Sam will not be able to afford all combinations given in the other options as they will cost him more than his money income.
What is a budget constraint?In the field of economics, a budget constraint refers to all the possible combinations of goods and services that a consumer could buy at the market's current pricing and within the limits of his or her available budget. The notions of a budget restriction and a preference map are tools used by consumer theory to explore the dimensions of consumer choices. The total number of things you can buy with your present budget is your budget constraint. The range of options possible within a certain budget is illustrated by a budget limitation. Opportunity cost is the sum or object you forfeit in favor of something else.
Sam's budget constraint would be five training sessions and two rounds of golf since five training sessions will cost him $100 and two rounds of golf will cost him $100 as well. Sam will not be able to afford all of the combinations given in the other options as they will cost him more than his given money income.
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What is NOT an advantage of a corporation?
A Board and shareholders may make decision with little direct knowiedge of business
B Can continue operations indefinitely (business has a long life)
C .People can buy and sell their shares of ownership without the business ending
D Easy to raise capital by selling stocks or bonds
Answer:
a
Explanation:
I think , hope this helps
Eco Cycle, an eco-friendly bicycle manufacturer has developed a new product known as Green Ride. Green Ride is a stationary bicycle for home use which generates power for electronics and household appliances, such as televisions, video game consoles, dishwashers, and washing machines. Given the recent shift toward sustainable living, renewable energy sources, and a focus on positively impacting climate change, Eco Cycle expects this product to do well in the market. While the company knows that all consumers follow a similar adoption process for products, not all consumers follow it at the same time. In one or more fully formed paragraphs, identify each of the five types of adopters and explain in detail the characteristics of each type of adopter for Eco Cycle and the Green Ride.
Answer:
Explanation:
The Green Ride is an ecologically friendly bicycle product from Eco-Cycle. It is to be utilized at home to produce power for gadgets and family things in this way giving an inexhaustible wellspring of energy.
The milestone book " Diffusion of Innovations" by sociologist Everett Rogers in 1962 originally sorted the adopter types premise on specific attributes as recorded beneath:
1) Innovators: These arrangement of individuals receive new innovation or product as they are recently dispatched. This arrangement of individuals are prepared to face challenges and they are the boldest. For this situation, some corporates may get intrigued to evaluate the Green Ride alternative to perceive how it tends to be utilized to save cost on the force front.
2) Early Adopters: This arrangement of individuals make trends and need to see them on the ball, subsequently they will become the early adopters. For this situation, individuals who are lethargic towards open-air exercises will get their hands on this bicycle as it is locally (home) established and be the early adopter of this product.
3) Early Majority: These arrangements of individuals settle on choices dependent on utilities and the useful benefits of the product. For this situation, everyone who is worried about the use and benefits of Green Ride will get input from Early Adopters and can continue likewise.
4) Late Majority: This arrangement of individuals imparts a few qualities to the Early Majority set of individuals yet they are generally careful prior to submission. For this situation, youngsters may not get intrigued to utilize a bicycle which is kept to Indoors as it were.
5) Laggards: These arrangements of individuals are delayed to adjust to new innovation or product. They will in general embrace just when they are constrained. For this situation, the arrangement of individuals who are customary bicycle clients won't be prepared to acknowledge this new product except if compelled to do as such because of the limited development during circumstances such as the present.
