BUSINESS COLLEGE

Back Bay Company is a price−taker and uses target pricing. Refer to the following​ information:Production volume602,000units per yearMarket price$34per unitDesired operating income17​%of total assetsTotal assets$13,800,000What is the target full product cost per​ unit? (Round your answer to nearest​ cent.) Assume all units produced are sold.

Answers

Answer 1
Answer:

Answer: $30.10 per unit

Explanation:

Given that,

Production volume = 602,000 units per year

Market price = $34 per unit

Desired operating income = 17​% of total assets

Total assets = $13,800,000

Total income = 17% of Total assets

                      = 0.17 × $13,800,000

                      = $2,346,000

Total sales = Market price × Production volume

                  = $34 per unit × 602,000 units

                  = $20,468,000

Target full product cost in total for the year:

= Total sales - Total income

= $20,468,000 - $2,346,000

= $18,122,000

Target full product cost per​ unit = (Target\ full\ product\ cost)/(Production\ volume)

                                                      = (18,122,000)/(602,000)

                                                      = $30.10 per unit

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Suppose that Italy and Austria both produce fish and shoes. Italy’s opportunity cost of producing a pair of shoes is 5 pounds of fish, while Austria’s opportunity cost of producing a pair of shoes is 10 pounds of fish. By comparing the opportunity cost of producing shoes in the two countries, you can tell that _____ has a comparative advantage in the production of shoes, and ______ has a comparative advantage in the production of fish. Suppose that Italy and Austria consider trading shoes and fish with each other. Italy can gain from specialization and trade as long as it receives more than _______ of fish for each pair of shoes it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _______ of shoes for each pound of fish it exports to Italy. Based on your answers to the previous question, which of the following terms of trade (that is, price of shoes in terms of fish) would allow both Austria and Italy to gain from trade? Check all that apply.(A) 8 pounds of fish per pair of shoes (B) 1 pound of fish per pair of shoes(C) 15 pounds of fish per pair of shoes(D) 3 pounds of fish per pair of shoes
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A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What's the correct entry to record the transaction?

Answers

The correct entry to record the transaction concerning the company's sale of 10,000 shares of previously authorized stock is a debit to Cash of $100,000 and a credit to Common Stock $100,000.

Data Analysis:

Number of shares sold = 10,000

Par value =$10 per share

Cash $100,000 Common Stock $100,000

Thus, the correct entry to record this stock sale is a debit to Cash of $100,000 and a credit to Common Stock $100,000.

Learn more about recording the issuance of stock here: brainly.com/question/25562729

Final answer:

The correct journal entry to record the transaction would be to debit Cash for $100,000 and credit Common Stock for $100,000 in line with the number of shares sold and their par value.

Explanation:

When a company sells shares of its authorized stock at par value, the funds received are recorded in the company's financial accounts. The correct journal entry would be to debit (increase) Cash, and credit (increase) Common Stock. In this scenario, where 10,000 shares of stock are sold at a par value of $10 per share, this would result in a $100,000 increase in both the company's Cash and Common Stock accounts. The journal entry would look like this:

  • Debit Cash $100,000
  • Credit Common Stock $100,000

It is crucial to understand the stock issuing process, such as rate of return, in the business world. Investors purchase stock with an expectation either to receive dividends or to experience a capital gain- an increase in the stock value.

Learn more about Stock Transaction here:

brainly.com/question/33953780

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Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $24,700 and variable expenses of $6,175. Product Y45E had sales of $35,280 and variable expenses of $15,876. The fixed expenses of the entire company were $17,300. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company: Multiple Choice could increase or decrease. would increase. would decrease. would not change.

Answers

Answer:

C) Would decrease

Explanation:

Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.75 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt-equity ratio of .80, a cost of equity of 11.5 percent, and an aftertax cost of debt of 4.3 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 3 percent to the cost of capital for such risky projects.

Answers

Answer:

The question is: "What is the maximum initial cost the company would be willing to pay for the project?"

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Explanation:

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=> Maximum initial investment cost is equal to the net present value of the cash saving the project brings about discounting at project's cost of capital, calculated as:

1,750,000/ (11.3% - 2%) = $18,817,204.

Thus, the Maximum initial investment cost is $18,817,204.

The efficient markets hypothesis holds only if all investors are rational. True or false?

Answers

Answer:

This is true, the efficient market hypothesis only holds if all the investors are rational, for example if an investor is not rational and wants to make a loss instead of profit, then the efficient market hypothesis wont hold as the investor will be acting in a way that wont benefit him. When the investor acts irrationally, then he wont react correctly to the information he has and buy or sell stocks which he isn't supposed to buy or sell and this will change the price of the stock from what the price of the stock should be.

Explanation:

The process of planning and managing a firm’s long-term assets is called:______.A. Capital Budgeting
B. Agency Cost Analysis
C. Capital Structure

Answers

C is the correct answer

Kingbird Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $146 $134 $116 $110 $134 $110 Cost 92 98 98 98 61 44 Cost to complete 37 37 31 43 37 37 Selling costs 12 22 12 24 12 24.Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2014, for each of the inventory items above.

Answers

Explanation:

As we know that the inventory should be recorded at the lower cost or net realizable value whichever is lower

And, the same is shown on the attachment which is attached below:

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The DCE are the rows of the attached spreadsheet

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E                   75

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G                  43

H                  61

I                    44
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