Problem 10-13 (Algorithmic) Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,800 copies. The cost of one copy of the book is $13.5. The holding cost is based on an 17% annual rate, and production setup costs are $135 per setup. The equipment on which the book is produced has an annual production volume of 26,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 14 days. Use the production lot size model to compute the following values: Minimum cost production lot size. Round your answer to the nearest whole number. Do not round intermediate values.

Answer: 61.84%

Explanation:

The Return on Assets is a ratio that measures how effectively assets are being utilized to earn revenue.

The formula is;

Return on total Asset = Operating Income /Average Total assets

Operating Income = Net Income + Interest expense = 181,000 + 24,000 = $205,000

Average Total Assets = (Beginning Assets + Ending Assets) / 2 = (406,000 + 257,000) / 2 = $331,500

Return on Assets = 205,000/331,500 = 61.84%

The options listed are most probably for a variant of this question.

Answer:

a. What is the cost of the asset being depreciated?

the cost of the asset = $35,000 / 0.4 = $87,500

b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?

salvage value = $87,500 - (5 x $15,750) = $8,750

c. Which method will produce the highest charge to income in Year 1?

double declining results in the highest depreciation expense

d. Which method will produce the highest charge to income in Year 4?

straight line results in the highest depreciation expense

e. Which method will produce the highest book value for the asset at the end of Year 3?

straight line, book value = $87,500 - (3 x $15,750) = $40,250

f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

double declining balance, since the carrying value is lowest = $87,500 - $35,000 - $21,000 - $12,600 = $18,900

e.g. if the assets is sold at $30,000, the gain = $11,100

under straight line method a $30,000 resale price would result in a loss(= $30,000 - $40,250 = -$10,250), while sum of years' digit would result in a gain = $30,000 - ($87,500 - $26,250 - $21,000 - $15,750) = $5,500

Answer:

The reimbursement of medical​ expenses to a taxpayer is not considered as an income or taxable by the IRS.

If the taxpayer had previously deducted the expense and it resulted in tax savings, the reimbursement of a medical expense by insurance would be taxable. More so, there would have been no tax benefit if either the taxpayer had claimed the standard deduction, or if the floor for the medical deduction exceeded the medical expenses.

Answer:

d. Is it possible to make decisions without collecting data?

Explanation:

There is no need for such a question since you are already requested to begin developing a data collection plan.

However, questions related to who will be responsible for collecting the data are important as they enable you to properly plan. Also, knowing the source of the data and the reason for collecting the data are important questions.

Data collection plan is used to collect data in order to make decision while collecting the data, one should not ask whether the decision can be taken without collecting data.

What is a data collection plan?

It is a thoughtful approach used to collect the baseline data as well as data which guides to the root cause. The plan includes questions like: How, When, Where and From whom the data is collected.

The questions not asked while developing  a data collection plan is whether it's possible to make decisions without collecting data.

Therefore, option d appropriately describes the above statement.

Learn more about data collection plan here:

brainly.com/question/3211223

Answer:

a. Straight-line method.  

Year         Depreciation expense ($)

  1                           10,530

  2                          14,040

  3                          14,040

  4                            3,510

b. Units-of-production method.  

Year           Depreciation expense ($)

 1                               7,800

 2                             14,950

 3                             12,350

 4                              7,020

c. Double-declining balance method

Year   Depreciation expense ($)

  1                              21,735

 2                              14,490

 3                               4,830

 4                               1,065

Explanation:

(a) the straight-line method

Note: See part a of the attached excel file for the depreciation schedule for Straight-line method.

In the attached excel file, the depreciation rate used for the Straight-line method is calculated as follows:

Straight line depreciation rate = 1 / Estimated useful life = 1 / 3 = 0.3333, or 33.33%

(b) units-of-output method

Note: See part b of the attached excel file for the depreciation schedule for units-of-production method.

(c) the double-declining-balance method.

Note: See part c of the attached excel file for the depreciation schedule for double-declining-balance method.

In the attached excel file, the depreciation rate used for the Double- declining-balance method is calculated as follows:

Double-declining depreciation rate = Straight line depreciation rate * 2 = (1/3) * 2 = 0.666667, or 66.6667%

Note:

Under this double-declining-balance method, the depreciation expenses for Year 4 is calculated by deducting the residual value of $1,350 from the Year 4 Beginning depreciable amount (i.e. $2,415 - $1,350 = $1,065). The residual value of $1,350 therefore represents the book value at the end of Year 4.