Answer: 0.48
Explanation:
The probability that the residents of a household own 2 cars and have an income over $50,000 a year can be calculated by;
= Probability that residents own 2 cars if annual household income is over $50,000 * probability of households earning more than $50,000
= P(Two cars I 50,000+) * P(50,000 +)
= 80% * 60%
= 0.48
What are closing entries and why are they important in accounting?
Answer:7
Explanation:14
Answer:
The purpose of the closing entry is to reset the temporary account balances to zero on the general ledger, the record-keeping system for a company's financial data. Temporary accounts are used to record accounting activity during a specific period.
Explanation:
The chapter explains that to be professionally successful, you must learn to communicate ______ and Mercedes suggests you can do this by ______.a. âdigitally; leveraging your own experience as a Millennial.b. "virtually" with globalâ teams; asking advice onâ face-to-face relationship building.c. globally; sharing moments of company significance with the public.d. in a wide range of workâ situations; learning new skills from more experienced peers.e. through common social mediaâ channels; relying on your personal social media practices.
Answer:
The chapter explains that to be professionally successful, you must learn to communicate __in a wide range of work situations;____ and Mercedes suggests you can do this by __learning new skills from more experienced peers.____.
Explanation:
In our modern business world, communication is key. To be successful, the professional must learn new skills and apply them on an ongoing basis. They must be ready to share impactful stories with others and to communicate under a variety of platforms.
Stepsis is doing laundry today, but the machine is not working, she crawls in and sees whats wrong, she fixes it but shes stuck, she calls StepBro.
What should StepBro do?
A. Call Jamal
B. Pull her out
C. Dice Roll Dance And Bunny Hop Dance
D. I like ya cut G her
Answer:
b or d
Explanation:
because pulling her out might get the problem done faster , but I like ya cut g her could resolve in even more action . um I go with d
Answer:
B
Explanation:
Be a decent human being boys
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows. KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Liabilities and Equity Cash $ 180,800 Accounts payable $ 245,500 Inventory 537,200 Kendra, Capital 93,000 Cogley, Capital 212,500 Mei, Capital 167,000 Total assets $ 718,000 Total liabilities and equity $ 718,000 Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.)
1. Inventory is sold for $600,000.
2. Inventory is sold for $500,000.
3. Inventory is sold for $320,000 and any partners with capital deficits pay in the amount.
Answer:
a. Inventory is sold for $600,000.
gain on sale of inventory = $600,000 - $537,200 = $62,800
allocation of gain:
Kendra 1/2 x $62,800 = $31,400
Cogley 1/3 x $62,800 = $20,933
Mei 1/6 x $62,800 = $10,467
Dr Cash 600,000
Cr Inventory 537,200
Cr Gain on sale of inventory 62,800
Dr Gain on sale of inventory 62,800
Cr Kendra, capital 31,400
Cr Cogley, capital 20,933
Cr Mei, capital 10,467
Dr Accounts payable 245,500
Cr Cash 245,500
Dr Kendra, capital 124,400
Dr Cogley, capital 233,433
Dr Mei, capital 177,467
Cr Cash 535,300
b. Inventory is sold for $500,000.
loss on sale of inventory = $500,000 - $537,200 = -$37,200
allocation of loss:
Kendra 1/2 x $37,200 = $18,600
Cogley 1/3 x $37,200 = $12,400
Mei 1/6 x $37,200 = $6,200
Dr Cash 500,000
Dr Loss on sale of inventory 37,200
Cr Inventory 537,200
Dr Kendra, capital 18,600
Dr Cogley, capital 12,400
Dr Mei, capital 6,200
Dr Loss on sale of inventory 37,200
Dr Accounts payable 245,500
Cr Cash 245,500
Dr Kendra, capital 74,400
Dr Cogley, capital 200,100
Dr Mei, capital 160,800
Cr Cash 435,300
c. Inventory is sold for $320,000 and any partners with capital deficits pay in the amount of their deficits.
loss on sale of inventory = $320,000 - $537,200 = -$217,200
allocation of loss:
Kendra 1/2 x $217,200 = $108,600
Cogley 1/3 x $217,200 = $72,400
Mei 1/6 x $217,200 = $36,200
Dr Cash 320,000
Dr Loss on sale of inventory 217,200
Cr Inventory 537,200
Dr Kendra, capital 108,600
Dr Cogley, capital 72,400
Dr Mei, capital 36,200
Dr Loss on sale of inventory 217,200
Dr Cash 15,600
Cr Kendra, capital 15,600
Dr Accounts payable 245,500
Cr Cash 245,500
Dr Cogley, capital 140,100
Dr Mei, capital 130,800
Cr Cash 270,900
Discuss environmental factors related to population that are changing the way certain people approach car buying and are thus creating new market segments.