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $2.90 per share. What is the current value of one share of this stock if the required rate of return is 8.40 percent
Answer:
$130.97
Explanation:
The value of the firm can be determined by finding the present value of the dividend payments using the two stage dividend growth model
In the 2 stage dividend growth model, dividend is characterised by a fast growth. After this stage , growth in dividend becomes stable
Present value in the first year = (2.90 x 1.15) / 1.084 = $3.08
Present value in the second year = (2.90 x 1.15²) / 1.084² = $3.26
Present value in the third year = (2.90 x 1.15³) / 1.084³ = $3.46
Present value in the fourth year = (2.90 x [tex]1.15^{4}[/tex]) / [tex]1.084^{4}[/tex] = $3.67
Present value in the second stage = ($3.67 x 1.06) / (0.084 - 0.06) = $162.24
$162.24 / [tex]1.084^{4}[/tex] = $117.50
The value of the stock = sum of present values in the first stage of growth + present value in the second stage of growth
$3.08 + $3.26 + $3.46 + $3.67 + $117.50 = $130.97
PLEASE HELP
Question 6 of 20
Lisa decided to take a walk one Sunday afternoon. During her walk a
neighbor's dog broke away from the leash and attacked Lisa. For months
after the attack, Lisa would not go out of her house because she was so
shaken. Why would Lisa most likely be awarded aggravated damages?
A. Because there were witness to the attack who could prove the
attack was intentional
B. Because the neighbor intentionally let the dog loose to attack her
C. Because she was injured by the dog and had a lot of medical bills
to pay
D. Because the attack traumatized her so much that should couldn't
leave the house
Answer:
D. because (context clues)(process of illumination) let go back to "5th grade" ... first of all there was no witnesses mentioned in the scenario second were do they come off talking about a bill nothing was mentioned about a bill thirdly they said the dog 'broke Loose' so if it was intentional them he would have been at her door step. so that's why its D. and plus she was "traumatize" so that leads into fear and fear leads into staying away. and to be honest shes a idiot for not addressing the situation around the same month, if she was so traumatize by what happened.
Answer:
D. Because the attack traumatized her so much that should couldn't
leave the houseExplanation:
Quantities on hand at the end of one month may not be sufficient to last until the next month's count. If the company has taken this into account in establishing reorder levels, then it is very possible that the company carrying too large an investment in inventory which can be costly.
a. True
b. False
Answer:
True
Explanation:
The correct option is - True
Reason -
When the company is considering the quantities in stock available at the end of the month in duly setting their reorder level that indicates it creates buffer stock in company's account and not following just-in-time model, whereby the quantity being ordered when there is demand for the same.
Hereby the investment cost occurred while maintaining the inventory will be higher as comparison to just-in-time inventory model as the money is blocked in the inventory and it will be recovered only when the inventory being sold.
A loan of $400,000 is taken out which requires an annual interest payment of 4.4% of the borrowed amount of money (in market dollars). No principal payments are made, only interest is paid. Inflation is 3.8% per year. What will be the value of interest payment at the end of fourth year in real dollars?
Answer:
payment in real dollars 4 years later = $15,160.84
Explanation:
in current dollars, the interest payment = $400,000 x 4.4% = $17,600
if the inflation rate is 3.8% annual, the value of real dollars will increase by (1 + 3.8%)⁴ - 1 = 1.1609 - 1 = 16.09%
this means that we need to discount the nominal payment by $16.09%;
payment in real dollars 4 years later = $17,600 / (1 + 16.09%) = $15,160.84
what is geography
[tex]draw \: the \: graph \: of \: \sin(x + 3) [/tex]
Answer and Explanation:
In a nutshell, we can say that geography is the science that studies physical space and its elements, and their relationship with human beings. This physical space, corresponds to the planet earth and everything that is formed in it and everything that is formed by it. This term also refers to outer space and all its elements. in this way, geography was able to determine the space between regions, the vegetative composition of a place, the urban composition of a place, the influence of the atmosphere on living beings, how the stars are formed, how the climate of a region is impacted by atmospheric changes, among others.
You have just purchased a new DVD player to show videos to your customers. The DVD player costs $500, and you depreciate the machine at a rate of 25% each year. You can borrow money from the bank at 10%, or receive 6% for depositing money at the bank. The expected inflation rate in the coming year is 5%. You used the company's own funds to purchase the DVD player. The firm's user cost of capital for the first year is:__________.
