Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $67,000
Sales tax 5,600
Shipment of machine 920
Insurance on the machine for the first year 620
Installation of machine 1,840
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine.
Answers
Answer:
Debit: Machine $75,360
Debit: Insurance $620
Credit: Cash $3,380
Credit: Accounts Payable $72,600
Explanation:
Before the journal is prepared, we have to do some calculations and provide explanation as follows:
Apart from the insurance cost which will be reports as just insurance expenses for the year, all other costs in the questions are relevant costs that will be added together as the costs of the machine equipment as follows:
Machine cost = Purchase price + Sales tax + Machine shipment + Machine Installation
= $67,000 + $5,600 + $920 + 1,840
Machine cost = $75,360
Account payable and cash can also be calculated as follows:
Account payable = Purchase price + Sales tax = $67,000 + $5,600 = $72,600
Cash = Machine shipment + Machine Installation + Machine insurance = $920 + 1,840 + $620 = $3,380
Journal entries
Debit: Machine $75,360
Debit: Insurance $620
Credit: Cash $3,380
Credit: Accounts Payable $72,600
Being the record of purchase of new machine
Note: Also see the journal entries in the attached as a complement to the above.
The total cost of the machine purchased by Orion Flour Mills is recorded by capitalizing the purchase price, sales tax, shipment, insurance, and installation costs, summing up to $75,980. The machinery asset account is debited, and accounts payable or cash is credited accordingly for each expenditure.
Explanation:When Orion Flour Mills purchased a new machine, the total expenditures should be recorded as the cost of the machine on the company's books. The expenditures to be included are the purchase price of the machine, sales tax, shipment cost, insurance for the first year, and installation costs. Here is how each cost is recorded:
Purchase price: $67,000Sales tax: $5,600Shipment of machine: $920Insurance on the machine for the first year: $620Installation of machine: $1,840All these costs are capitalized as they are necessary to bring the machine to its intended use. Therefore, the journal entry to record the machine's cost would debit the machinery asset account and credit accounts payable for the purchase price plus sales tax, and debit machinery asset account while crediting cash for the other expenditures.
Journal Entry:
Debit Machinery $72,600 (Purchase Price + Sales Tax)Credit Accounts Payable $72,600Debit Machinery $3,380 (Shipment + Insurance + Installation)Credit Cash $3,380The total recorded cost of the machine will be $72,600 + $3,380 = $75,980.
Related Questions
Verizon Manufacturing Company spent $400,000 in 2019 to inspect incoming components. Of the $400,000, $240,000 is fixed appraisal costs. The variable inspection cost is $0.20 per component. It takes two components for each finished product. Internal failure costs average $80 per failed unit of finished goods. In 2019, five percent of all completed items had to be reworked. External failure costs average $200 per failed unit. The company's average external failures are one percent of units sold. The company manufactures all units as ordered and carries no materials inventories. Seeking to decrease its total cost of quality (COQ), Verizon contracted Quality-is-Free Consultants, Inc. (QIFC) to study ways to improve product quality and to reduce costs. Upon completion of the study, QIFC recommended automatic inspection equipment that requires a $60,000 annual cost for training and $150,000 for equipment rental and maintenance. The new equipment will eliminate $40,000 of the fixed appraisal costs, reduce the amount of unacceptable product units in the manufacturing process by 10 percent, and cut product failures by half. The company paid the consulting firm $100,000 in early January 2020 for the project. Verizon expects no changes in its operating level in the foreseeable future. How much are internal failure costs in total projected to change
Answers
Answer:
The question is incomplete, the option include:
$20,000 decrease. $45,000 decrease. $80,000 decrease. $160,000 decrease. is Correct$320,000 decrease.Explanation:
1. In 2019 the number of finished units with internal faults = $400,000 completed units * 0.05 = $20,000.
2. In 2020 the number of finished units with internal faults = $20,000* (1 -0.1) = $18,000.
3. In 2020, the projected cost of internal failure= $18,000 * $80= $1,440,000;
4. In 2019 the expense of internal failure= $20,000 * $80 = $1,600,000.
5. Projected shift in the cost of internal failure = $1,600,000 - $1,440,000 = decrease of $160,000
The projection of internal failure costs is calculated by comparing the current costs at a 5% failure rate with the costs after a reduction of the failure rate to 4.5% due to new inspection equipment.
Explanation:The question concerns the projection of internal failure costs for Verizon Manufacturing Company after implementing recommendations from Quality-is-Free Consultants, Inc. To calculate the change in internal failure costs, first identify the current internal failure rate and cost. With a failure rate of 5% and an average internal failure cost of $80 per unit, the current internal failure costs can be calculated. If the implementation of the new inspection equipment reduces this rate by 10%, the new failure rate would be 4.5%. The expected change in total internal failure costs is thus the difference between the initial total internal failure costs and the new projected costs after implementing recommendations.