Explanation:
Sustainability is a subject that is growing in the world in which we live, there is a greater dissemination of information on environmental responsibility in the communication media and campaigns so that there is a reduction in the environmental impacts caused by large companies.
The greater interest in the subject, leads to a greater awareness and desire of people to consume sustainable products, this scenario leads to two considerations: companies are encouraged to implement environmental protection programs, and new products and services that meet the new requirements emerge. environmental requirements that are emerging, such as the greater demand for electric cars, which have cleaner and more sustainable energy.
Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $388,000, $141,000, and $96,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,800, and work in process at the end of the period totaled $30,000.
Required: a.
(1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials
(2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor
(3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead
b. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting
Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Answer:
Following are the solution to this question:
Explanation:
In point 1:
Date Title post reference Dr. Cr. 30-sep Method work – refining 141 388000
Materials 131 385000
In point 2:
Date Title post reference Dr. Cr. 30-sep Method work – refining 141 141000
Payable Wages 251 141000
In point 3:
Date Title post reference Dr. Cr. 30-sep Method work – refining 141 96800
Factory overhead- refining 151 96800
In part B:
Date Title post reference Dr. Cr. 30-sep Method work – Sifting 142 625600
[tex](388000+141000+96800+(29800-30000))[/tex]
Method work – refining 141 625600
Lower wages in the U.S. auto industry would ______ the prices of autos and ______ the quantity exchanged.
Answer:
Lower wages in the U.S. auto industry would DECREASE the prices of autos and INCREASE the quantity exchanged.
Explanation:
When the price of key inputs decreases, the supply curve shifts to the right, increasing the total quantity supplied and at the same time decreasing the equilibrium price. The same would happen if the price of steel, plastics (oil) or any other key input decreased.
On the other hand, an increase int he price of key inputs will shift the supply curve to the left, decreasing the total quantity supplied and increasing equilibrium price.
Hodgkiss Mfg., Inc., is currently operating at only 91 percent of fixed asset capacity. Current sales are $715,000. Fixed assets are $520,000 and sales are projected to grow to $790,000. How much in new fixed assets are required to support this growth in sales?
Answer:
$2,980
Explanation:
To calculate the amount of new fixed assets required to support project sales, we need to first determine the amount of fixed assets required to support $1 of sales
The sales value at full capacity is;
Full capacity sales = 715,000 / 0.91
Full capacity sales = $785,714
To calculate the $ amount of fixed asset requires to support $1 in sales, we need to first calculate the ratio of fixed asset to sales. The ratio is;
Fixed asset to sales = 520,000 / 785,714 = 0.662
Hence, to support a sales of level of $790,000 the total amount of fixed assets required will be;
Total fixed assets required = $790,000 × 0.662 = $522,980
Therefore, new fixed assets required
= $522,980 - $520,000
= $2,980
A building was purchased for $68,000. The asset has an expected useful life of eight years and depreciation expense each year is $5,000 using the straight-line method. What is the residual value of the building?A. $13,625 B. $8,625 C. $37,000.
The options provided are incorrect. The correct answer is given below.
