Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $12,000, and has an estimated useful life of 6 years with an estimated salvage value of $1,200. This steamer falls into the MACRS 5-years class, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and would allow for an output expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,400 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is 40%, and its WACC is 12%.
a. Should it replace the old steamer?b. NPV of replace = $2,083.51
SHOW WORK HOW TO GET THIS ANSWER

Answers

Answer 1

Answer:

Explanation:

initial outlay $12,000 + ($2,900 - $700) = $14,200

depreciable value = $10,800

depreciation per year:

$2,160$3,456$2,073.60$1,244.16$1,244.16$622.08

incremental revenues = $2,000 + $1,400 = $3,400

CF year 0 = -$14,200

CF year 1 = [($3,400 - $2,160) x 0.6] + $2,160 = $2,904

CF year 2 = [($3,400 - $3,456) x 0.6] + $3,456 = $3,422.40

CF year 3 = [($3,400 - $2,073.60) x 0.6] + $2,073.60 = $2,869.44

CF year 4 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66

CF year 5 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66

CF year 6 = [($3,400 - $622.08) x 0.6] + $622.08 + $1,200 + $2,200 = $5,688.83

 

WACC = 12%

a) the steamer should not be replaced, since the NPV is negative.

b) Using a financial calculator, NPV = -$14,200 + $13,298.29 = -$901.71


Related Questions

Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows:_______.
To Total
Department Department Labor
From Design Programming A B Hours
Design - 5,000 1,000 9,000 15,000
Programming 400 - 600 1,000 2,000
The costs in the two service departments are as follows:_______.
Design Programming
Labor and materials (all variable) $ 50,000 $ 36,000
Depreciation and other fixed costs 40,000 4,000
Total $ 90,000 $ 40,000
Required:1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method? (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)2. The company is considering outsourcing programming services to DDB Services Inc. for $52.00 per hour. Should Marin do this?Note: there's 2 requirements , please make sure you do both with explaination :)

Answers

Answer and Explanation:

During the month of September, the Texas Go-Kart Company had the following business activities:
a- On September 1, paid rent on the track facility for six months at a total cost of $13,800.
b. On September 1, received $58,800 for season tickets for 12-month admission to the race track.
c. On September 1, booked the race track for a private organization that will use the track one day per month for $2,500 each time, to be paid in the following month. The organization uses the track on September 30.
d. On September 1, hired a new manager at a monthly salary of $3,400, to be paid the first Monday following the end of the month.
Required: 1. Prepare the journal entry, if any, required to record each of the initial business activities on September
1. (If no entry is required for a transaction/event, select ''No Journal Entry Required'' in the first account field.) Journal Entry Worksheet Record the payment of rent on the track facility for six months at a total cost of $13,800. Transaction General Journal Debit Credit
2. Prepare the adjusting journal entries, if any, required on September 30. (if no entry is required for a transaction/event, select ''No Journal Entry Required'' In the first account field.) Journal Entry Worksheet Record the payment of rent on the track facility for six months at a total cost of $13,800.
Record the adjusting entry for the payment of rent on the track facility for six months at a total cost of $13,800.

Answers

Answer:

a- On September 1, paid rent on the track facility for six months at a total cost of $13,800.

Dr Prepaid rent 13,800

    Cr Cash 13,800

September 30, accrued rent expense

Dr Rent expense 2,300

    Cr Prepaid rent 2,300

b. On September 1, received $58,800 for season tickets for 12-month admission to the race track.

Dr Cash 58,800

    Cr Unearned revenue 58,800

September 30, accrued ticket revenue

Dr unearned revenue 4,900

    Cr Ticket revenue 4,900

c. On September 1, booked the race track for a private organization that will use the track one day per month for $2,500 each time, to be paid in the following month. The organization uses the track on September 30.

no journal entry required

September 30, ticket revenue

Dr Accounts receivable 2,500

    Cr Ticket revenue 2,500

d. On September 1, hired a new manager at a monthly salary of $3,400, to be paid the first Monday following the end of the month.

