Business

Last month when Holiday Creations, Inc., sold 41,000 units, total sales were $282,000, total variable expenses were $214,320, and fixed expenses were $36,900. Required: 1. What is the companys contribution margin (CM) ratio? 2. What is the estimated change in the companys net operating income if it can increase total sales by $1,700? (Do not round intermediate calculations.)
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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.5 ounces $ 8.00 per ounce $ 60.00 Direct labor 0.9 hours $ 19.00 per hour $ 17.10 Variable overhead 0.9 hours $ 8.00 per hour $ 7.20 The company reported the following results concerning this product in June. Originally budgeted output 2,900 units Actual output 2,500 units Raw materials used in production 19,500 ounces Purchases of raw materials 22,400 ounces Actual direct labor-hours 4,700 hours Actual cost of raw materials purchases $ 41,400 Actual direct labor cost $ 12,900 Actual variable overhead cost $ 3,450 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is: Multiple Choice $1,386 U $6,000 U $6,000 F
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A $500,000 bond issue sold at 98. Therefore, the bonds: Multiple Choice Sold at a premium because the stated rate of interest was higher than the yield rate. Sold at a discount because the stated rate of interest was lower than the effective rate. Sold at a discount because the effective interest rate was lower than the face rate. Sold for the $500,000 face amount less $10,000 of accrued interest.
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For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $91,000 and $3,000, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $413,000 and $417,000, respectively, and $3,690 in accounts receivable were written off. Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, is:
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During 2022, Crane Company entered into the following transactions. 1. Purchased equipment for $310,720 cash. 2. Issued common stock to investors for $138,050 cash. 3. Purchased inventory of $68,620 on account.Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the right-hand margin.Assets = Liabilities + Stockholders' Equity Cash + Inventory + Equipment = Accounts Payable + Common Stock + Retained Earnings(1)(2)(3)
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Journalizing Sales Transactions Enter the following transactions in a general journal. Use a 6% sales tax rate. May 1 Sold merchandise on account to J. Adams, $2,000 plus sales tax. Sale No. 488. 4 Sold merchandise on account to B. Clark, $1,800 plus sales tax. Sale No. 489. 8 Sold merchandise on account to A. Duck, $1,500 plus sales tax. Sale No. 490. 11 Sold merchandise on account to E. Hill, $1,950 plus sales tax. Sale No. 491. If an amount box does not require an entry, leave it blank.
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when should an event programing be used
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The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. prepaid insurance bonds payableItem Classification1. Current portion of long-term debt. 2. Notes payable (due in 6 to 11 months). 3. Sales taxes payable. 4. Bonus payable (to be paid in 60 days) 5. Warranty liability (6 months of coverage) 6. Prepaid Insurance (6 months of coverage) 7. Notes payable (due in 120 days). 8. Salaries payable. 9. Pension liability (to be fully paid to retired employees in next 11 months) 10. Bonds payable (due in 2 years)
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The SML helps determine the risk-aversion level among investors. The higher the level of risk aversion, the ____________ the slope of the SML. Which of the following statements best describes the shape of the SML if investors were not at all risk averse?a. The SML would have a positive slope, but the slope would be flatter than it would be if investors were risk. b. The SML would be a horizontal line. c. The SML would have a positive slope, but the slope would be steeper than it would be if investors were risk averse. d. The SML would have a negative slope.
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A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in outstanding credit card balances, $500 in government securities, $10 in currency in its vault, and $20 in deposits at the Fed. The bank's deposits that are part of M1 are equal to
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Find two cases of life insurance fraud. Write a paragraph for each one explaining the details given. (how was the fraud committed, what was the purpose, how the person was caught, what happened as a result, etc.) Next, find one case of health insurance fraud and look up the same information.
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The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Cost Item Estimated Unit Cost Direct material $ 32 Direct labor 20 Variable manufacturing overhead 15 Fixed manufacturing overhead 6 Variable selling expenses 3 Fixed selling expenses 4 What are the estimated conversion costs per unit?
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Bentwood Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work-in-process inventory: Units in beginning work-in-process inventory 1,700 Materials costs $32,300 Conversion costs $18,700 Percent complete with respect to materials 70% Percent complete with respect to conversion 25% Units started into production during the month 8,900 Units transferred to the next department during the month 7,700 Materials costs added during the month $154,600 Conversion costs added during the month $253,900 Ending work-in-process inventory: Units in ending work-in-process inventory 2,900 Percent complete with respect to materials 80% Percent complete with respect to conversion 35%The cost per equivalent unit for conversion costs for the first department for the month is closest to:____.a. $29.33. b. $29.00. c. $31.78. d. $35.51.
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Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $23 per unit. The companys monthly fixed expense is $9,500. Required: 1. Calculate the companys break-even point in unit sales. 2. Calculate the companys break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
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View Policies Current Attempt in Progress Ivanhoe, Inc. had pre-tax accounting income of $1700000 and a tax rate of 20% in 2021, its first year of operations. During 2021 the company had the following transactions: Received rent from Jane, Co. for 2022 $86000 Municipal bond income $110000 Depreciation for tax purposes in excess of book depreciation $50000 Installment sales profit to be taxed in 2022 $152000 At the end of 2021, which of the following deferred tax accounts and balances exist at December 31, 2021a) $419,400b) $471,600c) $594,000d) $504,900
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Suppose you are the lead underwriter for a start-up company. The company plans to sell 10 million shares at the price of $46 per share. It also provides you an over-allotment option of 1.5 million additional shares. Recent road show estimates demand to be around 20 million shares at $46. There is lots of uncertainty about how the stock will perform after trading starts. Consider the following decisions. 18. Before the trading starts tomorrow, you need to allocate (sell) a number of shares to the institutional investors now at the IPO price. How many shares will you allocate
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If you use a check to pay your monthly rent, A. the check is not money because it is not part of M1. B. you have used money because the landlord accepted it as a means of payment. C. the check is considered money because you received something in return. D. the check becomes money when it arrives at the landlord's bank. E. the check is not money because it is just an instruction to your bank to make a payment
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The Tangier Company is considering eliminating the following product line: Product AXP Sales $ 49,000 Less variable costs: Raw materials 29,500 Direct labor 8,600 Contribution margin $ 10,900 Less fixed costs: Production costs allocated to products 16,800 Profit (Loss) $ (5,900 ) What amount of cost is avoidable if Tangier outsources production of this product
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Westerly Inc. is a publicly traded company that generated $1000 million in operating income in the most recent year, after taking a depreciation charge of $200 million. The company had capital expenditures of $500 million during the year and its working capital increased by $120 million. If the effective tax rate for the company was 40% for the year, what is the FCFF (Free Cash flow to the Firm) for the most recent year
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With perfect price discrimination, the marginal revenue curve A) is equal to the demand curve. B) is below the demand curve. C) is above the demand curve. D) is horizontal.
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nswer the question on the basis of the following cost data. Output Average Fixed Cost Average Variable Cost 1 $50.00 $100.00 2 25.00 80.00 3 16.67 66.67 4 12.50 65.00 5 10.00 68.00 6 8.37 73.33 7 7.14 80.00 8 6.25 87.50 If the firm closed down in the short run and produced zero units of output, its total cost would be Multiple Choice $0. $50. $150. $100.
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Two companies, A and B, both have $1 million in assets, earnings before interest and taxes (EBIT) of $160,000, and the same tax rate. Company A is all equity financed, and Company B is 50% debt financed and 50% equity financed. If Company B's pretax cost of debt is 8%, then Company A will have a ROA that is _____ and a ROE that is _____ than Company B's. a. Option D b. Option C c. Option B d. Option A
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The pros and cons of new product concepts are analyzed during the idea generation phase of new product development.TrueFalse
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How does the fractional reserve system increase the money supply in a country?A. By giving banks the authority to print their own money in an economic emergencyB. By using deposited money to make loans without reducing the value of the depositsC. By automatically converting foreign currencies into U.S. dollars on depositD. By guaranteeing that all deposits are held in reserve as cash at all times
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