Columbia Products produced and sold 900 units of the company's only product in March. You have collected the following information from the accounting records
Sales price (per unit)
Manufacturing costs $ 448
Fixed overhead 50,400
Direct labor (per unit) 35
Direct materials (per unit) 112
Variable overhead (per unit) 70 (for the month)
Marketing and administrative costs
Fixed costs (for the month) 67,500
Variable costs (per unit) 14
Required:
Compute the following:____
1. Variable manufacturing cost per unit $217
2. Full cost per unit
3. Variable cost per unit
4. Full absorption cost per unit.
5. Prime cost per unit.
6, Conversion cost per unit.
7. Profit margin per unit
8. Contribution margin per unit
9. Gross margin per unit

Answers

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Units produced and sold= 900

Sales price (per unit) $448

Manufacturing costs:

Fixed overhead 50,400

Direct labor (per unit) 35

Direct materials (per unit) 112

Variable overhead (per unit) 70 (for the month)

Marketing and administrative costs:

Fixed costs (for the month) 67,500

Variable costs (per unit) 14

a. Variable manufacturing cost= 35 + 112 + 70= $217

b. Total cost:

Total variable cost= (217 + 14)*900= 207,900

Total fixed cost= 50,400 + 67,500= 117,900

Total cost= $325,800

Total cost per unit= 325,800/900= $362

c. Total variable cost= 217 + 14= $231

d. The absorption costing method includes all costs related to production, both fixed and variable.

Absorption cost= 217 + (50,400/900)= $273

e. Prime cost= direct material + direct labor

Prime cost= 112 + 35= $147

f. Conversion cost= direct labor + unitary variable overhead

Conversion cost= 35 + 70= $105

g. Profit margin= selling price - total unitary cost

Profit margin= 448 - 362= $86

h. Contribution margin per unit= selling price - total unitary variable cost

Contribution margin per unit= 448 - 231= $217

j. Gross margin per unit= Selling price - absorption cost per unit

Gross margin per unit= 448 - 273= $175


Related Questions

Complete the Analysis section using formulas with statistical functions. Use named ranges instead of cell references in the formulas. Calculate the average, highest, and lowest values for each of the following:a. Price b. MPG City c. MPG Highway d. Average MPG e. Maintenance/Year f. Registration Fee g. Insurance /Year h. Amount to Borrow i. APR j. Years k. Loan Payment l. Gas m. Maintenance/Month n. Insurance/Month o. Total Monthly

Answers

Answer:

The formula for average is =AVERAGE(E15,E16).

The formula for highest is =MAX(F15,F16).

The formula for lowest is =MIN(G15,G16).

Explanation:

In MS Excel, on the left hand side below the tool bar there is a small box which tells the cell name where the cursor is clicked, the name of the cell can be changed from here easily, click on the desired cell and then by clicking on the box you can enter the name of the cell. After a cell is renamed the formula can be written by simply putting the name of the cell instead of the original e.g. E13

The formula for average is =AVERAGE(E15,E16).

The formula for highest is =MAX(F15,F16).

The formula for lowest is =MIN(G15,G16).

The cells provided in the formula above is just an example and more than two cells can be selected.

What are the two major problems that affirmative action programs have faced?

Answers

Answer: quotas and lack of acceptance by some business people

Explanation:

Affirmative action programs are the programs that have been put in place to preventing discrimination that are based on color, sex, race, and national origins.

The programs focus on access to employment, education and also granting of special consideration to the racial minorities and historically excluded groups.

The two major problems that affirmative action programs have faced are quotas and lack of acceptance by some business people.

Quotas and resistance from some corporate leaders have been issues that affirmative action programmes have had to deal with.

Programmes known as affirmative action are those that have been put in place to stop prejudice based on national origins, sex, race, and colour.

The programmes put a lot of emphasis on providing racial minorities and other historically marginalized groups with access to work, education, and other opportunities.

Quotas and resistance from some corporate leaders have been the two main issues that affirmative action programmes have had to deal with.

