Final answer:
True. As a channel captain, Frito-Lay should offer special pricing to retailers for high-volume purchases during promotional periods to effectively manage the supply chain and stimulate demand.
Explanation:
As a channel captain in a supply chain, Frito-Lay is responsible for leadership and coordination activities to optimize the flow of products from producers to consumers. One such activity is offering special pricing to retailers who make high-volume purchases during promotional periods. The answer to whether this statement describes activities that Frito-Lay should undertake as a channel captain is A. True. This strategy is aligned with the goals of managing the supply chain effectively, stimulating demand, and ensuring that retailers are incentivized to stock up and promote Frito-Lay's products, particularly during high-traffic sales periods, thus maximizing the potential for turnover and profit.
Retained Earnings at the beginning and ending of the accounting period was $850 and $1,800, respectively. If revenues were $3,300 and dividends paid to stockholders were $750, expenses for the period must have been:
A. $1,650.
B. $1,000.
C. $ 650.
D. $1,450.
Answer:
$1,600 (Not given in the options)
Explanation:
Retained earnings is the accumulated balance of an entity's net income over the years. Change between the opening retained earnings and the closing retained earnings of an entity is due to the net income/loss for the period and amount of dividend declared and paid during the period.
Opening retained earnings + net income - dividend = closing retained earnings
850 + net income - 750 = 1800 (all amounts are in $)
net income = 1800 + 750 - 850
= $1700
Net income is the difference between revenue and expenses.
Hence the expenses for the period
= $3,300 - $1,700
= $1,600
Marketing scholars who believe the ________ believe three exposures to an advertisement are needed: one to make consumers aware of the product, a second to show consumers the relevance of the product, and a third to remind them of the product
Answer:
C) three-hit theory
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $303,500 after deducting Robert's $91,050 salary. In addition to his compensation, ABC pays Robert dividends of $212,450. a. What is Robert's qualified business income? $303,500 (This answer is correct) b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050? $________
Answer: $303,500
No
Explanation: Qualified business income QBI allows sole shareholders of eligible businesses (S corporations, sole proprietorship) such as Robert to lessen their tax burden by up to 20 percent. In this case, 20% of $303,500 can be deducted.
QBI will not change as reasonable compensation is not actual compensation, so this does not apply to QBI.
However, If his salary increases to $181,050, this would make Robert ineligible to qualify for the deduction as his income is more than the $157,500 threshold that makes a single taxpayer eligible for QBI.
This amount is $315,000 for a married couple filing a joint return.
4-21 (Algo) Reporting an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO4-2 Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. UNADJUSTED Account Titles Debit Credit Cash 18 Accounts receivable 15 Prepaid insurance 10 Machinery 77 Accumulated depreciation Accounts payable 11 Wages payable Income taxes payable Common stock (8,000 shares) 8 Additional paid-in capital 57 Retained earnings 9 Revenues (not detailed) 78 Expenses (not detailed) 25 Totals 154 154 Other data not yet recorded at December 31 include
Answer:
Income statement
revenue 78000
expenses (25000 )
insurance (7000 )
depreciation (9000 )
EBIT 37000
TAX (11000)
net income 26000
EPS 3.25
STATEMENT OF STOCKHOLDER'S EQUITY
Common stock retained earnings additional paid in capital
opening 8000 9000 57000
net income 26000
closing 8000 35000 57000
BALANCE SHEET
assets
non current assets 154000
machinery 77000
accum depreciation (20000)
carrying value 57000
current assets 36000
prepaid insurance 3000
cash 18000
accounts receivables 15000
total assets 190000
Equity and liabilities
stockholdr's equity 100000
common stock 8000
Retaine earnings 35000
paid in capital 57000
Liabilities 90000
current liabilities 90000
Accounts payable 11000
wagages payable 4000
income tax payable 75000 balancing figure
Explanation:
missing information;
Other data not yet recorded at December 31 include:
Insurance expired during the current year, $7.
