Answer:
Business ricks factors for Poultry industry using PESTEL:
Political : Government imposes ban on hormone injections and artificial feeds.
Economic: Demand is high but supply is insufficient causing rise in prices.
Social: People taste changes and they are switched to beef.
Technological: Genetic manufacturing of eggs incurs high cost.
Environmental: Poultry industry creates smell pollution which can affect nearby societies.
Legal: Contract issues and termination of contract can cause industry failure.
Explanation:
PESTEL analysis is widely used in the business to identify the associated risks with the operations. In the pestel analysis all factors are analyzed in detail. Political, economic, social, technological, environmental and legal factors are analyzed in detail and risks associated with these factors are identified to improve business strategies.
How might a person’s place in the life cycle influence investment decisions?
Answer:
Student responses will vary, but should include: A young investor has years of earning power and can take greater risks because he/she has time to make-up for losses. An older investor needs more security and current income from their investments because they are using it to retire on or they need it to continually grow so that they can retire.
Explanation:
In which country, China or India, would you expect to encounter the most bureaucracy? Why?
Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Month Labor Cost Employee Hours
January $7,000 360
February 8,140 550
March 9,899 630
April 9,787 610
May 8,490 480
June 7,450 350
July 9,490 570
August 7,531 310
Pizza Vesuvio's controller wants to calculate the fixed and variable costs associated with labor used in the restaurant.
In your calculations, round the variable rate per employee hour to the nearest cent.
Required:
1. Using the high-low method, calculate the fixed cost of labor.$
2. Using the high-low method, calculate the variable rate.
$ per employee hour
3. Using the high-low method, construct the cost formula for total labor cost.
Total labor cost = $ + [$ × Employee hours]
Answer and Explanation:
1. The computation of fixed cost of labor is shown below:-
Fixed cost = High cost - (High labor hours × Variable cost per hour)
= $9,899 - (630 hours × $7.40)
= $9,899 - $4,622
= $5,237
2. The computation of variable rate is shown below:-
Variable cost = (High value - Low value) ÷ (High labor hours - Low labor hours)
= ($9,899 - $7,531) ÷ (630 - 310)
= $2,368 ÷ 320
= $7.40 per unit
3. The construction of formula for total labor cost is shown below:-
Total labor cost = $5,237.00 + $7.40 × Employee hours
Mr. Smith would like to run for a Senate seat in Massachusetts. He is 49 years old and has been a citizen of the United States all his life. He lives in New York and is registered to vote in that state. He owns a house in Massachusetts and visits there occasionally. His business is in Albany, New York. Can Mr. Smith run for the Massachusetts Senate seat? Why or why not?
Answer: No. Mr. Smith cannot run for the Massachusetts Senate seat
Explanation:
From the question, we are informed that Mr. Smith is 49 years old, a United States citizen and that he would like to run for a Senate seat in Massachusetts. He lives in New York and is registered to vote in that state.
It should be noted that Mr Smith isn't a resident of Massachusetts and therefore, he cannot run for Senator as he's not registered there but rather he registered in New York. Assuming he registered in New York, then he can be a senator there but he isn't registered there, therefore he can't.
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.
Manufacturing Overhead Work in Process
(a) 460,000 (b) 390,000 Bal. 15,000 (c) 710,000
260,000
Bal. 70,000 85,000
(b) 390,000
Bal. 40,000
Finished Goods Cost of Goods Sold
Bal. 50,000 (c) 640,000 (d) 640,000
(c) 640,000
Bal. 120,000
The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows:______.
Work in Process, ending $ 19,500
Finished Goods, ending 58,500
Cost of Goods Sold 312,000
Overhead applied $ 390,000
For example, of the $40,000 ending balance in work in process, $19,500 was overhead that had been applied during the year.
Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer:
Latta Company
1.
(a) is the Actual Manufacturing Overhead Expense incurred for the year.
(b) is the Manufacturing overhead applied to Work in Process for the year.
(c) is the Cost of goods manufactured for the year.
(d) is the Cost of goods sold for the year.
2. Debit Cost of Goods Sold $70,000
Credit Manufacturing Overhead $70,000
To close the underapplied overhead to cost of goods sold.
3. Debit Work in Process $3,500
Finished Goods $10,500
Cost of goods sold $56,000
Credit Manufacturing Overhead $70,000
To close the underapplied overhead to the 3 accounts.
Explanation:
a) Data and Calculations:
1. T-accounts:
Manufacturing Overhead
Debit Credit
(a) 460,000 (b) 390,000
Bal. 70,000
Work in Process
Debit Credit
Bal. 15,000 (c) 710,000
260,000
85,000
(b) 390,000
Bal. 40,000
Finished Goods
Debit Credit
Bal. 50,000 (d) 640,000
(c) 710,000
Bal. 120,000
Cost of Goods Sold
Debit Credit
(d) 640,000
2. Distribution of overhead applied to production:
Work in Process, ending $ 19,500
Finished Goods, ending 58,500
Cost of Goods Sold 312,000
Overhead applied $ 390,000
3. Allocation of Underapplied:
Work in Process, ending $3,500 (19,500/390,000 * 70,000)
Finished Goods, ending 10,500 (58,500/390,000 * 70,000)
Cost of Goods Sold 56,000 (312,000/390,000 * 70,000)
Underapplied overhead $70,000
Gains from trade
Consider two neighboring island countries called Contente and Dolorium. They each have 4 million labor hours available per month that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor.
