Answer:
Option (B).
Explanation:
According to the scenario, computation of the given data are as follows:
Doctor's bill = $4,200
Deductible amount = $250
Insurance company pays = 80%
Veronica pays = 20%
So, we can calculate the total amount veronica pay by using following formula:
Veronica Pay amount = [( Doctor's bill - Deductible amount ) × Veronica pays%] + Deductible amount
= [($4,200 - $250) × 20%] + $250
= $790 + $250
= $1,040
Daily Enterprises is purchasing a $ 10.4 million machine. It will cost $ 48 comma 000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $ 4.2 million per year along with incremental costs of $ 1.1 million per year. Daily's marginal tax rate is 35 %. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine?
Answer:
The free cash flow for year 0 will be $ -10,448,000
The free cash flow for years 1–5 will be $2,746,360
Explanation:
Free Cash Flow for the Year 0
Free Cash Flow for the Year 0 = Cost of the Machine + Transportation + Installation Charges
= -$10,400,000 - $48,000
= -$10,448,000
Free cash flows for the Years 1 – 5
Incremental free cash flows =
[(Annual Sales - Costs) x (1 – Tax Rate)] + [Depreciation x Tax Rate]
= [($4,200,000 - $1,100,000) x (1 – 0.35)] + [($10,448,000 / 5 Years) x 0.35]
= [$3,100,000 x 0.65] + [$2,089,600 x 0.35]
= $2,015,000 + $731,360
= $2,746,360
Therefore the The free cash flow for year 0 will be $ -10,448,000 and the free cash flow for years 1–5 will be $2,746,360
A dynamic capability is the Group of answer choices functional and operating resources management process. ongoing capability to understand and establish a rival commitment to resource alignment. most compelling product or service a firm. improvement evaluation process for eliminating waste in the firm. ongoing capacity to modify existing resources and capabilities to create new ones.
Answer:
ongoing capacity to modify existing resources and capabilities to create new ones.
Explanation:
A dynamic capabilities can be simply defined as the ability of an organisation or firm to blend, build and reshape both the internal and external aspect of an organisation so as to get/produce an outcome that is needed by the organisation/firm. it is a series of processes in organisations that brings about a required needed outcome. DC gives organisation an advantages or an edge over others as companies or organisations has restructured/reconfigure their organisation for better performance.
"In a long-run equilibrium, price is equal to average total cost." This statement applies to A. perfectly competitive markets, but not to monopolistically competitive markets or monopolies. B. perfect competitive and monopolistically competitive markets, but not to monopolies. C. perfect competitive markets, monopolistically competitive markets, and monopolies. D. None of the above is correct.
Answer:
C) perfect competitive markets, monopolistically competitive markets, and monopolies.
Explanation:
In economics, the short run is defined as a period of time where at least one (or more) of the factors of production is fixed, e.g. production facilities, equipment, etc.
The long run refers to a period of time where no factor of production is fixed, meaning that all costs are variable.
Short run and long run are not definite time periods, they can last a few months to several years.
These concepts apply to all markets, and in all types of markets (perfect competition, monopolistically competitive and monopolies) the long run average total cost will equal the price. At that point the firms will all be maximizing their accounting profits (because output will be located where marginal cost = average total cost = total variable cost) but making $0 economic profits.
The statement applies to both perfectly competitive and monopolistically competitive markets, but not to monopolies. This is because perfectly competitive and monopolistically competitive markets adjust to a point where price equals average total cost in the long run, while monopolies, having control over price, do not necessarily reach this point.
Explanation:The statement "In a long-run equilibrium, price is equal to average total cost" applies to both perfectly competitive and monopolistically competitive markets but not to monopolies. So the correct answer is B. Perfect competitive and monopolistically competitive markets, but not to monopolies.
In perfectly competitive markets, firms are price takers and do not have control over the price. They can only adjust output level to maximise profit. In the long run, new firms will enter or existing firms will exit until price equals the minimum point of the average total cost.
Similarly, in monopolistically competitive markets, firms will also reach a point where price equals average total cost in the long run. However, monopolies do not necessarily reach this point because they have control over price, hence they can make profits even in the long run.
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A government leader determines that the 5% unemployment rate is too high. She asks her staff to research policy options to reduce the rate and a few weeks later is given four options. Each option would reduce the rate by a different amount and at a different cost. The leader studies the options and chooses the one she feels is best for the country. In order, what types of analysis were used in this three-stage chain of events?
Answer:
4 alnylisssss
Explanation:
Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $50,000 to J.D. His basis in his Clampett, Inc., stock on January 1, 2020, was $45,000. For 2020, J.D. was allocated $10,000 of ordinary income from Clampett, Inc., and no separately stated items. What is the amount of income J.D. recognizes related to Clampett, Inc., in 2020
Answer:
$5,000
Explanation:
Given:
Basis distribution = $50,000
Basis stock = $45,000
Ordinary income = $10,000
Computation of Capital gain:
Capital gain = Basis distribution - Basis stock - Ordinary income
Capital gain = $50,000 - $45,000 - $10,000
Capital gain = - $5,000
Computation of J.D. income related to Clampett = Ordinary income + Capital gain
Computation of J.D. income related to Clampett = $10,000 - $5,000
Computation of J.D. income related to Clampett = $5,000
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized,
45,000 shares issued and outstanding $ 900,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 400,000
Total stockholders' equity $ 1,370,000
In year 2017, the following transactions affected its stockholders’ equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $15 cash per share.
Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1,688 of its treasury shares at $19 cash per share.
Aug. 22 Sold 2,812 of its treasury shares at $12 cash per share.
Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 Closed the $428,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required:
1. Prepare journal entries to record each of these transactions for 2017.
2. Prepare a statement of retained earnings for the year ended December 31, 2017.
3. Prepare the stockholders' equity section of the company’s balance sheet as of December 31, 2017.
Prepare a statement of retained earnings for the year ended December 31, 2017. (Amounts to be deducted should be indicated by a minus sign.)
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1. Journal Entries
On Jan 1
Treasury stock A/c ($15 × 4,500) Dr. $67,500
To Cash A/c $67,500
(Being the purchase of own shares is recorded)
On Jan 5
Retained earnings A/c Dr. {(45,000 - 4,500) × $4 } $162,000
To Dividends payable A/c $162,000
(Being the dividend payable is recorded)
On Feb 28
Dividends payable A/c Dr. $162,000
To Cash A/c $162,000
(Being the dividend is paid)
On July 6
Cash ($19 × 1,688) Dr. $32,072
To Treasury stock A/c ($15 × 1,688) $25,320
To paid in capital in excess of treasury stock A/c $6,752 (Being the sale of treasury shares is recorded)
On Aug 22
Cash A/c ($12 × 2,812) Dr. $33,744
Paid in capital in excess of par-treasury stock Dr. $6,752
Retained earnings Dr. $1,684
To Treasury stock A/c ($15 × 2,812) $42,180
(To Record the sold treasury shares)
On Sep 5
Retained earnings A/c($4 × 45,000) Dr. $180,000
To Dividends payable A/c $180,000
(Being the dividend is declared)
On Oct 28
Dividends payable A/c Dr. $180,000
To Cash A/c $180,000
(Being the dividend is paid)
On Dec 31
Income summary Dr. $428,000
To Retained earnings A/c $428,000
(Being the income summary account is closed)
2. Statement of Retained Earnings
Particular Amount($) Total Amount($)
Opening balance $400,000
Add - Net income $428,000 $828,000
Less - treasury stock $1,684
Less - cash dividend $342,000 ($343,684)
Closing balance $484,316
3. Stockholders Equity Section of the Balance Sheet
Particular Amount ($)
Common stock $900,000
Add - Paid in capital in excess of par-common stock $70,000
Total contributed capital $970,000
Add - Retained earnings $484,316
Total equity of stockholders 1,454,316
This answer provides the necessary journal entries for Kohler Corporation's 2017 transactions and prepares a statement of retained earnings and the stockholders' equity section for December 31, 2017. It details changes in common stock, paid-in capital, retained earnings, and treasury stock transactions. The final stockholders' equity is calculated based on these activities.
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $900,000
Paid-in capital in excess of par value, common stock $70,000
Retained earnings $400,000
Total stockholders' equity $1,370,000
In 2017, several transactions affected its stockholders’ equity accounts. Below are the journal entries for each transaction:
Journal Entries
Jan. 1: Purchased 4,500 shares of its own stock at $15 cash per share.Statement of Retained Earnings
For the year ended December 31, 2017
Retained Earnings, January 1, 2017: $400,000
Add: Net Income $428,000
Less: Dividends ($324,000)
Retained Earnings, December 31, 2017: $504,000
Stockholders' Equity Section
As of December 31, 2017:
Common Stock $900,000
Paid-in Capital in Excess of Par Value $70,000
Retained Earnings $504,000
Total Stockholders' Equity $1,474,000
Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $120,000 Sales returns and allowances 900 Sales discounts 650 Merchandise inventory, January 1 35,000 Purchases during the period 77,600 Purchases returns and allowances during the period 4,100 Purchases discounts taken during the period 2,300 Freight-in on merchandise purchased during the period 1,250 Merchandise inventory, December 31 32,000 Determine the gross profit.
Answer:
$43,000
Explanation:
The gross profit is the difference between the sales revenue and the cost of good sold. Net sales is the sales less returns and allowances. Similar to net sales is net purchases which is the gross purchase net the allowances and returns.
