A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%.

a. Calculate the total additional sales revenue needed to support the desired net income after tax.
b. Calculate the total sales revenue required to cover fixed costs, tax, and net income after tax.

Answers

Answer 1

Answer:

Explanation:

Answer:

A) Total Additional Sales Revenue =

B) Total Sales Revenue =

Explanation:

Requirement A

We know, according to the break-even formula, Target Profit = Target Sales - Variable expense - Fixed Cost - Tax

(according to the net income after tax)

As we need to find target sales, we do not have the variable expense and as the tax is based on the target profit, the new equation is -

Target Profit = (Sales - Variable expense - Fixed Expense) (1 - Tax Rate)

Target Profit = (Sales - Sales × 44% - $188,000) × (1 - 0.28)

$50,400 = (Sales - 0.44 Sales - $188,000) × 0.72

or, Sales - 0.44 Sales - $188,000 = $50,400 ÷ 0.72

or, Sales - 0.44 Sales = $70,000 + $188,000

or, 0.56 Sales = $258,000

Sales = $258,000 ÷ 0.56

Sales = $460,714 (Approx)

Therefore, the company does not need to sell more to cover the tax rate. The sale of the company will decrease by $1,286.

Req. B

The company's total sales revenue will be $460,714 to cover fixed costs, variable costs, and net income after tax.

It can be showed under the following calculation

Sales $460,714

Less: Variable expense (44% of sales) $(202,714)

Contribution Margin $258,000

Less: Fixed Expense $(188,000)

Net Income before tax $70,000

Less:Tax (70,000*28%) $(19,600)

Net income after tax = $50,400


Related Questions

Josh Turner has done some research and has found that the population in the U.S. is aging, and this means that there will be an increased need for health care professionals in the future. This is an example of __________ influencing jobs in the future.

Answers

Answer:

demographic trends

Explanation:

Demographic trends -

Demography refers to the study of structure , size , distribution of the population , is referred to as demographic trends .

It is a type of statistical study , specifically humans .

All the trends about the human population is known as demographic trends .

Various factors like , life death , migration , aging etc. , is included in the demographic trends .

Hence , from the given scenario of the question ,

Then correct answer is demographic trends .

Which of the following revelations from a different research studies came to be known as the Hawthorne effect? a. Group members subjecting those workers who violate the group norms to sanctions. b. Productivity increasing regardless of the level of illumination in the workplace. c. Workers concealing the true potential efficiency of a work system to protect their interests. d. Workers productivity being affected more by the attention received from researchers than by the work setting. e. Employees in a ""no-talking"" workplace developing ways of talking to one another out the sides of their mouths.

Answers

Answer:

D) Workers productivity being affected more by the attention received from researchers than by the work setting.

Explanation:

The Hawthorne effect is also known as the observer effect. It is a change or modification in an aspect of an individual's behaviour in response to his or her awareness of being observed. One of the revelations that can be known as the Hawthorne effect is workers productivity being affected more by the attention received from researchers than by the work setting.

Alcove Studio is a designer boutique that sells the most recent collections from top designers. Since it sells exclusive clothing, customers from all over the world are willing to pay exorbitant prices, and place orders months in advance. Alcove Studio's goods are examples of _____.

A.specialty goods
B.organizational goods
C.impulse goods
D.convenience goods

Answers

Answer:

A.specialty goods 

Explanation:

A specialty good is an Item that is unique and it makes people take extra efforts to acquire them.

convenience goods require little or no efforts to buy them.

Impulse goods are goods people buy on impulse.

I hope my answer helps you

Alcove Studio offers specialty goods, which are unique items that consumers are willing to make a special effort to purchase, including luxury and Veblen goods with high exclusivity and demand by fashion-conscious customers. Option A is correct.

Alcove Studio's goods are examples of specialty goods. Specialty goods are items that have unique characteristics and brand identity for which a significant group of buyers is willing to make a special purchase effort.

Given that Alcove Studio sells the most recent collections from top designers, its exclusive clothing likely fits into the category of luxury goods or Veblen goods, which are characterized by exclusivity and high demand among consumers who seek the latest in fashion and are willing to pay high prices for them.

Consumers of specialty goods, like those at Alcove Studio, are often seeking customer intimacy, valuing the specific features and benefits of the products over price and convenience. These goods are distinct from organizational goods, impulse goods, and convenience goods which are intended for different buying motives and situations.