Country Rye Jeans
(Bushels per hour of labor) (Pairs per hour of labor)
Contente 8 16
Dolorium 5 20
Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Contente produces 6 million pairs of jeans and 36 million bushels of rye, and Dolorium produces 12 million pairs of jeans and 16 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
Contente's opportunity cost of producing 1 bushel of rye is _____ of jeans, and Dolorium's opportunity cost of producing 1 bushel of rye is _____ of jeans. Therefore, _______ has a comparative advantage in the production of rye, and _____ has a comparative advantage in the production of jeans.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce _____ million bushels per month, and the country that produces jeans will produce _____ million pairs per month.
In the following table, enter each country's production decision on the third row of the table (marked "Production").
Suppose the country that produces rye trades 18 million bushels of rye to the other country in exchange for 54 million pairs of jeans.
In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," and enter each country's final consumption of each good on the line marked "Consumption."
When the two countries did not specialize, the total production of rye was 23 million bushels per month, and the total production of jeans was 68 million pairs per month. Because of specialization, the total production of rye has increased by _____ million bushels per month, and the total production of jeans has increased by _____ million pairs per month.
Because the two countries produce more rye and more jeans under specialization, each country is able to gain from trade.
Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in Consumption").
Contente Dolorium
Rye Jeans Rye Jeans
(Millions of (Millions of pairs) (Millions of (Millions of pairs)
bushels) bushels)
Without Trade
Production 8 48 15 20
Consumption 8 48 15 20
With Trade
Production
Trade Action
Consumption
Gains from Trade
Increase in Consumption
Answer:
Contente's opportunity cost of producing 1 bushel of rye is 0.5 of jeans, and Dolorium's opportunity cost of producing 1 bushel of rye is 0.25 of jeans. Therefore, DOLORIUM has a comparative advantage in the production of rye, and CONTENTE has a comparative advantage in the production of jeans.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce 64 million bushels per month, and the country that produces jeans will produce 24 million pairs per month.
Suppose the country that produces rye trades 54 million bushels of rye to the other country in exchange for 18 million pairs of jeans.
Dolorium:
Export 54 million bushels of rye
Consume 10 million bushels of rye
Import 18 million pairs of jeans
Contente:
Export 18 million pairs of jeans
Consume 6 million pairs of jeans
Import 54 million bushels of rye
Before specialization, the total production of rye = 36 + 16 = 52 million bushels, and the total production of jeans = 6 + 12 = 18 million pairs.
Because of specialization, the total production of rye has increased by 12 million bushels per month, and the total production of jeans has increased by 6 million pairs per month.
Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table.
Contente:
Before specialization and trade, produced and consumed 6 million pairs of jeans and 36 million bushels of rye.
After specialization and trade, consumed 54 million bushels of rye and 6 million pairs of jeans.
Gain from trade is 18 million bushels of rye.
Dolorium:
Before specialization and trade, produced and consumed 12 million pairs of jeans and 16 million bushels of rye.
After specialization and trade, consumed 10 million bushels of rye and 18 million pairs of jeans.
Gain from trade is -2 million bushels of rye and 6 million pairs of jeans.
Explanation:
There is a mistake in the question, since Contente's production of jeans must be 6 per hour and its production of rye should be 12 bushels per hour. That is the only way that it can produce 6 million pairs of jeans and 36 million bushels of rye. Something similar happens with Dolorium, it must be able to produce 16 bushels of rye per hour and 4 pairs of jeans per hour in order to produce 12 million pairs of jeans and 16 million bushels of rye.
Country Rye Jeans
Contente 12 6
Dolorium 16 4
Contente's opportunity cost of producing rye = 6 / 12 = 0.5 pairs of jeans.
Dolorium's opportunity cost of producing rye = 4 / 16 = 0.25 pairs of jeans.
Dolorium's production of rye = 16 bushels x 4,000,000 labor hours = 64,000,000 bushels of rye.
Contente's production of jeans = 6 pairs x 4,000,000 labor hours = 24,000,000 pairs of jeans
California Real Estate, Inc., expects to earn $85 million per year in perpetuity if it does not undertake any new projects. The firm has an opportunity that requires investing $18 million today and $7 million in one year. This new project will then generate annual profits of $11 million beginning at the end of year two and continuing in perpetuity. The firm has 20 million shares of common stock outstanding, and its required rate of return is 12%. Ignore taxes, depreciation, and other complications.
A. What is the price of a share of stock if the firm does not undertake the new investment?
B. What is the value of the investment?
C. What is the per-share stock price if the firm undertakes the investment?
Answer:
Kindly check explanation
Explanation:
Given the following :
Expected earning = $85,000,000 per year
Required rate of return on stock (r) = 12% = 0.12
Number of common stock shares outstanding = 20 million
A.) price of a share of stock if the form does not undertake new investment:
Cash value = $85,000,000 / 0.12
= $708333333.33
Price of share :
708333333.33 / 20,000,000
= $35.42
B.) calculate the NPV of growth opportunities :
Investment opportunity today (Co) = $18 milliom
Investment opportunity after a year (C1) = $7 million
Annual profit at the end of year 2 = $11 million
The net present value of growth opportunities :
Co + C1/(1+r) + (C2 / r) / (1 + r)
-18,000,000 - 7,000,000/1.12 + (11,000,000/0.12) / 1.12
= $57,595,238.09
C.) per share price if company undertakes investment :
(Net present value of growth opportunities / number of stocks outstanding)
= $57,595,238.09 / 20,000,000
= $2.88
Hence,
[Per share value of growth opportunities + per share value of car map y does not undertake new investment]
[$2.88 + $35.42]
= $38.30
Earthquake, drought, fire, economic famine, flood, and a pestilence of TV court reporters have caused an exodus from the City of Angels to Boulder, Colorado. The sudden increase in demand is straining the capacity of Boulder’s electrical system. Boulder’s alternatives have been reduced to buying 150,000 MWh of electric power from Tri-County G&T at a price of $75 per MWh, or refurbishing and recommissioning the abandoned Pearl Street Power Station in downtown Boulder. Fixed costs of that project are $10 million per year, and variable costs would be $35 per MWh. Should Boulder build or buy?
