In the given journal entry, Jan. 6 Dr Accounts receivable $9,700, Cr Sales is $9,700. Jan. 16 = Cash $10,506. Sales discounts($9,700 * 2%) $194. Accounts receivable $10,700.
The journal entries are the initial recording of the business transactions in the books of accounts. The entries are prepared in chronological order .i.e. the order of their occurrence. This helps the accountant to prepare the general ledger accounts of each account head. Journal entries can record unique items or recurring items such as depreciation or bond amortization. In accounting software, journal entries are usually entered using a separate module from accounts payable, which typically has its own subledger, that indirectly affects the general ledger.
Thus, in the given journal entry Accounts receivable is $10,700.
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5. Using money creation to pay for government spending
Consider Katmai, a hypothetical country that produces only lobster rolls. In 2021, a lobster roll is priced at $8.00.
Complete the first row of the table with the quantity of lobster rolls that can be bought with $900.
Hint: In this problem, assume it is not possible to buy a fraction of a lobster roll, and always round down to the nearestwhole lobster roll. For
example, if your calculations result in 1.5 lobster rolls, the answer should be 1 lobster roll.
Year
2021
2022
Price of a Lobster roll Lobster rolls Bought with $900
(Quantity)
(Dollars)
- 8.00
Suppose the government of Katmai cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government points
money. As a result, the money supply rises by 30% by 2022.
Assuming monetary neutrality holds, complete the second row of the table with the new price of a lobster roll and the new quantity of jobster rolls that
can be bought with $900 in 2022.
The impact of the government's decision to raise revenue by printing money on the value of money is known as the inflation tax
According to the concept of monetary neutrality, neither the real money supply nor any other economic factor, such as interest rates, should change. In addition, for each percentage point increase in the money supply, prices must likewise rise in proportion.
According to your example, a 30% increase in the money supply would result in a 30% increase in prices if monetary neutrality is true. Assuming monetary neutrality holds true, if a lobster roll costs $8.00 in 2021, its new price in 2022—when the money supply has increased by 30%—would be $10.40 (8.00 * 1.3) 2.
In the new scenario, 86 (900/10.40) 2 lobster rolls could be purchased with the same amount of money.
The phrase "interest rate," which typically refers to the entire amount of interest fees charged on a loan, deposit, or other type of borrowing, refers to all of these fees.. It is calculated as a percentage of the principle. The total amount of interest charged is determined by a variety of variables, including the loan amount or borrowing, interest rate, frequency of compounding, and period of the loan, deposit, or borrowing.
The interest rate that is set annually is known as the yearly interest rate. Additionally, there are interest rates that are frequently annualized for a day or a month. One definition of interest rate is that it "is an index of the preference for a dollar of present [income] over a dollar of future income."
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A dividend is a fee paid to an employee for their sale or services.
A) True
OR
B) False
HELP PLS
Which type of data does your company collect from customers or potential consumers
Consumer information, to put it simply, is the data you gather about your leads and customers. It may be anything as simple as their name and email address or it may be more specific like transactional or behavioral data.
Three methods may be used to get consumer information: directly asking customers, indirectly following customers, and supplementing your own data with information from external sources.
This includes data pertaining to your identification, such as your name, gender, and Social Security number, as well as data pertaining to your devices, such as your IP address, web browser cookies, and device IDs. Typically, personal information is gathered in order to divide users into several demographic groups according to pertinent criteria.
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Evaluate the leadership in your team including your
leadership effectiveness in your MGT 360 team project
The ability of an individual or a group of people to influence and direct followers or members of an organization, society, or team is referred to as leadership. Anyone cannot be a leader. It is a skill that anyone, including those who do not hold positions of authority, can develop. It is a learnable ability that may be honed through time.
Leaders can be found and are needed in almost every facet of society, including business, politics, religion, and social and community organizations. Leaders are viewed as those who make sound, albeit often tough, judgements.
Self-confidence, good communication and managerial abilities, creative and inventive thinking, perseverance, willingness to take chances, openness to change, levelheadedness, and responsiveness in times of crisis are all traits of an effective leader.
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What is the BEST example of commercialization?
