Answer:
Paul = $616.44
Amy = $1883.56
Explanation:
Given
Full Amount = $2,500
There are 90 days between January 1, 2018 and April.
Calculating the amount generated by Paul;
Paul = $2,500 * 90/365
Paul = $616.4383561643835
Paul = $616.44 ---- Approximated
There are (365-90)days left after April 2, 2018 till December 31, 2018
Calculating Amount Generated by Amy
Amy = $2,500 * (365-90)/365
Amy = $2,500 * 275/365
Amy = $1883.561643835616
Amy = $1883.56 --- Approximated
That is the total allowable deduction for Paul and Amy
Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful accounts (beginning balance) 11,370 Net credit sales 944,000 Collections 908,000 Write-offs of accounts receivable 5,300 Collections of accounts previously written off 1,800
To create the T-account balance sheet, we list the bank's reserves, loans, and government bonds as assets, and the deposits as liabilities. Subtracting the liabilities from the assets, we find the net worth to be $220.
Explanation:To set up a T-account balance sheet for the bank, we must list the bank's assets on one side and the liabilities and net worth (equity) on the other. The assets of the bank include its reserves and any loans it has made or government bonds it has purchased. The liabilities are primarily the deposits from customers. Net worth is calculated by subtracting total liabilities from total assets.
Bank's T-Account Balance Sheet:
Assets:
Reserves: $50Loans: $500Government Bonds: $70Liabilities:
Deposits: $400To calculate the bank's net worth, subtract the total liabilities from the total assets:
Total Assets = Reserves + Loans + Government Bonds = $50 + $500 + $70 = $620
Total Liabilities = Deposits = $400
Net Worth = Total Assets - Total Liabilities = $620 - $400 = $220
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,500 per month for the next three years and then $500 per month for two years after that. If the bank is charging customers 8.5 percent APR, how much would it be willing to lend the business owner?
Answer:
$56,048.70
Explanation:
Let's break the annuity into two streams of payments: $500 monthly for five years and $1,000 for three years. Then add the result :
PVA60 = $ 500×[1−1(1+0 . 085/12)600 .085/12] =$ 24 , 370. 59
PVA36 = $ 1, 000×[1−1(1+0. 085 /12)360 . 085/12]=$ 31 ,678 . 11
Therefore,
PVA60 + PVA36 = $ 24 , 370. 59 + $ 31 ,678 . 11 =$ 56 , 048 . 70
Final answer:
The bank would be willing to lend the business owner $76,854.90 based on the specified monthly payment amounts and the APR.
Explanation:
The bank would be willing to lend the business owner $76,854.90.
First, calculate the present value of the loan payments using the formula for the present value of an annuity: PV = PMT x [(1 - (1 + r)^-n) / r], where PMT = periodic payment, r = periodic interest rate, and n = total number of payments. For the $1,500 per month payments for three years at 8.5% APR,
PV = $1,500 x [(1 - (1 + 0.085/12)^-36) / (0.085/12)] = $46,276.05.
Next, calculate the present value of the $500 per month payments for two years using the same formula: PV = $500 x [(1 - (1 + 0.085/12)^-24) / (0.085/12)] = $30,578.85.
Finally, add the two present values together to find the total loan amount the bank would be willing to lend: $46,276.05 + $30,578.85 = $76,854.90.
The Tangier Company is considering eliminating the following product line: Product AXP Sales $ 44,000 Less variable costs: Raw materials 27,000 Direct labor 6,600 Contribution margin $ 10,400 Less fixed costs: Production costs allocated to products 15,800 Profit (Loss) $ (5,400 ) What amount of cost is avoidable if Tangier outsources production of this product
Answer:
= $33,600.
Explanation:
Avoidable costs are example of relevant costs. These are costs that are incurred as a direct consequence of taking a decision. All direct costs associated with a decision to produce are avoidable costs, which means such costs will not be incurred should Tangire Company decides not to produce.
Kindly note that items of general fixed costs which are usually allocated are not avoidable. Simply because they would be incurred either way whether or not production takes place.
The avoidable cost of Tangier sums:
Raw material cost + Direct labor cost
= 27,000 + 6,600
= $33,600.
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is
A) Work In Process Inventory 58,000
Raw Materials Inventory 58,000
B) Direct Materials 58,000
Indirect Materials 9,000
Work in Process Inventory 67,000
C) Manufacturing Overhead 67,000
Raw Materials Inventory 67,000
D) Work In Process Inventory 58,000
Manufacturing Overhead 9,000
Raw Materials Inventory 67,000
Answer:
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is
D) Work In Process Inventory $58,000
Manufacturing Overhead $9,000
Raw Materials Inventory $67,000
Gannon Company had the following information at December 31:
Finished goods inventory, January 1 $ 30,000
Finished goods inventory, December 31 90,000
If the cost of goods manufactured during the year amounted to $1,260,000 and annual sales were $1,650,000, the amount of gross profit for the year is
C) $450,000
Sales $1,650,000
Cost of goods sold
===============
Cost of goods manufactured $1,260,000
Add: Beginning FG inventory $30,000
Goods available for sale $1,290,000
Less : Ending FG inventory $90,000 $1,200,000
Gross profit $450,000
Explanation:
Suppose you are interested in selling your home and would like to clear a net value of $300,000.
