BUSINESS COLLEGE

A company finds that there is a linear relationship between the amount of money that it spends on advertising and the number of units it sells. If it spends no money on advertising, it sells units. For each additional spent, an additional units are sold. (a) If is the amount of money that the company spends on advertising, find a formula for , the number of units sold as a function of .

Answers

Answer 1
Answer:

Answer:

y = 0.01x + 300

Explanation:

There are some missing information in the question that are shown below:

If it spends no money on advertising, it sells 300 units

For each $1,500 additional spent, an additional 15 units are sold.

Given that

Number of units sold in case of no money spending = 300 units

Additional money spent = $1,500

Additional units sold = 15 units

By considering the above information, the formula is presented below:

y = 0.01x + 300

where,

0.01X is come from

= (Number of units sold in case of no money spending + Additional units sold - Number of units sold in case of no money spending) ÷ (Additional money spent)

= (300 units + 15 units - 300 units) ÷ ($1,500)

= 0.01X

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Ramon sells two enchiladas and three tacos for $\$$2.50 and he sells three enchiladas and two tacos for $\$$2.70. Assuming a fixed price per item, what is the cost, in dollars, of three enchiladas and four tacos
In 2016, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. The same selling price, variable expenses, and fixed expenses are expected for 2017. What is Teller's break-even point in units for 2017
You are the CFO of a publicly-traded company in a very competitive industry. You are preparing the annual report and SEC filings and you are carefully considering how much information to provide. You fear that your competitors could gain some advantage if you present too much detail but you know that investors want more detail so they can evaluate the business (and management) performance. How do you handle these conflicting elements?
Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $16,380 1,260 DLHs Purchase orders Number of orders $1,920 640 orders Product testing Number of tests $4,275 285 tests Template etching Number of templates $805 35 templates General factory Machine-hours $42,600 7,100 MHs Required: Compute the activity rate for each of the activity cost pools.
The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the A) revenue. B) income C) discount. price. E) breakeven quantity.

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 0.83 per sq. ft. $ 9.96 Direct labor 0.25 hr. $ 10.50 per hr. 2.62 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.20 per hr. 0.55 Fixed manufacturing overhead $345,800 ÷ 910,000 units) 0.38 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,040,000 Number of square feet of plastic used 11,400,000 Cost of plastic purchased and used $ 9,120,000 Number of labor hours worked 308,000 Direct labor cost $ 3,449,600 Variable overhead cost $ 689,000 Fixed overhead cost $ 365,000 Required: Calculate Parker Plastic’s direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Answers

Answer:

Direct Material Price Variance = (Actual price - standard price) x actual quantity purchased

Direct Material Price Variance = ($0.80 - $0.83) x 11400000 = $342000 (F)

Actual Price = $9120000 / 11400000 = $0.80

Direct Material Quantity Variance = (Actual quantity - standard quantity) x Standard Price

Direct Material Quantity Variance = (11400000 - 12480000) x $0.83 = $896400 (F)

Standard Quantity = 1040000 x 12 = 12480000

Final answer:

The direct materials price variance is $342,000 unfavorable and the direct materials quantity variance is $9,351,200 favorable.

Explanation:

To calculate Parker Plastic's direct materials price variance, we need to compare the standard price per unit of direct materials with the actual price per unit. The formula for calculating the price variance is (Actual Price - Standard Price) * Actual Quantity.

Using the given information, the actual price per unit is $0.80 per sq. ft, so the price variance is ($0.80 - $0.83) * 11,400,000 sq. ft = $342,000 U.

To calculate the direct materials quantity variance, we need to compare the standard quantity per unit of direct materials with the actual usage. The formula for calculating the quantity variance is (Actual Quantity - Standard Quantity) * Standard Price.

Using the given information, the actual usage is 11,400,000 sq. ft, so the quantity variance is (11,400,000 - 1,040,000) * $0.83 = $9,351,200 F.

Learn more about  direct materials price variance here:

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Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers.Wooden no. 2 pencilsCopper (hint: there are many sellers)Local public utilities (ex. water, electricity)Peanut butterLipstick

Answers

Answer:

a)no. 2 wooden pencils - perfectly competitive market

b) copper - perfectly competitive market

c) Local public utilities- monopoly market

d) Peanut butter - monopolistic competitive market

e) Lipstick - monopolistic market

All no 2 pencils are identical each other. There are many sellers of pencils. And there's usually a general price for the pencils. Also, there are little barriers to entry or exit of firms. So the market for the no 2 pencils are perfectly competitive firms.

Also, coppers are identical to each other. They can't be differentiated from each other. There is usually a standard price for copper. So the market for copper is perfectly competitive.

For local public utilities, there is usually one firm providing the service. Also, because of the high cost of setting up these services, there is a high barrier to the entry of firms into the industry. This is why local public utilities are a monopoly.

Peanut butter and lipsticks are perfectly monopolistic firms because:

A. There are many firms selling this product but the products are usually differentiated.

B. Also, firms sets the price for their products

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopolistic competition is when there are many firms selling differentiated goods. The demand curve is downward sloping

A monopoly is when there is only one firm operating in the industry. There are high barriers to entry and exit of firms in the industry.

I hope my answer helps you

On January 2, 2021, Ivanhoe, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $320000 starting at the beginning of the first year, with title passing to Ivanhoe at the expiration of the lease. Ivanhoe treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Ivanhoe uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $1966261, based on implicit interest of 10%.In its 2021 income statement, what amount of interest expense should Ivanhoe report from this lease transaction?

Answers

Answer:

interest expense:    $ 164,621.65

Explanation:

We solve for the present value of the lease value:

C * (1-(1+r)^(-time) )/(rate) = PV\n

C 320,000.00

time 10

rate 0.1

320000 * (1-(1+0.1)^(-10) )/(0.1) = PV\n

PV $1,966,261.4738

We made the first payment which decrease our payable:

1,966,261.47 - 320,000 = 1,646,261.47‬

And now, from this amount we solve for the interest expense:

And now, we calculate the 10% interest for the year:

1,646,216.47 x 10% = 164,621.65 interest expense

When a purchase order is released, a commitment is made by a governmental unit to buy a computer to be manufactured to specifications for use in property tax administration. This commitment should be recorded in the general fund as a(n) General capital asset. Appropriation. Expenditure Encumbrance

Answers

Answer: Encumbrance

Explanation:  The commitment made by a governmental unit to buy some product for use in administration is recorded in the general fund as an encumbrance which is defined as an interest, right, burden or liability that must be carried. As such, an encumbrance ensures that there will be enough funds available for the payment of certain governmental obligations and commonly refers to restricted funds in the general fund account.

Answer:

Encumbrance

Explanation:

An encumbrance is a portion of a budget set aside for spending required by law or contract. Like the budget itself, an encumbrance is a projection and not yet a reality. If business conditions continue as they are when you set the budget, then the encumbrance will become an expense.

The most common types of encumbrance apply to real estate; these include mortgages, easements, and property tax liens. Not all forms of encumbrance are financial, easements being an example of non-financial encumbrances. An encumbrance can also apply to personal – as opposed to real – property.

A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts have a price of $32 and variable costs of $17. Which of the following is a true statement for this clothing manufacturer in the short term? 1. They would prefer to make shorts instead of shirts. 2. They would prefer to make skirts instead of shorts. 3. They would not have a preference for either product. 4. If both products used the same machine for different lengths of time, it would make no difference.

Answers

Answer:

1)They would prefer to make shorts as contribution margin per unit is higher for shorts

Explanation:

Step 1. Given information.

  • Sales price shirts is $24
  • Variable costs shirts is $10
  • Sales price shorts $32
  • Variable costs shorts $17

Step 2. Formulas needed to solve the exercise

Contribution margin = sales price - variable cost

Step 3. Calculation.

Contribution margin shirts  = 24 - 10 = 14

Contribution margin shorts = 32 - 17 = 15

Step 4. Solution.

Contribution margin shorts > Contribution margin shirts

Dana, who is a trained yoga instructor, spends 4 hours on Monday baking and packing 10 boxes of cookies. She sells the cookies for $10 a box. Given that she can also teach yoga for $80 an hour, what is her opportunity cost of baking cookies?A. $220 B. $800 C. $320 D. $420 E. $100

Answers

Answer:

c. $320

Explanation:

Opportunity cost is an economic term for expressing cost in terms of forgone alternatives. The opportunity cost of Dana is calculated as;

Hours spent baking cookies = 4 hours, the amount earned per hour when Dana is working as yoga instructor = $80.

Therefore, the total opportunity cost of Dana, when she is baking is cookies;

= 4 hours × $80

= $320.
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