Answer:
May 4
Debit Accounts Payable $860
Credit Bank/Cash account $860
Being entries to record payment for supplies purchased previously on Account
May 7
Debit Accounts Receivable $7,490
Credit Service revenue $7,490
Being entries to recognize service revenue made on accounts
May 8
Debit Supplies account $840
Credit Accounts Payable $840
Being entries to recognize supplies purchased on account
May 9
Debit Fixed assets account $1,940
Credit Cash account $1,940
Being entries to record equipment purchased with cash
May 17
Debit Salaries expense $500
Credit Cash account $500
Being entries to record payment of salaries
May 22
Debit Maintenance and repairs $810
Credit Accounts Payable $810
Being entries to recognize repairs expense
May 29
Debit Prepaid Insurance $1,190
Credit Cash account $1,190
Being entries to recognize advance payment for insurance
Explanation:
To purchase items on account is to purchase on credit. This creates a liability in the form of accounts payable. An increase in assets or expenses is a debit entry while a decrease is a credit entry. For liability or an income, a credit is an increase while a debit is a decrease.
Fast-food restaurants like McDonald's are replacing cashiers with touch-screen ordering kiosks. Currently the MPL for an additional cashier is 48 customers served per hour and the MPK for an additional kiosk is 32 customers served per hour. A cashier can be hired for wage of $15; a kiosk rents for $12.
(a) Is Whataburger using the optimal cost-minimizing mix of cashiers and kiosks? Explain.
(b) What can Whataburger do to improve its mix of inputs – hire more cashiers or fewer? Rent more kiosks or fewer?
Answer:
a. Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.
b. Whataburger should hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost
Explanation:
a. According to the given data we have the following:
Let "C" is a cashier.
"K" is a kiosk
MPC = 48 (Marginal Product of Cashier)
MPK = 32 (Marginal Product of Kiosk)
PC = $15 (cashier can be hired for a wage of $15)
PK = $12 (Kiosk rents for $12)
At optimal cost minimization point, (MPC / MPK) = (PC / PK)
(MPC / PC) = (MPK / PK)
(MPC / PC) = (48 / 15) = 3.2
(MPK / PK) = (32 / 12) = 2.67
Since the (MPC / PC) and (MPK / PK) is not equal. It implies Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.
b. We have to use the following:
(MPC / PC) > (MPK / PK)
i.e., 3.2 > 2.67
It means Whataburger hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost.
The statement of owner's equity shows a. only net income, beginning capital, and withdrawals b. only net income, beginning and ending capital c. only total assets, beginning and ending capital d. beginning and ending capital and all the changes in the owner's capital as a result of net income (loss), and withdrawals
Answer:
d. beginning and ending capital and all the changes in the owner's capital as a result of net income (loss), and withdrawals
Explanation:
The statement of owner's equity is a financial report that is prepared to indicate the changes in the owner's capital as a result of withdrawals, contributions, and net income or net loss. The structure of this report is beginning capital plus contributions plus net income less withdrawals which is equal to the ending capital. According to this, the answer is that the statement of owner's equity shows beginning and ending capital and all the changes in the owner's capital as a result of net income (loss), and withdrawals.
Some major technology companies have faced scrutiny in the past when it comes to labor and human rights on the overseas suppliers' side. What are the challenges of monitoring overseas suppliers (especially tier 3, tier 4, etc.) that are guilty of not following labor and human rights guidelines
Answer: The answer is provided below
Explanation:
With overseas factories that continue to move to new locations with a lower labour costs, the monitoring and controlling working conditions becomes a challenge. Research has shown that companies do little to monitor human rights violations in the low-cost supply chain locations.
A scandal involving Apple was reported in 2014 at a manufacturing building in China. The building which was owned by Catcher Technology Co., manufactures metal iPad covers for iPhones. Some findings included hiring discrimination, locked safety exits, excessive work hours, and also unpaid overtime each month totalling about $290,000 in owed wages. The factory was reported to have been dumping its industrial fluids and waste into nearby rivers, and also not providing proper toxic equipment for the employees.
Human rights of these people saw n those area are being abused by having them exposed to pollution, which can lead to lung diseases.
