Below are the information of Ameena Enterprise. Ameena is planning to sell giant curry puff named "Yummy Curry Puff" The selling price for her curry puff is RM 3.00. The followings are cost data related to
Cost for one unit (RM)
Direct material 0.90 Direct labor 0.30 Factory overhead: variable 0.30
The fixed cost for the product is RM 260 and the normal production is 500 curry puffs.
Required:
A. Calculate the break-even point (in units and in value).
B. Determine the margin of safety (in percentage).
C. How many curry puffs needs to be produced if Ameena wanted to obtained RM 100 profit.
D. Calculate the profit if Ameena planned to increase the fixed cost from RM 260 to RM 300 and to reduce 10% of direct material and direct labour.
E. Calculate the profit if Ameena planned to increase the production to 550 curry puffs by maintaining the same fixed cost and to reduce the factory overhead cost to RM0.25 cents

Answers

Answer 1

A. Break-even point: To calculate the break-even point in units, we can use the formula:  Break-even point (in units) = Fixed cost / Contribution margin per unit

The contribution margin per unit is calculated as follows:

Contribution margin per unit = Selling price per unit - Variable cost per unit

Given the information:

Fixed cost = RM 260

Selling price per unit = RM 3.00

Variable cost per unit = Direct material + Direct labor + Factory overhead (variable)

Variable cost per unit = 0.90 + 0.30 + 0.30 = RM 1.50

Contribution margin per unit = RM 3.00 - RM 1.50 = RM 1.50

Break-even point (in units) = RM 260 / RM 1.50 = 173.33 units

To calculate the break-even point in value, we can multiply the break-even point in units by the selling price per unit:

Break-even point (in value) = Break-even point (in units) * Selling price per unit

Break-even point (in value) = 173.33 * RM 3.00 = RM 520

Therefore, the break-even point is 173.33 units (rounded up to 174 units) and RM 520 in value.

B. Margin of safety: To calculate the margin of safety percentage, we can use the formula:

Margin of safety percentage = (Actual sales - Break-even sales) / Actual sales * 100

Given the information:

Actual sales = Normal production = 500 units

Break-even sales = Break-even point (in units) = 174 units

Margin of safety percentage = (500 - 174) / 500 * 100 = 65.20%

C. Number of curry puffs to obtain RM 100 profit: To calculate the number of curry puffs needed to obtain RM 100 profit, we need to consider the contribution margin per unit:

Profit = Number of units * Contribution margin per unit

Given the information:

Profit = RM 100

Contribution margin per unit = RM 1.50

Number of curry puffs = RM 100 / RM 1.50 = 66.67 units (rounded up to 67 units)

D. Profit with increased fixed cost and reduced direct material and direct labor:

To calculate the profit with the changed parameters, we need to adjust the fixed cost and variable cost per unit:

Adjusted fixed cost = RM 300

Adjusted variable cost per unit = Reduced direct material + Reduced direct labor + Factory overhead (variable)

Reduced direct material = 0.90 - (0.90 * 10%) = 0.81

Reduced direct labor = 0.30 - (0.30 * 10%) = 0.27

Adjusted variable cost per unit = 0.81 + 0.27 + 0.30 = RM 1.38

Profit = Number of units * (Selling price per unit - Adjusted variable cost per unit) - Adjusted fixed cost

Using the previous calculated number of curry puffs (500 units), we can substitute the values into the equation to find the profit.

Profit = 500 * (3.00 - 1.38) - 300 = RM 810

E. Profit with increased production and reduced factory overhead cost:

To calculate the profit with the changed parameters, we need to adjust the production and factory overhead cost:

Increased production = 550 curry puffs

Reduced factory overhead cost per unit = RM 0.25

Profit = Number of units * (Selling price per unit -

Variable cost per unit) - Fixed cost

Variable cost per unit = Direct material + Direct labor + Reduced factory overhead cost per unit

Variable cost per unit = 0.90 + 0.30 + 0.25 = RM 1.45

Profit = 550 * (3.00 - 1.45) - 260 = RM 940

Therefore, the profit in scenario E would be RM 940.

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Related Questions

The balance in the Unrealized Gain or Loss—Equity account
will
appear in the stockholders' equity section of the balance
sheet.
appear on the income statement under Other Expenses and
Losses.
appear

Answers

The balance in the Unrealized Gain or Loss—Equity account appears in the stockholders' equity section of the balance sheet and not on the income statement.

The balance in the Unrealized Gain or Loss—Equity account represents the accumulated gains or losses resulting from changes in the fair value of certain assets or liabilities that are not yet realized through actual sales or settlements. This account is primarily associated with investments in securities, such as stocks or bonds, and derivative instruments.

On the balance sheet, the Unrealized Gain or Loss—Equity account will typically appear within the stockholders' Equity section. Stockholders' equity represents the ownership interest in a company and includes various components such as retained earnings, contributed capital, and accumulated other comprehensive income, which includes unrealized gains or losses.

It is important to note that unrealized gains or losses are not recognized in the income statement unless the assets or liabilities are sold or settled. Therefore, they do not appear as separate item under other expenses and losses on the income statement.

Instead, they are reflected in the balance sheet to provide a comprehensive view of the company's financial position. The balance in the Unrealized Gain or Loss—Equity account may fluctuate over time as the fair values of the underlying assets or liabilities change.

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The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Product Cost Replacement Cost Selling Price $ 55 $ 50 $ 75 95 85 115 55 70 95 115 85- 35 43 145 45 Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? (Do not round intermediate calculations. Round final answers to 2 decimal places.) Product Cost Replacement cost NRV NRV - NP Market Per Unit Inventory Value A $ 50 85 70 85 43 AACDE B ABC D E in in in i in 55 $ 95 55 115 35

Answers

The inventory value of Royal Decking products is calculated by using the Lower of Cost or Market (LCM) rule to units of ending inventory. The market value of the inventory is the minimum of replacement cost or net realizable value. The normal profit is 30% of selling price.

The selling costs consist of sales commission equal to 10% of selling price and shipping costs equal to 5% of cost.The following table shows the calculation for the unit value of each product for Royal Decking:ProductCostReplacement costNRVNRV-NPMarket per UnitInventory ValueABC55$95$55$115$35145$43D$85$35$85$100$3570$50E$115$43$105$62$4375$43Thus, Royal Decking should use the following unit value for each product when applying the Lower of Cost or Market (LCM) rule to units of ending inventory: ProductA B C D EUnit Value$145 $55 $70 $35 $43

Therefore, the unit value of Royal Decking for each product when applying the Lower of Cost or Market (LCM) rule to units of ending inventory are $145 for product A, $55 for product B, $70 for product C, $35 for product D, and $43 for product E.

