Answer:
$195 per unit.
Explanation:
• Note. The question is incomplete as the concluding part requested for the calculation of contribution margin per unit.
The formula for contribution margin per unit is denoted as;
Contribution margin per unit = Selling price per unit - Variable cost per unit.
Given that;
Selling price per unit = $475
Variable cost per unit = $280
Contribution margi per unit
= $475 - $280
= $195 per unit
Like all entrepreneurs, Jennifer Hyman and Jennifer Fleiss recognized an opportunity they could exploit through technology, but they needed resources, such as capital and knowledge, to enter the market. How did they acquire these resources?
Answer: By securing funding from investors and hiring people with complementary skills
Explanation:
Entrepreneurs can acquire capital from other people who will then become investors and and give them funding. With this funding they will initiate the business they had in mind and provide returns for the investors.
Entrepreneurs do not always have to have all the skills required to run their business because they can simply employ people who do. These people with complimentary skills will ensure that the company has the knowledge required to do well.
Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows: Unit Selling Unit Variable Unit Contribution Product Price Cost Margin X $110 $70 $40 Y 70 50 20 Assuming that last year's fixed costs totaled $675,000, what was Rusty Co.'s break-even point in units
Answer:
Break-even point (units)= 30,000
Explanation:
Giving the following information:
Contribution Product:
Product X= $40
Product Y= $20
First, we need to calculate the sales proportion:
Product X= 5,000/40,000= 0.125
Product Y= 35,000/40,000= 0.875
To calculate the break-even point in units, we need to use the following formula:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 675,000 / (0.125*40 + 0.875*20)
Break-even point (units)= 30,000
A firm has a capital structure with $100 million in equity and $100 million of debt. The cost of equity capital is 15% and the pretax cost of debt is 7%. If the marginal tax rate of the firm is 25%, compute the weighted average cost of capital of the firm. Group of answer choices
Answer:
The weighted average cost of capital of the firm is 10.125%
Explanation:
The computation of the weighted average cost of capital is shown below:
= Cost of equity × weight of equity + cost of debt × (1 - tax rate) × weight of debt
= 15% × $100 ÷ ($100 + $100) + 7% × (1 - 0.25) × $100 ÷ ($100 + $100)
= 15% × 0.5 + 7% × 0.75 × 0.5
= 7.5% + 2.625%
= 10.125%
Hence, the weighted average cost of capital of the firm is 10.125%
We simply applied the above formula
Calculate the following if this country buys rice from other countries at the world price of $5 4. Quantity produced domestically
Answer:
If the country buys rice form another country at a price of $5 then its local market will be affected.
Explanation:
The countries import goods from other countries which are scarce in their local market. If the rice is imported from other country then its local rice market will be ruined. The local rice producers will be demotivated as their sales will decline. The local rice producers will have impact on their production and the prices of imported rice will be high.
This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income
Answer: $550,000
Explanation:
From the question, we are informed that Barney and Betty sold their home (sales price $750,000; cost $200,000) and that all the closing costs were paid by the buyer.
Since no unusual or hardship circumstances apply and all the closing stocks were paid by the buyer, the amount of the gain that will be included in gross income will be:
= $750,000 - $200,000
= $550,000
Bob bought some land costing $15,690. Today, that same land is valued at $45,417. How long has Bob owned this land if the price of land has been increasing at 5 percent per year
Answer:
t = 21.78436854 rounded off to 21.78 years
Explanation:
We are given the future value and the present value of land. To calculate the number of years of ownership of the land whose price has been increasing at 5% per year, we can use either use the formula for Future Value or Present value.
Here we are solving it using the future value formula which is,
FV = PV * (1 + r)^t
Where,
FV is Future Value
PV is Present value
r is the annual rate of increase
t is time period in years
Plugging in the values for FV, PV and r, we can calculate the value of t,
45417 = 15690 * (1 + 0.05)^t
45417 / 15690 = (1+0.05)^t
2.894646272 = (1.05)^t
Taking log on both sides.
Ln(2.894646272) / Ln(1.05) = t
t = 21.78436854 rounded off to 21.78 years
When computing economic growth, changes in nominal gross domestic product (GDP) must be adjusted to reflect population growth because:
Answer:
if real GDP remains the same, an increase in the population actually means a lower average standard of living
Explanation:
Economic Growth is a increase in productive capabilities of an economy over a given period of time, usually a year. the economy is able to satisfy more of it's consumers wants and need.
