Answer:
Shipway Company
Journal Entries:
a. Direct Method:
Apr. 13. Debit Bad Debts Expense $2,120
Credit Accounts Receivable (Dean Sheppard) $2,120
To write-off account deemed uncollectible.
May 15. Debit Cash $1,060
Debit Bad Debts Expense $1,760
Credit Accounts Receivable (Dan Pyle) $2,820
To record the receipt of cash and write-off of uncollectible balance.
July 27. Debit Accounts Receivable $2,120
Credit Bad Debts Expense $2,120
To reinstate the account.
Debit Cash $2,120
Credit Accounts Receivable $2,120
To record the receipt of cash.
Dec. 31 Debit Bad Debts Expense $13,375
Credit Accounts Receivable $13,375
To write-off the following uncollectible accounts: Paul Chapman $2,120 Duane DeRosa 3,590 Teresa Galloway 4,640 Ernie Klatt 1,310 Marty Richey 1,715.
b. Allowance Method:
Apr. 13. Debit Allowance for Uncollectibles $2,120
Credit Accounts Receivable (Dean Sheppard) $2,120
To write-off account deemed uncollectible.
May 15. Debit Cash $1,060
Debit Allowance for Uncollectibles $1,760
Credit Accounts Receivable (Dan Pyle) $2,820
To record the receipt of cash and write-off of uncollectible balance.
July 27. Debit Accounts Receivable $2,120
Credit Allowance for Uncollectibles $2,120
To reinstate a previously written-off account.
Debit Cash $2,120
Credit Accounts Receivable $2,120
To record the receipt of cash on account.
Dec. 31 Debit Allowance for Uncollectibles $13,375
Credit Accounts Receivable $13,375
To write-off of uncollectible accounts.
c. The amount by which Shipway Company’s net income would have been higher (lower) under the direct write-off method than under the allowance method is:
= $0
Explanation:
a) Data and Analysis:
Direct Method:
Apr. 13. Bad Debts Expense $2,120 Accounts Receivable (Dean Sheppard) $2,120
May 15. Cash $1,060 Bad Debts Expense $1,760 Accounts Receivable (Dan Pyle) $2,820
July 27. Accounts Receivable $2,120 Bad Debts Expense $2,120 Cash $2,120 Accounts Receivable $2,120
Dec. 31 Bad Debts Expense $13,375 Accounts Receivable $13,375
Uncollectible accounts: Paul Chapman $2,120 Duane DeRosa 3,590 Teresa Galloway 4,640 Ernie Klatt 1,310 Marty Richey 1,715
Allowance Method:
Apr. 13. Allowance for Uncollectibles $2,120 Accounts Receivable (Dean Sheppard) $2,120
May 15. Cash $1,060 Allowance for Uncollectibles $1,760 Accounts Receivable (Dan Pyle) $2,820
July 27. Accounts Receivable $2,120 Allowance for Uncollectibles $2,120 Cash $2,120 Accounts Receivable $2,120
Dec. 31 Allowance for Uncollectibles $13,375 Accounts Receivable $13,375
Uncollectible accounts: Paul Chapman $2,120 Duane DeRosa 3,590 Teresa Galloway 4,640 Ernie Klatt 1,310 Marty Richey 1,715
Explain five planning steps that are required to have a good business communication. Take any of the business as example and implement those five planning steps on it, as answer
The correct answer to this open question is the following.
Although you did not include any specific context or references, we can say the following.
The five planning steps that are required to have good business communication are the following.
1.- Establish attainable and specific goals. You can use the SMART formula.
2.- Identify who ypur audience is and where they are so you can be effective in sending your messages.
3.- Prepare the right strategy to implement your program. Have your communication department on the same page.
4.- Prepare the proper budget so you can run your program.
5.- Perform your program, monitor it, and evaluate your results.
For instance, Walmart is a corporation that makes communication a priority and invests time and money to run communications programs so every employee in the corporation is on the same page and can perform their jobs effectively, eliminate rumors, and be productive.