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Residual Claims Haung. Inc; is obligated to pay its creditors $10,700 very soon.1. What is the market value of the shareholders equity if assets have a market value of 9900?2. What if assets equal $9,990?

Answers

Answer and Explanation:

The computation of the shareholder equity for each case is shown below:

a. For case one

As we know that

Total assets = Total liabilities + stockholder equity

$9,900 = $10,700 + stockholder equity

So, the stockholder equity is

= $10,700 - $9,900

= $800

b. For case two

Total assets = Total liabilities + stockholder equity

$9,990 = $10,700 + stockholder equity

So, the stockholder equity is

= $10,700 - $9,990

= $710

Refined grain products are often fortified with _____ to decrease rates of _____.a. iodine; early deliveryb. vitamin A; fetal heart abnormalitiesc. folic acid; early deliveryd. iron; neural tube defectse. folic acid; neural tube defects

Answers

Answer: folic acid; neural tube defects

Explanation:

Refined grain products are often fortified with folic acid to decrease rates of neural tube defects.

Refined grains products are the products that have been milled. This means that the bran and the germ has been removed to give the grains a finer texture and also to improve the shelf life of the grain. Examples of refined grain products are white rice, de-germed cornmeal, white flour, and white bread.

The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 3,800 sets per year. Annual cost data at full capacity follow:Direct labor $89,000Advertising $101,000Factory supervision $66,000Property taxes, factory building $20,000Sales commissions $63,000Insurance, factory $7,000Depreciation, administrative office equipment $3,000Lease cost, factory equipment $15,000Indirect materials, factory $20,000Depreciation, factory building $108,000Administrative office supplies (billing) $5,000Administrative office salaries $111,000Direct materials used (wood, bolts, etc.)$425,000Utilities, factory $40,0001. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect.)2. Compute the average product cost of one patio set.3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged?

Answers

Answer:

1.COST BEHAVIOUR

Variable Fixed

$642,000 $323,000

SELLING OR ADMINISTRATIVE

Cost $283,000

PRODUCT COST

Direct Indirect

$513,000 $276,000

2.$208

3. I would expect the average product cost per set to increase.

Explanation:

1. Calculation for the dollar amount of each cost item

COST BEHAVIOUR

Variable Fixed

Direct labor $89,000 $0

Advertising $0 $101,000

Factory supervision $0 $66,000

Property taxes, factory building$0 $20,000

Sales commissions$63,000 $0

Insurance, factory $0 $7,000

Depreciation, administrative office equipment$0 $3,000

Lease cost, factory equipment$0 $15,000

Indirect materials, factory $20,000 $0

Depreciation, factory building

Administrative office supplies (billing) $5,000 $0

Administrative office salaries $0 $111,000

Direct materials used (wood, bolts, etc.)$425,000 $0

Utilities, factory $40,000 $0

TOTAL COSTS $642,000 $323,000

SELLING OR ADMINISTRATIVE

Cost

Direct labor

Advertising $101,000

Factory supervision

Property taxes, factory building

Sales commissions $63,000

Insurance, factory

Depreciation, administrative office equipment $3,000

Lease cost, factory equipment

Indirect materials, factory

Depreciation, factory building

Administrative office supplies (billing) $5,000

Administrative office salaries$111,000

Direct materials used (wood, bolts, etc.)

Utilities, factory

TOTAL COSTS $283,000

PRODUCT COST

Direct Indirect

Direct labor $89,000 $0

Advertising

Factory supervision $0 $66,000

Property taxes, factory building$0 $20,000

Sales commissions

Insurance, factory $0 $7,000

Depreciation, administrative office equipment

Lease cost, factory equipment$0 $15,000

Indirect materials, factory$0 $20,000

Depreciation, factory building $0 $108,000

Administrative office supplies (billing)

Administrative office salaries

Direct materials used (wood, bolts, etc.)$425,000 $0

Utilities, factory$0 $40,000

TOTAL COSTS $514,000 $276,000

2.Computation of the average product cost of one patio set

Using this formula

Average product cost of one patio set =(Direct costs +Indirect costs)/Capacity set per year

Let plug in the formula

Average product cost of one patio set=($514,000+$276,000)/$3,800

Average product cost of one patio set=$790,000/$3,800

Average product cost of one patio set=$208

Therefore the Average product cost of one patio set will be $208

3. In a situation where the production drops to only 1,000 sets annually, I would expect the average product cost per set to increase.

