risk. Options can be more expensive than other hedging devices.

Explanation:

Investors can hedge against a price decline by buying a put option, making statement B true.

A put option gives the holder the right, but not the obligation, to sell a specific quantity of an asset at a fixed price, known as the strike price, at anytime before the expiration date.

If the investor believes that the price of the asset will decline, buying a put option gives them the ability to sell the asset at the strike price, thus protecting them from potential losses.

Furthermore, statement C is true.

Options, including put options, do suffer a loss if the value of the asset moves in the opposite direction of that being hedged against.

However, the maximum loss for the holder of a put option is limited to the premium paid for the option.

Statement D, on the other hand, is false.

Options can be more expensive than other hedging devices, such as futures contracts or forward contracts, depending on various factors like the time to expiration, the volatility of the asset's price, and the strike price.

Which of the following statements about Treasury bonds is the most accurate? Treasury bonds are completely riskless. Treasury bonds have a very small amount of default risk, so they are not completely riskless. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise. Based on the information given in the following statement, answer the questions that follow: In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas, and Mitsubishi UFJ Securities. Who is the issuer of the bonds? Walmart BNP Paribas Mitsubishi UFJ Securities What type of bonds are these? Municipal bonds Corporate bonds Government bonds

Answers

Answer: 1. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

2. Walmart

3. Corporate bonds

Explanation:

1. Indeed even though Treasury bonds have a very low risk rating, they are not completely risk-less. They have a very low risk rating because they will always be honoured (US T - bonds that is) and so that eliminates the default risk. However, they are still exposed to maturity risk as well as inflation risk for the most part. This means that as interest rates rise therefore, their prices drop making them just a little but risky.

2. Walmart issued the bonds making them the issuer. The rest of the names are Underwriters.

3. Since the bonds were issued by a Corporation being Walmart, the bonds are Corporate Bonds.

Steven Wong wishes to save for his retirement by depositing $1,200 at the beginning of each year for thirty years. Exactly one year after his last deposit, he wishes to begin making annual level withdrawals until he has made twenty withdrawals and exhausted the savings. Find the amount of each withdrawal if the effective interest rate is 5% during the first thirty years but only 4% after that.

Answers

After 30 years of making annual deposits of $1,200 with a 5% interest rate, the total value of the deposits will be approximately $78,917.25. If Steven plans to make 20 withdrawals, each withdrawal should be approximately $3,945.86 to evenly distribute the total amount.

To find the amount of each withdrawal, we can use the concept of present value and future value. Let's break it down step by step:

Calculate the future value of the deposits

Using the formula for the future value of an ordinary annuity, we can find the total value of the deposits after 30 years. The formula is:

[tex]FV = PMT * ((1 + r)^n - 1) / r[/tex]

Where FV is the future value, PMT is the annual deposit, r is the interest rate, and n is the number of years.

Plugging in the values:

PMT = $1,200

r = 5% = 0.05

n = 30

[tex]FV = $1,200 * ((1 + 0.05)^30 - 1) / 0.05[/tex]

FV ≈ $78,917.25

So, after 30 years, the total value of the deposits will be approximately $78,917.25.

Calculate the amount of each withdrawal

Now that we know the total value of the deposits, we can calculate the amount of each withdrawal. Since Steven wants to make 20 withdrawals, we divide the total value by 20:

Amount of each withdrawal = Total value of deposits / Number of withdrawals

Amount of each withdrawal ≈ $78,917.25 / 20

Amount of each withdrawal ≈ $3,945.86

Therefore, each withdrawal should be approximately $3,945.86.

The amount of each withdrawal will be approximately $235.29.

Step 1

To find the amount of each withdrawal, we can use the present value of an annuity formula.

First, we calculate the future value of the annuity after thirty years using the effective interest rate of 5%.

Let P be the deposit amount at the beginning of each year, n be the number of deposits (30 years), and r be the effective interest rate.