If you have agreed to pay your broker a commission of 5.5% (no matter who ultimately is responsible for finding the buyer), what price must you sell the home for in order to meet your net profit (rounded to the nearest dollar)?A. $282,540
B. $300,000
C. $316,500
D. $317,460
Answer:
The correct answer is:
$317,460 (D.)
Explanation:
At the end of sales, after deducting the 5.5% commission of broker fee, the amount left as net value = $300,000. It can also be said that the total amount will be $300,000 + 5.5% of the total amount.
Let the price which the home is to be sold be "X"
From the statement above, the equation below can be written:
$300,000 + (5.5% of X) = X
X - (5.5% of X) = $300,000
Note that 5.5% of X = 5.5/100 × X = 0.055X
∴ X - (5.5% of X) = $300,000
= X - 0.055X = 300,000
0.945X = 300,000
X = [tex]\frac{300,000}{0.945} = 317,460.31[/tex]
= $317,460 (to the nearest dollars)
Final answer:
To clear a net value of $300,000 after paying a 5.5% commission, the home must be sold for about $317,460, which is the amount obtained by dividing the desired net by 0.945, accounting for the retained percentage after commission.
Explanation:
To determine the selling price of the home to clear a net value of $300,000 after paying a 5.5% broker commission, you need to set up an equation to account for the commission. Let's call the selling price P. The equation to represent this scenario is P - 0.055P = $300,000. Solving this equation for P will give us the required selling price to achieve the net value desired.
First, we can rewrite the equation as P(1 - 0.055) = $300,000. Doing the math, we get P = $300,000 / 0.945, which equals approximately $317,460. Therefore, the home must be sold for about $317,460 to meet the net profit after commission.
Following are the calculations to get the precise answer:
First, we calculate the percentage that the homeowner will receive after commission, which is 100% - 5.5% = 94.5%.
We then express the percentage as a decimal for calculation: 94.5% = 0.945.
Finally, we divide the desired net amount by the percentage the homeowner keeps: $300,000 / 0.945 = $317,460.05, which rounds to $317,460.
Therefore, the correct answer is D. $317,460.
Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000 and expenses of $630,000, not including its investment in Denber, and all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000. What is the amount of the noncontrolling interest's share of Kailey's income for 2019?a. $72,000.b. $22,000.c. $66,000.d. $24,000.e. $48,000.
Answer:
correct option is b. $22,000
Explanation:
given data
reported revenues = $810,000
expenses = $630,000
annual amount of amortization = $15,000
solution
we get here net income 2019 is
net income 2019 = revenue - expenses - amortization ........1
put here value
net income 2019 = $810,000 - $630,000 - $15,000
net income 2019 = $165,000
and
as here acquired stock on September
so we get here income for September to December that is
net income = $165,000 × [tex]\frac{4}{12}[/tex]
net income = $55000
and
non controlling interest is
non controlling interest = 40% of $55000
non controlling interest = $22,000
so correct option is b. $22,000
Final answer:
The noncontrolling interest's share of Kailey Corp.’s income for 2019 is calculated by taking 40% of Kailey's net income after typical expenses and amortization deductions. The net income is determined to be $165,000, of which the noncontrolling interest owns 40%, resulting in a share of $66,000.
Explanation:
To calculate the noncontrolling interest's share of Kailey's income for 2019, we need to calculate Kailey Corp.’s net income for the period after accounting for any amortization related to the acquisition by Denber Co. To start, we calculate the net income before the noncontrolling interest's share.
Revenues: $810,000Expenses: $630,000Amortization related to the acquisition: $15,000Net Income: $810,000 - $630,000 - $15,000 = $165,000Since Denber Co. acquired 60% of the common stock, the noncontrolling interest owns the remaining 40% of Kailey Corp. Therefore, we calculate the noncontrolling interest's share of Kailey's income as follows:
Noncontrolling Interest's Share of Net Income = 40% of $165,000 = $66,000
Therefore, the correct answer is $66,000.
On December 31, 2020, Berclair Inc. had 300 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berciair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $300 million. The income tax rate is 25%. Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2016. The options are exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. In 2017, $500 million of 8% bonds, convertible into 6 million common shares, were issued at face value. Required: Compute Berciair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.) Denominator Earnings per Share 0 Diluted < Prey. 8 of 10 Next >
Answer:
Basic Earnings Per Share = $299,640,000/291,858,904 shares = 1.03 per share
Diluted EPS = $299,640,000/(291,858,904 + 6,000,000) shares = 1.01 per share
Explanation:
300 million shares of common stock - 24 million Treasury Stock = 276 million shares outstanding
CALCULATION OF WEIGHTED AVERAGE NUMBER OF SHARES
Date Shares Weighting (months) Weighted Average
Jan 1 276,000,000 12/12 276,000,000
1st July 13,800,000(5% of 276) 6/12 6,900,000
13th Sept 30,000,000 109/365 days 8,958,904.11
Total 291,858,904
Profit attributable to common shares = Net Income $300,000,000 – (Preference Dividend of 0.09 x 4,000,000) $360,000 = $299,640,000
The formula for basic earnings per share is:
Profit or loss attributable to common equity holders of the parent business ÷
Weighted average number of common shares outstanding during the period
Basic Earnings Per Share = $299,640,000/291,858,904 shares= 1.03 per share
Diluted EPS will include $500 million of 8% bonds, convertible into 6 million common shares.