1. The dollar amount of each cost item is entered under the appropriate headings as follows:

                                                             Fixed    Variable      Selling &   Product

                                                             Costs      Costs     Admin Cost    Cost

Direct labor                                                     $89,000                          $89,000

Advertising                                     $101,000                       $101,000

Factory supervision                       $66,000                                          $66,000

Property taxes, factory building   $20,000                                          $20,000

Sales commissions                                        $63,000        $63,000

Insurance, factory                           $7,000                                             $7,000

Depreciation, administrative

   office equipment                       $3,000                           $3,000

Lease cost, factory equipment   $15,000                                            $15,000

Indirect materials, factory                            $20,000                          $20,000

Depreciation, factory building $108,000                                           $108,000

Administrative office supplies (billing)         $5,000          $5,000

Administrative office salaries    $111,000                          $111,000

Direct materials used (wood, bolts, etc.)$425,000                         $425,000

Utilities, factory                         $40,000                                             $40,000

Total costs                              $471,000 $602,000     $283,000  $790,000

2. The average product cost per set is $207.89 ($790,000/3,800).

3. If the Dorilane Company's production level drops to 1,000 sets annually, the average product cost per set will increase.

Thus, if the production level reduces to 1,000 sets annually, the average product cost will not decrease or remain unchanged, but will increase to $790.

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Why is Business process reengineering and organizational change seen to have a pain-pleasure relationship

Answers

Answer:

Explanation:

Business Process Reengineering reduces costs and the number of cycle by eliminating activities that are deemed unworthy and lack productivity. It also to an extent, takes out the employees who perform them these unproductive tasks.

Reorganization on the other hand, decreases the need for management layers by teams. Reorganization also accelerates the flow of information. It eliminates the errors and rework that are caused by different lots of handoffs. And I should mention, Reorganization definitely improves quality.

Answer:

The pain-pleasure relationship is simple.

Business process restructuring is another word for change.

Change can be difficult to implement, much more difficult or painful to accept.

Given that organisations are mostly people, and people can, for a myriad of reasons, fight change, the process, therefore, is arduous.

Business Process Re-engineering sometimes means people will become redundant because a particular value-adding process has become outdated by new technology.

It's easy to say "people can prevent themselves from becoming redundant by coming up to speed with new technology". However, what happens to a 50-year-old who still drives a taxi for a living, if tomorrow the market develops a strong affinity for driverless cars? Will the 50-year-old go on to learn how to fix driverless cars at that age? Even if the technology was opensource and non-proprietary, will it not be too late for the taxi driver to enrol for programming lessons or advanced auto mechanics maintenance courses?

Business Processes can be like that. The goal of reengineering the process of an organisation is to achieve a higher level of effectiveness, efficiency, productivity and profitability.

To maximize the pleasure which comes with having a more productive workforce at a lower cost, business owners can (where possible,) give adequate time for changes to be communicated, accepted, bought-into and prepared for.

Cheers!

What means can managers use to assess political risk? What do you think is the relative effectiveness of these different methods? At the time you are reading this, what countries or areas do you feel pose political risk sufficient to discourage you from doing business there?

Answers

Explanation:

Political business risks can negatively affect the profitability of a company or investment in a particular country or location, these risks are inherent in political crises that affect the economy of a location, so it is necessary for managers to assess political risk using analysis indices of risk, assessment systems, past results, country positioning and it is also essential that managers seek experts for better guidance on political risks.

Brazil, for example, is a country that despite attracting a lot of international investment through government incentives, is going through an internal political crisis that gives it greater instability and causes instability so that investors feel safe in investing in the country, due to the possibility of rapid change in the political scenario that can lead to negative economic changes and unforeseen events that mean negative risks for foreign investors.

