During its most recent fiscal year, Raphael Enterprises sold 250,000 electric screwdrivers at a price of $16.50 each. Fixed costs amounted to $625,000 and pretax income was $875,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement

Explanation:

when a licensing arrangement is structured in such a way that ir  reduces the risks of a firm's technological know-how being expropriated by licensees, then licensing may be said to be appropiate.

For example : when a firm perceives its technological advantage can be intimated by its competitor ,in such case the company gets its technology licensed before the imitation of its technology occur.By doing so the firm may deter its competitors  from developing their own, possibly superior, technology. And by licensing its technology the firm may be able to establish its technology as the dominant design in the industry. In turn, this may ensure a steady stream of royalty payments.

so we can say that Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement

It is necessary to weigh the advantages and disadvantages of licensing proprietary technology to foreign competitors in order to form a consistent opinion.

For an organization that owns the rights to a certain technology, licensing to other companies may not be a good strategy to gain competitive advantage, as innovation is an essential characteristic for organizational success.

Therefore, technology licensing can be advantageous if an organization has its structure and objectives aligned with providing know-how to other companies, such as a franchise network for example.

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Answer:

Following Journal Entries are recorded for Kingbird, Inc

Explanation:

March 02

Debit: Account Receivable = $954,000

Credit: Sale = $954,000

(Credit Sale is Recorded)

Debit: Cost of Good Sold = $590,000

Credit: Inventory = $590,000

(To Record Cost of merchandise Sold)

Answer:

Scenario 1. B. Prepare and rehearse.

2. B. Offer a clear, sincere explanation.

C. Communicate the news openly.

3. A. Reveal specific reasons for not hiring the applicant.

D. Use an indirect pattern.

4. Option 1

Explanation:

Delivering bad news is inevitable in every organization. Some factors are of utmost importance when having to do this. They include;

1. Being clear and concise.

2. Being straightforward while still providing assurance.

The direct approach announces the bad news just at the introduction of the speech. Whereas, the Indirect approach is used when the audience is not well known. It employs some form of explanation before the bad news is delivered.

1. Being tactful and professional would require adequate preparation so as to choose words properly and put people's feelings into consideration.

2. To avoid spreading rumors within and outside the organization, the president would have to address his staff openly. He should be clear and concise when doing this.

3. To make room for good relationship and not break the confidence of the applicant, the HR should begin with an explanation of why the applicant was not hired.

4. The general manager should encourage the employee's effort to be trained but in order not to jeopardize the present schedule, future arrangements would need to be made.

To deliver bad news tactfully in an organization, preparation and rehearsal are key. Clear, sincere explanations and open communication are essential, and providing specific feedback can help lessen the impact on those affected by the news. Choosing the most professional and solution-focused responses will maintain positive relationships and workplace harmony.

In order to be tactful and professional when personally delivering bad news within organizations, you should prepare and rehearse.

To reduce the rejected applicants’ disappointment:

For refusing the night-shift manager’s request, Option 1 is the most appropriate, as it provides a constructive resolution by offering an alternative while maintaining a professional tone.

Leaving a job the right way involves staying professional, observing workplace norms, handling feedback constructively, solving problems effectively, and engaging diplomatically even when delivering bad news. Emphasizing clear, sincere explanations ensures transparency, while offering specific feedback and future opportunities helps maintain positive relationships.

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Answer:

(a) Fixed cost = $2000 + $180 (15*12) = 2180

(b)  Unit price = $4 + $0.5 (price increase) = $4.5

(c) Unit variable cost = $3

(d) First option

(e) Second option

Explanation:

For (d) we have, first option gives (1800) as 200*(4-3) -2000= -1800 and second option give (1880) as 200*(4.5-3) – 2180.

So, he’d prefer first option because of less loss associated with it.

For (e) we have, first option gives (1300) as 700(4-3) -2000 = -1300 and second option gives (1130) because 700(4.5-3) – 2180 = -1130.

So, he would prefer second option because of less loss associated.