[tex]\[ FV = P \times \frac{(1 + r)^n - 1}{r} \]\[ FV = 1200 \times \frac{(1 + 0.05)^{30} - 1}{0.05} \]\[ FV = 1200 \times \frac{(1.05)^{30} - 1}{0.05} \]\[ FV \approx 1200 \times \frac{4.3219 - 1}{0.05} \]\[ FV \approx 1200 \times \frac{3.3219}{0.05} \]\[ FV \approx 1200 \times 66.438 \]\[ FV \approx 79725.6 \][/tex]

Step 2

Now, we need to calculate the annual withdrawal amount using the future value of the annuity and the remaining number of withdrawals (20 years) at an effective interest rate of 4%.

Let W be the withdrawal amount.

[tex]\[ 79725.6 = W \times \frac{1 - (1 + 0.04)^{-20}}{0.04} \]\[ 79725.6 = W \times \frac{1 - (1.04)^{-20}}{0.04} \]\[ 79725.6 \times 0.04 = W \times \frac{1 - 0.457976}{0.04} \]\[ 79725.6 \times 0.04 = W \times \frac{0.542024}{0.04} \]\[ 3190.024 = W \times 13.5506 \]\[ W \approx \frac{3190.024}{13.5506} \]\[ W \approx 235.29 \][/tex]

So, the amount of each withdrawal will be approximately $235.29.

Calla Company produces skateboards that sell for $69 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 80,100 skateboards per year. Annual costs for 80,100 skateboards follow. Direct materials $ 937,170 Direct labor 680,850 Overhead 959,000 Selling expenses 549,000 Administrative expenses 475,000 Total costs and expenses $ 3,601,020 A new retail store has offered to buy 14,900 of its skateboards for $64 per unit. The store is in a different market from Calla's regular customers and would not affect regular sales. A study of its costs in anticipation of this additional business reveals the following: Direct materials and direct labor are 100% variable. 40 percent of overhead is fixed at any production level from 80,100 units to 95,000 units; the remaining 60% of annual overhead costs are variable with respect to volume. Selling expenses are 60% variable with respect to number of units sold, and the other 40% of selling expenses are fixed. There will be an additional $2.90 per unit selling expense for this order. Administrative expenses would increase by a $810 fixed amount. Required: 1. Prepare a three-column comparative income statement that reports the following: a. Annual income without the special order. b. Annual income from the special order. c. Combined annual income from normal business and the new business. 2. Should Calla accept this order?

Answers

Answer:

I do not have the necessary space to prepare the three column analysis, but the answers to the questions are:

since the special order does not affect current normal sales, its analysis should only consider relevant expenses, not regular expenses:

A) Income statement without the special order

total revenue = $69 x 80,100 = $5,526,900

- COGS                                     = ($2,577,020)

Direct materials $937,170Direct labor $680,850Overhead $959,000            

gross profit                               = $2,949,880

- SG&A                                      = ($1,024,000)

Selling exp. $549,000

Administrative exp. $475,000

net income                               = $1,925,880

B) relevant revenue from special order = 14,900 x $64 = $953,600

- relevant costs:

direct materials = ($937,170 / 80,100 units) x 14,900 = $174,330direct labor = ($680,850 / 80,100 units) x 14,900 = $126,650overhead = ($575,400 / 80,100 units) x 14,900 = $107,034selling expenses = [($329,400 / 80,100 units) x 14,900] + ($2.90 x 14,900) = $74,952 + $48,330 = $104,484administrative expenses = $810total relevant costs = $513,308

gain from special order = $953,600 - $513,308 = $440,292

C) Income statement with the special order

total revenue                            = $6,480,500

- COGS                                     = ($2,985,034)

Direct materials $1,111,500Direct labor $807,500Overhead $1,066,034            

gross profit                               = $3,495,466

- SG&A                                      = ($1,129,294)

Selling exp. $653,484Administrative exp. $475,810

net income                               = $2,366,172

Answer:

Calla Company:

1. Comparative Income Statement:

This is attached.