GDP is said to be is total value of all finale goods and services produced within an economy in a given period of time, usually a year.nominal or price GDP is a GDP with no adjustment for price.
Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $390 cash per truck for the cost of their annual tune-ups. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $438,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
Answer: a. Capital expenditure
b. Revenue expenditure
c. Revenue expenditure
d. Capital expenditure
Explanation:
Capital expenditures are usually huge expenditure on fixed assets such as land or building and they re usually incurred to generate revenue for the business.
Revenue expenditures are usually for short term basis and are operating expenses, that us required to run the business daily.
Based on the above explanation, the answers to the following will be:
a. Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. - Capital expenditure
b. Paid $390 cash per truck for the cost of their annual tune-ups. - Revenue expenditure
c. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. - Revenue expenditure.
d. Completed an addition to a building for $438,750 cash. - Capital expenditure
Check the attachment for the journal entry
Assume that Shavonne's marginal tax rate is 37 percent and her tax rate on dividends is 20 percent. If a corporate bond pays 8.8 percent interest, what dividend yield would a dividend-paying stock (with no growth potential) have to offer for Shavonne to be indifferent between the two investments from a cash-flow perspective?
Answer:
Interests received from corporate bonds is taxed as ordinary income = 8.8% x (1 - 37%) = 5.544% after tax yield
Non-qualified dividends are also taxed as ordinary income, therefore, the after tax yield of a non-qualified dividend that yields 8.8% = 5.544%
Qualified dividend pay a lower tax rate, since they are taxed as long term capital gains. If the after tax yield will be the same, then:
5.544% = dividend yield x (1 - 20%)
5.544% / 0.8 = dividend yield
6.93% = dividend yield
If you co-sign for a friend's credit card, what is the danger to you if your friend fails to pay?
A.
You might get secured credit.
B.
You might have to pay extra money in taxes.
C.
Your credit score might go down.
D.
Your credit score might go up.
Please select the best answer from the choices provided
A
B
C
D
Answer:
C
Explanation:
You want to have $60,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.4 percent interest, what amount must you deposit each year?
Answer:
$3,474.39
Explanation:
The amount that you need to deposit each year (PMT) is calculated as follows:
FV = $60,000
N = 12
P/yr = 1
i = 6.4 %
PV = $0
PMT = ?
Using a Financial Calculator to input the values as shown, the deposit each year would be $3,474.39
Apricot Corporation distributes property ($125,000 basis and $150,000 fair market value) to its sole shareholder, Ellie. The property is subject to a liability of $200,000, which Ellie assumes. Apricot has E
Answer: $75,000; $400,000.
Explanation:
Here is the complete question:
Apricot Corporation distributes property ($125,000 basis and $150,000 fair market value) to its sole shareholder, Ellie. The property is subject to a liability of $200,000, which Ellie assumes. Apricot has E & P of $325,000 prior to the distribution. a)What gain, if any, does Apricot recognize on the distribution? What is Apricot’s accumulated E & P at the start of the following year?
The gain recognized by Apricot on the distribution will be:
= $200,000 - $125,000
= $75,000
Apricot’s accumulated E & P at the start of the following year will be:
= $325,000 + $75,000
= $400,000
Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly withdrawals of $2000, with the first withdrawal 3 months from now. If money is worth 7.5%, compounded quarterly, how much must be deposited now to provide for this trust
Answer:
Initial investment= 26,921.47
Explanation:
Giving the following information:
Withdrawls= 16 of $2,000
Interest rate= 0.075/4= 0.01875
To calculate the initial investment, first, we need to calculate the future value of the investment:
FV= {A*[(1+i)^n-1]}/i
A= quarterly payment
FV= {2,000*[(1.01875^16) - 1]} / 0.01875
FV= $36,918.86
Now, the present value:
PV= FV/(1+i)^n
PV= 36,918.86/1.01875^17
PV= $26,921.47
Initial investment= 26,921.47
The Roscoe Company's March 31 bank statement balance was $79,500. As of March 31, outstanding checks total $25,800 and deposits in transit total $16,900. Assuming there are no other reconciling items, what was the March 31 cash balance on Roscoe's books?