Answer: The best example of commercialization is when a company takes a product or service that was previously not for sale and makes it available for purchase. For example, if a company develops a new technology or software program, and then sells it to other businesses or consumers, this is an example of commercialization. Another example could be when a company takes a popular trend or idea and creates a product or service around it, such as creating merchandise for a popular movie or TV show.
Explanation:
ELIMINATE UNNECESSARY COSTS
You can eliminate unnecessary costs in business by some ways such as :
Identify and prioritize expensesReview vendor contractsStreamline processesHow to eliminate unnecessary costs ?Begin by scrutinizing your expenses to distinguish the essential ones for running your business from those that are not. Make sure to prioritize necessary expenditures and explore means of reducing outlays on pointless items.
Evaluate your legal agreements with merchants and providers, maximizing efforts to secure optimal deals. You could either examine more agreeable terminologies or opt for more economical suppliers.
Request ways of simplifying your company procedures in order to diminish expenditure on hours spent and resources utilized. Ponder using efficient automated systems or arranging outsourcing activities whilst cross-training team members across different positions.
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QUESTION 1 Explain to the owners of Miss K the concepts of the product line depth and product line breadth using practical examples relating to the 40Foods Distributors case study (2 marks will be awarded for the theoretical discussion and 2 marks for the practical examples relating to the case study
The concepts of the product line depth and product line breadth using practical examples relating to the 40Foods Distributors.
The product line refers to the number of products that a company offers within a particular product line
The product line depth and product line breadth are two important concepts in product management.
In the case of 40Foods Distributors, product line depth can be in the variety of products offered within each product line.
In the 40 Foods distributors, the product lines for dairy, bakery, meat, frozen foods, and other grocery items.
Therefore, the product line depth and product line breadth are two important concepts in product management.
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Which best describes how consumers may benefit from specialization?
Consumers can only purchase high-quality goods.
Consumers have more price options.
O Consumers receive more sale offers.
O Consumers find products at lower prices.
In specialization a company have produced the product at different price levels. Consumers have more price options.
What is consumer?A consumer is a person who purchases the goods and or services from the business and is also the ultimate user of the products or services. In specialization the company produces a certain product at many different levels by which they have many price options available which vary according to their customization and quality that can be offered to the consumers and hence the customer can purchase different types of a single product from a single company or Brand.
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ePage(s) 49-50 2.4. What is the trade-off between having more now and having more later?
Which country is a good example of a high present rate of investment and a low pres
consumer goods consumption?
United Kingdom
Germany
Click or tap a choice to answer the question.
United States
Mexico
a) The trade-off between having now and having more later is a difficult one. Having now means that you get to enjoy the benefits immediately. However, one might be able to gather more wealth or resources in the long run if he decides to have more later.
b) The country with a good example of a high present rate of investment and a low consumer goods consumption is B. Germany.
What impact does a high investment rate have on a country?A country with a high rate of investment is investing a large portion of its income or resources in infrastructure, education, research and development, healthcare, etc.
A high investment rate and low consumer goods consumption are considered a tradeoff between present and future needs and desires.
Investment emphasizes future growth and prosperity rather than immediate gratification.
Germany is one of the countries popular for a high rate of investment in infrastructure, technology, etc., which suggests that it prefers long-term growth over short-term consumption.
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Answer:Mexico
Explanation:
in Mexico, more economic output goes into savings and infrastures, than in North America and Europe
What is the demand curve and who does it represent?
A demand curve is a graphical representation that displays the demand of a product, the quantity demanded is the individual demand at a certain period while the demand curve shows the trend of the demand during the periods.
What is a demand Curve?A demand curve shows the demanded quantity of the product at different periods and or month, if a demand curve slopes downward as shown in the graph it is representing the increase in demand for the product, the price is reduced so the product demand has increased which suggests that the customers are willing to purchase more if the price falls.
The demand curve can be made for different prices and different quantities demanded.
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You plan to invest in one of the most profitable securities. The total of your investment is RM20,000. Given the below information.
State of the economy Probability of the states
Cash flow from the investment
Investment XY Investment ZZ
Economic recession 30% RM5,000 11,000
Moderate economic growth 40% RM12,000 12,000
Strong economic growth 30% RM19,000 13,000
a. From the data above, measure the return and risk of each investment. Which investment should be accepted? Justify your answer.