Diluted EPS = $299,640,000/(291,858,904 + 6,000,000)shares = 1.01 per share
If an investment of $35,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to reach a value of $44,089.92—assuming that no additional deposits or withdrawals are made during this time.
Answer:
Therefore the required time period is 3 years.
Explanation:
To calculate the number of period we are using the following formula of future value
Future value = [tex]C_0(1+r)^n[/tex]
[tex]C_0[/tex] is cash flow at period 0= $ 35,00
r = rate of interest = 8.00% = 0.08
n= number of periods = ?
Future value = $44,089.92
Substituting the values in the formula
[tex]44,089.92= 35,000(1+0.08)^n[/tex]
[tex]\Rightarrow (1+0.08)^n=\frac{44089.92}{35000}[/tex]
[tex]\Rightarrow(1.08)^n = 1.259712[/tex]
[tex]\Rightarrow (1.08)^n=(1.08)^3[/tex]
[tex]\therefore n= 3[/tex]
Therefore the required time period is 3 years.
When a sales contract is missing terms on when a payment is due, and if the involved parties have not had an established course of past conduct, the Uniform Commercial Code (UCC) requires that the payment be made at least seven working days before the seller makes delivery.
True or False?
Answer:
False
Explanation:
The provision of the Uniform Commercial Code as amended is that any missing terms such as price, quantity,location and expected time of delivery as well as payment terms can be added to the contract later on with consent of all parties involved or provided in compliance with other commercial codes.
In other words,the fact that payment should be made within seven working days when payment terms are missing is alien to Uniform Commercial Code.
The answer, therefore is false.
One night, a sheriff’s department helicopter lands a SWAT team in the yard of a rural residence suspected of containing a methamphetamine lab. After the raiding party disembarked, and as the pilot was turning the aircraft in a hover to depart, the helicopter's tail rotor contacted a barbed-wire fence and was damaged to the extent it will have to be replaced. No one was injured.
Analyze the NTSB notification and reporting requirements that apply, showing your analytical process clearly.
Answer:
The incident has to be reported to NTSB.
Explanation:
According to the rules set out by NTSB:
''An accident is defined as an occurrence associated with the operation of an aircraft that takes place between the time any person boards the aircraft with the intention of flight and all such persons have disembarked, and in which any person suffers death or serious injury, or in which the aircraft receives substantial damage. An incident is an occurrence other than an accident that affects or could affect the safety of operations.''
Even though there were no deaths or serious injury in this case, the helicopter’s tail is damaged to the point where it has to be replaced, it does under the definition of what an Aircraft Incident is as set-out by NTSB definitions and it becomes an incident that has to be reported to the NTSB. The operator is required to file a report and only then can be the tail section can be replaced.
Answer:
The accident must be reported immediately to NTSB by the operators of the helicopter (Sherrif Department), in line with the federal regulations. It is reported as an accident because it is an occurrence associated with operation of an aircraft that takes place between the time any person boards the aircraft with the intention of flight and all such persons have disembarked, and in with any person suffers death or serious injury, or which the aircraft receives substantial damage.
The analysis of the report must be in the form OR must contain information under listed below:
Type, nationality, and registration marks of the aircraft;
Name of owner, and operator of the aircraft;
Name of the pilot-in-command;
Date and time of the accident;
Last point of departure and point of intended landing of the aircraft;
Position of the aircraft with reference to some easily defined geographical point;
Number of persons aboard, number killed, and number seriously injured(in case there is deaths or severe injuries)
Nature of the accident, the weather and the extent of damage to the aircraft, so far as is known;
A description of any explosives, radioactive materials, or other dangerous articles carried(The rural area, where the SWAT team conveyed by the crashed helicopter is containing a methamphetamine lab)
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $420,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 5%, the bonds will issue at $452,737. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solution:
Jan 01, 2018
Cash $452,737
bonds payable $452,737
June 30,2018
Interest expense 13,655
bonds payable 1055
cash 12600
Dec 31,2018
Interest expense 13,692
bonds 12600
Three stocks have share prices of $37, $115, and $85 with total market values of $540 million, $490 million, and $290 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value?
Answer:
Index value is $79
Explanation:
Index value calculation comes from the prices of the underlying holdings. Most indices have values based on market-cap weighting, revenue-weighting, float-weighting, and fundamental-weighting.
For index calculations, weighted average mathematics is used as values are derived from a weighted average calculation of the value of the total portfolio. As such, price-weighted indexes will be more greatly impacted by changes in holdings with the highest price, market cap weighted indexes will be most greatly impacted by changes in the largest stocks, and so on depending on the weighting characteristics.
Price index = average of share prices
Price index = [tex]\frac{37+115+85}{3}=\frac{237}{3} =79[/tex]
Price index = $79
The index value of a price-weighted index made up of three stocks with prices of $37, $115, and $85 is calculated by summing the prices and dividing by the number of stocks, resulting in an index value of $79.