Identify the correct statement. Select one: a. Debt increases when the budget deficit decreases. b. A budget deficit is a stock variable, while debt is a flow variable. c. A budget deficit is a flow variable, while debt is a stock variable. d. A budget deficit and debt are both stock variables. e. The budget deficit decreases when aggregate demand decreases.
Answer:
c
Explanation:
A flow variable is a variable that is measured over a period in time
A stock variable is a variable that is measured at a point in time.
Budget deficit occurs when government spending exceeds income of the government.
Debt is the total amount owed by an entity
Budget deficit is a flow variable because it increases as debt increases Debt is measured at a point in time. It is a stock variable
When budget deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing
a mixed economy combines features of other economic system by
Answer:
allowing some government regulation of a mostly free market economy
Explanation:
Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a companyâs financial performance, as reflected by its return on equity (ROE). By using the DuPont equation, which disaggregates the ROE into three components, analysts can see why a companyâs ROE may have changed for the better or worse, and identify particular company strengths and weaknesses. The DuPont Equation A DuPont analysis is conducted using the DuPont equation, which helps to identify and analyze three important factors that drive a companyâs ROE.
Required:
What factors directly affect a companyâs ROE?
Answer:
DuPont Equation
The three factors that directly affect a company's ROE (Return on Equity) are:
1. Profit margin
2. Total asset turnover
3. Equity multiplier
Explanation:
The profit margin measures the operating efficiency of the company with higher sales leading to higher profit margins.
The total asset turnover is a financial measure that divides turnover by the total assets. It shows the efficiency achieved in the use of assets to generate sales revenue.
The equity multiplier measures the financial leverage of the company. It shows how the use of debts increases the value of the company's equity.
You are Howard Schultz, and you've just spent $100,000,000 to buy La Boulange. What would you do to get the maximum return in your investment in this company over the next three years?
Answer:
In order to get maximum returns from this investment, Howard Schultz should do the following-
a) Design the product of La Boulange so that they are included in the menu of starbucks so that people preferring to have La Boulange products can also be included in the customer base of starbucks.
b) La Boulange itself has a brand identity and was quite popular among people, hence instead of dissolving its identity, individual outlets must be run under the brand starbucks to maximize the annual turnover.
Explanation:
In order to get maximum returns from this investment, Howard Schultz should do the following-
a) Design the product of La Boulange so that they are included in the menu of starbucks so that people preferring to have La Boulange products can also be included in the customer base of starbucks.
b) La Boulange itself has a brand identity and was quite popular among people, hence instead of dissolving its identity, individual outlets must be run under the brand starbucks to maximize the annual turnover.
1. Jupiter Explorers has $9,800 in sales. The profit margin is 5%. There are 4,500 shares of stock outstanding. The market price per share is $1.90.
What is the price-earnings ratio?
2. A firm has a return on equity of 18%. The total asset turnover is 1.7 and the profit margin is 6%. The total equity is $7,200.
What is the amount of the net income?
Answer:
17.43
132.19
Explanation:
Net profit margin is an example of a profitability ratio. It measures he ability of a firm to earn a profit from its assets
Net profit margin = Net income / Revenue
0.05 = x / 9800
net income = 490
net income per share = 490 / 4500 = 0.109
p/e = 1.9 / 0.109 = 17.43
Using the Dupont formula, ROE can be determined using:
ROE = Net profit margin x asset turnover x financial leverage
ROE = (Net income / Sales) x (Sales/Total Assets) x (total asset / common equity)
On December 31, after making a concerted effort, management determines that it will not be able to collect the $1,200 owed to it by its customer Acme, Inc. The company uses the direct write-off method to account for uncollectible accounts.
Required:
Prepare the journal entry to record the reinstatement of the account receivable.
Answer:
Journal Entry to Record the Reinstatement of the Account Receivable:
Initial Write-off of Account:
December 1: Debit Bad Debts Expense $1,200
Credit Accounts Receivable (Acme, Inc.) $1,200
To write-off the account as uncollectible.
December 31: Debit Accounts Receivable (Acme, Inc.) $1,200
Credit Bad Debts Expense $1,200
To record the reinstatement of the accounts.
