eone Corporation sells a product for $21 per unit, and the standard cost card for the product shows the following costs Direct material $2 Direct labor 3 Overhead (70% fixed) 10 Total $15 Refer to Leone Corporation. Leone received a special order for 1,200 units of the product. The only additional cost to Leone would be foreign import taxes of $2 per unit. If Leone is able to sell all of the current production domestically, what would be the minimum sales price that Leone would consider for this special order
Answer:
Leone Corporation
The minimum sales price that Leone should consider for this special order is:
= $16.20 per unit.
Explanation:
a) Data and Calculations:
Normal selling price = $21
Standard costs:
Direct materials $2
Direct labor 3
Overhead (70% fixed) 10
Total $15
Variable costs:
Direct materials $2
Direct labor 3
Overhead (30% fixed) 3
Total $8
Contribution per unit $13 ($21 - $8)
Contribution margin ratio = $62%
Costs of special order:
Variable costs $8 * 1,200 = $9,600
Import taxes $2 * 1,200 = 2,400
Total variable costs = $10
Selling price = $16.20 ($10 * 1.62)
Seymour Corporation manufactures batons. Seymour can manufacture 300,000 batons a year at a variable cost of $750,000 and a fixed cost of $450,000. Based on Seymour's predictions, 240,000 batons will be sold at the regular price of $5.00 each. In addition, a special order was placed for 60,000 batons to be sold at a 40 percent discount off the regular price. The unit relevant cost per unit for Seymour's decision is Select one: a. $3.00 b. $1.50 c. $2.50 d. $4.00
Answer:
c. $2.50
Explanation:
Calculation to determine The unit relevant cost per unit for Seymour's decision is
Unit relevant cost per unit=Variable cost/Number of banton units manufacture
Let plug in the formula
Unit relevant cost per unit=$750,000/350,000 units
Unit relevant cost per unit=$2.50
Therefore The unit relevant cost per unit for Seymour's decision is $2.50
The table shows Robinson Crusoe's production possibilities.
If Crusoe increases production of berries from 84.0 pounds to 104.0 pounds and production is efficient, his opportunity cost of producing 1 pound of berries is 1.3 pound of fish.
Crusoe's opportunity cost of producing an extra pound of berries____as he produces more berries
A. increases.
B. decreases.
C. sometimes increases and sometimes decreases.
D. does not change.
Possibility Berries (pounds) Fish (pounds)
A 0 144.0
B 16.0 140.0
C 30.0 132.0
D 42.0 120.0
E 52.0 104.0
F 84.0 84.0
G 60.0 60.0
H 66.0 32.0
I 70.0 0
Answer:
increases
Explanation:
Demand increases in an increasing-cost industry that is initially in long-run competitive equilibrium. After full adjustment, price will be
Answer: above its original value
Explanation:
An increasing-cost industry simply means the industries whereby there's a rise in the average costs when the output increases.
Demand increases in an increasing-cost industry which is in long-run competitive equilibrium. After full adjustment, price will be above its original value.
A put option that expires in six months with an exercise price of $45 sells for $2.34. The stock is currently priced at $48, and the risk-free rate is 3.5 percent per year, compounded continuously. What is the price of a call option with the same exercise price
Answer: $6.12
Explanation:
The price of a call option with the same exercise price will be calculated thus:
According to Put-Call Parity, it should be noted that the Call Price will be:
= Put Price + Stock Price - [Exercise Price × e ^-(r × t)]
= $2.34 + $48 - [$45 × e ^ -[0.035 * (6/12)]]
= $50.34 - [$45 × 0.9827]
= $50.34 - $44.22
= $6.12
Therefore, the price is $6.12
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.01 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue$332,000$233,000$311,000 Cost of goods sold 204,000 116,000 183,000 Miscellaneous operating expenses 36,000 30,000 33,000 Average invested assets 1,310,000 920,000 1,105,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division.