Answer:
Buy
Explanation:
First, we need to find out what is the cost incurred by the company in building the power station and after that, we will compare that cost with the selling price of the power from Tri-county G&T. the lower-priced option will be considered as best option.
Cost incurred by the company in building the power station = $10,000,000 + (150,000 x $35)
Cost incurred by the company in building the power station = $10,000,000 + $5,250,000
Cost incurred by the company in building the power station = $15,250,000
Selling price of the power from Tri-county G&T = 150,000 x $75
Selling price of the power from Tri-county G&T = 11,250,000
Decision: It would be a wise option for the company to buy it. From buying the power the company will save $4m.
All of the following expenses paid or incurred in the course of operating a business are deductible as business expenses except:________.
a. Political contributions.
b. Costs incurred by a public utility company in connection with an appearance at a public utility commission rate making hearing.
c. Reimbursements to job applicants in connection with interviews.
d. Penalty for nonperformance of a contract.
Answer: Political contributions
Explanation:
The expenses which are vital in running a business are deductible and examples of these are utility costs, legal services, salaries, office rent, equipment and supplies, utility costs, professional dues, etc.
Of the options given in the question, political contribution are not paid or incurred while running a business. Under Section 162(e), the political contributions are not deductible.
Graham recruited student volunteers to participate in his dissertation study. He set up several times for students to come to a specified classroom and read various types of instructional materials and to be tested. He ran all of his control conditions first and then for each session he placed all students at the session in the same treatment condition. This is problematic because those who volunteered early are likely different than those who volunteered later. This problem is primarily due toPGraham recruited student volunteers to participate in his dissertation study. He set up several times for students to come to a specified classroom and read various types of instructional materials and to be tested. He ran all of his control conditions first and then for each session he placed all students at the session in the same treatment condition. This is problematic because those who volunteered early are likely different than those who volunteered later. This problem is primarily due to:_______.A) error rates.B) sampling error.C) researcher bias.D) sampling bias.
Answer: D) sampling bias.
Explanation:
Sampling bias refers to a scenario where conditions in the research give more subjects in the population of interest the chance to appear either more or less times than others instead of all the subjects having an equal chance of representation.
The students were to come in at different times yet Graham gave them all the same treatment conditions. This could lead to sampling bias because those who volunteered earlier are likely different from those who volunteered later.
FreshProduce is a family-owned grocery store that sells organic and locally grown food and fresh produce. There is only one check-out station with one cashier. It takes the cashier on average 5 minutes to check out a customer. The standard deviation of the check-out time is also 5 minutes. On average, there are 6 customers per hour. The standard deviation of the inter-arrival time is 10 minutes. What is the utilization of the process? Group of answer choices 25% 50% 75% 100%
Answer:
50%
Explanation:
The time taking to check a customer is 5 minutes, hence the processing time is 5 minutes.
There are 6 customers per hour that is 1 customer per 10 minutes, therefore the inter arrival time is 10 minutes.
The utilization is the ratio of the processing time to the arrival time, it is given by the formula:
Utilization = Processing time / inter arrival time
Utilization = 5 minutes / 10 minutes = 0.5
Utilization = 50%
According to the video, how long does an architecture program usually take to complete?
1. two years
2. five years
3. eight years
4. ten years
Answer:
five years
A regular and normal architecture program would typically take up to 5 years to complete. The answer is five years. Hope it helps!
Which of the following statements is correct with respect to machine setup costs? A. Since direct material and direct labor information are not given, it is impossible to determine if the product lines are being over/undercosted. B. If the Digital product line is being overcosted with respect to machine setup costs, it is likely that the Analog product line is also being overcosted with respect to machine setup costs. C. Under the current costing system, 60% of the machine setup manufacturing overhead costs are applied to the Digital product line. D. Under the activity based costing system, 37.5% of the machine setup manufacuring overhead costs are applied to the Analog product line. E. The current costing system is not over/undercosting the product lines with respect to machine setup costs.
Answer:
A. Since direct material and direct labor information are not given, it is impossible to determine if the product lines are being over/undercosted.
Explanation:
The above option is the correct answer to the question asked above regarding to the machine setup costs.