Answer:

Part (a) Annual fixed cost for the e-commerce site option

$15×12 = $180

Part (b) The unit price for the e-commerce option

$4.50+$0.50= $4.50

Part (c) Variable cost for the self-developed site option

The only variable cost is cost of sale = $3.00

Part (d) If Jonathan sells 200 items

Prefers E- Commerce Option which  is more profitable

Part (d) If Jonathan sells 700 items

Prefers E- Commerce Option which  is more profitable

Explanation:

Part (d) If Jonathan sells 200 items

                                      Self Developed Site                 E- Commerce Option

Sales                                       800                                              900

Less VC                                  600                                              600

Contribution                           200                                              300

Less FC                                 2000                                             180

Income                                  (800)                                              120

Therefore E- Commerce Option is more profitable

Part (d) If Jonathan sells 200 items

                                      Self Developed Site                 E- Commerce Option

Sales                                      2800                                            3150

Less VC                                  2100                                            2100

Contribution                            700                                             1500

Less FC                                 2000                                             180

Income                                  (1300)                                            1320

Therefore E - Commerce Option is more profitable

Final answer:

The scenario uses queueing theory to model copier usage, with the probability of finding the copier idle, the average waiting time, the average number in the system, and wage costs computed using the given arrival and service rates. Deciding on leasing an additional machine requires a cost-benefit analysis considering these computations.

Explanation:

The scenario described involves the application of queueing theory, specifically using the exponential distribution to model interarrival and service times. To answer the questions, we'll first need to establish a few parameters. The average arrival rate (λ) is 5 people per hour, and the average service rate (μ) is 1 person per 8 minutes (or 7.5 people per hour).

A. The probability that a person arriving will find the machine idle is equivalent to the system being empty, which can be calculated using the formula P(0) = 1 - (λ/μ). This represents the machine's idle probability.

B. To find the average waiting time, we use the formula L = λ/(μ - λ), and then apply Little's Law, W = L/λ, to find the waiting time in the system.

C. The average number of people using or waiting to use the machine, λW, can be determined by computing the average number of people in the queue, λWq, and adding the average number in service, which is given by λ/μ when the server is busy.

D. To calculate the average cost of wages for people waiting or using the copy machine, we multiply the average number of people waiting or using the machine by the average wage rate and the length of the working day.

E. Deciding whether to lease another copying machine depends on a cost-benefit analysis comparing the combined daily cost of wages and machine lease to the cost of leasing a second machine and any potential reduction in waiting time.

Terri's classification as an exempt or non-exempt employee under the FLSA will determine her eligibility for overtime pay. Since her job involves training and managerial paperwork, she could potentially meet the criteria for exempt status but more details about her role would be needed to make a clear determination.

The question concerns whether Terri should be paid overtime according to the Fair Labor Standards Act (FLSA). If Terri is classified as an exempt employee, she may not be eligible for overtime pay. The FLSA defines exempt status based on job duties, salary level, and salary basis. Given that Terri spends most of her time demonstrating to new employees which is a form of training and a small portion of her time completing managerial paperwork, it could argue for her exempt status. This would include duties such as supervising other employees, having input in the hiring process, and having managerial responsibilities. Since the information provided does not specify Terri's full range of duties or her level of decision-making authority, it's not clear whether she meets the criteria for exempt status under the FLSA. If she is non-exempt, she should be paid for any hours worked over 40 in a workweek. The most accurate answer based on the given information, though subject to further specification of Terri's role, might be that her pay could potentially be consistent with the FLSA if she meets the criteria for an exempt employee.

Answer:

Check the explanation

Explanation:

a. Gains from being nice = $60

reason: outcome for being nice = $100; outcome for being mean = $40 So the gains from being nice = 100 - 40 = 60

b. Average mean server earnings = $40 (given)

Average nice server earnings = $ 100 (given)

  Change in tips per server if all of the servers switch from being mean to being nice = $60 (100 - 40)

c. Individual payoff of my becoming nice = $6

reason: Total number of servers = 10

Change to the tip pool with my change in behavior from mean to nice = $60

My share in this change = 60/ 10 =6

d.  1-I am more likely to be nice when I keep my own tips.

reason: I can keep $100 if I am nice. But in a tip pool, some of the others may be mean. This will bring the pool amount lower, thereby my share may be less than $100. So I prefer to keep my own tips.

In a non-tip-pooling scenario, a server will gain $60 from being 'nice'. In a tip pooling scenario, a server is likely to earn less from being 'nice' unless all servers adopt friendly behavior. As a server, you are more likely to be nice when you keep your own tips, a policy a customer-centric restaurant is likely to adopt.

For the first part of the question, if a server can be 'nice' and earn $100 in tips per shift, or be 'mean' and earn $40 in tips per shift, then the gain from being 'nice' in a non-tip-pooling world will be $60 ($100 - $40).

