Scarcity occurs when supply exceeds demand.
True of False

Answer:

Ordering and receiving = $7.35 per order

Food processing = $8.49 per machine hour

Packaging = $3.84 per labor hour

Explanation:

According to the scenario, computation of the given data are as follows,

We can calculate overhead rate by using following formula,

Overhead Rate = Estimated Overhead ÷ Estimated Use of Cost Drivers per Activity

So, by putting the value in the formula, we get

Overhead rate of Ordering and receiving = $117,600 ÷ 16,000 = $7.35 per order

Overhead rate of Food processing = 530,625 ÷ 62,500 = $8.49 per machine hour

Overhead rate of Packaging = 1,701,120 ÷ 443,000 = $3.84 per labor hour

Answer:

                                        NIKE, INC.

               Partial Balance Sheet as of May 31, 2022

                                                                            (in millions)

Property, Plant and Equipment

Land                                                                          $220.0

Buildings                                                  $980.0

Machinery and Equipment                     $2160.0

Other Plant Assets                                  $935.0

Less: Accumulated Depreciation          $2200.0   $1875.0

Total Property, Plant and Equipment                    $2095.0

Intangible Assets:

Goodwill                                                                    $210.0

Patents and Trademarks                         $510.0

Less: Accumulated Amortization            $50.0       $460.0

Total Intangible Assets                                            $670.0

Answer:

The interest saved is $49569.228 or $49569.

Explanation:

Total price of Condominium=$256,000

Downpayment=30% of total price=30%x$256,000= 76800

Amount Financed=Total Payment-Downpayment

Amount Financed=256000-76800=179200

Annual Interest rate=3.05%

Monthly interest rate =[tex]\frac{3.05\%}{12}[/tex]=0.25146%

The montly installment is calculated as follows:

[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}[/tex]

Here

Case 1 when the number of years is 30.

So the equation becomes

[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{0.25146}{100}}\right)^{30*12}}{\dfrac{0.25146}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+0.0025146}\right)^{30*12}}{0.0025146}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1.0025146}\right)^{30*12}}{0.0025146}}\\\\M=\dfrac{179200\times {0.0025146}}{1-\left(\dfrac{1}{1.0025146}\right)^{30*12}}\\M=\dfrac{450.61632}{0.59510 }\\M=\$757.2087[/tex]

So the total amount paid in installments is

[tex]T=M\times n\times t[/tex]

So the equation becomes

[tex]T=M\times n\times t\\T=757.2087\times 30\times 12\\T=\$272595.132[/tex]

So the interest is given as

[tex]I=T-P\\I=272595.132-179200\\I=\$93395.132[/tex]

So a total interest of $93395.132 is paid when the amount is financed for 30 years.

Case 2 when the number of years is 15.

So the equation becomes

[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{0.25146}{100}}\right)^{15*12}}{\dfrac{0.25146}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+0.0025146}\right)^{15*12}}{0.0025146}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1.0025146}\right)^{15*12}}{0.0025146}}\\\\M=\dfrac{179200\times {0.0025146}}{1-\left(\dfrac{1}{1.0025146}\right)^{15*12}}\\M=\dfrac{450.61632}{0.36368 }\\M=\$1239.0328[/tex]

So the total amount paid in installments is

[tex]T=M\times n\times t[/tex]

So the equation becomes

[tex]T=M\times n\times t\\T=1239.0328\times 15\times 12\\T=\$223025.904[/tex]

So the interest is given as

[tex]I=T-P\\I=223025.904-179200\\I=\$43825.904[/tex]

So a total interest of $43825.904 is paid when the amount is financed for 15 years.

The savings on interest if the condominium is financed for 15 years is given as

[tex]S=I_{30}-I_{15}\\S=93395.132-43825.904\\S=49569.228[/tex]

The interest saved is $49569.228 or $49569.

Answer:

No, a room attendant should not share information with others about a guest if he/she thinks what the guest is doing is morally wrong.

Explanation:

Morality is a subjective issue. Even at that, what may be morally wrong can still be legal. Hence, there is no reason for a room attendant to share information with others about a guest if he/she thinks what the guest is doing is morally wrong.