Larry purchased an annuity from an insurance company that promises to pay him $11,500 per month for the rest of his life. Larry paid $1,410,360 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $11,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income
Answer:
If Larry outlives the IRS's life expectancy, he has two options:
He must pay taxes for the full amount that he receives every month beginning with the 187th payment. The IRS allows you to deduct the cost of the annuity, but if you already discounted the full cost, then you start paying taxes for every cent that you get. Or he can recalculate his tax deduction. But recalculating when you are about to pass the age threshold doesn't make sense. After he turns 87, Larry will only be able to deduct $45,495.48 more. It sounds like a lot of money, but since the IRS doesn't recognize any interest on your investment, then the sooner you discount your taxes, the better.Explanation:
According to the IRS, Larry's life expectancy is 15.5 more years (IRS publication 590, appendix b , table I: single life expectancy), so the total number of distributions = 15.5 x 12 = 186.
for tax purposes, he can deduct $1,410,360 / 186 = $7,582.58 from each distribution. This means that he will only have to pay income taxes for $11,500 - $7,582.58 = $3,917.42.
If Larry outlives the IRS's life expectancy, he has two options:
He must pay taxes for the full amount that he receives every month beginning with the 187th payment. The IRS allows you to deduct the cost of the annuity, but if you already discounted the full cost, then you start paying taxes for every cent that you get.
Or he can recalculate his tax deduction. But recalculating when you are about to pass the age threshold doesn't make sense. After he turns 87, Larry will only be able to deduct $45,495.48 more. It sounds like a lot of money, but since the IRS doesn't recognize any interest on your investment, then the sooner you discount your taxes, the better.
Colton Enterprises experienced the following events for Year 1, the first year of operation:Acquired $37,000 cash from the issue of common stock.Paid $12,200 cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Year 2.Performed services for customers on account for $76,000.Incurred operating expenses on account of $36,000.Collected $58,500 cash from accounts receivable.Paid $23,000 cash for salary expense.Paid $28,800 cash as a partial payment on accounts payable.Adjusting EntriesMade the adjusting entry for the expired rent. (See Event 2.)Recorded $2,800 of accrued salaries at the end of Year 1.Events for Year 2Paid $2,800 cash for the salaries accrued at the end of the prior accounting period.Performed services for cash of $25,000.Purchased $3,000 of supplies on account.Paid $11,100 cash in advance for rent. The payment was for one year beginning April 1, Year 2.Performed services for customers on account for $92,000.Incurred operating expenses on account of $43,500.Collected $91,000 cash from accounts receivable.Paid $41,000 cash as a partial payment on accounts payable.Paid $31,700 cash for salary expense.Paid a $11,000 cash dividend to stockholders.Adjusting EntriesMade the adjusting entry for the expired rent. (Hint: Part of the rent was paid in Year 1.)Recorded supplies expense. A physical count showed that $550 of supplies were still on hand.d-1. Prepare an income statement for Year 1.d-2. Prepare a statement of changes in stockholders’ equity for Year 1.d-3. Prepare a balance sheet for Year 1.d-4. Prepare a statement of cash flows for Year 1. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
d1) Colton Enterprises
Income Statement
For the year ended December 31, Year 1
Service revenue $76,000
Expenses:
Operating expenses $36,000Wages expense $25,800Rent expense $9,150 ($70,950)Net income $5,050
d2) Colton Enterprises
Changes in stockholders' equity
For the year ended December 31, Year 1
Beginning balance $0
Common stocks issued $37,000
Net income $5,050
Subtotal $42,050
Dividends paid $0
Ending balance Dec. 31, year 1 $42,050
d3) Colton Enterprises
Balance Sheet
For the year ended December 31, Year 1
Assets:
Cash $31,500
Accounts receivable $17,500
Prepaid rent $3,050
Total assets $52,050
Liabilities:
Accounts payable $7,200
Wages payable $2,800
Total liabilities $10,000
Stockholders' Equity:
Common stock $37,000
Retained earnings $5,050
Total stockholders' equity $42,050
Total liabilities + equity $52,050
d4) Colton Enterprises
Statement of cash flows
For the year ended December 31, Year 1
Cash flows from operating act.
Net income $5,050
Adjustments to net income:
Increase in accounts payable $7,200Increase in wages payable $2,800 Increase in accounts receivable ($17,500)Increase in prepaid rent ($3,050) ($10,550)Net cash provided by OA ($5,500)
Cash flows from investing act. $0
Cash flows from financing act.
Issuance of common stocks $37,000
Dividends paid $0
Net cash provided by FA $37,000
Net increase in cash $31,500
Initial cash balance $0
Ending cash balance $31,500
Explanation:
Events for yer 1:
Acquired $37,000 cash from the issue of common stock.
Dr Cash 37,000
Cr Common stock 37,000
Paid $12,200 cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Year 2.
Dr Prepaid rent 12,200
Cr Cash 12,200
Performed services for customers on account for $76,000.
Dr Accounts receivable 76,000
Cr Service revenue 76,000
Incurred operating expenses on account of $36,000.
Dr Operating expense 36,000
Cr Accounts payable 36,000
Collected $58,500 cash from accounts receivable.
Dr Cash 58,500
Cr Accounts receivable 58,500
Paid $23,000 cash for salary expense.
Dr Wages expense 23,000
Cr Cash 23,000
Paid $28,800 cash as a partial payment on accounts payable.
Dr Accounts payable 28,800
Cr Cash 28,800
Made the adjusting entry for the expired rent.
Dr Rent expense 9,150
Cr Prepaid rent 9,150
Recorded $2,800 of accrued salaries at the end of Year 1.
Dr Wages expense 2,800
Cr Wages payable 2,800
Events for Year 2
Paid $2,800 cash for the salaries accrued at the end of the prior accounting period.
Dr Wages payable 2,800
Cr Cash 2,800
Performed services for cash of $25,000.