In a tip pool scenario, if all the servers are mean and earn $40, this is the amount the average server will earn. If all the servers are nice, they will collectively earn $1000 (10 servers x $100) which is then divided equally among all servers, leading to an average earning of $100 per server. The change in tips per server if all of them switch from being mean to being nice will therefore be $60. However, if you're deciding whether to be 'nice' or 'mean', in a shared scenario, your behavior gain from being 'nice' will depend on the collective behavior of the other servers, since earnings are divided equally. The payoff could be less than $60 if not all servers opt to be 'nice'.

As for the question of when you are most likely to be nice, you are more likely to be nice when you keep your own tips. This is because the incentives for being nice in a pooled-tip scenario are less if not all servers demonstrate nice behavior. If a restaurant values customer satisfaction highly, it's likely to let servers keep their own tips to incentivize friendly service.

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Answer:

The second year's depreciation expense using the straight-line method is $10,200

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement based on the estimated useful life of the asset.

Depreciation = (cost - salvage value)/estimated useful life

where the salvage value is the estimate of the amount that will be received from the disposal of the asset after its useful life.

Annual depreciation

= ($56,000 - $5,000)/5

= $10,200

Answer:

$10,200

Explanation:

Deprecation is way of expensing the cost of an asset.

Deprecation expense using the straight line depreciation method =( Cost of asset - residual value) / useful life

($56,000 - $5,000) / 5 = $10,200

The depreciation expense each year is $10,200.

I hope my answer helps you

Answer:

True

Explanation:

Suppose Carlos is willing to pay a total of $135,000 for an apartment.

True or False: Keeping his maximum willingness to pay for an apartment in mind, Carlos will not buy the apartment because it would be worth less to him than its market price of $180,000.

Maximum willingness to pay is the maximum amount/price a buyer is willing to pay to purchase a good or service.

The market price of the apartment is $180,000 while Carlos is willing to pay $135000 or less to buy an appartment. Therefore, Carlos will not buy the appartment worth $180000 as the price is higher than what he is willing to pay.

Answer:

Alex, Capital account will have a debit balance of $41,250

Explanation:

Partnerships are formed between individuals that come together and pool their resources together to achieve a common goal. They agree to share profits and losses of a business enterprise.

In this case profit sharing is done in a 3:2:3 order.

So for Alex his share of the $110,000 loss will be

Alex's share= (3/3+2+3)*110,000

Alex's share= (3/8)*110,000

Alex's share= $41,250

So this amount will be submitted from Alex's capital account

Final answer:

Alex, Brad, and Carl's capital accounts will be debited for their share of the partnership's $110,000 loss based on the profit-sharing ratio of 3:2:3. The journal entry will include a debit to Income Summary for the full loss and credits to each partner's capital account for their calculated share.

Explanation:

When a partnership incurs a net loss, such as the $110,000 loss described, each partner's capital account must be debited with their share of the loss according to the agreed-upon profit-sharing ratio. In the case of Alex, Brad, and Carl, the profit-sharing ratio is 3:2:3, respectively. To calculate each partner's share of the loss, you would allocate the total loss proportionally.

For Alex and Carl (3/8 of the loss each):

(3/8 of $110,000) = $41,250

For Brad (2/8 of the loss):

(2/8 of $110,000) = $27,500

The journal entry to close Income Summary will include a debit to the Income Summary account for the full amount of the loss, $110,000, and credits to Alex's, Brad's, and Carl's capital accounts for their respective shares of the loss. Thus, the journal entry will look like this:

Answer and Explanation:

a. What is the amount of their adjusted gross income?

Adjusted Gross Income ( AGI ) = $88,750 + $2,660 - $5,170

= $86,240

Adjusted Gross Income ( AGI ) = $86,240

b. In order to minimize taxable income, Diego and Dolores will in the amount of

From the above box, Here Diego, Dolores both are married so,  Standard Deduction in 2017 is $12,700

In order to minimize taxable income, Diego and Dolores will in the amount of $12,700

c. What is the amount of their taxable income?

Taxable income = AGI - Standard deduction - exemptions

= $86,240 - 12,700 - [ 2 * $4,050 ]

= 73,540 - 8,100

= $65,440

Taxable income = $65,440

d. What is their tax liability for 2017?

from Tax bracket for married filling jointly in 2017 table.