Organizational goods are purchased by companies for further processing or for use in their operations, impulse goods are bought without prior planning, typically prompted by convenience and accessibility, and convenience goods are those customers buy regularly and with minimal effort.

According to the World Bank, E.U. remittances to Senegal were $ 1,005,728,139 in 2015. Senegal's gross domestic product (GDP) was $ 13,779,570,750 in 2015. What percentage of Senegal's 2015 GDP is represented by the remittances? Round your answer to one place after the decimal.

Answers

Answer:

7.3%

Explanation:

To determine the percentage of Senegal's 2015 GDP that is represented by the remittances you have to divide the remittances by Senegal's GDP:

Remittances: $ 1,005,728,139

GDP: $ 13,779,570,750

$ 1,005,728,139/$ 13,779,570,750= 0.073*100= 7.3%

The percentage of Senegal's 2015 GDP that is represented by the remittances is 7.3%.

proposed new project has projected sales of $124,000, costs of $58,000, and depreciation of $12,700. The tax rate is 34 percent. Calculate operating cash flow using the four different approaches

Answers

Answer:

Please see explanation

Explanation:

The four different approaches for calculating operating cash flows are given as follows:

1.Operating cash flow=Earning before tax+ Depreciation expense – Tax expense

=($124,000-$58,000-$12,700)+$12,700-[($124,000-$58,000-$12,700)*34%]

=$53,300+$12,700-$18,122

=$47,878

2.Operating cash flow=Sales-expenses other than depreciation-Tax expense

=$124,000-$58,000-[($124,000-$58,000-$12,700)*34%]

=$124,000-$58,000-$18,122

=$47,878

3.Operating cash flow=(Sales-expenses other than depreciation)*(1-tax rate)+tax rate*depreciation

=($124,000-$58,000)*(1-0.34)+0.34*$12,700

=$43,560+$4,318

=$47,878

4.Operating cash flow=Net income+depreciation

=Sales-costs-depreciation-tax expense+depreciation

=$124,000-$58,000-$12,700-$18,122+$12,700

=$47,878

05) Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What are the effects of each of the following on output, the expected real interest rate, and the current price level? (a) a temporary increase in taxes (b) a reduction in the effective tax rate on capital (c) an increase in expected inflation

Answers

Answer:

Explanation:

a. A temporary increase in government purchases would result in a  reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.

This would: make output to remain unchanged, real interest to increase and current price level to increase as well.

b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.

C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.

d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.

The general principle on setting transfer prices that are in the organization's best interests is: A) outlay cost plus opportunity cost of the resource at the point of transfer. B) variable costs plus opportunity cost of the resource at the point of transfer. C) lost contribution margin less

Answers

Answer:

The correct answer is A) outlay cost plus opportunity cost of the resource at the point of transfer.

Explanation:

In the commercial operations of companies, prices are usually set so that companies obtain a sufficient profit margin to carry out their exploitation cycle, obtain profitability for shareholders and at the same time be competitive in the market.

However, there are certain operations in which the intervenors can manipulate the sale prices of the goods or services they provide, since these transactions are carried out between entities or related persons. In these cases, a company can sell to another at a different price than the market, either higher or lower, so that the transfer price would not follow the rules of the free market, regulated by supply and demand, being able to transfer benefits or losses artificially from one company to another.

To avoid the alteration of prices between entities or related persons, transfer prices are used, whose fundamental principle is that the price to be fixed in transactions between related parties must be the market value (arm's length principle). This principle has been adopted by most of the world's economies and, in particular, by the countries that make up the Organization for Economic Cooperation and Development (OECD), which has established guidelines and doctrine on transfer pricing.

Therefore, companies that belong to the same group or have another type of relationship, should set prices in the same way as they would in normal conditions between independent parties, or what is the same, according to market value.

The pricing between related parties must also be documented, since the Tax Administration may adjust the transfer prices if it considers that they differ from those that would occur between independent parties.

Market size and growth of the total U.S. beer market was estimated to be around $106 billion. The total economic impact of the beer market is estimated to be 2 percent of the total U.S. GDP.a. True.b. False.

Answers

Answer:false

Explanation:

The current gdp of us is estimated to about $21427.1 billion.

