Sabv Corporation's break-even-point in sales is $840,000, and its variable expenses are 75% of sales. If the company lost $34,000 last year, sales must have amounted to:
Answer:sales must have amounted to:$704,000
Explanation:
Contribution ratio = Sales ratio - Variable cost ratio
= 100%- 75%
=25%
Sales to break even = Fixed expenses / Contribution margin ratio
Therefore,
Fixed expenses = Sales to break even x Contribution margin ratio
=$840,000 x 25%
=$210,000
Contribution margin can also be calculated as
Fixed expenses- Operating loss
=$210,000 -$34,000
=$176,000
Sales = Contribution margin/ Contribution ratio
= $176,000/25% =$704,000
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following: a. If sales for the current year were $516,400 and accounts receivable decreased by $32,000 during the year, what was the amount of cash received from customers
Answer:
the Cash Received from Customers is $548,400
Explanation:
The computation of the cash amount received by the customers is as follows:
Cash Received from Customers is
= Sales + Decrease in Accounts Receivables
= $516,400 + $32,000
= $548,400
hence, the Cash Received from Customers is $548,400
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Corporation has 400 obsolete TV monitors that they carry in their inventory at a total cost of $576,000. If these monitors are upgraded at a total cost of $150,000, they can be sold for a total of $210,000. As an alternative, the calculators can be sold in their present condition for $11,200. Assume that Tolar decides to upgrade the calculators. At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition?
a. $8 per calculator
b. $30 per calculator
c. $53 per calculator
d. $67 dollar per calculator
Answer: $403 per calculator
Explanation:
Assume the selling price is x.
400 calculators.
Upgrading them would cost $150,000 but if sold in present condition would fetch $11,200.
Expression would be;
400x - 150,000 = 11,200
400x = 161,200
x = 161,200/400
x = $403 per calculator
A production process has two workstations. The first workstation has a capacity of 200 units per hour and the second workstation has a capacity of 150 units per hour. Demand for the process is 250 units per hour. What is the utilization of the first workstation in a push process
Answer:
100%
Explanation:
Since demand for process (250/hour) is greater than the Capacity of first workstation (200/hour) . Then, the first workstation will be utilized 100%
If you were to make an advertisement using the three word technique what three words would you use
example: powerful, brilliant, useful
Answer:
convenient, durable, easy
Nelson Software Inc has bonds on the market with a YTM of 7.79%, a coupon rate of 7.5%, and a current yield of 7.73%. The bonds have 22 years to maturity, pay semmiannual coupons, and are priced at 97. What is the effective annual yield on these bonds?a) 7.55%b) 8.55%c) 7.94%d) 7.5%
Answer: 7.94%
Explanation:
The effective annual yield on these bonds would be calculated as:
= [1 + (YTM/2)]² - 1
= [1 + (0.0779/2)]² - 1
= [1 + 0.03895]² - 1
= 1.079417103 - 1
= 0.079417103
= 7.94%
Therefore, the effective annual yield on these bonds would be 7.94%.
A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 7,100 units and was completed in 19,300 hours at a total labor cost of $172,800. What is the total labor cost variance?
Answer:
$2,400 unfavorable
Explanation:
Given that;
Time = 3 hours
Cost of labor = $8 per hour
Number of units = 7,100
Total actual labor cost = $172,800
Standard labor cost = 7,100 × 3 × $8 = $170,400
Total labor cost variance = Standard labor cost - Actual labor cost variance
Total labor cost variance = $170,400 - $172,800
Total labor cost variance = -$2,400
The negative sign here means that it is unfavorable, hence total labor cost variance is $2,400 unfavorable
19. If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid?
Approximately how many years would it take for an investment to grow fourfold if it was invested at 16 percent compounded semiannually
Answer: 4.5 years
Explanation:
You can use the Rule of 144 to calculate how long it will take for an investment to grow fourfold.
It works by dividing 144 by the interest rate the investment is growing at;
= 144/16
= 9
As the investment is being compounded semi-annually, the number of years it will take are;
= 9/2
= 4.5 years
A trial balance before adjustment included the following: Debit Credit Accounts receivable $120,000 Allowance for doubtful accounts 730 Sales $510,000 Sales returns and allowances 8,000 Give journal entries assuming that the estimate of uncollectibles is determined by taking (1) 5% of gross accounts receivable and (2) 1% of net sales.