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a realized gain on the sale or exchange of a personal use asset is recognized, but a realized loss on the sale, exchange, or condemnation of a personal use asset is not recognized.
true or false

Answers

The statement '' Realized gains on the sale or exchange of assets for personal use are recognized, but realized losses on the sale, exchange or realization of assets for personal use are not recognized.'' is false because this gain or loss is generally recognized and may have tax implications depending on certain circumstances.

Realized gains and losses on the sale or exchange of assets for personal use are recognized for tax purposes. When an asset for personal use, such as a car or home, is sold or exchanged, the difference between the amount received at the sale and the asset's adjusted basis is considered a realized gain or loss.

It is important to note that the tax treatment of realized gains or losses on assets held for personal use may vary depending on factors such as holding period and applicable tax laws. We recommend that you consult your tax advisor to understand the specific tax implications in your country.

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Which of the following was a consequence of Presidential Reconstruction?
A. Former slaves were granted full rights of citizenship in the Constitution of 1866.
B. The Texas Legislature was dominated by a faction known as the "Radical Republicans" who were able to create a legislative agenda that would set the framework for the next 100 years of policy in the state.
C. Since many of the people writing the Constitution of 1866 were former secessionists, this document still reflected many of the same values of the Constitution of 1861, such as denying freed slaves the right to vote or the ability to hold public office.
D. Former Confederates were disenfranchised and prevented from voting for a specified period of time.

Answers

A consequence of Presidential Reconstruction was D) Former Confederates were disenfranchised and prevented from voting for a specified period of time

Presidential Reconstruction - Presidential Reconstruction refers to a period of U.S. history after the Civil War in which the federal government attempted to reunify the country under President Abraham Lincoln and his successor, Andrew Johnson.

Johnson issued pardons to most former Confederates and, in an effort to undermine the Republican Party's power, vetoed civil rights legislation aimed at assisting formerly enslaved people and vetoed the Freedmen's Bureau, which had been established to aid freed slaves.

As a result of Johnson's leniency toward white Southerners, Southern state governments began enacting "black codes," which restricted the rights and freedoms of African Americans.

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The Record-a-Song Company has contracted with a rising star to record eight songs. The sizes in MB of the different songs are 8, 10, 8, 7, 9, 6, 7, and 12, respectively. Record-a- Song uses two CDs for the recording. Each CD has a capacity of 40 MB. The company would like to distribute the songs between the two CDs such that the used space on each CDs is about the same. Formulate the problem as an ILP, and find the optimum solution.

Answers

The ILP formulation helps determine the optimal distribution of songs between two CDs such that the used space on each CD is approximately the same. By solving the ILP, we can obtain the specific arrangement of songs on each CD that minimizes the difference in used space.

To formulate the problem as an Integer Linear Programming (ILP) problem, we can define the decision variables and constraints as follows:

Decision Variables:

Let X[i, j] be a binary variable, where X[i, j] = 1 if song i is placed on CD j, and X[i, j] = 0 otherwise.

Here, i represents the song index (1 to 8), and j represents the CD index (1 or 2).

Objective Function:

We want to minimize the difference between the used space on each CD. Thus, the objective function can be formulated as:

Minimize: |(Σ (size[i] * X[i, 1])) - (Σ (size[i] * X[i, 2]))|

Constraints:

Each song must be placed on exactly one CD:

Σ X[i, 1] = 1 for all i (each song is placed on CD 1)

Σ X[i, 2] = 1 for all i (each song is placed on CD 2)

The total size of songs on each CD must not exceed the CD's capacity:

Σ (size[i] * X[i, 1]) ≤ 40 (total size on CD 1)

Σ (size[i] * X[i, 2]) ≤ 40 (total size on CD 2)

Ensure the decision variables are binary:

X[i, j] ∈ {0, 1} for all i, j

Using this formulation, we can solve the ILP problem to find the optimum solution that minimizes the difference in used space between the two CDs while distributing the songs appropriately.

Note: To find the specific optimum solution, you would need to solve the ILP using an optimization solver or software that supports ILP solving. The solution would provide the values of the decision variables (X[i, j]) indicating which songs are placed on each CD.

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A married taxpayer filed a joint return with her husband. The couple did not file an extension and paid the tax owed for the year by the required due date. Two years later, the wife filed an amended return (Form 1040X) and claimed married filing separately filing status. By changing her filing status, the wife sought a refund for an overpayment (she claims that she personally paid more on the joint return than she owed on a separate return).

Filing status information is covered in Chapter 4. Additional research using Checkpoint will be needed to specifically answer question 1. Please be sure to cite your primary source(s) (not Checkpoint. This is a database tool of find the primary source(s).

Required:

Perform tax research using tax laws (cite primary sources) to address the following issues. Explain your answers and the authority used on each (1-5):

1. In the example above, is the wife allowed to change her filing status for the tax year and receive a refund with her amended return? Research Treasury Reg. §1.6013-1(a) incorporate the following in your analysis.

Discuss why legally married taxpayers may want to file as married filing separately (identify various reasons).
Discuss the concept of joint and several liability and the taxpayer responsibility of any federal income tax liability.
Discuss and differentiate between an abandoned spouse and injured spouse.

Answers

Yes, it is permissible for the wife to change her filing status for the tax year and receive a refund by filing an amended return. According to Treasury Regulation §1.6013-1(a), married taxpayers have the option to change their filing status, including filing as married filing separately, depending on their specific circumstances.

There are several reasons why a married taxpayer may choose to file separately, such as higher joint income pushing them into a higher tax bracket, substantial individual deductions or losses, or if one spouse has low income and itemized deductions subject to limitations.

It's important to understand the concept of joint and several liability in the context of filing jointly.

When a married couple files a joint tax return, both spouses are individually and jointly responsible for the entire tax liability, regardless of their respective income or responsibility for errors on the return.

This means that the IRS can collect the full amount owed from either spouse. However, an abandoned spouse and an injured spouse are distinct in their circumstances.

An abandoned spouse refers to a married individual who has lived separately from their spouse for the last six months of the year and has shouldered more than half the cost of maintaining a household for the entire year for a dependent child or stepchild.

On the other hand, an injured spouse is a spouse who has overpaid taxes or has had a portion of their joint refund applied to the other spouse's outstanding obligations, such as child support, spousal support, federal debts, or state debts.

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a small mid-western mining company's cfo found an unintentional, but meaningful compliance violation in the company's 401(k) plan. which of the options below is the best course of action to take?

Answers

The best course of action would be for the CFO to report the compliance violation to the appropriate regulatory authorities and seek guidance from legal and compliance professionals to rectify the issue promptly and ensure future compliance. This ensures transparency, demonstrates good faith, and mitigates potential legal and financial risks for the company.

By reporting the compliance violation to regulatory authorities, the company demonstrates a commitment to transparency and compliance. It also helps to establish good faith, which may be taken into account in potential penalties or settlements. Seeking guidance from legal and compliance professionals ensures that the issue is addressed properly and efficiently. Rectifying the violation promptly minimizes potential legal and financial risks for the company, such as fines, penalties, and reputational damage. Overall, taking these steps helps maintain the company's integrity and protects the interests of the employees and stakeholders involved in the 401(k) plan.