To measure the return and risk of each investment, we need to calculate the expected return and standard deviation for each investment.
Investment XY:
Expected return = (0.3 x 5000) + (0.4 x 12000) + (0.3 x 19000) = 11400
Standard deviation = sqrt(((0.3 x (5000-11400)^2) + (0.4 x (12000-11400)^2) + (0.3 x (19000-11400)^2))/2) = 4311.46
Investment ZZ:
Expected return = (0.3 x 11000) + (0.4 x 12000) + (0.3 x 13000) = 12000
Standard deviation = sqrt(((0.3 x (11000-12000)^2) + (0.4 x (12000-12000)^2) + (0.3 x (13000-12000)^2))/2) = 1000
Justification:
Investment ZZ has an expected return of RM12,000, which is higher than investment XY's expected return of RM11,400. Additionally, investment ZZ has a lower standard deviation of RM1,000 compared to investment XY's standard deviation of RM4,311.46. This means that investment ZZ is less risky than investment XY, making it a better investment choice.
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what skills help the salesperson maintain a good relationship with the prospect throughout the negotiation process?
Answer:
Explanation:
Maintaining a good relationship with prospects during the negotiation process is key to successful sales. A skilled salesperson must be able to effectively communicate, actively listen, and understand the prospect's needs and concerns. The salesperson must also be patient, empathetic, and able to build rapport with the prospect. Other important skills include the ability to adapt to the prospect's communication style, negotiate fairly and transparently, and handle objections in a respectful and tactful manner.
In addition, a salesperson should be knowledgeable about their product or service, and able to clearly articulate its value to the prospect. These skills, when utilized effectively, can help build trust, credibility, and ultimately lead to successful sales.
Which of the following is a measurable goal for a company seeking to retain customers? Select an answer:
a) amount of revenue retained at the start and end of a defined period
b) number of customers lost from the beginning to the end of a time period
c) qualitative answers to customer feedback
d) customer survey results
The sentence that serves as the measurable goal for a company seeking to retain customers is a) amount of revenue retained at the start and end of a defined period.
What is the justification?The amount of revenue retained at the start and end of a defined period can be used as the measure in knowing the company's ability to keep customers as well as the way toretain their revenue over a given period.
This is because this helps to account the number of customers retained through the amount of revenue generated from those customers in a particular period of time.
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The measurable goal for a company seeking to retain customers is the amount of revenue retained at the start and end of a defined period.
Explanation:An example of a measurable goal for a company seeking to retain customers is (a) the amount of revenue retained at the start and end of a defined period. This measure of revenue can show if the company has been able to retain customers and generate enough sales to maintain or increase its revenue. By monitoring the amount of revenue retained over time, the company can assess the success of its customer retention efforts.
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6. Choose a well-known company that you are familiar with, and explain how that company could use each of the five P's of the marketing mix to achieve its brand image and sales goals. (1-8 sentences. 5.0 points)HELP
The general example of how a company could use the five P's of the marketing mix to achieve its brand image and sales goals.
The marketing mix refers to a set of tools and strategies that a company uses to promote its products or services to its target market.
The company could use each of the five P's of the marketing mix:
1. Product: The company could offer a wide range of products to the target market's preferences and needs.
2. Price: The company could use a pricing strategy that emphasizes the high-quality of its products.
3. Place: The company could distribute its products through various channels, such as online retail platforms, etc.
4. Promotion: The company could use various promotion strategies to build brand awareness and attract customers.
5. People: The company could employ knowledgeable, and helpful staff who can provide expert advice and the benefits of using their products.
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You recently bought a used car and it breaks down. You take it to the repair shop, which will charge $400. You don’t have that money right now, but you’ll have it once you get paid at the end of the month. What is the best payment option for this scenario?
how might a workers emotional state lead to an accident on the job
An employee's emotional state can have a significant impact on their job performance and potentially lead to accidents in the workplace.
Distraction: If an employee is feeling anxious, angry, or upset, they may be more prone to distraction and have difficulty focusing on their job.