Answer and Explanation:
The journal entries are as follows:
a. Allowance for doubtful debts Dr. $5,270 ($120,000 × 5% - $730)
To Accounts Receivables $5,270
(Being allowance for doubtful debts is recorded)
Here the allowance for doubtful debt is debited as it increased the assets and credited the account receivable as it decreased the assets
2. Allowance for doubtful debts Dr. $4,290 ($510,000 × 1% - $730)
To Accounts Receivables $4,290
(Being allowance for doubtful debts is recorded)
Here the allowance for doubtful debt is debited as it increased the assets and credited the account receivable as it decreased the assets
In 2019, Audrey claimed $2,100 on her Federal tax return for her Child and Dependent Care Expenses Credit. Her Federal adjusted gross income (AGI) was $32,750 and she meets all other requirements. What amount can she claim for the California Child and Dependent Care Expenses (CDC) Credit
Answer:
$1,050
Explanation:
Her adjusted gross income is $32,750, so she can claim maximum of 50% of Child and Dependent Care Expenses as CDC Credit
= $2,100 * 50%
= $1,050
So, the amount she can claim for the California Child and Dependent Care Expenses (CDC) Credit is $1,050
On September 1, Home Store sells a mower (that costs $310) for $610 cash with a one-year warranty that covers parts. Warranty expense is estimated at 9% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $43 in materials taken from the Repair Parts Inventory.
Required:
Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs.
Answer: Please find answer in explanation column
Explanation:
1. To record the sale of mower.
Date Account Titles and explanation Debit Credit
Sep 1 Cash $610
Sales revenue $610
2.Journal To record the cost of mower sales
Date Account Titles and explanation Debit Credit
Sep 1 Cost of Goods Sold $310
Inventory $310
3.Journal To record the warranty expense
Date Account Titles and explanation Debit Credit
Sep 1 Warranty expense $54.90
Estimated warranty liability $54.90
Calculation
Warranty expense = $610 X 9%=$54.90
4.Journal to record the cost of the warranty repairs.
Date Account Titles and explanation Debit Credit
Jan 24 Estimated warranty liability $43
Repair parts inventory $43
How much is GDP increased if MPC is .8 and new spending is $90,000?
a. 640,000
b. 520,000
c. 450,000
Answer:
B
Explanation:
250,000
The amount that people are willing to pay for each additional unit of a product or service is the A. Opportunity cost B. Marginal benefit C. Marginal cost D. Investment opportunity Please select the best answer from the choices provided O A OB C С D
Answer:
B marginal benefit
hope this helps xx
Answer:
B:Marginal benefit
Explanation:
Corporation has a time contraint on one of its special machines. The company makes three products that use this machine. Data concerning those products appear below:
Magnifico Bellissimo Lovely
Selling price per unit $335.07 $228.35 $199.10
Variable cost per unit $259.48 $173.30 $159.83
Minutes on the constraint 6.40 3.20 4.40
Required:
Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product (Q) Up to how much should od be willing to pay to acquire more of the constrained resource?
Answer: $8.925 per minute.
Explanation:
Based on the information given, the amount that the company should be willing to pay to acquire more of the constrained resource will be:
= (Selling price – variable cost)/Constrained Minute
= ($199.10 - $159.83) / 4.40
= $8.925 per minute
= $8.93 per minute
The answer is $8.93 per minute.
þne day, on his way back from selling his blood, Paul fell asleep and crashed his car into a light
pole. The car was repairable but the charges for parts and labor totalled more than $4,000.
Should he have to pay sales tax on this whole amount? Why or why not?
Betty and Ann live on a desert island. With a day's labor, Ann can produce 8 fish or 4 coconuts; Betty can produce 6 fish or 2 coconuts. Ann's opportunity cost of producing 1 coconut is ________ and she should specialize in the production of ________.A) 8 fish per coconut; fishB) 2 fish per coconut; coconutsC) 6 fish per coconut; coconutsD) 0 fish per coconut; coconuts
Answer:
The answer is "option b".
