Answer:
The correct answer is letter "A" and "C": Position the bad news strategically between other sentences.; Accentuate the positive.
Explanation:
The objective of the message must be to provide the benefits over the disadvantages of the company being acquired by a large firm. The disadvantages can be provided in between sentences to rest importance but the advantages must be highlighted at every moment to give a positive impression of the acquisition to the employees.
Market
Minneapolis Medical Dental
Sales $ 330,000 100 % $ 220,000 100 % $ 110,000 100 %
Variable expenses 198,000 60 % 143,000 65 % 55,000 50 %
Contribution margin 132,000 40 % 77,000 35 % 55,000 50 %
Traceable fixed expenses 39,600 12 % 11,000 5 % 28,600 26 %
Market segment margin 92,400 28 % $ 66,000 30 % $ 26,400 24 %
Common fixed expenses
not traceable to markets 9,900 3 %
Office segment margin $ 82,500 25 %
The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $38,500 or increase sales in the Dental market by $33,000.
Required:
Calculate the increased segment margin.for Medical:
Calculate the increased segment margin for Dental:
Answer:
Increase Segment margin for Medial = $9,075
Increase Segment margin for Dental = $12,100
Explanation:
The calculation of increased segment margin.for Medical and Dental is shown below:-
Medical Dental
Incremental Sales $38,500 $33,000
Less: Variable Cost ($25,025) ($16,500)
(Medical 65% and ($38,500 × 65%) ($33,000 × 50%)
Dental 50%)
Incremental
Contribution Margin $13,475 $16,500
Less: Traceable
Advertising Cost ($4,400) ($4,400)
Increase Segment
Margin $9,075 $12,100
b. On February 1, Trolley received $8,000 for a four-year technical service contract. Trolley is performing the services evenly over the four-year period. The company credited a liability account, Unearned Service Revenue, on February 1.
c. On May 1, Trolley loaned $3,400 to another company on a 12%, one-year note.
d. The weekly (five-day) payroll of Trolley amounts to $2,500. All employees are paid at the close of business each Friday. December 31 falls on a Thursday.
Required:
Prepare the adjusting entries for December 31.
Answer: See explanation
Explanation:
It should be noted that adjusting entries are normally made at the conclusion of an accounting period so that the income and expenditure will be allocated to the particular period when they took place.
Prepaid rent is calculated as:
= 2660 × (36-5)/36
= 2660 × 31/36
= 2290.56
Unearned revenue:
= 8000 × 11/48
= 1833.33
Accrued interest:
= 3400 × 12% × 8/12
= 3400 × 0.12 × 8/12
= 272
Salary expense:
= 2500 × 4/5
= 2000
The adjusting entry has been attached.
The adjusting entries for year-end include recognizing the appropriate portion of prepaid rent, recognizing earned portion of unearned revenue, recording interest receivable and interest revenue, and adjusting for payroll expense and payable.
The adjustments for Trolley Inc. for year-end can be prepared as follows:
#SPJ3
Answer:
$38,851 approx
Explanation:
As per the information provided in the question, the minimum annual rate of return would be at-least equal to the usual rate of return the investor (here uncle) earns. Here it is 9% per annum.
Anything earned below this rate of return will not satisfy the investor since this represents the minimum required rate of return.
A=
Where A= Amount
P= Principal
r= Annual Rate Of Interest
n= period of loan
Therefore, A=
A= $38,850.87 or $38,851 approx.
Answer:
$791.51
Explanation:
PMT = 45%
Fv = -1000
N = 5
Rate = 10%
Using the Excel funtion
Bond Price = PV(45, -1000, 5, 10)
Bond Price = $791.51
Hence, the maximum amount Edward should be willing to pay for this bond is $791.51
Answer: $129,500
Explanation:
According to the Accrual Basis in Accounting, revenue and expenses should only be recognised when goods have been delivered.
On the December 31, 2020 Sandra's Boutique had 1,850 gift certificates outstanding but these had been sold already to people during the year for $70.
This means that they have been paid for a service that they have not given (they provide the service when the GIFT certificate is renewed).
They cannot therefore recognize the revenue as Revenue yet and have to defer it.
The amount to be Deferred will therefore be,
= 1,850 * $70
= $129,500
Answer:
b. 10% doubling
Explanation:
Options are "a. tripling, b. 10% doubling, c. 90% tripling, d. 90% doubling, e. 10%"
In this question, 90%(0.9) learning rate means that (1-0.9)10% unit of input is reduced each time the production is doubled. In a nutshell, the learning curve percentage represents the proportion by which the amount of an input per unit of output is reduced each time production is doubled.