Impaired decision-making: Negative emotions can impair an employee's decision-making ability. If they are feeling overwhelmed or stressed, they may not be able to think clearly and make sound judgments.
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TB MC Qu. 09-81 (Algo) Wren Pork Company uses...
Wren Pork Company uses the value basis method of allocating joint costs in its production of pork products. Relevant information for the current period
follows:
Product
Loin chops
Ground
Ribs
Bacon
Total
Sales Value
$13,300
17,500
16,800
22,400
$70,000
The total joint cost for the current period was $48,000. How much of this cost should Wren Pork allocate to Loin chops?
Answer:
To allocate joint costs using the value basis method, we need to determine the total sales value of all products and the percentage of the total sales value represented by each product. We can then allocate the joint costs to each product based on its percentage of the total sales value.
Total sales value for all products = $70,000
Percentage of total sales value for Loin chops = ($13,300 / $70,000) x 100% = 19%
Therefore, Wren Pork should allocate 19% of the total joint cost of $48,000 to Loin chops:
19% x $48,000 = $9,120
So, Wren Pork should allocate $9,120 of the joint cost to Loin chops.
Explanation:
1. Identify the type of control.
“Can you tell me what needs to be done before we start?”
2. Identify the type of control.
“What can we do right now to change things?”
3. Identify the type of control.
“Now that we are finished, how well did we do?”
In real business cycle theory, a decrease in GDP is typically caused by
A. Aggregate Demand shifting left
B. Aggregate Demand shifting right
C. Short-run Aggregate Supply shifting right
D. Long-run aggregate supply shifting left
In real business cycle theory, a decrease in GDP is typically caused by aggregating Demand shifting left. Thus, option A is the correct option.
What causes a decrease in real GDP?When a nation has a positive trade balance or surplus, its GDP rises. However, a trade imbalance occurs when a nation spends more on importing goods and products than on exporting them, which lowers GDP. Either the spending technique or the income approach can be used to calculate GDP. Both methods calculate the total output value of all commodities and services generated in a nation.
A nation can comprehend the whole of what is purchased and the final output of products and services by employing either strategy. Both figures will be similar in size. The national income is used in the income approach to calculate GDP. Data on all earnings from all sources of output are gathered to compute GDP.
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Question 1 (1 point)
When people are using their cell phone in public spaces, it is expected that others
around them will politely ignore the conversation. According to McEwan (2015), it is
a likely development that people will engage in in the presence of other who
are using mobile devices.
Micro-coordination
Polite ignorance
O Civil inattention
Interstices
According to McEwan (2015), it is Civil inattention
What is Civil inattention"Civil inattention" is a term coined by sociologist Erving Goffman in 1963 to describe the act of politely ignoring individuals using mobile devices in public spaces, thereby acknowledging their presence without engaging with them directly.
Although one that has been commonly practiced throughout history, mobile device use has introduced a new level of complexity to civil inattention. McEwan (2015) posits that people partake in "micro-coordination" as a means of navigating the social norms associated with utilizing mobile devices in shared areas.
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Leading function of management embraces activities of:
a. Issuing orders to subordinates
b. Guiding and teaching the subordinates
c. Providing leadership and motivation to subordinates
d. All of these
The leading function of management embraces activities of providing leadership and motivation to subordinates is the leading function of management. The correct option is C.
What is the leading process?Working collaboratively to accomplish objectives is a key component of the leadership process. These objectives could be for your career, team, business, or personal. Leaders and team members develop a link that strengthens their capacity to work cooperatively by working together to accomplish common goals.
It entails giving the business a direction, inspiring workers to reach their potential, and ensuring goals are attained by offering advice and assistance. Although important management tasks, giving orders to subordinates and assisting and instructing them are not the leading duties.
Thus, the correct option is C.
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Your grandma pays upfront for you to go on an overnight trip with the school, which costs $340. You make a deal that you’ll give her $25 per month until you pay it all back. What is the best option for this payment scenario?
The best payment option is $25 for 13.6months
How to determine the the best option for the payment scenarioIf your grandmother pays for your school's overnight trip in advance and you agree to repay her $25 per month until you have paid it all off, the best solution for this payment scenario is to determine the total number of months it will take to repay her.