no journal entry required

September 30, accrued wages expense

Dr Wages expense 3,400

    Cr Wages payable 3,400

The following transactions occurred during a recent year:
a. Paid wages of $1,600 for the current period (example).
b. Borrowed $8,000 cash from local bank using a short-term note.
c. Purchased $3,200 of equipment on credit.
d. Earned $640 of sales revenue; collected cash.
e. Received $1,280 of utilities services, on credit.
f. Earned $2,700 of service revenue, on credit.
g. Paid $480 cash on account to a supplier.
h. Incurred $110 of travel expenses; paid cash.
i. Earned $640 of service revenue; collected half in cash, with balance on credit.
j. Collected $180 cash from customers on account.
k. Incurred $460 of advertising costs; paid half in cash, with balance on credit.
Required:
1. For each of the transactions, complete the table below, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example.
Assets = Liabilities + Stockholders' Equity
a Cash (1,600) Salaries & wages expense (1,600)
b Cash 8,000 Notes Payable (short-term) 8,000
c Equipment 3,200 Accounts Payable 3,200
d Cash 640 Sales revenue 640
e Accounts Payable 1,280 Utilities expense (1,280)
f Accounts Receivable 2,700 Service revenue 2,700
g Cash (480) Accounts Payable (480)
h Cash (110) Travel expense (110)
i Cash 320
Accounts Receivable 320 Service revenue 640
j Cash 180
Accounts Receivable (180)
k Cash (230) Accounts Payable 230 Advertising expense (460)
2. Determine the company's preliminary net income.

Answers

Answer:

1) I used an excel spreadsheet because there is not enough room here.

2) preliminary income = $530

         

preliminary earnings are $530.

What is a transaction?

Economic transactions involve the exchange of products, the provision of services (such as risk-taking and saving), and the movement of funds and other investments between nationals of different countries. The following two types of economic transactions.

The phrase can also be used to describe the entire group of consumers of a commodity or service. In a market, buyers and sellers come together to exchange goods and services. A country's economic exchanges with the rest of the world are summarized in the balance of payments.

The export and import of products, services, and financial assets, as well as transfer payments, are among these transactions (like foreign aid). For 'open' economies like Australia, the balance of payments is a crucial economic indicator.

Learn more about Transaction, from :

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You just deposited $3,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now

Answers

Answer:

Total FV= $16,599.29

Explanation:

We will calculate each investment separately, and then the total future value.

FV= PV*(1+i)^n

Deposit 1:

PV= 3,000

n= 12

i= 0.04/4= 0.01

FV= 3,000*(1.01^12)

FV= $3,380.48

Deposit 2:

PV= $5,000

n= 8

i= 0.01

FV= 5,000*(1.01^8)

FV= $5,414.28

Deposit 3:

FV= 7,500*(1.01^4)

FV= $7,804.53

Total FV= $16,599.29

For each of the following scenarios, indicate whether we would use time series or cross-sectional data.
ITEMS
A. TO DETERMINE IF ENROLLMENT IN HIGHER EDUCATION IS INCREASING.
B. TO COMPARE THE CURRENT PRICE OF A GALLON OF GASOLINE ACROSS DIFFERENT GAS STATIONS IN LOS ANGELES, CA.
C. TO SEE IF THERE ARE DIFFERENCES IN THE AVERAGE NUMBER OF CALORIES CONTAINED IN SCHOOL LUNCHES SERVED IN EACH OF THE FIFTY STATES ON DECEMBER 1, 2015.
D. TO COMPARE THE INSECT POPULATION IN A GEOGRAPHIC REGION BEFORE AND AFTER AN INSECTICIDE WAS APPLIED.

Answers

Answer:

A. Time-Series data

B. Cross-sectional data

C. Cross-sectional data

D. Time-Series data

Explanation:

For Your Understanding:

If the time period is single then use Cross-sectional data.

If their are multiple time periods then use time-series.

A. To determine whether or not the enrollment in higher education is increasing we will use time-series data because enrollment of students is a periodical event and occurs every year. So this means periodic study would be better with time-series data.

B. For comparing the current price of a gallon of gasoline across different gas stations in Los Angeles, CA: we are considering prices in a single time period. Thus the we will use cross-sectional data.

C. For finding see any differences in the average number of calories contained in school lunches served in each of the fifty states on December 1, 2015: we are considering a single time period. Thus we will use here cross-sectional data.