Dr Cash 25,000
Cr Service revenue 25,000
Purchased $3,000 of supplies on account.
Dr Supplies 3,000
Cr Accounts payable 3,000
Paid $11,100 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
Dr Prepaid rent 11,100
Cr Cash 11,100
Performed services for customers on account for $92,000.
Dr Accounts receivable 92,000
Cr Service revenue 92,000
Incurred operating expenses on account of $43,500.
Dr Operating expenses 43,500
Cr Accounts payable 43,500
Collected $91,000 cash from accounts receivable.
Dr Cash 91,000
Cr Accounts receivable 91,000
Paid $41,000 cash as a partial payment on accounts payable.
Dr Accounts payable 41,000
Cr Cash 41,000
Paid $31,700 cash for salary expense.
Dr Wages expense 31,700
Cr Cash 31,700
Paid a $11,000 cash dividend to stockholders.
Dr Dividends 11,000
Cr Cash 11,000
Adjusting entry for expired rent
Dr Rent expense 11,375
Cr Prepaid rent 11,375
Dr Supplies expense 2,450
Cr Supplies 2,450
Direct materials $ 69,000 Direct labor $ 35,000 Variable manufacturing overhead $ 15,000 Fixed manufacturing overhead 28,000 Total manufacturing overhead $ 43,000 Variable selling expense $ 12,000 Fixed selling expense 18,000 Total selling expense $ 30,000 Variable administrative expense $ 4,000 Fixed administrative expense 25,000 Total administrative expense $ 29,000 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost
Answer: $147,000
Explanation:
Based on the information given in the question, the total product cost is calculated below:
Total product cost will be:
Direct materials: 69,000
Add: direct labor: 35,000
Add: total manufacturing overhead: 43,000
Total product cost:
= 69000 + 35000 + 43000
= $147,000
A customer pays a purchase price of $1,375 for a bond. This purchase price could also be referred to as
The cases filed at The Cross Company related to gender discrimination include one in which a 33-year-old sales representative was not selected for a promotion in spite of receiving excellent performance evaluations each year. She has worked for the company for more than 8 years while Jim, a 26-year-old, was selected for the position although he has only served The Cross Company for 18 months. Which of the following laws may apply to this case?a) Age Discrimination Actb) The Equity Actc) Title VII of CRAd) ADAAAe) Rehabilitation Act
Answer:
Title VII of the CRA
Explanation:
Title VII of the Civil Rights Act (CRA) is a landmark federal law that aims to protect employees against discrimination based on race, colour, sex, nation of origin, or religion.
The act was made law in 1964.
In the given scenario a female sales representative with excellent performance review was not promoted for 8 years, while Jim a male sales representative was promoted in just 18 months.
This is a gender based discrimination and is covered by Title VII of the CRA.
Age discrimination does not apply because it addresses discrimination of employees with minimum age of 40 years.
Equity act requires that employees on the same job role are compensated equally. This does not also apply.
Rehabilitation act prevents discrimination based on disability. This does not also apply
You are the CEO of a Fortune 500 company. You are currently being sued by 5 female employees who are claiming gender discrimination in hiring and pay for the females at your company. Two of the females are also claiming they were sexually harassed by their supervisors. After extensive investigation, you have determined that the claims by the females employees are (for the most part) unfounded. You are sitting in your attorney's office trying to decide if you should settle with the employees or continue fighting the accusations.
Answer the following questions:a) List the factors you should consider as you make a decision to litigate.b) List concerns you would have as an employer litigating a sexual harassment case.c) What is your decision? Why?
Answer with Explanation:
Part A. I would like to consult my attorney and will provide him following information:
Hiring Policies of Company that tends to avoid gender discrimination by following these policies.I will show them Human Resource Workings that clearly show why a candidate was preferred over other employees. The criteria set by the company and their relevance and where did the other candidates lacked.I will also show them audited remunerations for the year and the opinion of auditors which will justify that the company is not paying different salaries or wages to people of same designation and is not involved in pay discrimination.Will also provide the attorney with company policies regarding the sexual harassment at work and controls implemented to prevent such things in the work environment.Interact with the supervisors to know why the females were of the opinion that they were sexually harassed to know whether or not they were sexually harassing females.Part B. Following are the concerns as a part of an organization that is litigating sexual harassment case will ruin their reputation in the market. This will defame the company as the people will question the company's work environment. The most important thing is that the company must strictly adhere to sexual harassment and gender discrimination policies to prevent such litigation and loss of reputation.
Part C. The posh committee investigation would be relied on which would decide whether we must settle the dispute out of court or in the court. The investigation report can be used in the court as a supporting.
The possible action in the company can be suspension of the accused person or transferring them in an area where they will supervise male juniors till the settlement of the case. And if it is proven that the supervisor was involved in harassing the females then we will fire them from the company.
Discuss how a government might influence private producers.
Answer:
A government can influence through taxation, subsidies, regulations, building use, prohibitions, import quotas etc.
Explanation:
Answer:
Legislation and Regulation Another way in which the government can influence the private producers is, through rules and regulations. The economies usually operate with a huge and growing amount of regulations.
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Kevin invests $800 in an account that earns 5% simple interest. Jeremy invests $600 in an account earning 6%
interest compounded annually. Who will have earned more interest after 3 years? How much more?