a) Sales:

i) Normal = $69 * 80,100 = $5,526,900

ii) Special order = $64 * 14,900 = $953,600

iii) Combined = $6,480,500

b) Direct Materials Cost:

i) Normal = $937,170

ii) Special order = $174,330 ($937170/80,100 x 14,900)

iii) Combined = $1,111,500

c) Direct Labour Cost:

i) Normal = $680,850

ii) Special = $126,650  ($680,850/80,100 x 14,900)

iii) Combined = $807,500

d) Overhead Costs:

i) Normal - $959,000

ii) Special = $107,034 ((60% of $959,000)/80,100 x 14,900)

iii) Combined = $1,066,034

e) Selling Expenses:

i) Normal = $549,000

ii) Special = $61,274  (60% of $549,000)/80,100 x 14,900)

iii) Combined = $610,274

f) Administrative:

i) Normal = $475,000

ii) Special = $810

iii) Combined = $475,810

2. Advise:

Calla should accept this order.  Income would increase by more than $400,000.

Explanation:

This is "an accept or reject" special order type of decision.  To compute costs, only relevant costs, which will vary with the special order, are considered.   Sunk costs, which do not make a difference, are not taken into account in arriving at the income for the special order.

This analysis is also called Incremental Analysis or Differential Analysis.  It helps management to make a decision of whether to accept the special order or not.  It is an important technique in managerial accounting.

Oriole Sportswear manufactures a line of specialty T-shirts using a job order costing system. In March the company incurred the following costs to complete Job ICU2: direct materials, $14,000, and direct labor, $4,400. The company also incurred $1,580 of administrative costs and $5,400 of selling costs to complete this job. Job ICU2 required 800 machine hours. Factory overhead was applied to the job at a rate of $25 per machine hour. If Job ICU2 resulted in 6,000 good shirts, what was the cost of goods sold per shirt

Answers

Answer:

6.4

Explanation:

The computation of cost of goods sold per shirt is shown below:-

For computing the cost of goods sold per shirt first we need to find out the factory overhead applied and total production cost which is here below:-

Factory overhead applied = 800 × $25

= $20,000

Total Production cost = Direct material + Direct labor + Factory overhead applied

= $14,000 + $4,400 + $20,000

= $38,400

Per Unit Cost of Goods Sold = Total Production cost ÷ Number of Units Per JOB ICU 2

= $38,400 ÷ 6,000

= 6.4

On January 1, 2018, M Company granted 99,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2020, and expire on January 1, 2024. Each option can be exercised to acquire one share of $1 par common stock for $11. An option-pricing model estimates the fair value of the options to be $3 on the date of grant.


If unexpected turnover in 2019 caused the company to estimate that 10% of the options would be forfeited, what amount should M recognize as compensation expense for 2019?


Multiple Choice


$99,000


$33,000


$79,200


$49,500

Answers

Answer:

$79,200

Explanation:

The computation of the compensation expense for 2019 is shown below:

= Number of stock options × fair value of the options × remaining percentage × basis of share - Number of stock options

= [(99,000 × $3) × 90% × 2 ÷ 3] - 99,000

= $79,200

We simply applied the above formula so that the compensation expense for 2019 could come

Will Jones, Pharoah is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $424 annual fee plus $11 per tax return for a license to use Mega Tax software. (a) What is the company’s total annual cost for the Mega Tax software if 342 returns are filed? If 446 returns are filed? If 500 returns are filed?

Answers

Answer and Explanation:

The computation of the total annual cost for each returns are shown below:

a. For 342 returns

= $424 + $11 × $342

= $424 + $3,762

= $4,186

b. For 446 returns

= $424 + $11 × $446

= $424 + $4,906

= $5,330

c. For 500 returns

= $424 + $11 × $500

= $424 + $5,500

= $5,924

We simply pay the annual fees and then added the added value i.e annual fee multiply with the each returns filed

Corporations often distribute profits to their shareholders in the form of dividends, which are simply checks mailed out to shareholders. Suppose that you have the chance to buy a share in a fashion company called Rogue Designs for $35 and that the company will pay dividends of $2 per year on that share every year. What is the annual percentage rate of return?