Explanation:
In this question, choice b is correct because, On a deserted beach, Betty and Ann live. Anna could section 80. or 4 nests of one day's job, and Betty can produce 6 or 2 coconuts. That cost of manufacturing 1 coconut is 2 fish per coconut, which Ann must be skilled for coconuts production.
If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping point in purchases, but not ending inventory
Answer:
Net Income will be undervalued.
Explanation:
In a Free on Board shipping (FOB) the Buyer assumes all risks and rewards of ownership of the goods purchased when the goods have been loaded or passed the shipping rail.
The costs incurred at Free on Board shipping (FOB) must be included in both the Purchases and Ending Inventory. If the cost is not included in ending inventory, this means Cost of Sales will be overvalued and consequently Gross Profit and Net Income will be undervalued.
Suppose that the marginal cost of an additional ton of steel produced by Japanese firm is the same whether the steel is set aside for domestic use or exported abroad. Suppose that this firm is a pure monopolist both in Japan as well as in abroad. If the price elasticity of demand for steel is smaller abroad than it is in Japan, which of the following will be correct?
a. the Japanese firm will sell more steel abroad than they will sell in Japan.
b. the Japanese firm will sell more steel in Japan than they will sell abroad.
c. the Japanese firm will sell steel at a lower price abroad than at home.
d. the Japanese firm will sell steel at a higher price abroad than at home.
e. None of the above,
Answer: d. the Japanese firm will sell steel at a higher price abroad than at home.
Explanation:
Price elasticity measures the change in quantity demanded resulting from a change in price. The higher the price elasticity, the more the change.
In this scenario, the price elasticity is lower abroad than it is in Japan. The company will therefore charge a higher price abroad because they know that the quantity demanded will not change as much even if they raise prices. This is as opposed to Japan where the quantity demanded will change more if they increase prices.
McCann Publishing has a target capital structure of 35% debt and 65% equity.This year's capital budget is $850,000 and it wants to pay a dividend of $400,000.If the company follows a residual dividend policy,how much net income must it earn to meet its capital budgeting requirements and pay the dividend,all while keeping its capital structure in balance?A) $904,875B) $952,500C) $1,000,125D) $1,050,131E) $1,102,638
Answer:
B) $952,500
Explanation:
Calculation for how much net income must it earn to meet its capital budgeting requirements and pay the dividend
Using this formula
Net income = Dividends + (Capital budget ×Equity)
Let plug in the formula
Net Income=$400,000+($850,000×65%)
Net Income=$400,000+$552,500
Net Income=$952,500
Therefore how much net income must it earn to meet its capital budgeting requirements and pay the dividend dividend,all while keeping its capital structure in balance is $952,500
The interest charged on a $252000 note payable, at the rate of 6%, on a 90-day note would be (Use 360 days for calculation.)
Answer: Interest charged=$3,780
Explanation:
Interest is the amount of money a borrower pays to its lender for money loaned to him or her at a particular time and rate It can also be money accrued from investments or deposits in financial institutions. It is calculated as
Interest charged = Principal x Rate x Time
= $252,000 x 6% X 90/ 360
=$3,780
The interest charged on the note payable =$3,780
A Machine makes 5 buttons at a time each doll shirt gets 5 buttons how many doll shirts can be finished with 5 buttons
Answer:
1
Explanation:
If each doll shirt gets 5 buttons then only one can be finished with 5 buttons.
High Sky Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:
Activity level 90 guests
Variable overhead costs:
Supplies $234
Laundry 315
Fixed overhead costs:
Utilities 220
Salaries and wages 4,290
Depreciation 2,680
Total overhead cost $7,739
The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 99 guests?
a. $61,541.00
b. $7,793.90
c. $8,512.90
d. $7,739.00
Answer:
Correct option is b. $7,793.90
Explanation:
Calculation for What would be the total budgeted overhead cost for a month if the activity level is 99 guests
TOTAL BUDGETED OVERHEAD COST
Variable overhead costs:
Supplies $ 257.40
[ ($234 ÷ 90 guests)*99 guests].