A. Kevin will have earned $5.39 more than Jeremy after 3 years.
B. Jeremy will have earned $5.39 more than Kevin after 3 years.
C. Kevin will have earned $18.10 more than Jeremy after 3 years.
D. Jeremy will have earned $18.10 more than Kevin after 3 years.
Answer:
A
Explanation:
Question #1: Barney owns a bagel business in New York City and he wants to increase his total revenue. He knows that when bagels are $1, he sells 250 an hour, and when he lowers the price to $0.75, he sells 275 an hour. a. Calculate the price elasticity of demand for Barney’s bagels. b. Using the price elasticity of demand for Barney’s bagels, explain whether he should raise or lower the price to generate more revenue. c. A bakery moves in across the street from Barney’s shop. Explain what is likely to happen to the price elasticity of demand for Barney’s bagels. Question #2: Explain why you agree or disagree with the following statement: "Higher prices always yield higher revenues."
Answer:
a. Calculate the price elasticity of demand for Barney’s bagels.
0.4 price inelastic
b. Using the price elasticity of demand for Barney’s bagels, explain whether he should raise or lower the price to generate more revenue.
Barney should increase his prices in order to increase total revenue.
c. A bakery moves in across the street from Barney’s shop. Explain what is likely to happen to the price elasticity of demand for Barney’s bagels.
If a bakery moves in front of Barney's bagel place, then the PED of his product is probably going to increase. The higher the competition, the higher the PED. This means that any change in price will result in a higher proportional change in quantity demanded.
2) I do not agree with that statement. If the PED is price inelastic, then increasing the product's price will increase total revenue, but if the PED is price elastic, any small increase in price will result in a larger decrease in quantity demanded. If the PED is price inelastic, then any change in price will not alter total revenue.
Explanation:
The price elasticity of demand shows us how a 1% change in price will affect the quantity demanded of a product.
PED = % change in Q demanded / % change in price
% change in Q demanded = (275 - 250) / 250 = 10%
% change in price = (0.75 - 1) / 1 = -25%
PED = 0.1 / -0.25 = -0.4 or |0.4| in absolute terms
The PED for Barney's bagels is demand inelastic (PED < 1), therefore, a 1% change in price will result in a smaller proportional change in quantity demanded.
If Barney increases his price to $1.50 instead of lowering it, the quantity demanded will decrease only by:
% change in Q demanded = 0.5 change in price x 0.4 = 0.2 or 20% decrease
his total revenue will increase from $250 per hour to 200 x $1.50 = $300 per hour.
Q1. The price elasticity for the company would be 0.4.
Q2. No, it is not true that a higher price would bring higher revenues from their sales.
Question 1:
a. The price elasticity is derived from the given formula:
[tex]\frac{percentagechange in Qd}{percentage change in P}[/tex]
Hence, the percentage change in quantity demanded would be:
[tex]\frac{275 - 250}{250} \\=0.1[/tex]
Now, the percentage change in price would be:
[tex]\frac{0.75 - 1}{1} \\=-25[/tex]
Finally, price elasticity would be:
[tex]\frac{0.1}{-25} \\=-0.4[/tex]
b. Therefore, the business may increase its product's price to get increased revenue as the demand elasticity is 0.4, which means less change in quantity demanded would be seen when prices tend to rise by 1%
c. If the business plan to move across the price elasticity would be seen as rising because of experiencing more competition in the market. Thus, when prices increase by even 1% then the quantity demanded may be seen as changing at a higher rate.
Question 2:
The business revenue is dependent on the price and sales of the product. Further, the elasticity of demand is sales essential for deciding the quantity of demand by the customers. Thus, when demand is highly elastic then increasing the product price would harm the final revenue of the business.
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Since 1970, Super Rise, Inc., has provided maintenance services for elevators. On January 1, 2021, Super Rise obtains a contract to maintain an elevator in a 90-story building in New York City for 10 months and receives a fixed payment of $80,000. The contract specifies that Super Rise will receive an additional $40,000 at the end of the 10 months if there is no unexpected delay, stoppage, or accident during the year. Super Rise estimates variable consideration to be the most likely amount it will receive.
Required:
1. Assume that, because the building sees a constant flux of people throughout the day, Super Rise is allowed to access the elevators and related mechanical equipment only between 3am and 5am on any given day, which is insufficient to perform some of the more time-consuming repair work. As a result, Super Rise believes that unexpected delays are likely and that it will not earn the bonus. Prepare the journal entry Super Rise would record on January 1.
2. Assume instead that Super Rise knows at the inception of the contract that it will be given unlimited access to the elevators and related equipment each day, with the right to schedule repair sessions any time. When given these terms and conditions, Super Rise has never had any delays or accidents in the past. Prepare the journal entry Super Rise would record on January 31 to record one month of revenue.
3. Assume the same facts as requirement 1. In addition assume that, on May 31, Super Rise determines that it does not need to spend more than two hours on any given day to operate the elevator safely because the client's elevator is relatively new. Therefore, Super Rise believes that unexpected delays are very unlikely. Prepare the journal entry Super Rise would record on May 31 to recognize May revenue and any necessary revision in its estimated bonus receivable.