For example, smoking shisha or drinking alcohol may be morally wrong to a room attendant, but it is legal for the guest to do in a guest house or hotel, hence the guest is within his rights to do so. Therefore, there is no need for a room attendant to inform others in as much it is legal.

Answer:

License: legal permission to work granted by the government

Associated degree: general two-year college-level degree

Career college: a one or two-year program ending with a certificate

Bachelor's degree: four-year college level degree

Apprenticeship: an on-the-job training experience

Explanation:

License:    legal permission to work granted by the government

Associated degree:     general two-year college-level degree

Career college also called vocational school:      a one or two-year program ending with a certificate

Bachelor's degree:    four-year college level degree

Apprenticeship:    an on-the-job training experience

Answer:

market forces would shift upwards or downwards

Explanation:

during a situation of high demand, supply would shift to the right in order to achieve more sales or in a situation of high supply the demand can be shifted to the right by decreasing prices. At low supply demand can be shifted leftwards by increasing prices and when demand is lower, supply falls due to lower sales

Market factors would change to the upside or downside would act to return the market to state of equilibrium at the new equilibrium position.

When economic forces are in balance, there is said to be an economic equilibrium. In the absence of outside influences, economic variables essentially hold true to their equilibrium levels. Market equilibrium and economic equilibrium are two different concepts.

The set of economic factors that the economy is normally driven toward by supply and demand and other conventional economic processes is known as economic equilibrium.

The concept of economic equilibrium can also be used to describe a wide range of elements, including interest rates or overall consumer spending.

The point of equilibrium denotes a theoretical state of rest where all economic activities that "should" occur have actually happened, given the initial conditions of all significant economic variables.

Economists who think of economic processes as akin to physical phenomena like velocity, friction, heat, or fluid pressure draw the notion of equilibrium from the physical sciences. Nothing else changes once a system's physical forces are in equilibrium.

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Answer:

1. Cutting $1.80 per machine hour

Design $390 per setup

2. Wool product line $627,000

Cotton Product line $412,500

3. Overhead rate $2.10

4. Wool Product line $519,750

Cotton Product line $519,750

Explanation:

1. Calculation to determine the overhead rate using activity based costing.

Overhead rate using the activity based costing

Cutting = Overhead / Total Machine hours

= $396,000 / 220,000

= $1.80 per machine hour

Design = Overhead / Number of setups

= $643,500 / 1,650

= $390 per setup

2. Calculation to determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing

Overhead allocated to the wool product line and the cotton product line

Wool product line = (110,000 * $1.80) + (1,100 * $390)

Wool product line= $198,000 + $429,000

Wool product line= $627,000

Cotton Product line = (110,000 * $1.80) + (550 * $390)

Cotton Product line= $198,000 + $214,500

Cotton Product line= $412,500

3.Calculation to determine the overhead rate using traditional approach.

Overhead rate using traditional approach

Overhead rate = Total Overhead / Direct labor hours

Overhead rate= $1,039,500 / 495,000

Overhead rate= $2.10

4. Calculation to determine What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach

Overhead allocated using the traditional method

Wool Product line = $1,039,500 / 2

Wool Product line= $519,750

Cotton Product line = $1,039,500 / 2

Cotton Product line= $519,750

Answer:

Explanation:

Given:

Short-run price elasticity = - 0.85

Long-run price elasticity = - 3.2

Cross-price elasticity = - 0.26

Income elasticity = 0.75

a. If the theater raises movie ticket prices by 10 percent it means that percentage of price change is 10%.

[tex]Elasticity = \frac{Percentage change in Quantity demanded}{Percentage change in price} \\\\-0.85 = \frac{Percent change in Quantity demanded\\}{10} \\\\Percent change in Quantity demanded = -0.85*10\\ \\ = -8.5[/tex]

Thus, quantity demanded falls by 8.5 percent.

b. Short-run price elasticity is different from long-run elasticity due to the time horizon. When individuals have more time they can switch to cheaper alternatives. While, it takes time to adjust in the short-run as the time horizon is not much. So short-run elasticity is less elastic than in the long-run.

c.