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A small open economy has the following parameters: C 250+0.25 (Y-1), 1=50₂ 30r Real money supply Y-400r, Government spending is 500, money supply is 2520, price is 6, and the government is with equal budget. a) Find the equilibrium interest rate and level of income. (Sp) b) Draw IS and LM curves. (Sp) level of income? What is the tax multiplier? (Assume the money supply is held constant) c) If government increases taxes by 70 percent, what are the new equilibrium interest rate and (10p) Answer:

Answers

In the small open economy, the equilibrium interest rate is around -3.47, and the level of income is approximately 1133.

To find the equilibrium interest rate (r) and level of income (Y) in a small open economy, we can use the given parameters and the goods market equilibrium condition, which states that total spending (Y) must equal total output (Y).

Given the consumption function C = 250 + 0.25(Y-1), investment (I) = 50, government spending (G) = 500, and real money supply (M/P) = Y - 400r, where M is the money supply and P is the price level, we can set up the equation for the goods market equilibrium as follows:

Y = C + I + G

Substituting the given functions, we have:

Y = (250 + 0.25(Y-1)) + 50 + 500

Simplifying the equation, we get:

Y = 800 + 0.25Y - 0.25 + 50

Combining like terms, we have:

0.75Y = 849.75

Dividing both sides by 0.75, we find:

Y ≈ 1133

Next, to find the equilibrium interest rate (r), we can use the money market equilibrium condition, which states that the real money supply (M/P) must equal the demand for real money. In this case, the real money supply is given as 2520 and the price level (P) is 6. Substituting these values into the equation, we have:

2520 = Y - 400r

Plugging in the value of Y we found earlier, we get:

2520 = 1133 - 400r

Simplifying the equation, we find:

400r = 1133 - 2520

Combining like terms, we have:

400r ≈ -1387

Dividing both sides by 400, we find:

r ≈ -3.47

Therefore, the equilibrium interest rate is approximately -3.47 and the level of income is approximately 1133 in this small open economy.

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one perspective on expertise is that _____, in addition to motivation, is required to become an expert.

Answers

One perspective on expertise is that deliberate practice, in addition to motivation, is required to become an expert.

Deliberate practice refers to a specific type of focused and structured practice aimed at improving performance. It involves setting specific goals, receiving feedback, and making adjustments based on that feedback.

While motivation is essential in driving individuals to pursue expertise, deliberate practice is considered a critical component in the development of true expertise.

Deliberate practice goes beyond simple repetition and involves engaging in challenging tasks that push the individual to continuously improve their skills.

It enables people to hone their abilities, learn from errors, and achieve gradual advancements over time. People can acquire the skills, knowledge, and problem-solving techniques that set professionals in their particular industries apart through deliberate practise.

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FERRO INc, carries 12,000 items. During any particular week, FERRO INc'S customers (mostly retailers) order about 4,100 different CASES from the facility. On average, FERRO INc only satisfies all demand for 2,000 items. The in-stock probability is ___________ %.

Answers

The in-stock probability is 48.78 %.

In the given case, the in-stock probability is to be calculated. In this regard, it is given that FERRO INc carries 12,000 items. During any particular week, FERRO INc'S customers (mostly retailers) order about 4,100 different CASES from the facility.

On average, FERRO INc only satisfies all demand for 2,000 items.

Therefore, the in-stock probability can be calculated as follows:

In-stock probability = (Demand satisfied/Total Demand) × 100%

Where,

Demand satisfied = 2,000

Total Demand = 4,100

Calculate the in-stock probability

In-stock probability = (2,000/4,100) × 100%

= 48.78%

Therefore, the in-stock probability is 48.78%.

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Using the following information taken from the first week in November operating and financial reports of Hudson's steakhouse, what i the operation's weighted contribution margin for the six types of steaks it sells?
Menu Item Contribution Margin Number Sold
New York Strip $11.50 85
Cowboy Ribeye $9.50 95
Filet $11.00 120
Petite filet $8.50 65
Sirloin $13.50 360
Prime Rib $10.00 410
Total 1,135

a. $11.20 b. $12.20 c. $12.70 d. $11.70

Answers

The weighted contribution margin for the six types of steaks sold at Hudson's Steakhouse is $11.20.

To compute the weighted commitment edge for the six kinds of steaks sold at Hudson's Steakhouse, we really want to duplicate the commitment edge of every steak by the number sold, then summarize the outcomes and separation by the absolute number of steaks sold.

How about we ascertain the weighted commitment edge bit by bit:

1. Increase the commitment edge by the number sold for every steak:

New York Strip: $11.50 * 85 = $977.50

Cowpoke Ribeye: $9.50 * 95 = $902.50

Filet: $11.00 * 120 = $1,320.00

Unimposing Filet: $8.50 * 65 = $552.50

Sirloin: $13.50 * 360 = $4,860.00

Prime Rib: $10.00 * 410 = $4,100.00

2. Summarize the outcomes: $977.50 + $902.50 + $1,320.00 + $552.50 + $4,860.00 + $4,100.00 = $12,712.50

3. Partition the aggregate by the absolute number of steaks sold: $12,712.50/1,135 = $11.20

Consequently, the weighted commitment edge for the six kinds of steaks sold at Hudson's Steakhouse is $11.20. The right response is (a) $11.20.

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DEPRECIATION Show in tabular form (depreciation schedule) the computation for the depreciation expenses, accumulated depreciation, and book value per year for a machine worth P1,000,000 with a salvage value of 10% of the original cost and a depreciable life of 5 years using: 1. straight line method 2. sum of year's digits method 3. declining balance method 4. double declining balance method

Answers

1. Straight Line Method:

Year 1: Depreciation Expense = P180,000, Accumulated Depreciation = P180,000, Book Value = P820,000

2. Sum of Year's Digits Method:

Year 1: Depreciation Expense = P300,000, Accumulated Depreciation = P300,000, Book Value = P700,000

3. Declining Balance Method:

Year 1: Depreciation Expense = P400,000, Accumulated Depreciation = P400,000, Book Value = P600,000

4. Double Declining Balance Method:

Year 1: Depreciation Expense = P400,000, Accumulated Depreciation = P400,000, Book Value = P600,000

How to compute depreciation?