Wages payable, $4.
Depreciation expense for the current year, $9.
Income tax expense, $11.
Required:
1. Using the adjusted balances, prepare an income statement for the current year. (Round "Earnings per share" to 2 decimal places. Enter your answers in thousands.)
2. Using the adjusted balances, prepare statement of stockholders’ equity for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
3. Using the adjusted balances, prepare balance sheet for the current year. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
Most viewers of the sitcom Blonde Dream also watch Euphony, a music-based reality show, which is broadcast immediately after Blonde Dream.
An ad for Savor chocolates placed during both of these shows would most likely result in:
A. average coverage.
B. unduplicated reach.
C. duplicated reach.
D. increased sweeps periods.
E. high cost per thousand.
Answer:
The correct answer is letter "C": duplicated reach.
Explanation:
Duplicated reach refers to an advertisement that could have been seen by the same individual in the audience through different mediums. The activity receives the name of duplicated reach but the promotion can reach people through multiple ways such as television, radio, the internet, social media, billboards, to mention a few.
In the example, the Savor chocolate advertisement has a double reach since it is portrayed during the transmission of two different TV shows using one single channel (television).
You learn that the Volonian government has canceled the trade licenses of several firms in the e-learning market in the past due to censorship issues.
In this situation, what measures are most likely to help Gerlach Publishing acquire a trade license?
Answer:
The measures is to get the Government in developing and shaping of contents of the e-learning software.
Explanation:
By getting the Government agent(s) or authority in the development and shaping of contents of the software, you are not only creating harmony with the local government but also ensuring that the agent helps scrutinizing the content of the software and also ensuring that the software does not contain any content that is objectionable to the government and this measure will definitely help Gerlach Publishing acquire a trade license.
To acquire a trade license in Volonia, Gerlach Publishing should adhere to local regulations, ensure their content respects societal norms, engage local legal consultants, and maintain open communication with authorities.
Explanation:In light of the Volonian government's previous cancellation of trade licenses in the e-learning market due to censorship issues, the approach Gerlach Publishing should take needs to focus on compliance and transparency. This includes strict adherence to local regulation laws and ensuring non-violation of any censorship rules.
Depicting strong commitment towards promoting free and respectful dialogue in their e-learning materials could be beneficial. This can be achieved by implementing robust internal review processes to ensure all content is suitable and respects the norms and values of Volonian society.
Engaging local legal consultants to understand the nuances of Volonian law can also aid in the process. Lastly, establishing and maintaining open communication with the authorities demonstrating their dedication to lawful practices could be advantageous.
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Alan Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. Alan has recently come into an inheritance of $410,900. He estimates that the boat he wants will cost $334,300 when he retires in 6 years. Click here to view factor tables How much of his inheritance must he invest at an annual rate of 4% (compounded annually) to buy the boat at retirement? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)
Answer:
$264202
Explanation:
We use the present value formula to calculate the money to be invested now in order to get 334300
PV = FV *1/(1+R)^n
334300*1/(1.04)^6
=$264202
Production-constrained decision. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Contribution margin of product. A. unanswered Interference with other production.B. unanswered Contribution margin per unit of limited resource.C. unanswered Selling price of supplier.D. unanswered Sales revenue at split-off point.
Answer:
D. unanswered Sales revenue at split-off point.
Explanation:
Product contribution margin is the economic term used to describe a situation where a product sold generates revenue large enough to pay for all its production and distribution costs and expenses and still generate a profit for the company. In other words, this term refers to the money that is left over from the revenue generated from the sale of the product, after all of your production expenses have been paid. Sales revenue not being answered at the point of separation.
Answer:
nope
Explanation:
nope
Ajax Corp's sales last year were $400,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio
Answer:
3 times
Explanation:
Times Interest earned is a financial ratio that shows how many times an entity's net income or earnings before interest and taxes can be used to settle the company's interest expense.
It is given as the ratio of earnings before interest and tax to interest expense.
