Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $47,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years.
Machine A Machine B
Purchase price$ 118,000$ 131,000
Variable manufacturing costs per year21,000 14,000
(a) Compute the income increase or decrease from replacing the old machine with Machine A.
(b) Compute the income increase or decrease from replacing the old machine with Machine B.
(c) Should Lopez keep or replace its old machine

Answers

Answer 1

a) The income increase from replacing the old machine with Machine A is $21,800 ($56,400 - $44,600 + $10,000).

b) The income increase from replacing the old machine with Machine B is $26,200 ($56,400 - $40,200 + $10,000).

c) The Lopez Company should replace its old machine, preferably with Machine B.

Data and Calculations:

Current selling price =$57,000

Gain from the sale of old machine = $10,000 ($57,000 - $47,000)

                                                  Old Machine    Machine A     Machine B

Book value                                     $47,000

Purchase price                                                    $118,000        $131,000

Variable manufacturing costs        47,000           21,000            14,000

Estimated remaining useful life    5 years           5 years          5 years

Fixed costs per year                      $9,400        $23,600        $26,200

Total costs (variable + fixed)       $56,400        $44,600        $40,200

Comparative income increase       $0                $11,800         $16,200

Total income increase                    $0               $21,800        $26,200 ($16,200 + $10,000)

Thus, it is economically better for Lopez to sell its old machine, replacing it with Machine B, which reduces the total costs per year.

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Related Questions

Colliers, Incorporated, has 100,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $2 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount of $600,000 this year.
Required:
a. What amount will go to preferred stockholders?
Dividend Payment to Preferred Stockholders
b. How much will be available for common stock dividends?
Dividend Payment to Common Stockholders

Answers

a. The amount that will go to the preferred stockholders is $400,000.

b. The amount of the declared dividend that will be available for common stock dividends is $200,000 ($600,000 - $400,000).

Data and Calculations:

Cumulative Preferred Stock Outstanding = 100,000 shares

Dividends per share = $2

Cumulative Preferred Dividend last year = $200,000 (100,000 x $2)

Preferred Dividend this year = $200,000 (100,000 x $2)

Total preferred dividend to be paid this year = $400,000

Thus, the Preferred Stockholders will be paid $400,000 ($200,000 for last year and $200,000 for this year).

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In a(n) ________, an individual or firm contracts with a parent company to set up a business or retail outlet.

Answers

There are different kinds of businesses. In a franchise system. an individual or firm contracts with a parent company to set up a business or retail outlet.

Franchising is simply known to be a type of contractual system. It is often used to commercialize products, services or technology.

There are five major types of franchises. They are: job franchise, product franchise, business format franchise, investment franchise and conversion franchise.

A franchise (or franchising) is simply known as a process of sharing products or services involving a franchisor, who establishes the trademark of the brand of a business system, and a franchisee, who is responsible for paying a royalty under the franchisor's name and system.

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Many characteristics of work teams can also be seen in sports teams. Although sports teams—especially professional sports teams—often differ from work teams in important ways, they can be helpful for illustrating the key features that contribute to a team’s success.

Patrick works for a large technology company that sponsors an intramural soccer league. Patrick has been on a soccer team with the other software engineers for his product for several years, and they are very good. Team members rarely miss practices and never miss games, they know each other’s strengths and weaknesses on the field, and they play together so well that they have won the company championship 2 years in a row. When the team was first formed, however, the players did not seem very committed, team cohesion was not very good, and the team took a very long time to decide on which plays and strategies to use. After making a change midway through the first season that led to increased cohesion, team performance improved dramatically.

1. What stage of development is Patrick’s soccer team in currently?
a. Preforming
b. Storming
c. Forming
d. Norming

2. If a team leader wanted to help a team such as Patrick’s get through the performing stage of team development, he or she should take which of the following actions?
CHECK ALL THAT APPLY
- Encourage constructive conflict between members of the team.
- Coordinate team roles and activities.
- Help the team make effective decisions.
- Help the team establish clear rules for team member behaviors.