A. $130
B. $150.
C. $155.
D. $175.
Answer: $130
Explanation:(.25 + .06 - .05)*500
The cost of capital for the DVD is $130. The correct answer is option A.
What is cost of capital?Cost of capital is a the minimum return that would be necessary for a company to justify undertaking a capital budgeting project.
Cost of Capital (k) = Cost of the DVD × ( Rate of depreciation + Borrowing rate + rate of deposit)
k = $500( 0.25+0.10+0.06)
= $130
Therefore, the cost of capital for the first is $130.
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Partially correct answer. Your answer is partially correct. Try again. On January 10, 2019, Sheffield Corp. sold merchandise on account to Concord Co. for $21,600, n/30. On February 9, Concord Co. gave Sheffield Corp. a 12% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable. (Omit cost of goods sold entries.) (
Answer:
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
Explanation:
Preparation of the journal entry to record the sale and the settlement of the account receivable
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
(Being to record Sales revenue)
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
(Being to record settlement of the account receivable)
The plant manager has asked you to do a cost analysis to determine when currently owned equipment should be replaced. The manager stated that under no circumstances will the existing equipment be retained longer than two more years and that once it is replaced, a contractor will provide the same service from then on at a cost of $97,000 per year. The salvage value of the currently owned equipment is estimated to be $37,000 now, $30,000 in 1 year, and $19,000 two years from now. The operating cost is expected to be $85,000 per year. Using an interest rate of 10% per year, determine when the defending equipment should be retired. Annual Worth of Defender, Year 1
Answer:
Year 1 Annual Worth of Defender -$95,700
Explanation:
Calculation to determine when the defending equipment should be retired
Year 1 Total Annual worth=-$37,000(AP 10%,1)-$85,000+($30,000 (AP 10%,1)
Year 1 Total Annual worth=-$37,000(1.10)-$85,000+$30,000(1.000)
Year 1 Total Annual worth= -$95,700
Therefore Total Annual worth of currently owned equipment for year 1 is -$95,700
Year 2 Total Annual worth=-$37,000(AP 10%,2)-$85,000+($30,000 (AP 10%,2)
Year 2 Total Annual worth=-$37,000(0.57619)-$85,000+$19,000(0.47619)
Year 2 Total Annual worth=-$97,217
Therefore the Total Annual worth of currently owned equipment for year 2 is $-97,271
Therefore Based on the above calculation the
the economic service life of equipment will be year 1 reason been that Year 1 Total annual worth of costs of the amount of -$95,700 is lesser in a situation where the equipment is been retained for 1 year.
Symington Corporation uses the periodic inventory system. At December 31, 20X1, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count: Goods held on consignment at Murphy Corporation $ 23,000 Merchandise shipped to a customer on 12/30/20X1 f.o.b. destination (merchandise arrived at customer's location on 1/3/20X2) 12,000 Merchandise shipped to a customer on 12/29/20X1 f.o.b. shipping point (merchandise arrived at customer's location on 1/2/20X2) 6,000 Merchandise purchased from a supplier, shipped f.o.b. destination on 12/29/20X1, in transit at year-end 24,000
Symington's 2018 ending inventory should be:________
Answer:
See below
Explanation:
With regards to the above information, Symington's 2018 ending inventory would be computed as seen below;
= Ending inventory balance at December 31, 20X1 + Goods held on consignment at Murphy corporation + Merchandize shipped to customer on 12/30 and arrived at customer' location on 1/3/2017
= $320,000 + $23,000 + $12,000
= $355,000
Therefore, Symington's 2018 ending balance should be $355,000.
Note that other given information are not relevant to the computation of the ending inventory.
