Answer:
Explanation:
A) The time-phased product structure for the bracket is attached as a document.
B) The casting will start on week 5 and week 9.
Answer:
Decrease in operating income $3,200
Explanation:
The computation is shown below:
Particulars Old method New method
Sales $1,710,000 $1,786,000
(9,000 units × $190) (9,400 units × $190)
Less:
Variable expenses $513,000 $592,200
(9,000 units × $57) (9,400 units × $63)
Contribution margin $1,197,000 $1,193,800
Less:
Fixed expenses ($913,000) ($913,000)
operating income $284,000 $280,800
Decrease in income $3,200
We simply take an difference of operating income under both methods that reflects the decrease in operating income
Answer:
the net present value is $606.64
Explanation:
The computation of the net present value is shown below:
But before that the present value of annual cash inflows is to be determined i.e.
Present value = annual cash flows × PVIFA(8%,4years)
= $8,400 × 3.3121
= $27,821.64
Now
Net present value = Present value of cash flows - initial investment
= $27,821.64 - $27,215
= $606.64
Hence, the net present value is $606.64
Answer:
More than $0 but less than or equal to $100.
Explanation:
The transportation cost is $2.
Load summary is AB = 12, AC = 25, AD = 12, BC = -19, BD = 21, CD = 34.
The total cost to move product between A and D and B and C combined is ;
A and D = 12 * $2 = $24
B and C = 19 * $2 = $38.
Answer:
The correct option is b. irrelevant cost.
Explanation:
An irrelevant cost can be described as an expense that will not be affected by the decisions of thee management. Therefore, irrelevant costs are those that will not change if you choose one option over another in the future.
Therefore, the $4,000 of annual operating costs that are common to both the old and the new machine are an example of irrelevant cost. This is because the 4,000 of annual operating costs will not be affected or will still be incurred whether Jarett Motors managment decide to keep its existing car washing machine or purchase a new one.
Therefore, the correct option is b. irrelevant cost.
Answer:
Option "B" and "D" are correct answer
Explanation:
a. Compute Selma's accrual basis gross receipts for 2015.
b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2020 was $1,300,000. At the end of 2019, she had merchandise on hand with a cost of $150,000. At the end of 2020, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2015.
Answer:
a. $1,350,000
b. $200,000
Explanation:
The computation is shown below;
a. Accrual basis gross receipts for the year 2015 is
= Cash receipts + account receivable from year 2015 - collection in account receivable - proceeds of bank loan
= $1,400,000 + $250,000 - $200,000 - $100,000
= $1,350,000
b. Now the Gross income or profit is
As we know that
Gross profit is
= Sales - cost of goods sold
= $1,350,000 - ($1,300,000 + $150,000 - $300,000)
= $1,350,000 - $1,150,000
= $200,000
Selma's accrual basis gross receipts for 2015 would be $1,350,000, and her gross income (profit) from merchandise sales for the same year would be $200,000.
To calculate Selma's accrual basis gross receipts for 2015, we need to adjust her cash receipts, which totals up to $1.4 million. The receipts include $200,000 that was actually earned in 2014 (collected in 2015) and a $100,000 bank loan that does not count as earned revenue. So, we subtract these from the total receipts: $1,400,000 - $200,000 - $100,000 = $1,100,000. And we add the amounts receivable at the end of 2015 which is $250,000. So, Selma's accrual basis gross receipts for 2015 is $1,350,000 ($1,100,000 + $250,000).
For the second part of your question, Selma's gross income (profit) from merchandise sales for 2015 can be computed by calculating the cost of goods sold (COGS) and subtracting this from the gross receipts calculated above. Start by adding the cost of merchandise on hand at the end of 2019 ($150,000) to the purchases made in 2020 ($1,300,000). This gives us a presupposed cost of goods available for sale. We then subtract the cost of the merchandise on hand at the end of 2020 ($300,000). The COGS is, therefore, $1,150,000. Subtraction the COGS from the gross receipts gives us a gross income of $200,000 ($1,350,000 - $1,150,000).
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