To construct a price-weighted index of the three stocks with share prices of $37, $115, and $85, you would first sum the prices of the stocks. The formula for a price-weighted index is the sum of the stock prices divided by the number of stocks, which in this case is 3.
Sum of stock prices = $37 + $115 + $85 = $237
Then, you divide this sum by the number of stocks to get the index value:
Index value = $237 / 3 = $79
Therefore, the index value for these three stocks would be $79.
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 250
Revenue ($440.00q) $ 110,000
Expenses:
Wages and salaries ($11,800 + $128.00q) 43,800
Supplies ($3.00q) 750
Equipment rental ($2,100 + $22.00q) 7,600
Insurance ($4,000) 4,000
Miscellaneous ($530 + $1.48q) 900
Total expense 57,050
Net operating income $ 52,950
Required:
During May, the company’s activity was actually 240 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.)
Answer:
Explanation:
Calculation of items needed for construction of budget:
During May, the company’s activity was actually 240 diving-hours. So all items should be calculated with 240 diving-hours instead of 250.
Revenue = Revenue per diving hour* Diving hours = 440*240 = $105,600
Wages and salaries = $11,800+$128*240 = $42,520
Supplies = $3*240 = $720
Equipment rental = $2100 + $22*240 = $7380
Miscellaneous = $530 + $1.48*240 = $885
Flexible budget
For the month ended May 31
Revenue 105,600
Less: Expenses
Wages and salaries (42,520)
Supplies (720)
Equipment rental (7380)
Miscellaneous (885)
Insurance (4000)
Total expenses 55,505
Net income 50,095
Kevin is a retired teacher who lives in Philadelphia and teaches tennis lessons for extra cash. At a wage of $40 per hour, he is willing to teach 7 hours per week. At $50 per hour, he is willing to teach 10 hours per week. Using the midpoint method, the elasticity of Kelvin's labor supply between the wages of $40 and $50 per hour is approximately, which means that Kelvin's supply of labor over this wage range is:_______.
Kelvin's supply of labor over this wage range is 3.80
Explanation:
This is Price elasticity supply issue, and wages / hours are independent variables.
Price elasticity of supply tests the response to the supply of a product or service following a shift in its market price. The supply of a good will increase as its prices rise according to basic economic principles. On the other hand, when its price declines, goodwill supplies decline
So, PES ( Kevin's labor) = {(10-7)/[(10+7)/2)} /{(50-40)/[(50+40)/2]}
= 24.75/6.5 = 3.80
The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is $200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company’s net income? What is its net cash flow?
Answer:
A. The net income task is $450,000
B. The net cash flow is $650,000
Explanation:
Part A
The net income can be calculated thus;
Earnings before Income Tax for Moore corporation = $750,000
Less Income tax (40%) = 0.4 x $750,000 = $300,000
Net Income = $750,000 - $300,000 = $450,000
Therefore the net income task is $450,000
Part B
The net cash flow can be calculated thus;
Earnings before Income Tax for Moore corporation $750,000
The Depreciation expense is = $200,000
Less Income tax as calculated in part A = $300,000
Net Cash Flow = ($750,000 + $200,000 ) - ($300,000) = $650,000
Therefore the net cash flow is $650,000
The Moore Corporation's net income is $450,000, calculated by subtracting the company's taxes from the EBIT. The net cash flow, calculated by adding back the depreciation expense to the net income, is $650,000.
Explanation:The calculation of a company's net income and net cash flow begins with its operating income, or Earnings Before Interest and Taxes (EBIT), which is $750,000 in this case. From this, you need to subtract the company's taxes. Since the Moore Corporation is 100% equity financed and has a 40% tax rate, the calculation for taxes would be $750,000 * 0.40 = $300,000. Subtracting taxes from the EBIT, we find the net income to be $750,000 - $300,000 = $450,000.
The net cash flow can be found by adding back the depreciation expense to the net income. In this scenario, the depreciation expense is $200,000, so $450,000 (net income) + $200,000 (depreciation expense) = $650,000. Therefore, the company's net cash flow is $650,000.
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Neeley Grocery has a monthly target operating income of $25,000. Variable expenses are 20% of sales and monthly fixed expenses are $15,000. What is Neeley Grocery's operating leverage factor at the target level of operating income?
Answer:
1.6
Explanation:
In this question, we use the operating leverage factor that is shown below:
Operating Leverage Factor = Contribution ÷ Operating Income
where,
Contribution = Operating income + monthly fixed expenses
= $25,000 + $15,000
= $40,000
And, the operating income is $25,000
So, the operating leverage factor is
= $40,000 ÷ $25,000
= 1.6
The operating leverage factor is 1.6
Calculation of operating leverage factor:
Operating Leverage Factor = Contribution ÷ Operating Income
Here
Contribution = Operating income + monthly fixed expenses
= $25,000 + $15,000
= $40,000
And, the operating income is $25,000
So, the operating leverage factor is
= $40,000 ÷ $25,000
= 1.6
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At December 31, 2016, Teal Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,560 shares $10,856,000 Common stock, $5 par, 4,041,000 shares 20,205,000 During 2017, Teal did not issue any additional common stock. The following also occurred during 2017. Income from continuing operations before taxes $22,700,000 Discontinued operations (loss before taxes) $3,255,000 Preferred dividends declared $1,085,600 Common dividends declared $2,230,000 Effective tax rate 35 % Compute earnings per share data as it should appear in the 2017 income statement of Teal Corporation. (Round answers to 2 decimal places, e.g. 1.48.)