D. To find out the insect population and comparing them with insect population in a geographic region before and after insecticide was used: we will consider two time periods. As the time periods are more than one, hence we will use time-series data here.

The following selected accounts from the Bramble Corp.’s general ledger are presented below for the year ended December 31, 2022:

Advertising expense $54,000 Interest revenue $32,000
Common stock 249,000 Inventory 66,000
Cost of goods sold 1,084,000 Rent revenue 24,000
Depreciation expense 124,000 Retained earnings 534,000
Dividends 149,000 Salaries and wages expense 674,000
Freight-out 24,000 Sales discounts 8,600
Income tax expense 69,000 Sales returns and allowances 43,000
Insurance expense 15,000 Sales revenue 2,399,000
Interest expense 69,000

Required:
Prepare a multiple-step income statement.

Answers

Answer:

                                                                           $                              $

Sales Revenue                                                                             2,399,000    

Less:  

Sales return and allowances                        43,000  

Sales discount                                               8,600

                                                                                                     2,347,400

Net sales                                                                                    

Cost of goods sold                                                                        1,084,000

Gross profit                                                                                     1,263,400

Operating expenses;

Advertising expense                                     54,000

Depreciation expense                                  124,000

Freight out                                                     24,000

Insurance expense                                       15,000

Salaries and wages expense                       674,000

Total operating expense                                                               891,000‬

Income from operation                                                                  372,400‬        

Other revenue and gains  

Interest revenue                                           32,000

Rent revenue                                                24,000                

                                                                                                         56,000

Other expenses and loss  

Interest expense                                                                                69,000

Income before income taxes                                                          359,400

Income tax expense                                                                          69,000

Net income                                                                                       290,400‬

Evan has a bachelor’s degree in ethics and Human Resources and he has extensive experience working with employees and managers regrading ethics especially in the areas of ethical dilemmas in his current position he has assisted extensively in determining if the company decisions are both ethical and lawful. Which position in the company does Evan background make him ideally suited for

Answers

Answer:

Ethics Officer

Explanation:

An Ethics Officer is responsible for looking at every perspective of an organization's procedures to ensure that they are consistent with the organization's code of ethics. Their principal task is to develop a robust ethical culture across all departments.

As the ethics officer, Evans will serve as the company's internal control point for ethics. He will handle allegations /complaints on indecencies and conflicts of interest. Evans will render corporate leadership and advice on ethical issues in governance.

Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:

Activity Activity Rate
Fabrication $34 per machine hour
Assembly $14 per direct labor hour
Setup $46 per setup
Inspecting $26 per inspection
Production scheduling $14 per production order
Purchasing $8 per purchase order

The activity-base usage quantities and units produced for each product were as follows:

Elliptical
Activity Base Machines Treadmills
Machine hours 663 415
Direct labor hours 180 78
Setups 21 9
Inspections 119 181
Production orders 16 9
Purchase orders 90 50
Units produced 268 134

Required:
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product.

Answers

Answer:

Results are below.

Explanation:

First, we need to allocate overhead to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Elliptical:

Fabrication= 34*663= 22,542

Assembly= 14*180= 2,520

Setup= 46*21= 966

Inspecting= 26*119= 3,094

Production scheduling= 14*16= 224

Purchasing= 8*90= 720

Total allocate cost= $30,066

Unitary cost= 30,066/268= $112.19

Treadmills:

Fabrication= 34*415= 14,110

Assembly= 14*78= 1,092

Setup= 46*9= 414

Inspecting= 26*181= 4,706

Production scheduling= 14*9= 126

Purchasing= 8*50= 400

Total allocate cost= $20,848

Unitary cost= 20,848/134= $155.58

Lovely Lotion Inc. produces three different lotions: hand, body, and foot. The lotions are produced jointly in a mixing process that costs a total of $250 per batch. At the split-off point, one batch produces 80, 40, and 25 bottles of hand, body, and foot lotion, respectively. After the split-off point, hand lotion is sold immediately for $2.50 per bottle. Body lotion is processed further at an additional cost of $0.25 per bottle and then sold for $5.75 per bottle. Foot lotion is processed further at an additional cost of $0.85 per bottle and then sold for $4.00 per bottle. Assume that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively.
1. Using the market value at split-off method, allocate the joint costs of production to each product.
2. A lotion manufacturing company produces three types of lotions. After the split-off point the company continues to sell the body lotion and makes $0.25 profit per bottle. The foot lotion generates $0.05 loss per bottle. Which lotion should be continued after the split-off point?
A. Hand lotion.
B. Body lotion.
C. Foot lotion.
D. Body and foot lotion.
3. Allocate the joint costs of production to each product using the net realizable value method.