a. $70,600
b. $79,500
c. $122,200
d. $88,400
Answer:
a. $70,600
Explanation:
Calculation for the cash balance on Roscoe's books
Using this formula
Cash balance = Bank balance - Outstanding checks + Deposits in transit
Let plug in the formula
Cash balance = $79,500 -$25,800 + $16,900
Cash balance= $70,600
Therefore the cash balance on Roscoe's books will be $70,600
to determine the regular payment amount, rounded to the nearest dollar. In terms of paying less in interest, which is more economical for a $ mortgage: a 30-year fixed-rate at % or a 20-year fixed-rate at %? How much is saved in interest?
Answer:
the numbers are missing, so I looked fro similar questions:
Which is more economical for a $210.000 mortgage: a 30-year fixed-rate at 9% or a 20-year fixed-rate at 8.5%? How much is saved in interest?
if you take the 30 year mortgage, your monthly payment will be:
monthly payment = present value / PV annuity factor
present value = $210,000PV annuity factor, 0.75%, 360 periods = 124.2817monthly payment = $210,000 / = $1,689.71
total payments = $1,689.71 x 360 = $608,295.60
total interests paid = $608,295.60 - $210,000 = $398,295.60
if you take the 20 year mortgage, your monthly payment will be:
monthly payment = present value / PV annuity factor
present value = $210,000PV annuity factor, 0.7083%, 240 periods = 115.2308monthly payment = $210,000 / = $1,822.43
total payments = $1,822.43 x 240 = $437,383.20
total interests paid = $437,383.20 - $210,000 = $227,383.20
if you take the 20 year mortgage, you will save $398,295.60 - $227,383.20 = $161,912.40 in interests
A car may be purchased with $3,500 down payment now and 72 monthly payments of $489. If the interest rate is 9% per year compounded monthly, what is the price of the car
Answer: $30628.155
Explanation:
After the calculations in the attachment has been made, the present value was gotten as $27128.55
The price of the car was calculated as the addition of the down payment and the present value which was:
= $3500 + $27128.55
= $30628.155
Note that in the calculation in the attachment,
r = 9%/12 = 0.75%
n = 72.
Check attachment for more details
Country X has requested and received a loan from the world bank. Country X may not use the money to finance ____
Answer:
Non-developmental Projects
Explanation:
Country X requested for and received a loan from the world bank (formerly the International Bank for Reconstruction and Development).
Country X may not (Country X is not allowed to) use the money to finance projects that are unrelated to development.
This stems from the purpose of the World Bank and its funding acts. The World Bank's key function is:
- Lending to the middle-class nations (at relatively low interest rates) and giving to the poorest nations (at no interest rate) who are its members.
Country X hence is either a middle-income country or a low-income country. It may only use the loan to finance projects that aim at improving the quality of human life e.g. health projects, educational projects, environmental projects, etcetera.
3.Assuming the quotes of exchange rates against dollar for the Swiss franc and the Australian dollar are as follows: Bank QuotationsBidAsk $ / SFr .7265 .7272 $ / A$ .6135 .6140 Suppose a Swiss company has investment proceeds equal to 1 million Australian dollars, and wants to convert it to Swiss franc. What are his proceeds from conversion
Answer:
proceeds from conversion is SFr 843,646.86
Explanation:
The computation of the proceeds from the conversion is shown below:
By Converting A$ into $ so we get
= 1,000,000 × 0.6135
= $613,500
And, if
Convert $ into Sfr
So,
= $613,500 ÷ 0.7272
= Sfr 843,646.8646
Therefore, proceeds from the conversion is SFr 843,646.86
The same is to be considered so that the correct value could come
Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is:_______a. supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.b. the intent of making modest profits without sacrificing high product quality standards.c. ingredients that are all completely organic and are available only in Vermont to ensure freshness and contribute to the local economy.d. a commitment to donating a percentage of profits to Teach for America.e. ingredients that come exclusively from developed countries promoting Fair Trade practices.
Answer:
a. supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.
Explanation:
Ben and Jerry refers to an agricultural company that is focused on delivering the best of its finished goods to the consumer.
Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.