Earnings before interest and taxes is the difference of sales and operating costs.
= $400,000 - $362,500
= $37,500
Hence, the firm's times-interest-earned (TIE) ratio
= $37,500/$12,500
= 3
Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store, the store should a. Decrease the prices on the goods sold in the store b. Increase the parking rates c. All of the above d. None of the above
Answer:
a. Decrease the prices on the goods sold in the store
Explanation:
When the parking rates are increased, customers will be discouraged from coming to Firm X's grocery store as they know they will have to pay an extra an amount of money just to shop at your grocery store. Therefore customers will not want to come to the grocery store, thereby reducing the traffic at the store.
On the other hand, decreasing the prices on the goods sold in the store will attract more customers as their purchasing power has been increased. This in turns increases the traffic at the store.
Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. Apr. 16 Purchased 6,000 shares of Gem Co. stock at $24.00 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $55.00 per share. 20 Purchased 1,500 shares of Xerox stock at $15.00 per share. Aug. 15 Received a(n) $0.95 per share cash dividend on the Gem Co. stock. 28 Sold 3,000 shares of Gem Co. stock at $30.75 per share. Oct. 1 Received a $1.60 per share cash dividend on the PepsiCo shares. Dec. 15 Received a $1.10 per share cash dividend on the remaining Gem Co. shares. 31 Received a $1.00 per share cash dividend on the PepsiCo shares. Required: 1. Prepare journal entries to record the preceding transactions and events.
Explanation:
April 16: Dr Short-term investment (6000*24) 144000
Cr Cash 144000
(To record purchase of shares of Gem co)
July-7: Dr Short-term investment (3000*55) 165000
Cr Cash 165000
(To record purchase of shares of pepsico)
July-20. Dr Short-term investment (1500*15) 22500
Cr Cash 22500
(To record purchase of shares of Xerox)
Aug-15. Dr Cash (6000*.95) 5700
Cr Dividend income 5700
(To record cash dividend of Gemco)
Aug-28. Dr Cash (3000*30.75 ) 92250
Cr Short-term investment (3000*24) 72000
Cr Gain on sale of investment(3000 * 6.75 N#1) 20250
(To record sale of shares of Gemco ).
Oct-1. Dr Cash (1.60 *3000) 4800
Cr Dividend income 4800
(To record cash dividend of pesico)
Dec-15. Dr Cash ( 6000*1.60) 9600
Cr Dividend income 9600
(To record cash dividend or remaining shares of gemco)
Dec-31. Dr Cash (3000*1.00) 3000
Cr Dividend income 3000
(To record cash dividend )
[N#1: 24-30.75= 6.75 *3000 = 20250]
Eleven years ago, you deposited $3,200 into an account. Seven years ago, you added an additional $1,000 to this account. You earned 9.2 percent, compounded annually, for the first 4 years and 5.5 percent, compounded annually, for the last 7 years. How much money do you have in your account today
Answer:
The money which the person have in account today amounts to $8,073.91
Explanation:
The amount of money which the person have in account today is computed as:
Future Value = {Present Value × (1+ Percent) ^ Number of years }+ {Present Value × (1+ Percent) ^ Number of years}
where
Present value is $3,200
Percent is 9.2%
Number of years is 4 years
Present value is $1,000
Percent is 5.5%
Number of years is 7 years
Putting the values above:
Future value = {$3,200 × (1+ 0.092) ^ 4 }+ {$1,000 × (1+ 0.055) ^ 7}
Future value = $8,073.91
Voltar Company manufactures and sells a telephone answering machine. The company's contribution format income statement for the most recent year is given below:
Total Per unit Pct. of sales (Ratios)
Sales $1,200,000 $60 100%
Less: variable expenses 900,000 45 ?%
Contribution margin 300,000 15 ?%
Less: fixed expenses 240,000
Net operating income $60,000
(a) What is the Contribution Margin (CM) Ratio (or percent of sales)?
(b) Calculate break-even point both in total units and total sales dollars.