Tax liability = [ 18,650 * 10% ] + [ 15% [ 65,440 - 18,650 ] ]

= 1,865 + [ 15% * 46,790 ]

= 1,865 + 7,018.5

= $8,883.5

Tax liability = $8,883.5

Answer:

Answer in explanation

Explanation:

We calculate each of the metrics for the country Alpha using the appropriate formula;

National saving

Mathematically, National saving = Public saving + Private saving

Private saving = Total income - Tax Revenue - Consumption or Y - T - C or household + Business savings = 200 + 300 = 500

Public saving

Mathematically, Public saving = Tax revenue - expenditures = T - G = 220 - (80 + 100) = 40

National saving is thus: 500 + 40 = 540

National saving rate

Mathematically, National saving rate = (National saving * 100)/GDP = (540 * 100)/1800 = 30%

We know that

National saving = Public saving + Private saving

Here

Private saving =  household + Business savings

= 200 + 300

= 500

And,  

Public saving = Tax revenue - expenditures

= 220 - (80 + 100)

= 40

Now  

National saving is

= 500 + 40

= 540

And,  

National saving rate

 = National saving ÷ GDP

= (540 × 100) ÷ 1800

= 30%

In this way, it should be calculated.

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Option B

Liabilities are generally classified on a balance sheet as current liabilities and long-term liabilities

Explanation:

Liabilities are essential features of a company because they are employed to finance services and finance for large developments.  Liabilities are resolved over time by the transference of economic advantages including cash, assets, or help. Listed on the right side of the balance sheet.

The most basic liabilities are normally the most abundant like accounts payable and bonds payable. Most firms will have those two line items on their balance sheet, as they are a member of continuous current and long-term operations.

Answer: Direct material cost and direct labor cost.

Explanation:

Prime costs are the expenses incurred while creating finished goods. Prime cost is calculated by adding the direct material cost and direct labor cost.

Direct materials are the raw materials that are vital to produce a finished good while direct labor costs are wages and salaries or benefits that are paid to a worker who worked on the manufacturing of the good.

The prime costs in organizations are usually checked by the operations manager to know if there's efficiency in the production process of the company.

Answer:

Reading the following sentence, and to identify any mistakes “Proofreading is an important phase of the writing process. Careful proofreaders check for errors in spelling, grammar, punctuation, names, numbers, and formatting. When checking spelling, do not rely too heavily on your computer’s spell checker”

This sentence is correct without any revisions.

The above section doesn't contain any spelling and comma mistakes. The spelling of the considerable number of words are right and utilization of comma accentuation is proper.

Answer: Please refer to the explanation section

Explanation:

Date            Asset           =    Liabilities + stockholder's Equity

1 January   Machine 24000+ = Payable(liability) 24000+

2 January   Bank 8000 -    =  Payable (Liability) 8000 -

*3 January    Machine (freight cost) 700  +

                    Bank    700 -

*5 January    Machine (Installation cost) 2500 +

                    Bank    2500 -

**1 July           Bank    17440 -    =  Payable 17440 -

*freight cost and installation costs are capitalised to the cost of machinery. both freight costs and installation costs affect Machinery account and Bank Account. Machinery and Bank are assets therefore these transactions only affect the asset side of the equation

** amount payable + interest = (24000 - 8000) x 1.09 = 16000 x 1.09 = 17440

2. acquisition costs

Freight costs and installation costs are added (capitalised) to the costs of acquisition because they are costs necessary in delivering the asset to the clients premises and preparing the asset of its intended use

Cost Acquisition = 24000 + 700 + 2500 = 27200

Cost of the machinery = $ 27200

3. Effect of interest on cost of Machinery

The interest paid on the Balance payable has no effect on the cost of the machinery. interest paid only affects cost of the asset when it is capitalised. interest is capitalised when the company borrows funds to finance the construction of a long term asset or acquisition of a long term asset

4. Depreciation for 2013.

Depreciation = (Total cost of Machine - residual Value)/ useful life

depreciation = (27200 - 3200 = 24000)/10 = 2400

5. Book Value = Cost - Accumulated depreciation

   Accumulated depreciation = depreciation 2013 + depreciation 2014

  Accumulated depreciation = 2400 + 2400 = 4800

  Book Value = 27200 - 4800 = 22400

1. Effects on Accounting Equation: +$16,720 Accounts Payable, 2. Acquisition Cost: $12,800. 3. Depreciation Expense: $1,060.4. Impact of Interest:  Interest paid does not affect. 5. Net Book Value at 2014: $10,680.

1. Effects on Accounting Equation:

2. Acquisition Cost: Machine's acquisition cost is $24,000 - $8,000 - $700 - $2,500 = $12,800.

3. Depreciation Expense: Annual Depreciation = (Cost - Residual Value) / Useful Life = ($12,800 - $3,200) / 10 = $1,060.

4. Impact of Interest: Interest paid does not affect the machine's cost. Interest can be included in the acquisition cost if incurred during the construction of an asset, increasing its historical cost.