The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:Equipment $18,250 Service Revinue $10,800Office Supplies 1,400 Account Receivable 8,400Notes Payable 5,000 Accounts Payable 11,000Rent Expense 550 Retined Earnings, June 1, 2018, 3,900Cash 2,200 Salries Expense 1,900Dividends 4,000 Common Stock 6,000Required:a. Prepare the statement of retained earnings for Winfrey Towing Service for the month ending June 30, 2018.b. What does the statement of a retained earnings report?

Answers

Answer:

See explanations below.

Explanation:

First , we need to calculate net income

Revenues :

Service revenue $10,800

Less : Expenses:

Salary expense $1,900

Rent expense $550

Total expense. ($2,450)

Net income. $8,350

a. Winfrey Towing Service

Statement of retained earnings

Month ended, June 30 2018

Retained earnings June 1, 2018 $3,900

Add net income for the month $8,350

$12,250

Less: Dividends ($4,000)

Retained earnings June 30, 2018 $8,250

b. Statement of retained earnings report is the change in retained earnings of a firm or business unit during a given period of time.

What is the Veteran Administration’s primary role in the mortgage market?
A) To insure loans made by approved lenders.
B) To guarantee loans made by lenders.
C) To lend money directly to borrowers.
D) To buy loans from other secondary mortgage marketers.

Answers

Answer: To guarantee loans made by lenders

Explanation:

The primary mortgage market is simply the market where a mortgage loan can be gotten by the borrowers from a primary lender while the secondary mortgage market is simply a marketplace where the home loans are purchased and sold between the lenders and the investors.

The Veteran Administration’s primary role in the mortgage market is guarantee loans made by lenders.

Suppose you are committed to owning a $220,000 Ferrari. If you believe your mutual fund can achieve an annual return of 10.85 percent, and you want to buy the car in 8 years on the day you turn 30, how much must you invest today

Answers

Answer:

2,291,520

Explanation:

220,000×10.85%=23,870

23,870×96=2,291,520

At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $54,200; Liabilities = $26,300; Dividends = $2,700; Revenues = $18,500; Expenses = $13,400.
Calculate net income and stockholders' equity at the end of the period.

Answers

Answer:

Net income =$5,100

Shareholders equity=$27,900

Explanation:

Calculate net income and stockholders' equity at the end of the period.

Explanation:

Calculation for the net income and stockholders' equity at the end of the period

Calculation for NET INCOME using this formula

Net income=Revenues- Expenses

Let plug in the formula

Net income=$18,500-$13,400

Net income =$5,100

Therefore Net income amount will be $5,10

Calculation for SHAREHOLDER'S EQUITY using this formula

Shareholdersl's equity=Assets- Liabilities

Let plug in the formula

Shareholders equity=$54,200 -$26,300

Shareholders equity=$27,900

Therefore Shareholders equity will be $27,900

Which of the following best represents the three types of business organizations today? a. Financial, sales, and product creation b. Services, marketing intermediaries, and manufacturing c. Service, sales, and manufacturing d. Purchasing, advertising, and manufacturing

Answers

Answer: b. Services, marketing intermediaries, and manufacturing

Explanation:

The three types of businesses today;

Services - Service companies sell intangible goods otherwise known as services to people who will derive value from them. As such they are highly focused on customer satisfaction which leads to them employing individuals with the knowledge and experience to provide services. Examples include; Accounting firms, law firms, etc

Marketing Intermediaries - These are the middle men in the market. The facilitate the flow of goods from the producer/ supplier to the end user. They include: agent, wholesalers, retailers, financial institutions etc.

Manufacturing - Manufacturing businesses are those who produce the goods that we use today. They are most probably the biggest and most valuable of the 3 types as they comprise of all goods manufactured in the market including technology, commodities, construction, automobiles and the like.

b. Services, marketing intermediaries, and manufacturing

A business organization is a legal entity whose purpose is to carry on a commercial activity by supplying goods or services to clients.