When the Cash is Collected:
December 31: Debit Cash $1,200
Credit Accounts Receivable (Acme, Inc.) $1,200
To record the cash receipt for reinstated account.
Explanation:
a) Data and Analysis:
December 1: Bad Debts Expense $1,200 Accounts Receivable (Acme, Inc.) $1,200
December 31: Accounts Receivable (Acme, Inc.) $1,200 Bad Debts Expense $1,200
December 31: Cash $1,200 Accounts Receivable (Acme, Inc.) $1,200
When the Jones were shopping for their present home, the asking price from the previous owner was $375,000.00. The Jones had decided they would pay no more than $365,000.00 for the house. After negotiations, the Jones actually purchased the house for $350,000.00. They, therefore, enjoyed a consumer surplus of
Answer:
$15,000
Explanation:
Calculation to determine the consumer surplus
Consumer surplus=$365,000.00-$350,000.00
Consumer surplus=$15,000
They, therefore, enjoyed a consumer surplus of $15,000
Kingbird, Inc. sells 450 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $50 a share. Kingbird sold the shares for $51 a share. The entry to record the sale is:_____.
Answer:
Debit : Cash $22,950
Credit : Common Stock $22,950
Explanation:
When shares were held sorely for investment, on date of sale, we simply record the cash proceeds and no gain on sale of shares is recognized.
Therefore, Cash Proceeds = $51 x 450 shares = $22,950
Information related to Kerber Co. is presented below.
1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Wilkes.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Wilkes Company in full.
Collapse question
Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
No. Date Account Titles and Explanation Debit Credit
1. April 5April 6April 7April 8April 15
2. April 5April 6April 7April 8April 15
3. April 5April 6April 7April 8April 15
4. April 5April 6April 7April 8April 15
5. April 5April 6April 7April 8April 15
Answer:
Date Account titles & Explanation Debit Credit
Apr-05 Merchandise Inventory $23,000
Accounts Payable $23,000
Apr-06 Merchandise Inventory $900
Cash $900
Apr-07 Equipment $26,000
Accounts Payable $26,000
Apr-08 Accounts Payable $3,000
Merchandise Inventory $3,000
Apr-15 Accounts Payable $20,000
($23,000-$20,000)
Merchandise Inventory $400
($20,000*2%)
Cash $19.600
Income elasticity measures the:____.
A. Responsiveness of quantity demanded for one good to a percentage change in price of another good.
B. Percentage change in quantity demanded given a percentage change in wealth.
C. Responsiveness of quantity demanded to a percentage change in income.
D. Way in which consumers switch from one product to another when price rises.
Answer:
C. Responsiveness of quantity demanded to a percentage change in income.
Explanation:
Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.
Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.
Income elasticity is used to find out if a good is a necessity or a luxury good.
The demand for goods that are a necessity does not change with a change in income.
However demand for a luxury good increases as income increases and vice versa
Which of the following statements about a partnership is correct? Group of answer choices The personal assets of a partner are included in the partnership accounting records. A partnership is not required to file an information tax return. Each partner's share of income is taxable to the partnership. A partnership represents an accounting entity for financial reporting purposes.
Answer:
do you have a picture I can help you
The advantage to savers and investors of receiving compound interest rather than simple interest is that future values are larger because interest is earned on accumulated interest payments. Also, the difference in future values becomes smaller as time goes by.
a. True
b. False
Answer:
B. false
Explanation:
over time it becomes larger because you are bringing in more money from interest sitting there
Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 8%. Now, with 7 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to 12%. What is the price of the bond now
Answer:
$814.10
Explanation:
Calculation to determine what the price of the bond now
Using this formula
Bond price = PV of coupon payments + PV of face value
Bond price= C×((1 / r) – {1 / [r(1 + r)t]}) + FV / (1 + r)t
Let plug in the formula
Bond price= [(.080 ×$1,000) / 2] ×[[1 / (.12 / 2)] – (1 / {(.12 / 2)[1 + (.12 / 2)](7 ×2)})] + $1,000 / [1 + (.12 / 2)](7 ×2)
Bond price= $814.10
Therefore the price of the bond now is $814.10
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 75.0 when he fully retires, he will wants to have $2,552,589.00 in his retirement account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be
Dianne Ruth withdrew $8,000 from her educational savings account and used $6,000 to pay for qualified higher education expenses. The remaining balance of $2,000 was used to purchase clothes. On the date of the distribution, her educational savings account had $25,000 balance including $20,000 she had contributed.