Answers

Answer:

1. Preforming

2. A and C

Answer:

1. What stage of development is Patrick’s soccer team in currently?

a. preforming

2. If a team leader wanted to help a team such as Patrick’s get through the performing stage of team development, he or she should take which of the following actions?

✔ Encourage constructive conflict between members of the team.

✘ Coordinate team roles and activities.

✔ Help the team make effective decisions.

✘ Help the team establish clear rules for team member behaviors.

Businesses that offer repayment plans for purchases are required by law to disclose the interest rate. But that doesn't mean they go out of their way to let you
know what it is. You have to read all the paperwork. Find the interest rate for the following purchase.
To finance a new laptop, Emile is offered a 4 year payment plan with low monthly payments of $31.40. The cost of the laptop was $884.45 including tax, Round
to one decimal place, if necessary.
The interest rate is %

Answers

Answer:

You have to read all the paperwork. Find the interest rate for the following purchase. To finance a new laptop, Emilie is offered a 4 year payment plan with low monthly payments of $34.40. The cost of the laptop was $884.15 including tax. Round to one decimal place, if necessary. The interest rate is

3. As a department manager, you have decided to purchase two projectors to be installed in two of the conference rooms. Your brother has just started his own business in office supplies. He is able to provide you the two projectors with no installation cost. What might you want to consider? Please provide 4 answers. very urgent thanks BUSINESS FOR ETHICS.​

Answers

While the exemption of installation fee might save cost, it is imperative to consider possible issues which may arise and conflict with business and family ethics. Hence, it is important to consider the following ;

The state of the product supplied Associated warranty Family ties in case of product defect Actual cost

The initial condition of the projectors should be considered as one cannot be blinded by family ties to avoid future query.

Similarly, the warranty on the product should be considered in case of early damage or technical malfunction.

Also, it is highly important to consider family ties, as business dealings should not be mingled with family issues.

The cost of the appliance is also an important factor to consider as many sellers up their initial price, and then issue discount afterward. Hence, cost of substitutes and other suppliers should be compared.

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Beto Company pays $4.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $4.50 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost.

Required:
a. Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.)
b. Should Beto make or buy the part?

Answers

Here, we are decide the best option between making the part or buying the part.

a.                  Make or Buy Analysis

Particulars                              Make amount    Buy amount

Direct Materials                            $4.50

Direct Labor                                $1.00  

Overhead (80% of Direct Labor)    $0.80  

Cost to buy                                                      $4.70

Cost per unit                              $5.70              $4.70

Cost Difference = $5.70 - $4.70

Cost Difference = $1.00

Therefore, the cost difference of making amount over buying amount is $1.00.

b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.

Therefore, the buying of the part is the best decision.

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On January 15, Tundra Co. sold merchandise to customers for cash of $42,000 (cost $28,500). Merchandise costing $10,500 was sold to customers for $15,800 on January 17; terms 2/10, n/30. Sales totaling $296,000 (cost $198,000) were recorded on January 20 to customers using MasterCard, a credit card that charges a 2% fee. On January 25, sales of $72,000 (cost $48,200) were made to debit card customers. The bank charges Tundra a flat fee of 0.5% on all debit card transactions.
Required:
1. Prepare journal entries for each of the transactions described (assume a perpetual inventory system).
2. Identify the advantages and disadvantages of each type of sale: cash sale, credit sale, credit card sale, or debit card sale. Explain why Tundra would likely accept all these types of sales.

Answers

1. The Tundra Co's journal entries to record the sales transactions under the perpetual inventory system are as follows:

Journal Entries:

January 15: Debit Cash $42,000

Credit Sales Revenue $42,000

To record the sale of goods for cash.

Debit Cost of goods sold $28,500

Credit Inventory $28,500

To record the cost of goods sold.

January 17: Debit Accounts Receivable $15,800

Credit Sales Revenue $15,800

To record the sale of goods on account, terms 2/10, n.30

Debit Cost of goods sold $10,500

Credit Inventory $10,500

To record the cost of goods sold.