In the long-run demand for movie tickets is very elastic. So as price rises in the long-run, quantity demanded falls by a greater proportion. This will cause total revenue to fall in the long-run.

d. Normal goods are goods which have a positive income elasticity. This means for normal goods demand increases as income increases. But in case of inferior goods, demand is inversely related to income. As income rises demand for inferior goods decreases.

Since in this case, income elasticity is 0.75 (positive) it can be concluded that movie tickets are normal goods.

e. Good X is the related good to movie tickets. As cross price elasticity is -0.26 it means that as price of movie tickets rises by 1 percent demand for good X will fall by 0.26 percent.

Thus, as demand for good X and price of movie tickets are inversely related to each other it can be said that they are complementary goods.

If the price of movie tickets are increased by 10%, quantity demanded would increase by 8.5%.

b. The short run elasticity of demand differs from the long run elasticity of demand because in the short run there is limited time to search for suitable suitable alternatives for movies.

c. If the price of  movie tickets are increased revenue would decline because demand is elastic.

d. Movie tickets are a normal good. This is because its coefficient of elasticity is greater than zero.

e. If the price of  movie tickets are increased, the demand for good X would decline. This is because the two goods are complements.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one.

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls. Inferior goods are goods whose demand falls when income rises and increases when income falls.

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Answer:

potential customers who recently purchased camping equipment and four-wheel drive trucks.

Explanation:

Answer:

c. $139,000 of net cash used.

Explanation:

Investing Activities shows results from Purchase or Sales of Assets or Investments.

Cash flow from Investing Activities

Purchase of equipment                                  (150,000)

Proceeds from the sale of equipment            131,000

Purchase of land                                             (120,000)

Net Cash used by Investing Activities           (139,000)

Net cash flows from investing activities for the year were: ($139,000)

Answer:

The adjustments made are as attached in the excel sheet. As the goods are entered prior to shipment in the first item, the inventory control variation is to be made.

Explanation:

As the goods are shipped before taking the physical inventory, the inventory control is not made. As the shipment got prior to the physical inventory, the control amount is credited. However, the auditee credited Inventory Control for the cost of these goods on December 16, one of these two credits must be removed.

For the third item, similar situation happened where the inventory control is made.

Answer:

The answer is "5.4% and 15,23,500".

Explanation:

Calculating the capital cost:

[tex]=(1-\frac{1}{1.46})\times 10.91\% \times (1-39\%)+(\frac{1}{1.46})\times 4.84\% \\\\=(\frac{1.46-1}{1.46})\times \frac{10.91}{100} \times (\frac{100-39}{100})+(\frac{1}{1.46})\times \frac{4.84}{100} \\\\ =(\frac{0.46}{1.46})\times \frac{10.91}{100} \times (\frac{61}{100})+(\frac{1}{1.46})\times \frac{4.84}{100} \\\\=\frac{306.1346}{14600}+\frac{4.84}{146} \\\\= 0.021+0.033 \\\\ =0.054\\\\= 5.4\%[/tex]

Maximum amount to be spent

[tex]=\frac{277,000\times 100 }{5.4} \times (1-\frac{1}{(1.054)^7})\\\\=\frac{277,000\times 100 }{5.4} \times (1-\frac{1}{1.44})\\\\=\frac{277,000\times 100 }{5.4} \times (1-0.7)\\\\=277,000 \times 100\times 0.055\\\\=\$15,23,500\\[/tex]

Question Completion:

November 16 - Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals.

Answer:

Aston Martin, Inc.

Apr. 15 Debit Cash $225,000

Credit 6% Notes payable (Audi Company) $225,000

To record the amount borrowed by issuing a 30-day 6% note.

May 1. Debit Equipment $320,000

Credit 6% Notes Payable (Spyder Manufacturing Co.) $320,000

To record the purchase of equipment by issuing a $320,000, 180-day note at the rate of 6%.

May 15. Debit Interest expense $1,125

Credit Cash $1,125

To record the payment of interest on note.

May 15 Debit 6% Notes payable (Audi Company) $225,000

Credit 8% Notes payable (Audi Company) $225,000

To record the exchange of notes, by issuing a new 60-day, 8% note for $225,000

July 14 Debit 8% Notes payable (Audi Company) $225,000

Credit Interest expense $3,000

Credit Cash $228,000

To record the full settlement of note with interest.