How much of the $8,000 is tax free?
Answer:
$7,600
Explanation:
Calculation to determine How much of the $8,000 is tax free
Step 1 is to calculate the % using this formula
%=Savings ratio ROC Contributed/Total balance
Let plug in the formula
%=$20,000/$25,000
%= .80*100
%=80%
Step 2 is to calculate the ROC tax free using this formula
ROC tax free=% x Distribution
Let plug in the formula
ROC tax free=.80x 8000
ROC tax free=$6,400
Step 3 is to Contained earnings in distribution using this formula
Contained earnings in distribution=Distribution - ROC tax free
Let plug in the formula
Contained earnings in distribution=$8,000-$6,400
Contained earnings in distribution= $1,600
Step 4 is to calculate Excludable earning using this formula
Excludable earning=(Qualified exp/distribution ) x Earning contained
Let plug in the formula
Excludable earning=($6,000/$8,000) x $1,600
Excludable earning= $1,20/
Step 5 is to calculate the Taxable amount using this formula
Taxable =Earnings - Excludable
Let plug in the formula
Taxable=$1,600-$1,200
Taxable =$400
Now let determine the Tax free using this formula
Tax free = Distribution- Taxable
Let plug in the formula
Tax free=$8,000- $400
Tax free=$7,600
Therefore How much of the $8,000 is tax free will be $7,600
AAA Inc. is a levered firm, and ZZZ Inc. is an unlevered firm. They are exactly the same in every possible way, however they have different capital structures. AAA Inc. and ZZZ Inc. each expect to generate $11.1 million in earnings before interest and taxes, every year, in perpetuity. Both AAA Inc. and ZZZ Inc. do not retain any net income and distribute all of it as dividends to their stockholders. Levered AAA Inc. has debt with neverending interest payments which has the current market value of $59 million and has an annual interest rate of 5 percent. Also, AAA Inc. has 1.7 million shares outstanding, and each share sells for $75 in the market. Unlevered ZZZ Inc. has no debt, 3.4 million shares outstanding, and each share goes for $58 in today's market. Both AAA Inc. and ZZZ Inc. do not pay taxes on their income.
Required:
Calculate the equity value of each company.
Answer:
AAA Inc. and ZZZ Inc.
AAA Inc ZZZ Inc.
Equity value = $127.5 million $197.2 million
Explanation:
a) Data and Calculations:
AAA Inc ZZZ Inc.
Annual earnings before interest and taxes $11.1 million $11.1 million
Annual interest (5% of $59 million) $2.95 million
Income taxes $0 $0
Annual dividends payments $8.15 million $11.1 million
Annual retained earnings $0 $0
Current market value of debts $59 million $0
Outstanding shares 1.7 million 3.4 million
Market price per share $75 $58
Equity value = (outstanding shares * market price)
= $127.5 million $197.2 million
(1.7 million * $75) (3.4 million * $58)
Total assets $186.5 million $197.2 million
Alternative Production Procedures and Operating Leverage Assume Sharpie, a brand of Newell Brands, is planning to introduce a new executive pen that can be manufactured using either a capital-intensive method or a labor-intensive method. The predicted manufacturing costs for each method are as follows: Capital Intensive Labor Intensive Direct materials per unit $ 10.00 $ 12.00 Direct labor per unit $ 4.00 $ 12.00 Variable manufacturing overhead per unit $ 5.00 $ 2.00 Fixed manufacturing overhead per year $ 1,800,000 $ 500,000 Sharpies market research department has recommended an introductory unit sales price of $100. The incremental selling costs are predicted to be $250,000 per year, plus $4 per unit sold. (a) Determine the annual break-even point in units if Sharpie uses the: Note: Round both answers UP to the nearest whole number.