January 20: Debit Cash (MasterCard) $290,080

Debit MasterCard Expense $5,920

Credit Sales Revenue $296,000

To record the sale of goods via MasterCard.

Debit Cost of goods sold $198,000

Credit Inventory $198,000

To record the cost of goods sold.

January 25: Debit Cash $68,400

Debit Bank Charges $3,600

Credit Sales Revenue $72,000

To record the sale of goods via debit card.

Debit Cost of goods sold $48,200

Credit Inventory $48,200

To record the cost of goods sold.

2. The identification of the advantages and disadvantages of each sale type is as follows:

a. Cash Sale ensures that Tundra collects cash immediately without facing credit risks from customers.  Tundra has the cash available for operations without resorting to borrowing.  Customers may be discouraged from making purchases if sales are restricted to cash. Tundra may be forced to offer cash discounts, which are substantial when the interest rates are annualized.

b. Credit Sale enables Tundra customers to buy more because of the credit period given.  Credit Sale attracts more customers than Cash Sale.  However, there is the risk of default.  Some customers may become bankrupt during the credit period.  Credit Sale extension to all customers increases the risk of financial fraud by some entities.

c. Credit Card Sale is like a cash sale except that Tundra will pay some expense to the Card issuers on whose platform the sale transaction is conducted.

d. Debit Card Sale is also like Credit Card Sale except that it is offered by financial institutions and not credit card issuers.

e. By accepting all these types of sales, Tundra increases its ability to make sales to various customers since some customers prefer to make transactions through these various types of sales.

Data Analysis:

January 15: Cash $42,000 Sales Revenue $42,000

Cost of goods sold $28,500 Inventory $28,500

January 17: Accounts Receivable $15,800 Sales Revenue $15,800

Cost of goods sold $10,500 Inventory $10,500

terms 2/10, n.30

January 20: Cash (MasterCard) $290,080 MasterCard Expense $5,920 Sales Revenue $296,000

Cost of goods sold $198,000 Inventory $198,000

January 25: Cash $68,400 Bank Charges $3,600 Sales Revenue $72,000

Cost of goods sold $48,200 Inventory $48,200

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On January 1, Year 1, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on June 30 and December 31 to yield 6%. The bonds were issued for $1,851,234. a. Prepare an amortization schedule for Year 1 and Year 2 using the effective interest rate method. Round answers to the nearest dollar. Enter all amounts as positive numbers.

Answers

The Amortization Schedule for Kennard Co. using the effective interest rate method is as follows:

Date                     Cash           Interest     Amortization          Balance

                         Payment      Expense                  

Jan. 1, Yr 1                                                                                $1,851,234

June 30 Yr 1    $50,000        $55,537        $5,537               $1,856,771

Dec. 31 Yr 1     $50,000        $55,703        $5,703               $1,862,474

June 30 Yr 2  $50,000        $55,874        $5,874               $1,868,348

Dec. 31, Yr 2  $50,000        $56,050        $6,050              $1,874,398

Data and Calculations:

Face value of bonds = $2,000,000

Bonds Proceeds =            1,851,234

Bonds Discounts =           $148,766

Maturity period = 10 years

Coupon interest rate = 5%

Market interest rate = 6%

Payment of interest = June 30 and December 31 annually

June 30, Year 1:

Interest Expense = $55,537 ($1,851,234 x 6% x 1/2)

Cash payment =    $50,000 ($2,000,000 x 5% x 1/2)

Amortization of discount = $5,537 ($55,537 - $50,000)

Bonds Payable value = $1,856,771 ($1,851,234 + $5,537)

December 31, Year 1:

Interest Expense = $55,703 ($1,856,771 x 6% x 1/2)

Cash payment =    $50,000 ($2,000,000 x 5% x 1/2)

Amortization of discount = $5,703 ($55,703 - $50,000)

Bonds Payable value = $1,862,474 ($1,856,771 + $5,703)