Sure! Here's the depreciation schedule for the machine worth P1,000,000 with a salvage value of 10% of the original cost and a depreciable life of 5 years using four different methods:

1. Straight-Line Method:

   Year 1: Depreciation Expense = P180,000, Accumulated Depreciation =                 P180,000, Book Value = P820,000

  Year 2: Depreciation Expense = P180,000, Accumulated Depreciation = P360,000, Book Value = P640,000

  Year 3: Depreciation Expense = P180,000, Accumulated Depreciation = P540,000, Book Value = P460,000

  Year 4: Depreciation Expense = P180,000, Accumulated Depreciation = P720,000, Book Value = P280,000

  Year 5: Depreciation Expense = P180,000, Accumulated Depreciation = P900,000, Book Value = P100,000

2. Sum of Year's Digits Method:

  Year 1: Depreciation Expense = P300,000, Accumulated Depreciation = P300,000, Book Value = P700,000

 Year 2: Depreciation Expense = P250,000, Accumulated Depreciation = P550,000, Book Value = P450,000

 Year 3: Depreciation Expense = P200,000, Accumulated Depreciation = P750,000, Book Value = P250,000

 Year 4: Depreciation Expense = P150,000, Accumulated Depreciation = P900,000, Book Value = P100,000

 Year 5: Depreciation Expense = P100,000, Accumulated Depreciation = P1,000,000, Book Value = P0

3. Declining Balance Method:

   Using 200% Declining Balance Rate:

  Year 1: Depreciation Expense = P400,000, Accumulated Depreciation = P400,000, Book Value = P600,000

 Year 2: Depreciation Expense = P240,000, Accumulated Depreciation = P640,000, Book Value = P360,000

 Year 3: Depreciation Expense = P144,000, Accumulated Depreciation = P784,000, Book Value = P216,000

 Year 4: Depreciation Expense = P86,400, Accumulated Depreciation = P870,400, Book Value = P129,600

 Year 5: Depreciation Expense = P51,840, Accumulated Depreciation = P922,240, Book Value = P77,760

4. Double Declining Balance Method:

  Year 1: Depreciation Expense = P400,000, Accumulated Depreciation = P400,000, Book Value = P600,000

 Year 2: Depreciation Expense = P240,000, Accumulated Depreciation = P640,000, Book Value = P360,000

 Year 3: Depreciation Expense = P144,000, Accumulated Depreciation = P784,000, Book Value = P216,000

  Year 4: Depreciation Expense = P86,400, Accumulated Depreciation = P870,400, Book Value = P129,600

  Year 5: Depreciation Expense = P51,840, Accumulated Depreciation = P922,240, Book Value = P77,760

Please note that the figures provided above are based on the assumptions given and the calculations for each method.

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uestion 14 4 points Save Answ On Dec. 31, 2020, ABC Corp issued 4-year, 7% bonds with $3,000,000 as par value. ABC Corp. received $3,360,000 in cash. The bond interest is paid semiannually on June 30

Answers

Cash is credited for the total interest payment, which is $120,000

To record the bond issuance by ABC Corp on December 31, 2020, and subsequent

1. interest payment on June 30, 2021, we need to consider the following:

Bond Issuance on December 31, 2020:

Date: December 31, 2020

Account Debit Credit

Cash $3,360,000

Bonds Payable $3,000,000

Premium on Bonds Payable $360,000

Cash is debited for the amount received from the bond issuance, which is $3,360,000.

Bonds Payable is credited for the par value of the bonds issued, which is $3,000,000.

Premium on Bonds Payable is credited for the difference between the cash received and the par value of the bonds. In this case, it is $3,360,000 - $3,000,000 = $360,000. This represents the premium received on the bonds.

2. Interest Payment on June 30, 2021:

Date: June 30, 2021

Account Debit Credit

Interest Expense $105,000

Premium on Bonds Payable $15,000

Cash $120,000

Interest Expense is debited for the semiannual interest payment, which is calculated as 7% of the par value ($3,000,000) divided by 2 (since interest is paid semiannually). Therefore, the interest payment is ($3,000,000 * 7% / 2) = $105,000.

However, since the interest payment is $105,000, the remaining amount ($105,000 - $45,000) = $60,000 is considered as interest expense.

Cash is credited for the total interest payment, which is $120,000 ($105,000 interest expense + $15,000 premium amortization).

Please note that these journal entries assume the use of the effective interest method for amortizing the premium on bonds payable. Additionally, subsequent interest payments will follow a similar pattern until the maturity of the bonds in 4 years.

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which one is the right answer?
Padma purchased a zero coupon bond with a par value of $5,000 and 8 years remaining before it reached maturity. The current market interest rate is 6%. What was the amount that Padma paid for the bond

Answers

The amount that Padma paid for the bond was approximately $3,511.68.

To calculate the amount Padma paid for the zero coupon bond, we can use the present value formula. The formula for the present value of a zero coupon bond is:

Present Value = Face Value / (1 + Interest Rate)ⁿ

Where:

Face Value = $5,000 (par value of the bond)

Interest Rate = 6% (expressed as a decimal, 0.06)

n = 8 years (remaining time to maturity)

Substituting these values into the formula:

Present Value = $5,000 / (1 + 0.06)⁸

Calculating the present value:

Present Value = $5,000 / (1.06)⁸

Present Value ≈ $3,511.68

Therefore, the amount that Padma paid for the bond was approximately $3,511.68.

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The Historical Cost Concept:

A.
Requires that transactions be measured at their original cost to the firm

B.
Permits property, plant, and equipment to be restated at current market value

C.
Allows unrealized capital gains to be recognized on fixed assets before they are sold

D.
Seldom applies to nonmonetary assets

Answers

The Historical Cost Concept: Requires that transactions be measured at their original cost to the firm.What is the historical cost concept?Historical cost concept is a principle of accounting that requires the recording of assets in financial statements at their original or acquisition cost. This means that once an asset is acquired, its cost is set and recorded, and it will not be affected by any changes in the asset's fair market value that occur after the acquisition.The following are the options for the given question:The Historical Cost Concept:A. Requires that transactions be measured at their original cost to the firm (Correct)B. Permits property, plant, and equipment to be restated at current market valueC. Allows unrealized capital gains to be recognized on fixed assets before they are soldD. Seldom applies to nonmonetary assetsTherefore, the Historical Cost Concept requires that transactions be measured at their original cost to the firm.

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1.Which of the following sentences is correct?
a.Our manager will meet with Vice President Alvarez.
b.Our manager will meet with vice President Alvarez.
c.Our manager will meet with vice president Alvarez.

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The correct sentence is: "Our manager will meet with Vice President Alvarez."

In this sentence, the title "Vice President" is capitalized because it is a specific title and part of the individual's name. In formal writing, titles are typically capitalized when they directly precede a person's name. Therefore, "Vice President" should be capitalized as it is used as part of Vice President Alvarez's name.

Option a is the correct choice because it adheres to the standard rules of capitalization. Option b incorrectly capitalizes the common noun "vice" and option c incorrectly capitalizes the common noun "president."

It is important to use proper capitalization to maintain clarity and adhere to grammatical conventions. Correct capitalization helps readers identify names, titles, and specific nouns, ensuring accurate communication.

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Each of the following is a typical component of new product development surveys, except ________.

a. brand read / comparison
b. concept purchase intent
c. concept price read
d. satisfaction

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Each of the following is a typical component of new product development building, designing, and introducing a new product or service into the market. The whole process includes the idea development, prototype development, market testing, product launch, and so on.

What are the typical components of new product development surveys?New product development surveys are important in terms of understanding customer needs, preferences, and feedback. These surveys help in creating new products that meet customer expectations and increase the chances of success in the market. Here are some typical components of new product development surveys:

Concept purchase intent: This component helps in understanding the likelihood of customers buying the price read: This component helps in determining the right price for the This component helps in understanding the perception of customers about the brand and understanding the satisfaction level of customers with the product and identifying areas of , based on the above explanation, the correct answer is option D. Satisfaction.

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Discuss how a new brand manufacturer would go about defining their market segments and then begin to target them. (AACSB: Communication; Reflective Thinking)

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When a new brand manufacturer is starting up, one of the first and most important things they need to do is to define their market segments. A market segment is a group of consumers with shared needs or characteristics, and it is important for a new brand manufacturer to identify these segments in order to create targeted marketing strategies that will reach their intended audience.

There are several steps that a new brand manufacturer can take to define their market segments. The first step is to conduct market research to identify the needs and preferences of different consumer groups. This research can be done through surveys, focus groups, or other forms of market research. Next, the new brand manufacturer needs to analyze the data they have collected to identify patterns and trends in consumer behavior.

This will help them to identify the different segments of the market that they want to target, and to develop marketing strategies that will be most effective for each segment. The next step is to create a marketing plan that targets each segment of the market. This plan should include a clear description of each segment, as well as specific marketing strategies that will be used to reach each segment. For example, if the new brand manufacturer is targeting a younger demographic, they may want to focus on social media marketing and influencer partnerships, while if they are targeting an older demographic, they may want to focus on print advertisements and traditional media.

Finally, the new brand manufacturer needs to execute their marketing plan and monitor the results to determine which strategies are working best for each segment. By continuously refining their marketing strategies based on consumer feedback and market trends, a new brand manufacturer can effectively target their market segments and build a strong customer base.

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How does the FTC (Federal Trade Commission) determine if an add is deceptive?

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The Federal Trade Commission (FTC) determines whether an ad is deceptive or not by evaluating the ad from the viewpoint of a regular, sensible customer. The FTC's three-part test establishes if the ad has potentially misleading or fraudulent claims that can confuse or mislead consumers.

To be considered as fraudulent or misleading, the FTC does not require an advertisement to contain any obvious statements that are false or misleading. Deception can take several different forms, including the omission of material facts, making claims that can be technically accurate but highly deceptive, or conveying the impression that a product will work in a particular way when the manufacturer knows or should have known that it will not.Besides the FTC's legal definition of fraud, an ad is not necessarily deceptive just because it is exaggerated or makes a claim that is tough to validate. Ads that involve the use of puffery, or hyperbole, are not illegal, provided they are not misleading in any way.

In conclusion, the Federal Trade Commission (FTC) determines whether an advertisement is deceptive or not by evaluating the ad from the perspective of a regular, sensible customer. The FTC's three-part test establishes if the ad has potentially misleading or fraudulent claims that can confuse or mislead consumers.

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The ABC Company manufactures and sells 95" Television sets and uses standard costing. Budgeted level of production is 1,000 units per month. The actual data from January,February and March is as follows: January February March Beginning Inventory Production Sales 300 800 800 300 1,250 1,500 1,000 700 Variable Costs Manufacturing cost per unit Operating(marketing) cost per unit 900$ 600$ 900$ 600 900 600 Fixed Costs Manufacturing Costs Perating(marketing)costs 400,000$ 400,000 140,000 5 140,000 400,000 140,000 Selling Price per unit 3,000 Prepare the statement of income for each of January,February and March as follows 1.Variable Costing 2.Absorption Costing

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To prepare the statement of income for each of January, February, and March using variable costing and absorption costing, we need to calculate the relevant costs and revenues for each month. Here's how you can calculate it:

January:

Variable Costing:

Sales revenue: 800 units * $3,000 = $2,400,000

Variable manufacturing cost: 800 units * $900 = $720,000

Variable operating (marketing) cost: 800 units * $600 = $480,000

Total variable costs: $720,000 + $480,000 = $1,200,000

Contribution margin: Sales revenue - Total variable costs = $2,400,000 - $1,200,000 = $1,200,000

Fixed manufacturing costs: $400,000

Fixed operating (marketing) costs: $140,000

Total fixed costs: $400,000 + $140,000 = $540,000

Operating income (loss): Contribution margin - Total fixed costs = $1,200,000 - $540,000 = $660,000

Absorption Costing:

Sales revenue: $2,400,000

Manufacturing cost per unit: $900

Cost of goods sold: 800 units * $900 = $720,000

Gross profit: Sales revenue - Cost of goods sold = $2,400,000 - $720,000 = $1,680,000

Operating (marketing) cost per unit: $600

Total operating (marketing) costs: 800 units * $600 = $480,000

Operating income (loss): Gross profit - Total operating (marketing) costs = $1,680,000 - $480,000 = $1,200,000

The statement of income for January using variable costing and absorption costing is as follows:

Variable Costing:

Sales revenue: $2,400,000

Variable costs: $1,200,000

Contribution margin: $1,200,000

Fixed costs: $540,000

Operating income: $660,000

Absorption Costing:

Sales revenue: $2,400,000

Cost of goods sold: $720,000

Gross profit: $1,680,000

Operating (marketing) costs: $480,000

Operating income: $1,200,000

You can follow the same steps to calculate the statement of income for February and March using both variable costing and absorption costing methodologies.

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A maize farmer in Oshikoto Region in Namibia has a production function as follows: Y=70+2x-0.02x² i. Find the level of x at which Y is maximum [3] [3] Calculate the APP, MPP and elasticity of production, when x = 30 Find the level of x maximizing net returns when Px = $1 and Py=$10,

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The optimal quantity of input is given as:MPPx × Py = PxMVPx0.8 × 10 = 1MVPx = 0.125 units of xTo maximize net returns, the farmer should apply 0.125 units of x.

A production function is used by a maize farmer in Oshikoto Region in Namibia that can be represented as follows: Y = 70 + 2x - 0.02x², where Y represents the yield per acre, and x is the quantity of fertilizer used per acre.i. To find the level of x at which Y is maximum:To find the optimal level of fertilizer application that will maximize the farmer's yield, the farmer must take the derivative of the production function and equate it to zero. This implies: Y = 70 + 2x - 0.02x²dY/dx = 2 - 0.04x = 0Solving for x, 0.04x = 2, x = 50.APP is the Average Physical Product. It can be calculated by dividing the total product by the total input (that is, APP = TP/TI). MPP is the Marginal Physical Product, which is the additional production that results from increasing one unit of input.