Solution:
TEAL CORPORATION
INCOME STATEMENT
DECEMBER 31, 2014
Net income:
Income from continuing operation before income tax 22,700,000
Income tax (35% * 22,700,000) 7,945,000
Income from continuing operations 21,905,500
Discontinued operations
Loss before taxes $3,255,000
Less applicable income tax (35%) 1,128,750 2,096,250
Net income 19,809,250
Preferred dividends declared $1,085,600
Weighted average common shares outstanding 4,041,000
Earnings per share:
Income from continuing operations
($21,905,500 - $ 1,085,600 )/ 4,041,000 21,905,499
Discontinued operations, net of tax
($2,096,250/4,041,000) 0.51
Net income
($19,809,250- $1,085,600)/4,041,000 19.7
A clothing retail company is deciding whether to use a traditional marketing research project approach or dive into a CRM system approach to guide their new year’s marketing strategy. Why should it use a CRM system approach?
A clothing retail company should opt for a CRM system over a traditional marketing research approach as it provides real-time data analytics, enables effective customer segmentation, and offers scalability and flexibility to adapt to market changes.
Explanation:A clothing retail company considering whether to use a traditional marketing research project approach or implement a CRM system should lean towards the latter for several reasons. Firstly, a CRM (Customer Relationship Management) system provides real-time data and analytics which can guide more informed decisions. This system can track customer behavior, preferences, and interactions with the brand across multiple channels, providing a holistic view of the customer journey. Secondly, a CRM system enhances the ability to segment customers based on varied criteria, facilitating more targeted and personalized marketing strategies. Using detailed customer profiles, the company can tailor their communications and promotions to meet specific customer needs. Lastly, CRM systems are designed for scalability and flexibility, enabling the company to easily adapt to changes in the market or in customer behavior without the need for starting new research projects from scratch. This adaptability is crucial in today's fast-paced retail environment in which trends and consumer preferences can shift rapidly. Overall, a CRM system can offer a dynamic and comprehensive approach to crafting a marketing strategy that is responsive to customers' evolving demands.
Silmon Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 5.1 grams $ 6.00 per gram
Direct labor 0.5 hours $ 13.00 per hour
Variable overhead 0.5 hours $ 2.00 per hour
The company produced 5,300 units in January using 39,410 grams of direct material and 2,390 direct labor-hours. During the month, the company purchased 44,500 grams of the direct material at $1.80 per gram. The actual direct labor rate was $20.30 per hour and the actual variable overhead rate was $6.90 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for January is:
Answer:
Material quantity variance =$74, 280 unfavorable
Explanation:
The material quantity variance occurs when the actual quantity of material used to achieve a given level of output is more or less than the standard quantity expected.
For Silmon Corporation, it can be computed as follows:
Quantity variance is
Gram
5,300 units should have used ( 5300× 5.1 ) 27,030
but did used 39,410
Variance in quantity 12,380 Unfavorable
Price per unit × $6
Material quantity variance $ 74,280. Unfavorable
Material quantity variance =$74, 280 unfavorable
Suppose that, historically, April has experienced rain and a temperature between 35 and 50 degrees on 20 days. Also, historically, the month of April has had a temperature between 35 and 50 degrees on 25 days. You have scheduled a golf tournament for April 12. If the temperature is between 35 and 50 degrees on that day, what will be the probability that the players will get wet
Final answer:
If the temperature on April 12 is between 35 and 50 degrees, the probability that it will rain, based on historical data, is 20/25, which simplifies to 4/5 or an 80% chance.
Explanation:
The question asks about the probability of rain given a specific temperature range. If historically April experiences rain on 20 days with temperatures between 35 and 50 degrees, and there are 25 days in April with temperatures in that range, one can assume these temperatures are a prerequisite for rain. If it is between 35 and 50 degrees on April 12, the probability that it will rain on that day can be calculated by dividing the number of rainy days within that temperature range (20 days) by the total number of days with that temperature range (25 days).
Thus, the probability that it will rain is 20/25, which simplifies to 4/5 or 0.80. Therefore, there is an 80% chance that the players will get wet during the golf tournament if the temperature is between 35 and 50 degrees.
Consider the following information for a simultaneous move game: If you charge a low price (LP) and your rival charges a LP, you each earn $5 million in profits. If both charge a high price (HP), each will each earn $10 million in profits. However, if one charge a LP and the other does not, the firm that charges a LP will earn $15 million and the other firm will earn $1 million. What is the Nash equilibrium of the game? a. Each firm charges a LP b. Each firm charges a HP c. You charge a LP and your rival charges a HP d. None of the above.
Answer: B. Each firm Charges a HP
Explanation:
Nash Equilibrium is a point where there is no incentive from deviating for each firm to deviate or change its strategy.
Firms reach Nash Equilibrium Point when they both charge high price (HP). When both firms charge high price (HP) each firm will earn 10 million dollars at this point there is no incentive for either firm to change and charge lower price because they will earn $ 1 million. Each firm will just choose to charge high price regardless of what the other firm is doing.