Marketing intermediaries (also known as Distribution intermediaries) are one or more firms or persons who operate as a connection in the distribution of products between manufacturers and customers.

b. Services, marketing intermediaries, and manufacturing represents the three types of business organizations today

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Aladdin Carpet Care had the following total assets, liabilities, and equity as of October 31: (Click the icon to view the data.) What is Aladdin Carpet Care's debt ratio as of October 31? - Debt Ratio 1 Data Table Assets Liabilities Equity $ 200,000 30,000 170,000 Print Done

Answers

Answer:

0.15 or 15%

Explanation:

Total debt ratio is the ratio of total debt to total asset

Total debt ratio = total liability / total asset = 30,000 / 200,000 = 0.15 or 15%

How are creditor and investor claims reported on a balance sheet?
A) The claims of creditors are liabilities and those of investors are assets.
B) The claims of both creditors and investors are liabilities, but only the claims of investors are considered to be long-term.
C)The claims of creditors are reported as liabilities while the claims of investors are recorded as stockholders' equity.
D)The claims of creditors and investors are considered to be essentially equivalent.

Answers

Answer:

C)The claims of creditors are reported as liabilities while the claims of investors are recorded as stockholders' equity.

Explanation:

In a businesses balance sheet, Creditors claims are shown as liabilities. Liabilities show the amount of financing that creditors provided which could be in the form of debts or obligation. Debtors owe creditors an obligation, and this obligation is to pay back. Investors claim are recorded as stockholders equity

According to Hofstede's Five Dimensions, ______ is the opposite of individualism.
A) wa.
B) groupism.
C) collectivism.
D) goal orientation.

Answers

Answer:

C) collectivism.

Explanation:

The Hofstede's Five Dimensions are:

Power Distance (PDI) Individualism versus Collectivism (IDV) Masculinity versus Femininity (MAS) Uncertainty Avoidance (UAI) Long-Term Orientation (LTO)

Remember, collectivism refers to a principle of giving preference to a group (collectively) rather than to individual members of the group. However, unlike collectivism,  individualism prioritizes an individual over a collective group.

The owner of a bicycle repair shop forecasts revenues of $240,000 a year. Variable costs will be $70,000, and rental costs for the shop are $50,000 a year. Depreciation on the repair tools will be $30,000.Required:a. Calculate operating cash flow for the year by using all three methods: 1. Adjusted accounting profits2. Cash inflow/cash outflow analysis3. The depreciation tax shield approach.b. Are the above answers equal?

Answers

Answer:

1. Adjusted Accounting Profits

- This method gives cashflow by adjusting revenue for expenses.

Earnings before tax

= Revenue - variable cost - rent cost - depreciation

= 240,000 - 70,000 - 50,000 - 30,000

= $90,000

Earnings After tax

= 90,000 ( 1 - tax rate)

= 90,000 ( 1 - 30%)

= $63,000

Add back depreciation as it is a non-cash expense

Operating cashflow = 63,000 + 30,000

= $93,000

2. Cash inflow/cash outflow analysis

Cash outflow is removed from inflow.

= Cash inflow - outflow

= 240,000 - variable cost - rent cost - tax

= 240,000 - 70,000 - 50,000 - 27,000

= $93,000

Tax = Earnings before tax * 30%

= 90,000 * 30%

= $27,000

3. The depreciation tax shield approach.

The tax shield that depreciation affords is added to the earnings after tax.

= Revenue - variable cost - rent cost

= 240,000 - 70,000 - 50,000

= $120,000

After tax = 120,000 * ( 1 - 30%)

= $84,000

Depreciation tax shield = depreciation * tax

= 30,000 * 30%

= $9,000

Cashflow = 84,000 + 9,000

= $93,000

4. Are the above answers equal?

Yes they are. All give an operating cash-flow of $93,000.

How are goods produced? Determines:a) who receives the goods that are produced. b) how tastes and preferences are determined. c) how resources are combined in the production of goods. d) the types and quantities of goods and services produced.

Answers

Answer:

c) how resources are combined in the production of goods.

Explanation:

In order to meet the unending needs and wants of consumers, to satisfactorily provide products that meets their requirements, tastes or preferences various manufacturing companies use five (5) main methods of production, and these are; labour-intensive production, mass production, batch production, capital-intensive production and job production.

