Business College

Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 25 $ 10 Direct labor 22 21 Variable manufacturing overhead 17 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Total cost per unit $ 113 $ 80 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 9. Assume that Cane expects to produce and sell 82,000 Alphas during the current year. A supplier has offered to manufacture and deliver 82,000 Alphas to Cane for a price of $88 per unit. What is the financial advantage (disadvantage) of buying 82,000 units from the supplier instead of making those units

Answers

Answer 1

Answer:

Cane Company

The financial advantage of buying 82,000 units from the supplier instead of making those units is:

= $656,000.

Explanation:

a) Data and Calculations:

Alpha Beta

Selling price $130 $90

Annual production capacity 102,000 102,000 units

Direct materials per unit $25 $10

Direct labor 22 21

Variable manufacturing overhead 17 7

Traceable fixed manufacturing overhead 18 20

Variable selling expenses 14 10

Common fixed expenses 17 12

Total cost per unit $ 113 $ 80

Cost of Alphas Make Buy Difference

Direct materials per unit $25

Direct labor 22

Variable manufacturing overhead 17

Traceable fixed manufacturing overhead 18

Variable selling expenses 14

Total cost per unit $ 96 $ 88 $ 8

Expected production/sales and purchase 82,000 82,000 82,000

Total cost or producing or buying $7,872,00 $7,216,000 $656,000

Related Questions

When constructing a demand function, it is necessary to hold many other factors constant, so that a relationship between price and output can be established.

a. True
b. False

Answers

Answer:

True

Explanation:

The given statement is true because there are other factors that impact the demand for a commodity for example if the income of a person rises then the person will consume more commodity and the demand curve will shift.

Therefore, other factors should be constant while constructing the demand function because keeping other factors constant will not impact the price and output relationship.

Select the correct term for each of the following definitions. Definition Term An interest-earning deposit with a specified maturity date Any good that is widely accepted for purposes of exchange and in the repayment of debt Coins and paper money Which of the following statements about the history of banks are true? Check all that apply. Warehouse receipts, issued by goldsmiths were often used instead of gold itself to make payments. The amount of gold represented by warehouse receipts was less than the actual amount of gold on deposit. Goldsmiths held deposited gold and issued receipts to their customers.

Answers

Question Completion with Options:

Money, Currency, Time Deposit

Answer:

1. Terms Definitions

Time Deposit An interest-earning deposit with a specified maturity date

Money Any good that is widely accepted for purposes of exchange

and in the repayment of debt

Currency Coins and paper money

2. The statements about the history of banks that are true:

Warehouse receipts, issued by goldsmiths were often used instead of gold itself to make payments.

Goldsmiths held deposited gold and issued receipts to their customers.

Explanation:

Banking evolved with the activities of goldsmiths who warehoused gold brought by customers for safeguarding by issuing them with warehouse receipts. Before long, the warehouse receipts were used as a means of payment (or exchange). That is, the warehouse receipts were used as currency, which is the modern-day equivalent of coins and paper money.

Capital budgeting analysis not only requires the evaluation of cash flows but also requires the understanding of the origin of those cash flows. Based on your understanding of cash flows in a firm, complete and answer the following questions The present value of ___________ can be used to determine the basis of a firm's value. Ideally, capital budgeting analysis should take cash flows into account ___________
Understanding the nature of projects
Capital budgeting analysis often involves decisions related to expansion projects and/or replacement projects. Based on your understanding of expansion and replacement projects, complete the following:
If a clothing store opens a second retal location on the other side of town, this project would be considered__________ project.
What are sunk costs?
Acme Manufacturing owns a warehouse that it is not currently using. It could sell the warehouse for $300,000 or use the warehouse in a new project. Should Acme Manufacturing include the value of the warehouse as part of the in investment in the new project or treat the value of the warehouse as a sunk cost?
Yes, include the value of the warehouse as part of the initial investment in the new project
No, treat the value of the warehouse as a sunk cost
The role of externalities
A paper manufacturer has built a plant that meets all government-mandated environmental regulations, but the pl sant odor when it is being operated. Many residents in the area dislike the paper mill because of these unpleasant odors. This is an example of ________externality.

Answers

Answer:

Present Value of Cash Flows

Exactly when they occur

Expansion Project

Sunk cost is the cost which is already incurred and it is not affected by the decision to accept or reject the project.

Include the value of the warehouse as part of the initial investment in the new project.