5. Net Book Value at 2014: Accumulated Depreciation for 2013 = $1,060. For 2014, Accumulated Depreciation = $1,060 x 2 = $2,120. Net Book Value = Acquisition Cost - Accumulated Depreciation = $12,800 - $2,120 = $10,680.

Answer:

$55,000

Explanation:

Kevan tax basis is calculated as:

$120,000 + $15,000 + $90,000 + $40,000 - $210,00

Kevin tax basis = $55,000

Using the following illustration

Kevan contributed $120,000 to land

Jerry and Dave both contributed $0

Kevan contributed 15,000 in cash

Jerry and Dave both contributed $245,000 in cash

Kevan Nonrecourse mortgage in excess of the contributed amount to land is $90,000.

Jerry and Dave: $0

This is so because all nonrecourse debt greater than the amount is allocated to Kevan only.

Kevan, Jerry and Dave Remaining Nonrecourse mortgage is $40,000

This is calculated by 33.3% of ($210,000 - $90,000)

Kevan Relief from mortgage debt is $210,000

Jerry and Dave Relief from mortgage debt is $0

Kevan's tax basis in his LLC interest will be $205,000, which is the sum of his cash contribution, the adjusted basis of the land contributed, and his share of the nonrecourse debt.

Under IRS regulations, Kevan's tax basis in his LLC interest will be calculated according to his contribution plus any liabilities he is assuming. Kevan contributed cash and land, which carry different tax implications.

For the cash contribution, Kevan's tax basis is simply the amount of cash contributed which is $15,000. For the land contribution, the tax basis is the amount of adjusted basis (the original cost plus improvements minus depreciation) at the time of contribution plus his share of the nonrecourse debt. The adjusted basis of the land is given as $120,000 and his share of the nonrecourse debt (since each member received 33.33 percent) would be $70,000 (1/3 of $210,000).

Adding these components together, Kevan’s tax basis in the LLC is $15,000 (cash) + $120,000 (adjusted basis of the land) + $70,000 (his share of nonrecourse debt) = $205,000.

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Answer:

Click through rate

Explanation:

Click-through rate (CTR) are used to measure many of the decisions that go into a campaign, such as keyword selection and ad copy because the numbers of users who click on the advert link to the number of all total users who has either view the page of the advertisement and It is used to measure the success of an online advertising campaign for a website as well as how effective email campaigns are, by measuring or evaluating the numbers of people who actually saw the advert and click on the link of the advert that is why click through rate do not measure the performance of an advert campaign but rather useful to evaluate many of the decisions that go into a campaign.

Therefore the higher the click-through rate of an advert the more successful the advert has been in generating interest.

Answer:

Annual demand (D) is 9700 units.

Number of Working days = 300 days per year

Lead time = 5 working days.

Calculate the Re-Order Point (ROP) using the following formula:  

ROP = (Demand per day) x (lead time for a new order in days)  

ROP = d x L

Where,

d = D / Number of working days

Substitute the values in equation (1)

ROP = (D / Number of working days) x Lead time

ROP = (9700 / 300) x 5  

ROP = 161.67

ROP = 162 units

Thus, the Re-Order Point (ROP) is 162 units.

Answer:

All the options given are examples of investment.

Explanation:

Savings are what an individual has left after their spending has been deducted from their disposable income. Savings can increase income by investing the money saved. Investment is an item or asset gotten with aim of generating income. An investment simply means buying goods that are not for immediate consumption but generation of income.

All the options provided are investment examples. A certificate of deposit is given by the bank to an individual after a certain amount of money has been deposited and it generates interest. Also building a cabin , a laboratory and buying stock are investments.

The Strategy the firm will adopt is - (d )A firm facing low pressures for local responsiveness and few pressures to contain costs might best pursue a(n) international strategy.

Explanation:

Firms that pursue  global standardization strategy basically  focuses  on increasing their  profitability and profit growth by reaping the cost reductions benefits that come from economies of scale and location economies(i.e.  their strategic goal is to pursue a low-cost strategy on a global scale)

There are three main international strategies namely

(1) multidomestic

(2) global,

(3) transnational

Considering the increased cost pressures and competition faced by your firm, a transnational strategy allows for global cost-effectiveness while simultaneously catering to local market demands. This blends the benefits of the firm's previous localization strategy with a global standardization strategy, effectively meeting local demands and cost-efficiency requirements.