Generally in Economics, the question of how goods are produced, determines how resources are combined in the production of goods.

This ultimately implies that, before a manufacturer produce its goods it determines the amount of resources that are available. These resources that are to be combined for the purpose of production of goods are entrepreneur, land, labor, and capital, which are generally referred to as the four (4) factors of production.

The idea that individuals and organizations are accountable to a larger society is known as:_________

Answers

Answer:

social responsibility

Explanation:

Social responsibility is the contribution of individuals and organizations to their immediate environment towards its development. The contribution is voluntary hence could be in form of providing scholarships to the children of host community, provision of healthcare facilities etc. Corporate social responsibility is also a sense of responsibility towards the community where an organization is situated.

Most organizations have now beginning to include corporate social responsibility into their values because such would make them seem attentive to the problems faced by their host community and it is a way of giving back to them for allowing the establishment of company in their locality.

The rivalry among competing sellers tends to be less intense when: Select one: a. Industry conditions tempt competitors to use price cuts or other competitive weapons to boost sales b. Industry rivals are not particularly aggressive in drawing sales and market share away from rivals c. Both of the above d. None of the above

Answers

Answer:

The correct answer is the option B: Industry rivals are not particularly aggressive in drawing sales and market share aways from rivals.

Explanation:

To begin with, when it comes to rivalry among sellers of a same industry the competition will be less intense when they tend to be not particularly aggressive in terms of achieving every sale or getting more portions of the market so that they could be the only ones. Therefore that if this type of competitors exist, the ones that are not aggressive, there is not a lot of rivalry in the industry where they sell. Moreover, that will determine that the product sometimes might be quite similar or not so distinctive due to the fact that they do not fight with each other.

Cute Camel Woodcraft Company's income statement reports data for its 1st year of operation. The Firm's CEO would like sales to increase by 25% next year. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest & taxes (EBIT). The company's operating costs (excluding depreciation & amortization) remain at 65% of net sales, & its depreciation & amortization expenses remain constant from year to year. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). In year 2, Cute Camel expects to pay $300,000 & $1,824,525 of preferred & common stock dividends, respectively.Complete the Year 2 income statement data & then answer the questions that follow. Year 1 Year 2 (Forecasted)Net Sales $20,000,000 Less: operating costs, except 13,000,000depreciation & amortization Less: depreciation & amortization expenses 800,000 800,000Operating Income (EBIT) $6,200,000 Less: interest expense 620,000 Pre-Tax Income (EBT) 5,580,000 Less: taxes (40%) 2,232,000 Earnings after taxes $3,348,000 Less: preferred stock dividends 300,000 Earnings available to common shareholders 3,048,000 Less: common stock dividends 1,506,600 Contribution to Retained Earnings $1,541,400 $1,929,975Given the results of the previous income statement calculations, complete the following statements:A. In year 2, if cute camel has 25,000 shares of preferred stock issued & outstanding, then each preferred share should expect to receive ($12, $30, $18 or $24) in annual dividends.B. If cute camel has 200,000 shares of common stock issued & outstanding, then the firm's earnings per share (EPS) is expected to change from ($31, $16.74, $27.90 or $15.24) in year 1 to ($33.79, $39.75, $18.77 or $20.27) in year 2.

Answers

Complete Question

The complete question is shown on the first image

Answer:

The prepared income statement and the calculation is shown on the second , third and  fourth uploaded image

A

the amount of preference dividend per share is  [tex]Z =  \$ 12[/tex]

B

The solution and the calculation is shown fifth uploaded image

Explanation:

Generally the amount of preference dividend per share is mathematically represented as

    [tex]Z =  \frac{ Amount \  of  \ preferred dividend \ paid\  _{2nd  year }  }{ Number \  of \  preferred \  share  }[/tex]

=>   [tex]Z =  \frac{300000}{25000}[/tex]

=>     [tex]Z =  \$ 12[/tex]

Economists say that individuals make decisions at the margin. What does its menas?

Answers

Answer:

When Economists say that humans make decisions at the margin they mean that decisions are made on the basis of the cost and benefit of getting an additional unit of a good/ service.

