Answer:
The product is Organic and Inorganic Ice cream.
It will be sold from a high street location.
The focus is on the wholesale market.
The equipment consists of the following:
One unit of pasteuriser linked One unit of homogeniser One unit of cooler One unit of ageing vat One large batch freezerOne unit each of fruit–feeder and a ripple-pumpOne Blast Freezer and One Cold StoreAnother factor is labour. For a small-sized operation like ours, we don't need more than 3 staff:
Production and Quality Control executiveAccounting and Marketing executive and front desk officerThe size of labour is small because the company is small and is focused on wholesalers, not retailers. It also makes for good business sense to keep to a very lean Human Resource structure. Effectiveness and efficiency will be optimised with the use of technology.
Our choice to go wholesale stems from the fact that there is a huge gap for unbranded icecream. Because it is cheaper, people don't mind forgoing the big brands for an equally good cup or bucket of ice cream.
Cheers
Which of the following is an example of internally caused behavior? An employee was laid off because the company was attempting to cut costs by laying off employees. An employee was late for a team meeting because of a heavy downpour. An employee could not come to work because he met with an accident. An employee could not attend an interview because of a delayed flight. An employee was fired from work because he violated a company policy.
Answer:
An employee was fired from work because he violated company policy
Explanation:
One of the factor that determine the behavior of people is the way the event arround them is interpreted. Those that can control things arround them usually take responsibility for what they do compare to set of people believing that situation arround them is beyond their control, which is explained in" attribution theory" by Fritz Heider. Internally caused behavior can be regarded as challenging behavioras a result of internal stimuli such as traits, pain and anxiety.
Out of the options given in the question only "An employee was fired from work because he violated a company policy" is an example of internally caused behavior, since the violation is on the path of the employee which is as a result of internal behavior known to him.
The primary focus for financial accounting information is to provide information useful for: Investing decisions Credit decisions a. Yes Yes b. Yes No c. No Yes d. No
Answer:
a. Yes yes
Explanation:
The primary focus for financial accounting information is to provide useful information to investors for decision making. This is to enable both present and potential investors have prior knowledge and state of affairs of the company or business they want to spend their money on.
However, in the long run, the focus for financial accounting would also include providing useful information for credit decisions. The aforementioned would only occur if a company is able to generate profit hence providing rate of returns to their investors.
Answer:
MAYBE
Explanation:
yes + no = maybe
CF Manufacturing purchased inventory for $5,300 and also paid a $280 freight in bill 2/10, net 30. CF Manufacturing returned 60% of the goods to the seller and paid the bill within the discount period. What is the final inventory cost
Answer: $2357.6
Explanation:
Purchased Inventory = $5300
Less: purchase return = 60% × $5300 = 0.6 × $5300 = $3180
Amount = $2120
Less: purchase discount = 2% × $2120 = 0.02 × $2120 = $42.4
Amount = $2077.6
Add: Freight in: $280
Final Inventory cost = $2357.6
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian ________ and the South Korean ________
Answer: GNP; GDP
Explanation:
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian GNP and the South Korean GDP.
Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.
This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.
Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.
Bob has been investing $4,000 in stock at the end of every year for the past 8 years. If the account is currently worth $45,000, what was his annual return on this investment?a. 10.61%b. 10.91%c. 8.81%d. 9.55%e. 9.07%
Answer:
d. 9.55%
Explanation:
we can use the future value of an annuity formula to calculate Bob's annual return:
future value = annual contribution x FV annuity factor
future value = $45,000
annual contribution = $4,000
FV annuity factor = ?
FV annuity factor = future value / annual contribution = $45,000 / $4,000 = 11.25
FV annuity factor = [(1 + i)ⁿ - 1] / i
11.25 = [(1 + i)⁸ - 1] / i
11.25i = (1 + i)⁸ - 1
solving this problem is really complicated, but there is a much simple way to do it:
e) 11.25 x 0.0907 = (1 + 0.0907)⁸ - 1
1.020375 ≠ 1.0028
d) 11.25 x 0.0955 = (1 + 0.0955)⁸ - 1
1.0744 = 1.0744 ⇒ this option is correct
If there was a 24% chance of having a contract signed to purchase a home in any one month and there were 55 homes on the market, what would be the probability that exactly 15 of them would have a contract signed during this month?