Answers

Answer:

5.71%

Explanation:

Corporations annual percentage rate of return

Dividends of $2 per year ÷ Designs for $35

=0.0571

=0.0571×100

=5.71%

Therefore a yearly dividend of $2 on a $35 share of stock equals a 5.71% annual rate of return

Final answer:

The annual percentage rate of return for the $35 share in Rogue Designs, which pays a $2 dividend per year, is approximately 5.71%.

Explanation:

In this scenario, we're asked to determine the annual percentage rate of return for an investment in a share of a company called Rogue Designs. This concept is a term from financial mathematics that refers to the annual percent change in an investment's value. The formula to calculate the annual return rate is: Annual Return Rate = (Annual dividend / Price of share) x 100%.

In the case you presented, Rogue Designs' share costs $35 and it pays a $2 dividend per year. Substituting these given values into the formula, we find the annual return rate equals: (2 / 35) x 100%. So, the annual return rate is approximately 5.71%.

Learn more about Annual Percentage Rate of Return here:

https://brainly.com/question/32830965

#SPJ3

Nine years ago the Templeton Company issued 26-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a 9% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.

Answers

Answer:

11.62%

Explanation:

Note: see the attached excel file for how the realized rate of return is estimated.

Face value = $1,000  

Years completed = 9

Coupon rate = 11%

Coupon amount ($) = 110  

Call premium = 9%

Call price = 1,090

Realized rate of return = 11.62%

A personal computer is used for office work at home, research, communication, personal finances, education, entertainment, social networking, and a myriad of other things. Suppose that the average number of hours a household personal computer is used is 4.4 hours per day, across the population of households in the United States. Assume the the population of household usage times is normally distributed and the standard deviation for the times is 2 hours.

You are told that a given household (Household A) from the population has the following two qualities

1. It uses its computer an above-average number of hours per day.

2. The probability of randomly drawing a household with a computer-usage at least as extreme (i.e., combining across extremely high and low usage rates) as Household A is 0.02.

What is the minimum number of hours per day that Household A must use its computer? Round your answer to the second decimal place. If you can't find the exact table entry you're looking for, use the table entry that's closest. If there's a tie, use the smaller of the two options.

**please explain each step to get the correct answer. Answer is 9.06

Answers

Answer:

Check the explanation

Explanation:

There are also many alternatives ways to solve this problem, but i think that you can understand the below concept which i have provided in the attached image.

Final answer:

Given that the probability of randomly drawing a household with a computer usage at least as extreme as Household A is 0.02, the minimum number of hours per day that Household A must use its computer is 9.06 hours.

Explanation:

In this question, we're essentially being asked to find the Z score (the number of standard deviations from the mean) for a given probability. Here the average daily household use of a computer is given as 4.4 hours, and we're told the standard deviation (SD) is 2 hours.

We know from the information given that the household's usage is above average and their combined extreme usage rate, either high or low, is equivalent to a two-sided probability of 0.02. Since the distribution is normal, we find the corresponding Z score for one tail which equals to 0.02/2 = 0.01. Looking up in a standard Z score table, we find that the Z score corresponding to the 0.01 tail probability is about 2.33.

Now we can figure out the household's usage in comparison to the mean. Each Z score represents one SD from the mean. Using the formula X = μ + Zσ, X is the raw score we want to find, μ is the mean (4.4), Z is the Z score (2.33), and σ is the standard deviation (2). So, X = 4.4 + 2.33 * 2 = 9.06 (rounded to the second decimal place). So the household we're looking at must be using its computer at least 9.06 hours per day.