Marginal benefit refers to the additional utility that we will derive from consuming one extra unit of a good or service and factors in heavily into our decision making. We usually accept a decision if the Marginal benefit is higher or equal to the Marginal cost ( cost of the additional unit) of the good/service.

If the Marginal Cost is instead higher, the decision would most probably be cancelled.

Should underperforming restaurants be closed or sold?

Answers

Answer:

sold

Explanation:

Underperforming restaurants are those restaurants  which does not perform well. The restaurant does not run properly and no people or less people visits the restaurant for eating.

This can be due to several factors. The restaurant's location may not be good, the restaurant may not provide good quality and tasty food, or people might not find their required menu in that restaurant. All these factors leads to less people visiting the restaurant and less revenue generation.

In such a case, the owner of the restaurant must sell the restaurant to some other party so that he does not undergo any losses. By selling the property he will get some amount of his investment which he could utilize in his further projects.

Also by selling the restaurant, the employees of that restaurant will not go out of job and can feed their family.

So, the restaurant should be sold.

Revenues generated by a new fad product are forecast as follows:Year Revenues1 $54,000 2 30,000 3 20,000 4 10,000 Thereafter 0 Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year. The product requires an immediate investment of $50,000 in plant and equipment.a. What is the initial investment in the product? Remember working capital.Initial investment $ b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 30%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. (Do not round intermediate calculations.)Year Cash Flow1 $ 2 3 4 c. If the opportunity cost of capital is 12%, what is the project's NPV? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)NPV $ d. What is project IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)IRR %rev: 09_24_2015_QC_CS-26391, 02_03_2015_QC_C

Answers

Answer:

a. What is the initial investment in the product?

$55,400

b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 30%, what are the project cash flows in each year?

NCF₁ = $25,050NCF₂ = $15,250NCF₃ = $11,750NCF₄ = $8,250

c. If the opportunity cost of capital is 12%, what is the project's NPV?

-$7,270.28

d. What is project IRR?

4.27%

Explanation:

year     cash flows        costs            working capital            

0          -$50,000                                -$5,400

1            $54,000        -$27,000          $3,000 (+$2,400)

2           $30,000        -$15,000           $2,000 ($1,000)

3           $20,000        -$10,000            $1,000 (+$1,000)

4           $10,000         -$5,000             $0 (+$1,000)

net cash flow year 1 = [($54,000 - $27,000 - $12,500) x 0.7] + $12,500 + $2,400 = $25,050

net cash flow year 2 = [($30,000 - $15,000 - $12,500) x 0.7] + $12,500 + $1,000 = $15,250

net cash flow year 3 = [($20,000 - $10,000 - $12,500) x 0.7] + $12,500 + $1,000 = $11,750

net cash flow year 4 = [($10,000 - $5,000 - $12,500) x 0.7] + $12,500 + $1,000 = $8,250

I calculated the NPV and IRR using a financial calculator

Please calculate the answer to the following problem, showing all of your work. NO CREDIT will be given if I cannot follow your calculations. This assignment should be hand-written.

The percent markup on a pickup truck is known to be 112% based upon cost to the seller. If the seller paid $15,800 for the truck, what would be the corresponding percent markup based upon the sale price? Please round your answer to nearest tenth of one percent.

Answers

Answer: 52.8%

Explanation:

The mark-up is simply referred to as the amount that is been added to the cost price of a particular good or service so that the profits and the overheads can be covered.

Based on the information given in the question, the mark up in terms of dollars would be calculated as:

= 15800 × 112%

= 15800 × 1.12

= 17696

The sale price will therefore be:

= 15800 + 17696

= 33496

The percent markup based upon the sale price would be:

= 17696/33496

= 52.8%

When having to have a difficult conversation with upper managers, you can increase success by:__________a) Framing the issue in familiar language.b) Not asking for further budget allocation.c) Making sure you have just met your last deadline.d) Framing the issue in familiar language and making sure you have just met your last deadline.