Net sales
= $120,000 - $900 - $650
= $118,450
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
net purchases = $77,600 - $4100 - $2300 + $1250
= $72,450
therefore,
$35000 + $72,450 - cost of goods sold = $32000
Cost of goods sold = $35000 + $72,450 - $32000
= $75,450
Gross profit = $118,450 - $75,450
= $43,000
On January 1, 2018, Nana Company paid $100,000 for 8,000 shares of Papa Company common stock. The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company. Papa reported net income of $52,000 for the year ended December 31, 2018. The fair value of the Papa stock on that date was $45 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2018
Answer:
$360,000
Explanation:
As per the data given in the question,
Nana company paid = $10,000
Number of share = 8,000
Ownership in Papa company = 10%
Net Income = $52,000
Value = $45 per share
The amount will be reported in balance sheet of Nana company for the investment in Papa company = Value × Number of shares
= $45 × 8000 share
= $360,000
Show all your work. Indicate clearly the methods you use, because you will be scored on the correctness of your methods as well as on the accuracy and completeness of your results and explanations. At a financial institution, a fraud detection system identifies suspicious transactions and sends them to a specialist for review. The specialist reviews the transaction, the customer profile, and past history. If there is sufficient evidence of fraud, the transaction is blocked. Based on past history, the specialist blocks 40 percent of the suspicious transactions. Assume a suspicious transaction is independent of other suspicious transactions. (a) Suppose the specialist will review 136 suspicious transactions in one day. What is the expected number of blocked transactions by the specialist
Answer:
54.4
Explanation:
According to the scenario, computation of the given data are as follows:-
We can calculate the Expected Number of Blocked Transactions by using following formula:-
Probability of the specialist blocked the suspicious transactions(P) = 40%
= 40/100 =0.40
Number of the suspicious transactions reviewed(N) = 136
Expected Number of Blocked Transactions by the Specialist = P × N
= 0.40 × 136
= 54.4
Suppose the specialist will review 136 suspicious transactions in one day.
The expected number of blocked transactions by the specialist will be 54.4.
The expected number of blocked transactions is calculated using following
below:
Probability of the specialist blocked the suspicious transactions (P) is 40% = 40/100 =0.4The number of suspicious transactions reviewed(N) = 136Therefore the expected Number of Blocked Transactions by the Specialist
= P × N
= 0.40 × 136
= 54.4.
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Simentec Inc., a tech support company, hasover 150 employees working infive countries. The company allows workers to work from anywhere, andvirtual meetings are the primary means of communication across the company.Simentec is a _________ structure—one whose members are geographically apartand work using information technology. It appears to customers as a single, unified organization with a real physical location.
Answer:
Virtual
Explanation:
A virtual structure refers to an organizational structure in which the employees are located in different places and work using the technology available like computers, e-mail and phone to complete their tasks and they achieve a strong cooperation between their members to work as a single entity. According to this, the answer is that Simentec is a virtual structure because the employees work from anywhere using virtual meetings to communicate and it appears as a unified organization.
Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.80 per hour. During August, Delmar Inc. paid its workers $147,250 for 16,500 hours. Delmar Inc. produced 8,600 widgets during August. a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Labor standards are 2.0 hours per widget at $8.80 per hour.
During August, Delmar Inc. paid its workers $147,250 for 16,500 hours.
Delmar Inc. produced 8,600 widgets during August
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (8,600*2 - 16,500)*8.8
Direct labor time (efficiency) variance= (17,200 - 16,500)*8.8
Direct labor time (efficiency) variance= $6,160 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 147,250/16,500= $8.92
Direct labor rate variance= (8.8 - 8.92)16,500
Direct labor rate variance= $1,980 unfavorable
Cullumber Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement? Sales revenue $ 1100000 Cost of goods sold 617000 Salaries and wages expense 80400 Depreciation expense 119000 Dividend revenue 89500 Utilities expense 10600 Discontinued operations loss 99100 Interest expense 19200
Answer:
$101,520
Explanation:
Income statement will be made as follows:
$
Sales Revenue 1100000
Less: COGS (617000)
Gross Profit 483000
Less: Salaries & Wages (80400)
Less: Depreciation exp. (119000)
Less: Utilities exp. (10600)
Less: Interest expense (19200)
Earning before tax 253800
Less: Tax(40%) (101520)
Hope this helps.
Good luck buddy.
Final answer:
The income tax expense for Cullumber Company is calculated by applying the 40 percent tax rate to its taxable income, which is deduced by subtracting all allowable expenses from its sales revenue.
Explanation:
The question asks about calculating the income tax expense for Cullumber Company that will be reported on its income statement. The company has a fixed 40 percent tax rate. To calculate the income tax expense, we need to determine the company's taxable income. The taxable income is obtained by subtracting all allowable deductions, including the cost of goods sold (COGS), salaries and wages, depreciation, utilities, and interest expenses, from the sales revenue. Dividend revenue is generally considered an addition to income and the discontinued operations loss can be deducted.
Income tax expense is then calculated by applying the 40 percent tax rate to the taxable income. In this particular situation, specific calculations are not provided, as the student is supposed to use the given pre-tax amounts to find the correct taxable income and then apply the tax rate to find the income tax expense.
The effective tax rate and understanding of how income taxes work for corporations is crucial in business education, especially for students in finance or accounting. The mentioned tax policies and effective tax rates provide a general context for how corporate incomes are taxed in practice.