June 30, Year 2:

Interest Expense = $55,874 ($1,862,474 x 6% x 1/2)

Cash payment =    $50,000 ($2,000,000 x 5% x 1/2)

Amortization of discount = $5,874 ($55,874 - $50,000)

Bonds Payable value = $1,868,348 ($1,862,474 + $5,874)

December 31, Year 2:

Interest Expense = $56,050($1,868,348 x 6% x 1/2)

Cash payment =    $50,000 ($2,000,000 x 5% x 1/2)

Amortization of discount = $6,050 ($56,050 - $50,000)

Bonds Payable value = $1,874,398 ($1,868,348 + $6,050)

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If government outlays in 2011 were $2.2 trillion and government revenues were $3.8 trillion, the federal Group of answer choices debt was unaffected. debt decreased $1.6 trillion. budget deficit was $1.6 trillion. budget was balanced. budget surplus was $1.6 trillion.

Answers

The budget surplus is $1.6 trillion.

When a government's revenues exceeds its outlays, the government is said to run a surplus. If  government's revenues is less than its outlays, the government is said to have a deficit.  If a government runs a deficit, its debt would increase because it would have to borrow to fund the deficit.

Amount of budget surplus = government's revenues - outlays

$3,8 trillion - $2.2 trillion = $1.6 trillion

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Hawley Enterprises has total assets of $387 million and total liabilities of $115 million. What is their debt to assets ratio

Answers

Answer:

The debt to asset ratio would be 29.7%

Explanation:

The debt to asset ratio is the total liabilities divided by total assets so, 115/387= 0.2971 or 29.71%

The accounting process of ensuring accuracy and completeness includes Journalizing transactions timely using ledgers and journals, closing entries, create a trial balance, make adjusting entries, create adjusting trial balance and prepare the four basic financial statements (balance sheet, income statement, changes in net assets/equity and cash flows). Note, adjusting entries are not necessary but reversals are a must in this process. This statement is:________.
A. True
B. False

Answers

Answer:

The accounting process of ensuring accuracy and completeness includes Journalizing transactions timely using ledgers and journals, closing entries, create a trial balance, make adjusting entries, create adjusting trial balance and prepare the four basic financial statements (balance sheet, income statement, changes in net assets/equity and cash flows). Note, adjusting entries are not necessary but reversals are a must in this process. This statement is:________.

A. True

False…………….. yea ma’am

A company's board of directors votes to declare a cash dividend of $1.45 per share of common stock. The company has 29,000 shares authorized, 24,000 issued, and 23,500 shares outstanding. The total amount of the cash dividend is:

Answers

Answer 41,050.

A company's board of directors votes to declare a cash dividend of $1.45 per share of common stock. The company has 29,000 shares authorized, 24,000 issued, and 23,500 shares outstanding. The total amount of the cash dividend is: $41,050.

3. Cash and credit sales, with returned merchandise. (a) Merchandise is sold for $340 cash. (b) $30 of merchandise sold for $340 is returned for refund. (c) Merchandise is sold on account for $280. (d) $25 of merchandise sold for $280 is returned for a credit. (e) Payment is received for balance owed on merchandise sold on account.

Answers

Answer:

The payment received is 1200

Exercise 11-7 (Static) Depreciation methods; partial periods [LO11-2] On March 31, 2021, Susquehanna Insurance purchased an office building for $12,000,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,200,000 and $700,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Service Life Residual Value Building 30 10% of cost Furniture and fixtures 10 10% of cost Office equipment 5 $30,000 Required: Calculate depreciation for 2021 and 2022.

Answers

Depreciation is the accounting method of allocating cost of an asset over its useful life.

It can be calculated in different ways.

The data given is

                                                       Depreciation

                                             Useful   Residual              Year

                                            Life          Value             2021             2022

Building                                 30      10% of cost      180,000         240,000

                                                           8,000,000

Furniture and fixtures          10        10% of cost     1800,000    2040,000

                                                          120,000

Office equipment                 5          $30,000          210,000     196,000

Note: The first year's depreciation for the three assets is lesser due to the depreciation calculated for 9 months from April to December and the next year's depreciation is for 12 months.