Answer:
A. Contribution Margin Ratio = 25%
B. Break even point (In dollars) = $960,000
Break even point (in units) = 16,000
Explanation:
The computation of Contribution Margin Ratio and break-even point both in total units and total sales dollars is given below:-
A. Contribution Margin Ratio = Contribution ÷ Sales × 100
= $300,000 ÷ 1200,000 × 100
= 25%
B. Break even point (In dollars) = Fixed cost ÷ Contribution margin ratio
= $240,000 ÷ 25%
= $960,000
Break even point (in units) = Break even point ÷ price per unit
= $960,000 ÷ $60
= 16,000 Units
Final answer:
The Contribution Margin (CM) Ratio for Voltar Company is 25%. The break-even point is 16,000 units or $960,000 in sales dollars, essential for understanding financial planning and strategy.
Explanation:
Answering the question provided by the student about Voltar Company's telephone answering machine, we first address part (a) which asks for the Contribution Margin (CM) Ratio. The CM ratio is calculated by dividing the contribution margin by total sales. In this case, the contribution margin is $300,000, and total sales are $1,200,000, making the CM ratio 25% (300,000 / 1,200,000).
For part (b), finding the break-even point involves calculating both the number of units and the total sales dollars needed to cover all expenses. The break-even point in units is found by dividing the total fixed expenses by the contribution margin per unit, which in this case would be $240,000 / $15 = 16,000 units. To find the break-even point in sales dollars, multiply the break-even units by the sale price per unit, resulting in 16,000 units * $60 = $960,000.
These calculations help businesses understand how many units they need to sell to cover their costs and start generating profit, a crucial aspect of financial planning and strategy. The CM ratio and break-even analysis are fundamental concepts in business operations.
Massa Machine Tool expects total sales of $60,000. The price per unit is $10. The firm estimates an ordering cost of $25 per order, with an inventory cost of $0.70 per unit. What is the optimum order size?
Answer:
The optimal order size is 654.
Explanation:
As we know that: EOQ = Squareroot (2DS/H)
where :
S= ordering cost = $25 per order
H = Holding cost per unit = 0.70 per unit
D= Annual demand,sales = 60000/10 = 6000 units
Solution:
= Squareroot ( 2 * 6000 * 25 ) / 0.70
= Squareroot (300000/0.70)
= Squareroot (428571)
EOQ = 654
Final answer:
The optimum order size is 6000 units.
Explanation:
To determine the optimum order size, we need to consider the total cost and the quantity of units. The formula for total cost is (ordering cost + inventory cost), and the formula for quantity of units is (total sales / price per unit).
In this case, the ordering cost is given as $25 per order, and the inventory cost is $0.70 per unit. The total sales are $60,000, and the price per unit is $10.
Using the formulas, we can calculate the optimum order size:
Calculate the quantity of units: 60000 / 10 = 6000 unitsCalculate the ordering cost: 25Calculate the inventory cost: 0.7Calculate the total cost: (25 + 0.7) * 6000 = 15300Therefore, the optimum order size is 6000 units.
To prepare for success, an aspiring entrepreneur should find a(n) _____ who is leading the type of life that the entrepreneur envisions for the future and who can be a guide and sounding board as well as champion and gateway to people the entrepreneur would otherwise not have been able to meet.
Answer:
Mentor
Explanation:
Mentor is an individual that is perceived as being more experienced and successful in a particular field, the less experienced person learns from the mentor with an aim of becoming like the mentor.
It is important for an aspiring entrepreneur to get a mentor who will advise on best actions to take in building a successful business, and also pitfalls to avoid.
It is possible to have more than one mentor, for example mentor in business, in personal development, in academics, and so on.
Gregory Trout has just received a memo explaining that because of his department's success with the newly developed Trout, Inc., that his request for three new employees has been approved. Gregory now faces the challenge of working with the areas of human resource management in recruiting, selecting, training and maintaining effective employees.