Suppose you expect Longs Drug Stores to pay an annual dividend of $2 per share in the coming year and to trade $40 per share at the end of the year. If investments with equivalent risk to Longs' stock have an expected return of 6%, what is the most you would pay today for Longs' stock
Answer:
$39.62
Explanation:
Calculation to determine what is the most you would pay today for Longs' stock
Using this formula
P0=Div1+P1/1+rE
Let plug in the formula
P0=$2+$40/(1+.06)
P0=$42/1.06
P0=$39.62
Therefore the most you would pay today for Longs' stock is $39.62
The balance in the Work in Process Inventory at any point in time equals Multiple Choice the costs for jobs finished during the period but not yet sold. the manufacturing cost of jobs ordered but not yet started into production. the sum of the manufacturing costs for all jobs in process but not yet completed. the manufacturing costs of all jobs started during the period, completed or not. the sum of the materials, labor and overhead costs paid during the period.
Answer:
the sum of the costs of all jobs started but not yet completed
Explanation:
Work in process inventory can be regarded as those materials that are partially completed within a production cycle. The materials are direct labour costs as well as factory overheads, raw materials along with cost needed to develop the material till it becomes final product. It should be noted that The balance in the Work in Process Inventory at any point in time equals the sum of the costs of all jobs started but not yet completed
Compute the Z-scores for the second observation of the following data values: X: 462 490 350 294 574
Answer:
0.5
Explanation:
Zscore = (x - mean) / standard deviation
Given the data:
X : 462 490 350 294 574
The second observation = 490
The mean and standard deviation of the data could be obtained using a calculator :
Mean = 434
standard deviation = 112
ZSCORE = (490 - 434) / 112
ZSCORE = 56 / 112
ZSCORE = 0.5
In an effort to reduce costs, many regional power companies want to lower their safety stock of electricity transformers. To support this desire, a large transformer OEM will store safety stock of transformers in a FedEx warehouse in Memphis, Tennessee in order to insure quick air delivery to any of these is power companies should the need arise. This collaboration will result in lower overall inventory across the supply chain, making it possible for all parties to lower their costs.
1. The OEM has signed up 14 power companies on this rapid replenishment program. On average, each of these power companies used to hold 38 transformers in their safety stock. In total, how many transformers would these companies hold?
2. To maintain the same service level after this transition, how many units (transformers) would the OEM need to hold (or pool) in the FedEx warehouse?
3. After making this change for these power companies and OEM, by how many units (transformers) will inventory go down?
4. By what percentage would their inventory decrease by consolidating their inventory from the dealerships into the warehouse?
Answer:
1. Total transformers held by power companies = 532
2. The total units of transformers that OEM needs to hold in the FedEx warehouse = 38
3. The inventory of transformers will go down by 494.
4. The percentage of the decrease = 93%.
Explanation:
Power companies signed up on the rapid replenishment program = 14
Average number of transformers held in safety stock by each power company = 38
Total number of transformers in safety stock = 532 (14 * 38)
Number of transformers needed in the FedEx warehouse = 38
Inventory will go down by 494 (532 - 38)
Percentage of inventory decrease = 93% (494/532 * 100)
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials $170,000 Direct labor $110,000 Variable manufacturing overhead $200,000 Fixed manufacturing overhead $240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:
Answer:
Under variable costing, the company's net operating income for the year would be $60,000 lower than under absorption costing.
