BUSINESS COLLEGE

Harwinton, Inc. anticipates sales of 56,000 units, 54,000 units, 57,000 units and 56,000 units in July, August, September and October, respectively. Company policy is to maintain an ending finished-goods inventory equal to 50% of the following month's sales. On the basis of this information, how many units would the company plan to produce in September?

Answers

Answer 1
Answer:

Answer:

The correct answer is 56,500 units.

Explanation:

According to the scenario, the computation of the given data are as follows:

Sales for September = 57,000 units

As Beginning and ending inventory should be 50% of following month sales

So, Beginning inventory = 57,000 × 50% = 28,500

And Ending inventory = 56,000 × 50% = 28,000

So, we can calculate the units to be produce in September by using following formula:

Units produce in September = Sales for September +  Ending inventory - Beginning inventory

By putting the value, we get

= 57,000 + 28,000 - 28,500

= 56,500 units

Related Questions

Parr Hardware Store had net credit sales of $6.5mil and cost of goods sold of $5mil for the year. The Accounts Receivable balances at the beginning and end of the year were $600k and $700k, respectively. The receivables turnover was
Tidy Limited purchased a new van on January 1, 2018. The van cost $40,000. It has an estimated life of ten years and the estimated residual value is $3,500. Tidy uses the double-declining-balance method to compute depreciation. What is the adjusted balance in the Accumulated Depreciation account at the end of 2019
Consider how McKnight Valley River Park Lodge could use capital budgeting to decide whether the $ 11 comma 500 comma 000 River Park Lodge expansion would be a good investment. Assume McKnight ​Valley's managers developed the following estimates concerning the​ expansion: LOADING...​(Click the icon to view the​ estimates.) Assume that McKnight Valley uses the​ straight-line depreciation method and expects the lodge expansion to have a residual value of $ 950 comma 000 at the end of its ten​-year life. The average annual net cash inflow from the expansion is expected to be $ 2 comma 779 comma 548. Compute the payback for the expansion project. Round to one decimal place.
I sell bottled water that costs me $1 to produce. I mark each bottle up by $2. What is my margin on price
Bill Buckely has​ split-limit 100​/200​/40 automobile liability insurance on his 2012 Subaru. Driving home from work in a​ snowstorm, he hit a​ Mercedes, slid into a​ guardrail, and knocked down a telephone pole. Damages to the​ Mercedes, the​ guardrail, and the telephone pole were ​$33,428​, ​$7,422​, and ​$12,041 respectively. How much will​ Bill's insurance company​ pay? How much will Bill be required to pay​ directly? ​Bill's insurance company will pay ​$nothing. ​(Round to the nearest​ dollar.) The amount Bill will be required to pay directly is ​$nothing. ​(Round to the nearest​ dollar.)

Decision Making Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. A simplified Bottling Department cost of production report separating the cost of bottling the four flavors follows: A B C D E
1 Orange Cola Lemon-Lime Root Beer
2 Concentrate $ 4,625 $129,000 $ 105,000 $ 7,600
3 Water 1,250 30,000 25,000 2,000
4 Sugar 3,000 72,000 60,000 4,800
5 Bottles 5,500 132,000 110,000 8,800
6 Flavor changeover 3,000 4,800 4,000 10,000
7 Conversion cost 1,750 24,000 20,000 2,800
8 Total cost transferred to finished goods $19,125 $391,800 $324,000 $36,000
9 Number of cases 2,500 60,000 50,000 4,000
10 Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors.
Determine the cost per case for each of the four flavors. Round your answers to two decimal places
Orange Cola Lemon-Lime Root Beer
per case $_____ $_____ $_____ $_____

Answers

Answer and Explanation:

As per the scenario the solution of cost per case for each of the four flavors is shown below:-

Particulars                 Orange      Cola        Lemon Lime     Root Beer

Total Cost

transferred to

finished goods a        $19,125     $391,800  $324,000        $36,000

Number of cases b      2,500        60,000    50,000              4,000

Cost Per Case               $7.65         $6.53        $6.48               $9

(c = a ÷ b)

Therefore we divide the total cost transferred to finished out by number of cases to figure out the cost per case.

Suppose the demand and supply curves for good X are both linear. And, the demand price for the first unit of X is $14, and the supply price for the first unit of X is $3. If the equilibrium price for good X is $8 and the equilibrium quantity of X is 12,000 units, then total consumer surplus is $________, total producer surplus is $________, and total social surplus is $__________ a. $36,000; $30,000; $66,000b. $30,000; $36,000; $66,000c. $6; $5; $11d. $6,000; $5,000; $11,000

Answers

Answer:

a. $36,000; $30,000

Explanation:

Consumer Surplus is the difference between price paid by the consumer & maximum price he is willing to pay. Graphically it is the triangular area above the equilibrium price, below the demand curve.

Producer Surplus is the difference between price received by the seller & his minimum selling price. Graphically it is the triangular area below the equilibrium price, above the supply curve.