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

A. Depreciation Building Straight Line Method= $ 8,000,000- $800,000/ 30= $ 240,000

The depreciation expense using the straight line method does not change unless the salvage value is reached.

B. Straight Line Rate= 100%/ useful Life

Straight Line Rate for furniture= 100%/ useful Life= 100%/10= 10 %

Straight Line Rate  Office Equipment= 100%/ useful Life= 100%/ 5= 20 %

 

Double Declining Method = 2 * Straight Line Rate

Double Declining Method Furniture= 2 * Straight Line Rate= 2*10%= 20%

Double Declining Method  Office Equipment= 2 * Straight Line Rate= 2*20%= 40%

In double declining method the rate is multiplied to the cost to get the depreciation expense.  20 % of $ 12,000,000= $ 2400,000

Each year the rate is multiplied with the remaining book value after deducting the depreciation expense from the cost as $ 12,000,000- $ 1,800,000= $ 10,200,000

Next years depreciation will be $ 10,200,000 * 20%= $ 2040,000.

This will be added in the original depreciation expense $ 1800,000 + $ 2040,000 = $ 3840,000 and deducted from cost to get the book value. $ 12,000,000- $ 3840,000 = $ 8160,000

Again rate will be multiplied and each years depreciation will be calculated similarly.

It has been summarized in the table below.

    Years        Dep Rate               Dep Expense       Accu. Dep.          Book

                                                                                                            Value

a. 2021           20% 12,000,000          2400,000     1800,000    $ 10,200,000  

b. 2022         20% $ 10,200,000        2040,000     3840,000    $ 8160,000

Office Equipment

    Years        Dep Rate               Dep Expense       Accu. Dep.          Book

                                                                                                            Value

a. 2021           40% 700,000          280,000           210 ,000       $ 490,000  

b. 2022         40% $ 490,000        196,000             406,000    $  294,000

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An investor holding a short position in a maturing futures contract may:

Answers

Answer:

Take delivery of the underlying asset from the holder of the long position.

Identify the supply chain management process that produces, tests, packages, and prepares products for delivery.

Answers

Answer:

Supply chain execution system

Explanation:

supply chain execution system

Serena and Venus are sisters. Venus sold stock to Serena for $5,000, its fair market value. The stock cost Venus $10,000 five years ago. Also, Venus sold Carol (an unrelated party) stock for $2,000 that cost $10,000 three years ago. What is Venus' recognized loss before the $3,000 capital loss limitation?

Answers

Based on the information given the Venus' recognized loss before the $3,000 capital loss limitation is $8,000.

Using this formula

Recognized loss=Stock cost-Selling price

Where:

Stock cost=$10,000

Selling price=$2,000

Let plug in the formula

Recognized cost=$10,000-$2,000

Recognized cost=$8,000

Inconclusion the Venus' recognized loss before the $3,000 capital loss limitation is $8,000.

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__________ is any proprietary software licensed under exclusive legal right of the copyright holder.

Answers

Answer:

Closed Source

Explanation:

Closed source is any proprietary software licensed under exclusive legal right of the copyright holder.

The nature of intellectual property laws and how they are enforced is one aspect of a country's _____.

Answers

The aspect of a country making some changes to its intellectual property laws and how they are enforced is based on the:

B. Regulatory practices  

According to the given question, we are asked to state the aspect of a country making some changes to its intellectual property laws and how they are enforced,

As a result of this, we can see that regulatory practices are those things which a country or an organisation does so that some aspects of its functioning system is controlled. With this in mind, we can see that adjusting property laws is an example of a regulatory practise.

Therefore, the correct answer is option C

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Generational Equity refer to: Group of answer choices a. One generation holding more wealth in stocks than debt instruments b. The relationship between taxes and spending at the generational level c. The potential of one generation subsidizing another Both a. and b. Both b. and c.