Explanation:
The computation of the operating income under variable costing is shown below:
But before that following calculations need to be done
Fixed manufacturing overhead per unit is
= $240,000 ÷ 20,000 units
= $12 per unit
Ending Inventory units is
= 20,000 units - 15,000 units
= 5,000 units
Now Cost of ending Inventory deferred under absorption costing is
= 5,000 units × $12
= $60,000
So, the second option is correct
On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2022, and December 15, 2023. Ignore interest charges. Rigsby has a December 31 year-end. In 2022, Rigsby would recognize realized gross profit of:
Answer:
I have the same gesture
Explanation:
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Blossom Chemicals Company acquires a delivery truck at a cost of $32,800 on January 1, 2022. The truck is expected to have a salvage value of $4,200 at the end of its 4-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
Answer:
$16400
$8200
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation factor = 2/4 = 0.5
Depreciation expense in year 1 = 0.5 x $32,800 = $16,400
Book value at the beginning of year 2 = $32,800 - $16,400 = $16400
Depreciation expense in year 2 = 0.5 x $16,400= $8200
Suppose you bought 1,100 shares of stock at an initial price of $46 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $41. a. Compute your total dollar return on this investment
Answer:
$-4994
Explanation:
Total dollar return = number of stocks bought x (dividend return + price return)
price return is the return on investment as a result of appreciation or depreciation of share price
Dividend return is the return on investment from dividend earned
price return = price at the end of the year - price at the beginning of the year
$41 - $46 = $-5
1100 x ($-5 + $0.46) = $-4994
Joe bought a stock at $57 per share. The price promptly fell to $55. Joe held on to the stock until it again reached $57, and then he sold it once he had eliminated his loss. If other investors do the same to establish a trading pattern, this would contradict _______. Multiple Choice the strong-form EMH the semistrong-form EMH technical analysis the weak-form EMH
Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January year 1 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1.
Answer:
Spalding Pointers Corporation
Sales Budget
For the first quarter of year 1.
Details January February March
Sales revenue ($) 120,000 126,000 132,300
Explanation:
Before preparing the sales budget, the following are calculated first:
Expected sales in January year 1 = $120,000
Expected sales in February year 1 = Expected sales in January year 1 * (100% + Expected percentage increase) = $120,000 * (100% + 5%) = $126,000
Expected sales in March year 1 = Expected sales in February year 1 * (100% + Expected percentage increase) = $126,000 * (100% + 5%) = $132,300
The sales budge will now look as follows:
Spalding Pointers Corporation
Sales Budget
For the first quarter of year 1.
Details January February March
Sales revenue ($) 120,000 126,000 132,300
Finances and lack of money are the main reasons that all businesses fail. Suppose your roommate, a Spanish major, tells you they have just inherited the family business from their grandparents. They know you are a business student who is studying entrepreneurship. Describe and explain in 4 separate sentences how the following 4 financial analysis tools can help the small business owner avoid going out of business due to lack of money.
1. Income statement - what is it and what information does it provide to the business owner?
2. Balance sheet - what is it and what information does it provide to the business owner?
3. Statement of cash flows - what is it and what information does it provide to the business owner?
4. Ratio analysis - what is it and what information does it provide to the business owner?
Answer:
See the explanation below.
Explanation:
1. Income statement - what is it and what information does it provide to the business owner?
An income statement can be described as a financial statement that provides information about how profitable a business was during a particular reporting period.
An income statement provides to the business owner information about revenue, expenses, income and losses of his/her business.
2. Balance sheet - what is it and what information does it provide to the business owner?
A balance sheet can be described as a financial statement shows the level of financial position of a company at a specific point in time.
A balance sheet provides to the business owner information about assets, liabilities and owner's equity of his/her business at a specific point in time.
3. Statement of cash flows - what is it and what information does it provide to the business owner?
A statement of cash flows can be described as a financial statement that provides the summary of how much cash and cash equivalents enter and leave a business.
A statement of cash flows provides to the business owner information about cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities of his/her business.
4. Ratio analysis - what is it and what information does it provide to the business owner?
A ratio analysis or financial ratio analysis can be described as a relative magnitude of two numerical values that selected the financial statements of a business.
A ratio analysis provides to the business owner information that enables him to gain insight into the liquidity, operational efficiency, and profitability of his/her business.
Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18.56 trillion Be sure to put your answer in percentage form, and round answers to two decimal places. a. Calculate the output gap for 2017. % b. Calculate the output gap for 2018. % c. From 2017 to 2018, the output gap became more .
Answer:
a. Output gap for 2017 = –0.66%
b. Output gap for 2018 = 0.27%
c. From 2017 to 2018, the output gap became more positive.