Learn more about Statistics here:

https://brainly.com/question/31538429

#SPJ3

Purchases Budget Rest Inn provides four-star accommodations for the vacation traveler. It is located just off a major interstate freeway. There are three other competing motels at the same exit. Hotel management is preparing its budget for the busiest three-month period of the year, June through August. To differentiate themselves from the competition, Rest Inn provides a complimentary spa package for each guest stay that includes specialty shampoo, conditioner, soap, lotion, toothpaste, lavender essential oil, slippers, earplugs, and a sleep mask. Rest Inn purchases the spa package from a local vendor that puts the Rest Inn private label on the products. The hotel follows a policy of purchasing enough spa packages to ensure that 40% of next month’s bookings are in the current month’s ending inventory. Rest Inn’s sales budget for guest stays for the next quarter is as follows:
June 2,300 guest stays
July 2,500 guest stays
August 2,100 guest stays
How many spa packages should Rest Inn budget for purchase in July?

Answers

Answer:

2,340

Explanation:

The computation of purchase to be made on July is shown below:-

Particulars                                   June            July            August

Sales                                            2,300           2,500           2,100

Add: Closing Inventory                1,000            840  

(40% of next month)

Less: Opening Inventory                                  1,000           840

(Closing of previous month)

Purchases to be made                3,300           2,340        1,260

Therefore the purchase to be made on July is 2,340

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.

Last year, the company sold 36,000 of these balls, with the following results:

Sales (36,000 balls) $ 900,000
Variable expenses 540,000
Contribution margin 360,000
Fixed expenses 263,000
Net operating income $ 97,000

Required:

1. Compute the CM ratio and the break-even point in balls.
2. Compute the the degree of operating leverage at last year.

Answers

Answer: 15$ per ball and 60% is direct label cost! Ur answer’s are 15$ and 60% dlc!

Explanation:

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.

The Doodad Company purchases a machine for $440,000. The machine has an estimated residual value of $40,000. The company expects the machine to produce eight million units. The machine is used to make 700,000 units during the current period.If the units-of-production method is used, the depreciation expense for this period is:___________.A. $38,500.B. $700,000.
C. $660,000.D. $35,000.

Answers

Answer:

Annual depreciation= $35,000

Explanation:

Giving the following information:

The Doodad Company purchases a machine for $440,000.

The machine has an estimated residual value of $40,000.

The company expects the machine to produce eight million units.

The machine is used to make 700,000 units during the current period.

To calculate the depreciation expense under the units-of production method, we need to use the following formula.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(440,000 - 40,000)/8,000,000]*700,000

Annual depreciation= 0.05*700,000

Annual depreciation= $35,000

There is a raging debate at the IT consulting firm where you work. Some staff members believe that it is harder for experienced analysts to learn object-modeling techniques, because the analysts are accustomed to thinking about data and processes as separate entities. Others believe that solid analytical skills are easily transferable and do not see a problem in crossing over to the newer approach. What do you think, and why?

Answers

Answer:

I think that solid analytical skills are easily transferable. So, there is no problem in crossing over to the newer approach.

Explanation:

An experienced analyst possesses core analytical skills such as researching, critical thinking, adaptability, eye for detail and strategy.

Now, the introduction of object modelling which differs from their current procedure will require a general orientation and if need be a thorough training on their part to get used to.

A skilled analysts, they can easily cross over to the new approach of object modeling which involves designing and developing object oriented software modeled from objects in the real world.

Final answer:

Experienced analysts can transition to object-modeling techniques by refining analytical skills and embracing new perspectives through continuous learning and adaptation in the technology and business sectors.

Explanation:

Object-modeling techniques can pose a challenge for experienced analysts who are used to separating data and processes, as this new approach requires a different mindset. However, solid analytical skills are indeed transferable, and individuals skilled in analysis can adapt to object-modeling techniques by honing their critical thinking abilities and by embracing the shift in perspective.

By learning new skills through observation, practice, and adaptation, workers in various industries can navigate changes in technology and management styles. It is crucial to continuously refine both job-specific and transferable skills to stay relevant and adaptable in the evolving landscape of technology and business.