So if beer market is estimated to be $106 billion, the percentage is ($106/$21427.1)*100

= 0.004947*100

=0.4947%

0.497% is not up to 2%

Robusta Coffee Importers sold 6 comma 000 units in October at a sales price of $ 35 per unit. The variable cost is $ 15 per unit. The monthly fixed costs are $ 10 comma 000. What is the operating income earned in​ October?

Answers

Answer:

Operating Income= $110,000

Explanation:

Giving the following information:

Robusta Coffee Importers sold 6,000 units in October at a sales price of $35 per unit. The variable cost is $ 15 per unit. The monthly fixed costs are $10,000.

The operating income is the difference between the contribution margin and the fixed costs:

Contribution margin= selling price - unitary variable cost

Operating income= Total contribution margin - fixed costs

OI= 6,000*(35 - 15) - 10,000= $110,000

Operating income earned in October is $110,000, calculated as total revenue minus total variable costs and fixed costs.

To calculate the operating income earned in October, we need to determine the total revenue and the total expenses.

Step 1:

Calculate total revenue:

Total revenue = Sales price per unit * Number of units sold

Total revenue = $35/unit * 6,000 units = $210,000

Step 2:

Calculate total variable costs:

Total variable costs = Variable cost per unit * Number of units sold

Total variable costs = $15/unit * 6,000 units = $90,000

Step 3:

Calculate total fixed costs:

Total fixed costs = $10,000

Step 4:

Calculate operating income:

Operating income = Total revenue - Total variable costs - Total fixed costs

Operating income = $210,000 - $90,000 - $10,000

Operating income = $110,000

Therefore, the operating income earned in October is $110,000.

The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,300 units, 1/10 complete Materials $18,000 Units transferred out 54,900 Conversion costs 14,760 $32,760 Units started 50,600 Materials 215,945 Ending work in process 11,000 units, 1/5 complete Labor 67,500 Overhead 83,330 Prepare a production cost report for the Welding Department for the month of February.

Answers

Final answer:

To prepare a production cost report for the Welding Department, calculate equivalent units, cost per equivalent unit, and assign costs to units transferred out and ending work in process.

Explanation:

To prepare a production cost report for the Welding Department for the month of February, we need to calculate the equivalent units of production for both materials and conversion costs, as well as determine the cost per equivalent unit. First, we calculate the equivalent units of production for materials by adding the units started and the units in ending work in process, and multiplying it by the percentage of completion. Next, we calculate the equivalent units of production for conversion costs in the same way.

Then, we calculate the cost per equivalent unit by dividing the total manufacturing costs by the total equivalent units of production. Finally, we calculate the costs assigned to both the units transferred out and the ending work in process by multiplying the cost per equivalent unit by the respective number of equivalent units of production.

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You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 20 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are 0.69, 1.76, 1.61, and 1.02, respectively. What is the portfolio beta

Answers

Answer:

The portfolio beta is 1.2

Explanation:

Portfolio Beta is the average bet of the all investments in portfolio. This beta is calculated on the basis of weightage of each investment in the portfolio.

Portfolio Beta = ( Beta of Stock Q x Weightage of Stock Q ) + ( Beta of Stock R x Weightage of Stock R ) + ( Beta of Stock S x Weightage of Stock S ) + ( Beta of Stock T x Weightage of Stock T )

Portfolio Beta = ( 0.69 x 25% ) + ( 1.76 x 20% ) + ( 1.61 x 20% ) + ( 1.02 x 35% )

Portfolio Beta = 0.1725 + 0.352 + 0.322 + 0.357 = 1.2035

5. Consider the following semiannual bonds: Bond C%(per year) Maturity(years) A 0% 15 B 0% 9 C 5% 15 D 11% 9 a. What is the percentage change in the price of each bond if its YTM falls from 5% to 4%

Answers

Answer:

The percentage changes in the price of the bonds are as follows:

Bond A 16%

Bond B 9%

Bond C 11%

Bond D 7%

Explanation:

Find detailed calculation in the attached.

Please note the line color-coded blue.

You are the IT project leader for Baker Manufacturing Company and have been assigned the task of leading a project team to design and implement a new global IT infrastructure between the Baker Manufacturing Company data centers.
Identify who should be on the project team and describe why you chose each member. Include references to support your comments in APA format.