Explanation:
The following are given in the question:
Year Potential GDP Real GDP
2017 $18.17 trillion $18.05 trillion
2018 $18.51 trillion $18.56 trillion
To calculate output gap in percentage form, the following formula is used:
Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)
Therefore, we have:
a. Calculate the output gap for 2017. %
Using equation (1), we have:
Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%
b. Calculate the output gap for 2018. %
Using equation (1), we have:
Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%
c. From 2017 to 2018, the output gap became more .
Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.
On January 1, 2021, Gundy Enterprises purchases an office building for $305,000, paying $55,000 down and borrowing the remaining $250,000, signing a 9%, 10-year mortgage. Installment payments of $3,166.89 are due at the end of each month, with the first payment due on January 31, 2021.
Required:
a. Record the purchase of the building on January 1, 2021.
b. Complete the first three rows of an amortization schedule.
c. Record the first monthly mortgage payment on January 31, 2021.
d. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?
Answer:
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Prepare a bank reconciliation for Cole Co. assuming the following as of May 31. Use the worksheet provided in the Ch 7 Module: 1) The company's cash account as a debit balance of: $95,250 2) The bank statement shows a balance of: $82,500 3) April 30 outstanding checks: $11,317 5) A credit memorandum was received by the bank, but not recorded by Cole Co. by May 31 a) Cash collected by the bank: $18,000 b) Collection fee deducted by bank: $45 6) Check 1115 was written and drawn for $1,350 but was erroneously entered in the accounting records as $1,050. The check was for rent. 7) May 31st daily cash sales were deposited but did not appear on the May 31 bank statement. $41,750 8) Interest earned, but not recorded:
Answer:
Cole Co.
Bank Reconciliation Statement
Balance as per cash account adjusted $112,933
add uncredited deposits 11,317
less Outstanding checks -41,750
Balance as per bank statement $82,500
Explanation:
a) Data and Calculations:
Cash account debit balance = $95,250
Bank statement balance = $82,500
Outstanding checks = $11,317
Credit memorandum $18,000
Collection fee $45
Check 1115 for Rent Expense of $1,350 transposed as $1,050 = $300 ($1,350 - $1050)
Uncredited deposits = $41,750
Interest earned = $28
Cash Account Adjustment:
Cash account debit balance $95,250
Debit:
Credit memorandum 18,000
Interest earned 28
Credit:
Collection fee -45
Rent Expense (understated) -300
Adjusted cash account balance $112,933
b) The bank reconciliation statement above was prepared after adjusting the cash account with items that were recorded by the bank but not recorded by Cole Co. and other misstatements. With the adjusted cash account balance, the bank reconciliation was then carried out with the items that were not recorded by the bank. The resulting figure should agree with the bank statement balance.
North Pole Toys needs to decide on their newest product line for Christmas. They narrowed their options to two possibilities: Product A would incur a fixed cost of $3,000 and a variable cost of $6 per unit and sells for $7.50; Product B would incur a fixed cost of $1,200 and a variable cost of $9 per unit and sells for $10.
A. What is the break-even point for each of the two products?
B. What is the point of indifference between the two products?
Answer:
A-1. Product A break-even point = 2,000 units
A.2. Product A break-even point = 1,200 units
B. Point of indifference between the two products = 600 units
Explanation:
A. What is the break-even point for each of the two products?
Break-even point which is the point at which the total cost of production of a product is equal to the total revenue of the product can be calculated using the following formula:
Break-even point = Fixed cost / (Selling price per unit - Variable cost per unit) ........ (1)
Using equation (1), we have:
A-1. Product A break-even point = $3,000 / ($7.50 - $6) = 2,000 units
A.2. Product A break-even point = $1,200 / ($10 - $9) = 1,200 units
B. What is the point of indifference between the two products?
Point of indifference between the two products which is the point at which the total costs of the two products are the same can be calculated as follows:
Differential fixed cost = Product A fixed cost - Product B fixed cost = $3,000 - $1,200 = $1,800
Differential variable cost per unit = Product B fixed cost variable cost per unit - Product A variable cost per unit = $9 - $6 = $3
Point of indifference between the two products = Differential fixed cost / Differential variable cost per unit = $1,800 / $3 = 600 units
Note: To obtain any of the two differentials, the lower must be deducted from the higher as done above.