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According to the World Bank, E.U. remittances to Senegal were $ 1,005,728,139 in 2015. Senegal's gross domestic product (GDP) was $ 13,779,570,750 in 2015. What percentage of Senegal's 2015 GDP is represented by the remittances? Round your answer to one place after the decimal.
Answers
Answer:
7.3%
Explanation:
To determine the percentage of Senegal's 2015 GDP that is represented by the remittances you have to divide the remittances by Senegal's GDP:
Remittances: $ 1,005,728,139
GDP: $ 13,779,570,750
$ 1,005,728,139/$ 13,779,570,750= 0.073*100= 7.3%
The percentage of Senegal's 2015 GDP that is represented by the remittances is 7.3%.
A city will serve as a conduit for federal grant money, which is sent to the city by the state government and must be remitted to various not-for-profit organizations that will use the money. The ultimate allocation of the money is decided by the state government. Which of the following terms describes the nature of this grant?(A) Agency grant(B) Fiduciary grant(C) Pass-through grant(D) Partial Grant
Answers
Answer:
(C) Pass-through grant
Explanation:
A pass-through grant occurs when a recipient of a grant is allowed by the government to provide funding to other recipients. Funds are received and passed along to other recipients.
The party that receives funding from the pass-through entity is called the subrecipient.
This usually occurs when government lacks the structure to effectively push grant initiatives.
In this instance when states provide funds to the city for onward delivery to not for profit organisations, the city is acting as a pass-through entity.
you have 10 pairs of socks,five black and five blue,but they are not paired up.instead they are all mixed up in a drawer.it is early in the morning and you do not want to turn on the light.
1. how many socks must you pull out to guarantee that you have a pair of one color?
2. how many must you pull out to have two good pairs(each pair is the same color)?
3. how many must you pull out to be certain that you have a pair of black socks? use a systematic approach to list all possible outcomes as a way to justify the answer in each case.
Answers
The answer for
1) 3 socks
2) 5 socks
3) 1 pair of socks
Explanation:
1) In the second trial, you choose one color, you say black, first, and second, say blue. The third sock you're taking out now has two black or brown. Therefore, you must draw at least 3 socks to ensure that you have a single color pair..
2) You get black first.
You're pulling out brown, second.
You tear down charcoal, Thrid.
Second, you cut out charcoal. (one pair complete)
Second, you're only heading out. (2 pairs full) Thus, you have to take out at least 5 socks to guarantee two pairs in the same colour.
3) You want 1 pair of black socks
The worst case is: [ 5 blu ]
The 6th pick guarantees you will have 1 pair of black socks
Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Cutting Department Production Data—July T12-Tables Work in process units, July 1 0 Units started into production 21,200 Work in process units, July 31 3,180 Work in process percent complete 60 Cost Data—July Work in process, July 1 $0 Materials 402,800 Labor 248,464 Overhead 110,240 Total $761,504 Compute the physical units of production. T12 Tables Units to be accounted for
Answers
Answer:
physical units 21,200
EU materials 21,200
EU conversion 19,928
Explanation:
Compute the physical units of production
Tables physical units of production during the month of July:
beginning 0
Started 21,200
Total physcal units 21,200
Equivalent units:
materials 21,200 as they are enterted at the beginning it matches the physcical units
conversion: 21,200 - 3,180 (1 - 0.60) = 19.928
we start 21,200 but 31,180 were completed until 60% thus we have 40% of 3,180 not completed that is subtracted.
Cost figures arise from the production function and factor payments in a company's manufacturing process. Costs are affected by labor, materials, overhead, and can be influenced by changes such as wage negotiations. Understanding economies of scale and revising costs due to fixed cost changes or wage increases are key to business decision-making.
Explanation:The origin of cost figures in the provided scenario can be attributed to the production function and factor payments within a manufacturing process. Specifically, these costs emerge from the inputs required to produce goods, including labor, materials, and overhead expenses. The production function can be exemplified by the number of widgets produced per worker, reflecting labor productivity. A change in the factor payments, such as a union-negotiated wage increase, can influence the production method by possibly prompting a shift towards more capital-intensive production with reduced labor input.
Understanding economies of scale is crucial when analyzing the cost figures. A plant's average production cost decreases as it scales up production due to the spreading of fixed costs over a larger quantity of goods. This is evident from a scenario where plants producing higher volumes enjoy a lower average cost per unit.
When considering changes in fixed costs or wages, such as a reduction from $14,000 to $12,000 or an increase in labor wages from $16 to $20 per hour, it is essential to revisit and adjust the costs of production accordingly to determine the impact on the business's decision to continue operations or modify its production strategy.