Answers

Answer:

to design and implement a new global IT infrastructure between the Baker Manufacturing Company data centers, I will need a Business  Analyst , web developer, Software Engineer , Data processor, Front end and back end developers, UI/UX personnel, Cyber security specialist, networking engineer, maintenance engineer, testers, marketers and Administrative officer.

Explanation:

The personnel outlined above will fit into the following sub units that will facilitate a seamless leadership on my end.

Production: To design and create a new global IT infrastructure, the services of a web developer, software engineer, front end and back end developers, UI/UX personnel will come in handy.Operations : the supporting activities that efficiently maintain the IT infrastructure will be handled by Data processor, cyber security specialist, networking engineer and maintenance engineer.Administration : to ensure implementation and evaluation of the business’s plans/operations, i will supervise the project with an administrative officer supporting me.Marketing/sales: After the first draft, Testers and marketers will be deployed to effectively generate qualified leads and give us feedback/evaluation before we can adopt the design and make it ready for presentation.

References:  (june 29, 2018 "the ideal structure for IT project team" https'//www.ciorsc/com)

You want to purchase a new motorcycle that costs $29,800. The most you can pay each month is $510 over the life of the 78-month loan. What is the highest APR that you could afford

Answers

Final answer:

To find the maximum APR for a loan of $29,800 to be repaid in 78 monthly installments of $510, you can use an APR calculator. However, the actual APR will depend on specific loan terms like whether the loan is compounded monthly or annually.

Explanation:

In this case, you are basically looking for the Annual Percentage Rate (APR) for a loan of $29,800 that you want to repay in 78 monthly installments of $510 each. Unfortunately, without additional information, such as whether the loan is compounded monthly or annually, it's impossible to provide a specific APR. However, you can use an APR calculator, which are readily available online, to find the highest APR you could afford given the specified loan amount, loan term, and monthly payment. Just remember that the lower the APR, the less you'll pay in interest over the life of the loan.

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The highest APR that you could afford to make the $510 monthly payment over 78 months for a $29,800 loan is approximately 9.5%.

To find the highest Annual Percentage Rate (APR) that you could afford for a motorcycle loan, given that you can pay $510 per month over a 78-month loan term, we can use the formula for calculating monthly loan payments:

[tex]\[ P = \frac{r \times PV}{1 - (1 + r)^{-n}} \][/tex]

Where:

- ( P ) is the monthly payment ($510 in this case).

- ( r ) is the monthly interest rate (APR divided by 12 months).

- ( PV ) is the present value or loan amount ($29,800 in this case).

- ( n ) is the number of months (78 months in this case).

We want to find the highest APR, which means finding the highest monthly interest rate ( r ) that allows us to make the $510 monthly payment over 78 months. We can solve this equation for \( r \) using numerical methods like trial and error or using financial calculators or spreadsheets.

Let's set up the equation and solve for ( r ):

[tex]\[ 510 = \frac{r \times 29800}{1 - (1 + r)^{-78}} \][/tex]

Using numerical methods, we can find that the highest APR that you could afford to make the $510 monthly payment over 78 months for a $29,800 loan is approximately 9.5%.

Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $980,000. Benning wants to be reimbursed for financing the machine at a 9% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the required lease payment if the first of 10 annual payments will be made immediately and Benning will be able to sell the machine to another customer for $50,000 at the end of the 10-year lease.

Answers

Solution:

PVA = Annuity amount × Annuity factor

Annuity amount =  [tex]\frac{PVA}{Annuity factor}[/tex]

Annuity amount =

                              [tex]\frac{980,000}{7.36009}[/tex]

**Present value of an ordinary annuity of $1:n= 10, i= 6% (from PVA of $1)

Annuity amount = $108,694 = Lease payment

After Hiroshi’s client informs him that she was denied an apartment lease due to her race, he refers his client to the free legal clinic available to university students. This is an example from the ACA Advocacy Competency domain of_____________.a. Client\/Student Empowerment.b. Client\/Student Advocacy.c. Community Collaboration.d. Social\/Political Advocacy.

Answers

Answer:

The correct answer is letter "B": Client/Student Advocacy.

Explanation:

The American Counseling Association (ACA) Advocacy Competency describes the set of capabilities counselors can use to help students, clients or individuals of a population in front of cases problematic cases.  