What are two types of goods/services that lend themselves well to price competition
Final answer:
Goods or services well suited for price competition include generic groceries and basic apparel due to minimal product differentiation. Price competition leads firms to focus on offering the lowest possible prices to attract customers, especially in industries like airlines and electronics.
Explanation:
Two types of goods or services that lend themselves well to price competition are generic groceries and basic apparel. These industries have minimal product differentiation, leading to competition primarily on price. Within the grocery industry, items like sugar, flour, and bottled water are often seen as commodities where consumers are likely to choose the lowest-priced option. Similarly, for basic apparel, such as white t-shirts or socks, there is little differentiation, which creates a focus on price competitiveness.
Price competition is a market condition where multiple businesses offer similar products to the same customers, leading to a focus on lowering prices to attract consumers. This dynamic is evident in industries where product differentiation is minimal, and goods are viewed as interchangeable from various suppliers. Examples include airlines and electronics, where companies vigorously compete on price, sales, and discounts to draw customers.
Finally, it's worth noting that strong competition can also exist when the public sector competes with the private sector for the provision of goods and services, as in the case of public and private schools or hospitals. However, the intensity of competition might differ due to various factors, such as regulation and funding.
Quantitatively, how important is international trade to the United States relative to the importance of trade to other nations? What country is the United States’ most important trading partner, quantitatively? With what country does the United States have the largest trade deficit?
Answer:
Quantitatively, the significance of trade to the U.S is extra than it is for the other nations. The United states has the very best collective size of trades (imports and exports). It is also third in price of exports listed, next to China and European nation. The U.S most significant commerce companion, in relations of facts, is Canada. Virtually 20% of exported product from the America were to Canada in 2009, and 15% of imported product came from Canada during the year. The America has the most important deficit with China. A deficit happens once the worth of imports surpass the importance of exports. In 2009, the America had a $220 billion deficit with China.hums 202 Which of the following describes a consumer installment loan? A. A loan you get based on the tax refund that you expect to receive. B. A loan that is repaid in equal monthly payments for a specific period of time, usually several years. C. A loan where you have to promise to give the bank your assets if you do not repay the loan. D. A loan for consumer goods where you own the item(s) at the end of the payment period.
Final answer:
A consumer installment loan is repaid in equal monthly payments over a set time frame and can be used for personal expenses. It differs from secured loans like mortgages or auto loans and can be unsecured with no collateral necessary.
Explanation:
A consumer installment loan is best described as a loan where the borrower repays the principal and interest in equal monthly payments over a set period of time. This type of loan can be used to finance various personal expenses such as purchasing a vehicle, appliances, or an education. Unlike some loans that may require collateral (secured loans) like mortgages or auto loans, consumer installment loans can also be unsecured, meaning no collateral is required. When choosing a loan, it's vital to understand the terms, including the payback period, the interest rate, and whether the loan is secured or unsecured.
The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 1,029,000 Net income for the year 335,000 Cash dividends declared for the year 63,000 Retained earnings balance at the end of the year 1,637,000 Cash dividends payable at the beginning of the year 14,200 Cash dividends payable at the end of the year 17,300 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows
Answer:
$59,900
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
The movement in the dividend payable account may be expressed mathematically as
Opening balance + Dividend declared - Dividend paid = Closing balance
$14,200 + $63,000 - Dividend paid = $17,300
Dividend paid
= $14,200 + $63,000 - $17,300
= $59,900
Answer:
$59,900
Explanation:
Base on the scenario been described in the question, we can use the following method to solve the given problem
The movement in the dividend payable account is given as
Opening balance + Dividend declared - Dividend paid = Closing balance
Substituting the values we have
$14,200 + $63,000 - Dividend paid = $17,300
Making dividend paid the subject of formula we have
Dividend = $14,200 + $63,000 - $17,300
Dividend paid = $59,900
As the answer
Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Allen uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 1 pound per unit; $ 11 per pound Direct labor: 4 hours per unit; $ 17 per hour Allen produced 2 comma 000 units during the quarter. At the end of the quarter, an examination of the direct materials records showed that the company used 7 comma 500 pounds of direct materials and actual total materials costs were $ 99 comma 900. What is the direct materials efficiency variance?
Answer:
Direct material quantity (efficiency) variance= $60,500 unfavorable
Explanation:
Giving the following information:
Standards:
Direct materials: 1 pound per unit; $ 11 per pound
Allen produced 2,000 units during the quarter.
Direct material used= 7,500 pounds
To calculate the direct material efficiency variance, we need to use the following formula:
Direct material quantity (efficiency) variance= (standard quantity - actual quantity)*standard price
standard quantity= 2,000*1= 2,000 pounds
Direct material quantity (efficiency) variance= (2,000 - 7,500)*11
Direct material quantity (efficiency) variance= $60,500 unfavorable
It is unfavorable because the company used more materials that estimated to produce 2,000 units.