a. 10.3%
b. 24.0%
c. 66.7%
d. 23.0%
Answer:
a. 10.3%
Explanation:
P∝F of Binomial distribution is given as Pr.(x=x) = nCxP^x(1-p)^(n-x)
P = 0.24, n= 55, x =15 Note: C = Combination
Pr.(x = 15) = 55"C"15(0.24)^15(0.76)(55-15)
Pr.(x = 15) = 55"C"15(0.24)^15(0.76)^40
Pr.(x = 15) = 0.1026
Pr.(x = 15) = 10.26%
Pr.(x = 15) = 10.3%
You and your best friend watch the same television commercial together. You think that thespokesperson in the ad is quite humorous. Your friend thinks that the spokesperson is just plain stupid. This is an example of:
Answer:
the creation of different meanings based on social and cultural context.
Explanation:
In our daily interactions with others, we tend to come across people whose values are different from ours. The difference can be attributed to different cultural and social backgrounds. Culture is a people's way of life. This embraces their beliefs, values, religion.
When people have different values, they tend to see things differently. That can account for the reason why a friend would view an ad as humorous, while another would view it as plain stupid.
Preston Corp. is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sells for $1,100. The firm could sell, at par, $100 preferred stock which pays a 5.52 percent annual dividend, but flotation costs of 5 percent would be incurred. Preston's beta is 1.2, the risk-free rate is 3 percent, and the market risk premium is 5 percent. The firm's marginal tax rate is 40 percent. What is Preston's WACC
Answer:
Follows are the solution to this question:
Explanation:
[tex]\text{Equity expense = free risk rate+beta} \times \text{market risk premium}[/tex]
[tex]=3 \% + 1.2 \times 5 \% \\\\= 0.03 + 1.2 \times 0.05 \\\\= 0.03 +0.06 \\\\= 0.09\\\\=9 \%[/tex]
[tex]\text{Preferred inventory cost} = \frac{\text{annual dividend}}{( price - floation \ rate)}[/tex]
[tex]= \frac{(100 \times 5.46 \%)}{(100-100 \times 5 \%)}\\\\=5.75 \%[/tex]
[tex]\text{Excel feature = RATE(nper, PMT, PV, FV)}[/tex]
[tex]=(RATE( \frac{20 \times 2,1000 \times 12 \%}{2,-1100,1000})) \times 2 \\\\=10.77 \%[/tex]
[tex]\text{Debt expense after tax}= 10.77 \% \times (1-40 \%)[/tex]
WACC from Preston = Capital weight [tex]\times[/tex] Capital equity costs+cost of common stock [tex]\times[/tex] cost of common shares [tex]\times[/tex] debt cost [tex]\times[/tex] (1-tax rate)
[tex]=60 \% \times 9 \%+20 \% \times 5.75 \%+20 \% \times 6.46 \% \\\\=7.84 \%[/tex]
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $425,000 to $445,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $1,140,000 and current break-even units are 11,400. If Forrester purchases this new equipment, the revised break-even point in dollars would be:
Answer:
Break-even point (dollars)= $810,000
Explanation:
Giving the following information:
Fixed costs= $445,500
Unitary variable cost= $45
Selling price= $100
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 445,500 / [(100 - 45) / 100]
Break-even point (dollars)= $810,000
On October 1, 2020, Jackson Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Jackson's management along with its counsel have concluded that it is probable that Jackson will be responsible for damages, and a reasonable estimate of these damages is $5,000,000. Jackson's insurance policy of $9,000,000 has a deductible clause of $500,000. How should Jackson Chemical report this information in its financial statements at December 31, 2020
Answer:
Jackson Chemical should report the $5,000,000 loss because we don't know if the insurance will actually pay out the policy.
Explanation:
Jackson chemical has to report $500,000 loss associated with the deductible would be accrued as liability in the company's financial statements at Dec 31, 2020 since it is probably that Jackson will be responsible for the damages.
$500,000 is the amount of the insurance policy's deductible Jackson will have to pay to receive the policy's benefits, which will cover the reasonably estimated damages.
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,600 and will produce cash flows as follows: End of Year Investment A B 1 $ 8,600 $ 0 2 8,600 0 3 8,600 25,800 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:
Answer:
Net present value $1,363.50
Explanation:
The computation of the net present value of B is shown below:
Year Cash flows PVIFA factor at 15% Present value
0 -$15,600 1 -$15,600
1 0 0.8696 0
2 0 0.7561 0
3 25,800 0.6575 $16,963.50
Net present value $1,363.50
Bean Brewers, Inc., a manufacturer of coffee makers, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) hours Account billing (lines) lines Account verification (accounts) accounts Correspondence (letters) letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) hours hours Account billing (lines) lines lines Account verification (accounts) accounts accounts Correspondence (letters) letters letters How much of the correspondence cost will be assigned to the Northeast Office? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
Answer: B. $438
Explanation:
Correspondence Cost = Number of letters * Predetermined cost of correspondence
Predetermined cost of correspondence = Allocated cost/ Allocated base
= 14,000/1,600 letters
= $8.75 per letter
Northeast Office used 50 letters for correspondence.
Cost = 8.75 * 50
= $437.50
= $438
Parent Corporation acquired 100% of Sub Corporation on January 1, 2020 for $285,000. The trial balances for the two companies on December 31, 2020, included the following amounts: Other information: 1. Out of the total purchase price, $60,000 is paid for the goodwill. However, the manager assess the reporting division and estimated that 50% of the goodwill has impaired. 2. The rest of the differential is split between the building and equipment (40%) and inventory (60%). By the end of the year, Sub Corp sold 50% of all the inventories acquired. The building and equipment has five years of remaining economic life and the company uses the straight line depreciation. 3. Sub Corp owed Parent Corp $20,000 in the form of accounts of payable as of December 31, 2020. Task 1a: Calculate the amount of differential? Task 1b: What is the amount of excess value (i.e., fair value above the book value)? Task 1c: What is the book value of Sub’s net asset? Task 2: Give all journal entries recorded by Parent with regard to its investment in Sub during 2020.
Answer:
Note: The full question is attached as picture
Task 1
a. Net Assets of Company = Common Stock + Retained Earning = $25,000 + $115,000 = $140,000
Amount of Differential on purchase of Company = Purchase price - Net Assets
Amount of Differential on purchase of Company = $285,000 - $140,000
Amount of Differential on purchase of Company = $145,000
b. Excess Value = $145,000 - $60,000 = $85,000
c . Book Value of Sub's Net Assets = $140,000
Task 2
Journal entries recorded by Parent with regard to its investment in Sub during 2020.
Date Description and Explanation Debit Credit
Investment in Sub Corp $285,000
To Bank $285,000
(Being purchase consideration paid)
Cutting flights and declaring bankruptcy are long-run decisions. What impact would you predict these actions would have on the airlines remaining in business?
Answer:
Follows are the solution to this question:
Explanation:
The declaration of bankruptcy as well as flight cutting reduces the amount for flights and also the flight sin operation leading to both a supply reduction. While the business continued, its other airlines will have an increased engagement and thus higher prices and will be seeing recovery for both the airline industry over an amount of time.
Comparing with unemployment rate with employment rate, which of the following is NOT correct? a. Unemployment rate takes the group of "out of labor force" into account. b. Compared with unemployment rate, employment rate is better because it concerns the hidden unemployment in the out of labor force group. c. Compared with employment rate, unemployment rate in a labor market usually has a larger variation. d. It has limitation because some policy shocks unrelated to unemployment or labor market situation such changes in fertility and school enrollment rates, will affect the number of the employment rate as well.
Answer:
b. Compared with unemployment rate, employment rate is better because it concerns the hidden unemployment in the out of labor force group.
Explanation:
Remember, the employment rate is used to determine the degree to which the labor force (people willing to work) in a particular economy are able to find work.
Hence, it does not concern itself or takes into account the hidden unemployment in the out of the labor force group, but only those people willing to work are considered.
You are thinking of opening a Broadway play, I Love You, You’re Mediocre, Now Get Better! It will cost $5 million to develop the show. There are 8 shows per week, and you project the show will run for 100 weeks. It costs $1000 to open the theater each night. Tickets sell for $50.00, and you earn an average of $1.50 profit per ticket holder from concessions. The theater holds 800, and you expect 80% of the seats to be full. a. Given your other assumptions, how many weeks will the play have to run for you to earn a 100%
Answer:
39 weeks
Explanation:
initial investment = $5 million
Your goal is to a better person and get rich by doubling your development costs. You want to earn $10 million in profits, so you will need to sell a lot of seats.
8 shows per week x 100 weeks = 800 shows
revenue per ticket = $50 + $1.50 = $51.50
tickets sold per show = 800 x 80% = 640
total revenue per show = 640 x $51.50 = $32,960
variable cost per show (assuming 7 nights per week) = $7,000 / 8 = $875
contribution margin per show = $32,960 - $875 = $32,085
number of shows needed to earn $10 million in profits = $10,000,000 / $32,085 = 311.67 shows
number of weeks = 311.67 / 8 = 38.96 ≈ 39 weeks
The difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period is the:______________.
A) Flexible-budget variance.
B) Production-volume variance.
C) Total factory overhead variance.
D) Overhead efficiency variance.
E) Total overhead spending variance.
Answer: C. Total factory overhead variance
Explanation:
The difference between total factory overhead cost incurred during a period and the total standard factory overhead cost assigned to production of the period is the total factory overhead variance.
Flexible budget variance is the difference that occurs between the results that are gotten by the flexible budget model and the actual results gotten.
Production volume variance is the difference that occurs between the budgeted production volume for a particular company and the actual volume of goods produced.
The correct option is C.
ear Net Income Profitable Capital Expenditure 1 $ 14 million $ 8 million 2 18 million 11 million 3 9 million 6 million 4 20 million 8 million 5 23 million 9 million The Hastings Corporation has 2 million shares outstanding. (The following questions are separate from each other). a. If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.)
Answer:
$42 Million
Explanation:
The computation of the total cash dividend is shown below:-
Year Net Income Profitable capital Expenditure Dividends
1 $14 Million $8 Million $6 Million
2 $18 Million $11 Million $7 Million
3 $9 Million $6 Million $3 Million
4 $20 Million $8 Million $12 Million
5 $23 Million $9 Million $14 Million
Total cash dividends $42 Million
Your pro forma income statement shows sales of , cost of goods sold as , depreciation expense of , and taxes of due to a tax rate of . What are your pro forma earnings? What is your pro forma free cash flow?
Answer and Explanation:
The computation is shown below:
Particulars Amount($)
Sales 1,033,000
Less:- Cost of goods sold (503,000)
Gross Profit 530,000
Less:- Depreciation (103,000)
EBIT 427,000
Taxes [40% of 427000] (170,800)
Earnings 256,200
1]Proforma earnings = $256200
2]Proforma free cash flow = Earnings + Depreciation
= $256,200 + $103,000
= $359,200
The proforma earnings is $256200 , and the pro-forma free cash flow is the value of earnings before depreciation. Hence the value is $359,200.
Pro Forma income statementwe are provided with the information about:
Sales = 1,033,000
Cost of goods sold = 503,000
Gross Profit = 530,000
Depreciation = 103,000
We need to find, the net profit,
Net Profit = Gross Profit - Depriciation
Net profit = 530000 - 103000 = 427000
Earnings is the amount after deduction of Tax rate (40%)
= 40% of 427000 = 170,800
Earnings = 427000 - 170800 = 256,200
Therefore the Proforma Earning is 256,200, Proforma free cash flow = Earnings + Depreciation
= $256,200 + $103,000
= $359,200
Your Question is incomplete, the complete question is:
Our proforma income statement shows sales of $1,033,000, cost of goods sold as $503,000, depreciation expense of $103,000, and taxes of $170,800 due to a tax rate of 40%. what are your proforma earnings? what is your proforma free cash flow?
Learn more about Depreciation here:
https://brainly.com/question/1287985
Exercise 17-5 Assigning costs using ABC LO P3 Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go-karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Assume that the following information is available for the company’s two products for the first quarter of this year. Deluxe Model Basic Model Production volume 10,000 units 30,000 units Parts required 20,000 parts 30,000 parts Batches made 250 batches 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000 sq. ft. 7,000 sq. ft Models 1 model 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.)
Answer:
Instructions are below.
Explanation:
First, we need to calculate the activity rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Handling materials= 625,000/100,000= $6.25 per part
Inspecting product= 900,000/1,500= $600 per batch
Processing= 105,000/700= $150 per order
Paying suppliers= 175,000/500=$350 per invoice
Insuring the factory= 300,000/40,000= $7.5 per square feet
Designing packaging= 75,000/2= $37,500 per model
Now, we can allocate overhead to each model:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe:
Handling materials= 6.25*20,000= 125,000
Inspecting product= 600*250= 150,000
Processing= 150*50= 7,500
Paying suppliers= 350*50= 17,500
Insuring the factory= 7.5*10,000= 75,000
Designing packaging= 37,500*1= 37,500
Total allocated overhead= $412,500
Basic:
Handling materials= 6.25*30,000= 187,500
Inspecting product= 600*100= 160,000
Processing= 150*20= 3,000
Paying suppliers= 350*10= 3,500
Insuring the factory= 7.5*7,000= 52,500
Designing packaging= 37,500*1= 37,500
Total allocated overhead= $444,000
Finally, the unitary overhead:
Deluxe= 412,500/10,000= $41.25
Basic= 444,000/30,000= $14.8
Would you rather own your own business or become a franchise
Answer:
own a business
Explanation:
I'm able to create my own brand and free to do what I want
Answer:
{: Own My Own Business :}
Explanation:
I would rather own my own business so that I could get lots of money yet give other people money ^w^ It would also be a restaurant. Most likely so I could eat da food as in.. 'taste' da food. :}
A semiannual coupon bond with face value of $1,000 has a coupon rate of 6% and matures in 16 years. The market-determined discount rate on this bond is 14%. What is the price of the bond?
Answer:
$1,125.30
Explanation:
The Price of the Bond is its Current/Trading price also known as the Present Value (PV). This is determined as follows :
Fv = $1,000
Pmt = $1,000 × 6% = $160
P/yr = 1
n = 16
i = 14%
PV = ?
Using the Financial calculator to enter the values as above, the Pv is $1,125.30.
Thus, the price of the bond is $1,125.30.
Which of the following statements is the most accurate? Sole proprietorships are well suited for people who want to own a business and share in its profits without taking an active role in management. Sole proprietorships are the least risky form of business ownership. Sole proprietorships must receive a state charter before they can legally conduct business. Sole proprietorships are taxed at the owner's personal tax rate.
Answer:
D. Sole proprietorships are taxed at the owner's personal tax rate
Explanation:
Sole Proprietorship can be defined as a simplest form of owning and starting any business. As the term suggests, this business is onwed by an individual only or shared by married couples.
Sole properietorship is easy to set up because the owner need not to register itself to state government, therefore, because of absence of governmental involvement, it is easy to set up or deconstruct sole proprietorship.
From the given options, the statement which is most accurate about a sole proprietorship is option D. The owner of sole proprietorship pays personal taxes on the profits earned by his/her business.
Therefore, option D is correct.
ACE Co. stock is not paying a dividend today, but has announced it will start paying a dividend in year 4 of $2.00 per share, and that will increase 5% per year forever. What is an estimate of the price of the stock today if r
Answer:
$77.22
Explanation:
the question is incomplete, so I looked for a similar question and found that Re = 9%
Div₀ = 0
Div₁ = 0
Div₂ = 0
Div₃ = 0
Div₄ = $2
the terminal value at year 3 = Div₄ / (Re - g) = $4 / (9% - 5%) = $100
in order to determine the current stock price we must discount $100 by 9% for 3 periods = $100 / 1.09³ = $77.22
A company offers ID theft protection using leads obtained from client banks. Three employees each work 40 hours a week on the leads. These employees are each paid $25 per hour. Each employee identifies an average of 3,000 potential leads a week. There are no duplications in these three lists. Material costs are $1,000 per week, and overhead costs are $9,000 per week. An average of 4 percent of the potential leads actually sign up for the service, paying a one-time fee of $70. Consider the output as the fees generated. a) What are the labor hours productivity and the multifactor productivity for this operation
Answer:
Output = 4%*3000 * $70 * 3
Output = $25,200
Labor hours productivity = Output / Labor hour
Where Labor hour = 3 * 40 hours = 120 hours
Labor hours productivity = $25,200 / 120 hours
Labor hours productivity = $210 per labor hour
Multi factor productivity for this operation = Output / Multi factor input
Where Multi factor input = 120*$25 + $1,000 + $9,000 = $13,000
Multi factor productivity for this operation = $25,200 / $13,000
Multi factor productivity for this operation = 1.938462
Multi factor productivity for this operation = 1.94
What features of the 100 Yen Sushi House service delivery system differentiate it from the competition, and what competitive advantages do they offer?