Answer:
Residual value = $28000
Explanation:
The straight line method of charging depreciation is a method that charges a constant depreciation expense throughout the useful life of the asset. The formula to calculate the depreciation expense under the straight line method is as follows,
Depreciation expense = (Cost - Residual value) / Estimated useful life of the asset
Plugging in the values for depreciation expense, cost and estimated useful life, we can calculate the residual value to be,
5000 = (68000 - Residual value) / 8
5000 * 8 = 68000 - Residual value
40000 + Residual value = 68000
Residual value = 68000 - 40000
Residual value = $28000
Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020Accounts receivable (net) $22 $33 Net sales $132 $117 Cost of goods sold $77 $72 Net income $22 $34 Inventory turnover 6.05 Return on assets 12.3 % Equity multiplier 2.53 Dowling's return on equity for 2021 is: (Round your answer to 1 decimal places.)Multiple Choicea) 7.7%.b) 16.7%.c) 31.1%.d) 24.1%.
Answer:
The answer is "12.7"
Explanation:
In the question the correct choice is missing so, its correct solution can be defined as follows:
Following are the formula for calculating the "Average Inventory":
Formula:
[tex]\therefore \text{Inventory Turnover} = \frac{ \text{Cost of Goods Sold}} { \text{Average Inventory}}\\\\\\\because \text{Average Inventory} = \frac{ \text{Cost of Goods Sold}} {\text{Inventory Turnover}}[/tex]
[tex]=\frac{\$ \ 77}{ 6.05}\\\\=12.7\\[/tex]
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $260,000, variable expenses of $145,000, and traceable fixed expenses of $33,000. During the same month, the West business segment had sales revenues of $930,000, variable expenses of $488,000, and traceable fixed expenses of $177,000. The common fixed expenses totaled $262,000 and were allocated as follows: $131,000 to the East business segment and $131,000 to the West business segment.
The contribution margin of the West business segment is:
Answer:
=$422,000
Explanation:
As per the contribution margin concept, the contribution margin per unit is equal to the selling price per unit minus variable costs.
Therefore, the total contribution margin is the sales minus variable costs.
The contribution margin for the west will be sales($930,000) minus variable cost($488,000)
=$930 ,000 - $488,000
=$422,000
Leia just read that the national debt owed by the federal government is at an all-time high. (Explain any possible impact on the federal government from unexpected inflation.)
Answer:
If the government of the country where Leia is from has a national debt at an all-time high, and at the same time, unexpected high inflation hits, the situation for the government can become extremely dire.
This is because high inflation will lower the value of the domestic currency, which is probably not the currency in which most of of the debt is owed. The proportion of the national debt that is owed in foreign currency will then become more expensive, because more units of domestic currency will be needed to exchange for the foreign currency, rendering the cost of the national debt a lot higher.
On January 2, 2017, Kellogg Corporation acquired equipment for$800,000. The estimated life of the equipment is 5 years or 80,000 hours. The estimated residual value is $10,000. What is the book value of the asset on December 31, 2018, if Kellogg Corporation uses the straight−line method of depreciation? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)
A. $790,000
B. $800,000
C. $484,000
D $642,000
Answer:
Book value of the asset = $484,000
Explanation:
Given:
Equipment cost = $800,000
Residual value = $10,000
Computation:
Depreciation = (Equipment cost - Residual value) / Life
Depreciation = ($800,000 - $ 10,000) / 5
Depreciation = $ 158,000 per year
Depreciation for 2 year =$ 158,000 x 2
Depreciation for 2 year = $316,000
Book value of the asset = Equipment cost - Depreciation for 2 year
Book value of the asset = $800,000 - $316,000
Book value of the asset = $484,000
Which of the following summarizes the AIDA steps in the persuasive process? A. Get attention, insinuate action, create desire, initiate acceptance B. Get acceptance, invite questions, designate action, encourage attention C. Get attention, arouse interest, create desire, encourage action D. Get attention, initiate action, discuss benefits, create acceptance
Answer:
C. Get attention, arouse interest, create desire, encourage action
Explanation:
Remember, AIDA which stands for Awareness, Interest, Desire, Action refers to a step process that explains the main thought process an individual passes through before they finally decide to buy a product or service.
The persuasive process begins:
First with getting attention or awareness for the product or service. Next, arouse interest in the minds of potential customers, this, in turn, creates desire, which leads to the final step; encourage action to buy the product or service.