Amara believes that her manager violated the terms of the negotiated labor-management agreement when he required her to report to work on a holiday. She has discussed her concerns with her shop steward and he agrees with her. It is likely the steward will encourage Amara to:_____.
a) start looking for another job in a right-to-work state.b) contact the local chapter of the ACLU.c) send a letter of protest to the president of the union.d) pursue a grievance over the interpretation of the labor contract.
Answer: d.) pursue a grievance over the interpretation of the labor contract.
Explanation:
The labor contract is a contact that states the working conditions and benefits that an employee is expected to get while working for a particular company and it should be noted that this contract is enforceable by law.
Normally, employees shouldn't come to their workplace on holidays. Therefore, based on the scenario in the question, the steward will encourage Amara to pursue a grievance over the interpretation of the labor contract.
When activities are arranged in a line according to the sequence of operations for assembling a particular product the layout is said to be a:
Answer: Product layout
Explanation:
Product layout is when activities are arranged in a line according to the sequence of operations for assembling a particular product.
In product layout, both the tools and th supplies which are needed for the manufacturing process are at the assembly line. This brings about identical products to be made.
Locher Co. reported cost of goods sold for 2020 of $1,400,000. Locher later discovered that its ending inventories at December 31, 2019 and 2020 were overstated by $110,000 ad $35,000, respectively. What is the correct amount for 2020 cost of goods sold
Answer:
$1,325,000
Explanation:
Calculation for the correct amount for 2020 cost of goods sold
Using this formula
2020 Correct amount for Cost of Goods sold = Reported cost of Goods sold + 2020 Overstated ending inventory - 2019!Overstated Ending inventory
Let plug the formula
2020 Correct amount for Cost of Goods sold = $1,400,000 + $35,000 - $110,000
2020 Correct amount for Cost of Goods sold = $1,325,000
Therefore 2020 Correct amount for Cost of Goods sold will be $1,325,000
When sales units go up by 25% (assuming the unit selling price and unit variable expense are constant): A. Variable expenses go up by 25%. B. Net income will go up by 25%. C. Fixed expenses will go up by 75%. D. Contribution margin will go up by 75%.
Answer: A. Variable expenses go up by 25%.
Explanation:
Total variable expenses are calculated on the basis of the entire units to be sold which means that if sales units were to increase by 25%, the total variable expenses will increase by 25% as well.
For instance, If selling price per unit is $4 and variables, $3 and the number of units to be sold is 20, sales will be $80 and variable costs will be $60.
Assuming units went up by 25% to 25 units, variable costs would be; $75 which is an increase of;
= (75 - 60) / 60
= 25%
A large electric utility company spews million tons of greenhouse gases (mostly carbon dioxide) into the environment each year. This company has committed to spending $ billion in capital over the next five years to reduce its annual emissions by %. More will be spent after five years to reduce greenhouse gases further. a. What is the implicit cost of a ton of greenhouse gas? b. If the United States produces billion tons of greenhouse gases each year, how much capital must be spent to reduce total emissions by % over the next five years based on your answer in Part (a)?
Answer:
a. $537.31 per ton
b. $64,477,200,000
Explanation:
a. 5% of 67 million tons will cost $1.8 billion to be reduced.
The implicit cost of a ton therefore is;
= 1,800,000,000 / (5% * 67,000,000)
= 1,800,000,000/ 3,350,000
= $537.31 per ton
b. The amount to be spent to reduce 4 billion tons by 3% is;
= 537.31 * (4,000,000,000 * 3%)
= $64,477,200,000
Y3K, Inc., has sales of $12,840, total assets of $4,730, and a debt-equity ratio of .25. If its return on equity is 14 percent, what is its net income
Answer:
Equity multiplier = 1 + Debt−equity ratio
Equity multiplier = 1 + 0.25
Equity multiplier = 1.25
Total asset turnover = Sales / Total assets
Total asset turnover = $12,840 / $4,730
Total asset turnover = 2.71 times
ROE = (Profit margin)(Total asset turnover)(Equity multiplier)
0.14 = (Profit margin)(2.71)(1.25)
Profit margin = 0.0413 or 4.13%
Profit margin = Net income / Sales
0.0413 = Net income / $12,840
Net income = $529.76
The Sour Pickle Company has a debt-equity ratio of 1.37. Return on assets is 7.62 percent,...