To accomplish this, divide the total amount owed ($340) by the monthly payment ($25):
$340 ÷ $25 = 13.6
This means that it will take around 13.6 months to fully repay your grandmother.
As a result, it will take you 14 months to pay off your debt.
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Bruckner Trusses wants to predict future operating costs and has learned that a cost equation can be derived using historical information. Bruckner’s Comptroller has gathered the following monthly operating costs from 2021 and her perceived understanding of what drives those costs follow each cost:
Month Maintenance Costs Machine Hours Health Insurance Number of Employees Shipping Costs Units Shipped
January $4,510 170 $8,570 63 $28,240 7,060
February $4,473 110 $8,570 73 $32,920 8,230
March $4,660 239 $8,570 89 $31,600 7,900
April $4,870 304 $8,570 102 $25,760 6,440
May $5,120 459 $8,570 84 $23,760 5,940
June $4,745 285 $8,570 85 $36,960 9,240
July $4,927 338 $8,570 88 $34,800 8,700
August $4,916 363 $8,570 80 $33,720 8,430
September $5,055 429 $8,570 90 $26,960 6,740
October $5,226 476 $8,570 101 $28,440 7,110
November $5,370 500 $8,570 91 $22,000 5,500
December $4,795 281 $8,570 101 $38,400 9,600
Required:
1. Which of the preceding costs is variable? Fixed? Mixed? Explain.
2. For any mixed or variable costs, plot those costs and determine if there is a cause-and-effect relationship with its perceived driver.
2. Using the high-low method, determine the cost function for each cost.
3. Combine the preceding information to get a monthly operating cost function for the Smith Corporation.
4. Next month, Smith expects to use 350 machine hours, have 90 employees, and ship 8,600 units. Estimate the total operating cost for the month.
1) Looking at the given data, maintenance costs, machine hours, shipping costs, and units shipped are variable costs.
2) Plotting the variable costs against their perceived drivers can help identify whether there is a cause-and-effect relationship between them.
1) The cost that varies based on changes in the level of activity is called a variable cost. Fixed costs remain constant regardless of the level of production or activity. Mixed costs contain elements of both variable and fixed costs like health insurance and shipping costs may be mixed costs as they have some fixed costs, such as salaries and rent, but also variable costs, such as insurance claims and shipping fees.
2) The Comptroller has identified four costs as variable, and it would be appropriate to plot these costs against their perceived drivers to determine if there is a cause-and-effect relationship. For example, maintenance costs could be plotted against machine hours, and shipping costs could be plotted against units shipped. If a strong correlation is found, it would suggest that these drivers have a direct impact on the costs. This would enable Bruckner Trusses to forecast costs more accurately and adjust production levels accordingly.
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The complete question is:
Bruckner Trusses wants to predict future operating costs and has learned that a cost equation can be derived using historical information. Bruckner’s Comptroller has gathered the following monthly operating costs from 2021 and her perceived understanding of what drives those costs follow each cost:
Required:
1. Which of the preceding costs is variable? Fixed? Mixed? Explain.
2. For any mixed or variable costs, plot those costs and determine if there is a cause-and-effect relationship with its perceived driver.
Christos offers a price break for an order of a larger quantity
of the item.
Tyler keeps a list of people who have signed up for the
company's e-mail newsletter.
Matsuko listens to her prospect's concerns about the
product and finds ways to satisfy the prospect's concerns.
Malik calls sales leads in order to find out how interested
they are in the product.
Delia and her prospect agree on a price, so she writes up a
receipt and sends the customer a bill for payment.
Becky has a meeting with a potential buyer where she
presents her proposal.
Identify sales leads
Negotiate details
Handle objections
Confirm prospects
Close the sale
Pitch the product
The right steps based on the terms are given below:
Malik reaches out to prospective customers to gauge their level of interest in the product by making sales calls.What is the newsletter about?Sell the item: During her appointment with a prospective customer, Becky showcases her suggestion.
Matsuko adeptly addresses any objections put forth by her prospect about the product by identifying solutions that address their concerns.
Christos proposes a discount for purchasing a greater amount of the product as a means of negotiating the specifics.