Elasticity of production measures the responsiveness of the quantity of output to changes in the quantity of inputs. ii. To calculate the APP, MPP and elasticity of production, when x = 30:APP = (70 + 2(30) - 0.02(30)²)/30 = 3.333MPP = 2 - 0.04(30) = 0.8Elasticity = MPP × (x/Y) = 0.8 × (30/100) = 0.24.iii. To find the level of x maximizing net returns when Px = $1 and Py = $10:The farmer can maximize their profits by using the marginal value product (MVP) rule, which states that the optimal level of input usage occurs where the MVP equals the price of the input. MVP equals the marginal physical product multiplied by the price of the output. For the given scenario, Px = $1 and Py = $10.The optimal quantity of input is given as:MPPx × Py = PxMVPx0.8 × 10 = 1MVPx = 0.125 units of xTo maximize net returns, the farmer should apply 0.125 units of x.

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Louis purchased $5,000 worth of stock three years ago and sold it today for $7,000. He received no dividends from this investment. Inflation averaged 4% during the three years he owned the stock. What was his annualized real rate of return on this investment?

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Answer:

9.33%

Explanation:

Calculation to determine his annualized real rate of return on this investment

Annualized real rate of return=[($7,000-$5,000/ ($5000*3) *100] -4%

Annualized real rate of return=13.33%-4%

Annualized real rate of return = 9.33%

Therefore his annualized real rate of return on this investment will be 9.33%

Determine the present value of an ordinary annuity of $2,000 per year for 20 years, assuming it earns 16 percent. Assume that the first cash flow from the annuity comes at the end of year 7 and the final payment at the end of year 26. That is, no payments are made on the annuity at the end of years 1 through 6. Instead, annual payments are made at the end of years 7 through 26. The present value of the annuity today is :________

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The present value of the annuity today is approximately $7,616.60, assuming an annual payment of $2,000 for 20 years at an interest rate of 16%, with the first payment occurring at the end of year 7 and the final payment at the end of year 26.

To determine the present value of the annuity, we need to calculate the present value of each cash flow and then sum them up.

Since the first cash flow occurs at the end of year 7 and the final payment is made at the end of year 26, we have a total of 20 periods.

Using the formula for the present value of an ordinary annuity, with an annual interest rate of 16% and a total of 20 periods, we can calculate the present value as follows:

PV = $2,000 * [(1 - (1 + 0.16)^(-20))/(0.16)] * (1/(1 + 0.16)^7)

Calculating this equation gives us:

PV ≈ $2,000 * 9.2925 * 0.4020

PV ≈ $7,616.60

Therefore, the present value of the annuity today is approximately $7,616.60, assuming an annual payment of $2,000 for 20 years at an interest rate of 16%, with the first payment occurring at the end of year 7 and the final payment at the end of year 26.

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You own 500 shares of Stock A at a price of $65 per share, 567 shares of Stock B at $71 per share, and 550 shares of Stock C at $34 per sharer. The betas for the stocks are 1.8, 1.3, and 0.6, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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When the betas for the stocks are 1.8, 1.3, and 0.6, respectively then the  Portfolio Beta is 1.22.

Given data:

You own 500 shares of Stock A at a price of $65 per share, 567 shares of Stock B at $71 per share, and 550 shares of Stock C at $34 per sharer.

The betas for the stocks are 1.8, 1.3, and 0.6, respectively.

Portfolio Beta:Portfolio Beta is the weighted average of betas of individual securities in a portfolio.

Here, the Beta of Stock A is 1.8, the Beta of Stock B is 1.3, and the Beta of Stock C is 0.6.

Therefore, the weighted average of the Beta of the portfolio can be calculated as:

Portfolio Beta = [(Number of shares of Stock A × Beta of Stock A) + (Number of shares of Stock B × Beta of Stock B) + (Number of shares of Stock C × Beta of Stock C)] / Total number of shares in the portfolio

Portfolio Beta = [(500 × 1.8) + (567 × 1.3) + (550 × 0.6)] / (500 + 567 + 550)

Portfolio Beta = (900 + 736.1 + 330) / 1617Portfolio Beta = 1966.1 / 1617

Portfolio Beta = 1.215

Approximately, the portfolio beta is equal to 1.22 (rounded to two decimal places).

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If annual demand is 48,000 units, orders are placed in quantities of 2,000 units at a time, and the cost to place an order is $80, what is the annual ordering cost? Select one: O A. $3,840,000. B. $4,160. C. $160,000. O D. $1,920. O E. $80.

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$1,920  is the annual ordering cost. The quantity of orders multiplied by the cost of each order equals an annual ordering cost.  The fees spent to make and process an order to a supplier are known as ordering costs.

The economic order quantity for an inventory item takes these expenses into account. Here are some examples of ordering costs: The price of creating a purchase request.  When selecting an investment choice, one tactic is to use the equivalent annual cost (EAC) technique.

The term "equivalent annual cost" describes the annual cost of ownership. It multiplies an asset's net present value by the annuity factor. Annual demand, holding costs, and order costs are the main components of a formula that determines the Economic Order Quantity (EOQ).

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A project’s initial investment is $1 million, and the expected annual cash inflow starting one year after the initial investment is $95,000 in perpetuity. The opportunity cost of capital with all-equity financing is 10%, and the project allows the firm to borrow at 7%. The marginal tax rate is 35%. a. What is the base case NPV of the project with all-equity financing? b. What is the present value of tax shields if $400,000 of fixed, perpetual debt is used? c. What is the project’s value if $400,000 of fixed, perpetual debt is used?

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a) the base case NPV of the project with all-equity financing will be -$50,000

b) the present value of tax shields if $400,000 of fixed, perpetual debt is used will be $98,000

c) the project's value if $400,000 of fixed, perpetual debt is used is $48,000.

a.The base case NPV of the project with all-equity financing is the amount of money generated by the project minus the initial investment in the project and is calculated using the following formula:

Base case NPV = Present value of cash inflows - Initial investment

PV of cash inflows = Annual cash inflow / Discount rate

Base case NPV = $95,000 / 0.10 - $1,000,000

Base case NPV = $950,000 - $1,000,000

Base case NPV = -$50,000

b. The present value of tax shields is the value of the future tax savings created by using debt to finance the project, and is calculated using the following formula:

Present value of tax shields = Tax shield per year / Discount rate

Tax shield per year = Interest expense per year x Marginal tax rate

Interest expense per year = Amount of debt x Interest rate

Present value of tax shields = ($400,000 x 0.07) x 0.35 / 0.10

Present value of tax shields = $98,000

c. The project's value if $400,000 of fixed, perpetual debt is used is calculated using the following formula:

Project value = Base case NPV + Present value of tax shields

Project value = -$50,000 + $98,000

Project value = $48,000

Therefore, the project's value if $400,000 of fixed, perpetual debt is used is $48,000.