Negative Externality

Explanation:

Present value of Cash flows is the discounted cash flows which shows the real worth of the money now which is to be received in future. Sunk costs are not part of the project as they are already incurred. These cost are not included in the calculations of the project cash flows. Negative externality is the undesirable impact due to production and manufacturing plants operations on the environment.

On June 30, 2021, Moran Corporation issued $12.5 million of its 12% bonds for $11.4 million. The bonds were priced to yield 14%. The bonds are dated June 30, 2021. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the six months ended December 31, 2021

Answers

Answer:

the reduction in the bond discount is $48,000

Explanation:

The computation of the reduction in the bond discount is as follow;

= ($11,400,000 × 14% × 1 ÷ 2) - ($12,500,000 × 12% × 1 ÷ 2)

= $798,000 - $750,000

= $48,000

Hence, the reduction in the bond discount is $48,000

Here we considered half as the interest is payable on semi-annual basis

Assume the economy of country G produces hotdogs and buns in the following quantities and prices in 2017 and 2018. Assume also that 2017 is the base year and the real GDP will be calculated using 2017 prices. What is the real yearly growth (between 2017 and 2018)

Answers

Answer:

73.70%

Explanation:

Note: The full question is attached as picture below

Real GDP in 2017 = ($3*5) + ($2*2)

Real GDP in 2017 = $15 + $4

Real GDP in 2017 = $19 million

Real GDP in 2018 = ($3*7) + ($2*6)

Real GDP in 2018 = $21 + $12

Real GDP in 2018 = $33 million

Real Growth rate between 2017 and 2018 = [(33 - 19) / 19] * 100 = [14/19] * 100 = 0.73684211 * 100 = 73.684211% = 73.70%

Balance Sheet Jay Pembroke started a business in April. Prepare a Balance Sheet using the following balances for April transactions. Cash $12,950 Accounts Receivable 2,000 Office Supplies 4,600 Prepaid Insurance 1,200 Accounts Payable $300 Jay Pembroke, Capital 18,000 Jay Pembroke, Drawing 100 Service Fees 3,300 Rent Expense 750 You will need to calculate the ending balance of the Capital account.

Answers

Answer:

Jay Pembroke Company

Balance Sheet as of April 30

Assets:

Cash $12,950

Accounts Receivable 2,000

Office Supplies 4,600

Prepaid Insurance 1,200

Total assets $20,750

Liabilities:

Accounts Payable $300

Jay Pembroke, Capital 20,450

Total liabilities + equity $20,750

Explanation:

a) Data and Calculations:

Assets:

Cash $12,950

Accounts Receivable 2,000

Office Supplies 4,600

Prepaid Insurance 1,200

Liabilities:

Accounts Payable $300

Statement of Owner's Equity:

Jay Pembroke, Capital 18,000

Net income 2,550

Jay Pembroke, Drawing (100)

Ending Capital 20,450

Income Statement for the month ended April 30

Service Fees 3,300

Rent Expense 750

Net income 2,550

Compare and contrast different ways in which a taxpayer triggers a realization event by disposing of an asset.

Answers

Answer:

There are many ways a taxpayer can trigger a realization event. She can trigger it through a sale or trade by receiving a value greater than the disposed asset. She can also trigger a realization event by making a gift to charity. Other ways include disposal, for example, to a landfill and destruction through natural disaster. In the latter cases, there is a loss to the taxpayer. With a natural disaster, the taxpayer can only obtain a realization gain if reimbursed by the insurance company.

Explanation:

A realization event happens when there is a sale or a disposal of an asset or a discharge from a liability. There is usually an increase in the value realized from the disposal, which is greater than the asset's value before disposal. It also happens when the taxpayer receives a relief from a liability or completes a profitable transaction.

An upward-sloping yield curve Multiple Choice may be an indication that interest rates are expected to increase. may incorporate a liquidity premium. may reflect the confounding of the liquidity premium with interest rate expectations. All of the options are correct. None of the options are correct.

Answers

Answer:

All of the options are correct.