Laundry $346.50
[($315 ÷ 90 guests)*99 guests]
Total variable overhead cost 603.90
($ 257.40+$346.50)
Fixed overhead costs:
Utilities 220.00
Salaries and wages 4,290.00
Depreciation 2,680.00
Total fixed overhead cost 7,190.00
(220.00+4,290.00+2,680.00)
Total budgeted overhead cost$7,793.90
($7,190.00+$603.90)
Therefore What would be the total budgeted overhead cost for a month if the activity level is 99 guests will be $7,793.90
Novak Corp. had accounts receivable of $140,000 on January 1, 2022. The only transactions that affected accounts receivable during 2022 were net credit sales of $3,795,000, cash collections of $3,725,000, and accounts written off of $20,000.
Required:
a. Compute the ending balance of accounts receivable.
b. Compute the accounts receivable turnover for 2016.
c. Compute the average collection period in days.
Answer:
a. $210,000
b. 21.69 times
c. 16.83 average days to collect receivables
Explanation:
a. Ending balance of accounts receivable
= Beginning account receivable + Net credit sales - Cash collections
= $140,000 + $3,795,000 - $3,725,000
= $210,000
b. Account receivable turnover
= Net credit sales ÷ [(Beginning inventory + Ending inventory)/2]
= $3,795,000÷ [($140,000 + $210,000)/2]
= $3,795,000 ÷ $175,000
= 21.69 times
c. Average collection period in days
= Average account receivable ÷ [ Annual sales ÷ 365]
= $175,000 ÷ [$3,795,000 ÷ 365]
= $175,000 ÷ $10,397
= 16.83 average days to collect receivables
The marketing researcher for a game company is conducting an experiment to test customer reaction to the pricing of a new game designed for use by adults. A list of customers who had sent the company complaint letters was readily available, and the researcher rearranged this list by ZIP code, sending every third person a color brochure on the new game. Each respondent was asked to return a postcard, stating an intention to purchase or not to purchase the game at the listed price. Which of the following is true?
a. The sampling method ensures that all geographic areas are represented.
b. The external validity of the study is ensured, since respondents who are sitting in their homes are reacting under real life circumstances.
c. The sample is likely to over-represent the lower class.
d. The design of the study suffers from selection bias.
e. None of the above.
Answer:
The correct option is D) The design of the study suffers from selection bias.
Explanation:
In research, Selection Bias occurs when the researcher decides who the respondents are or those who are being evaluated or studied.
Every research ought to be designed in such a way that the respondents are selected at random.
In the information provided, the respondents were selected from a group of people who on a balance of probability were already inclined to decline because it was a list of dissatisfied customers. The chances of them declining to respond or responding with a negative were higher than the chances of them indicating that they would buy and this defeats the purpose of the research. The research ought to have also included a sample of respondents who didn't have the product, who had enjoyed the services of the company and were content, those who didn't even know what the product did until they got the survey.
That way holistic information can be obtained from the research about how different sets of people will react and not just those who are already dissatisfied with the company's product(s).
Some of the ways to avoid selection bias in research are:
To employ the use of random techniques selecting sample sets from populations.To check that the traits or characteristics of the larger population are well represented in the samples selectedCheers
The market for tennis shoes is in equilibrium. If the government increases business taxes, then we would expect to see a(n)
Answer:
Decrease in supply
Explanation:
When a government increases taxes it means that cost of production increases. Suppliers will have no choice but to increase prices at all levels of quantity demanded. This results in a decrease in supply because suppliers will not be able to maintain supply at all price levels.
Supply curve will shift to the left. Find attached an illustration.
If the market for tennis balls was in equilibrium an increase in taxes will result in decrease in ability of supplier to provide the good at all price levels so supply shifts to the left.
Explain, using examples, the different market entry strategies, including the advantages and disadvantages of each.
Should a company first establish an export base or license its products to gain experience in a newly targeted country or region? Or does the potential associated with first-mover status justify a bolder move such as entering an alliance, making an acquisition, or even starting a new subsidiary? Many companies move from exporting to licensing to a higher investment strategy, in effect treating these choices as a learning curve. Each has distinct advantages and disadvantages.
Exporting is the marketing and direct sale of domestically produced goods in another country. Exporting is a traditional and well-established method of reaching foreign markets. Since it does not require that the goods be produced in the target country, no investment in foreign production facilities is required. Most of the costs associated with exporting take the form of marketing expenses.
While relatively low risk, exporting entails substantial costs and limited control. Exporters typically have little control over the marketing and distribution of their products, face high transportation charges and possible tariffs, and must pay distributors for a variety of services. What is more, exporting does not give a company firsthand experience in staking out a competitive position abroad, and it makes it difficult to customize products and services to local tastes and preferences.