Answer and Explanation:
The computation is shown below:
1. The return on investment is
As we know that
Return on Investment = Net operating profit ÷ average invested assets × 100
But before that the Net Operating Profit should be determined
Particulars Peak View Grand
Sales revenue $332,000 $233,000 $311,000
Less: Cost of
goods sold ($204,000) ($116,000) ($183,000)
Miscellaneous
operating Expenses ($36,000) ($30,000) ($33,000)
Net Profit $92,000 $87,000 $95,000
Now
Return on Investment is
For peak, it is
= $92,000 ÷ $1,310,000
= 7.02%
for view, it is
= $87,000 ÷ $920,000
= 9.46%
for grand, it is
= $95,000 ÷ $1,105,000
= 8.60%
2. The residual income is
We know that
Residual Income = Net operating income - (Minimum required rate of return × average invested assets)
For Peak, it is
= ($92,000 - (5.01% of $1,310,000)
= $26,369
For view, it is
= ($87,000 - (5.01% of $920,000)
= $40,908
And, for grand, it is
= ($95,000 - (5.01% of $1,105,000)
= $39,640
A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can, given the reserve requirement. a. It has $1,250 in reserves and $8,750 in loans. b. It has $8,000 in reserves and $2,000 in loans. c. It has $800 in reserves and $9,200 in loans. d. It has $80 in reserves and $9,920 in loans.
Answer:
c. It has $800 in reserves and $9,200 in loans.
Explanation:
Calculation to determine the given reserve requirement
Reserves=8%*$10,000
Reserves=$800
Loans=$10,000-$800
Loans=$9,200
Therefore given the reserve requirement It has $800 in reserves and $9,200 in loans.
1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented
Answer: Hello your question is incomplete below is the complete question
answer :
1) attached below
2a) Increases by $25,176
Explanation:
1) Attached below is the contribution format income statement
2a) Determine by how much the net operating income will change
monthly advertising increment = $25,000
Assumed increase in division's sales = 16%
first step : determine increment in contribution margin of west division
= 313,600 * 0.16 = 50,176
change in net operating income = 50176 - monthly advert increment
= 50176 - 25,000 = $25,176 ( increases )
The following persons own Schlecht Corporation, a non-U.S.entity.
Jim, U.S. individual 35%
Gina, U.S. individual 15%
Marina, U.S. individual 8%
Pedro, U.S. individual 12%
Chee, non-U.S. individual 30%
None of the shareholders are related. Subpart F income for the tax year is $300,000. No distributions are made. Which of the following statements is correct?
a. Schlecht is not a CFC.
b. Chee includes $90,000 in gross income.
c. Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC.
d. Marina includes $24,000 in gross income.
Answer: Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC.
Explanation:
From the options given, the correct statement is that "Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC".
A controlled foreign corporation (CFC) refers to a corporate entity which is duly registered and then conducts business in a different country than where it was registered and where the controlling owners lives.
A controlled foreign corporation (CFC) is a foreign corporation whereby more than 50% of the total voting power is owned by the person.
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:
Answer:
the principal-agent problem
Explanation:
In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.
So the above should be the answer
Compute the income tax liability for each of the following unrelated C corpo- rations.
a. Darter Corporation has taxable income of $68,000.
b. Owl Corporation has taxable income of $10,800,000.
c. Toucan Corporation, a personal service corporation, has taxable income of $170,000.
Answer and Explanation:
The computation of the income tax liability for each situation is given below:
a. Tax Liability on Darter Corporation is
= 21% of $68,000
= $14,280
b. Taxable liability On Owl Corporation is
= 21% of $10,800,000
= $2,268,000
c. Tax liability on On Toucan Corporation, a personal service corporation is
= 21% of $170,000
= $35,700
In this way it should be calculated
Roy Micky wants to open a new nakamal (kava bar) in port villa. He knows he is entering a highly competitive market but is determined to give it a ago as it is something his family have always wanted.