In recruiting and selecting employees for the new positions, Gregory will apply which human resourcemanagement goal?
a.Implementing strategies
b.Managing talent
c.Maintaining an effective workforce
d.Finding the right people
e.Controlling strategies
Answer:
Right choice: d.
Explanation:
As the George's area of expertise had effectively fulfilled the requirements of the new evolved Trout , Inc. IT may happen that work will be expanded. This will require Goerge to build the workforce those are having ranges of abilities that coordinates the Trout, Inc. needs. Hence, while enlisting and selecting for the new position Georgy will apply HRM objective of finding the correct arrangement of individuals for the necessary undertaking.
Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint
Answer:
1 unit of X must be sacrifised to gain a unit of Y, with satisfying Budget Constraint .
Explanation:
Budget Line shows the product combinations that a consumer can buy with given prices & money income (spending all) . Equation : P1X1 + P2X2 = M
Price ratio slope of the budget line i.e = P1/P2 : shows the amount of a good needed to be sacrifised to gain a unit of the other good , given prices & income.
So, Price Ratio : PX / PY = 2 / 2 = 1 in this case; implies 1 unit of Good X is needed to be sacrifised to gain a unit of good Y with given prices & income.
Final answer:
Mitchell must give up 2 units of X to consume an additional unit of Y, due to the equal prices of goods X and Y ($2 each) and his Marginal Rate of Substitution (MRS) being 2 at bundle J. This satisfies his budget constraint without altering his total spending.
Explanation:
In the context of consumer choice theory, when a consumer like Mitchell faces a budget constraint, he must decide how to allocate his income across different goods to maximize his utility. Given that Mitchell's money income is $150, the price of good X is $2, and the price of good Y is also $2, Mitchell initially chooses to buy 50 units of X and 25 units of Y, forming bundle J.
At bundle J, Mitchell's Marginal Rate of Substitution (MRS) is given as 2. This means that Mitchell is willing to give up 2 units of X for every additional unit of Y he consumes in order to maintain the same level of utility. To satisfy the budget constraint, the consumer must adjust consumption when the price or budget changes. If Mitchell wants to increase his consumption of Y by 1 unit without changing his spending, he must calculate how many units of X to forgo.
Given that the price of X and Y are the same, which is $2, and the MRS is 2, Mitchell must give up 2 units of X to gain 1 additional unit of Y to remain on his budget line. Therefore, the budget constraint and the MRS together determine that Mitchell will consume 2 fewer units of X. This allows Mitchell to reallocate the resources spent on X to purchase an additional unit of Y.
Gugenheim, Inc., has a bond outstanding with a coupon rate of 6.4 percent and annual payments. The yield to maturity is 7.6 percent and the bond matures in 20 years. What is the market price if the bond has a par value of $2,000?
Answer:
Price of the bond is $1,757
Explanation:
Coupon payment = 2000 x 6.4% = $128 annually
Number of periods = n = 20 years
Yield to maturity = 7.6% annually
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $128 x [ ( 1 - ( 1 + 7.6% )^-20 ) / 7.6% ] + [ 2,000 / ( 1 + 7.6% )^20 ]
Price of the Bond = $128 x [ ( 1 - ( 1.076 )^-20 ) / 0.076 ] + [ 2,000 / ( 1.076 )^20 ]
Price of the Bond = $1295.03 + $462.15
Price of the Bond = $1,757.18
To calculate bond's market price, plug in the coupon rate, yield to maturity rate, number of periods (years till maturity), and the face value into the bond value formula. The outcome will give you the market price of the bond. The market price of the bond may be different from its face value depending on the prevailing interest rates and the creditworthiness of the issuing company.
Explanation:The subject of this question pertains to the financial topic of bond pricing. Gugenheim, Inc., a fictional company, has a bond with a 6.4 percent annual coupon rate and a yield to maturity rate of 7.6 percent. The bond is set to mature in 20 years and has a par value, also known as face value, of $2,000.
To calculate the current market price of the bond, we have to take into account the bond's face value, coupon rate, maturity rate, and yield to maturity. The coupon payments would be $128 per year (6.4% of $2000) for the next 20 years and the return of the face value at the end of maturity. The yield to maturity, which is the rate of return anticipated on a bond if it is held until maturity, is 7.6%.
Calculations:The formula for the value of a bond is C (1-(1 / (1+ r) ^n) / r) + FV / (1 + r) ^n, where C is coupon payment, r is yield to maturity, n is the number of periods, and FV is face value.
Applying the given numbers:
PV = $128 [1-(1/(1 + 0.076)^20) / 0.076] + $2000 / (1 + 0.076)^20
Therefore, the market price or present value of this bond would be the computed price from the above formula, concluding our explanation on bond pricing.
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The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 9.0 hours Standard variable overhead rate $ 15.40 per hour The following data pertain to operations for the last month: Actual hours 2,975 hours Actual total variable manufacturing overhead cost $ 46,595 Actual output 250 units What is the variable overhead efficiency variance for the month
Answer:
$11.165 unfavorable
Explanation:
The formula to compute the variable overhead efficiency variance is shown below:
= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour
where,
Actual direct labor hours is 2,975
And, the standard direct labor hours equal to
= 250 units × 9
= 2,250
Now put these values to the above formula
So, the value would equal to
= (2,975 - 2,250) × $15.40
= $11.165 unfavorable
You hear from a friend that you should invest in bonds, and that Pepsi Co should be a solid (safe) investment because everyone drinks Pepsi. After looking up the information, you find the following. Calculate the current price you Pepsi Co bonds would cost today. Assume that the bond is based off of the highlighted portions as seen to the right, and that the YTM is 3.27%
Issue Date: 2/24/2016
Coupon rate: 2.850%
Maturity Date: 2/24/2026
Number of payments per yr: 2
insert the following information:
PV
I/Y
N
PMT
FV
Answer:
$964.42 approx.
Explanation:
Current value of a bond is the present value of it's future stream of coupon payments as well as it's redemption value upon maturity.
Here, coupon rate = 2.850/2 = 1.425% per period
N = no of periods = 10 years × 2 = 20 periods
Face Value = $1000 assumed
Yield to maturity (YTM) = 3.27/2 = 1.635%
Present Value or [tex]B_{0}[/tex] shall be calculated as:
[tex]B_{0} = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +........+\ \frac{C}{(1\ +\ YTM)^{20} } \ + \frac{RV}{(1\ +\ YTM)^{20} }[/tex]
[tex]B_{0} = \frac{14.25}{(1\ +\ .01635)^{1} } \ +\ \frac{14.25}{(1\ +\ .01635)^{2} } \ +........+\ \frac{14.25}{(1\ +\ .01635)^{20} } \ + \frac{1000}{(1\ +\ .01635)^{20} }[/tex]
[tex]B_{0}[/tex] = 16.94 × 14.25 + 722.99 = 241.4280 +722.99
[tex]B_{0}[/tex] = $ 964.418
Thus, current price of the bond is $964.42 approx.
Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $72,000 each month. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. (Do not round intermediate calculations. Round "CM ratio" to the nearest whole percentage (i.e., 0.234 should be entered as "23") and other answers to the nearest whole number.)
Answer:
1. New CM RATIO = 0.4
2. BEP (unit sales) = 21,000 units
BEP (in dollars) = $630,000
Explanation:
The original data table is attached.
1. CM Ratio:
The contribution margin is what is left after all variable expenses is subtracted from sales.
The CM Ratio is that amount divided by sales. So we can say:
CM Ratio = (Sales - Var Expenses)/Sales
From the table, we see sales as 585,000 and variable expenses as 409,500
This is original data, but we are given that $3 variable expense per unit is LESS. So, we take that into account and find new variable expense.
Since 19,500 units accounts to variable expense of 409,500:
Var Exp Per Unit = 409,500/19,500 = 21
Now, $3 less per unit, so Var Exp Per Unit (NEW) = 21 - 3 = 18
So, total Var Exp (NEW) = 19,500 units * 18 per unit = 351,00
New CM RATIO = (585000 - 351000)/585000 = 0.4
2. BEP (units) and BEP (dollars)
The Break-Even Point has formula:
BEP (units) = Total fixed cost/ CM Per Unit
Fixed Cost previously was 180,000. Now, 72,000 increased because of automation. Hence,
Fixed Cost (NEW) = 180000 + 72000 = 252,000
Also:
CM Per Unit is Sale Price Per Unit - Var Cost Per Unit
We know Sale Price is $30 and NEW VAR COST PER UNIT is 18
So, CM Per Unit = 30 - 18 = 12
BEP (units) = 252,000/12 = 21,000 units
BEP (in dollars) = Total Fixed Cost/CM Ratio = 252000/0.4 = $630,000
Does the firm need to alter its choices of C and L to decrease cost? A. Yes, they need to increase Upper Lincrease L which would cause MP Subscript Upper LMPL to decreasedecrease and MP Subscript Upper CMPC to increaseincrease. B. Yes, they need to increase Upper Cincrease C which would cause MP Subscript Upper LMPL to increaseincrease and MP Subscript Upper CMPC to decreasedecrease. C. Yes, they need to increase Upper Lincrease L which would cause MP Subscript Upper LMPL to increaseincrease and MP Subscript Upper CMPC to decreasedecrease. D. Yes, they need to increase Upper Cincrease C which would cause MP Subscript Upper LMPL to decreasedecrease and MP Subscript Upper CMPC to increaseincrease. E. No, they are producing at the cost minimizing levels of C and L.
Answer:
Yes, they need to increase Upper L which would cause MP Subscript Upper L to decrease and MP Subscript Upper C to increase.
Explanation:
In the specific problem outlined above, the company wants to maximize its revenue and ensure that the production cost is as low as possible for the given quantity of land, cement and the available labor. In order to ensure that this is possible, the company must try to increase the upper L so that there would be an increase in MP (subscript upper C) and a decrease in MP (subscript upper L).
In order to encourage employee ownership of the company’s $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 15% discount. During March, employees purchased 50,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. Required: Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan.
Answer:
The appropriate journal entry to record the March purchases of shares under the employee share purchase plan are as follows:
Debit: Cash ($12 × 85%) × $50,000 = $510,000
Debit: Compensation Expense ($12 × 8%) × $50,000 = $90,000
Credit: Common Stock = $50,000
Paid in Capital – Excess of Par ($50,000 × $11) = $550,000
WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring new hourly staff for night shifts. Which of the following terms best describes this process?
a. Churning.
b. Restructuring.
c. In violation of the WARN Act.
d. Spinning off employees.
Answer:
A. Churning
Explanation:
Employee Churning is also known as employee turn-over which is an act of laying off employees while recruiting new ones. It is a measure always taken to conserve a company's limited resources. The turnover rate is given as the percentage of employees being laid off or leaving workers over a period of time. There are a lot of factors contributing to churning such as downsizing through attrition either due to recession or scarcity of company's resources.
Required information Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contributed the following assets: Basis Fair Market Value Kevan: Cash $ 15,000 $ 15,000 Land* 120,000 440,000 Totals $ 135,000 $ 455,000 *Nonrecourse debt secured by the land equals $210,000 Each member received a 33.33 percent capital and profits interest in the LLC. (Leave no answer blank. Enter zero if applicable. Do not round intermediate calculations.) e. Prepare a tax basis balance sheet for Albee LLC showing the tax capital accounts for the members. What is Kevan’s share of the LLC’s inside basis? (Enter any capital account with a debit balance as a negative amount.)
Answer: A: $0.None of the members recognize gain because their debt relief was not in excess of their bases in their LLC interest prior to any debt relief.