Dome Metals has credit sales of $180,000yearly with credit terms of net 60 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take the full 60 dys to pay. What is the average receivables balance? Receivables turnover?
Answers
Answer:
The average receivables balance is $29,589
The Receivables turnover is 6.08 times
Explanation:
Dome Metals has credit sales of $180,000 yearly and the average collection period of 60 days.
The average collection period = 365 days/Receivables turnover ratio = (365 days x average account receivables)/Credit Sales
Average account receivables = (The average collection period x Credit Sales)/365 = (60 x $180,000)/365 = $29,589
Receivables turnover ratio= 365/The average collection period = 365/60 = 6.08 times
The average receivables balance for Dome Metals is $29,605.26, and the receivables turnover is 6.08.
Explanation:In this example, Dome Metals has annual credit sales of $180,000 and an average collection period of 60 days. To determine the average receivables balance, divide the annual credit sales by the turnover rate (365/60 = 6.08). So, $180,000/6.08 results in an average receivables balance of $29,605.26.
Next, to compute the receivables turnover, we take the annual credit sales and divide them by the average accounts receivable. This means that Dome Metals' receivables turnover is 6.08.
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5b. MousePad Computer Company, in addition to its retail sales, conducts night classes in computer technology. MousePad has provided you the following information: Number of students 120 Revenue per student $450 Student-related variable costs $100 per student Salary for three instructors $1,800 each Administrative costs $30 per student Maintenance on building $15,000 per year Required: Construct a contribution margin format income statement.
Answers
Answer:
Net Income = $18,000
Explanation:
MousePad Computer Company
Contribution Margin Income statement
Revenue (120 students × $450) = $54,000
Less: Variable expenses:
Student-related costs (120 students × $100) = $12,000
Administrative costs (120 students × $30) = $ 3,600
Total variable expenses =($15,600)
Contribution Margin $38,400
Less: Fixed cost
Instructors salary (3 × $1,800) = $ 5,400
Maintenance on building = $15,000
Total fixed cost =$(20,400)
Net Operating Income =$18,000
Note:
Students cost is a variable expense, because if we decrease the student's number, the revenue and expenses will decrease proportionately. Moreover, the company is getting profit from the students.
Boston Company purchased equipment by signing a noninterest-bearing note with a face value of $64,800. The list price of the equipment is $50,000. Prepare the appropriate journal entry to record the purchase of the equipment.
Answers
Answer:
_____________________ __________________
Equipment $50,000 Debit
Discount on Note Payable $14,800 Debit
Note Payable $64,800 Credit
___________________ ___________________
Explanation:
The equipment that the boston purchased is an asset that have to debit the company in the journal entry. When an asset increase you have to debit the account. Therefore $ 50.000 equipment is a debit.
The noninterest-bearing note $64,800 its a note payable that you have to credit on the journal entry for being a liability.
With the purchased there is a discount on note payable,this is the difference of 64,800- 50,000 of the equipment purchased and so the discount is = $ 14,800.
A Swiss watch company advertises its history of superior craftsmanship. The company thinks that this would a. Make the demand for the product less elastic b. Make the customers less sensitive to the price c. Assist them with differentiating their product d. All of the above
Answers
Answer:
The correct answer is letter "B": Make the customers less sensitive to the price.
Explanation:
There are several reasons that could make products become elastic or inelastic. Reputation typically makes goods and services be considered inelastic. These types of products do not see a change in their quantity demanded in front of changes in price.
Thus, if a Swiss watch company promotes their history of superior craftsmanship is attempting to aware consumers about its watch quality and reputation so if they decide to increase prices consumers will be less sensitive to the change.
The correct answer is d) All of the above.
Explanation:The correct answer is d) All of the above.
When a Swiss watch company advertises its history of superior craftsmanship, it can have multiple effects on the demand for the product. First, it can make the demand for the product less elastic, meaning that consumers are less likely to be sensitive to price changes. This is because the craftsmanship and reputation of the company create a perception of high quality, which can make consumers willing to pay higher prices. Second, it can make the customers less sensitive to the price, as they value the craftsmanship and uniqueness of the product, which differentiates it from other watches in the market. Lastly, advertising the history of superior craftsmanship can assist the company with differentiating their product from competitors, as it highlights the company's expertise and reputation in producing high-quality watches.
Refresh produces soft drinks and sodas. Production of 103,000 liters was started in February, 88,000 liters were completed. Material costs were $52,020 for the month while conversion costs were $32,580. There was no beginning work-in-process; the ending work-in-process was 40% complete. What is the cost of the product that remains in work-in-process?a.$54,600 b.$51,000 c.$46,410 d.$38,220
Answers
Answer:
$79200
Explanation:
Equivalent production
=$88000+[40%*(103000-88000)
=94 000 units
Cost per unit
=(52020+32580)/94 000
=$0.9
Costs=88 000* $0.9
=$79 200
Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return the car. d. enforceable since it is for a necessary. e. none of the above
Answers
Answer:
The correct answer is letter "A": voidable.
Explanation:
Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.
Thus, Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).
ebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for Samson, Inc., under a long-term contract. The gross contract price was $2,300,000. Jebali finished construction in 2016 at a cost of $2,100,000. However, Samson insisted that Jebali redo the doorway; otherwise, the contract price would be reduced. The estimated cost of redoing the doorway is $80,000. In 2017, the dispute is settled and Jebali fixed the doorway at a cost of $65,000.
A) How much must Jebali include in gross income? What amount of deductions is Jebali allowed for 2016?
B) In 2017, how much must Jebali include in gross income? What amount of expenses can Jebali deduct in that year?
Answers
Answer:
Explanation:
2016 2017
Contract price = 2300000 2300000
Cost to date = (2100000) (2160000)
Further estimated Cost = (80000) 0
Profit = 120000 140000
Stage of completion = 2100/2180 = 96.33% 100%
As at Profit and loss
Revenue 2300*96.33 = 2215596.33 2300000
Profit 120*96.33 = -115596.3303 -140000
Cost of Sales = 2100000 2160000
For the period profit and loss
Revenue = 2215596 84404
Cost of sales = (2100000) 60000
Profit = 115596 24404
After Hiroshi’s client informs him that she was denied an apartment lease due to her race, he refers his client to the free legal clinic available to university students. This is an example from the ACA Advocacy Competency domain of_____________.a. Client\/Student Empowerment.b. Client\/Student Advocacy.c. Community Collaboration.d. Social\/Political Advocacy.
Answers
Answer:
The correct answer is letter "B": Client/Student Advocacy.
Explanation:
The American Counseling Association (ACA) Advocacy Competency describes the set of capabilities counselors can use to help students, clients or individuals of a population in front of cases problematic cases.
The Client/Student Advocacy refers to the power counselors have to act on behalf of students and clients in cases where the counselor has access to systems or processes students or clients do not. This advocacy is also useful when the clients do not want to engage in advocacy because they are afraid of retaliation.
The use of debt is called A. financial leverage. B. production leverage. C. operating leverage. D. total asset turnover risk. E. business risk. Reset Selection
Answers
Answer:
A- Financial leverage
Explanation:
The use of debt is called FINANCIAL LEVERAGE because it involve the use of debt or borrowed money rather than equity when an asset is purchased with the hope that the profit gain after deducting tax from the equity holder transaction will be higher than the borrowing cost.
Financial leverage is based on the used of borrowed money or debt to acquire an additional assets which will cause the returns on the owner's cash investment to be amplified.
The return on equity is increased through leverage leading to the excess amount of the financial leverage to increases the risk of failure, since it will becomes more difficult to repay back the debt or borrowed money.
Financial leverage is measured as the ratio of total debt to total assets meaning the greater the amount of debt , the greater the financial leverage.
Answer:
A. financial leverage.
Explanation:
Financial leverage refers to the use of debt in order to buy more assets. This is measured by comparing the ratio of total debt to total assets. This means that, as the proportion of debt to assets increases, so does the amount of financial leverage. As a very large amount of debt can be hard to pay, an excessive amount of financial leverage can greatly increase the risk of failure.
The statement of cash flows is: Multiple Choice A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date. Another name for the statement of financial position. A financial statement that presents information about changes in equity during a period. A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.
Answers
Answer:
The correct answer is: None of the above.
Explanation:
The Cash Flow Statement or Statement of Cash Flows shows how good a company manages its inflows and outflows of money over a certain period. It represents the ability firms have to generate cash to pay their debt. In this report, the cash flows are classified as operating activities, investing activities, or financing activities.
Many American companies enter china through joint ventures with local firms, but china is succeeding in the United States primarily with a strategy of buying companies outright. What are some factors that might account for this difference?
Answers
Answer:
(1) The preference of the Chinese firms to expand through outright purchase which aides them to retain key positions in order to have a firm control on the business.
(2) Chinese companies are ready to take more risk than American companies
(3) Chinese companies are more interested in opportunities to provide growth and innovation.
Explanation:A Joint venture business is a business organisation owned by two or more persons or organisations who pull resources together in order to achieve a common goal.
The resources pulled together can be in the form of finance, expertise,infrastructures etc, a joint venture business is also another form of merger known commonly with profit making organisations.
Differences in regulation, culture, market access, IP concerns, government support, risk perception, and market maturity influence American joint ventures in China and Chinese acquisitions in the U.S.
Several factors contribute to the difference in market entry strategies between American companies in China and Chinese companies in the United States:
1. Regulatory Environment : China's regulatory environment historically favored joint ventures as a means for foreign companies to enter the market, with the Chinese government often mandating local partnerships for certain industries. Conversely, the U.S. has generally had more open regulations regarding foreign ownership, allowing Chinese firms to acquire companies outright.
2. Cultural Differences : Chinese business culture tends to prioritize relationships and long-term partnerships. Joint ventures can be seen as a way to build trust and establish connections with local partners. On the other hand, American business culture often values independence and control, which may lead U.S. companies to prefer full ownership when expanding abroad.
3. Market Access : China's vast market and potential for growth may incentivize American companies to enter through joint ventures to gain quicker access and local expertise. Conversely, Chinese companies entering the U.S. market may have sufficient resources to directly acquire companies to gain immediate market share.
4. Intellectual Property Concerns : Some American companies may be wary of sharing intellectual property and proprietary technology in joint ventures in China, opting instead to retain full control through acquisitions in the U.S. market where intellectual property protection is generally stronger.
5. Government Support and Subsidies : Chinese government support and subsidies for overseas acquisitions, particularly for strategic industries, may encourage Chinese companies to pursue outright acquisitions in the United States as a means of expanding their global footprint.
6. Risk Management : American companies may perceive joint ventures in China as riskier due to concerns about regulatory changes, intellectual property theft, and potential conflicts with local partners. Acquiring companies outright in the U.S. may be seen as a more straightforward way to mitigate these risks.
7. Market Maturity : The maturity of the market also plays a role. China, being a developing market, might require closer collaboration and knowledge-sharing through joint ventures. In contrast, the U.S. market is more mature, and Chinese companies may find it easier to acquire existing businesses rather than starting from scratch.
These factors, among others, shape the differing strategies employed by American companies in China and Chinese companies in the United States.
Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franchised coffee shops. During her first month as store manager, Faith encountered the following internal control situations:
Faith caught an employee putting a case of 1,000 single-serving tea bags in his car. Not wanting to create a scene, Faith smiled and said, "I don’t think you’re putting those tea bags on the right shelf. Don't they belong inside the coffee shop?" The employee returned the tea bags to the stockroom.
I _______with Faith's method of handling this situation because she has _______the internal control principle of safeguarding of assets.
A. AGREEB. DISAGREEC. FOLLOWEDD. DID NOT FOLLOWED
Answers
Answer:
Disagree,did not followed
Explanation:
Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franchised coffee shops. During her first month as store manager, Faith encountered the following internal control situations:
Faith caught an employee putting a case of 1,000 single-serving tea bags in his car. Not wanting to create a scene, Faith smiled and said, "I don’t think you’re putting those tea bags on the right shelf. Don't they belong inside the coffee shop?" The employee returned the tea bags to the stockroom.
I disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets.
Internal control refers to a procedure or policy put in place by management to related measures and methods adopted in an organization to safeguard its assets, enhance reliability of accounting records, ensure compliance with laws and regulations and stop fraudulent behavior; this procedure might involve measures like physical security barriers, access restriction, locks and surveillance equipment.
g the three types of unemployment are A. voluntary, structural, and cyclical unemployment. B. frictional, structural, and cyclical unemploment. C. natural, unnatural, and cyclical unemployment. D. full, frictional, and involuntary unemployment. The type of unemployment most likely to result in hardship for the people who are unemployed is A. structural because this type of unemployment requires retraining to acquire new job skills. B. cyclical and frictional because these two types are closely related. C. frictional because people need to find a new job in the labor market. D. cyclical because people have to wait for a recession to end.
Answers
Answer: The three main types of unemployment are cyclical, frictional and structural unemployment. B
Explanation:
B. Cyclical and frictional are both related as they tend to cause more hardship because of its severity.
Financial markets :a. determine tax rates. b. increase transactions costs. c. reduce diversification. d. are the same as resource markets. e. provide liquidity.
Answers
Answer:
The correct answer is letter "E": provide liquidity.
Explanation:
Financial market describes any manner in which buyers and sellers meet for trading assets, usually financial securities such as stocks, bonds currencies, options, and derivatives. Financial markets are a cornerstone of the capitalist economy because they assist entrepreneurs and businesses in facilitating capital formation and liquidity.
Financial markets create liquidity by making the trading of financial holdings easy for buyers and sellers without the need of a physical market.
Financial markets play an important role in providing liquidity, fostering efficiency, and promoting diversification. They are made up of different entities that include firms and households. These markets provide a platform where firms aim to raise financial capital and households look for a desirable mix of rate of return, risk, and liquidity.