There are 96 other Nakamals in port vila that Roy will have to compete with. In addition to this, he does not have an established presence in the market. There are just 2 of his concerns. The others are required to come from you.
1) List and justify (from an operations perspective) 5 key things that he should consider in setting up his business. In answering this question, this of the different chapters that have ccomprised this course - you should get a point from each chapter. 20 marks
NB : This question is asking for 5 points of concern - each carries 4 marks.
Answer:
a) The financial return on investment
b) Demand curve, Is the demand of nakamal is rising or is constant
c) Develop a strategy to create a customer base
d) Devise marketing strategy
e) Value addition in his product and service in order to stand out of others.
Explanation:
a) The financial return on investment
b) Demand curve, Is the demand of nakamal is rising or is constant
c) Develop a strategy to create a customer base
d) Devise marketing strategy
e) Value addition in his product and service in order to stand out of others.
roles of competition policy authorities in south Africa
Answer:
I hope you understand please follow me
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.
1. Record the investment in bonds.2. Record receipt of the first interest payment on June 30.
Answer and Explanation:
The journal entries are shown below;
a. Investment Dr $37,282
To Cash $37,282
(being the investment in bonds is recorded)
b.
Cash (($1,000 × $40) × 0.07 × 6 ÷ 12) $1,400
Investment $91
To interest revenue ($37,282 ×8% × 6 ÷ 12) $1,491
(Being the first interest payment is recorded)
On January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On March 31, 2013, Pennington prepared its 10-Q and marked the securities down to their market value of $85,000. On April 4, 2013, Pennington sold the securities for $93,000 cash. Which of the following items would be increased by the sale of the marketable securities?
a. Cash from Financing Activities
b. Net Income
c. Marketable Securities
d. Accumulated Other Comprehensive Income
e. Cash from Investing Activities
Answer:
b. Net Income
e. Cash from Investing Activities
Explanation:
Calculation to determine Which of the following items would be increased by the sale of the marketable securities
Using this formula
Gain from investment = Selling price of the security - Value of the security
Let plug in the formula
Gain from investment= $93,000 - $85,000
Gain from investment= $8,000
Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.
Therefore the items that would be increased by the sale of the marketable securities are :
b. Net Income
e. Cash from Investing Activities
. Sam Rothstein wants to borrow $15,500 to be repaid in quarterly installments over five years at 16% compounded quarterly. How much will his payment be
Answer:
$1,140.52 per Quarter
Explanation:
Loan Amount (P) = $15,500
Quarterly Interest Rate (n) = 4.00% [16.00% / 4]
Number of period (n) = 20 Periods [5 * 4]
Quarterly Loan Payment = [P * {r*(1+r)^n} ] / [(1+r)^n - 1]
= [$15,500 * {0.04 * (1+0.04)^20}] / [(1+0.04)^20 - 1]
= [$15,500 * {0.04 * 2.1911231}] / [2.1911231 - 1]
= [$15,500*0.0876449] / 1.1911231
= $1,358.50 / 1.1911231
= $1,140.52 per Quarter
Vaughn Manufacturing recorded operating data for its auto accessories division for the year. Sales $810000 Contribution margin 280000 Total direct fixed costs 90000 Average total operating assets 250000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $40000, assuming fixed costs are held constant?a. 12%.b. 25%.c. 45%.d. 18%.
Answer:
sfffffffffffffdsfdsdfbgdb
Explanation:
1. A manufacturer has 750 meters of cotton and 1000 meters of polyester. Production of a sweatshirt requires 1 meter of cotton and 2 meters of polyester, while production of a shirt requires 1.5 meters of cotton and 1 meter of polyester. The sale prices of a sweatshirt and a shirt are $30 and $24, respectively. How many of each type need to be sold to maximize sales
Answer:
500 units of sweatshirt and zero unit of shirt need to be sold to maximize sales.