In light of the increased competition and cost reduction pressures your firm faces along with the need to cater to local tastes and preferences, a transnational strategy seems most appropriate. A transnational strategy enables firms to operate globally with cost effectiveness and locally with responsiveness to consumer needs. It amalgamates the benefits of localization, which has been your firm's previous approach, and global standardization strategy, forming a hybrid strategy that concurrently meets local specificities and cost-efficiency requirements.

A prime example of successful adoption of transnational strategy is Nestle, which has effectively maintained cost-efficiency by leveraging scale across their global operation, whilst attuning their product offerings to local consumer preferences across different geographies.Core competencies and skills of the firm can be leveraged to accommodate both global scale economies and local distinctiveness. The implementation of a transnational strategy, however, requires keen managerial acumen to balance and synergize global effectiveness and local responsiveness.

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Answer:

So none is true other than below answer.

Explanation:

True: Budgeted fixed factory overhead = Budgeted output * Fixed overhead Absorption rate.

Fixed overhead absorption rate = Budgeted fixed overhead / Budgeted productio

Answer:

d. all of the above

Explanation:

Six sigma as a 99.9997% rate of perfections which amounts to 3.4 error per million transaction.

Six sigma is an effective methodology that helps to reduce cost and decrease cycle time.

It is a methodology that increases productivity and efficiency in process, it also reduces the amount of defects and helps to eliminate it.

A process that operates at a 6 sigma level is considered near 'perfect', as it yields only 3.4 defects per million opportunities, resulting in a 99.99966% accuracy rate.

The question pertains to the concept of Six Sigma, a set of techniques used for process improvement. A process that performs at a six sigma level, according to traditional Six Sigma management teachings, has a performance level that equates to only 3.4 defects per million opportunities. This results in a 99.99966% accuracy rate, which, while not quite 'perfect' in a literal sense, is often considered as such in operational and statistical contexts.

Thus the answer to the question is (d) All of the above.

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Answer:

Cameron:

Annual Payment = $31,596

Time Period = 44 years

Discount Rate = 8%

Present Worth = $31,596*(1-(1/1.08)^44)/0.08

Present Worth = $381,587.22

Kennedy:

Annual Payment = $31,596

Discount Rate = 8%

Present Worth = $31,596/0.08

Present Worth = $394,950.00

So, Present Worth of Kennedy is $13,362.78 more than that of Cameron.

Explanation:

Answer:

$13,362.78

Explanation:

The worth of their cash flows today is known as the present value (PV). The calculations are done as follows:

1. For Cameron

Here, we are assuming Cameron's annuity is an ordinary annuity under which Cameron or any other investor receives payments at the end of each  time period over a period of time. The PV of an ordinary annuity formula is as follows:

PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r]  ...................................................... (1)

Where

PVo = Present value of the ordinary annuity = ?

P = Periodic payment  = $31,596

r = interest rate  = 8% = 0.08

n = number of years = 44

The values above are substituted into equation (1) as follows:

PVo = $31,596 × [{1 - [1 ÷ (1 + 0.08)]^44} ÷ 0.08]

       = $31,596 × [{1 - [1 ÷ (1.08)]^44} ÷ 0.08]

       = $31,596 × [{1 - [0.925925925925926]^44} ÷ 0.08]

       = $31,596 × [{1 - 0.0338341101277985} ÷ 0.08]

       = $31,596 × [0.966165889872202 ÷ 0.08]

       = $31,596 ×  12.0770736234025  

       = $ 381,587.218205026  

Therefore, the today's worth of Cameron's cash flows is $ 381,587.218205026.

2. For Kennedy

The perpetuity means Kennedy's cash will flow periodically indefinitely. The formula for the PV of a perpetuity is as follows:

PVp = P ÷ r .......................................................... (2)

Where,

PVp = Present value of a perpetuity = ?

P = Periodic payment  = $31,596

r = interest rate  = 8% = 0.08

The values above are substituted into equation (1) as follows:

PVp = $31,596 ÷ 0.08

       = $394,950.00

Therefore, the today's worth of Kennedy's cash flows is $394,950.00.

3. How much more are Kennedy's cash flows worth today than Cameron's cash flows?

This is calculated as follows:

Difference = PVp of Kennedy - PVo of Cameron

Difference = $394,950.00 - $381,587.218205026

                 = $13,362.78  

Therefore, Kennedy's cash flows worth today is $13,362.78 more than Cameron's cash flows worth today.