In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus period expenses, and plus overhead. At the end of last year the broad cost leader Baldwin had an Elite product Buzz. Use the Inquirer's Production Analysis to find Buzz's production cost, (labor+materials). Exclude possible inventory carrying costs. Assume period expenses and overhead total 1/2 of their production cost. What is the minimum price the product could have been sold for to cover the unit cost, period expenses, and overhead? Select: 1 $32.17 $10.72 $35.00 $21.45
The minimum price to sell a product at a profit should cover the unit production cost (labor + materials) and half of the production cost, assumed to be period expenses and overhead. Without specific figures, a precise answer can't be given, but the described method helps in calculating the minimal selling price.
Explanation:The information provided in the question doesn't contain enough specific details to calculate the minimum price the product Buzz could have been sold for to cover the unit cost, period expenses, and overhead. However, the calculation procedure would involve adding the unit production cost (labor + materials) and half of the production cost as it's assumed to be period expenses and overhead. The resultant figure would give the minimum price at which the product would need to be sold to just cover these costs.
For example, if the unit cost to produce Buzz is $10 and the period expenses and overhead total up to 1/2 of the production cost. Then, the minimum sale price would be unit cost ($10) + 0.5 unit cost ($5) = $15. This is just an example using hypothetical figures as we don't have the actual data.
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Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $65. If Summit Products requires a 25% return on sales to undertake production, what is the target cost for the new widget?
Answer:
$60
Explanation:
The computation of the target cost for the new widget is shown below:
Target selling price = $80
return on sales = 25%
Based on this
Profit per unit = 80 × 25%
= $20
Now
Target cost = Target selling price - Profit per unit
= $80 - $20
= $60
By deducting the profit per unit from the target selling price we can get the target cost and the same is applied and shown above i.e in the computation part
Final answer:
The target cost for the new widget, considering Summit Products' requirement for a 25% return on sales, is $67.50. However, since the current production cost is $65, which is below the target cost, the widget production is already meeting the company's profit criteria.
Explanation:
To calculate the target cost for the new widget, we first need to understand Summit Products' desired return on sales. They require a 25% return on the sales price of $90. To find the target cost, we subtract this desired return from the sales price.
The calculation is as follows:
Sales price per widget: $90Desired return on sales (25% of $90): $90 * 0.25 = $22.50Target cost: $90 - $22.50 = $67.50However, given that the question states the current cost to produce the widget is $65, which is below the calculated target cost, it implies that the production is already within Summit's required return on sales. Therefore, production of the widget at the current cost is feasible and profitable as per the company's financial criterion.
All of the following are true regarding variance investigation except: a.every variance is investigated. b.managers must consider whether a variance will recur. c.it is difficult to assess the costs and benefits of variance analysis on a case-by-case basis. d.variances are not investigated unless they are large enough to be of concern. e.the investigation should be undertaken only if the anticipated benefits are greater than the expected costs.
Answer:
The option that is not true about variance investigation is A) every variance is investigated.
Explanation:
Every business projection and forecast is made based on speculation. These estimates in theory vary with what is obtainable in practice. Therefore, variance is inevitable.
It is not every variance that is investigated. Variances are not investigated unless they are large enough to be of concern and the investigation should be undertaken only if the anticipated benefits are greater than the expected costs.
Variance investigation models are concerned with decisions to investigate the cause of particular variances and in particular, to distinguish significant deviations from random fluctuations.
City is a product of the Chester company which is primarily in the Nano segment, but is also sold in another segment. Chester starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 700 of units of City are sold in the Nano segment. If the competitive environment remains unchanged what will be the City product’s demand next year (in 000’s)?
Answer:
700 units
Explanation:
Since it is given that the 700 units if city are sold to the nano segment and it is also mentioned that the competitive environment remains unchanged so the city demand of the product for the next year is also remains same as there is no change in the competitive environment
Hence, the demand fro the product in the next year is 700 units
Chester company's City product's demand next year can be predicted to remain at the current level of 700 units if the competitive environment stays the same. Forecasting depends on production and cost conditions and market structure. The concept of economies of scale and the analysis of the LRAC curve are important in understanding these market dynamics.
Explanation:To determine the demand for Chester company's City product next year, given that all competitors' policies remain the same, we would start by looking at the current sales figures, which are 700 units in the Nano segment. If the competitive environment, including market shares and consumer behavior, does not change, it is reasonable to forecast that the product’s demand will remain the same, meaning Chester can expect to sell a similar amount of units next year. The assumptions on market structure, competitive environment, and production costs are critical for such forecasting.
When looking at microeconomic questions similar to this, the decision to produce more or fewer goods hin_ges on production and cost conditions as well as the market's structure. For instance, changes in the competitive landscape, such as a price increase for running shoes or a government subsidy for green technologies, would need to be considered when forecasting demand and profits for the coming year.