Answers

Generational equity refers to:

The relationship between taxes and spending at the generational levelThe potential of one generation subsidizing another

The answer to this question is option b and c. The concept has it that different generations have to be treated in similar and equal ways and also the fact that everyone has to have the same opportunities.

The theory explains the tradeoffs that exists between meeting the needs of those that are the elderly and those that are still young.

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Pat Jones is a college student who is planning some networking opportunities for the current l semester. Pat wanted to look
professional for these events and felt a new suit would be a real benefit; however, the cost for the first event ended up being $75 which was a strain on the budget. Pat did not want to attend the remaining three events in the same outfit, so a new strategy was developed. Instead of paying for new suits in cash, Pat decided to charge the suits on a credit card, wear them to the events, and then return them the next day for full credit.

1. Do you feel Pat's new strategy is ethical? Why or why not? Could there be any consequences with this strategy?
2. How will this new strategy impact the company/companies where the suits are purchased?
3. What journal entry/entries would the company have to record related to the return of the suit?

Answers

Answer:

1. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.

2. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.

3. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.

Explanation:

What is the MOST LIKELY reason for increase in the pricce of a specific stock?

Answers

Answer:

The item becomes too popular and starts to run out.

If the demand for the product is increasing while the supply is not.

Sometimes, the market research we do for product development and the message testing we do for ad campaigns yield surprising results. Which positioning statement was most surprising for NOT yielding the highest AWARENESS with our target segment

Answers

The positioning statement that was most surprising for NOT yielding the highest AWARENESS with our target segment is C. Eco-friendly.

Before embracing the Eco-friendly positioning statement, the company has to show that it was not just adopting a marketing strategy that does not resonate with its internal environment.

In this regard, an Eco-friendly positioning statement should ensure that the company:

Lives the Eco-friendly promise and become a leader in the Eco-friendly movement.Creates an Eco-friendly message from the inside out.Participates in community Eco-friendly outreach programs.

Question Options:

A. Fashionable

B. Cutting Edge

C. Eco-friendly

Thus, perhaps for failing to live the Eco-friendly mantra, the target segment did not show the highest awareness.

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Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Alo expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows:
Regular Model Deluxe Model Total Sales
$13,500,000 $12,240,000 $25,740,000
Less: Variable costs 8,100,000 7,344,000 15,444,000
Contribution margin $5,400,000 $4,896,000 $10,296,000
Less: Direct fixed costs 1,200,000 960,000 2,160,000
Segment margin $4,200,000 $3,936,000 $8,136,000
Less:Common fixed costs 1,500,800
Operating income $6,635,200
Required:
1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit. Regular models units Deluxe models units
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than whole percentage.) Round the amount of revenue to the nearest dollar.

Answers

1. The break-even points in sales units are computed as follows:

Break-even point (in units) = Direct fixed cost/contribution margin per unit

Regular model = 20,000 units ($1,200,000/$60)

Deluxe model = 3,529 units ($960,000/$272)

2. The Alo Company's Sales revenue to break-even, company-wide, is computed as follows:

Sales Revenue at break-even point:

= Fixed costs/Contribution margin ratio

= $3,660,800/40%

= $9,152,000

Data and Calculations:

                                         Regular Model   Deluxe Model           Total

Expected sales quantity             90,000               18,000             108,000

Sales                                    $13,500,000     $12,240,000     $25,740,000

Less: Variable costs               8,100,000         7,344,000        15,444,000

Contribution margin           $5,400,000       $4,896,000     $10,296,000

Less: Direct fixed costs         1,200,000            960,000         2,160,000

Segment margin                $4,200,000       $3,936,000       $8,136,000

Less:Common fixed costs                                                         1,500,800

Operating income                                                                  $6,635,200

Selling price per unit                  $150                   $680 ($12,240,000/18,000)

Variable costs per unit                $90                   $408 ($7,344,000/18,000)

Contribution margin                    $60                   $272 ($680 - $408)