Answers

Answer:

1) Hand lotion :  Joint cost = $250

body lotion : joint cost = $250

foot lotion : Joint cost = $250

2) Body lotion

The joint costs of production for each product is : $250

Explanation:

cost per batch = $250

At spit off point

one batch produces : 80 bottles of hand lotion, 40 body lotions, 25 foot lotion

After spit-off point : Hand lotion is $2.5 per bottle

cost of further processing of body lotion  = $0.25

value of body lotion = $5.75

cost of further processing of foot lotion = $0.85

market value of foot lotion = $4.00

Assuming that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively.

1 ) using the market value at split-off method to allocate the joint costs of production to each product

Hand lotion :  Joint cost = $250

body lotion : joint cost = $250

foot lotion : Joint cost = $250

this is because the joint cost of producing each product in every batch is the same

2) The lotion that should be continued after split-off is  

      Body lotion because the market value after split-off - cost for further production  is better off other lotions ( highest market value after split-off)

i.e : $5.75 - $0.25 = $ 5.50

The joint costs of production for each product is : $250

If a company sold $1,000 worth of goods in a period, the closing entry for the
revenue accounts would show a
A. $1,000 credit to Sales Expense
B. $1,000 debit to Income Summary
C. $1,000 debit to Sales Revenue
D. $1,000 credit to Sales Revenue

Answers

Answer:

Explanation:C. $1,000 debit to sales revenue

Answer:$1,000 debit to sales revenue

Explanation:

On December 31, 2019, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:

Contract price $520 million
Estimated construction costs $300 million
Estimated total profit $220 million

During the three-year construction period, Tri-State incurred costs as follows:

2020 $60 million
2021 $150 million
2022 $90 million

Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the profits recognized in 2020, 2021, and 2022?

a. $52 million, $312 million, $156 million
b. $12 million, $72 million, $36 million
c. $140 million, $140 million, $140 million
d. $30 million, $180 million, $90 million
e. None of the above

Answers

Answer:

2020 - $44 million

2021 - $110 million

2022 - $66 million

Explanation:

Using the percentage of completion method, the profit for the year will be the percentage of the total estimated costs incurred in that year multiplied by the estimated total profit of the contract.

2020

= (60/300) * 220

= $44 million

2021

= (150/300) * 220

= $110 million

2022

= (90/300) * 220

= $66 million

The options are not for this question.

Your monthly mortgage payment on your house is $593.90. It is a 30 year mortgage at 7.8% compounded monthly. How much did you borrow

Answers

Answer:

The amount borrowed is $82,500

Explanation:

The computation of the amount borrowed is shown below:

But before that we do the following calculations

Total Periods is

= 30 × 12

= 360

Interest Rate = 7.8% ÷ 12 = 0.65%

Now

Amount Borrowed is

= $593.90 ×  (PVA $1 for 360 Periods at 0.65%)

= $593.90 × (138.913874 )

= $82,500

Hence the amount borrowed is $82,500

The contract drawings prepared by the architect are generally not specific enough to facilitate accurate fabrication of the materials involved. Therefore, to produce the necessary materials for a project, subcontractors and suppliers must provide ________________________ to amplify/clarify the contract drawings.

Answers

Answer:

construction specifications

Explanation:

Construction contracts must always include construction specifications. These specifications refer to what materials, installations and specialized labor is required to perform correctly the building process.

Architects are paid for their blueprints, i.e. their designs. Sometimes an architect can recommend certain materials that fit his/her design, but the contractor is responsible for carrying on the actual construction.

The contractor has to specify which materials will be used and how the construction process will be carried out. E.g. it is not the same to build a house with luxurious materials like expensive floors and ceilings than a normal house.

For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.Transaction C |I |G| X |M|The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Antonio and Caroline's house.Dmitri buys a new set of tools to use in his plumbing business.Caroline buys a new BMW, which was assembled in Germany.Antonio's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.Caroline gets a haircut.