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How do born globals differ from traditional multinational enterprises in their internationalization process and speed? Discuss your opinion and refer to appropriate theoretical perspectives.

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Born globals and traditional multinational enterprises differ in their internationalization process and speed. Born globals are young firms that involve in foreign market entry as soon as possible, while the traditional multinational enterprises are established companies that engage in internationalization gradually over time.

Born globals move quickly to establish a global presence in order to capitalize on new business opportunities. They also depend on technological innovation, speed, and agility. Born globals employ market-seeking strategies as they search for profitable business opportunities in foreign markets. They aim to establish themselves as leading players in a new market. The traditional multinational enterprises, on the other hand, employ resource-based strategies, in which they focus on resource acquisition and expansion of existing operations into foreign markets. They are not focused on rapid global expansion, but rather on gradual internationalization.Moreover, traditional multinational enterprises have a relatively strong resource base in terms of financial, organizational, and technological resources, which they can leverage to enter new markets gradually. As a result, their internationalization process is gradual, slow and steady.

In conclusion, born globals and traditional multinational enterprises differ in their internationalization processes and speed. Born globals enter foreign markets quickly and aim to establish themselves as major players in the market as soon as possible, while traditional multinational enterprises tend to focus on resource acquisition and expansion of existing operations into foreign markets over time. Employing the appropriate theoretical perspective, firms can successfully enter foreign markets and gain competitive advantage over other firms in the market. A better understanding of the differences between born globals and traditional multinational enterprises is beneficial in creating more effective internationalization strategies.

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Find the nominal exchange rate and calculate the real and effective (trade-weighted) exchange rate of Australia. Graph these exchange rates. Use monthly or at least quarterly data for the last five years and comment on it

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The nominal exchange rate of a currency is the price at which one currency can be exchanged for another. Real exchange rate is the value of a currency adjusted for inflation. The effective exchange rate is a measure of the value of a country's currency against a basket of foreign currencies.

To find the nominal exchange rate and calculate the real and effective exchange rate of Australia, quarterly data for the last five years can be used. This can be graphed to show the changes over time.  Nominal exchange rate of Australia:
The nominal exchange rate of Australia can be found by comparing the Australian dollar to the US dollar. As an example, if the exchange rate is 0.75 USD/AUD, it means that one US dollar can buy 0.75 Australian dollars.

Real exchange rate of Australia:  To calculate the real exchange rate of Australia, the nominal exchange rate must be adjusted for inflation. The formula for real exchange rate is:
Real exchange rate = Nominal exchange rate x (Domestic Price level/Foreign Price level)
Where the domestic price level is the average price of goods and services in Australia and the foreign price level is the average price of goods and services in other countries.

Effective exchange rate of Australia:  The effective exchange rate of Australia can be calculated by taking a weighted average of the exchange rate with other countries. This can be done using a trade-weighted index.

Graph of exchange rates:  The exchange rates can be graphed to show the changes over time. The nominal exchange rate, real exchange rate, and effective exchange rate can be plotted on the same graph for comparison.

Comments:  By comparing the nominal exchange rate, real exchange rate, and effective exchange rate, it can be seen that the Australian dollar has fluctuated over the past five years. Factors that can affect exchange rates include interest rates, inflation rates, economic growth, and political stability. An increase in interest rates, for example, can lead to an increase in the value of the Australian dollar. On the other hand, political instability can lead to a decrease in the value of the Australian dollar. Overall, it is important to consider multiple factors when analyzing exchange rates.

The present value of the cash flow is approximately $17,669.12.To calculate the present value of the cash flow, we need to discount each cash flow to its present value and then sum them up. The formula to calculate the present value of a future cash flow is:

PV = CF1 / (1 + r)^1 + CF2 / (1 + r)^2 + ... + CFn / (1 + r)^n

Where PV is the present value, CF1, CF2, ..., CFn are the cash flows in each period, r is the interest rate, and n is the number of periods.

In this case, the cash flow starts with $1,500 at the end of year 1 and increases by $500 per year thereafter. The interest rate is 8% compounded annually.

Let's calculate the present value:

PV = $1,500 / (1 + 0.08)^1 + $2,000 / (1 + 0.08)^2 + $2,500 / (1 + 0.08)^3 + ... + $16,000 / (1 + 0.08)^30

Using a financial calculator or spreadsheet, the present value of this cash flow would be $17,669.12 (rounded to the nearest cent).

Therefore, the present value of the cash flow is approximately $17,669.12.

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You made a gain of $225.75 b. Suppose you decide to use limit orders instead of market orders. On October 16, you put in a limit order to buy 525 shares of BRAK at $14.57 per share. On October 17, you put in a limit order to sell 525 shares of BRAK at $15.05 per share. Both orders were executed on their respective days. Assuming no brokerage commissions, how much of a gain or loss did you make? (Round to two decimal places.) You made a ___ of ___

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The given problem is about the calculation of the gain or loss made when the limit orders are used instead of the market orders. the problem is "gain" or "loss".Solution Given, the gain made = $225.75We are to calculate the gain or loss made using the limit orders

On October 16, you put in a limit order to buy 525 shares of BRAK at $14.57 per share. On October 17, you put in a limit order to sell 525 shares of BRAK at $15.05 per share. The price of 1 share of BRAK is bought at = $14.57The price of 1 share of BRAK is sold at = $15.05The total number of shares bought = 525The total cost of shares bought = 525 × $14.57 = $7642.25The total cost of shares sold = 525 × $15.05 = $7892.25Gain = Total selling price - Total cost price = $7892.25 - $7642.25 = $250.

you made "gain of $250". Limit orders refer to the orders that are executed at a specified price. In this case, the orders to buy and sell the shares of BRAK are executed when the price of the share reaches $14.57 and $15.05 per share, respectively. The total number of shares bought and sold are the same, that is, 525 shares. The total cost of shares bought is $7642.25. The total cost of shares sold is $7892.25. The gain is calculated by subtracting the total cost price from the total selling price. Therefore, the gain made by using the limit orders is $250.

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5 Exercise 3-4 (Algo) Underapplied and Overapplied Overhead [LO3-4] Osborn Manufacturing uses a predetermined overhead rate of $20.20 per direct labor-hour. This predetermined rate was based on a cost

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1. The amount of overapplied manufacturing overhead for the period is $2,160.

2. The amount of the decrease would be equal to the amount of the overapplied overhead, which is $2,160.

How did we get these values?

1. To determine the amount of underapplied or overapplied manufacturing overhead, we need to calculate the difference between the actual overhead incurred and the overhead applied based on the predetermined rate.

Actual manufacturing overhead: $255,000

Actual direct labor-hours: 12,900

Predetermined overhead rate: $19.60 per direct labor-hour

Estimated activity level: 13,400 direct labor-hours

Predetermined overhead applied: $19.60 * 12,900 = $252,840

Underapplied or overapplied overhead = Actual manufacturing overhead - Predetermined overhead applied

Underapplied or overapplied overhead = $255,000 - $252,840 = $2,160 (overapplied)

The amount of overapplied manufacturing overhead for the period is $2,160.