Companies like Apple have said that they are continuing to monitor situations like this, and are fixing them, but we still hear cases of more wrongdoings, therefore you have to wonder how vital these issues truly are to the firms involved.
The Atlanta Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Atlanta Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Cost Hours $24,000 5,000 $26,100 6,300 $34,700 7,900 $48,000 11,000 $38,300 9,250 What is the cost function
Answer:
Total cost= 4,000 + 4x
x= hours
Explanation:
Giving the following information:
Cost Hours
$24,000 5,000
$26,100 6,300
$34,700 7,900
$48,000 11,000
$38,300 9,250
First, we need to calculate the unitary variable cost and fixed cost. We will use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (48,000 - 24,000) / (11,000 - 5,000)
Variable cost per unit= $4 per unit
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 48,000 - (4*11,000)
Fixed costs= $4,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 24,000 - (4*5,000)
Fixed costs= $4,000
Now, we can express the cost formula:
Total cost= 4,000 + 4x
x= hours
Each of the following is a method by which to allocate joint costs except: Group of answer choices a. Chemical analysis. b. Relative sales value. c. Relative weight, volume, or linear measure. d. Relative marketing costs. g
Answer:
The correct answer is the option A: Chemical analysis.
Explanation:
To begin with, a chemical analysis consists in the study of chemical composition and structure of substances and it refers to the field of chemistry as its name indicates so therefore that it does not implicate the allocation of joint costs as all of the other methods. Moreover, this type of analysis is considered to be the principal basis technique by which every chemical information is obtanied and there are also two main brances in it, the qualitative and quantitative analysis.
Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $5.80 per standard direct labor-hour and fixed manufacturing overhead should be $3,087,000 per year.
The company’s product requires 4 pounds of material that has a standard cost of $12.50 per pound and 1.5 hours of direct labor time that has a standard rate of $13.90 per hour.The company planned to operate at a denominator activity level of 315,000 direct labor-hours and to produce 210,000 units of product during the most recent year. Actual activity and costs for the year were as follows:
Number of units produced 252,000
Actual direct labor-hours worked 409,500
Actual variable manufacturing overhead cost incurred $ 1,351,350
Actual fixed manufacturing overhead cost incurred $ 3,276,000
Required:
1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements.(Round your answers to 2 decimal places.)
Predetermined Overhead Rate = $15.60 per DLH
Variable Rate = $5.80 per DLH
FIxed Rate = $9.80 per DLH
3a. Compute the standard direct labor-hours allowed for the year’s production.
3b. Complete the following Manufacturing Overhead T-account for the year:
4. Determine the reason for the underapplied or overapplied overhead from (3) above by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answer:
1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements.
total standard overhead rate = $15.60standard variable overhead rate = $5.80standard fixed overhead rate = $9.803a. Compute the standard direct labor-hours allowed for the year’s production.
1.5 direct labor hours x 252,000 units = 378,000 hours
3b. Complete the following Manufacturing Overhead T-account for the year:
Manufacturing overhead
Debit Credit
Actual variable cost $1,351,350 Applied variable cost $2,192,400
Actual fixed costs $3,276,000 Applied fixed costs $3,704,400
$1,269,450
Adjustment for over applied
overhead expense $1,269,450
0 0
4. Determine the reason for the underapplied or overapplied overhead from (3)
two different factors affected the overhead costs:
Actual labor hours were higher than budgeted, since 378,000 should have been used to produce the 252,000 units, but 409,500 were used instead. That results in an unfavorable variance of 31,500 labor hours (8.3% variance). Even though labor hour variance was unfavorable, the actual overhead costs incurred were much lower than expected. The favorable variance regarding overhead costs was much larger than the unfavorable variance in labor hours. The actual total overhead per labor hour = $11.30 vs. $15.60 (standard), which represents a 27.6% favorable variance.Explanation:
variable overhead $5.80 per direct labor hour
fixed overhead $3,087,000
each unit requires:
4 pounds of materials at standard cost of $12.50 per pound
1.5 direct labor hours at standard rate of $13.90 per hour
fixed overhead per direct labor hour = $9.80
total budgeted production 210,000 units
total budgeted direct labor hours 315,000
actual units produced 252,000
actual direct labor hours 409,500
actual variable manufacturing $1,351,350
actual fixed manufacturing $3,276,000
applied variable cost = $5.80 x 378,000 labor hours = $2,192,400
applied fixed costs = $9.80 x 378,000 labor hours = $3,704,400
Trucks R' Us has a market capitalization of $142 million, $78 billion in BB rated debt, and $10 billion in cash. If Trucks R' Us' equity beta is 1.68, then their underlying asset beta is closest to:
Answer:
Their underlying asset beta is closest to is 1.08
Explanation:
According to the given data we have the following:
Debt is given as $78 billion
Equity is given as $142 billion
equity beta given as 1.68
Therefore, in order to calculate the underlying asset beta we would have to use the formula of the the equity beta for a levered firm as follows:
betaE =beta A [1 + (Debt / Equity)]
1.68 = \beta A [1 + ($78 B/ $142 B)]
1.68 = \beta A [1 + 0.5493]
betaA = 1.68 / 1.5493
betaA = 1.08
Their underlying asset beta is closest to is 1.08
Levine, Inc., has an ROA of 8.6 percent and a payout ratio of 33 percent.