What is the effect on real GDP of a $150 billion change in planned investment if the MPC is 0.65? $ nothing billion. (Enter your response rounded to the nearest whole number.)Consumption $1,200 2,100 3,000 Disposable Income $3,000 4,000 5,000 Given the consumption schedule in the table above, the marginal propensity to consume is:______a. 0.1b. 0.3c. 0.9d. 0.6
Answer and Explanation:
The computation of the effect on real GDP is shown below:
change in GDP is
= Multiplier × change in investment
= 1 ÷ (1 - MPC) × change in investment
= 1 ÷ (1 - 0.65) × $150 billion
= 2 × $150 billion
= $300 billion
And, the marginal propensity to consume is
= Change in spending of consumer ÷ income change
= (2,100 - 1,200) ÷ (4,000 - 3,000)
= 900 ÷ 1,000
= 0.9
What are three strategies that you can use to make better financial decisions?
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients.
Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 90,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $1,080,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $1,098,900 and its actual total direct labor was 93,350 hours.
Required:
Answer:
1. Predetermined overhead rate = $12.50
2. Job Cost = $62,500
Explanation:
Note: The Requirement is attached as picture below
1. Predetermined fixed overhead rate = Estimated fixed manufacturing overhead / Estimated total amount of the allocation base
Predetermined fixed overhead rate = $1,080,000 / 90,000
Predetermined fixed overhead rate = $12 per Direct labor hour
The Predetermined variable overhead rate per Direct labor hour is $0.50
Predetermined overhead rate = Fixed overhead rate + Variable overhead rate
Predetermined overhead rate = $12 + $0.50
Predetermined overhead rate = $12.50
2. The total job cost is given below:
Job Cost = Direct material + Direct labor + Overheads
Job Cost = $38,000 + $21,000 + (280*$12.50)
Job Cost = $38,000 + $21,000 + $3,500
Job Cost = $62,500
Calculate current assets Sales Revenue $25,000 Accounts Payable $1,200 Accounts Receivable $2,600 Inventory $3,200 Supplies $300 Cost of Goods Sold $16,000 Notes Payable (due in 2 years) $24,000 Equipment $40,000 Accumulated Depreciation $12,000 Land $30,000 Unearned Revenue $1,100 Taxes Payable $1,400 Prepaid Rent (3 months) $2,100 Cash $5,200
Answer: $13,400
Explanation:
Current Assets are those that will be used up in a year and in this question are;
= Accounts Receivable + Inventory + Supplies + Prepaid rent + Cash
= 2,600 + 3,200 + 300 + 2,100 + 5,200
= $13,400
Suppose $200 is deposited in a savings account at the beginning of each of 15 years and the account pays 8% per annum, the value at the end of 15 years will be about:_________.
Answer:
FV= $5,864.86
Explanation:
Giving the following information:
Annual deposit= $200 at the beginning
Number of periods= 15 years
Interest rate= 8%
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= annual deposit
FV= {200*[(1.08^15) - 1]}/0.08 + {[(200*(1.08^15)] - 200}
FV= 5,430.42 + 434.44
FV= $5,864.86
(Algo) Analyzing Special-Order Decision [LO 7-2, 7-3]
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,900 of the US umbrellas at a price of $27 each. Mohave currently has the excess capacity necessary to accept the offer. The following information is related to the production of the US umbrella:
Direct materials $ 12.00
Direct labor 6.00
Variable manufacturing overhead 8.00
Fixed manufacturing overhead 2.50
Total cost $ 28.50
Regular sales price $ 35.00
Required:
1. Compute the incremental profit (or loss) from accepting the special order.
2. Should Mohave accept the special order?
Answer:
Because there is unused capacity, and the effect on income is positive, the offer should be accepted.
Explanation:
Giving the following information:
Lost Mine has offered to buy 2,900 of the US umbrellas for $27 each.
Production costs:
Direct materials $ 12.00
Direct labor 6.00
Variable manufacturing overhead 8.00
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Unitary production cost= $26
Net effect on income= 2,900*(27 - 26)
Net effect on income= $2,900 increase
Because there is unused capacity, and the effect on income is positive, the offer should be accepted.
When a company sells goods, it removes their cost from the balance sheet and reports the cost on the income statement as:A. Selling Expenses.B. Cost of Goods Sold.C. Finished Goods Inventory.D. Inventory.