Answer:
The summary and as per the query is defined in the following portion of the clarification.
Explanation:
The key characteristics including its 100 yen sushi management of service distribution system are its approaches to meal preparation and facilities on the manufacturing process. The client is also involved throughout the supply chain. The regular price, the conveyor belt mechanism throughout the location, which passes across the commercial counter, is three to four chefs on the floor.
The benefits of this are the people that follow:
High-tech independence including the use of clear methods. The positions that their operation involves repetition throughout their manufacturing method there might be other providers that could follow 100 yen sushi household operational efficiency. The distribution system used for the 100 yen sushi household delivery of services may also be regarded for car production. By only using throughout time method, the location uses freshly delivered food. The position has always had to estimate the volume of food purchased as well as cook it regularly according to the purchase request.4. Give two reasons why GDP is often not seen as the best measure of living standards.
Answer:
Different factors account to it.
Explanation:
Because many factors that contribute to people's happiness are not bought and sold, GDP is a limited tool for measuring standard of living. To understand it's limitations better, let's take a look at several factors that are not accounted for in GDP.
GDP does not account for leisure time. The US GDP per capita is larger than the GDP per capita of Germany, but does this prove that the standard of living in the United States is higher? Not necessarily since it is also true that the average US worker works several hundred hours more per year more than the average German worker. The calculation of GDP does not take German workers extra weeks of vacation into account.
GDP includes what is spent on environmental protection, healthcare, and education, but it does not include actual levels of environmental cleanliness, health, and learning. GDP includes the cost of buying pollution-control equipment, but it does not address whether the air and water are actually cleaner or dirtier. GDP includes spending on medical care, but it does not address whether life expectancy or infant mortality have risen or fallen. Similarly, GDP counts spending on education, but it does not address directly how much of the population can read, write, or do basic mathematics.
Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TiX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Toot! TiX Total Users 17,900 24,100 42,000 Revenues $ 2,200,000 $ 2,400,000 $ 4,600,000 Engineering hours 11,500 9,500 21,000 Engineering cost $ 1,096,250 $ 1,213,750 $ 2,310,000 Administrative costs $ 1,848,000 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the number of users to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service
Answer:
Instructions are below.
Explanation:
Giving the following information:
Toot! TiX Total
Users 17,900 24,100 42,000
Administrative costs $ 1,848,000
We need to allocate administrative costs to each product. First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,848,000/42,000
Predetermined manufacturing overhead rate= $44 per user
Now, we allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Toot!= 44*17,900= 787,600
TiX= 44*24,100= 1,060,400
Finally, the gross profit for each service:
Toot!:
Revenue= 2,200,000
Engineering cost= (1,096,250)
Administrative cost= (787,600)
Profit= $316,150
TiX:
Revenues= 2,400,000
Engineering cost= (1,213,750)
Administrative cost= (1,060,400)
Profit= $125,850
The expected return on the market portfolio is 12%, and the relevant risk-free rate is 4.2%. What is the equity premium?
Answer:
7.8%
Explanation:
The expected return on the market portfolio is 12 percent
The risk free rate is 4.2 percent
Therefore the equity premium can be calculated as follow
= expected return - risk free rate
= 12% - 4.2%
= 7.8%
Hence the equity premium is 7.8%
Suppose you won a $77,000 after-tax cash prize in the lottery. You want to start a new business that you think will lose money for a while, after which it will be up and running and bringing in big bucks. You plan to invest the funds immediately in securities that are expected to earn 8% per year. Suppose you would need only $19,000 per year during the start-up period. How long could you operate before you would require cash from the new business, i.e., how long could you receive payments of $19,000 per year? The first withdrawal will be made a year from today, and your answer will contain a fraction of a year.
Answer:
The right solution is "5.09 years".
Explanation:
The given values are:
Lottery amount
= $77,000
Withdrawal
= $19,000
Rate
= 8%
The number of withdrawal will be:
⇒ [tex]NPER(Rate,-withdrawal,lottery \ amount)[/tex]
On putting the values, we get
⇒ [tex]NPER(8 \ percent,-19000,77000)[/tex]
⇒ [tex]5.09 \ years[/tex]