What is its internal growth rate?
Answer:
Explanation:
Workings
Internal growth rate is the highest possible growth attained by a business without obtaining outside funding but with its retained earning.
Given information
ROA = 8.6%
Percentage Payout ratio = 33%
Internal growth rate = (ROA * Retention ratio) / 1 - (ROA * Retention ratio)
Retention ratio is the percentage earning that is no paid out in dividends
To calculate the retention ratio , we use the formula
Retention ratio = (1-percentage pay out ratio)
= 1 - 0.33 = 0.67
Substituting retention ratio for 0.67 in the inter growth rate formula
Therefore
Internal growth rate = (0.086*0.67)/1-(0.086*0.67)
0.05762/(1-0.05762) = 0.05762/0.94238
=0.0611
= 6.11%
An all-equity business has 100 million shares outstanding selling for $20 a share. Management believes that interest rates are unreasonably low and decides to execute a leveraged recapitalization (a recap). It will raise $1 billion in debt and repurchase 50 million shares. a. What is the market value of the firm prior to the recap? What is the market value of equity? b. Assuming the Irrelevance Proposition holds, what is the market value of the firm after the recap? What is the market value of equity? c. Do equity shareholders appear to have gained or lost as a result of the recap? Please explain. d. Assume now that the recap increases total firm cash flows, which adds $100 million to the value of the firm. Now what is the market value of the firm? What is the market value of equity? e. Do equity shareholders appear to have gained or lost as a result of the recap in this revised scenario?
Answer:
a) Market Value = $100 million × $20 = $2,000 million = $2 billion
Market value of equity would remain same = $2 billion
b) Market value would remain same after recap. Only market capitalization would reduce to half.
Market value of equity = 1 billion
c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.
d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.
e) Equity shareholders have gained due to increase in there share value
Explanation:
Jones, CPA, is auditing the financial statements of XYZ Retailing, Inc. What assurance does Jones provide that direct effect noncompliance that is material to XYZ’s financial statements and noncompliance that has a material but indirect effect on the financial statements will be detected?
A. Direct effect noncompliance: Reasonable; indirect effect noncompliance: none.
B. Direct effect noncompliance: Reasonable; indirect effect noncompliance: reasonable.
C. Direct effect noncompliance: Limited; indirect effect noncompliance: none.
D. Direct effect noncompliance: Limited; indirect effect noncompliance: reasonable.
Answer:
Direct effect noncompliance: Reasonable; indirect effect noncompliance: none.
Explanation:
Direct-effect noncompliance is a noncompiance that has a direct and material effects on financial statement amounts. Examples of direct-effect noncompliance include the violations of tax laws.
Indirect-effect noncompliance is a violation of laws that do not have direct relationships with the financial statements. Example of indirect-effect noncompliance include violations that have to do with environmental protection, occupational health and safety, etc.
Reasonable assurance can be described as a high level of assurance that is not an absolute one but it is however related to material misstatements.