Explanation:

The upward sloping yield curve includes the signal with related to the rate of interest that are predicted to rise. It incorporated the liquidity premium. Also it present the liquidity premium along with the predictions of the rate of interest that should be confounded

so as per the given situation, all given statement should be considered

hence, all of the options are correct should be relevant

The most important/essential results from the latest decision round that company managers need to review/study in order to guide their strategic moves and decisions to improve their company's competitiveness and rank among the top-performing companies in the upcoming decision round are:_________.
a. the celebrity endorsement data and the 4 graphs showing branded price and S/Q rating trends in each of the four geographic regions on p. 7 of the FIR.
b. the Income Statement and Balance Sheet data on p. 5 of the FR.
c. the strategic group maps for the Internet segment and Wholesale segment for each geographic region in the Competitive Intelligence Report.
d. the Industry Scoreboard and each company's performance on EPS, ROE, stock price, credit rating and image rating displayed on the first 3 pages of the FIR.
e. the Market Snapshot data in the top half of the Competitive Intelligence Report that shows each company's competitive efforts (prices, S/Q rating, models available, and so on) in each geographic region.

Answers

Answer:

e. the Market Snapshot data in the top half of the Competitive Intelligence Report that shows each company's competitive efforts (prices, S/Q rating, models available, and so on) in each geographic region.

Explanation:

In the case when the results arise from the recent decision that taken place the company or the manager should have to study for improving out the competitiveness and the ranking so that the market snapshot data could be done for all the zones and due to this the good decision could be carried out that helps in attaining the goals and objectives of the company

So, the last option is correct

The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130 units at $8 Sales 9,090 units at $11. Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method.

Answers

Answer:

$66,700

b. LIFO = $70800

67807.81

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

(8130 x 8) + [(9090 - 8130) x 6) = 70800

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

(3010 x 6) + [(9090 - 3010) x $8] = 66,700

Average cost = [(3010 x 6) + (8130 x 8)] /

18060

48640

b 65040

5760

Preferred stock issued in exchange for land would be reported in the statement of cash flows in Group of answer choices the cash flows from financing activities section the cash flows from investing activities section a separate schedule the cash flows from operating activities section

Answers

Answer: a separate schedule

Explanation:

Preferred stock, are referred to as the shares of the stock of a company whereby the dividends are paid out to the preference shareholders before the common stock dividends are issued.

It should be noted that the preferred stock which is issued in exchange for the land will be reported in the statement of cash flows in a separate schedule.

1. The ABC Company is producing an item at unit cost of birr 4.
a) If the supply function isq = 160 + 8 p, where q represents the quantity produced
and p represents the market price, then find the total cost function in terms of p.
b) What is the market price at which the company realizes a total profit of birr 500
YIThe

Answers

Answer:

I think its A!

Explanation:

Clark's Chemical Company received refundable deposits on returnable
containers in the amount of $100,000 during 2018. Twelve percent of the
containers were not returned. The deposits are based on the container cost
marked up 20%. What is cost of goods sold relative to this forfeiture?
a. $0.
b. $2,000.
c. $10,000.
d. $14,400.

Answers

Answer: $10000

Explanation:

The cost of goods sold relative to this forfeiture will be calculated thus:

= (Refundable deposit × percent of not returned) / (1 + Markup percentage on cost)

= ($100000 × 12%) / ( 1 + 20%)

= ($100000 × 0.12) / ( 1 + 0.2)

= $12000 / 1.20

= $10000

The cost of goods sold is $10000

Last year Burch Corporation's cash account decreased by $29,000. Net cash provided by (used in) investing activities was $8,400. Net cash provided by (used in) financing activities was $(26,500). On the statement of cash flows, the net cash provided by (used in) operating activities was:

Answers

Answer:

The answer is "-10,900"

Explanation:[tex]\text{Cash from operating activities} + \text{cash from investing activities + cash from financing activities} = -29,000[/tex]

[tex]\text{cash from operating activities}[/tex] [tex]+ 8,400 - 26,500 = -29,000[/tex]

[tex]= -29,000 + 26,500 - 8,400\\\\= -10,900[/tex]

Why do accountants not keep all the accounts at their proper balances continuously throughout the period so that adjusting entries would not have to be made before financial statements are prepared

Answers

Answer:

The transactions are recorded when they incur and then there may be some changes in those transaction later on, they all are adjusted at month end with adjusting entries.

Explanation:

It is not possible for an accountant to continuously keep updating every transaction. They all are recorded at inception and then any changes made in those transactions are adjusted at the month end. All balance are reconciled and verified. There can be events which lead to changes to the transaction after the reporting date then these events are considered as events after reporting period and they are treated differently according to guidelines specified in IAS 10.

How do you identify the need for the meeting?