The Nash equilibrium of the game is a. Each firm charges a LP.
1. If both firms charge a Low Price (LP):
- Each firm earns $5 million.
2. If both firms charge a High Price (HP):
- Each firm earns $10 million.
3. If one firm charges a Low Price (LP) and the other charges a High Price (HP):
- The firm charging LP earns $15 million.
- The firm charging HP earns $1 million.
Analysis:
- If you charge LP:
- If your rival also charges LP, you earn $5 million.
- If your rival charges HP, you earn $15 million.
- If you charge HP:
- If your rival charges LP, you earn $1 million.
- If your rival also charges HP, you earn $10 million.
Best Response Analysis:
- If your rival charges LP:
- Charging LP earns you $5 million (better than charging HP which earns you $1 million).
- If your rival charges HP:
- Charging LP earns you $15 million (better than charging HP which earns you $10 million).
From this analysis, charging LP is always a better or equal strategy compared to charging HP, regardless of the rival's choice.
Nash Equilibrium:
In a Nash equilibrium, each player is making the best possible decision given the decision of the other player. Here:
- If both firms charge LP, neither can improve their payoff by changing their strategy unilaterally, because switching to HP would decrease their profit from $5 million to $1 million.
- If both firms charge HP, each earns $10 million, and neither can improve their payoff by unilaterally switching to LP (which would reduce their profit to $1 million).
Given that LP is the dominant strategy for both firms (it provides a higher payoff in all scenarios except when both charge HP), the Nash equilibrium is when both firms charge a Low Price (LP).
Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run (Qg =60 and Qs=270) and that the demands for gold and silver are given by the following equations:
Pg = 930− Qg +0.50 Ps and Ps = 600− Qs S + 0.50 Pg.
What the the equilibrium prices of gold and silver?
The equilibrium price of gold is$_______and the equlibrium price of siliver is $________. (Enter your responses rounded to two decimal places.)
What if a new discovery of gold doubles the quantity supplied to 120? How will this discovery affect the prices of both gold and silver?
The equilibrium price of gold will be $_______ and the equlibrium price of siliver will be$________.
Answer:
a) Gold = $1,380; Silver = $1,020
b) Gold = $1,300; Silver = $980
Explanation:
a) At first, with Qg = 60 and Qs = 270, the equilibrium prices for gold and silver are found by solving the following linear system:
[tex]P_g = 930-60 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1740 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,380\\P_s = 1,020[/tex]
Equilibrium price of gold is $1,380 and the price of silver is $1,020.
b) If the supply of gold increases to 120, since the goods are substitutes, there will be an increase in overall supply and the equilibrium price of gold and silver will decrease as follows:
[tex]P_g = 930-120 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1620 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,300\\P_s = 980[/tex]
Equilibrium price of gold is $1,300 and the price of silver is $980.
Final answer:
The equilibrium prices of gold and silver are $870 and $330 respectively. If the gold supply doubles, the new equilibrium price of gold is $750, while the price of silver remains unchanged at $330.
Explanation:
To find the equilibrium prices of gold (G) and silver (S), which are substitutes, we are given the quantities supplied (Qg and Qs), which are fixed in the short run, and the demand equations for each. The quantity supplied for gold is 60 and for silver is 270. We can set up the demand equations as:
For gold, Pg = 930 - Qg + 0.50 Ps, and for silver, Ps = 600 - Qs + 0.50 Pg.
We plug in the fixed quantities to find the equilibrium prices:
Pg = 930 - 60 + 0.50 Ps
Ps = 600 - 270 + 0.50 Pg.
After simplifying, the equations become:
Pg = 870 + 0.50 Ps
Ps = 330 + 0.50 Pg.
Substituting the second equation into the first, we find the equilibrium prices. The equilibrium price for gold (Pg) is $870 and for silver (Ps) is $330.
When considering a new discovery that doubles the quantity supplied for gold to 120, we have a new set of demand equations:
Pg = 930 - 120 + 0.50 Ps
Ps = 600 - 270 + 0.50 Pg, which reduces to
Pg = 810 + 0.50 Ps.
By solving these equations, we determine the new equilibrium prices after the discovery. The new equilibrium price for gold is approximately $750 and for silver, the price remains at $330.
On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $403,067 over a five-year lease term (also the asset's useful life), payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's Incremental borrowing rate is 8%, the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Inc. at a cost of $3.4 million. (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.) Required:
1. What pretax amount related to the lease would IC report In Its balance sheet at December 31, 2021?
2. What pretax amount related to the lease would IC report In Its Income statement for the year ended December 31, 2021? (For all requirements, enter your answers in whole dollars and not in millions. Round your final answers to the nearest whole dollar.) 1. 2. Pretax amount of net receivable Pretax amount of interest revenue
The balance sheet will reflect the present value of the remaining lease payments, and the income statement will show interest revenue earned by applying the incremental borrowing rate to the book value of the lease receivable.
To determine the pretax amount related to the lease that IC would report in its balance sheet at December 31, 2021, we need to calculate the present value of the remaining lease payments after the first payment has been made. Since the first payment is made at the start of the lease term, we consider it a prepayment, and the subsequent payments are discounted at the incremental borrowing rate, which is 8%. This calculation will give us the net lease receivable that IC reports on its balance sheet.