Explanation:The question pertains to the purpose and impact of financial markets. Financial markets, which include entities like firms in the goods market and households in the financial market, play an important role in our economy. They don't determine tax rates (Government does that), nor do they increase transaction costs. In fact, financial markets strive to reduce costs and foster efficiency.
Financial markets neither reduce diversification but promote it, as they allow investors to spread their risk across a variety of investments. Furthermore, financial markets are not the same as resource markets; the former deals with assets and securities, while the latter deals with labor, raw materials, and physical capital. Lastly, financial markets provide liquidity, which means that they enable investors to easily convert their assets into cash without a significant loss of value
Different entities like firms in the labor market, households in the goods market, and firms in the financial market interact within these markets. Firms aim to raise financial capital while households look for a desirable combination of rate of return, risk, and liquidity. This dynamic interplay highlights the critical role of financial markets in society.
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Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $ 60 comma 000 for proposal A and $ 75 comma 000 for proposal B. The variable cost is $ 13.00 for A and $ 11.00 for B. The revenue generated by each unit is $ 24.00.What is the break-even point in units for proposal A?What is the break-even point in units for proposal B?
Answers
Answer:
Proposal A: 5,455 units
Proposal B: 5,770 units
Explanation:
The break-even point is the number of units required for the revenue to equal the total costs.
For proposal A:
Fixed Costs = $60,000
Variable Costs = $13 / unit
Selling Price = $24 / unit
[tex](P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units[/tex]
For proposal B:
Fixed Costs = $75,000
Variable Costs = $11 / unit
Selling Price = $24 / unit
[tex](P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units[/tex]
Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.
Lisa Jameson has two job offers. One is from Pembroke Boats, a boat manufacturer that employs 200 people in a small Ohio town. Pembroke does not have an IT department and wants her to create one. The job position is called information coordinator, but she would be the only IT person. The other offer, which pays about $7,500 more annually, is from Albemarle Express, a nationwide trucking firm located in Detroit. At Albemarle Express, Lisa would be a programmer-analyst, with the promise that if she does well in her position, she eventually will move into a systems analyst position and work on new systems development. Lisa has heard a rumor that another company might acquire Albemarle Express, but that rumor has occurred before and nothing has ever happened. What should Lisa do, and why?
Answers
Answer:I personally think Lisa should accept the offer from Albemarle Express as a Programmer Analyst because annual pay is more in this offer. There is a high chance of career growth than starting from scratch and trying to make your way up like in the first offer.
Explanation:The first offer would be too demanding and it should be the one which has more pay than the second offer , considering the fact that Lisa would be creating the whole department from scratch and working alone. This second opportunity is the best more salary than the first offer , less demanding but with a higher opportunity for growth.
Lisa Jameson has to choose between a position at Pembroke Boats, offering her to lead an entire IT department, and a higher-paying role at Albemarle Express with career growth but potential job security risk. She'll need to account for personal preferences, professional goals, and the two companies' environments to make the best choice for her career path.
Explanation:Lisa Jameson is considering two job offers with different roles and benefits. The first offer is from Pembroke Boats, which gives her the opportunity to create an IT department and operate as an information coordinator. Although this might provide her with more responsibility and control, it comes with the challenge of establishing new systems alone. The second offer from Albemarle Express is for a programmer-analyst position, with a higher salary and a clear path for career advancement to systems analyst, but comes with the uncertainty of potential company acquisition. When making her decision, Lisa must weigh factors such as salary, career growth, job security, work environment, and personal career goals.
Moreover, Lisa should also consider where she would prefer to live, the company culture, and whether she is looking for a start-up like experience at Pembroke Boats or a more structured role at Albemarle Express. This decision can significantly affect her career trajectory and job satisfaction. Seeking advice from current or former employees and mentors in the field could also provide valuable insights. Ultimately, it is her personal and professional priorities that will guide her decision.
Indicate whether the following scenarios represent an increase, decrease, or no change in the long-run aggregate supply (LRAS) curve. Each label may be used more than once.
A.The mandatory retirement age in Wonkaland is abolished.
B.Wonkaland?s main export is candy. Candy from this country increases in popularity as consumers all over the world want to buy Wonkalandian candy.
C.Since candy from Wonkaland has become an international sensation, factories in Wonkaland double the number of candy making machines.
D.The top candy companies in Wonkaland chose to relocate their means of production to other countries around the world.
Answers
Answer:
A. increase
B. decrease
C. no change
D. no change
Explanation:
The long-run aggregate supply (LRAS) curve is the curve used to show how aggregate supply varies with changes in demand in the long run.