Answer:
B. Cost of Goods Sold.
Explanation:
When a company sells goods, it removes their cost from the balance sheet and reports the cost on the income statement as cost of goods sold.
For instance, in a perpetual system of inventory; which can be defined as a method of financial accounting, that involves the updating informations about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by the customers, through the use of enterprise management software applications and a digitized point-of-sale equipment.
Under a perpetual system of inventory, updates of the journal entry for cost of goods sold or received would include debiting accounts receivable and crediting sales immediately as it is being made or happening. The advantage of the perpetual system of inventory over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft etc.
In Accounting, to record a journal entry for a sale on account, the account receivable would be debited because it is an asset and shall be increased with debits while crediting the sales account for the amount being paid by the customer.
Jammer Company uses a perpetual weighted average inventory system and reports the following: August 2 Purchase 17 units at $15.00 per unit. August 18 Purchase 19 units at $13.00 per unit. August 29 Sale 34 units. August 31 Purchase 22 units at $18.00 per unit. What is the per-unit value of ending inventory on August 31?
Answer:
Weighted-average ending inventory cost= $17.75
Explanation:
First, we need to calculate the total cost of ending inventory:
August 2= 17*15= 255
August 18= 19*13= 247
August 29= (19*13 + 15*15)= (472)
August 31= 22*18= 396
Total ending inventory= $426
Now, the weighted average cost per unit of ending inventory:
Ending inventory in units= 24
Weighted-average ending inventory cost= (426/24)
Weighted-average ending inventory cost= $17.75
Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2016 to $10.75 million in 2017. Its assets totaled $4 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 75%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
Answer:
the additional funds needed is $667,500
Explanation:
The computation of the additional funds by using AFN is shown below:
AFN is
= Increase in assets - increase in liabilities - addition to retained earnings
= ($4,000,000×25%) - ($900,000 × 25%) - 10,750,000 × .04( 1 - 0.75)
= $1,000,000 - $225,000 - $107,500
= $667,500
hence, the additional funds needed is $667,500
We simply applied the above formula so that the correct value could come
And, the same is to be considered
You are in the 32% federal tax bracket. You are offered a taxable bond with a yield of 8.0% and a municipal (muni) bond with a yield of 5.8%. What is the breakeven federal tax rate where you are indifferent with regard to purchasing the taxable bond or the municipal bond? Should you buy the taxable bond? A) 27.50% breakeven tax bracket; No, you should buy the muni bond B) 27.50% breakeven tax bracket; Yes, you should buy the taxable bond C) 29.80% breakeven tax bracket; No, you should buy the muni bond D) 29.80% breakeven tax bracket; Yes, you should buy the taxable bond E) 37.93% breakeven tax bracket; No, you should buy the muni bond F) 37.93% breakeven tax bracket; Yes, you should buy the taxable bond G) None of the above
Answer: A. 27.50% breakeven tax bracket; No, you should buy the muni bond
Explanation:
The breakeven federal tax rate where one is indifferent with regard to purchasing the taxable bond or the municipal bond will be calculated as:
= 1 - municipal bond yield/taxable bond yield
= 1 - (5.8% / 8%)
= 1 - (0.058 / 0.08)
= 1 - 0.725
= 0.275
=27.50%
Therefore, the answer will be A) 27.50% breakeven tax bracket; No, you should buy the municipal bond.
If $30,000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually, what will be the balance of the account at the end of 10 years
Answer:
the balance of the account at the end of 10 years is $377,336.78
Explanation:
The computation of the balance of the account at the end of 10 years is shown below;
Future value = PMT × [((1 + rate of interest)^time period - 1) ÷ rate of interest]
= $30,000 × [((1 + 0.05)^10 -1) ÷ 0.05]
= $30,000 [((1 + 0.62889 - 1) ÷ 0.05
= $30,000 × 12.5779
= $377,336.78
Hence, the balance of the account at the end of 10 years is $377,336.78
Henri earned a salary of $50,000 in 2001 and $70,000 in 2006. The consumer price index was 177 in 2001 and 265.5 in 2006. Henri's 2006 salary in 2001 dollars is:_______.a. $105,000.00. b. $46,666.67. c. $35,000.00. d. $61,950.00
Answer: $46666.67
Explanation:
From the question, we are informed that Henri earned a salary of $50,000 in 2001 and $70,000 in 2006 and that the consumer price index was 177 in 2001 and 265.5 in 2006.