Answers

What do they mas talk is the need for the meeting and if not what Is the meeting about and that the need

The traditional nonprofit sector has experienced considerable change in recent years with new strategies, actors, and funding vehicles, which have increased the quantity of private capital earmarked for social good.

a. True
b. False

Answers

Answer:

a. True

Explanation:

The Traditional nonprofit center has been changing like the profit for the business in the current years. It includes the various types of strategies and the techniques for funding and different new sources of funding has been provided due to this it created the large amount of capital for the social good purpose

Therefore the given statement is true

Explain the 5 marketing objectives?

Answers

Answer:

Creation of Demand 2. Customer Satisfaction 3. Market Share 4. Generation of Profits 5. Creation of Goodwill and Public Image

Explanation:

The basic purpose of marketing management is to achieve the objectives of the business.

The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $25 per unit. Variable costs for the casing are $12 per unit and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 8,000 units to the Assembly Division at a price of $18 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request.
Calculate the effect on Molding Division’s net income if it accepts the $18 transfer price.

Answers

Answer:

the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit

Explanation:

The computation of the effect on Molding Division’s net income if it accepts the $18 transfer price is shown below:

= Transfer price - variable cost per unit

= $18 - $12

= $6 per unit

Hence, the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit

So, the same is to be considered and relevant

Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices

Answers

Answer:

Net income from operating activities = $77000

Explanation:

Below is the calculation for Net income from operating activities:

Given the net income = $60000

Decrease in accounts receivable = $8000

Increase in accounts payable = $4000

Depreciation = $5000

Add the values in the net income in order to get the net income from operating activities.

Net income from operating activities = 60000 + 8000 + 4000 + 5000

Net Income from operating activities = $77000

A restaurant is considering buying a new coffee making machine, which will be replaced over and over with a new one when an old one dies. Each coffee making machine costs $143,000, and is expected to die after exactly 6-years. Each machine will costs $10,200 per year to operate. The discount rate that the restaurant assigns to this coffee making machine project is 11 percent per year. The straight-line depreciation method would be used when calculating the machine's loss of value for tax purposes. Each coffee making machine will be fully depreciated all the way to zero at the end of its life. Also, each coffee making machine will have a before-tax salvage value of $10,500 at the end of its life. The restaurant's tax rate is 25 percent. As always, assume that all cash flows occur at year end. If the restaurant buys a coffee making machine over and over in perpetuity, as soon as one dies, what would be the average, or the equivalent, annual cost (EAC) of the machine?

Answers

Answer:

Coffee Making Restaurant

If the restaurant buys a coffee making machine in perpetuity, the equivalent annual cost (EAC) of the machine will be:

Equivalent annual cost of the machine = $44,994

Explanation:

a) Data and Calculations:

Initial investment cost of machine = $143,000

Expected useful life = 6 years

Discount rate = 11%

Annual operating cost = $10,200

Before-tax salvage value = $10,500

Applicable tax rate = 25%

After-tax salvage value = $7,875

Annuity factor for 6 years at 11% = 4.231

Present value of costs:

Initial investment = $143,000 ($143,000 * 1)

Annual operating cost = 43,156 ($10,200 * 4.231)

Salvage value = (4,213) ($7,875 * 0.535)

Total costs = $190,369

Equivalent annual cost of the machine = $44,994 ($190,369/4.231)

2. Provide three examples of innovative activities, practices that leaders might undertake. Do not limit your ideas to
those presented in the text.

Answers

Answer:

Examples of innovative activities which leaders might undertake are:

1. Reading and reviewing a book with their employees in an area of organizational deficiency;

2. Encouraging and promoting problem-solving rather than rote activities through the use of financial rewards tied to such activities

3. Carrying our regular (weekly performance) feedback of each person's performance including the leader she or himself in order to ensure timely and goal-oriented course correction.

Cheers

evaluate the pricing strategy of Vinmart retail system

Answers

Answer:i think vinsmart is ok

Explanation:

the role of government in real estate at the federal, state, and local level. Which has the most significant impact on real estate markets

Answers

Answer:

Local government has the most influence on real estate markets. It affects the supply and cost of real estate through zoning and land use regulations, fees on new land development, and restrictive building codes.

Answer:

It affects the supply and cost of real estate through zoning and land use regulations, fees on new land development, and restrictive building codes.... state government generally has the least influence on real estate.

Explanation:

The types of management skills

Answers

Answer:

Technical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...