Answers

Answer:

The given transactions categorised as being parts of C / I / G / X - M, from GDP

Explanation:

Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Antonio and Caroline's house : Government Purchase

Dmitri buys a new set of tools to use in his plumbing business : Investment

Caroline buys a new BMW, which was assembled in Germany : Imports

Antonio's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China : Export

Caroline gets a haircut : Consumption

Use the information in the ledger accounts.
Cash Nov. 1 144,000
Nov. 8 40,320
Nov. 25 14,400
Nov. 30 1,680
Land Nov. 8 84,000
Building Nov. 8 70,320
Office Equipment Nov. 15 3,840
Nov. 21 576
Vehicles Nov. 30 11,280
Notes Payable Nov. 25 14,400
Nov. 8 114,000
Nov. 30 9,600
Accounts Payable Nov. 21 576
Nov. 15 3,840
Capital Stock
Nov. 1 144,000
Prepare a trial balance for Avenson Insurance Company dated November 30.

Answers

Answer:

Avenson Insurance Company

Trial Balance as at 30 November

                                                         Debit          Credit

                                                            $                  $

Cash                                                 1,680

Land                                              84,000

Building                                         70,320

Office Equipment                          21 576

Vehicles                                         11,280

Notes Payable                                                    9,600

Accounts Payable                                               3,840

Capital Stock                                                    144,000

Total                                            $188,856   $157,440

Explanation:

A trial balance is prepared as at the end of the financial year. It is used to check the arithmetical accuracy of double entry.

Consider only the balances at the date of financial year end - November 30.

X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it purchased $400 of merchandise on account with terms of 2/15, n/40. On May 3, X-Mart returned $50 of merchandise due to defect. Assuming that the purchase was paid for within the discount period, demonstrate the required journal entry for X-Mart to record the payment by selecting all of the correct actions below.
A. Credit Purchase Discounts $7.
B. Credit Cash $392.
C. Credit Merchandise Inventory $7.
D. Debit Accounts Payable $350.
E. Credit Cash $343.
F. Debit Merchandise Inventory $7.
G. Credit Accounts Payable $350.

Answers

Answer:

C. Credit Merchandise Inventory $7

D. Debit Accounts Payable $350

E. Credit Cash $343

Explanation:

Based on the information given we were told the company made purchased of the amount of $400 of merchandise which include a terms of 2/15, n/40 and On May 3 the company returned the amount of $50 of merchandise due to defect which means that if the purchase was been paid for within the discount period the correct required journal entry for X-Mart to record the payment will be :

Credit Merchandise Inventory $7

[(2%*400)-(2%-50)]

=$8-$1

=$7

Debit Accounts Payable $350

($400-$50)

=$350

Credit Cash $343

($400-$50)-[(2%*400)-(2%-50)]

=$350-($8-$1)

=$350-$7

=$343

You are an administrator working for the Maine Department of Environmental Protection, a state administrative agency. You are tasked with implementing a new and controversial pollution control rule. The media will be watching closely to ensure all required procedures are followed. Local citizens are requesting that the rule be implemented immediately and without a hearing because, they argue, the need for controls are so acute. A California environmental group is requesting that you consider the impacts of the rule on their state. A manufacturing lobbyist has asked you to decrease relevant pollution standards in the rule by 90%, even though you have significant evidence that current pollution levels are dangerously high. Assuming that Maine administrative law, including the Administrative Procedure Act, is substantially the same as federal law discussed in this chapter, evaluate your responses to these requests in light of rules you need to follow. You want to avoid having your rule held unlawful and set aside by a court.

Answers

Answer:

the answer to this question has been well explained. Thank you!

Explanation:

the environmental protection department has to apply the pollution control rule through a good examination of the effect it would have on all stakeholders if it is passed.

local citizens: for this group the best way to respond to their request is by making sure that the rule is applied in a timely manner. they have to be given the assurance that environmental implications would be reduced to the highest possible extent by this rule and that this rule would prove to be effective.

california environmental group: the request of this group is valid and they have to get the assurance that the effect of rule on the state have been studied well enough and that policies to lower environmental effects would be put in place as much as possible.

manufacturing lobbyist: theirs is a critical request. passing the rule would obviously increase necessary pollution standards. to ensure the lobbyist is made awarebof this, administrative agency has to have a meeting with the lobbyist and the person has to be made aware of the new position and current standards that are obtainable to organizations that are in manufacturing, as well the opportunities that are open to them. it is good to do this clearly in other to avoid any future confrontations of any kind.

