Milden Company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. As an aid in planning, the company has decided to start using a contribution format income statement. To have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: Cost Cost Formula Cost of good sold $27 per unit sold Advertising expense $184,000 per quarter Sales commissions 7% of sales Shipping expense ? Administrative salaries $94,000 per quarter Insurance expense $10,400 per quarter Depreciation expense $64,000 per quarter Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters follow: Quarter Units Sold Shipping Expense Year 1: First 30,000 $ 174,000 Second 32,000 $ 189,000 Third 37,000 $ 231,000 Fourth 33,000 $ 194,000 Year 2: First 31,000 $ 184,000 Second 34,000 $ 199,000 Third 44,400 $ 246,000 Fourth 41,400 $ 222,000
Answers
Answer:
Fixed Cost = $24,000 Variable cost = $5
Explanation:
You have to use the High-Low method
From the table you got, you pick the higher and the lowest unit sold
and calculate the diference between them:
Now 14,400 Units generates a cost of 72,000 Dividing we get the variable component
Then we calculate for the fixed cost:
Fixed Cost = 24,000
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B.
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C.
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D.
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Answers
The correct option is D. state government officials review the audit performed by CPA firms for such organizations
The following information should be considered:
- The state government officials should reviews the audit that should be performed by CPA firms for the organization.
- And it should be an extra regulatory measure for state authorities demand in the case when the state funds are distributed to the government or non-government organization.
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This is op's alt account its D
Balance, 1/1/2017 290 $5.00 $1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742
An end of the month (1/31/2017) inventory showed that 230 units were on hand. If the company uses LIFO, what is the value of the ending inventory?
Answers
Answer:
Ending inventory= $1706
Explanation:
Giving the following information:
Units Per unit price Total
1/1/2017: 290 *$5.00= $1450
1/15/2017: Purchase, 140*$5.10= $714
1/28/2017: Purchase, 140*$5.30= $742
At the end of the month (1/31/2017) inventory showed that 230 units. If the company uses LIFO (last-in, first-out)
Ending inventory= 140*5.30+140*5.10+50*5= $1706
Answers
Answer:
Please see explanation below
Explanation:
Before Investment for the real estate development in a foreign country, it is very crucial to determine the viability of the project, and more importantly how the cash flows are being populated over the period. One of the major risks involved in investing in foreign country is the currency exchange risk. The value of currencies for the countries continue to fluctuate based on several economic conditions and other macro factors.
If a regulator in a foreign country is devaluing the country’s currency, then it goes in favour of exporters, as the foreign consumers can afford to buy more goods and services with the same amount. However, the people residing in the the country(importers) faces a huge trouble spending in foreign country due to currency devaluation.
To identify the creditworthiness of the project we need information regarding the property prices, its growth, and public spending in the country where we want to make our investment. Secondly, we need the historical data of currency devaluation event (if any) to assess the actual impact it will have on the economy once the devaluation takes place. Thirdly, we need to identify the exposures or the risk involved in operating the business in the foreign country, and how are we go about mitigating the risk from transaction and operating exposure.
Answers
Answer:
All statement are correct except the the second one.
Explanation:
- Ordinary annuities make fixed payments at the end of each period for a certain time period.
True. the differentiating feature between ordinary annuities and annuity dues is the timing of the cash-flows- If payments are made at the end of each period, the payment stream is an ordinary annuity but if payments are made at the beginning of each period, then the stream is an annuity due.
- An annuity due is an annuity that makes a payment at the end of each period for a certain time period.
False. with an annuity due, payments are made at the beginning of each period.
- An annuity due earns more interest than an ordinary annuity of equal time.
True. Payments are made sooner in an annuity due, with the 1st payment made at the beginning of the first period and the last payment being made at the beginning of the last period. Thus each payment earns interest and as a result, both the present value and the future value are higher than that of an ordinary annuity.
A perpetuity is a constant, infinite stream of equal cash flows that can be thought of as an infinite annuity.
True. A perpetuity is a stream of cash-flows starting at a certain date with equal payments at equal intervals but with no terminal date. Therefore the stream of cash-flows is expected to continue forever- which makes it an infinite annuity.
Answers
Answer:
The answer is:
A: I=$76,67 MV=$4076,67
B: I=$293,75 MV=$10293,75
C: I=$138,125 MV=$6638,125
D: I=$36,75 MV=$936,75
Explanation:
Notes are often a key component of how a business finances its operations. For purposes of accounting, it's important to be able to calculate the maturity value of a note to know how much a business will have to pay or receive when the note comes due.
In general, notes are a form of short-term commercial financing. The maturity value is the amount of money that the company would receive when the note comes due.
When you know the principal amount, the rate, and the time, the amount of interest can be calculated by using the formula:
I = P*r*t
I= Total interest
P= principal
r= interest rate
t= time
To calculate the Maturity Value you need to sum the principal to the total interest accumulated over time.
Maturity Value= Principal + Interest
In this exercise:
A:
Principal: $4000 r=11,5% t=60 days
I=4000*0,115*(60/360)= $76,67
Maturity Value= 4000 + 76,67= $4076,67
B:
Principal: $10,000 r=11.75% t=90 days
I=10000*0,1175*(90/360)= $293,75
Maturity Value= 10000+ 293,75= $10293,75
C:
Principal= $6,500 r=12.75% time=60 days
I=6500*0,1275*(60/360)= $138,125
Maturity Value= 6500+ 138,125= $6638,125
D:
Principal= $900 r= 12.25% time=120 days
I=900*0,1225*(120/360)= $36,75
Maturity Value= 900+ 36,75= $936,75
b. an improved record in student job placements
c. lower tuition and lower prices on textbooks
d. a "best buy" rating in a national magazine
Answers
Answer: C. lower tuition and lower prices on textbooks
Explanation:
A shift in demand simply means that consumers wish to buy more at same price. It is caused by other factors that affect demand except the price. On the other hand, a movement along the demand curve is caused as a result of a change in price.
Based on the options given, lower tuition and lower prices on textbooks will not shift the demand curve since it's a change in price and will rather cause a movement along the demand curve.