Answer: a) below 27,500 units Dallas is best. Above, Detroit is best.
b) below 20,500 units Dallas is best. Above, Detroit is best.
Explanation:
To calculate we shall be using the Point of Indifference Value.
Now, let's borrow x from Algebra and denote it as the Quantity (Q) where the cost of the 2 processes are equal..
a) Total cost = Fixed Costs + ( Variable cost * Q)
Dallas Total Cost = 560,000 + 30x
Detroit Total Cost = 780,000 + 22x
Equating them we get,
560,000 + 30x = 780,000 + 22x
8x = 220,000
x = 27,500 units.
Below 27,500 radio units then Dallas would be preferable due to lower fixed costs. Above 27,500 radio though then Detroit would be better due to lower Variable costs.
b) Dallas costs rise by 10%
= 560,000(1 + 0.1)
= $616,000 is their new cost.
Using the same methodology as A above we say,
616,000 + 30x = 780,000 + 22x
8x = 164,000
x = 20,500 units.
Below 20,500 radio units then Dallas would be preferable due to lower fixed costs. Above 20,500 radio though then Detroit would be better due to lower Variable costs.
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Answer:
The correct answer is 35%.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the Weighted average contribution margin ratio by using following formula:
weighted-average contribution margin ratio = (Contribution margin ratio × Sales of sporting goods) + (Contribution margin ratio × Sales of sporting gears)
= ( 30 × 75% ) + ( 50 × 25%)
= 22.5% + 12.5%
= 35%
The amount of cash should be $315,000 will be needed to payback.
At the time When the note payable is signed, the entries should be
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable should be
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
here,
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019, the Note Payable plus Interest that needs to be paid should be
Note Payable $315,000 (debit)
Cash $315,000 (credit)
learn more about cash here: brainly.com/question/2055753
Answer:
$315,000 will be needed to pay back
Explanation:
When the note payable is signed, the entries would be as follows :
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable is
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019 the Note Payable plus Interest that needs to be paid would be :
Note Payable $315,000 (debit)
Cash $315,000 (credit)
B) Objectives and Task Method As a result, the "objectives and task" method are regarded as one of the most logical budgeting strategies for advertising.
The objectives and goals of marketing and advertising are established using this strategy.
The objective task method, which is also known as the "objective and task" method, is a system in which a business decides how much money to put into its marketing budget based on specific goals rather than just on sales revenues or projections.
The competitive paritymethod works on the premise that competing businesses have comparable marketing objectives and rationally implement them. Therefore, if a competitor spends approximately 5% of net sales on advertising, the company will match that competitor's advertising budget.
To learn more about Objectives and Task Method here:
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Answer:
The correct answer for option (a) is $515,000 and for option (b) is $560,000.
Explanation:
According to the scenario, the given data are as follows:
Earnings before depreciation and taxes = $620,000
Depreciation = $320,000
So, we can compute the cash flow by using following formula:
Cash Flow = EBIT × (1 - Tax Rate) + Depreciation
(a). For tax bracket = 35%
Here EBIT = EBITDA - Depreciation
= $620,000 - $320,000
= $300,000
Now by putting the value in the formula, we get:
Cash Flow = $300,000 × ( 1 - 35%) + $320,000
= $300,000 × 0.65 + $320,000
= $195,000 + $320,000
= $515,000
Hence, the cash flow is $515,000 for 35% tax bracket.
(b) For tax bracket = 20%
Here EBIT = EBITDA - Depreciation
= $620,000 - $320,000
= $300,000
Now by putting the value in the formula, we get:
Cash Flow = $300,000 × ( 1 - 20%) + $320,000
= $300,000 × 0.8 + $320,000
= $240,000 + $320,000
= $560,000
Hence, the cash flow is $560,000 for 20% tax bracket.
Answer:
S/n General Journal Debit Credit
a Insurance expense $1,200
Prepaid Insurance $1,200
(To record insurance expired)
b Supplies expense $6,200
Supplies $6,200
($5,000 + $2,000 - $800)
(To record supplies used)
Lopez company should adjust their prepaid insurance and Zim company should adjust their supplies account due to their use during the year. Both adjustments will be debits to relevant expense accounts & credits to Prepaid Insurance for Lopez, and Supplies for Zim.
The two adjustments that need to be made are for the prepaid insurance and the supplies. To compute the adjustment for the prepaid insurance, we would divide the total insurance payment by the number of months covered to find the monthly cost. For Lopez Company, six months of insurance is valued at $1,200, therefore the monthly cost is $200. From July 1 to December 31, six months have passed, so $1,200 of insurance has been used up. As a result, we need to debit the Insurance Expense account by $1,200 and credit Prepaid Insurance by $1,200.
Regarding Zim Company, the beginning balance in the Supplies account was $5,000, and it purchased $2,000 more throughout the year - that sum up to $7,000 of total supplies. At the end of the year, they still had $800 left, so they used $6,200 of supplies during the year. The adjustment will be a debit to Supplies Expense by $6,200 and a credit to Supplies by $6,200, reflecting the fact that those supplies are no longer available for use.
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The Micro Islands have a comparative advantage in producing neither good.
The Micro Islands have a comparative advantage in producing bamboo towels.
The Micro Islands have a comparative advantage in producing botanical soaps.
The Micro Islands have a comparative advantage in producing both goods.
Answer:
The Micro Islands have a comparative advantage in producing botanical soaps.
Explanation:
Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.
The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.
While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.