B: $55,000
C: $285,000
D: $625,000 Albee, LLC takes a $135,000 carryover basis in the assets Kevan contributes and a $490,000 basis in the total cash the other two members contributed.
Explanation: check attached file
In March 2007March 2007, the U.S. unemployment rate was 4.44.4 percent. In August 2008 August 2008, the unemployment rate was 6.16.1 percent. Predict what happened to unemployment between March 2007March 2007 and August 2008 August 2008, if the labor force was constan
Answer:
A Recession happened.
Explanation:
When the market sees a recession we see an increase in the unemployment rate due to cyclical unemployment whenever there in a business cycle even though the labor force was constant but in a recession companies face a lot of costs which become higher than their revenue so for example when there is a recession the cost of producing 1 more unit is actually higher than the revenue a firm gets from producing that 1 unit because marginal cost increases at a decreasing rate so they have to lay off people at a firm on that unit of production to maximize revenues.
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Answer:
The question says ; Determine the total interest expense for Year 1, using the interest method.
Explanation:
Total interest expense = Issue price x Market rate x TimeIssue price = $37,282,062market rate = 8%Time = December 31 - June 30 which is approximately 6monthsPlugging the values in the equation ;
= 37282062 x 8% x 6/12 = $1491282.48Total interest expense = $1491282.48
Losses on purchase commitments are recorded at the end of the current year when:______.A. The purchase contract is irrevocable.B. The contractual cost of the inventory in an irrevocable purchase contract exceeds the current cost.C. The current cost of the inventory is less than the inventory cost in the purchase contract.D. The buyer purchased a quantity of inventory that was not sufficient to avoid a LIFO liquidation.
Losses on purchase commitments are recorded at the end of the current year when the contractual cost of the inventory in an irrevocable purchase contract exceeds the current cost.
Explanation:
In order to recognise a failure, both qualities are needed.
The organisation must fulfil a deal by charging more than current costs over a later period and is therefore at the end of this year in a losing situation.
In the financial statements of the preceding journal entry the purchasing obligation loss is recorded. The deduction is the deficit reported in the company's income statement in the time during which price declines happened.
Harman International Industries is a world-leading producer of loudspeakers and other electronics products, which are sold under brand names like JBL, Infinity, and Harman/Kardon. The company reported the following amounts in its financial statements (in millions): 2016 2015 Net Sales $ 6,910 $ 6,155 Cost of Goods Sold 4,820 4,340 Beginning Inventory 695 665 Ending Inventory 705 695 Required: Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. (Use 365 days in a year. Round your intermediate and final answers to 1 decimal place.)
Answer:
Inventory Turnover Ratio
2016 --- 6.9
2015 --- 6.4
Average Days To Sell Inventory
2016 --- 53
2015 --- 57.2
Explanation:
The formula to calculate Inventory Turnover Ratio is as follows:
Cost of Goods Sold / Average Inventory
where Average Inventory = (Opening Stock + Closing Stock) / 2
Whereas, 365 is divided by Inventory Turnover Ratio to get the number of days it takes to sell inventory.
I've attached a screenshot of my workings, it will be helpful. Thanks!
n a perfectly competitive industry, the equilibrium price is $56 and the minimum average total cost of the industry's firms is $40. If this is a constant-cost industry, we can expect that in the long run, firms will _____ the market, shifting the industry's short-run supply curve _____.
Answer:
A perfectly competitive industry is an industry in which the number of buyers and sellers is very large, none large enough to influence the industry and are all engaged in buying and selling of a homogeneous product. In perfect competition, equilibrium is the point where market demands equals market supply. A firm's price is determined at this point. In the short run, equilibrium will be affected by demand. In the long run, both demand and supply of a product will affect the equilibrium in perfect competition.
In constant-cost industry, where the equilibrium price is $56 and the minimum average total cost of the industry's firms is $40, we can expect that in the long run, firms will enter the market, shifting the industry's short-run supply curve outward until the new equilibrium price is $40.