The Sour Pickle Company has a debt-equity ratio of 1.37. Return on assets is 7.62 percent, and total equity is $685,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and...
Shelton Company has a debt-equity ratio of 1.41. Return on assets is 7.66 percent, and total...
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,576 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,461 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,437. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%
Answer:
The answer is "1832".
Explanation:
The PVAF(r,n) start value[tex]= \frac{(1+r)^{n-1} -1 \ \ +1}{r \times (1+r)^n-1}[/tex]
The PVAF(r,n) end value[tex]= \frac{(1+r)^{n} -1}{r \times (1+r)^n}[/tex]
The PVF(r,n) value [tex]= \frac{1}{(1+r)^n}[/tex]
[tex]r = \text{Rate of dirscount} \\\\n = terms[/tex]
[tex]\text{Present Value= Monthly rent} \times PVAF[/tex]
PVAF(20%, 3) starting = 2.5278
PVAF(20%, 3) ending = 2.1065
PVAF(20%, 3) starting = 5787
calculating the lease payment of present value:
[tex]present \ value = Lease\ payment \times PVAF(10 \%,3) starting[/tex]
[tex]=3609 \times 2.5278\\\\=9122.75[/tex]
existing importance by busing excluding annual servicing
[tex]\text{present value = cost - sale value} \times PVF(20 \%,3)[/tex]
[tex]=6113-1469\times 0.5787 \\\\=5262.88[/tex]
Calculating the annual maintanance=[tex]\frac{\text{present value of leasing -buying}}{ PVAF(20 \%,3) ending}[/tex]
[tex]=\frac{3859.87}{2.1065}\\\\=1832.32 \ \ \ or \ \ \ 1832[/tex]
Firm X is considering the replacement of an old machine with one that has a purchase price of $90,000. The current market value of the old machine is $24,000 but the book value is $34,000. The firm's combined tax rate is 26%. What is the net cash outflow for the new machine after considering the sale of the old machine
Answer:
Net cash outflow for new machine = $63,400
Explanation:
The computation of the net cash outflow for the new machine is shown below:
Sale proceeds from old machine = $24,000
Add Tax Savings occured from loss on sale ($34,000 - $24,000) × 0.26 = $2,600
Net benefit arise from the sale of old machine = $26,600
Less:
Cost of new machine = $90,000
So,
Net cash outflow for new machine = $63,400
An online buying club requires an annual fee of $130 in order to qualify for a 16 percent discount on purchases. What amount would a person have to buy in order to save enough to cover the cost of the membership
Answer:
$812.50
Explanation:
Calculation for the amount a person have to buy in order to save enough to cover the cost of the membership
Using this formula
Amount to buy =Annual fee/Discount on purchases
Let plug in the formula
Amount to buy=$130/0.16
Amount to buy=$812.50
Therefore the amount a person have to buy in order to save enough to cover the cost of the membership is $812.50
By making many burgers before customers ask for them, a fast-food restaurant is sacrificing the dimension of ______ and improving the dimension of ______ in the customers' utility function.
a. fit, timing
b. fit, price
c. fit, timing
d. timing, fit
Answer:
a. fit, timing
Explanation:
A utility function can be defined as a measure of the benefits or satisfaction derived by the consumer of finished goods such as snacks, perfume, shoes, clothes, electronic gadgets etc.
Basically, a customer’s utility function typically refers to the welfare, enjoyment, benefit, usefulness or satisfaction a particular customer derives from a product or goods.
The dimension of timing and fit plays a very significant role in the process of adding value, benefits or satisfaction to a customer's experience.
By making many burgers before customers ask for them, a fast-food restaurant is sacrificing the dimension of fit and improving the dimension of timing in the customers' utility function.
KLM Corporation's quick assets are $6,158,000, its current assets are $13,650,000 and its current liabilities are $8,170,000. Its acid-test ratio equals:
Answer:
0.75
Explanation:
KLM corporation quick assets is $6,158,000
Current assets are $13,650,000
Current liabilities are $8,170,000
Therefore the acid test ratio can be calculated as follows
= quick assets/current liabilities
= $6,158,000/$8,170,000
= 0.75
Hence the acid test ratio is 0.75