Aug. 16. Debit Inventory $90,000

Credit Accounts payable (Exige Co.) $90,000

To record the purchase of merchandise on account, terms, n/30.

Sept. 15. Debit Accounts payable (Exige Co.) $90,000

Credit 6% Note Payable (Exige Co.) $90,000

To record the settlement of account by issuing a 45-day, 6% note to Exige Co.

Oct. 28. Debit 6% Notes Payable (Spyder Manufacturing Co.) $320,000

Debit Interest expense $9,600

Credit Cash $329,600

To record the settlement of notes with interest.

30. Debit 6% Note Payable (Exige Co.) $90,000

Debit Interest Expense $675

Credit Cash $90,675

To record the settlement of notes with interest.

November 16 Debit Store equipment $450,000

Credit 9% Note payable (Gallardo Co.) $400,000

Credit Cash $50,000

To record the issuing of a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals.

Dec. 16. Debit 9% Note payable (Gallardo Co.) $20,000

Debit Interest expense $3,000

Credit Cash $23,000

To record the settlement of the first note with interest on all the notes.

Dec. 28. Debit Litigation Claims Loss $87,500

Credit Litigation Claims Payable $87,500

To record the litigation loss.

Explanation:

a) Data and Calculations:

Apr. 15 Cash $225,000 6% Notes payable (Audi Company) $225,000

, issuing a 30-day 6% note for that amount.

May 1. Equipment $320,000 6% Notes Payable (Spyder Manufacturing Co.) $320,000 by issuing a $320,000, 180-day note at the rate of 6%.

15. Interest expense $1,125 Cash $1,125

6% Notes payable (Audi Company) $225,000 8% Notes payable (Audi Company) $225,000

issuing a new 60-day, 8% not for $225,000

July 14. 8% Notes payable (Audi Company) $225,000 Interest expense $3,000 Cash $228,000

Aug. 16. Inventory $90,000 Accounts payable (Exige Co.) $90,000

, terms, n/30.

Sept. 15. Accounts payable (Exige Co.) $90,000 6% Note Payable (Exige Co.) $90,000 Issued a 45-day, 6% not for $90,000 to Exige Co., on account.

Oct. 28. 6% Notes Payable (Spyder Manufacturing Co.) $320,000 Interest expense $9,600 Cash $329,600

30. 6% Note Payable (Exige Co.) $90,000 Interest Expense $675 Cash $90,675

November 16 - Store equipment $450,000 9% Note payable (Gallardo Co.) $400,000 Cash $50,000

issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals.

Dec. 16. 9% Note payable (Gallardo Co.) $20,000 Interest expense $3,000 Cash $23,000

28. Litigation Claims Loss $87,500 Litigation Claims Payable$87,500

Explanation:

The expectancy theory is an interesting theory of motivation. This theory believes that people, in general, behave the way they do in a certain way because they are motivated to achieve a common objective.

Since the main focus here is to read the motivation report and help Matt write an e-mail that will motivate Jayden. Remember, we are told he is motivated by learning new things, hence a sample email could read;

Hi, Jayden I would like to commend you for the work you do here at the company, you are truly one of our best employees. I would assign you to a new role at the company, and there is a possibility of reassigning you to better roles in the future.

Answer:

A

Explanation:

Answer:

Explanation:

a)

The purpose of Criminal Investigation Division, or popularly called the CI Division is to be able investigate tax related frauds, to bring to justice citizens who one way or the other do not file tax returns m(whether or not this is intentional) or those who refuse to pay their taxes or do not play complete taxes. Remember, paying of taxes is the civic responsibility of citizens. CI also looks into other cases that are related to money laundering crimes.

c)

One of the major requirements is a bachelor's degree and a minimum of at least three years of experience in high-level investigative work or even in criminology. This is what is required.

Answer:

$699,200

Explanation:

According to the scenario, computation of the given data are as follows,

After tax income = $15,200,000

Amount in account = 0.5% × $15,200,000 = $76,000

Time period = 7 years

inflation = 5%

Interest rate = 9%

So, Total amount after 7 years = $76,000 × (F/A, 9%, 7)

= $76,000 ×[ [tex]((1+.09)^{7}-1 )[/tex] ÷ .09]

= $76,000 × [.82803912082 ÷ .09]

= $76,000 × 9.2

= $699,200

Answer:

Whispering Winds Corp.