The Client/Student Advocacy refers to the power counselors have to act on behalf of students and clients in cases where the counselor has access to systems or processes students or clients do not. This advocacy is also useful when the clients do not want to engage in advocacy because they are afraid of retaliation.

ebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for Samson, Inc., under a long-term contract. The gross contract price was $2,300,000. Jebali finished construction in 2016 at a cost of $2,100,000. However, Samson insisted that Jebali redo the doorway; otherwise, the contract price would be reduced. The estimated cost of redoing the doorway is $80,000. In 2017, the dispute is settled and Jebali fixed the doorway at a cost of $65,000.

A) How much must Jebali include in gross income? What amount of deductions is Jebali allowed for 2016?
B) In 2017, how much must Jebali include in gross income? What amount of expenses can Jebali deduct in that year?

Answers

Answer:

Explanation:

                                                   2016                                   2017

Contract price                   =     2300000                           2300000

Cost to date                       =    (2100000)                         (2160000)

Further estimated Cost    =     (80000)                                    0

Profit                                   =    120000                                140000

Stage of completion         =  2100/2180 = 96.33%                 100%

As at Profit and loss

Revenue    2300*96.33      =   2215596.33                           2300000

Profit           120*96.33        =   -115596.3303                          -140000

Cost of Sales                       =    2100000                                2160000    

For the period profit and loss

Revenue                              =     2215596                           84404

Cost of sales                       =    (2100000)                          60000                                

Profit                                    =     115596                                24404

you have 10 pairs of socks,five black and five blue,but they are not paired up.instead they are all mixed up in a drawer.it is early in the morning and you do not want to turn on the light.


1. how many socks must you pull out to guarantee that you have a pair of one color?

2. how many must you pull out to have two good pairs(each pair is the same color)?

3. how many must you pull out to be certain that you have a pair of black socks? use a systematic approach to list all possible outcomes as a way to justify the answer in each case.

Answers

The answer for

1) 3 socks

2) 5 socks

3) 1 pair of socks

Explanation:

1) In the second trial, you choose one color, you say black, first, and second, say blue. The third sock you're taking out now has two black or brown. Therefore, you must draw at least 3 socks to ensure that you have a single color pair..

2) You get black first.

You're pulling out brown, second.

You tear down charcoal, Thrid.

Second, you cut out charcoal. (one pair complete)

Second, you're only heading out. (2 pairs full) Thus, you have to take out at least 5 socks to guarantee two pairs in the same colour.

3) You want 1 pair of black socks

The worst case is:  [ 5 blu ]

The 6th pick guarantees you will have 1 pair of black socks

Boston Company purchased equipment by signing a noninterest-bearing note with a face value of $64,800. The list price of the equipment is $50,000. Prepare the appropriate journal entry to record the purchase of the equipment.

Answers

Answer:

_____________________                             __________________

Equipment $50,000  Debit

Discount on Note Payable $14,800 Debit  

                                                                          Note Payable $64,800 Credit

___________________                                 ___________________

Explanation:

The equipment that the boston purchased is an asset that have to debit the company in the journal entry. When an asset increase you have to debit the account. Therefore $ 50.000 equipment is a debit.

The noninterest-bearing note $64,800 its a note payable that you have to credit on the journal entry for being a liability.

With the purchased there is a discount on note payable,this is the difference of 64,800- 50,000 of the equipment purchased and so the discount is = $ 14,800.

the lease on a new office requires an immediate payment of $24,000 (in year 0) plus $24,000 per year at the end of each of the next 10 years. at a discount rate of 14 percent, what is the present value of this stream of lease payments?

Answers

Answer:

The answer is: $ 20,640 every year.

Explanation:

Leasing a new office requires an immediate payment of $ 24,000 (in year 0), plus $ 24,000 per year at the end of each of the next 10 years, which would be a total of $ 240,000 in 10 years, with a fee Discount of 14 percent, would be 240,000 x 0.14 = $ 33,600 in those 10 years, which would be $ 3,360 annually, which subtracted from the $ 24,000 annually would be a total of: $ 20,640.

The answer is: $ 20,640 every year.

Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major computer and semiconductor companies located close to each other there. This provides the location-specific advantage of

Answers

Answer:

Externalities

Explanation:

When we discuss externalities, we refer to specific benefits or costs an organisation enjoys or suffers as a third party as a result of having no direct control over how those benefits or costs are created.