Answer:
For Capital Incentive manufacturing method = 26,623 Units
For Labor Incentive manufacturing method = 10,714 Units
Explanation:
We are asked to find out the annual break - even point in units if Sharpie uses the Capital Intensive Method and Labour intensive Method.
Solution:
1. For Capital Intensive Method:
Direct Materials = 10
Direct Labor = 4
Variable MOH = 5
Variable Selling = 4
Total Variable Cost = T = 23
Selling Price = P = 100
Contribution Margin = M = P-T = 77
Fixed Overhead:
Fixed MOH = 1800000
Fixed Selling costs = 250000
Total Fixed Costs = 2050000
Break Even Point in Units = Total Fixed Cost / M = 26623
2. For Labor Intensive Method:
Direct Materials = 12
Direct Labor = 12
Variable MOH = 2
Variable Selling = 4
Total Variable Cost = T = 30
Selling Price = P = 100
Contribution Margin = M = P-T = 70
Fixed Overhead:
Fixed MOH = 500000
Fixed Selling costs = 250000
Total Fixed Costs = 750000
Break Even Point in Units = Total Fixed Cost / M = 10714
How does a business achieve economies of scale?
Answer:
Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. ... The larger the business, the more the cost savings.
Distribution network is not required for
product.
O Standardised
O Durable
O Unstandardised
O Perishable
Answer:
O Perishable
Explanation:
The distribution network required for the products that are standardised, durable and unstandardised that means for storage purpose
But in the case of the perishable goods, the goods that are not stored for the longer time that means it consumed immediately like milk, bread, eggs, etc
So as per the given option, the last option should be relevant
James Perkins wants to have a million dollars at retirement, which is 15 years away. He already has $200,000 in an IRA earning 8 percent annually. How much does he need to save each year, beginning at the end of this year, to reach his target
Solution :
Given :
James needs $ 1,000,000 after 15 years.
His IRA deposit is $ 200,000 and is earning at the rate of 8% per annum.
Maturity value of $200,000 after 15 years = [tex]2000000 \times( 1.08)^{15}[/tex]
= $ 634,434.
Balance fund needed after 15 years = 1,000,000 - 634,434
= $ 365,566
Therefore, the future value of the annuity is :
[tex]FV=A[\frac{(1+k)^n-1}{k}][/tex]
Here, FV = future annuity value = 365,566
A = periodical investment
k = interest rate = 8%
n = period = 15 years
∴[tex]365566 = A\frac{[(1.08)^{15}-1]}{0.08}[/tex]
A = 13,464
Thus, James needs to save $ 13,464 each year end to reach his target.
Kenneth Clark is saving for an Australian vacation in three years. He estimates that he will need $4,970 to cover his airfare and all other expenses for a week-long holiday in Australia. If he can invest his money in an S&P 500 equity index fund that is expected to earn an average annual return of 11.4 percent over the next three years.
Required:
How much will he have to save every year if he starts saving at the end of this year?
Answer:
$1481.37
Explanation:
Annual savings = future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
[(1.114)^3 - 1 ] / 0.114 = 3.3549996
$4,970 / 3.3549996 = $1481.37
What are the opportunity offers by
vocational education?
Answer:
Where I grew up, I went to a vocational school for just the beginning of the year, then left to a charter school, At a vocational school, I can choose a cooking class, welding, mechanic, and some other neat stuff, it's kinda of preparing you to be independent, but also you can do it working with other people too.
They are strict with absences and tardies, 3 tardies make one absence, and absences put penalties on your highschool resume/record, depending on how many penalties from absences and tardies you get, they kick you out of the school which is not fair if you have construction workers on the road slowing you down on your way to school for 3 months.
If you do a vocational school, collages you want to go to are more likely to take you in faster than a person who went to a regular high school.
Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500: Direct materials $ 280 Direct labor $ 150 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 70 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
Answer and Explanation:
The computation is shown below;
1.