Journal Entries:

Jan. 5 Debit Cash $20,520

Credit Sales Revenue $19,000

Credit Sales Taxes Payable $1,520

To record the sale of goods for cash, including 8% sales tax.

Jan. 12 Debit Unearned Service Revenue $11,500

Credit Service Revenue $11,500

To record service revenue earned.

Jan. 14 Debit Sales Tax Payable $8,800

Credit Cash $8,800

To record the payment of December Sales Taxes.

Ja. 20 Debit Accounts Receivable $48,600

Credit Sales Revenue $45,000

Credit Sales Taxes Payable $3,600

To record the sale of goods on credit, including sales tax of 8%.

Jan. 21 Debit Cash $22,500

Credit 8% Notes Payable (Girard Bank) $22,500

To record the borrowing of cash for a 3-month, 8%, note.

Jan. 25 Debit Cash $12,420

Credit Sales Revenue $11,500

Credit Sales Taxes Payable $920

To record the sale of goods for cash, including 8% sales tax.

Explanation:

a) Data and Calculations:

Liability account balances:

Accounts Payable              $56,000

Sales Taxes Payable              8,800

Unearned Service Revenue 16,100

Analysis of January transactions:

Jan. 5 Cash $20,520 Sales Revenue $19,000 Sales Taxes Payable $1,520

Jan. 12 Unearned Service Revenue $11,500  Service Revenue $11,500

Jan. 14 Sales Tax Payable $8,800 Cash $8,800

Ja. 20 Accounts Receivable $48,600 Sales Revenue $45,000 Sales Taxes Payable $3,600

Jan. 21 Cash $22,500 8% Notes Payable (Girard Bank) $22,500 a 3-month, 8%, note.

Jan. 25 Cash $12,420 Sales Revenue $11,500 Sales Taxes Payable $920

Answer:

the employee and company Occupational Privilege Tax for these employees is $92.00 and $64.00 respectively

Explanation:

The computation of the  employee and company Occupational Privilege Tax for these employees is shown below:

The Total amount with held from employees is

= 16 × $5.75

= $92.00

And, the total amount to be paid by the employer is

=16 × $4.00

= $64.00

hence, the employee and company Occupational Privilege Tax for these employees is $92.00 and $64.00 respectively

The same is relevant

Answer:

$181,768.65

Explanation:

Post-money valuation = Exit value / (1 + Required return)^years

Post-money valuation = $307,000 / (1+14%)^4

Post-money valuation = $307,000 / (1.14)^4

Post-money valuation = $307,000 / 1.68896016

Post-money valuation = $181768.6451526482

Post-money valuation = $181,768.65

So, the post-money valuation of the company is $181,768.65.

Answer:

Project X = $6,980.82

Project Y = - $2,478.42

Explanation:

The Present value is the price today of future cash flows and is calculated as follows :

Project X

($21,000) CF 0

$8,000    CF 1

$8,000    CF 2

$8,000    CF 3

$8,000    CF 4

$8,000    CF 5

$8,000    CF 6

I/YR = 18%

Therefore, NPV is $6,980.82

Project Y

($21,000) CF 0

$0    CF 1

$0    CF 2

$0    CF 3

$0    CF 4

$0    CF 5

$50,000    CF 6

I/YR = 18%

Therefore, NPV is - $2,478.42

Answer:

false

Explanation:

They have to not only teach you but discipline you

Answer:

Lease Equipment $150,000

BUY EQUIPMENT$134,700

Differential Effects-$15,300

The company should choose BUY EQUIPMENT which is Alternative 2

Explanation:

Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment

Differential Analysis

Lease (Alt. 1) or Buy (Alt. 2) Equipment

March 15

Lease Equipment (Alternative 1); Buy Equipment

(Alternative 2); Differential Effects (Alternative 2)

Costs:

Purchase price $0 $120,000 $120,000

Freight and installation $0 $1,500 $1,500

Repair and maintenance (6 years) $0 $13,200.$13,200

($2,200*6=$13,200)