Externalities are both positive (benefits) or negative (costs), they can also be private (to an individual or a business) or public (affect the enitre society)

When a computer based organisation is based in Silicon Valley, the advantages to business it enjoys as a result of that location is the location-specific advantage of Externalities.

Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return the car. d. enforceable since it is for a necessary. e. none of the above

Answers

Answer:

The correct answer is letter "A": voidable.

Explanation:

Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.

Thus, Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).

The automobile industry in a developing country has very few sellers. If one automobile company raises the prices of its trucks by a certain amount, other automobile companies in the industry follow by raising prices by a similar amount.
This situation is an example of:

A. pure competition.
B. an oligopoly.
C. monopolistic competition.
D. a monopoly.
E. a monopsony.

Answers

Answer:

The correct answer is B. an oligopoly.  

Explanation:

An oligopoly is a market structure where there are few relevant competitors and each of them has some capacity to influence the price and amount of equilibrium.

In the oligopoly, competitors have market power, but at a lower level than in the case of monopoly. This, since, instead of having only one bidder, there is a small group of companies.

This means that although each of the companies has an influence on the market price and quantity (they do not take it as given), the freedom to choose the level of these variables is limited by the existence of other competing firms. A special case of oligopoly is the duopoly, where there are only two bidders.

Answer: b. An oligopoly

Explanation: An oligopoly is an economic condition in which a small number of sellers exert control over the market of a commodity. The firms in an oligopoly collude, to either restrict output or fix prices and sometimes both, in order to achieve above normal market returns, higher than that of a competitive market. None of the firms however can keep the others from having significant influence. Now firms in an oligopoly set prices of goods and services collectively or under the leadership of one firm. They do not take prices from the market. Thus, if one automobile company raises the prices of its trucks by a certain amount, other automobile companies in the industry are likely to follow by raising prices by a similar amount.

Tennison Corporation has two service departments (Maintenance and Human Resources) and three production departments (Machining, Assembly, and Finishing). Maintenance is the larger service department and Assembly is the largest production department. The two service departments service each other as well as the three producing departments. On the basis of this information, which of the following cost allocations would not occur under the direct method?

a. Maintenance cost would be allocated to Human Resources.
b. Human Resources cost would be allocated to Finishing.
c. Machining cost would be allocated to Assembly.
d. Both machining cost would be allocated to Assembly and maintenance cost would be allocated to Human Resources.
e. Maintenance cost would be allocated to Finishing.

Answers

Answer:

The correct answer is "Both machining cost would be allocated to Assembly and maintenance cost would be allocate"

Explanation:

Under direct technique for designation, the expenses of administration divisions,  

- are not distributed to another help office, and  

- are distributed straightforwardly to the various offices.  

In view of over, the cost distribution that WOULD NOT OCCUR under direct strategy is  

Choice #4: Both machining cost would be designated to Assembly and support cost would be apportioned to Human Resources.  

This is on the grounds that:-  

- Machining cost would not be assigned to Assembly office as both are creation divisions.  

- Maintenance cost would not be apportioned to Humar asset as both are administration divisions.

Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Annual demand 3,500 mufflers

Answers

COMPLETE QUESTION:

Sarah’s Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following information to determine the best order size:

(The attachment contains the information)

Answer: 216 mufflers is the best order size.

Explanation:

The attachment contains the calculations and information.

When a public transit system (such as a subway or bus line) raises its fares, its total revenue may increase. This suggests that demand is: price unit-elastic. price-elastic. unstable. price-inelastic.

Answers

Answer:

Price Inelastic

Explanation:

Public transport systems are a necessity which consumers are unable to do away with easily. Therefore when prices are raised consumer habits remain the same. Inelastic refers to unchanging consumer habit even when prices change.

Look at the following regression output.

Y = Dealer List Price and X = Dealer Invoice Price

Regression Statistics

Multiple R 0.90482

R Square 0.81871

Adjusted R Square 0.773392

Standard Error 0.618233

Observations 6



Coefficient Standard Error t stat P-value

Intercept -3.8844 4.16062 -0.9336 0.4036

Invoice Prices 1.41776 0.33357 4.2502 0.0136

How much of the variability in Dealer List Prices is explained by Dealer Invoice prices?

a.
82%

b.
1%

c.
40%

d.
90%

Answers

Answer:

a.  82%

Explanation:

From the question, the R-squared of 0.81871, or 82% approximately reveals the level of variability in Dealer List Prices that is explained by Dealer Invoice prices.