Therefore, an assurance that Jones provide that direct effect noncompliance that is material to XYZ’s financial statements and noncompliance that has a material but indirect effect on the financial statements will be detected is direct effect noncompliance: Reasonable; indirect effect noncompliance: none.
1. Below are some of the components for Prufrock Corp. income statement for the year ending December 31t, 2016. Use the values to fill in the income statement and calculate the net income. All values are given in millions of dollars and there may be more lines provided than needed.
Sales $70,000
Tax Rate = 34%
Depreciation = $16,000
Interest Paid = $450
Cost of Goods Sold $35,000
Income Statement
Earnings Before Interest and taxes (EBIT)
Taxable Income (EBT)
Net Income
2. Prufrock Corp. has 4,000 million shares outstanding. If they do not reinvest any of their earnings what will be the dividend per share paid out this year?
3. Assume that the dividend from Part B will be paid out one year from today. After the initial dividend from part B is paid, the dividend is expected to grow at a rate of 4% per year. Investors require a 10% return on their investment, what is the current share price?
Answer and Explanation:
1. The computation of Earnings Before Interest and taxes, Taxable income and Net income is shown below:-
Earnings Before Interest = Revenue from sales - Cost of goods sold - Depreciation
= $70,000 - $35,000 - $16,000
= $19,000
Taxable Income = Earnings Before Interest - Interest paid
= $19,000 - $450
= $18,550
Net Income = Taxable Income - Taxes
= $18,550 - ($18,550 × 34%)
= $18,550 - $6,307
= $12,243
2. The computation of dividend per share is shown below:-
Dividend per share = Net income ÷ Number of shares outstanding
= $12,243 ÷ 4,000 million
= $3.06
3. The computation of current share price is shown below:-
Current share price = Current dividend ÷ (Expected return - Growth rate)
= $3.06 ÷ (10% - 4%)
= $3.06 ÷ 6%
= $51
Therefore we have applied the above formula.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5.4 pounds $ 3.00 per pound $ 16.20 Direct labor 0.4 hours $ 6.00 per hour $ 2.40 During the most recent month, the following activity was recorded:
a. Ten thousand four hundred pounds of material were purchased at a cost of $2.90 per pound.
b. The company produced only 1,040 units, using 9,360 pounds of material. (The rest of the material purchased remained in raw materials inventory.)
c. Five hundred and sixteen hours of direct labor time were recorded at a total labor cost of $6,192.
Required: Compute the materials price and quantity variances for the month. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct materials 5.4 pounds $ 3.00 per pound.
10,400 pounds of material was purchased at a cost of $2.90 per pound.
The company produced only 1,040 units, using 9,360 pounds of material.
To calculate the direct material price and efficiency variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (3 - 2.9)*10,400
Direct material price variance= $1,040 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 5.4*1,040= 5,616
Direct material quantity variance= (5,616 - 9,360)*3
Direct material quantity variance= $11,232 unfavorable
The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate:___________.
1. Social responsibility
2. Value conciousness
3. Gray marketing
4. Profit responsibility
5. Transactional marketing
Answer:
1. Social responsibility.
Explanation:
Social responsibility is an ethical principle or business practice that supports, that individuals or business entities are required to fulfil civic duties, such as welfare, charity, etc. for the benefit of the society at large.
Simply stated, it incorporates sustainable societal development into business models. A company's social responsibility involves the process of creating a balance between economic growth, societal welfare and largely it's environment.
In this scenario, Exxon was slow to own up to it's error and even slower in implementing cleanup activities of the pristine waters of Prince William Sound. Sequel to this, it was criticized by the residents of Alaska and others around the world for acting in a manner that would benefit the organization but not society.
Hence, Exxon did not demonstrate social responsibility.
State Street Beverage Company issues $805,000 of 9%, 10-year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true?
A) If the market rate of interest is 10%, the bonds will issue at a premium.
B) If the market rate of interest is 10%, the bonds will issue at a discount.
C) If the market rate of interest is 10%, the bonds will issue at par.
D) If the market rate of interest is 10%, the bonds will issue above par.
Answer:
Option (B) If the market rate of interest is 10%, the bonds will issue at a discount
Explanation:
Interest rate risk is defined as the risk changing which, interest rates will affect bond prices. When current interest rates are greater than a bond's coupon rate, the bond will be sold below its face value at a discount. When interest rates are less than the coupon rate, the bond can be sold at a premium--higher than the face value.
