Answer:
$23, 472
Explanation:
The question is to calculate how much Derek is willing to pay for the machine.
What the money Machine will pay in 5 years = $43, 245.00
The Discount rate= 13%
The number of years = 5 Years
Therefore, Present value of the machines:
PV= P x [1/(1+r)∧n]; P= Future benefit; r = rate and n = number of years
The calculation is as follows
(B) U(c,f)=min{2c,f}
(C) U(c,f)=min{2c,3f}
(D) U(c,f)=min{3c,sf}
(D) U(c,f)=2c+3f
Answer:
(B) U(c,f)=min{2c,f}
Explanation:
This is an example of Leontif utility function which states that the preferences of a consumer is to a constant ratio of quantities of two or more goods in his demand bundles and having an extra unit of a single good will not increase the utility of the consumer and will make the extra unit to waste. But having more units of all the goods in the demand bundle which maintain the constant ratio will increase the utility of the consumer.
A good example usually used in economics is that of a pair of shoe. Having one right and one left of a type of shoe gives a consumer utility at a constant ratio of 1:1, and increasing each leg by multiple of one at every point in time will increase the utility of the consumer, while increasing just only one makes the utility not to change. For instance, having only two left shoe will not give the consumer any utility and make both the left shoe useless.
In the question, the ratio of cups of corn meal, denoted by c, and cups of flour, denoted by f, is 2:1. This implies that to increase the utility of the consumer, c has to increase by a multiple of 2 at every point in time while f has to increase by one at the same point in time to maintain the constant ratio of 2:1. Increasing only c by 2 or only f by 1 will maintain the constant ratio and it will lead to a waste of the increased unit of the affected commodity.
Therefore, option (B) U(c,f)=min{2c,f} is the correct answer that gives a constant ratio of 2:1 = 2c:f.
I wish you the best.
Answer:
$12,750 and $1,250
Explanation:
The computation of the dividend paid is shown below:
For 2021, the preference dividend is
= 1700 shares × $50 × 5%
= $4,250
Since in 2019 and 2020 the dividend is not paid
So, For 2019 and for 2020, the preference dividend is
= $4,250 × 2 years
= $8,500
So total preference dividend is
= $4,250 + $8,500
= $12,750
And, the total dividend paid is $14,000
So, for the common stockholder, it is
= $14,000 - $12,750
= $1,250
b. arranging the information chronologically according to the date the profits were generated at each location
c. creating sections of the report that represent each geographic region
Answer:
c. creating sections of the report that represent each geographic region
Explanation:
In addition to writing the total value of earnings in the report, what will have to be done is to perform a detailed breakdown of the geographical location of the earnings of each place, grouping by geographic location in case you find more than one place in the region. The different divisions must be carried out according to the power that each division represents when selling and not according to city or state.
1. Predetermined Overhead Rate ≈ $160.27
2. Hourly Billing Rate for Tara ≈ $245.73
(1) To compute the predetermined overhead rate, we need to calculate the total cost of services (salary plus overhead) for both appraisers and then divide it by the total billable hours.
Total Overhead Costs = $378,210
Total Salary Costs = Salary of Debbie + Salary of Tara = $150,000 + $81,000
= $231,000
Total Billable Hours = Billable hours of Debbie + Billable hours of Tara
= 2,000 + 1,800
= 3,800
Predetermined Overhead Rate = (Total Overhead Costs + Total Salary Costs) / Total Billable Hours
Predetermined Overhead Rate = ($378,210 + $231,000) / 3,800
Predetermined Overhead Rate = $609,210 / 3,800
Predetermined Overhead Rate ≈ $160.27 (rounded to 2 decimal places)
(2) To compute the hourly billing rate for Debbie and Tara, we'll use the formula:
Hourly Billing Rate = (Total Cost of Services + 20% Markup) / Total Billable Hours
For Debbie:
Total Cost of Services for Debbie = Salary of Debbie + (Predetermined Overhead Rate × Billable hours of Debbie)
Total Cost of Services for Debbie = $150,000 + ($160.27 × 2,000)
Total Cost of Services for Debbie = $470,540.00
Hourly Billing Rate for Debbie = ($470,540.00 + 0.20 × $470,540.00) / 2,000
Hourly Billing Rate for Debbie ≈ $282.32 (rounded to 2 decimal places)
For Tara:
Total Cost of Services for Tara = Salary of Tara + (Predetermined Overhead Rate × Billable hours of Tara)
Total Cost of Services for Tara = $81,000 + ($160.27 × 1,800)
Total Cost of Services for Tara = $369,486.00
Hourly Billing Rate for Tara = ($369,486.00 + 0.20 × $369,486.00) / 1,800
Hourly Billing Rate for Tara ≈ $245.73 (rounded to 2 decimal places)
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The predetermined overhead rate is found to be 163.77%, and the hourly billing rates for Debbie and Tara (including a 20% markup) are $237.40 and $142.44, respectively.
To calculate the predetermined overhead rate, we need to divide the total overhead costs by the total salary costs of both appraisers. In this case:
Total Overhead Costs = $378,210
Total Salary Costs = Debbie's Salary ($150,000) + Tara's Salary ($81,000) = $231,000
Predetermined Overhead Rate = Total Overhead Costs / Total Salary Costs = $378,210 / $231,000 = 1.6377 or 163.77%
To calculate the hourly billing rate for each appraiser, you add their salary cost per hour, the overhead cost per hour, and then mark up the total cost by 20%. For Debbie:
Debbie's Salary per Hour = $150,000 / 2,000 hours = $75
Debbie's Overhead per Hour = 1.6377 × $75 = $122.83
Total Cost per Hour for Debbie = $75 + $122.83 = $197.83
Hourly Billing Rate for Debbie (with 20% markup) = Total Cost per Hour × 1.20 = $197.83 × 1.20 = $237.40
Similarly, for Tara:
Tara's Salary per Hour = $81,000 / 1,800 hours = $45
Tara's Overhead per Hour = 1.6377 × $45 = $73.70
Total Cost per Hour for Tara = $45 + $73.70 = $118.70
Hourly Billing Rate for Tara (with 20% markup) = Total Cost per Hour × 1.20 = $118.70 × 1.20 = $142.44
Answer:
Best estimate for inventory =$70,764.85
Explanation:
The closing inventory value at retail
= (Opening inventory + Purchases - sales) all in retail prices
= $123,000 + $483,000 - 493,000.
= 113000
Closing inventory value at cost
=113,000 × (64,500 + 315,000)/(123,000 + $483,000)
=70,764.85
Best estimate for inventory =$70,764.85
Answer:
From all indications,it is very clear that the question requires a journal entry to record the unpaid interest.
Dr Interest expense $1125
Cr Interest payable $1125
Explanation:
This is a typical case of an omitted entry in the books of accounts,specifically it relates year-end close accounting adjustments.
Under the accrual basis, which is prevalent in the private sector,expenses are to recorded when incurred not when they are settled in cash,as result it is imperative that the above transaction needs be adjusted by debiting interest expense account and crediting same amount to interest payable account to affirm that the company has an obligation to $1125 to mortgage providers.