Christiansen Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 70,000 machine-hours Order Processing 500 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and Salaries $420,000 Depreciation 160,000 Occupancy 200,000 Total $780,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and Salaries 60% 20% 20% 100% Depreciation 5% 60% 35% 100% Occupancy 25% 50% 25% 100%
The activity rate for the Order Processing activity cost pool is closest to:_______.
A. $312 per order
B. $676 per order
C. $780 per order
D. $560 per order

Answers

Answer:

D. $560 per order

Explanation:

For computing the activity rate first determine the total allocation cost which is shown below:

The Total allocation cost is

= Wages & salaries + depreciation + occupancy

= $420,000 × 20% + $160,000 × 60% + $200,000 * 0.50

= $84,000  $96,000 + $$100,000

= $280,000

Now the activity rate is

= $280,000 ÷ 500 orders

= $560 per order

hence, the option D is correct

Fidelity Stereo Company has provided the following information regarding its activity-based costing system:Purchasing department costs are allocated based on purchase orders, and the predetermined overhead allocation rate is $77 per purchase order.Assembly department costs are allocated based on the number of parts used, and the predetermined overhead allocation rate is $5 per part.Packaging department costs are allocated based on the number of units produced, and the predetermined overhead allocation rate is $4 per unit produced.Each stereo produced has 50 parts, and the direct materials cost per unit is $70. There are no direct labor costs. Fidelity Stereo has an order for 1200 stereos, which will require 45 purchase orders in all. What is the total cost for the 1200 stereos?a. $392,265b. $303,465c. $388,800d. $307,950

Answers

Answer:

a. $392, 265

Explanation:

Given that:

i. Purchasing department, overhead allocation rate is $77 per purchase order.

ii. Assembly department, overhead allocation rate is $5 per part.

iii. Packaging department, overhead allocation rate is $4 per unit.

iv. Direct material cost is $70 per unit.

v. Each stereo has 50 parts.

Total parts required = 1200 x 50

                                 = 60000

vi. 45 purchase order was required for 1200 stereos.

Thus:

i. $77 x 45 = $3465

ii. $5 x 60000 = $300000

iii. $4 x 1200 = $4800

iv. $70 x 1200 = $84000

Therefore,

total cost for 1200 stereos = $3465 + $300000 + $4800 + $84000

                                            = $392, 265

A market has 10 sellers. The fifth and seventh in size merge, becoming the largest seller in the market. How can this merger support competition in the market?

Answers

Answer: b. If the newly merged seller becomes more efficient and offers lower prices

Explanation:

Competition in the market is spurred by efficiency. The more efficient a company is at producing, the more competitive it is because it will be able to offer lower prices than its competitors.

If the newly created firm starts offering lower prices due to it being more efficient, the effect would be that the other companies would be forced to become efficient so as to lower their prices as well thereby increasing competition in the market.

The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system.
Jan. 2 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30.
5 Paid freight of $190 on the January 2 purchase.
6 Returned $2,750 of the merchandise purchased on January 2.
13 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of goods sold was $22,400.
15 Paid freight of $215 for the merchandise sold on January 13.
17 Paid for the purchase of January 2 less the return and discount.
23 Received payment on account for the sale of January 13 less the discount.
Journalize the entries to record the transactions of Air Systems Company.