Other Questions
The mass of the cylinder is 50,000 g. Find the density of the cylinder to the nearest tenthanswer choices0.7 g/mm381.2 g/mm32.7 g/mm30.4 g/mm3 The mean of hours that the average person watches television each day is 4.18 hours with a standard deviation of 1.19 hours. Find probability that someone watches between 3 and 5 hours a day Marin's Cleaning Supplies Company has an idea for a cleaner that is universal and can clean any surface type. This could simplify the cleaning process for homeowners, as well as janitors and other professional cleaners. When doing business analysis, the most important question this company should consider when deciding whether to develop this product is: Identify the most compelling graphic that would accompany this title for sport players and the spread of germs.Don't get sidelined by the flua faucet and soapc. a doctor's officeb. football player sitting on bench with a thermometer d. all of thein his mouthPlease select the best answer from the choices provided Natalie kicked a soccer ball. The equation h=-16t^2+50t describes the height of the ball (T) seconds after it was kicked. Approximately how many seconds went by before the ball hit the ground? Determine the identity of the element that contains exactly three 4p electrons in the ground state What is the expanded form of the series represented below?S5 = [-3+(k=16]-3+2+7+12+17-3+3+8+13+ 18O2+7+12+17+225+2+(-1)+(-4)+(-7)Pls hurry for a test Consider the following data concerning the equation: H2O2 + 3I + 2H+ I3 + 2H2O [H2O2] [I] [H+] rate I 0.100 M 5.00 104 M 1.00 102 M 0.137 M/sec II. 0.100 M 1.00 103 M 1.00 102 M 0.268 M/sec III. 0.200 M 1.00 103 M 1.00 102 M 0.542 M/sec IV. 0.400 M 1.00 103 M 2.00 102 M 1.084 M/sec Two mechanisms are proposed: I. II. Which mechanism and which step as the rate determining step would best fit the data? Radians and arc length Create a script that internally calls the Linux command 'ps aux' and saves the output to a file named unprocessed.txt (you do not need to append to an existing file, if a file already exists, simply overwrite it). The program should pause and display the following message to the screen: Press 'q' to exit or 'ctrl-c' to process the file and exit' If the user presses 'q', exit the program leaving the filename on the disk as 'unprocessed.txt'. If the user presses 'ctrl-c', then catch the signal (hint - covered in chapter 16) and rename the file to 'processed.txt' and then exit. You must build a signal handler to catch the ctrl-c signal and rename the file. g Explain the characteristics of reliable sources The specific heat of copper is 0.4 J/g^ *C If a sample of copper absorbs 480J of energy and its temperature changes from 20.0 ^* c to 60.0 ^ * C what mass of copper was heated? Comets _____. orbit the Earth are usually found between Jupiter and Mars have very irregular shapes have very elliptical orbits The value of AH for the reaction below is +128.1 kJ CH3OH (I)-CO (g) + 2H2 (g) How much heat is consumed when 87.1 g of hydrogen gas is formed? A) 2.76 x 103 kJ B) 5.52 x 103 kJ C) -5.52 x 103 kJ D) -2.76 x 103 kJ E) -128.1 kJ In considering a move to a place that is unfamiliar to you, what information about weather and climate would be most useful? In considering a move to a place that is unfamiliar to you, what information about weather and climate would be most useful? precipitation data for the past 30 days type and amount of clouds over the past 30 days long-term climate data data providing temperature extremes weather data for the past 30 days Which of these makes a student loan different from other types of loans?OA. Students don't have to provide any collateral to get a student loan.OB. The payments on a student loan can't be shown on anamortization table.OC. Student loans are sponsored and guaranteed by the government.D. The principal on a student loan is paid off before the interest isapplied What is the next term of the geometric sequence? 108,36,12, The Olmec civilizations economy was based on the sharing of resources. trade with other civilizations. the use of currency to buy goods. available resources and bartering. Examine the properties of the three magnets in the chart below. Which of thesemagnets is most likely a temporary magnet? What does it mean when a trait is independent from another trait? Give one example. Steam Workshop Downloader