Lease (6 years) $150,000 $0 -$150,000

($25,000*6)

Total costs $150,000 $134,700 -$15,300

Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2

Answer:

Hanna Corporation

a. Journal entries that Hanna Corporation would make on January 3 and December 31, 2020 to record this lease assuming:

i. the lease is reported as an operating lease:

January 3, 2020: No journal entry

December 31, 2020:

Debit Lease Expense $12,000

Credit Cash $12,000

To record the payment for the operating lease.

ii. the lease is reported as a finance lease:

January 3, 2020:

Debit Right to Use Asset $57,198.48

Credit Lease Liability $57,198.48

To recognize the right to the leased asset and establish the related liability.

December 31, 2020:

Debit Lease Liability $7,996,11

Debit Interest Expense $4,003.89

Credit Cash $12,000

To record the payment for the lease liability and interest expense.

b. T-accounts;

Operating lease:

Cash Account

Date                  Account Titles     Debit      Credit

Dec. 31, 2020   Lease Expense                $12,000

Lease Expense

Date                  Account Titles     Debit      Credit

Dec. 31, 2020   Cash                 $12,000

Finance Lease:

Right to Use Asset

Date                  Account Titles     Debit      Credit

Jan. 3, 2020     Lease Liability   $57,198.48

Lease Liability

Date                  Account Titles        Debit      Credit

Jan. 3, 2020     Right to Use Asset              $57,198.48

Dec. 31, 2020   Cash                   $7,996.11

Cash Account

Date                  Account Titles     Debit      Credit

Dec. 31, 2020   Lease Liability                $7,996.11

                         Interest Expense          $4,003.89

Interest Expense

Date                  Account Titles     Debit      Credit

Dec. 31, 2020   Cash            $4,003.89

c. Financial Statement Effects:

              Balance Sheet                Income Statement           Statement of

Assets  = Liabilities + Equity  Revenue-Expenses=Profit                                                                                            

a. Cash -$12,000

= Liabilities + Equity (Retained               -$12,000        Operating activity

   Earnings - $12,000)                                                    $12,000

b. Assets +$57,198.48

= Liabilities +$57,198.48

Cash -$12,000

= Liabilities -$7,996,11 + Equity        -$4,003.89               Operating activity

(Retained earnings -$4,003.89)                                        $4,003.89

Explanation:

a) Data and Calculations:

Lease for a manufacturing machine:

Annual lease payment = $12,000

Lease period = 6 years

Lease date = January 3, 2020

First payment date = December 31, 2020

Relevant interest rate = 7%

From an online financial calculator:

N (# of periods)  6

I/Y (Interest per year)  7

PMT (Periodic Payment)  12000

FV (Future Value)  0

Results

PV = $57,198.48

Sum of all periodic payments $72,000.00

Total Interest $14,801.52

Payment Schedule

Period      PV                   PMT           Interest          FV

1 $57,198.48 $12,000.00 $4,003.89 $49,202.37

2 $49,202.37 $12,000.00 $3,444.17 $40,646.54

3 $40,646.54 $12,000.00 $2,845.26 $31,491.79

4 $31,491.79 $12,000.00 $2,204.43 $21,696.22

5 $21,696.22 $12,000.00 $1,518.74         $11,214.95

6 $11,214.95 $12,000.00 $785.05         $0.00

Answer:

23%

Explanation:

Overage cost(Co) = $0.75

Underage cost(Cu) = $2.50

Service level = Cu/(Co + Cu)

Service level = $2.50 / ($0.75+$2.50)  

Service level = $2.50 / $3.25

Service level = 0.76923077

Service level = 76.92%

So the optimal service level is 77%

Risk of stock-out = 100% - Service level

Risk of stock-out = 100% - 77%

Risk of stock-out = 23%

Answer:

Jani's Flowers and Gifts

1. Jani's Flowers and Gifts

Production Budget for September, October, November, and December for Gift Baskets:

                                            Sept        Oct.       Nov.       Dec.

Estimated sales units          250       200        230       380

Estimated ending inventory 20          23          38          10

Units available for sale       270        223       268       390

Beginning inventory             25          20          23         38

Production required          245          213       245       352

2. Jani's Flowers and Gifts

Direct Materials Purchases Budget

For September, October, and November

                                            Sept        Oct.       Nov.