In econometric and statistical analysis, R-squared statistic shows the percentage of variation or variability in the dependent variable that is explained by or accounted for by the explanatory variables in a model. Thus, if the explanatory power of the model is high (e.g. 80%), it implies that the included explanatory variables are good predictors of the dependent variable.

In this question, Dealer List Prices which is the dependent variable is therefore explained by 82% by Dealer Invoice prices which is the explanatory or independent variable.  

The 82% which is high also shows that Dealer Invoice prices are good predictors of Dealer List Prices.

A city government hopes to decrease the quantity of sugary drinks consumed, and is planning to implement a tax on the drinks. Should the government tax companies that sell sugary drinks, or the consumers who purchase them?

Answers

Answer:

Government should tax consumers of sugary drinks, rather than sellers.

Explanation:

If government levies tax on sellers; Sellers might share the tax burden wholly, partially or none with the buyers.

Such tax burden share depends on inelasticities of demand & supply - if demand is more inelastic, more burden is on buyers & if supply is more inelastic, more burden is on sellers.

So in case : demand is relatively more elastic & supply more inelastic, more tax burden will be borne by sellers. Hence, despite of tax - there will be less or no change (rise) in buyer's price & therefore it won't be effectively reducing quantity of sugar drinks consumed

If the tax is on buyers, it will directly effect their demand & consumption of sugary drinks.

Answer:

The impact of the tax will be the same regardless of who pays the tax

Explanation:

Prices will adjust so that the impact on consumers and producers will be the same regardless of who officially pays the tax.

Munchin Manufacturing Company leases an asset to Peter Inc in a sales-type lease. The present value of the lease payments is $400,000 and the cost of the asset is $330,000. At the beginning of the five-year lease term,
a. Munchin should recognize a profit of ____________.

Answers

Answer:

$70000

Explanation:

Given:

Current value of lease payment = $400000

Real cost of the asset = $330000

Profit at the beginning of the lease term is also the same as the current profit at the present value of lease = $400000 - $330000

= $70000

Final answer:

Munchin Manufacturing Company should recognize a profit of $70,000 at the beginning of the five-year lease term when it leases an asset to Peter Inc due to the difference between the present value of lease payments ($400,000) and the cost of the asset ($330,000).

Explanation:

The student is asking about how to recognize profit in a sales-type lease transaction for Munchin Manufacturing Company. In this scenario, when Munchin leases an asset to Peter Inc, the present value of the lease payments is $400,000 and the cost of the asset to Munchin is $330,000. At the beginning of the lease term, Munchin should recognize the difference between the present value of lease payments and the cost of the asset as profit.

To calculate the profit, you subtract the cost of the asset from the present value of the lease payments:

Present Value of Lease Payments - Cost of Asset = Profit

$400,000 - $330,000 = $70,000

Therefore, Munchin should recognize a profit of $70,000 at the beginning of the five-year lease term.

Leslie, who is single, finished graduate school this year and began repaying her student loan. The proceeds of the loan were used to pay her qualified higher education expenses. She has not received any type of educational assistance or scholarships. The amount of interest paid during the year amounted to $3,800. What is the amount and classification of her student loan interest education deduction if her modified AGI is $40,000?

Answers

Answer:

$2,500 from AGI

Explanation:

Given:

Adjusted Gross income = $40,000

Amount of interest pay = $3,800

According to the federal law of deduction from income tax, passed out students can take a deduction from their annual AGI payment up to $2,500, but to avail, this deduction students income must be under in specified range.

Modified Adjusted Gross income under this law must be less than $80,000.

Final answer:

The amount and classification of Leslie's student loan interest education deduction depends on her modified AGI. If her modified AGI is $40,000 or less, she can claim a deduction for up to $2,500 of student loan interest paid during the year.

Explanation:

The amount and classification of Leslie's student loan interest education deduction would depend on her modified AGI. If her modified AGI is $40,000 or less, she can claim a deduction for up to $2,500 of student loan interest paid during the year. However, the deduction is reduced if her modified AGI is between $40,000 and $70,000, and completely phased out if her modified AGI is $70,000 or more.

In this case, since Leslie's modified AGI is $40,000, she would be eligible to claim the full deduction of $3,800, as her modified AGI is below the phase-out threshold. This deduction can help reduce her taxable income and potentially lower her tax liability.

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