Market structure is crucial; a key question to ask is how many competitors are in the market and what their capacities are. For instance, if the market can only support a certain number of units before reaching saturation, producing beyond that point would lead to excess supply and potential losses. This is tied into the concept of economies of scale and the intersection of market demand with the long-run average cost (LRAC) curve, which can predict whether a company will be able to sell all its products at a profitable price.
A partnership has the following capital balances: Allen, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 Burns, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Costello, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 Profits and losses are split as follows: Allen (20 percent), Burns (30 percent), and Costello (50 percent). Costello wants to leave the partnership and is paid $100,000 from the business based on provisions in the articles of partnership. If the partnership uses the bonus method, what is the balance of Burns’s capital account after Costello withdraws?
Answer:
$24,000
Explanation:
Allen, Capital $60,000 (20% profits)
Burns, Capital $30,000 (30% profits)
Costello, Capital $90,000 (50% profits)
To determine the balance in Burns's account using the bonus method, we must first determine the bonus to be allocated between Burns and Allen:
bonus = amount paid to Costello - Costello's basis = $100,000 - $90,000 = $10,000
now the bonus ($10,000) must be allocated in the same way as profits or losses:
Allen, Capital ⇒ 20% profits
Burns, Capital ⇒ 30% profits
total 50%, so Burns should be allocated 3/5 of the bonus = $10,000 x 3/5 = $6,000
Burns's capital account = original capital balance - allocated bonus = $30,000 - $6,000 = $24,000
When Costello withdraws from the partnership with a payout of $100,000, Burns's capital account is adjusted to $27,000 after accounting for his share of the bonus deduction using the bonus method.
The question revolves around the withdrawal of a partner from a partnership and the use of the bonus method to adjust capital accounts after the withdrawal. The partnership consists of Allen, Burns, and Costello, with capital balances of $60,000, $30,000, and $90,000, respectively. Profits and losses are shared at rates of 20%, 30%, and 50% respectively. When Costello withdraws and receives $100,000, exceeding his capital account balance by $10,000, this excess amount is considered a bonus which is absorbed by the remaining partners based on their profit and loss ratio. Since Burns has a 30% share in profits and losses, he absorbs 30% of the $10,000 bonus, equating to a $3,000 deduction from his capital account. Therefore, after Costello's withdrawal, Burns's capital account is adjusted to $27,000.
The five forces of competitive pressures do not include 53) A) the bargaining power of suppliers and seller-supplier collaboration. B) the power and influence of social/demographic trends. C) the threat of new entrants into the market. D) the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. E) the attempts of companies in other industries to win customers over to their own substitute products.
Answer:
B) the power and influence of social/demographic trends.
Explanation:
Porters five forces describe forces that exists in an industry and shapes that industry.
They include:
1. Competition among firms in the industry
2. Potential of new firms entering into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
I hope my answer helps you
All of the above are part of the five forces of competitive pressure except B) the power and influence of social/demographic trends.
According to Michael Porter:
There are 5 forces of competitive pressure in an industry The forces of pressure dictate how successful a business will beAll options above are part of those pressures with the fifth being the power of buyers. The second option is not one of those forces but can also be quite influential.
In conclusion, option B is correct.
Find out more about the competitive forces at https://brainly.com/question/24881157.
Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor.
In 2015, GII estimated the following standard costs for one of their major products, the 30-gallon heavy-duty plastic container.
Budgeted quantity Budgeted price
Direct materials 0.30 pounds $20 per pound
Direct labor 0.20 hours $12 per hour
During July, GII produced and sold 3, 000 containers using 1.000 pounds of direct materials at an average cost per pound of $19 and 625 direct manufacturing labor hours at an average wage of $11.75 per hour.
1. The direct material price variance during July is .
a. $1,100 unfavorable
b. $1,100 favorable
c. $1,000 unfavorable
d. $2,000 unfavorable
2. The direct material efficiency variance during July is .
a. $ 1,000 unfavorable
b. $1,100 favorable
c. $2,000 unfavorable
d. $1,000 favorable
3. The direct manufacturing labor price variance during July is _.
a. $375.00 unfavorable
b. $156.25 favorable
c. $243.75 favorable
d. $ 1, 000 unfavorable
4. The direct manufacturing labor efficiency variance during July is .
a. $300.00 unfavorable
b. $156.25 favorable
c. $143.75 favorable
d. $131.75 unfavorable
Answer and Explanation:
1. The computation of the material price variance is shown below:
= Actual Quantity × (Standard Price - Actual Price)
= 1,000 × ($20 - $19)
= $1,000 favorable
2. The computation of the direct material efficiency variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $20 × (3,000 pounds × 0.30 pounds - 1,000)
= $20 × (900 - 1,000)
= $2,000 unfavorable
3.The computation of the labor price variance is shown below:
= Actual Hours × (Actual rate - standard rate)
= 625 × ($11.75 per hour - $12 per hour)
= 625 × $0.25 per hour
= $156.25 favorable
4. The computation of the labor efficiency variance is shown below:
= Standard Rate × (Actual hours - Standard hours)
= $12 per hour × (625 hours - 3,000 containers × 0.20 hours)
= $12 per hour × 25 hours
= $300 unfavorable
If the standard cost is more than actual one so it would be favorable variance e and if the actual cost is more than the standard one so it would be unfavorable variance
Final answer:
The direct material price variance is $1,000 favorable, the direct material efficiency variance is $2,000 unfavorable, the direct labor price variance is $156.25 favorable, and the direct labor efficiency variance is $300 unfavorable.