Fruit (1 pound):

Production requirement     245          213       245

Ending inventory:                  21            25         35

Total needs                        266          238      280

Beginning inventory:            25            21         25

Pounds purchased             241           217      255

Small Gifts (6 items each):

Production requirement   1,470        1,278     1,470

Ending inventory:                383          441        634

Total needs                       1,853        1,719     2,104

Beginning inventory:           441          383        441

Items Purchased               1,412        1,336     1,663

Explanation:

a) Data and Calculations:

                                            Sept        Oct.       Nov.       Dec.       Jan.

Estimated sales units          250       200        230       380        100

Estimated ending inventory 20          23          38          10

Units available for sale       270        223       268       390

Beginning inventory             25          20          23         38           10

Production required          245          213       245       352

Jani's Flowers and Gifts

Direct Materials Purchases Budget

For September, October, and November

                                            Sept        Oct.       Nov.       Dec.

Fruit 1 pound:

Production requirement     245          213       245         352

Ending inventory:                  21            25         35          106

Total needs                        266          238      280         458

Beginning inventory:            25            21         25           35

Pounds purchased             241           217      255         423

Small Gifts 6 items each:

Production requirement   1,470        1,278     1,470       2,112

Ending inventory:                383          441        634      1,899

Total needs                       1,853        1,719     2,104       4,011

Beginning inventory:           441          383        441         634

Items Purchased               1,412        1,336     1,663      3,377

Answer:

Digital Solutions Inc.

Selling and Administrative Expenses Budget for October:

Sales volumes                   $500,000    $750,000     $1,000,000

Selling expenses:

Sales commissions 6%         $30,000       $45,000         $60,000

Advertising expense 14%       70,000        105,000          140,000

Customer support expenses:

Fixed                                        18,000          18,000             18,000

Variable 32% of sales          160,000       240,000          320,000

Total selling expenses      $278,000    $408,000        $538,000  

Administrative expenses:

Miscellaneous administrative expense:

Fixed                                         8,500           8,500              8,500

Variable 5% of sales             25,000         37,500            50,000

Office salaries expense       54,000         54,000            54,000

Research and

 development expense      75,000          75,000            75,000

Total administrative exp. $162,500      $175,000        $187,500

Total                                $440,500      $583,000       $725,500

Explanation:

a) Data and Calculations:

Sales commissions 6% of sales

Advertising expense 14% of sales

Miscellaneous administrative expense $8,500 per month plus 5% of sales

Office salaries expense $54,000 per month

Customer support expenses $18,000 per month plus 32% of sales

Research and development expense $75,000 per month

Sales volumes of $500,000, $750,000, and $1,000,000

Sales volumes                   $500,000    $750,000     $1,000,000

Selling and administrative expenses:

Sales commissions 6%       $30,000       $45,000         $60,000

Advertising expense 14%     70,000        105,000          140,000

Miscellaneous administrative expense:

Fixed                                       8,500           8,500              8,500

Variable 5% of sales           25,000         37,500            50,000

Office salaries expense     54,000         54,000            54,000

Customer support expenses:

Fixed                                    18,000          18,000             18,000

Variable 32% of sales      160,000       240,000          320,000

Research and

 development expense   75,000          75,000            75,000

Total                             $440,500      $583,000       $725,500

Answer:

Cost of merchandise  sold = $5

Closing inventory=$16

Gross profit =$20

Explanation:

Under the FIFO system , inventories are priced using the price of the oldest batch in the stock, after which the price of the next oldest batch and this is done in turn. It is based on the principle that the first batch that arrives the store should be issued first.

Using the FIFO method of the perpetual inventory, the 1 unit sold by the company will be priced as follows:

1 units at a price of $5 = 1× $5= $5

Cost of merchandise sold = $5

Closing inventory =  Total cost of golds in stock less the cost of goods sold

                         = 21 - 5= 16

Gross profit = Sales value - cost of goods sold

             = $15-$5= $20

Cost of merchandise  sold = $5

Closing inventory=$16

Gross profit =$20

Answer:

D. Profits and losses will be shared equally.