Answers

Answer:

a) Framing the issue in familiar language

Explanation:

Since in the question it is mentioned that there is a difficult conversation with upper level manager so here the success could be increased by framing the issue so that the issue could be determined in a language that is familiar so that the issue could be resolved immediately by taking the proper actions in order to complete the task before time or within the time

Hence, the correct option is a.

a. The owner invested $18,000 cash in the company in exchange for its common stock. b. The company purchased supplies for $1,250 cash. c. The owner invested $11,500 of equipment in the company in exchange for more common stock. d. The company purchased $350 of additional supplies on credit. The company purchased land for $10,500 cash.Required:Write down the impact of each transaction on individual items of the accounting equation.

Answers

Answer:

since there is not enough room here I used an excel spreadsheet

Explanation:

The impact of each transaction on individual items is shown with the help of an accounting equation.

What is an accounting equation?

The accounting equation is a formula that shows the total assets of a company are equal to the sum of its liabilities and shareholders' equity (Assets = Liabilities + Equity). The clear relationship between a company's liabilities, assets, and equity is the foundation of double-entry accounting.

The accounting equation can be reconfigured in three ways: Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses = Assets. Assets minus liabilities equals owner's equity. Assets minus liabilities equals net worth.

Therefore, the effect of the above transactions is shown in the form of accounting equation is attached below.

To learn more about accounting equation, click here:

https://brainly.com/question/14689492

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Match the accounting terminology to the definitions (Click the icon to view the definitions.)
Definitions
1. Certified management accountants
2. Accounting
a. information system that measures business activities, processes that information into reports, and communicates the results to decision makers
b. professional accountants who serve the general public
c. person or business to whom a business owes money
d. field of accounting that focuses on providing information for internal decision makers professionals who work for a single company field of accounting that focuses on providing information for external decision makers
3. Managerial accounting
4. Certified public accountants
5. Financial accounting
6. Creditor

Answers

Answer:

a. Accounting.

b. Certified public accountants.

c. Creditor.

d. Managerial accounting.

e. Certified management accountants.

f. Financial accounting.

Explanation:

1. Accounting: information system that measures business activities, processes that information into reports, and communicates the results to decision makers.

2. Certified public accountants: professional accountants who serve the general public.

3. Creditor: person or business to whom a business owes money.

4. Managerial accounting: field of accounting that focuses on providing information for internal decision makers.

5. Certified management accountants: professionals who work for a single company.

6. Financial accounting: field of accounting that focuses on providing information for external decision makers.

What is the best study group?

Answers

Answer:

Study group are the institutions which provide students with the lectures and note. They help students for preparing assignments and hep them with their presentations. There can also be various study groups which help students with thesis writing.

Explanation:

The main purpose of study groups is to bring all the intellectual at one platform. There are multi talented youth who has different skills. These students are united at one platform and their intellectual is exchanged and enhanced by healthy discussions.

A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture. Which of the following items would be increased by this sales transaction?A) Total Assets.B) Accounts Receivable.C) Total Liabilities.D) Inventory.E) Revenue.

Answers

Answer:

A) Total Assets

B) Accounts Receivable

E) Revenue.

Explanation:

Accounts Receivable are being increased because the customer took the goods on credit and agreed to pay in 30 days.

Accounts Receivable is an asset so the total asset will increase. Even though inventory decreases, the amount that the good was sold for exceeds inventory cost so the net benefit will increase assets.

Revenue is earned when a good is sold. $10,000 worth of goods were sold so that would be $10,000 in  revenue.

Corporate finance is concerned with the different aspects of a business's financial management. The chief financial officer (CFO) is the top financial position in the organization and oversees several tasks. The CFO is not responsible for which of the following departments? A. Human resources B. Marketing C. Production D. Security analyst relations E. Accounting

Answers

Answer:

The answer is A. B. and C.

Explanation:

The Chief Financial Officer (CEO) will not be responsible for the following:

1. Human resources.

2. Marketing. Jobs for marketers

3. Production.

But rather, the CFO will perform the following (according to the question)

1. Security analyst relations.

2. Accounting.

CFO suoervises all accounting and Finance-related issues.

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