First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more than 5 years. Suppose that a 12-month Gap Analysis predicts a decrease in 2021 interest income of $3 million if there is a sudden 1% drop in market interest rates. From your knowledge of the practical flaws in gap analysis, a realistic simulation analysis would predict that:_______.
1. Interest income will drop by more than $3 million for a sudden 1% drop in market interest rates
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Answer:
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Explanation:
Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line
So the option 2 is correct
On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
No Date General Journal Debit Credit
1 Jan. 2 Gain on disposal of machinery 1,000
Accumulated depreciation 28,000
Answer:
Dr Accumulated depreciation-Machinery 28,000
Dr Loss on disposal 1000
Cr Cash 1000
Cr Machinery 28,000
Explanation:
Based on the information given the appropriate journal entry to record the transaction on On January 2 is :
On January 2
Dr Accumulated depreciation-Machinery 28,000
Dr Loss on disposal 1000
Cr Cash 1000
Cr Machinery 28,000
Peter and Lois are planning to open a restaurant that will feature Lois's world-renowned meatloaf. Everyone who has tasted Lois's meatloaf has ranted and raved that it is the most delectable meal they have ever had. Luckily for Peter and Lois, the meatloaf is made using a secret recipe that no one else in the whole world knows about. The only detail of the plan that troubles them is that neither of them knows anything about running a business. In S.W.O.T. Analysis, Lois's secret meatloaf recipe is a _____ and the couple's ignorance about running a business is a _____ in their situation analysis.
Answer:
Peter and Lois Restaurant
In S.W.O.T. Analysis, Lois's secret meatloaf recipe is a _strength____ and the couple's ignorance about running a business is a __weakness___ in their situation analysis.
Explanation:
SWOT means Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses refer to internal capabilities or resources that are available or lacking. Opportunities and Threats refer to external returns and risks that can elevate or threaten the achievement of business goals.
During Year 3, Anywhere, Inc. (AI) incurred the following product costs. Raw materials $ 78,000 Labor 94,288 Overhead 66,000 The Year 2 ending balance in the Work in Process (WIP) account was $34,000. Accordingly, this is the beginning WIP balance for Year 3. There were 125 units of product in beginning WIP inventory. AI started 1,940 units of product during Year 3. Ending WIP inventory consisted of 110 units that were 70 percent complete. Required Prepare a cost of production report by filling in the cells that are left blank.
Answer:
Units Complete 1955
Total Product Costs $ 272,288
$ 139.28 per EUP
Total Costs Accounted For = $ 272,292.4
Explanation:
Anywhere, Inc. (AI)
Physical Flow of Units
Beginning Units 125
Units Started 1940
Total units Available for Completion 2065
Less Ending Inventory 110
Units Complete 1955
Total Products Costs
Beginning Inventory Costs $34,000
Material Costs $ 78,000
Labor 94,288
Overhead 66,000
Total Product Costs $ 272,288
Cost Per Equivalents Units
Cost Per Equivalent Unit= Total Cost/ Equivalent Units
= 272288/1955
=139.277
= $ 139.28 per EUP
Costs Accounted For:
Cost Transferred to Finished Goods= ( 1955- 77=1878)*139.28= $261567.84
Ending Inventory Costs = (110*0.7=77)*139.28= 10724.39
Total Costs Accounted For = $ 272,292.4
Which is the almost the same as the given costs
Given Costs= $ 272,288
Costs Accounted For $ 272,292.4
The difference of $4 is due to rounding off.