BUSINESS COLLEGE

Kaplan, Inc. produces flash drives for computers, which it sells for $27 each. The variable cost to make each flash drive is $13. During April, 700 drives were sold. Fixed costs for April were $2 per unit for a total of $1,400 for the month. How much is the monthly break-even level of sales in dollars for Kaplan?

Answers

Answer 1
Answer:

Answer:

Contribution per unit

= Selling price - Variable cost per unit

 = $27 -$13

= $14

Contribution margin ratio

= Contribution per unit

  selling price

= $14

  $27

=  0.518518518

Break-even point in dollars

= $1,400

  0.518518518

= $2,700

               

Explanation:

Break-even point in dollars  equals fixed cost divided by contribution margin ratio. Contribution margin ratio is equal to contribution per unit divided by selling price. Contribution per unit is selling price minus variable cost per unit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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Layla Company began making mascara in November 2018 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Layla using the FIFO method?
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Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $660,000 payroll for 8,600 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level Machine setups $ 310,000 # of setups 310 setups Materials handling 115,800 # of barrels 9,650 barrels Quality control 1,290,000 # of inspections 3,000 inspections Other overhead cost 1,075,000 # of machine hours 21,500 machine hours Total overhead $ 2,790,800 A current product order has the following requirements: Machine setups 28 setups Materials handling 720 barrels Quality inspections 90 inspections Machine hours 1,700 machine hours Direct labor hour 564 hours Using ABC, how much total overhead is assigned to the order?

Answers

Answer:

Total overheads assigned to order = $203,621.36

Explanation:

As for the information provided:

Payroll = (660,000)/(8,600) = = $76.74 per hour

Setups = (310,000)/(310) = $1,000 per setup

Material Handling = (115,800)/(9,650) = $12 per barrel.

Quality Control = (1,290,000)/(3,000) = $430 per inspection.

Other overhead = (1,075,000)/(21,500) = = $50 per machine hour.

Details of current product requirement: And the related expense shall be :

28 setups = 28 * $1,000 = $28,000

720 barrels = 720 * $12 = $8,640

90 inspections = 90 * $430 = $38,700

1,700 machine hours = 1,700 * $50 = $85,000

564 labor hours = 564 * $76.74 = $43,281.36

Total overheads assigned to order = $203,621.36

ndicate whether the following items are "Included in" or "Excluded from" gross income. a. During the year, that the taxpayer purchased stock as an investment which doubled in value. b. Amount an off-duty motorcycle police officer received for escorting a funeral procession. c. While his mother was in the hospital, the taxpayer sold some of her jewelry at a gain to help pay for the hospital bills. d. Child support payments received. e. A damage deposit the taxpayer recovered when he vacated the apartment he had rented. f. Interest received by the taxpayer on an investment in general purpose bonds issued by IBM. g. Amounts received by the taxpayer, a baseball "Hall of Famer," for autographing sports equipment (e.g., balls and gloves). h. Tips received by a bartender from patrons. (Taxpayer is paid a regular salary by the cocktail lounge that employs him.) i. Taxpayer sells his Super Bowl tickets for three times what he paid for them. j. Taxpayer receives a new BMW from his grandmother when he passes the CPA exam.

Answers

Answer:

Gross income refers to the income of an individual before taxes or any other deductions. It includes all type of income from all sources.

The list is as follows:

a. Excluded from

b. Included in

c. Included in

d. Excluded from

e. Excluded from

f. Included in

g. Included in

h. Included in

i. Included in

j. Excluded from

Robin Corporation retires its $800000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $829960. Required:
A) The entry to record the redemption will include __________.
O a debit of $32000 to Premium on Bonds Payable.
O debit of $2040 to Loss on Bond Redemption.
O credit of $32040 to Premium on Bonds Payable.
O credit of $2040 to Loss on Bond Redemption.

Answers

Answer:

The correct option is debit of $2040 to Loss on Bond Redemption

Explanation:

The unamortized premium on the bonds at redemption date=carrying value-face value

carrying value is $829,960

face value is $800,000

unamortized premium=$829,960-$800,000=$29,960

cash paid on redemption=$800,000*104%=$832,000.00  

The appropriate entries would a credit to cash of $ 832,000 while face value is debit to bonds payable and also the unamortized premium is debited to premium on bonds payable

loss on retirement=$832,000-$829,960=$2040

The loss is debited to loss on bond redemption

Final answer:

The correct answer is a debit of $2040 to Loss on Bond Redemption, as the amount paid to redeem the bonds exceeded their carrying value by this amount.

Explanation:

Robin Corporation retired its bonds at 104% of their face value, which implies the bonds were bought back for $832,000 ($800,000 x 1.04). The bonds had a carrying value of $829,960. The difference between the redemption price and the carrying value caused a loss on bond redemption of $2,040 ($832,000 - $829,960).

Therefore, the entry to record the redemption of Robin Corporation's bonds will include a debit of $2040 to Loss on Bond Redemption. This shows that the company experienced a financial loss due to the cost of redeeming the bonds being higher than their book value.

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A problem of interest to health officials (and others) is to determine the effects of smoking during pregnancy on infant health. One measure of infant health is birth weight; a birth weight that is too low can put an infant at risk for contracting various illnesses. Since factors other than cigarette smoking that affect birth weight are likely to be correlated with smoking, we should take those factors into account. For example, higher income generally results in access to better prenatal care, as well as better nutrition for the mother. An equation that recognizes this is bwght 5 b0 1 b1cigs 1 b2 faminc 1 u. (i) What is the most likely sign for b2

Answers

Answer:

β2 should have a positive sign

Explanation:

The regression equation is:

βwght = β0+β1cigs+β2faminc+μ

The equation tells us that the birth weight of a child is dependent on factors like cigarette consumption and family income.

β1 should have a negative sign because smoking during pregnancy has an adverse effect on birth weight. So there would be a negative correlation between birth weight and cigarette consumption.

β2 should have a positive sign. This is because while pregnant, a family with more income has the ability to provide better prenatal care and also better nutrition to the expectant mother. Therefore we have a positive correlation.

Final answer:

In a regression model concerning effects of smoking and income on infant birth weight, the coefficient 'b2' associated with family income is expected to be positive. Higher income levels are associated with improved prenatal care and nutrition, which contribute positively to infant birth weight.

Explanation:

The equation you presented is a form of a multiple regression model where 'bwght' is the dependent variable (infant birth weight), and 'cigs' and 'faminc' are independent variables representing the number of cigarettes smoked and family income, respectively. The terms 'b0', 'b1', and 'b2' are the model's parameters. In the context of this model, 'b2' represents the change in the infant's birth weight for a one-unit change in family income, holding all else constant.

The most likely sign for 'b2' is positive. This is because higher family income is generally associated with better access to prenatal care and nutrition which in turn positively impact the infant's birth weight.

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The adjusted trial balance of Sunland Company shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $903,400; Freight-Out $13,700; Sales Returns and Allowances $22,000; and Sales Discounts $15,400. Prepare the sales section of the income statement.

Answers

Answer and Explanation:

The preparation of the sales section of the income statement is presented below:

Income Statement

For the year ended

Sales  

Sales revenue  $903,400

Less:  

Sales Discount  $15,400  

Sales return & allowances  $22,000  

Net Sales         $866,000

hence the net sales is $866,000

The freight out would not be considered. Hence, ignored it

A project with an initial cost of $51,400 is expected to generate annual cash flows of $16,910 for the next 5 years. What is the project's internal rate of return

Answers

Answer:

19.27%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 =  $-51,400

Cash flow each year from year 1 to 5 = $16,910

IRR = 19.27%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  
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