Let me explain each of the choices one after the other;
A. The mandatory retirement age in Wonkaland is abolished; this leads to an increase in long run supply because more people will be in the workforce, and more workers mean more production and more supply.
B. Wonkaland's main export is candy. Candy from this country increases in popularity as consumers all over the world want to buy Wonkalandian candy; an increase in demand from all over the world will cause number of supply to drop long term, because, lesser number of products will be distributed among a larger number of people.
C. Since candy from Wonkaland has become an international sensation, factories in Wonkaland double the number of candy making machines; initially as described in B above, the supply decreases, but if number of candy making machines are doubled, the supply that has decrease begins to rise again until it reaches its original point, hence causing no chance in the LRAS, because it s assumed that the new machines are used to satisfy the external demand.
D.The top candy companies in Wonkaland chose to relocate their means of production to other countries around the world; in the case of relocation, there will be no change in overall supply because the change is only in location and not in production capabilities, but locally, the supply might decrease in the place where they relocated from.
Who investigates complaints of the Holden Act and takes remedial action as required by law? The Department of Housing and Urban Development The Consumer Protection Office The California Secretary of Business, Transportation and Housing The Department of Commerce
Answers
Answer:
The Department of Housing and Urban Development
Explanation:
The Holden act or the California Housing Financial Discrimination Act of 1977, states that financial institutions cannot discriminate against people applying for loans or financial assistance, for reasons such as; race, color, ethnicity and religion.
The Holden act is enforced by the Department of Housing and Urban Development.
Non-interest bearing notes are initially recorded at______________.a.present value, based on the prevailing interest for loans of this type.b. maturity value because they bear no interest. c. future value, based on the prevailing interest for loans of this typed. historical cost.
Answers
Answer: A present value, based on the prevailing interest for loans of this type
Explanation:
A non interest bearing note is a debt for which there is no documented requirement for the borrower to pay the lender any rate of interest. If such a note were to be resold to a third party, the debt would be sold at a discount to its face value, so that the third party purchaser would eventually realize a gain when it was redeemed by the borrower at its face value
Apply strategies for self-improvement based on individual strengths and needs. I will score 25 goals in the soccer game. a. Yesb. No
Answers
Answer:
b. No
Explanation:
This is not an effective strategy for self-improvement. In this sentence, the author tells us that he believes he will be able to score 25 goals in a soccer game. This is extremely unlikely even for the best soccer players in the world. Therefore, the goal is unrealistic. By creating unrealistic or unachievable goals, we only make it more difficult for us to succeed, and the failiure that will inevitably follow can be damaging to our confidence. Therefore, when establishing goals, it is important that we are realistic.
In the context of scoring 25 goals in a soccer game, self-improvement strategies should be focused on enhancing existing skills and addressing areas of need, keeping the goal realistic. Practice, feedback, and self-reflection can aid in achieving this. The process requires patience and commitment.
Explanation:The approach of self-improvement based on individual strengths and needs involves setting realistic goals and continually assessing progress on these goals. In the context of your goal to score 25 goals in a soccer game, it is critical to evaluate this target against your current abilities and the opportunities you will have in the game. The target should be challenging but realistic.
Improvement strategies might focus on enhancing your current strengths, like speed or accuracy, and addressing areas of need, such as endurance or team coordination. These strategies can include deliberate practice, receiving feedback, and self-reflection. Whatever the strategy, remember that self-improvement is a gradual and ongoing process that requires patience and commitment.
Learn more about Self-improvement here:https://brainly.com/question/33698170
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Splish Corporation has retained earnings of $707,000 at January 1, 2020. Net income during 2020 was $1,428,500, and cash dividends declared and paid during 2020 totaled $85,000. Prepare a retained earnings statement for the year ended December 31, 2020. (List items that increase retained earnings first.)
Answers
Answer:
Explanation:
Statement of retained earning represent the changes in retained earning balance during the year and accumulated beginning balance of the period and Ending balance as well. It deals with all the adjustment in retained earning like net income transfer fro the year, dividend paid during the year etc.
Splish Corporation
Retained Earning Statement
for the year ended December 31, 2020
$
Retained Earning at January 1, 2020 707,000
Less: Cash Dividend paid during 2020 85,000
Add: Net Income for the year 2020 1,428,500
Retained Earning ath December 31 2020 2,050,500
Reread the Management Focus on Cemex and then answer the following questions: a) Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI? b) What is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy?
Answers
Complete Question:
Mexico's largest cement manufacturer, Cemex, has become a global powerhouse in the cement and construction industry.It currently controls 60 percent of the cement industry in Mexico (Hill 2009).Cemex's success is a result of a combination of efficient technology such as radio transmitters, satellites, and computer hardware that allow the company to anticipate changes in supply and demand and reduce waste.