Explanation:
To calculate the variances, we'll have to apply standard costing methods.
Direct Material Price Variance
The formula for this is (Actual Price - Standard Price) x Actual Quantity. Given the actual price is $19 and the standard price is $20, for 1,000 pounds, the direct material price variance is ($19 - $20) x 1,000 = -$1,000. This result is favorable since the actual price is less than the standard price.
Direct Material Efficiency Variance
This is calculated by (Actual Quantity - Standard Quantity) x Standard Price. The standard quantity for 3,000 containers is 3,000 x 0.30 pounds = 900 pounds. So, the variance is (1,000 - 900) x $20 = $2,000 which is unfavorable because more materials were used than the standard.
Direct Manufacturing Labor Price Variance
The formula is (Actual Hourly Rate - Standard Hourly Rate) x Actual Hours Worked. Substituting the values, we get ($11.75 - $12) x 625 = -$156.25, which is a favorable variance since the actual wage rate is less.
Direct Manufacturing Labor Efficiency Variance
The formula is (Actual Hours - Standard Hours) x Standard Rate. Standard hours for 3,000 containers are 3,000 x 0.20 hours = 600 hours. The variance is (625 - 600) x $12 = $300, which is unfavorable as more hours were worked than the standard.
Big Boy Burgers (BBB) is an American fast food restaurant chain that has franchises around the world. Recently, BBB managers have been concerned about protecting the firm’s intellectual property, which includes the recipes for its unique burger sauces and specialty burger buns. Although BBB has never experienced a theft of intellectual property, the firm’s managers feel BBB should be more cautious. Managers are meeting with security and legal experts to discuss the options available to the firm which would protect BBB from future international problems.Which of the following questions would be more important for the experts to evaluate when determining how to ensure intellectual property protection for Big Boy Burgers?A) What should be the penalties for theft of the recipes for their unique burger sauces and specialty burger buns?B) Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?
C) What are the commonly counterfeited goods in the market?
D) How are BBB franchisees modifying recipes and menus to meet the needs and desires of customers in local markets?
Answer:
B) Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?
Explanation:
The question that "Is BBB partnering with ethical franchisees that have no intention of becoming BBB competitors in the future?" would be more important for the experts to evaluate when determining how to ensure intellectual property protection for Big Boy Burgers.
The managers and experts at BBB should ensure they are in partnership with ethical franchisees in order to protect the firm’s intellectual property, which includes the recipes for its unique burger sauces and specialty burger buns.
An unethical franchise would be much more concerned with gaining access to their business plans and strategies, so as to compete with them or even go as far as pushing them out of the fast food business.
Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 1.2 €/$. Dec 31, 2018: 0.6 €/$. Feb 1, 2019: 1.0 €/$. What was gross profit for 2018 and 2019, respectively?
Answer:
- $140, -$120.
Explanation:
Okay, we are given the following parameters in the question above;
The value of the product imported from German on Dec 1, 2018 = € 300, payable = 60 days, the value of the product in the US market = $400 in cash on Dec 15, 2018 and the exchange rate are; Dec 1, 2018: 1.2 €/$, Dec 31, 2018: 0.6 €/$, Feb 1, 2019: 1.0 €/$.
Therefore, in the year 2018 we have that;
Purchase cost = €300 × 1.2 = $360.
Sales = $400.
Thus, the exchange loss = (1.2 - 0.6) × 300 = $180.
Therefore, the net income = sales - purchase cost - exchange loss.
The net income = $(400 - 360 - 180) = - $140.
Also, In the year 2019 we have that;
Exchange gain = (0.6 - 1) × 300 = -120.
Therefore, net income = -$120
Under U.S. laws: A. Only private workers have the right to hold an election to choose what union they want to represent them, if any.B. Only public workers have the right to hold an election to choose what union they want to represent them, if any.C. Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.D. Only the employer has the right to hold an election to choose what unions they want to represent the workers within the organization, if any.
Answer:
C) Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.
Explanation:
An employee is generally not required to join a union even, in most cases if a union exists and it has an agreement with the employer regarding employees joining it, the most it can do is charge everyone the union fees. This means that the employees are required to pay union fees even if they do not want to join the union. Full union membership cannot be required.
Also, employees are free to decide in an election to what union they want to belong to, or if they want to belong to any type of union at all. E.g. most of the employees from foreign car manufacturers have chosen not to join the UAW union (Toyota, Honda, Mercedes Benz, BMW, etc.).