Answer:
1) Jan 1
Dr Cash $80,000
Cr Deferred Revenue $80,000
2)Jan 31
Dr Deferred Revenue 8,000
Dr Bonus Receivable 4,000
Cr Service Revenue 12,000
3)May 31
Dr Deferred Revenue 8,000
Dr Bonus Receivable 20,000
Cr Service Revenue 28,000
Explanation:
1. Preparation of the journal entry that Super Rise would record on January 1.
Based on the information we were told that a contract was obtained to maintain an elevator for 10 months in which they receives a fixed payment of the amount of $80,000 which means that the Journal entry on January 1will be:
Jan 1
Dr Cash $80,000
Cr Deferred Revenue $80,000
2)Preparation of journal entry Super Rise would record on Jan 31
Jan 31
Dr Deferred Revenue 8,000
(80,000/10months)
Dr Bonus Receivable 4,000
(40,000/10months)
Cr Service Revenue 12,000
3)Preparation of the journal entry Super Rise would record on May 31
May 31
Dr Deferred Revenue 8,000
(80,000/10months)
Dr Bonus Receivable 20,000
[( 40,000/10months)*5months]
January to May will give us 5months
Cr Service Revenue 28,000
COST OF EQUITY WITH AND WITHOUT FLOTATION Jarett & Sons’s common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $1.00 a share at the end of the year (D1=$1.00) , and the constant growth rate is 4% a year. What is the company’s cost of common equity if all of its equity comes from retained earnings? ANSWER ↓ If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock?
Answer:
7.33%7.71%Explanation:
1. If the company's cost of equity is;
= (Next divided/ Share price) + Dividend growth rate
= 1/30 + 4%
= 3.33% + 4%
= 7.33%
2. With the floatation costs involved, the Cost of Equity will increase as the floatation costs will increase the cost required to get equity.
= [(Next divided/ Share price - flotation costs)] + Dividend growth rate
Floatation costs = 10% * 30
= $3
= [1/30 - 3)] + 4%
= 1/27 + 4%
= 7.71%
Starbucks and Disney both once faltered in their
marketing efforts. This was because they were too
focused on and lost sight of their
Answer:
e. growth; customers
Explanation:
Starbucks and Disney both once faltered in their marketing efforts. This was because they were too focused on "growth" and lost sight of their "customers".
Starbucks and Disney lost sight of their customers as a result of focusing so much on growth. Even though growth is good but when you focus so much on it and loose customers, how can you grow? This affected their marketing efforts and led to wastage of resources.
The pursuit of growth should be with foresight and with the customers in mind. Such will reward the firm's marketing efforts.
Answer:
e
Explanation:
D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets and the liabilities of the business on July 1, 2014, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75,000; Accounts Payable, $40,000. Business transactions during July are summarized as follows:a. Joel Palk invested additional cash in the business with a deposit of $35,000 in the business bank account.b. Paid $50,000 for the purchase of land adjacent to land currently owned by D’Lite Dry Cleaners as a future building site.c. Received cash from cash customers for dry cleaning revenue, $32,125.d. Paid rent for the month, $6,000.e. Purchased supplies on account, $2,500.f. Paid creditors on account, $22,800.g. Charged customers for dry cleaning revenue on account, $84,750.h. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $29,500.i. Paid the following: wages expense, $7,500; truck expense, $2,500; utilities expense, $1,300; miscellaneous expense, $2,700.j. Received cash from customers on account, $88,000.k. Determined that the cost of supplies on hand was $5,900; therefore, the cost of supplies used during the month was $3,600.l. Withdrew $12,000 cash for personal use.Instructions1. Determine the amount of Joel Palk’s capital as of July 1 of the current year.2. State the assets, liabilities, and owner’s equity as of July 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction.3. Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31.4. (Optional). Prepare a statement of cash flows for July.
Answer:
1) equity = assets - liabilities
equity = $45,000 + $93,000 + $7,000 + $75,000 - $40,000 = $180,000
2) Since there is not enough room here, I used an excel spreadsheet to prepare the accounting equation.
3) D’Lite Dry Cleaners
Income Statement
For the month ended July 31, 202x
Revenues $116,875
Expenses:
Dry cleaning expense $29,500Rent expense $6,000Wages expense $7,500Truck expense $2,500Supplies expense $3,600Utilities expense $1,300Miscellaneous expense $2,700 ($53,100)Net income $63,775
D’Lite Dry Cleaners
Balance Sheet
For the month ended July 31, 202x
Assets:
Cash $95,325
Accounts receivable $89,750
Supplies $5,900
Land $125,000
Total assets $315,975
Liabilities:
Accounts payable $49,200
Equity:
Capital $266,775
Total liabilities and equity $315,975
D’Lite Dry Cleaners
Statement of Owner’s Equity
For the month ended July 31, 202x
Palk, Joel, capital, beginning balance $180,000
Additional capital raised $35,000
net income $63,775
subtotal $278,775
drawings ($12,000)
Palk, Joel, capital, ending balance $266,775
You wish to retire in 14 years, at which time you want to have accumulated enough money to receive an annual annuity of $17,000 for 19 years after retirement. During the period before retirement you can earn 8 percent annually, while after retirement you can earn 10 percent on your money. What annual contributions to the retirement fund will allow you to receive the $17,000 annuity? Use Appendix C and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
Answer:
Annual contribution = $5873.06
Explanation:
First we will find the present value at the time of retirement and then we will find the annual contribution during the years of working. Below is the calculation to find the present value
Present value at the time of retirement = Annuity (P/A, r, n)
Present value at the time of retirement = $17000 (P/A, 10%, 19)
Present value at the time of retirement = $17000 (8.365)
Present value at the time of retirement = $142205
Now find the annual contribution:
Annual contribution = Future value (A/F, r, n)
Annual contribution = 142205 (A/F, 8%, 14)
Annual contribution = 142205(0.0413)
Annual contribution = $5873.06
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 300,000 $ 291,000 Purchases 581,000 928,000 Freight-in 19,000 Net markups 31,000 Net markdowns 5,000 Net sales 910,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.)