The pre-tax amount related to the lease that IC would report in its income statement for the year ended December 31, 2021, involves recognizing interest revenue. The interest revenue is calculated by applying the interest rate to the book value of the lease receivable at the beginning of the period. Since a payment was made on June 30, the interest for the first half-year should be calculated on the full lease receivable, while for the second half, it would be calculated after adjusting for the payment made.
Lindsey’s auto-insurance company issued her a policy that required the installation of a devise that monitors her driving habits. Lindsey is confused because she had never gotten into an accident before she bought the insurance. The insurance company is protecting itself against:
a.Adverse selection
b.Moral hazard
c.Bad drivers
d.None of the above
Answer:
b.Moral hazard
The insurance company is taking precautions against moral hazard, therefore they want to monitor their driving habit
Explanation:
Moral hazard is the type of hazard that occurs when a party Intentional gets careless or exposes them selves to risk because someone else is liable to bear the risk of whatever comes out of their actions. It occurs when the parties involved does not have complete information about one another.
You just ended a meeting with Ming (one of your six employees), who gave you some disturbing information. She feels she is being bullied by one of her coworkers and is seeking your advice on how to handle it. Ming said that Mindy has been saying "good morning" to everyone as she walks by their office but doesn’t say it to Ming. Ming also said that Mindy organized a farewell lunch for one of your departing employees last week and didn’t invite Ming. She also told you of nasty things that Mindy tells other colleagues about her. For example, last month when Ming ran into Mindy at the grocery store, Mindy told everyone the next day the medications that Ming had in her cart, which included medication for irritable bowel syndrome. Ming also showed you an e-mail that Mindy had sent blaming Ming for the loss of one of Mindy’s clients. Mindy had copied the entire department on the e-mail. Ming thinks that other employees have been reluctant to involve her in projects as a result of this e-mail. Ming left your office quite upset, and you think you may need to take some action. In your blog, discuss the following:
Do you think Ming is correct in saying Mindy is bullying her?
What are the indications of bullying?
What advice would you give to Ming?
How would you handle this situation with Mindy, without embarrassing Ming?
Answer:Do you think Ming is correct in saying Mindy is bullying her?
Yes , she is right, Mindy is definitely bullying her.
What are the indications of bullying?
Bullying doesn't only occur physically but also psychologically and and emotionally,especially in a place of work it can de identified by mistreatment of the other person,verbal abuse , threatening and humiliating the other person.
The bullied person is outcastes , alienated , excluded and ignored like what Mindy is doing, ignoring Ming while he greet everyone else , excluding her by not inviting her in a farewell lunch , eventhough all other colleagues are invited by Mindy.
Spreading false rumours is also part of bullying .
He also critized her publicly by publicly sharing an email about a loss of a client caused by Ming .
These are all signs of abuse.
What advice would you give to Ming?
She will need to keep record or document everything so that when she decides to take the matter further , she may be able to submit proof of what has been happening to her,this will give evidence.
How would you handle this situation with Mindy, without embarrassing Ming?
I think talking to Mindy in an objective way without including Ming's name will be helpful since Mindy has publicly shared his bullying activities. I can actual point out things that are not allowed at work and how certain things can be harmful and degrading to other employees. Make him see how certain behavior affects other employees and how this can be a serious issue that can affect the company and affects even Mindy himself .
Ming is accurate in her assessment of Mindy's bullying.
Demotivating the victim, generating false expectations with no plans to realize it, purposefully neglecting the victim are all signs of bullying. Removing someone from a community or making him feel emotionally or economically isolated is a form of intentional exclusion.
Making the victim believe that they are the source of the problem, Critiquing someone's work or conduct on a regular basis, frequently for unjustified reasons Withholding knowledge from someone or providing them incorrect information, for example.
Ming has experienced some with the above indications of workplace bullying. And it is well within her rights to advise her supervisor of this.
First and foremost, I would assure Ming that she will not have any such problems in the future, and that I will personally address this matter.
I'll speak with Mindy and try to grasp her perspective on such behavior. And I'll make her informed of the regulations that apply in our office, such as the fact that bullying is not tolerated in the workplace. And it will provide her with an opportunity to modify her conduct.
Learn more:
https://brainly.com/question/23352669?referrer=searchResults
Coupon payments are fixed, but the percentage return that investors receive varies based on market conditions. This percentage return is referred to as the bond’s yield.
Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the expected rate of return under certain assumptions. Which of the following is one of those assumptions?
a. The bond will not be called.
b. The bond has an early redemption feature.
Answer:
Option A - The bond will not be called is the correct answer.
Explanation:
The rate of return expected from a bond held until its maturity date is referred to as its Yield to maturity (YTM)
However, if YTM is equivalent to the return on the bond, then the assumptions are that bond will not be called, and the will not be defaulted by the user at maturity.
Thus the likelihood of the default is zero.
Therefore, option A - The bond will not be called is the correct answer.