Tyler maintains a record of individuals who have subscribed to the corporation's electronic mail bulletin, verifying potential clients.
Finalize the transaction: After coming to an agreement on the price, Delia proceeds to create a receipt and send an invoice to her potential customer for payment.
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discuss five firm-wide controls to be instituted by an Audit firm to ensure Quality Control
There are five firm-wide controls to be instituted by an Audit firm to ensure Quality Control are:
Create a quality control system.Put qualified people in charge.Create and put into effect training programs.Verify that quality oversight policies and procedures are being followed.Conduct quality control inspections.Create a quality control system: A quality control system for their financial and auditing practice should be in place at audit companies.
Create and put into effect training programs: All staff levels should be included in this continuing training.
Put qualified people in charge: Each engagement should be given to qualified staff by audit companies.
Perform quality control reviews: To make sure that their work complies with industry standards and legal obligations, audit firms should conduct quality control evaluations of their work.
Verify that quality oversight policies and procedures are being followed: The observance of audit firms' quality control rules and procedures should be monitored.
As a result, the significance of the Audit firm to ensure Quality Control are the aforementioned.
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Attempts O
Do No Harm/3
6. The Fisher effect and the cost of unexpected inflation
Suppose the nominal interest rate on savings accounts is 11% per year, and both actual and expected inflation are equal to 6%.
Complete the first row of the table by filling in the expected real interest rate and the actual real interest rate before any change in the money supply.
Time Period
Before increase in MS
Immediately after increase
in MS
Nominal Interest
Rate
(Percent)
11
11
Expected
Inflation
(Percent)
6
Actual
Inflation
(Percent)
6
10
The unanticipated change in inflation arbitrarily harms
Expected Real Interest
Rate
(Percent)
Actual Real Interest
Rate
(Percent)
Now suppose the Fed unexpectedly increases the growth rate of the money supply, causing the inflation rate to rise unexpectedly from 6% to 10% per
year.
Complete the second row of the table by filling in the expected and actual real interest rates on savings accounts immediately after the increase in
the money supply (MS).
Now consider the long-run impact of the change in money growth and inflation. According to the Fisher effect, as expectations adjust to the new,
%per year.
higher inflation rate, the nominal interest rate will to
60,000 respectively in their Capital Accounts as on 1st January, 2016.
A introduced a further capital of Rs. 10,000 on 1st April, 2016 and another Rs. 5,000 on 1st July, 2016. On 30th September, 2016 A withdrew Rs. 40,000.
On 1st July, 2016, B introduced further capital of Rs. 30,000.
The partners drew the following amounts in anticipation of profit.
A drew Rs. 1,000 per month at the end of each month beginning from January, 2016. B drew Rs. 1,000 on 30th June, and Rs. 5,000 on 30th September, 2016.
% p.a. interest on capital is allowable and 10% p.a. interest on drawings is chargeable. Date of closing 31.12.2016. Calculate: (a) Profit-sharing ratio; (b) Interest on capital; and (c) Interest on drawings
Answer:
(a) Profit-sharing ratio:
To calculate the profit-sharing ratio, we need to know the total interest on capital and the total interest on drawings for both partners.
Total interest on capital for A = Rs. 37.50 (25 + 12.50)
Total interest on capital for B = Rs. 625
Total interest on drawings for A = Rs. 33.33
Total interest on drawings for B = Rs. 48.34 (6.67 + 41.67)
Total profit for the year = Rs. (1175 + 90625) - (385 + 54993.33) - (37.50 + 625 + 33.33 + 48.34) = Rs. 811.50
Profit-sharing ratio for A = (1175 - 385 - 37.50 - 33.33) / 811.50 = 0.476 = 47.6%
Profit-sharing ratio for B = (90625 - 54993.33 - 625 - 48.34) / 811.50 = 0.524 = 52.4%
Then the profit-sharing ratio is 47.6:52.4.
(b) Interest on capital:
Interest on capital for A = Rs. 37.50
Interest on capital for B = Rs. 625
(c) Calculation of interest on drawings:
A has drawn a total of Rs. 8,000 (Rs. 1,000 x 8 months) and B has drawn a total of Rs. 6,000 (Rs. 1,000 + Rs. 5,000) during the year. The interest on drawings will be calculated as follows:
A: 8,000 x 10% x 12/12 = Rs. 800
B: 6,000 x 10% x 6/12 = Rs. 300
then, the total interest on drawings is Rs. 1,100.