Answer:

The proper adjusting journal entry at January 31 would: a) include a credit to Supplies for $400

Explanation:

On January 7, Bravo purchased supplies on account for $1,000, and recorded this purchase to the Supplies account by the entry:

Debit Supplies account $1,000

Credit Accounts Payable $1,000

At the end of January, Bravo had $600 of these supplies still on hand. Supplies were used in January = $1,000 - $600 = $400

The adjusting journal entry at January 31:

Debit Supplies Expense $400

Credit Supplies account $400

At the end of January, Bravo should debit the Supplies Expense for $400 and credit the Supplies for $400 to account for the used supplies.

The most appropriate adjusting journal entry for Bravo at the end of January would include a debit to Supplies Expense for $400 and a credit to Supplies for $400. The initial $1,000 supplies purchase was recorded in the Supplies account, and by the end of January, only $600 of supplies were still on hand. This means that $400 of supplies were used up. Therefore, to reflect the consumed supplies, you debit the Supplies Expense account for the used portion ($400), showing as an expense for January, and credit the Supplies account, decreasing it by the same amount.

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Answer:

Explanation:

The two choices under consideration are building 4 million units of capacity in North America

YEAR                         1                    2                           3  

Production and Sales 4,000,000.00   4,000,000.00   4,000,000.00  

Variable cost @ 10  40,000,000.00   40,000,000.00   40,000,000.00  

Divide by:

Conversion Factor  1.33                         1.33                     1.33  

Multiply by:

Growth(.1*.5)+(-.05*.5) 1.025                        1.025^2                  1.025^3  

NET CASHFLOWS  30,827,068.00   31,597,744.00   32,387,688.00  

DCF @ 10%     0.909090909           0.83                  0.75  

Present Values  28,024,607.27   26,113,838.02   24,333,349.36  

NET TOTAL COST 78,471,794.65  

or building 2 million units of capacity in each of the two loca-tions. Building two plants will incur an additional one-time cost of $2 million.

YEAR                  0            1                      2                              3  

Production and Sales       4,000,000.00      4,000,000.00   4,000,000.00  

Variable cost @ [(10+9)/2] 38,000,000.00  38,000,000.00   38,000,000.00  

Additional cost  2,000,000.00      

Conversion Factor     1.33     1.33                   1.33                       1.33  

Growth(.1*.5)+(-.05*.5)    1.025               1.025^2              1.025^3  

CASHFLOWS  1,503,759.40  29,285,714.29  30,017,857.00  30,768,304.00  

DCF @ 10%       1           0.909090909    0.826446281 0.751314801  

Present Value 1,503,759.40  26,623,376.62   24,808,146.28   23,116,682.19  

NET TOTAL COST = 76,051,964.50  

DECISION: The manufacturer should build 2 plants in 2 different locations because it gives a lower net present cost

At what initial cost differential from building the two plants will the chemical manufacturer be indifferent between the two options?

The difference in both options came from the fact that variable cost is lower in Europe and building the plant is more expensive. If there is no increase in cost and variable cost is same everywhere, then both options will be same.

The decision for the chemical manufacturer's capacity setup requires analyzing long-run costs, economies of scale, and variable costs against the backdrop of possible currency exchange fluctuations, to determine which option yields the best financial outcome over three years.

The chemical manufacturer is considering two options for capacity setup: building 4 million kg capacity in North America only or splitting the capacity with 2 million kg in each location of North America and Europe. To tackle this, it is essential to evaluate the long-run costs and economies of scale to determine the most cost-efficient option. Given the difference in variable costs between North America and Europe (after converting euros to USD), and the potential changes in exchange rates, a detailed financial analysis should consider the expected net present value (NPV) of both setups using the provided discount factor and exchange rate forecasts.

Furthermore, since the chemical firm is a constant cost industry and production costs are consistent regardless of quantity, the decision primarily revolves around considering the one-time additional cost, differences in variable costs, and the implications of exchange rate fluctuations. An indifference analysis should find the initial cost differential that makes the NPVs of both options equal, by integrating the additional fixed cost and variable costs over the three-year period using the provided probabilities and the discount rate.

Final answer:

The current value of Oriole Corp's stock is calculated using the dividend discount model and is $30.85. This accounts for the dividends paid out in the next four years and the present value of perpetuity starting in year 5 with a constant growth rate.

Explanation:

To determine the current value of Oriole Corp's stock, given its future dividend payments and the constant growth rate thereafter, we apply the dividend discount model (DDM). We will present value (PV) each dividend, assuming a required rate of return of 17.5%. After the first four years, the stock will pay a constant dividend that grows at 8% per year. The formula for the present value of a perpetuity (which is a type of DDM where dividends grow at a constant rate) is PV = D / (r - g), where D is the dividend at the start of the perpetuity, r is the required rate of return, and g is the growth rate.