The Converting Department of Osaka Napkin Company uses the average cost method and had 2,000 units in work in process that were 60% complete at the beginning of the period. During the period, 25,200 units were completed and transferred to the Packing Department. There were 1,100 units in process that were 30% complete at the end of the period.
a. Determine the number of whole units to be accounted for and to be assigned costs for the period.
b. Determine the number of equivalent units of production for the period.
Answer:
Equivalent Units
Material cost = 26,560
Conversion Cost= 25,540
Explanation:
We would assume the company uses weighted average method of valuation.
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Material cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 100%× 1,360 1360
Total equivalent units 26,560
Conversion Cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 25%× 1,360 340
Total equivalent units
The Converting Department of Osaka Napkin Company uses the average cost method and had 2,000 units in work in process that were 60% complete at the beginning of the period.
A. To determine the number of whole units to be accounted for and to be assigned costs for the period, let's calculate the total equivalent units of production.
Whole units at the beginning of the period = 2,000 unit
Units started and completed during the period = 25,200 units
Whole units in process at the end of the period = 1,100 units
Total whole units to be accounted for:
= Whole units at the beginning + Units started and completed during the period + Whole units in process at the end
= 2,000 units + 25,200 units + 1,100 units
= 28,300 units
B. To determine the number of equivalent units of production for the period, we need to consider the percentage of completion for the units in process at the beginning and the units in process at the end.
Equivalent units of production for units in process at the beginning:
= Whole units at the beginning × Percentage of completion at the beginning
= 2,000 units × 60%
= 1,200 equivalent units
Equivalent units of production for units in process at the end:
= Whole units in process at the end × Percentage of completion at the end
= 1,100 units × 30%
= 330 equivalent units
Total equivalent units of production for the period:
= Equivalent units of production for units in process at the beginning + Equivalent units of production for units in process at the end + Units started and completed during the period
= 1,200 equivalent units + 330 equivalent units + 25,200 units
= 26,730 equivalent units
Therefore, the number of equivalent units of production for the period is 26,730 units.
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At the time a $450 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of $100. The vouchers include: postage, $90; business lunches, $135; delivery fees, $80; and office supplies, $45. Which of the following is not recorded when recognizing expenditures from the petty cash fund?a. Debit petty cash, $350b. Debit supplies, $45c. Debit postage expense, $90d. Credit petty cash, $350
Answer:
The entry that should not be recorded is debit petty cash, $300 . Option A.
Explanation:
Vouchers recorded for expenses:
Postage
Business lunches
Delivery fees
Office supplies
The journal entry when recognizing expenditures from the petty cash fund should be as under:
Accounts : Credit Debit
Postage $ 90
Business lunches $ 135
Delivery fees $ 80
Office supplies $ 45
Petty Cash $350
The entry that should not be recorded is debit petty cash, $300
Save-the-Earth Co. reports the following income statement accounts for the year ended December 31. Sales discounts $ 890 Office salaries expense 3,400 Rent expense—Office space 2,900 Advertising expense 780 Sales returns and allowances 390 Office supplies expense 780 Cost of goods sold 11,800 Sales 48,000 Insurance expense 2,400 Sales staff salaries 3,900 Required: Prepare a multiple-step income statement for the year ended December 31.
Answer:
Multiple-step income statement for the year ended December 31.
Sales 48,000
Less Sales returns and allowances 390
Net Sales 47,610
Less Cost of goods sold (11,800)
Gross Profit 35,810
Less Operating Expenses :
Sales discounts 890
Office salaries expense 3,400
Rent expense—Office space 2,900
Advertising expense 780
Office supplies expense 780
Insurance expense 2,400
Sales staff salaries 3,900 (15,050)
Operating Income / (Loss) 20,760
Explanation:
The multiple-step income statement shows separately profit derived from Primary Activities of an Entity (Operating Profit) and the profit that includes Secondary Activities of an Entity (Net Profit)
In this case, Save-the-Earth Co derived its profit only from Primary Activities.
Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is pequals=140140minus−22q, where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates separately with each person who joins the club and can therefore charge individual prices. This manager has a good idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can play as many rounds as he wants at $2020, which is the marginal cost his round imposes on the Club. What membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round. How much extra profit does the Club earn by using two-part pricing? The profit-maximizing membership fee (F) is $nothing. (Enter your response as a whole number.)
Answer: $1800
Explanation:
Here is the correct question:
Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is p=140-2q, where q is the number of rounds of golf that he plays per year. The manager of the Northlands Club negotiates separately with each person who joins the club and can therefore charge individual prices. This manager has a good idea of what Joe's demand curve is and offers Joe a special deal, where Joe pays an annual membership fee and can play as many rounds as he wants at $20, which is the marginal cost his round imposes on the Club. What membership fee would maximize profit for the Club? The manager could have charged Joe a single price per round. How much extra profit does the Club earn by using two-part pricing? The profit-maximizing membership fee (F) is $nothing. (Enter your response as a whole number.)
Answer:
p = 140 - 2q
The profit-maximizing membership fee will be equal to total surplus
Therefore, the number of rounds that Joe played will be,
P = MC
20 = 140 - 2q
2q = 140 - 20
2q = 120
q = 120/2
q = 60
Total surplus = 1/2 × (vertical intercept of the demand curve - marginal cost) × the quantiy of rounds.
Total surplus = 1/2 × (140 - 20) × 60
= 1/2 × 120 × 60
= 3600
Therefore, the maximum membership fee will be = $3600.
If the firm charge Joe a single price , then the rounds provided will be such that MR = MC
Total revenue = price × quantity
TR = (140 - 2q) × q
TR = 140q - 2q²
MR = dTR/dQ = 140 - 4q
We then equate MR = MC
140 - 4q = 20
4q = 140 - 20
4q = 120
q = 120/4
q = 30
P = 140 - 2q
P = 140 - (2 × 30)
P = 140 - 60
P = 80
Therefore, the profit if a single price is charge will be:
= TR - TC = pq - MC×q = (P-MC)×Q
= (80-20) × 30
= $1800
Therefore, the increase in the profit by two-par pricing will be:
=Membership fee - Profit of single price charge
= $3600 - $1800
= $1800
Is it reasonable to expect that managers can measure their social and environmental performance on the same level as they measure their financial performance with a triple bottom line?
Answer:
The correct answer is: No, it is not reasonable to expect that managers can measure their social and environmental performance on the same level as they measure their financial performance.
Explanation:
To begin with, the concept known as triple bottom line refers exactly to the measuring of the the financial, social and environemental performances from part of an organization. However, it is not posible to measure them in the same way, due to the fact that they are very different terms with different factors. Therefore that in order to measure one of them there will be an unique way of doing it that can not be copy in order to measure the other. That is why if the organization want to measure the financial performance it will look into the numbers but with the social or environmental performance it can not do that.
Levi Corporation (a U.S. company) has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On December 2, 20X1, Levi sold confectionary items to a foreign company at a price of 50,000 yen when the direct exchange rate was 1 yen = $1.15. The account has not been settled as of the year ended December 31, 20X1, when the exchange rate had changed to 1 yen = $1.12. The foreign exchange gain or loss on Levi's records at year-end for this transaction will be
Answer: $1500 loss
Explanation:
From the question, On December 2, 20X1, Levi sold confectionary items to a foreign company by selling at a price of 50,000 yen when direct exchange rate was 1 yen = $1.15.
Sale value in dollar = 50,000 × 1.15
= $57500
The account has not been settled as of the year ended December 31, 20X1, when exchange rate had changed to 1 yen = $1.12.