In 2007, Americans smoked 19.219.2 billion packs of cigarettes. They paid an average retail price of $4.504.50 per pack. a. Given that the elasticity of supply is 0.50.5 and the elasticity of demand is negative 0.4−0.4, derive linear demand and supply curves for cigarettes. The demand equation is
Answer:
equation for demand is Q=26,906,880,000,150 - 1,706,666,666.7P
equation for supply is Q=9,609,600,000,150.2 + 2,133,333,333.3P
Pls find all other required parameters in the explanation
Explanation:
Let the demand curve be of the general form Q = a - bP
Let the supply curve be of the general form Q = c + dP
where a, b, c, and d are the constants that you have to find from the information given in the equation
To begin, recall the formula for the price elasticity of demand
E = (P/Q)(ΔQ/ΔP)
Where P is the price per pack = $4,504.50
Q is the quantity of packets= 19,219.2 billion
You are given information about the value of the elasticity E as -0.4
So solve for the slope, which is b in the above formula for the demand curve using the equation E = (P/Q)(ΔQ/ΔP
−0.4 = ($4,504.50/19,219200000000)(ΔQ/ΔP)
ΔQ/ΔP = −0.4(19,219200000000/$4,504.50)
= −1,706,666,666.7= −b.
To find the constant a, substitute for Q, P, and b into the demand curve formula
Q = a - bP
so
19,219200000000 = a - 1,706,666,666.7 × 4,504.50
19,219200000000 = a - 7,687,680,000,150.1
a = 19,219200000000 + 7,687,680,000,150.1
a = 26,906,880,000,150
The equation for demand is therefore
Q=26,906,880,000,150 - 1,706,666,666.7P.
To find the supply curve,
recall the formula for the elasticity of supply and follow the same method as above: E = 0.5
E= (P/Q)(ΔQ/ΔP)
0.5 = ($4,504.50/19,219200000000)(ΔQ/ΔP)
ΔQ/ΔP = 0.5(19,219200000000/$4,504.50)
= 2,133,333,333.3 = d.
To find the constant c, substitute for Q, P, and d into the supply curve formula
Q = c + dP so that
19,219200000000 = c + 2,133,333,333.3 × 4,504.50
19,219200000000 = c + 9,609,599,999,849.8
c = 9,609,600,000,150.2
The equation for supply is therefore Q=9,609,600,000,150.2 + 2,133,333,333.3P.
The central bank of the fictitious country "Alpha" raises bank reserves by $100. What effect will the increase in bank reserves have on the money supply in each of the following situations: a. If the banking system is a 100% reserve banking system, the money supply will increase by $ . b. The banking system is a fractional reserve banking system with a desired reserve deposit ratio of 0.25, the money supply will increase by $ .
Final answer:
In a 100% reserve banking system, the money supply will increase by the same amount as the increase in bank reserves. In a fractional reserve banking system with a desired reserve deposit ratio, the money supply can be calculated using the money multiplier.
Explanation:
In a 100% reserve banking system, the money supply will increase by the same amount as the increase in bank reserves. So, if the central bank of Alpha raises bank reserves by $100, the money supply will also increase by $100.
In a fractional reserve banking system with a desired reserve deposit ratio of 0.25, the money supply can be calculated using the money multiplier. The money multiplier is the reciprocal of the reserve deposit ratio. In this case, the money multiplier would be 1/0.25 = 4. So, if the central bank of Alpha raises bank reserves by $100, the money supply will increase by $100 x 4 = $400.
Benson Company manufactures special metallic materials for luxury homes that require highly skilled labor. Benson uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 2 pounds per unit; $ 4 per pound Direct labor: 4 hours per unit; $ 14 per hour Benson produced 5 comma 000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 30 comma 000 direct labor hours and actual total direct labor costs were $ 240 comma 000. What is the direct labor efficiency variance?
Answer:
Direct labor efficiency variance= $140,000 unfavorable
Explanation:
Giving the following information:
Standard requirements:
Direct labor:
4 hours per unit
$ 14 per hour
Benson produced 5,000 units during the quarter.
Actual cost:
Actual direct labor hours= 30,000
direct labor costs= $240,000
First, we need to calculate the standard total direct labor hours required to produce 5,000 units.
Total direct labor hours= 5,000*4= 20,000 hours
Now, we can calculate the direct labor efficiency variance:
Direct labor efficiency variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor efficiency variance= (20,000 - 30,000)*14= $140,000 unfavorable
It is unfavorable because the company used more direct labor hours than estimated.
Wimpy Inc. produces and sells a single product. The selling price of the product is $155.00 per unit and its variable cost is $62.00 per unit. The fixed expense is $341,460 per month. The break-even in monthly dollar sales is closest to_____________.a. $853,650b. $512,190c. $569,100d. $341,460
Answer:
Option c. $569,100Explanation:
At the break-event the profit is zero, or the total costs equal the revenue.
1. Revenue
Revenue, R(x), is the product of the price by the number of units sold (x).
R(x) = $155.00x2. Cost
The cos, C(x) is the sum of the fixed costs and the variable cost. The variable cost is the product of the variable cost per unit and the number of units sold:
C(x) = $341,460 + $62.00x3. Break-even
Make the equation R(x) = C(x) and solve:
341,460 + 62x = 155xx = 341,460/93x = 6,442.64 units ≈ 6,442.64 units4. Calculate the revenue with 6,442.64 units:
R(6,442.64) = 155(6,442.64) = $569,100