Explanation:
Note: See the attached excel file for the calculation of the total revenue of each type.
From the attached excel file, we have:
Highest units of sweatshirt that can be sold = 500Highest units of shirt that can be sold = 500The highest total revenue is $15,000 (in bod red color) and this occurred when 500 units of sweatshirt is sold and zero units of shirt is sold.Therefore, 500 units of sweatshirt and zero units of shirt need to be sold to maximize sales.
When workers move from one job to another it is
described as
A Job Rotation
B Job Enrichment
C Job Enlargement
D Job Simplification
Michel Company owns 75% of the outstanding common stock of Aber Corp. On its current consolidated income statement, Michel Company should report:
Answer:
Michel Company
On its current consolidated income statement, Michel Company should report:
the consolidated revenue and expenses of Michel Company and Aber Corp.
Explanation:
There is a 25% (100% - 75%) share for non-controlling or minority interest in the net income or loss of the Aber Corp. With this, readers of the financial statements of the parent company, Michel Company, are well-informed that only 75% of the net income or loss from the Aber Corp. actually belongs to the stockholders of Michel Company.
Phil Morris holds an executive position at The Martin Group. Phil has improved the quality of the data gathered by the organization and has also created a model to decrease the cost of managing data while increasing the value of the data gathered. Based on this description, what position does Phil hold at The Martin Group
Answer:
chief data officer (CDO)
Explanation:
A chief data officer is a person in an organisation that uses information as an asset through various practices like analysis, data processing, data mining, or information trading.
He is responsible for data governance within an organisation.
Valuable insights that will be profitable to the organisation are made by the Chief Data Officer.
In the given instance Phil has improved the quality of the data gathered by the organization and has also created a model to decrease the cost of managing data while increasing the value of the data gathered.
Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the _____. a. equilibrium price b. skimmed price c. grounded price d. parity price
Answer:
A)equilibrium price
Explanation:
From the question we are informed about Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the equilibrium price. The equilibrium price can be reffered to as only price in which both desires of consumers and that of producers agree, this can be explained as a situation where by quantity demanded is been equal to quantity supplied. The theory stressed that movement of market tends toward this price, it can also be regarded as "market-clearing price"
C programming language is developed and designed by
Answer:
C programming language is developed Dennis M. Ritchie in 1970s.
Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institutions as investment banks, commercial banks, financial services corporations, credit unions, pension funds, life insurance companies, mutual funds, exchange traded funds, hedge funds, and private equity companies play a key role in facilitating these transfers.
Required: Identify the financial institution based on each description given below:
a. These financial conglomerates provide a range of services, such as investment banking, commercial banking, and financial advising.
b. These are financial intermediaries that share the financial risk of the untimely demise of their policyholders, who make regular payments to financial intermediaries for taking this risk.
c. With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors.
Answer:
a. financial services corporations
b. life insurance companies
c. hedge funds
Explanation:
a. financial services corporations
The financial services corporations provide different services, to people such as investment banking, commercial banking, and financial advising.
b. life insurance companies
They're financial intermediaries that share the financial risk of the untimely demise of their policyholders, who make regular payments to financial
c. hedge funds
Hedge fund is an investment that protects the portfolios from the uncertainties in the market while maximizing returns. The investment objective is to offset potential losses by investing in counterbalancing securities.
Are executive pay levels unreasonable? Why or why not
Answer:
In my opinion, some corporate salaries for high-ranking executives are excessively high for the functions that these people have in these companies and the impact that their work has on their economy and on the well-being of society as a whole.
It is that, although we live in a capitalist, free and democratic society in which everyone has the right to earn the sum of money that their employer is willing to pay, the truth is that in certain cases (or in most cases ) Said salaries are not justified based on the contributions that said executives make in their day-to-day work.
When Elle's Espresso Bar increased its price by 10 percent, the quantity of coffee that Elle sold decreased by 40 percent.
When Elle and all her competitors cut their prices by 10 percent, the quantity of coffee sold by Elle increased by only 4 percent.
The price elasticity of demand for Elle's Espresso Bar coffee is
nothing.
Answer:
4
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
40 / 10 = 4
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Many market researchers have their favorite research approaches or techniques, although different researchers often have different preferences. Some researchers maintain that the only way to really learn about consumers or brands is through in-depth, qualitative research. Others contend that the only legitimate and defensible form of marketing research uses quantitative measures.
Take a position: The best marketing research is quantitative in nature versus the best marketing research is qualitative in nature.
Answer:nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnioce
Explanation:
The best research in marketing is qualitative research. Through close observation or in-person interactions, qualitative market research determines consumer motivation. While quantitative research primarily focuses on what customers do, qualitative research focuses on why they behave the way they do.
What is the concept of the excerpt?This is an important goal of qualitative research since it allows for a deeper knowledge of consumer motivation and emotion. The qualitative method is most suited for marketing since it will enable us to comprehend why a customer chooses to use a specific brand of good and what drives them to have a need for that good.
A quantitative market study involves gathering information through polling, surveys, and other means. By giving them questionnaires or conducting direct interviews, you can gather information on how consumers behave in relation to the demand for a particular good using this strategy.
Thus, The best research in marketing is qualitative research.
For more information about concept of the excerpt, click here:
https://brainly.com/question/18723483
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Swifty Football Co. had a player contract with Watts that is recorded in its books at $8340000 on July 1, 2020. Blossom Football Co. had a player contract with Kurtz that is recorded in its books at $10700000 on July 1, 2020. On this date, Swifty traded Watts to Blossom for Kurtz and paid a cash difference of $1070000. The fair value of the Kurtz contract was $12600000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Swifty's books at:_______.
Answer:
"$9,410,000" is the appropriate answer.
Explanation:
Given that,
Fair value,
= $12600000
Cash difference,
= $1070000
Books value before transaction,
= $8340000
Now,
The deferred gain will be:
= [tex](Fair \ value-Cash \ difference)-Books \ value \ before \ transaction[/tex]
= [tex](12600000 -1070000)-8340000[/tex]
= [tex]11530000 -8340000[/tex]
= [tex]3,190,000[/tex] ($)
hence,
The Kurtz contact value will be:
= Fair value - Deferred gain
= [tex]12600000-3190000[/tex]
= [tex]9,410,000[/tex] ($)
April Corporation developed the following per-unit standards for its product: 2 pounds of direct materials at $3.75 per pound. Last month, 2,000 pounds of direct materials were used to produce 900 units of product. The direct materials usage variance for last month was:
Answer:
200 Unfavorable
Explanation:
Calculation to determine what The direct materials usage variance for last month was:
Material usage variance =( Direct materials pounds - Direct materials units) * Actual quantity purchased
Let plug in the formula
Material usage variance= (2 pounds *900) -2,000 pounds
Material usage variance= 1,800 - 2,000
Material usage variance=200 Unfavorable
Therefore The direct materials usage variance for last month was 200 Unfavorable
Use the information for the question(s) below. Von Bora Corporation is expected pay a dividend of $1.40 per share at the end of this year and a $1.50 per share at the end of the second year. You expect Von Bora's stock price to be $25.00 at the end of two years. Von Bora's equity cost of capital is 10%. Suppose you plan to hold Von Bora stock for only one year. Your capital gain from holding Von Bora stock for the first year is closest to:
Answer:
the capital gain for the first year is $23.15
Explanation:
The computation of the capital gain for the first year is shown below;
Current value = Future dividend and value × Present value of discounting factor(rate%,time period)
= $1.4 ÷ 1.1 + $1.5 ÷ 1.1^2 + $25 ÷ 1.1^2
= $23.15
Hence, the capital gain for the first year is $23.15
The same should be considered and relevant too