Sale value in dollar = 50,000 × 1.12
= $56000
Foreign exchange loss:
= $57500 - $56000
= $1500 loss
Outline the steps that you would take to ensure a successful conversion from the existing call center system to the new EHR-compatible system. Defend your response. Who should be involved in the conversion planning and implementation
Answer:
I. The steps to be taken are:
Scoping the project: Every project must have a scope. That is a scope of what needs to be achieved. Engaging a conversion expert: One must look out for someone experienced and whose prices are affordable. It's best to seek out references before engaging a conversation specialist and if possible, background checks done as he or she will be handling very sensitive data.Execution of the Project: Usually, the first version of the project will have some bugs which will necessitate upgrades and updates. These updates and upgrades are part of the process.Collaborating with the Conversion Specialist: During projects of this nature, one will need to work with other professionals outside of ones normal workforce. This human to human interaction may look simple but is critical as the specialist cannot do his or her job if they are not guided by someone internal who knows the process very well.Testing, Validating, and IteratingAfter the old records have been installed onto the new EHR system, it will be time to see if it really works. At this stage, debugging is very frequent. What works will be noted and what doesn't is fixed. Then the system is tested all over again.
6. Ensure that Import and Extraction work as planned.
Extraction and Importation are key features of an efficient EHR system. Data needs to be imported into the database, and reports/ information need to be extracted at one point or the other.
7. Tidying up Work Flow
The EHR is built to ease the administration of patients. If there are any errors or inadequacies, it will be highlighted at this stage. The conversion specialist will be available to ensure that any correction in this regard is effected.
8. Launch: This simply means going live with the new system.
II Those who will be responsible for the conversion planning and implementation are:
1. Internal Staff. Depending on the organisation, Heads of teams and key members of staff whose opinions are valued and who understand the system and the big picture (in terms of what the strategic objective of the new system) will be on the conversion, planning and implementation team.
2. Conversion Specialist will also be required. This person most likely will be a third party and is very crucial to the project.
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A company uses direct labor costs as it allocation base. Management estimates the company will incur $150,000 of direct labor cost during the year and total overhead costs of $200,000. What is their predetermined overhead rate? 1.33% 133% 50% 75%
Answer:
133.33%
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Total overhead cost ÷ direct labor cost
where,
Total overhead cost is $200,000
And, the direct labor cost is $150,000
Now placing these values to the above formula
So, the predetermined overhead rate is
= $200,000 ÷ $150,000
= 1.33%
We simply applied the above formula
Chobani's equipment runs for 10 hours and must be idle for 4 hours while being cleaned. Its plants operate day and night all week long. What are the implications for the company's purchasing, inventory control, scheduling and quality control functions. Your answer should be detailed and well thought out.
Answer:
For the company's purchasing ;leasing the machine for the active period i.e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated
For the company's inventory control; if the company leases the equipment that would reduce it's setup cost keeping its inventory low
For the company's scheduling; scheduling deals with completing a job within a given time and it is very essential to utilize the productive time
For the company's quality control functions; the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount
Explanation:
Running time = 10 hours. Idle time = 4 hours
The implications of the machine:
For the company's purchasing ; since the equipment has to be used everyday and after the 10 hours it will run, it has to be ideal for 4 hours for it to be cleaned and maintained every day. therefore the purchasing department of the company will have to sort for an alternative equipment which would be less expensive and would have less idle time during cleaning and maintenance. but if this alternative is more expensive, then leasing the machine for the active period i.e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated
For the company's inventory control : inventory for every company is the stock of the company that remains unsold and every company should aim to keep this as low as possible and one way is by reducing setup costs and safety cost. if the company leases the equipment that would reduce it's setup cost keeping its inventory low
For the company's scheduling : scheduling deals with completing a job within a given time and it is very essential to utilize the productive time i.e 10 hours of the equipment in order to avoid unwanted direct and indirect cost.
For the company's quality control functions: As the equipment runs for 10 hours day and night in other to meet up with the production and scheduling the quality of the products might be adversely affected hence the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount
Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 100 more hours of machine time can be obtained?
Answer:
$8,000
Explanation:
khaki shorts khaki pants
machine minutes per unit 15 24
contribution margin per unit $16 $32
CM per machine minute $1.067 $1.33
minimum demand 3,000 3,000
machine minutes required 45,000 72,000
total machine minutes available 288,000
total machine minutes remaining 171,000
production 0 7,125
total production 3,000 10,125
total contribution margin $48,000 $324,000
if 100 more machines hours are added, then production time increases by 6,000 minutes which can be used to produce 250 more khaki pants. Contribution margin will increase by 250 x $32 = $8,000
I calculated contribution margin per minute, but you could also calculate contribution margin per hour to determine which product is more profitable. Contribution margin per hour for shorts = $64, and for pants = $80. The answer will not change.
Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,000 2 1,230 3 1,450 4 2,190 a. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4
Answer:
Total= $7,114.32
Explanation:
Giving the following information:
Cash Flow:
1 $ 1,000
2 1,230
3 1,450
4 2,190
Discount rate= 9%
To calculate the future value, we need to use the following formula on each cash flow:
FV= PV*(1+i)^n
Cf1= 1,000*1.09^4= 1,411.58
Cf2= 1,230*1.09^3= 1,592.89
Cf3= 1,450*1.09^2= 1,722.75
Cf4= 2,190*1.09= 2,387.1
Total= $7,114.32
According to the Coase theorem, private parties can negotiate to an efficient solution in the presence of externalities if the is (are) relatively low.Suppose Jeremy, Francis, and Andrew are part of Mu Epsilon Nu, a college fraternity known for its very loud, rambunctious weekend parties. The parties annoy many of the residents in nearby apartment complexes due to the loud music and blaring neon lights. This is a(n)example:________
a.external cost
b. positive externality
c. neither
Suppose that M = 300, P = 100, and Y = 6. Then the velocity of circulation equals Select one: a. 2.00. b. 3.00. c. 50 d. 0.50. e. 0.02.
Answer:
a. 2.00.
Explanation:
The formula and the computation of the velocity of circulation are shown below:
According to the quantity money theory
M = Total money
V = Velocity
P = Price level
Y = Volume of goods and services
As we know that
Total amount of money in the economy × velocity = Price level × volume of goods and services
300 × velocity = 100 × 6
300 × velocity = 600
So, the velocity is
= 600 ÷ 300
= 2
Hence, the first option is correct
The acid-test ratio Group of answer choices is a quick calculation of an approximation of the current ratio. does not include all current liabilities in the calculation. does not include inventory as part of the numerator. does include prepaid expenses as part of the numerator.
Answer:
does not include inventory as part of the numerator
Explanation:
The acid test ratio is somewhat similar to the current ratio. Both ratios are called liquidity ratio in which the short term assets are converted into cash to pay its short term liabilities. But the only difference in these two is
Current ratio includes current assets and current liabilities
While on the other hand, the acid test ratio or quick ratio include quick asset and current liabilities
Quick asset = Total Current assets - inventory - all other current assets
As inventory takes more time to convert into cash
Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats. Group of answer choices
Answer:
Mark has the absolute advantage in the production of bats.
Mark has the comparative advantage in the production of bats
Explanation:
The absolute advantage is a principle in which a party is able to produce a good more efficiently than the others. In this situation, Mark can produce 40 bats while Katie can produce 30 bats which indicates that Mark can produce them more efficiently having an absolute advantage in the production of bats.
The comparative advantage is a principle in which a party has the ability to produce a good at a lower opportunity cost than others. In this situation:
Baseballs Bats
Mark 50 40
Katie 60 30
The opportunity cost for Mark of producing 1 bat is producing 1.25 baseballs and the opportunity cost for Katie of producing 1 bat is producing 2 baseballs. This means that Mark has a lower opportunity cost and the comparative advantage in the production of bats.
Neil Andrews is the marketing manager for the National Basketball Association. Neil analyzes and tracks his marketing campaigns to determine the best success rate per project for increasing ticket sales. Neil uses an internal KPI to track his marketing campaign success. Which of the following would be an internal KPI Neil would use to track his marketing campaigns?
A. Marketing campaign market share eBook
B. Marketing campaign percentage of fans purchasing Sports Ilustrated magazine
C. Marketing campaign advertiser revenue sales
D. Marketing campaign ROI
Answer:
Option D
Explanation:
Neil Andrews, communications coordinator for that National Basketball Association. Neil evaluates and monitors its marketing strategies to assess the optimal rate of performance for a campaign to boost ticket prices. The ROI marketing campaign will be an internal KPI Neil used to track its marketing techniques.
Apps that are permitted to be installed on the company network, such as IM software and company computer equipment used mostly for personal purposes on online communities, are two fields that should be handled by organizational security administrators.
Thus, from the above we can conclude that the correct option is D.