(d) Calculation of net profit:
The net profit for the year is calculated as follows:
Net profit = Gross profit - Interest on capital - Interest on drawings
Net profit = Rs. 55,000 - Rs. 4,500 - Rs. 1,100 = Rs. 49,400
(e) Calculation of profit-sharing ratio:
Since the interest on capital and drawings has been accounted for, the remaining profit of Rs. 49,400 will be shared between the partners in their profit-sharing ratio. The total capital of the partners as on 31st December, 2016 is Rs. 1,00,000 (Rs. 60,000 + Rs. 40,000 for A, and Rs. 60,000 for B) plus the additional capital introduced during the year.
A has introduced additional capital of Rs. 15,000 (Rs. 10,000 on 1st April and Rs. 5,000 on 1st July) and has withdrawn Rs. 40,000 during the year. Therefore, A's total capital at the end of the year is:
60,000 + 15,000 - 40,000 = Rs. 35,000
B has introduced additional capital of Rs. 30,000 during the year. Therefore, B's total capital at the end of the year is:
60,000 + 30,000 = Rs. 90,000
The profit-sharing ratio is:
A:B = 35,000:90,000 = 7:18
Then, A's share of the profit is:
7/25 x 49,400 = Rs. 13,888
And B's share of the profit is:
18/25 x 49,400 = Rs. 35,512
Therefore, the profit-sharing ratio between A and B is 7:18 and their respective shares of the profit are Rs. 13,888 and Rs. 35,512, respectively.
Black Ltd makes these products and is reviewing the profitability of its product line. You are given the following budgeted data about the firm for the coming year.
Product Sales (i.e units)
A
100,000
B
120,000
C
80,000
(Sh.)
(Sh.)
(Sh.)
Revenue
1,500,000
1,440,000
880,000
Costs:
Material
500,000
480,000
240,000
Labour
400,000
320,000
160,000
Overhead
650,000
600,000
360,000
1,550,000
1,400,000
760,000
Profit
(50,000)
40,000
120,000
The company is concerned about the loss on product A. It is considering ceasing occasion product of it and switching the spare capacity of 100 000 units to Product C.
You are told:
All products are sold.
25% of the labour cost for each product is fixed in nature.
Fixed administration overheads of Sh.900,600 in total have apportioned to each product on the basis of units sold and included in the overhead costs above. All other overhead costs are variable in nature
Ceasing production of product, A would eliminate the fixed labour charge associated with it and one-sixth of the fixed administration overhead apportioned in product A.
Increasing the production of product C by 100,000 units would mean that the fixed labour costs associated with product C would double the variable labour cost would rise by 20% and its selling price would have to be decreased by Sh.1.50 in order achieve the increased sales.
Required.
Prepare a marginal cost statement for a unit of each product on the basis of:
The original budget.
If product A is deleted.
Prepare a statement showing the total contra…… and profit for each product group on the basis of:
The original budget.
If product A is deleted.
Using your results from (a) and (b) advise whether product A should be deleted from the product range giving reasons for your decision.