Contribution margin ratio for the company = 40% ($10,296,000/$25,740,000 x 100)

Company total fixed costs = $3,660,800 ($2,160,000 + $1,500,800)

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Jorge knows his employees are wrestling with complex decisions, and he uses __________________ to empower them to discuss alternatives with one another until they reach consensus about the best action to take.

a. communication apprehension
b. a centralized network
c. a decentralized network
d. nonverbal communication

Answers

Answer:

c. a decentralized network

Explanation:

HOMEWORK HELP

OOH is an acronym for the
published by the U. S. Bureau of Labor Statistics?

A: Occupational Outreach Handbook

B: Outlook/Outreach Handbook

C: Occupational Outlook Handbook

D: Open Occupation Handbook

Answers

The answer is: C - Occupational Outlook Handbook

Answer:

C) Occupational Outlook Handbook

Explanation:

Suppose that you are evaluating the option of increasing the advertising exposure by using an alternative medium. If you invest $2 million towards this, % exposed will increase from 75% to 80%. Your total market comprises of 5 million customers. Assuming that everything else would remain unaltered after this change and that each customer buys one unit only. What will be the effect of the change on unit sales?
A. 41,202 more units sold.
B. 14,715 less units sold.
C. 14,715 more units sold.
D. 41,202 less units sold.
E. 220,725 units.

Answers

The answer to this question will be C
B. 14,715 less units sold. Hope this helps

One form of long-term team that is increasingly being used, especially in lean production settings, is: quality circle. product design. self-directed. self-improvement. mandatory.

Answers

The long-term team that can be attributed to settings especially lean production settings is self-directed.

A self-directed team can be regarded as individuals that comes together in an organization, and they have various talents as well as abilities to work toward a common goal.

In this settings there might not be a  standard administrative oversight and this is what is common in lean production settings.

Therefore, option C is correct.

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Your company repairs household appliances such as microwaves, dishwashers, and clothes dryers. Your manager, Naomi, is excited about the potential for social media to drive organizational performance. She is considering a number of possible projects, and she asks your advice about how to use social media appropriately.

Which of the following could be a good social media initiative for our company?

a. Use Twitter to post news of product recalls and safety tips for customers, such as the importance of getting safety checks for furnaces and water heaters each fall.
b. Start an internal company blog to post news about impending layoffs and merger discussions.

Answers

Answer:

a. Use Twitter to post news of product recalls and safety tips for customers, such as the importance of getting safety checks for furnaces and water heaters each fall.

Explanation:

Using Twitter to keep people up-to-date on important information would be an excellent way to demonstrate expertise and build brand loyalty with customers and potential customers. Imagine tweeting that a popular dishwasher model has been recalled because it may start fires—a lot of people would probably retweet that to alert their friends.

Information about possible layoffs and a merger is sensitive because these changes will affect people’s livelihoods. This information is best communicated via a richer channel than a blog. The sender and receiver should have the opportunity to use and observe body language, and communications should be more personally directed.

Mr. and Mrs. Alvarez paid $130,000 for their home 30 years ago. They recently sold this home and moved into a rented apartment. Describe the tax consequences of the sale assuming that the amount realized was: $125,000 $450,000 $850,000

Answers

The tax consequences faced by Mr. and Mrs Alvarez for the sale of their home are as follows:

a. They have a realized loss of $5,000 for situation A.

b. They have a realized gain of $320,000 for situation B.

c. They have a realized gain of $720,000 for situation C.

Data and Calculations:

Cost of the home 30 years ago =$130,000

a. Realized capital loss = $5,000 ($130,000 - $125,000)

b. Realized capital gain =$320,000 ($450,000 - $130,000)

c. Realized capital gain = $720,000 ($850,000 - $130,000)

Thus, Mr. and Mrs. Alvarez can also claim the full $500,000 exemptions to reduce their capital gain tax burdens in the three situations since they inhabited the home for more than two years.  However, their exemptions are limited to the net gain.

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