First, we calculate the present value of dividends for the next four years:

Then, we calculate the present value of the perpetuity starting in year 5:

PV = $3.00 * 1.08 / (0.175 - 0.08) = $3.24 / 0.095 = $34.11

This perpetuity value needs to be discounted back 4 years:

PV = $34.11 / (1 + 0.175)^4 = $17.60

Finally, we sum all these present values to find the current value of the stock:

Current Value = $4.26 + $4.52 + $2.92 + $1.55 + $17.60 = $30.85

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Selling price= $70 per hour

Unitary variable cost= $45 per hour.

The average fixed costs= $3,600 a month.

First, we need to calculate the break-even point in hours:

Break-even point= fixed costs/ contribution margin

Break-even point= 3,600 / (70 - 45)= 144 hours

Now, we must include the desired profit to the break-even formula:

Break-even point= (fixed costs + desired profit)/ contribution margin

Break-even point= (3,600 + 2,000) / 25= 224 hours

Finally, we recalculate the break-even point with the new changes:

Break-even point= 3,400/ (70 - 48)= 175 hours

The revenue and gross profit are recognized at the completion of the construction contract in 2023, being $10,000,000 and $1,800,000 respectively. The journal entries post debits to Construction in Progress for each year until the job's completion in 2023. The partial balance sheets for 2021 and 2022 show Construction in Progress, Billings on Construction Contract, and Deferred Revenue.

The construction contract between Westgate Construction Company and Santa Clara County is recognized as a point in time recognition contract, meaning that revenue and gross profit are recognized upon the completion of the contract - not gradually during the construction.

For the revenue and gross profit recognition in each of the three years:2021, 2022, no revenue or gross profit is recognized as the project is ongoing.2023, revenue is recognized at $10,000,000 (the contract value), and gross profit is recognized at the revenue value subtracts the total costs of $8,200,000 (=$2,400,000+$3,600,000+$2,200,000), which equals $1,800,000.

For the journal entries:2021: Debit Construction in Progress $2,400,000, Credit Various accounts $2,400,000.2022: Debit Construction in Progress $3,600,000, Credit Various accounts $3,600,000.2023: Debit Cost of Goods Sold $2,200,000 and Accounts Receivable $4,000,000, Credit Construction in Progress $8,200,000, Revenue $10,000,000 and Various accounts $2,200,000.

For the partial balance sheet related to the contract:2021: Current assets include Construction in Progress of $2,400,000 and Billings on Construction Contract of $2,000,000, and current liabilities include Deferred Revenue of $2,000,000.2022: Current assets include Construction in Progress of $6,000,000 and Billings on Construction Contract of $6,000,000, and current liabilities include Deferred Revenue of $6,000,000.

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Westgate Construction Company recognizes all revenue and costs at the point of completion (2023), resulting in a gross profit of $1,800,000. All necessary journal entries and partial balance sheets for 2021 and 2022 have been provided. The computations are based on contract-determined parameters.

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

Revenue and Gross Profit/Loss Calculation:
Since the contract does not qualify for revenue recognition over time, all revenue and costs are recognized at the point of completion (2023).

2-a. Journal entries for the year 2021

2-b. Journal entries for the year 2022

2-c. Journal entries for the year 2023

3. Partial Balance Sheets for 2021 and 2022

Answer:

Sponsored link

Explanation:

Sponsored link: A paid advertisement that shows up on search engines such as Google in hypertext form when a search is done using some keywords. The advert are product and services that relates to the searched word.

Sponsored link is one of the most effective ways of advertisement on the Internet because it generate significant results. Sponsored link generates traffic on the website of the one advertising.

The link provided by SunDay Holidays is a sponsored link, which is an online advertising method where companies pay search engines to display their website links upon relevant keyword searches.

The link provided by SunDay Holidays is an example of a sponsored link, which is a form of online advertising. By paying , the company ensures that a link to its website appears prominently when users search for keywords related to holidays or vacations. These sponsored links are strategically placed on the search results page to gain more visibility and therefore potentially more traffic to their site. They can appear at the top, on the side, or even on the bottom of the search results, and they are a significant source of revenue for search engines

platform is designed to allow companies of all sizes to buy advertising space in specialized niches, thereby enabling even smaller businesses to target potential customers effectively. The service uses sophisticated algorithms to display ads relevant to what users are searching for or based on their browsing history, as noted in the examples of ads for athletic shoes appearing after conducting related searches.