Licensing essentially permits a company in the target country to use the property of the licensor. Such property is usually intangible, such as trademarks, patents, and production techniques. The licensee pays a fee in exchange for the rights to use the intangible property and possibly for technical assistance as well.
Because little investment on the part of the licensor is required, licensing has the potential to provide a very large return on investment. However, because the licensee produces and markets the product, potential returns from manufacturing and marketing activities may be lost. Thus, licensing reduces cost and involves limited risk. However, it does not mitigate the substantial disadvantages associated with operating from a distance. As a rule, licensing strategies inhibit control and produce only moderate returns.
Strategic alliances and joint ventures have become increasingly popular in recent years. They allow companies to share the risks and resources required to enter international markets. And although returns also may have to be shared, they give a company a degree of flexibility not afforded by going it alone through direct investment.
There are several motivations for companies to consider a partnership as they expand globally, including (a) facilitating market entry, (b) risk and reward sharing, (c) technology sharing, (d) joint product development, and (e) conforming to government regulations. Other benefits include political connections and distribution channel access that may depend on relationships.
Such alliances often are favorable when (a) the partners’ strategic goals converge while their competitive goals diverge; (b) the partners’ size, market power, and resources are small compared to the industry leaders; and (c) partners are able to learn from one another while limiting access to their own proprietary skills.
The key issues to consider in a joint venture are ownership, control, length of agreement, pricing, technology transfer, local firm capabilities and resources, and government intentions. Potential problems include (a) conflict over asymmetric new investments, (b) mistrust over proprietary knowledge, (c) performance ambiguity, that is, how to “split the pie,” (d) lack of parent firm support, (e) cultural clashes, and (f) if, how, and when to terminate the relationship.
Ultimately, most companies will aim at building their own presence through company-owned facilities in important international markets. Acquisitions or greenfield start-ups represent this ultimate commitment. Acquisition is faster, but starting a new, wholly owned subsidiary might be the preferred option if no suitable acquisition candidates can be found.
Also known as foreign direct investment (FDI), acquisitions and greenfield start-ups involve the direct ownership of facilities in the target country and, therefore, the transfer of resources including capital, technology, and personnel. Direct ownership provides a high degree of control in the operations and the ability to better know the consumers and competitive environment. However, it requires a high level of resources and a high degree of commitment.
ou borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, th bank also charges you a loan initiation fee of $25, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) Eflective annual interest rate 19.98 %
Answer:
19.20%
Explanation:
For computing the effective annual rate first determine the rate of interest which is shown below;
Given that
NPER = 12
PMT = $90
PV = $1,000 - $25 = $975
FV = $0
The formula is shown below:
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of interest is 1.6097%
Now the effective annual rate is
= (1 + Monthly Interest Rate)^12 - 1
= (1 + 1.6097%)^11 - 1
= 1.016097^11 - 1
= 1.1920291076 - 1
= 19.20%
Moraine, Inc., has an issue of preferred stock outstanding that pays a $5.35 dividend every year in perpetuity. If this issue currently sells for $93 per share, what is the required return
Answer:
5.75%
Explanation:
the required rate of return for a preferred stock can be calculated by dividing the preferred dividend by the current market price:
required rate of return = $5.35 / $93 = 5.75%The preferred dividend is fixed, but the market price varies depending on the required rate of return.
Lyons Company deducts insurance expense of $126,000 for tax purposes in 2014, but the expense is not yet recognized for accounting purposes. In 2015, 2016, and 2017, no insurance expense will be deducted for tax purposes, but $42,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40% and income taxes payable of $108,000 at the end of 2014. There were no deferred taxes at the beginning of 2014.
What is the amount of the deferred tax liability at the end of 2014?
A. $43,200
B. $18,000
C. $0
D. $50,400
Answer:
D. $50,400
Explanation:
The computation of the deferred tax liability is shown below:
= Insurance expense for taxation purpose × rate of tax
= $126,000 × 0.40
= $50,400
Hence, the deferred tax liability is $50,400
Therefore the correct option is C.
Hence, the same is to be considered by applying the above formula in order to determine the accurate amount