Answer:
(a) Marginal Cost Statement:
Product A:
Revenue: Sh.15.00
Material: Sh.5.00
Labour: (25% of Sh.4.00) Sh.1.00
Variable Overhead: (50% of Sh.6.50) Sh.3.25
Total Variable Cost: Sh.9.25
Contribution Margin: Sh.5.75
Product B:
Revenue: Sh.12.00
Material: Sh.4.00
Labour: (25% of Sh.3.20) Sh.0.80
Variable Overhead: (50% of Sh.6.00) Sh.3.00
Total Variable Cost: Sh.7.80
Contribution Margin: Sh.4.20
Product C:
Revenue: Sh.11.00
Material: Sh.3.00
Labour: (25% of Sh.2.00) Sh.0.50
Variable Overhead: (50% of Sh.3.60) Sh.1.80
Total Variable Cost: Sh.5.30
Contribution Margin: Sh.5.70
(b) Total Contribution and Profit Statement:
Original Budget:
Product A:
Contribution: (Sh.5.75 x 100,000 units) = Sh.575,000
Fixed Overhead: (1/6 x Sh.150,100) = Sh.25,017
Profit: (Sh.575,000 - Sh.500,000 - Sh.400,000 - Sh.625,000 - Sh.25,017) = (Sh.950,017)
Product B:
Contribution: (Sh.4.20 x 120,000 units) = Sh.504,000
Fixed Overhead: (1/3 x Sh.900,600) = Sh.300,200
Profit: (Sh.504,000 - Sh.480,000 - Sh.384,000 - Sh.600,000 - Sh.300,200) = (Sh.260,200)
Product C:
Contribution: (Sh.5.70 x 80,000 units) = Sh.456,000
Fixed Overhead: (1/4 x Sh.900,600) = Sh.225,150
Profit: (Sh.456,000 - Sh.240,000 - Sh.200,000 - Sh.360,000 - Sh.225,150) = (Sh.569,150)
If Product A is deleted:
Product B:
Contribution: (Sh.4.20 x 120,000 units) = Sh.504,000
Fixed Overhead: (1/2 x Sh.900,600) = Sh.450,300
Profit: (Sh.504,000 - Sh.480,000 - Sh.384,000 - Sh.600,000 - Sh.450,300) = (Sh.510,300)
Product C:
Contribution: (Sh.5.70 x 180,000 units) = Sh.1,026,000
Fixed Overhead: (1/3 x Sh.900,600) = Sh.300,200
Profit: (Sh.1,026,000 - Sh.360,000 - Sh.320,000 - Sh.720,000 - Sh.300,200) = (Sh.325,800)
Based on the above calculations, it is advisable to delete Product A from the product range. This is because the company is making a loss of Sh.950,017 on Product A, which is greater than the total profit made on the other two products (i.e., Sh.829,350). Moreover, increasing
Explanation:
CENGAGE MINDTAP
Homework (Ch 30)
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Attempts
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4. Velocity and the quantity equation
Consider a simple economy that produces only air fryers. The following table contains information on the economy's money supply, velocity of money,
price level, and output. For example, in 2019, the money supply was $400, the price of a air fryer was $12.50, and the economy produced 800 air
fryers.
Year
2019
2020
Do No Harm/2
Fill in the missing values in the following table, selecting the answers closest to the values.you calculate.
Quantity of Money
(Dollars)
Quantity of Output
(Air fryers)
400
800
800
408
Velocity of Money
The money supply grew at a rate of
money
2019 to 2020 was
25
Price Level
(Dollars)
12.50
Nominal GDP
(Dollars)
from 2019 to 2020. Since air fryer output did not change from 2019 to 2020 and the velocity of
the change in the money supply was reflected
in changes in the price level. The inflation rate from
Answer:
Growth of money supply is calculated as follows:
Money supply growth= M 2011− M 2010 M 2010×100 Money supply
growth=336−320320×100%
The inflation rate from 2010 to 2011 is calculated as: Inflation rate=
P 2011− P 2010 P 2010×100 Inflation Rate=8.4−88×100=5%
The money supply grew at a rate of 5% from 2010 to 2011. Since pie output did not change from 2010 to 2011 and the velocity of money remains the same, the change in the money supply was reflected fully in changes in the price level. The inflation rate from 2010 to 2011 was 5%.
(Create an advertising plan)
Product: Cheetos Country: Australia
- Message and Creative Strategy: What information needs to be delivered to the target audience?
The message and creative strategy for Cheetos in Australia should focus on introducing the product and its unique features to the target audience.
It should highlight the delicious, cheesy flavor and the fun and crunchy texture of the snack. The message should also emphasize the convenience and portability of Cheetos, making it a perfect snack for on-the-go or as a quick treat in Australia.
Additionally,Cheetos the creative strategy should aim to create a fun and playful brand image that resonates with the target audience, possibly through engaging social media campaigns or partnerships with popular influencers Australia.
Overall, the message should convey the irresistible taste and convenience of Cheetos while appealing to the playful and fun-loving nature of the Australian market.
Learn more about Cheetos in Australlia here
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