Cemex's success is also a result of an attempt to dominate the industry by acquiring and buying out competitors worldwide in order to expand.
Reread the Management Focus on Cemex and then answer the following questions:
a) Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI?
b) What is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy?
Explanation:
a) I think Cemex's philosophy of internalisation perfectly illustrates that, instead of licensing it took the initiative to penetrate other markets, Cemex has acquired in-house cement firms and has become a global powerhouse. The text book discusses that companies often choose foreign direct investment as a policy to penetrate foreign markets, rather than authorising (Hill 2008). The internalisation principle. The state-of - the-art technologies Cemex employs would not make selling the company's "technological know-how" the best way to protect it (Hill 2009).
b) Cemex, the world's third largest cement firm, has 60% control over the powerhouse in Mexico.
The focus of Cemex is on the efficient production and service of the consumer. Sales receivers, as are consumers, have been paid. Such competitive advantages are the main benefits that Cemex gives to host countries. Cemex acquires companies, and then moves technologies, management and marketing skills to new units and improves their performance. Several purchased businesses were taken back to full production and the work opportunities in the host country were improved.
Final answer:
Cemex's FDI is best explained by the Market Power Theory. Cemex brings value to the host economy through job creation, technology transfer, and increased competition, but there can be potential drawbacks as well.
Explanation:
a) The best theoretical explanation of Cemex's Foreign Direct Investment (FDI) is the Market Power Theory. Cemex's FDI allowed them to gain a competitive advantage over local firms and establish a dominant position in the host economy. By acquiring local cement companies, they were able to control a significant portion of the market and influence prices.
b) The value that Cemex brings to the host economy includes job creation, technology transfer, and increased competition. However, there can also be potential drawbacks such as the exploitation of natural resources, environmental concerns, and negative impacts on local businesses.
On January 1, C company sells 50,000 shares of $3 par common stock for $5. It does not issue any preferred stock. Later on the company buys back 10% of its common shares outstanding for $7 per share. Total equity on December 31 is $300,000. What is retained earnings on December 31
Answers
Answer:
$85,000
Explanation:
Given that,
Shares sold = 50,000 shares of $3 par common stock for $5
Buys back = 10% of its common shares outstanding for $7 per share
Total equity on December 31 = $300,000
Balance in stockholder's equity without retained earnings:
= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity
= $0 + (50,000 × $5) - (50,000 × 10% × $7)
= $250,000 - $35,000
= $215,000
Retained earnings on December 31:
= Total equity at December 31 - Balance in stockholder's equity without retained earnings
= $300,000 - $215,000
= $85,000
Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20. There are no fixed costs. The selling price per unit is $50. What is the incremental cost of the proposed change?
A) $10,000B) $20,000C) $30,000
D) $60,000
Answers
Answer: C - $30,000
Explanation: Johnston Company wants to double production of Product X from 1,000 units to 2,000 units.
The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20.
The selling price per unit is $50
To increase production by 1000 units
Total cost is $10 + $20 = $30
Total incremental cost = 1,000 * $30= $30,000
Fuller Company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on the frame, to be priced at $40 each. Normally, Fuller would charge $90 per frame for this type of order. Fuller figures that wood and glass will cost $16 per frame, variable overhead (machining, electricity) is $4 per frame, direct labor is $12 per frame, and one setup will be required at $1,000 per setup. The set-up charge costs are 100% labor. Currently, the workers needed to set up for and make the frames are working at Fuller. Their wages will be paid whether or not the special order is accepted. Fuller's policy is to avoid layoffs to the extent possible.
Which of the following is a qualitative factor that Fuller would consider in making the decision to accept or reject the special order?
a. the no-layoff policy
b. cost of setup labor
c. cost of yarn and backing
d. the machining and electricity
e. the use of machinery
Answers
Answer:
The qualitative factor which Fuller will consider for this order is:
b. Cost of setup labor.
Explanation:
Answer:
The qualitative factor which Fuller will consider for this order is:
b. Cost of setup labor.
B. Cost of setup Labor: It includes salaries that are been paid to all workers working as full time and part time
While the number of wages and the number of employees wage requirements vary by cost controls, their industries and the center on achievment of their best results with possible lower labour costs.
As any leader of the company knows the things related to it that, the most important and biggest cost of doing any sort of business is often labor. Cost of labor setup, which may account for as 70% of almost total business costs which include wages of the employees,their benefits, payroll and all other taxes related to them.
Any HR professionals spend only their 15% of time managing the labor costs. Engaging new employees, hiring new and efficient workers and developing them over their course of their career are always top of mind for HR professionals.
So, the most important point here is the cost labors setup.