Total hours for job A - 500
= Direct labor ÷direct labor wage rate
= $150 ÷ $15
= 10
Total over head cost = overhead cost per labor hours × no. of labor hours
= $20 × 10
= $200
total manufacturing cost = Direct materials cost + Direct labor cost + Total over head cost
= $280 + $150 + $200
= $630
2.
Cost assigned to each unit
= total manufacturing cost ÷ number of units
= $630 ÷ 70
= $9
Using the following information, compute NET INCOME.
Cost of Goods Sold $ 6,000
Interest Expense 1,100
Selling and Administrative Expense 750
Cash 400
Sales 10,000
Accrued Wages Payable 250
Dividends 700
Retained Earnings (beginning) 1,000
Income Tax Expense 1,200
a. $1,350
b. $700
c. $1,700
d. $950
e. $1,950
Answer:
d. $950
Explanation:
Calculation to determine the NET INCOME
Sales $ 10,000.00
Cost of goods sold $ 6,000.00
Gross margin $ 4,000.00
($10,000-$6,000)
Selling and administrative expenses $ 750.00
Net operating income $ 3,250.00
($4,000-$750)
Interest expense $ 1,100.00
Net income before taxes $ 2,150.00
($3,250-$1,100)
Income taxes $ 1,200.00
Net income $ 950.00
($2,150-$1,200)
Therefore the NET INCOME will be $950
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order?
A. No, because additional production would exceed capacity.
B. No, because incremental costs exceed incremental revenue.
C. No because incrementa conse o Yes, because incremental revenue exceeds incremental costs.
D. Yes, because incremental costs exceed incremental revenues.
E. No, because the incremental revenue is too low.
Answer:
D. Yes, because incremental costs exceed incremental revenues.
Explanation:
Given that
The Selling price of the order is $5
The Variable cost of manufacturing is $3
The Contribution per unit is $2
The Number of units is 1500
now
Total contribution
= 1500 × $2
= $3,000
Less: Machine costs ($1000)
Tota incremental revenue $2,000
As the incremental revenue is positive and exceeds the incremental cost so the special order can be accepted
A certain smelting plant operates 24 hours per day, with three shifts of 200 workers per shift. Due to a flu epidemic, 1/4 of the workers on the first shift, 10 percent of the workers on the second shift, and 100 of the workers on the third shift are unable to work on a given day. If each worker and each shift has the same productivity, what is the approximate percent decrease in productivity due to the flu epidemic?
Answer:
35
Explanation:
12/1-34÷1 I just need points
XYZ Tile Installation Corporation measures its activity in terms of square feet of tile installed. Last month, the budgeted level of activity was 1,180 square feet and the actual level of activity was 1,270 square feet. The company's owner budgets for supply costs, a variable cost, at $3.50 per square foot. The actual supply cost last month was $4,980. What would have been the spending variance for supply costs
Answer:
The appropriate solution is "$535 U". A further explanation is described below.
Explanation:
The given values are:
Actual level of activity,
= 1270
Budgeted variable cost,
= $3.50
Actual supply cost,
= $4980
Now,
The spending variance for supply costs will be:
= [tex](Actual \ level \ of \ activity\times Budgeted \ variable \ cost)\times Actual \ supply \ cost[/tex]
= [tex](1270\times 3.50)-4980[/tex]
= [tex]4445-4980[/tex]
= [tex]535[/tex] (unfavorable)
A firm is considering expanding its current operations and has estimated the internal rate of return on that expansion to be 12.2%. The firm's WACC is 11.8%. Given this, you know that the: the project will have a lower debt-equity ratio than the firm's current operations. the appropriate discount rate for the project is between 11.8% and 12.2%. the project has slightly more risk than the firm's current operations. the expansion should be undertaken as it has a positive net present value.
Answer:
expansion should be undertaken as it has a positive net present value
What is a joint production process? Describe a special decision that commonly arises in the context of a joint production process. Briefly describe the proper approach for making this type of decision. Draw an example with detailed cost numbers.
Answer:
Quy trình sản xuất nói chung là quá trình con người tác động vào tài nguyên thiên nhiên để biến chúng thành các sản phẩm có ích cho xã hội.
Explanation: