Answer:
$371,500
Explanation:
The retained earnings account represents the cumulative net income of an entity over the years after considering the dividend paid over the periods of existence.
The movement in the dividend account at the start and end of a given period is as
Opening balance + Net income - dividend declared and paid = closing balance. Hence , the Retained Earnings balance as of December 31, 2020
= $347,600 + $56,100 - $32,200
= $371,500
Answer:
cool
Explanation:
B. not be covering their total fixed costs.
C. not be covering their total variable costs.
D. a and b b and c
In long-run competitive equilibrium SRATC = LRATC, because if SRATC > LRATC (at the quantity of output at which MR = MC) firms would have an incentive to change their plant size to produce their current output.
Option: A
Explanation:
In perfect competition, balance is the stage where consumer demands are equal to market supply. In the short term demand can impact stability. In the long run both a product's demand and supply would influence the balance in perfect competition.
The increase in the quantity of output generated is the SRTC i.e short-run total cost and LRTC i.e long-run total cost scales because generating more output needs more labor utilization for both the short and long runs, and since, in the long run, generating more output implies using more of the physical resource supply; and by using more of either supply means incurring more production costs.
Answer:
Number of Shares for Basic Earnings per Share = 3,000,000
Number of Shares for Diluted Earnings per Share = 3,200,000
Explanation:
Basic Earnings per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares
Weighted Average Number of Common Shares
Common Shares Outstanding - December 31, year 1 2,500,000
April 1, Year 2 Issue, 9/12× 500,000 375,000
July 1, Year 2 Issue, 6/12× 250,000 125,000
Number of Shares for Basic Earnings per Share 3,000,000
Diluted Earnings per Share =Adjusted Earnings Attributable to Holders of Common Stock /Adjusted Weighted Average Number of Common Shares
Adjusted Weighted Average Number of Common Shares
Number of Shares for Basic Earnings per Share 3,000,000
Add 7% convertible bonds (5,000×40 shares) 200,000
Number of Shares for Diluted Earnings per Share 3,200,000
To compute basic earnings per share (EPS) and diluted earnings per share for the year ended December 31, year 2, we need to consider the weighted average number of shares outstanding during the year. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 for the next six months, and finally 3,250,000 for the last three months. For diluted EPS, we would use the same number of shares as the basic EPS calculation.
To compute basic earnings per share (EPS), we need to consider the weighted average number of shares outstanding during the year. For this, we calculate the number of months each share was outstanding and then multiply it by the number of shares for that period. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 (2,500,000 + 500,000) for the next six months, and finally 3,250,000 (2,500,000 + 500,000 + 250,000) for the last three months.
For diluted EPS, we need to consider the potential dilutive effect of convertible bonds. Since no bonds were converted into common stock, the number of shares to be used in computing diluted EPS would be the same as the basic EPS calculation.
#SPJ3
Answer:
The coefficient of variation for each of the four companies is:
- Treynor Pie Company = 0.25 (2/8)
- Gourmet restaurant = 0.16 (1.3/8)
- Baby food Company = 0.36 (1.8/5)
- Nutritional products Company = 0.16 (1/6)
Explanation:
In finance, the coefficient of variation is a statistical measure that represents the ratio of the standard deviation and the mean of a data series related to the return on investment. It allows investors to determine how much volatility, or risk, is assumed in comparison to the amount of return expected from investments. The lower the ratio of the standard deviation to mean return, the better risk-return trade-off.
Formula: CV=σ/μ
Where:
σ = standard deviation
μ = mean
Answer:
-Price elasticity of demand=0.77
-The demand is inelastic because the elasticity is 0.77 and this number is less than 1.
Explanation:
The formula to calculate the price elasticity of demand is:
Price elasticity of demand=% change in the quantity demanded/% change in the price
To use this formula you have to calculate the % change in the quantity demanded and % change in the price:
% change in the quantity demanded=(Q2-Q1/((Q2+Q1)/2))*100
% change in the quantity demanded=(250-200/((250+200)/2))*100
% change in the quantity demanded=(50/(450/2))*100
% change in the quantity demanded=(50/225)*100
% change in the quantity demanded=22.22%
% change in the price=(P2-P1/((P2+P1)/2))*100
% change in the price=(600-800/((600+800)/2))*100
% change in the price=(-200/(1400/2))*100
% change in the price=(-200/700)*100
% change in the price=-28.57%
Now, you can replace the values in the formula to to calculate the price elasticity of demand:
Price elasticity of demand= 22.22%/-28.57%
Price elasticity of demand=0.77
The price elasticity of the demand is 0.77. An elastic demand is when the elasticity is greater than 1 and an inelastic demand is when the elasticity is less than one. So, according to this, the demand is inelastic because the elasticity is 0.77 and this number is less than 1.
Production 30,000 units 24,000 units
Machine-hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $12.00 $11.25
What is the variable overhead efficiency variance?
a. 51890 favorable
b. $34,830 unfavorable
c. $36.720 unfavorable
e. 512.240 unfavorable
Answer:
Variable overhead efficiency variance= $14,400 favorable
Explanation:
Giving the following information:
Budgeted Actual
Production 30,000 units 24,000 units
Machine-hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $12.00 $11.25
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (12,000 - 10,800)*12
Variable overhead efficiency variance= $14,400 favorable
Garrison 16e Rechecks 2017-09-13, 2017-11-11
Multiple Choice
beet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugar
beet fiber should be processed into industrial fiber; beet juice should be processed into refined sugar
beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar
beet fiber should NOT be processed into industrial fiber; beet juice should NOT be processed into refined sugar
Answer:
Beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the point of crush are irrelevant to the decision to process further
Product Additional Rev. Further process cost. Net income(loss)
Fiber 14 i.e (39 -25) 18 (4)
Juice 47.i,e (79- 32) i.e 28 19
The beet fiber should not be process further while the beet juice should be be processed further into refined sugar . Processing Beet Juice further will generate additional income of 19 per unit