So : The formula = 1/2 (price differential) (quantity)

Consumer Surplus = 1/2 (14-8)(12000) = 1/2 (6) (12000) = 1/2 (72000)

= 36000

Producer Surplus = 1/2 (8-3)(12000) = 1/2 (5) (12000) = 1/2 (60000)

= 30000

You need to compose a message to your department explaining that your company is being acquired by a larger company, and you know this news will not be received well by a number of employees. You begin the message with the facts. Then you present an explanation of the situation by focusing on the benefits to the employees.What techniques should you use to cushion the bad news?A. Position the bad news strategically between other sentences.B. Position bad news at the end of the paragraph.C. Accentuate the positive.D. Organize the bad news using bullet points.

Answers

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.

There is a direct relationship between the par value and market value of common stock: stocks with a low par value have a low market value, while stocks with a high par value have a high market value.a. True
b. False

Answers

Answer:

The statement is false.

Explanation:

As the market value of the stock depends upon the industry risk, political, economical, technological, etc factors and also largely depends upon the business performance which is the profits generated by the organization and its cashflow health. So higher par value has nothing to do with higher market value. Hence the statement is totally incorrect.

Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 9,000
Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:
Material A ($5 per lb.) 3.0 lbs.
Material B ($18 per lb.) 0.5 lb.

The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is ______.

a.$1,170,000 for A; $702,000 for B
b.$1,080,000 for A; $1,296,000 for B
c.$1,080,000 for A; $648,000 for B
d.$1,125,000 for A; $675,000 for B

Answers

Answer:

c.$1,080,000 for A; $648,000 for B

Explanation:

For computing the total direct material purchase first we have to find out the production units which are shown below:

As we know that

Production units = Ending inventory units + sales units - beginning inventory units

= 9,000 units + 75,000 units - 12,000 units

= 72,000 units

Now the total direct material purchase for Material A and Material B is

For Material A

= 72,000 units × 3 lbs × $5 per lb

= $1,080,000

For Material B

= 72,000 units × 0.5 lbs × $18 per lb

= $648,000

Therefore, the third option is correct

Rogue Drafting has debt with a market value of​ $450,000, preferred stock with a market value of​ $150,000, and common stock with a market value of​ $350,000. If debt has a cost of​ 8%, preferred stock a cost of​ 10%, common stock a cost of​ 12%, and the firm has a tax rate of​ 30%, what is the​ WACC?

Answers

Answer:

the  WACC is 8.65%.

Explanation:

Total firm capital = $450,000 + $150,000 + $350,000

                            = $950,000

Weight of debt in the capital structure = $450,000/ $950,000

                                                                = 47.37%

Weight of preferred stock in the capital structure

= $150,000/ $950,000

= 15.79%

Weight of common stock in the capital structure

= $350,000/ $950,000

= 36.84%  

The weighted average cost of capital is calculated using the below formula:

WACC= Wd*Kd(1 - t) + Wps*Kps + We*Ke

where:

Wd = Percentage of debt in the capital structure.

Kd = The before tax cost of debt

Wps = Percentage of preferred stock in the capital structure

Kps = Cost of preferred stock

We = Percentage of common stock in the capital structure

Ke = The cost of common stock

T = Tax rate

WACC = 47.37%*8%*(1 – 0.30) + 0.1579*10% + 36.84%*12%

           = 2.65272% + 1.5790% + 4.4208%

           = 8.65252%

Therefore, the  WACC is 8.65%.

Final answer:

The Weighted Average Cost of Capital (WACC) can be calculated by determining the weight of each component of the firm's capital structure and multiplying it by its respective cost. In this case, the WACC is 8.03%.

Explanation:

To calculate the Weighted Average Cost of Capital (WACC), we need to determine the weight of each component of the firm's capital structure and multiply it by its respective cost. The formula for WACC is:

WACC = (Debt / Total Capital) * Cost of Debt + (Preferred Stock / Total Capital) * Cost of Preferred Stock + (Common Stock / Total Capital) * Cost of Common Stock

Using the given information:

Debt = $450,000, Preferred Stock = $150,000, Common Stock = $350,000

Cost of Debt = 8%, Cost of Preferred Stock = 10%, Cost of Common Stock = 12%

We can substitute these values into the formula to calculate the WACC:

WACC = (450,000 / (450,000 + 150,000 + 350,000)) * 8% + (150,000 / (450,000 + 150,000 + 350,000)) * 10% + (350,000 / (450,000 + 150,000 + 350,000)) * 12%

Simplifying the equation:

WACC = 0.4 * 8% + 0.133 * 10% + 0.31 * 12%

Calculating the percentages:

WACC = 0.032 + 0.0133 + 0.0372

WACC = 8.03%

Learn more about Weighted Average Cost of Capital (WACC) here:

brainly.com/question/30746642

#SPJ3
Other Questions
Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is its maximum profit? $12,500 $8000 $5000 $7500
Which of the following is an appropriate solution to an overspending allowance?A. Keep spending money until it is appropriate to write a new budget at the beginning of the month.B. Borrow money.C. Find other places in the budget where money can be re-purposed.D. Remember that over the course of a year everything will balance out.
Hubbard Industries just paid a common dividend, D0, of $2.00. It expects to grow at a constant rate of 3% per year. If investors require a 8% return on equity, what is the current price of Hubbard's common stock
Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?