For us to calculate Henri's 2006 salary in 2001 dollars, we have to multiply Henri's 2001 real salary by the price in 2001. This will be:
= (70000/265.5) × 177
= $46666.67
A tax structured so that people with the same income pay the same percentage of their income in taxes is called a (an)____________. a. flat tax. b. regressive tax. c. progressive tax. d. excise tax.
Answer:
c. progressive tax
Explanation:
Progressive tax can be regarded as one of the tax structure whereby the tax payer that receive higher incomes in the state pay a higher share of taxes from the income they made, which is different from those that receive Lower income. It is a tax system whereby when there is increase in tax rate then the taxable amount increases too. It should be noted that the tax structured where people with the same income pay the same percentage of their income in taxes is reffered to as progressive tax. wealth/property tax is one of the example of progressive tax.
Answer:
c. progressive tax
Jackson Company's payment policy is to pay 40 percent of its accounts payable in the quarter urchases are made and 60 percent in the following quarter. Assume Jackson's credit purchases totaled $400,000 in quarter 1, $420,000 in quarter 2, $530,000 in quarter 3 and $580,000 in quarter 4. What will Jackson's cash payments be for quarter 3? A. $482,500 B. $560,000 C. $530,000 D. $464,000 E. None of the above.
Answer: D. $464,000
Explanation:
To calculate Jackson's cash payments be for quarter 3 goes thus:
60% of Quarter 2 will be calculated as:
= 60% × $420,000
= 0.6 × $420,000
= $252,000
40% of Quarter 3 will be calculated as:
= 40% of $530,000
= 0.4 × $530,000
= $212,000
We then add the values gotten together. This will be:
= $252,000 + $212,000
= $464,000
Therefore, the correct option is D.
Syzygy Company is a perfectly competitive firm. The market price of its output is $5. At its current level of output, the firm's average total cost is $5 per unit, its average variable cost is $4 per unit, and its marginal cost is $5 per unit. Based on this information, what can we say?a) Syzygy Company is earning zero economic profit, which is good enough to stay in business.b) Syzygy Company is not maximizing profit; it can increase profit by increasing output.c) Syzygy Company is not maximizing profit; it can increase profit by decreasing output.d) Syzygy Company is suffering a loss, but it should stay in business in the short run.e) Syzygy Company should go out of business in the short run.
Answer:
a) Syzygy Company is earning zero economic profit, which is good enough to stay in business.
Explanation:
market price = marginal revenue = $5 per unit
marginal cost per unit = $5
A perfectly competitive firm will maximize its accounting profits when MR = MC, in this case $5 (MR) = $5 (MC). This also means that the company at this sales and cost level is earning $0 economic profit. In the long run, firms in a a competitive market will always earn $0 economic profit.
the BE in units for CompuTech in 2021?
Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during
the year?
Question Completion:
Assuming the following: (i) the sales price for each CompuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is $45,000.
Q1: What is the BE in units for CompuTech in 2021?
Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year?
Answer:
CompuTech
Answer 1: The BE (Break-even Point) in units for CompuTech in 2021 is:
1,800 units.
Answer 2: If the variable cost of materials rose by 10%, the BE will increase to:
2,000 units.
Explanation:
a) Data and Calculations:
Selling price per unit = $50
Direct material cost per unit = $25
Contribution per unit = $25
Fixed Cost = $45,000
Break-even point = Fixed Cost/Contribution per unit
= $45,000/$25
= 1,800 units
b) BE if the variable cost of materials rose by 10% during the year:
Selling price per unit = $50
Direct material cost per unit =$27.50 ($25 * 1.1)
Contribution per unit = $22.50
Fixed Cost = $45,000
Break-even point = Fixed Cost/Contribution per unit
= $45,000/$22.50
= 2,000 units
c) The break-even point in units represents the quantity at which the costs of production equal the revenues for the goods. It is the point where no profit is made, but all the costs, including fixed costs, are covered by the revenues.