Answers

Answer:

Date      Account Titles and Explanation         Debit      Credit

2-Jan     Purchase                                            $18,200

                    Accounts payable                                          $18,200

5-Jan     Freight In                                             $190

                     Cash                                                                $190

6-Jan     Accounts payable                               $2,750

                     Purchased return and allowance             $2,750

13-Jan   Account receivable                            $37,300

                   Sales                                                                $37,300

             Cost of goods sold                              $22,400

                    Merchandise Inventory                                   $22,400

15-Jan    Delivery expenses                               $215

                     Cash                                                               $215

17-Jan     Account payable                                $15,450

                      Purchase discount                                       $309

                       Cash                                                             $15,141

23-Jan    Cash                                                     $36,927

               Sales discount                                     $373

                     Account receivables                                     $37,300

The amount of cash received = $37,300 - {$37,300*1%} = 36,927

The amount of sale discount  = $37,300 - $ 36,927 = $373

Analyzing the effects of transactions on the accounting equation.
On July 1, Alfred Herron established Herron Commercial Appraisal Services, a firm that provides expert commercial appraisals and represents clients in commercial appraisal hearings.
Instructions:
Analyze the following transactions. Record in equation form the changes that occur in assets, liabilities, and owner's equity.
Transactions:
The owner invested $200,000 in cash to begin the business.
Paid $40,500 in cash for the purchase of equipment.
Purchased additional equipment for $30,400 on credit.
Paid $25,000 in cash to creditors.
The owner made an additional investment of $50,000 in cash.
Performed services for $19,500 in cash.
Performed services for $15,600 on account.
Paid $12,000 for rent expense.
Received $11,000 in cash from credit clients.
Paid $15,100 in cash for office supplies.
The owner withdrew $24,000 in cash for personal expenses.
Analyze: What is the ending balance of cash after all transactions have been recorded?

Answers

Answer:

I used an excel spreadsheet to record the accounts using the accounting equation.

What is the ending balance of cash after all transactions have been recorded?

$163,900

The Cash ending balance after the recording of the transactions is $163,900.

Data Analysis:

a. Cash $200,000 Capital, Alfred Herron $200,000

b. Equipment $40,500 Cash $40,500

c. Equipment $30,400 Accounts Payable $30,400

d. Accounts Payable $25,000 Cash $25,000

e. Cash $50,000 Capital, Alfred Herron $50,000

f. Cash $19,500 Service Revenue $19,500

g. Accounts Receivable $15,600 Service Revenue $15,600

h. Rent Expense $12,000 Cash $12,000

i. Cash $11,000 Accounts Receivable $11,000

j. Supplies $15,100 Cash $15,100

k. Drawings, Alfred Herron $24,000 Cash $24,000

Thus, the total cash receipts are $280,500, while the total cash disbursements are $116,600, leaving an ending balance of $163,900 in cash.

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Year1-Year Forward Rate 15.8% 26.4% 37.1% 47.3% 57.4%What would the yield to maturity be on a four-year zero-coupon bond purchased today

Answers

Answer:

b. 6.65%

Explanation:

Note: The organized question is attached below

Yield of maturity = [(1+forward rate of years 1) * (1+forward rate of years 2) * (1+forward rate of years 3) * (1+forward rate of years 4)]^(1/4) - 1

Yield of maturity = [(1+5.8%) * (1+6.4%) * (1+7.1%) * (1+7.3%)]^(1/4) - 1

Yield of maturity = (1.058 * 1.064 * 1.071 * 1.0730)^(1/4) - 1

Yield of maturity = 1.293649093296^(1/4) - 1

Yield of maturity = 1.06648345438 - 1

Yield of maturity = 0.06648345438

Yield of maturity = 6.6483%

Yield of maturity = 6.65%

In the long run, a decrease in the money supply will
decrease real Gross Domestic Product (GDP).
decrease the price level.
increase real Gross Domestic Product (GDP).
increase the price level.

Answers

Answer:

decrease real Gross Domestic Product (GDP).

Explanation:

GDP represents the total value of a country output. The calculation of GDP using the expensive method is identical to that of the aggregate demand. Aggregate demand is the total of government spending, consumer spending, investment, and net exports. Therefore, GDP and aggregate demand are the same.

A decrease in the money supply leads to firms and households having less money to spend. Reduction in disposable income results in reduced consumer spending, which has adverse effects on aggregate demand. Therefore, reduced money supply results in a decline in consumer spending and reduced aggregate demand, leading to a reduction in a country's output.