2. If the company chooses to close the underapplied or overapplied overhead to Cost of Goods Sold, the journal entry to dispose of the overapplied overhead would decrease the company's gross margin.

Journal entry to dispose of the overapplied overhead:

Debit: Cost of Goods Sold - $2,160

Credit: Manufacturing Overhead - $2,160

Since Cost of Goods Sold is an expense, increasing it with the debit entry will decrease the gross margin. The amount of the decrease would be equal to the amount of the overapplied overhead, which is $2,160.

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The complete question goes thus:

Exercise 3-4 Underapplied and Overapplied Overhead [LO3-4] Osborn Manufacturing uses a predetermined overhead rate of $19.60 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $262,640 of total manufacturing overhead for an estimated activity level of 13,400 direct labor-hours The company actually incurred $255,000 of manufacturing overhead and 12,900 direct labor-hours during the period. Required 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? 1. Manufacturing overhead 2. The gross margin would by by

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Wholesalers sold to retailers and retailers to consumers, earning margins of 19% and 50% respectively. Sales are currently 1,200 bags per week. Paul is considering distributing 1 million free standing insert (FSI) coupons for $0.20 off the regular price and expects to pay $3 per thousand for artwork and distribution. Each coupon redeemed will cost an additional $0.02 in processing fees. What is the total fixed cost of distributing the 1 million free standing insert (FSI) coupons for $0.20 off the regular price if Paul achieves a 2% redemption rate? Q5. Suppose TC=2(w/a+r/B)y. Find the optimal bundle, (L, K). Trends in dividends Figure 14.4, shows that every year, many more firms increase dividends then cut them. "Managers use dividends to signal confidence in their business. Cutting them sends a negative signal. On average, the stock price drop that occurs when firms cut dividends is larger (in absolute value) than the increase that occurs when firms raise dividends." The statement above is (Select from the drop-down menu.) FIGURE 14.4 U.S. Publicly Listed Companies Maintaining, Increasing, or Decreasing Dividends 1959 to 2019 Among firms that pay dividends, the most common practice is to increase dividends yearly, with dividend cuts being relatively rate. 90 80 Firms increasing dividends 70 Public U.S. Dividend-Paying Firms (%) m Firms maintaining dividends 30 20 Firms decreasing dividends a 10 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 2019 Year You are considering two mutually exclusive projects for investment. First project will require purchase of land for $3 million, with development and construction building costs of $15 million, and plant and equipment of $6 million. You will also need to spend on working capital each year. The change in net working capital is estimated to be 3% of sales every year during the life of the project (the exception being the last year of the project which reverses the sum of all previous cash flows due to working capital). Sales are estimated to be $ 50 million in 2023, the first year of production, increasing by 12% per annum after that. The cost of goods sold is 65% of sales. Fixed costs will be $10 million in 2023, increasing by 5% per year. Both buildings and plant/equipment will be depreciated straight line to zero over the 10-year project life. The buildings will have a salvage value of 20% of cost and the plant and equipment will have no salvage value. At the end of the project, you will rehabilitate the site and sell the land for light industrial development for $16 million. Relevant company tax rate for the project is 20%.The second project, is a modification of an existing plant you already own. The plant has been idle for a number of years, but with renovation would be well suited to furfuryl alcohol production. If not used for the proposed project, you will lease out the existing plant for $70,000 per year. The estimated development and construction building costs will be $15 million in 2022 alongside plant and equipment investment of $6 million. You will also need to invest in working capital, thus the change in net working capital is estimated as 4% of sales every year (the exception being the last year of the project which reverses the sum of all previous cash flows due to working capital). Sales will be $46 million in 2023, increasing by 6% per annum thereafter. The cost of goods sold will be 75% of sales. Fixed costs will be $5 million in 2023, increasing by 4.5% per year. Both buildings and plant/equipment will be depreciated straight line to zero over the 10-year project life. The buildings will have a salvage value of 30% of cost and the plant and equipment will have no salvage value. At the end of the project, the Plant will remain idle awaiting potential future developments at no cost. The company tax rate relevant for the project is 30%.Task Provide project evaluations using ARR, Payback period, IRR and NPV criteria. Which project you propose company invest in and a justification for your selection of the project and the choice of method used in your project selection. Are there any other factors you would consider in your evaluation? Let f (x) = x and g(x) = 1/x.(a) f (36)(b) (g + f )(4)(c) (f g)(0) Find the compound interest earned by the deposit. Round to the nearest cent. $2000 at 6% compounded quarterly for year O None of these. $240.00 $247.20 $59,13 $60.45 Let f be a given function. A graphical interpretation of the 2-point forward difference formula for approximating f'(x) is the slope of the line joining the points of abscissas xo +h and x, with h > 0. True False What is a likely direct result in bank behavior after the Fed lowers required reserve rate? Issue more loans Raise interest rates Sell off government bonds No answer text provided. what type of job opportunities did asian americans commonly have opportunities for, and why were job opportunities limited for early asian migrants? Mark and Mary are a couple who are both employed in the energy industry in Texas. Mary works as an accountant for a large oil company and Mark supervises drilling activity across the state for a medium-sized oil production company. Lately, oil prices have taken a deep plunge and Mark is worried about losing his job as oil companies cut back supply. If Mark is laid off from his job, Mark and Mary should O reassess their financial plan after Mark has been out of work for six months. O withdraw money from their emergency fund to maintain their lifestyle. O keep their financial plan in place so that they can be sure to achieve their future goals. O reassess their financial plan and adjust their financial goals to conform to their new situation. Which of the choices correctly ranks the following compounds from lowest level of oxidation to highest level of oxidation? 1= CH3CHO 2= CH2=CH2 3= CH3CO2H A) I street company makes a product that is expected to require 2 hours of labor per unit of product. the standard cost of labor is $6.00. street company actually used 2.1 hours of labor per unit of product. the actual cost of labor was $6.25 per hour. street company made 1,100 units of product during the period. based on this information alone, the labor usage variance is: a. $600 favorable. b. $660 unfavorable. c. $190 favorable. d. $660 favorable. Recent days have witnessed increasing public outcry abouteconomic hardship and financial distress in Ghana. Many expertshave largely attributed the situation to poor financial and fiscalmanagement Complete and balance the following half-reaction in acidic solution Sn2 (aq) Sn"(aq) 4+ Sn OH H20 Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 1.5 feet of leather and predicts leather will cost $2.50 per foot. Suppose Perfect Pet made 60 collars during February. For these 60 collars, the company actually averaged 1.75 feet of leather per collar and paid $2.00 per foot. 1. Calculate the standard direct materials cost per unit. (Round your answer to 2 decimal places.) 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 4.Calculate the direct materials price and quantity variances. (Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)