Elliott Corp.'s transactions for the year ended December 31, 2020 included the following: Purchased real estate for $1,250,000 cash which was borrowed from a bank. Sold available-for-sale securities for $1,000,000. Paid dividends of $1,200,000. Issued 500 shares of common stock for $500,000. Purchased machinery and equipment for $250,000 cash. Paid $900,000 toward a bank loan. Reduced accounts receivable by $200,000. Increased accounts payable $400,000. Elliott's net cash used in investing activities for 2020 was a. $1,500,000 b. $ 500,000 c. $ 750,000 d. $ 250,000
Answer:
b. $ 500,000
Explanation:
The computation of the net cash used in investing activities is shown below:
Cash flow from investing activities
Purchased real estate -$1,250,000
Purchased machinery and equipment -$250,000
Sold available-for-sale securities for $1,000,000
Net cash used by investing activities -$500,000
The negative sign represents the cash outflow and the positive sign represents the cash inflow and the same is to be considered
No More Pencils, Inc., disburses checks every two weeks that average $87,000 and take six days to clear. How much interest can the company earn annually if it delays transfer of funds from an interest-bearing account that pays 0.011 percent per day for these six days? Ignore the effects of compounding interest
Answer:
Interest $1,492.92
Explanation:
The company interest will be the amount of the checks multiplied by the number of days it will delay payment then multiply by the number of weeks that checks will be disbursed times the daily interest rate.
Interest = $87,000(6)(52 / 2)(.00011)
Interest =$522,000×26×0.00011
Interest = $1,492.92
Therefore $1,492.92 is the amount of interest that the company earn annually if it delays transfer of funds from an interest-bearing account that pays 0.011 percent per day for these six days.
Continental Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Continental Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved.
Transportation Costs Gross-Ton Miles
January $24,500,000 3,000,000
February 22,375,000 2,500,000
March 29,000,000 6,300,000
April 34,800,000 9,500,000
May 40,312,500 12,750,000
June 35,500,000 10,000,000
Determine the variable cost per gross-ton mile and the total fixed cost.
Using the high-low method, the variable cost per gross-ton mile for Continental Railroad is $1.775, and the total fixed cost is $17,937,500. This was calculated by identifying the highest and lowest activity levels and their associated costs.
Explanation:To determine the variable cost per gross-ton mile and the total fixed cost using the high-low method from the operating data provided by Continental Railroad, we identify the months with the highest and lowest activity levels, which are April (highest) and February (lowest). The difference in gross-ton miles between these months is 9,500,000 - 2,500,000 = 7,000,000 gross-ton miles. Similarly, the difference in transportation costs is $34,800,000 - $22,375,000 = $12,425,000.
To calculate variable cost per gross-ton mile, divide the difference in costs by the difference in gross-ton miles: $12,425,000 ÷ 7,000,000 = $1.775. Hence, the variable cost is $1.775 per gross-ton mile. Next, to find the fixed costs, we calculate the total variable cost at the low activity level (February) by multiplying the variable cost per gross-ton mile by February's gross-ton miles: $1.775 * 2,500,000 = $4,437,500. Subtract this amount from the total cost of February to get the total fixed cost: $22,375,000 - $4,437,500 = $17,937,500. Therefore, the total fixed cost is $17,937,500.
The variable cost per gross-ton mile is $1.75, and the total fixed cost is $18,000,000.
To estimate the fixed and variable components of transportation costs using the high-low method, we need to identify the months with the highest and lowest activity levels (gross-ton miles). We then use these data points to calculate the variable cost per gross-ton mile and the total fixed cost.
Step 1: Identify the High and Low Activity Levels
From the given data:
Highest activity: May (12,750,000 gross-ton miles, $40,312,500 cost)
Lowest activity: February (2,500,000 gross-ton miles, $22,375,000 cost)
Step 2: Calculate the Variable Cost per Gross-Ton Mile
The high-low method formula for the variable cost per unit is:
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = \frac{\text{Cost at High Activity} - \text{Cost at Low Activity}}{\text{High Activity Level} - \text{Low Activity Level}} \][/tex]
Substituting the values:
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = \frac{40,312,500 - 22,375,000}{12,750,000 - 2,500,000} \][/tex]
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = \frac{17,937,500}{10,250,000} \][/tex]
[tex]\[ \text{Variable Cost per Gross-Ton Mile} = 1.75 \][/tex]
Step 3: Calculate the Total Fixed Cost
To find the fixed cost, we use the total cost equation at either the high or low activity level:
[tex]\[ \text{Total Cost} = (\text{Variable Cost per Gross-Ton Mile} \times \text{Gross-Ton Miles}) + \text{Fixed Cost} \][/tex]
Using the high activity level data:
[tex]\[ 40,312,500 = (1.75 \times 12,750,000) + \text{Fixed Cost} \]\[ 40,312,500 = 22,312,500 + \text{Fixed Cost} \]\[ \text{Fixed Cost} = 40,312,500 - 22,312,500 \]\[ \text{Fixed Cost} = 18,000,000 \][/tex]