PLS HELP!!!!
1. Based on the profit-loss statement, does Rings and Things have a positive or negative cash flow?
Why?
Based on the profit loss statement rings and things has a negative cash flow because they're not
operating activities is not breaking even and they are losing money.
2. Based on the profit-loss statement, name two ways Janet and Omar can improve their cash flow.
3. Omar and Janet decide to revise their budget for Rings and Things. What suggestions about labor
costs would you make, if the goal is to improve the business's cash flow?
4. Omar and Janet are also trying to forecast what their federal and state income taxes will at the end
of the year. If Rings and Things had a negative cash flow of $150.00 per month from January
through April, but a positive cash flow of $1,000.00 per month (after expenses) from May through
December, on what dollar amount will they determine their income taxes? What expenses could be
used for tax deductions?

Answers

Answer:

1. They have a negative cash flow.

Because their net operating activities is not breaking even, in other words, they are losing money.

2.Omar and Janet should reduce the budget for labor

The labor budget for Janet and Omar is $1000, approximately 57 percent of their total cost. Labor costs are 62 percent of the total income earned. This indicates that Janet and Omar's labor budget is on the upper side.

As a rule of thumb, labor should range between 25 to 35 percent of the totals costs. Another school of thought suggests that labor should not exceed 30 percent of total revenue. For Janet and Omar to be profitable, they must revise their budget downwards. The ideal labor cost should be below $400.

3. Review labor costs downwards.

4. They will determine their income taxes based on their positive cash flow of $1,000.00 per month. This is because this cash flow spans across more months than their negative cash flow of -$150.00 per month. Expenses that could be used for their tax deductions is sales tax.

Answer:They have a negative cash flow.

Because their net operating activities is not breaking even, in other words, they are losing money

Explanation:

hope this helped!

On June 3, Sweet Company sold to Chester Company merchandise having a sale price of $4,600 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $93, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.
Prepare journal entries on the Sweet Company books to record all the events noted above under each of the following bases.
(1) Sales and receivables are entered at gross selling price.
(2) Sales and receivables are entered at net of cash discounts.

Answers

Answer and Explanation:

The journal entries are shown below:

1  Accounts Receivable - Chester Company $4,600    

             Sales $4,600  

(To record sales)    

Cash    $4,508    

Sales Discounts   $92   ($4,600 × 2%)

       Accounts Receivable- Chester Company 4,600  

(To record receiving of the payment)    

2 Accounts Receivable - Chester Company $4,508 ($4,600 × 0.98)

           To Sales $4,508  

(To record sales)    

Cash 4,508    

         To Accounts Receivable- Chester Company 4,508  

(To record the payment received )  

Cash   4,600    

      Accounts Receivable - Chester Company 4,508  

       Sales Discounts Forfeited 92  

(To record the payment received )

PLEASE HELP What platforms do digital media campaigns use to reach customers?

Question 1 options:

Websites


Social Media


Live Chats


All of the Above

Answers

The answer is All of the Above

As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,300 1,800 2,800 3,000 Hours per machine 325 200 400 320 Number of machines 3 5 4 4 Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average productivity 2.06 correct units per machine hour

Answers

Answer: 2.36

Explanation: Hours per machine * # of machines

325 * 3 = 975

Units produced/ Machine Hour

2,300/975 = 2.36

The average of the monthly productivity figures is 2.36.

Who are managers?

"Manager can be defined as a person who is in charge of managing or looking after an organization he is an acting leader who helps in delegating the responsibilities as well as setting the goals also he possesses some leadership qualities that help in running an organization smoothly."

Hours per machine 325

In total there are 3 units that are producing that the operation manager needs to focus on intaking the decision.

Total machine hour is calculated as:

Hours per machine * number of machines

= 325 * 3

= 975

The average of monthly productivity  that the operating manager needs to incur for the smooth running of the business is:

Units produced/ Machine Hour

= 2,300/975

= 2.36

Learn more about managers, here:

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#SPJ5

when is y'all birthday i'm trying to see if i have the same birthday as somebody

Answers

Answer:

6th October, when is yours..?

Mines is June 15 yurr

Explain the manufacturing sector

Answers

Answer:

The manufacturing sector, as defined by the U.S. government, “comprises establishments. engaged in the mechanical, physical, or chemical transformation of materials, substances, or. components into new products,” as well as those engaged in “assembling of component parts of.

Explanation:

The branch of manufacture and trade based on the fabrication, processing, or preparation of products from raw materials and commodities. This includes all foods, chemicals, textiles, machines, and equipment.
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