Answer:
$242,168.82
Explanation:
Inventory on December 31, 2021
Cost. Retail
Beginning inventory 300,000 291,000
Add: purchases 581,000 928,000
Add: freight in. 19,000
Add: net markups. 31,000
900,000 1,250,000
Less net markdown. 5,000
Goods available for 900,000 1,245,000
Cost to retail %
900,000/1,245,000
0.722891566
Less: net sales. 910,000
Estimated ending 335,000
Estimated ending inventory at cost
335,000 × 0.722891566
242,168.82
Kubin Company’s relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,250 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 8.50 Direct labor $ 5.50 Variable manufacturing overhead $ 3.00 Fixed manufacturing overhead $ 6.50 Fixed selling expense $ 5.00 Fixed administrative expense $ 4.00 Sales commissions $ 2.50 Variable administrative expense $ 2.00 Required: 1. If 25,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 33,500 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 25,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 33,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 33,500 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 25,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 33,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? (Round per unit values to 2 decimal places.)
Answer:
$21.50$21.5025,000 x $21.50 = $537,50033,500 x $21.50 = $720,250$453,375 / 25,000 = $18.135$453,375 / 33,500 = $13.53$453,375$453,375Explanation:
29,250 units produced and sold
Direct materials $8.50
Direct labor $5.50
Variable manufacturing overhead $3.00
Fixed manufacturing overhead $6.50, total $190,125
Fixed selling expense $5.00, total $146,250
Fixed administrative expense $4.00, total $117,000
Sales commissions $2.50
Variable administrative expense $2.00
relevant range of production is 25,000 to 33,500 units
total variable cost per unit = $8.50 + $5.50 + $3 + $2.50 + $2 = $21.50
that means that if the company produces and sells between 25,000 to 33,500 units, their variable cost per unit will be the same.
total fixed costs will also be the same:
Fixed manufacturing overhead $190,125Fixed selling expense $146,250 Fixed administrative expense $117,000 total $453,3751. If 25,000 units are produced and sold by Kubin Company, the variable cost per unit produced and sold is $21.50.
2. If 33,500 units are produced and sold by Kubin Company, the variable cost per unit produced and sold is $21.50.
3. If 25,000 units are produced and sold by Kubin Company, the total amount of variable cost related to the units produced and sold is $537,500 (25,000 x $21.50).
4. If 33,500 units are produced and sold by Kubin Company, the total amount of variable cost related to the units produced and sold is $720,2500 (33,500 x $21.50).
5. If 25,000 units are produced by Kubin Company, the average fixed manufacturing cost per unit produced is $18.14 ($453,375/25,000).
6. If 33,500 units are produced by Kubin Company, the average fixed manufacturing cost per unit produced is $13.53 ($453,375/33,500).
7. If 25,000 units are produced by Kubin Company, the total amount of fixed manufacturing overhead incurred to support this level of production is $453,375.
8. If 33,500 units are produced by Kubin Company, the total amount of fixed manufacturing overhead incurred to support this level of production remains $453,375.
Data and Calculations:Relevant production range = 25,000 to 33,500 units
Current production and sales units =29,250 units
Average costs per unit based on 29,250 units:
Direct materials $ 8.50
Direct labor $ 5.50
Variable manufacturing overhead $ 3.00
Total variable manufacturing cost per unit = $17
Fixed manufacturing overhead = $ 6.50
Total manufacturing cost per unit = $23.50 ($17 + $6.50)
Fixed selling expense $ 5.00
Fixed administrative expense $ 4.00
Sales commissions $ 2.50
Variable administrative expense $ 2.00
Variable costs:Total variable manufacturing cost per unit = $17
Sales commissions $ 2.50
Variable administrative expense $ 2.00
Total variable costs per unit = $21.50
Fixed Costs:Fixed manufacturing overhead $ 6.50
Fixed selling expense $ 5.00
Fixed administrative expense $ 4.00
Total fixed costs per unit $15.50
Total fixed costs based on 29,250 units = $453,375 ($15.50 x 29,250)
Thus, the variable cost per unit remains the same no matter the units produced and sold, while the total variable costs varies. On the other hand, the unit fixed cost varies while the total fixed costs are constant within the relevant range.
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Assuming a 1-year, money market account investment at 4.83 percent (APY), a 3.55% inflation rate, a 25 percent marginal tax bracket, and a constant $30,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 4.83 percent (APY), a 25 percent marginal tax bracket, and a constant $30,000 balance the after-tax rate of return is nothing%. (Round to two decimal places.)
Answer:
Explanation:
Rate of return = 4.83%
inflation rate =3.55 %
marginal tax bracket = 25 %
after tax rate of return = 4.83 ( 1 - .25 ) = 3.6225 %
after tax inflation rate = 3.55 (m 1 - .25 ) = 2.6625 %
real rate of return = [ (1+3.6225% /1+ 2.6625%) - 1 ] x 100
= .0093 x 100 = .93 %
Total monetary return = 30000 x 3.625 %
= 1087.5
Rate of return is more than rate of inflation , for short term perspective staying invested in money market investment is good option . Real rate of return is not negative at least .
