EAR versus APR [LO4] Two banks in the area offer 30-year, $220,000 mortgages at 5.5 percent and charge a $3,500 loan application fee. However, the application fee charged by Insecurity Bank and Trust is refundable if the loan application is denied, whereas that charged by I.M. Greedy and Sons Mortgage Bank is not. The current disclosure law requires that any fees that will be refunded if the applicant is rejected be included in calculating the APR, but this is not required with non fundable fees (presumably because refundable fees are part of the loan rather than a fee). What are the EARs on these two loans? What are the APRs?

Answers

Answer 1

Answer:

application fee. However, the application fee charged by Insecurity Bank and Trust is refundable if the loan application is denied, whereas that charged by I.M. Greedy and Sons Mortgage Bank is not. The current disclosure law requires that any fees that will be refunded if the applicant is rejected be included in calculating the APR, but this is not required with non fundable fees (presumably because refundable fees are part of the loan rather than a fee). What are the EARs on these two loans? What are the APRs?


Related Questions

What are products called that are special or different from those grown as commodities?
unique products
salable products
fungible products
differentiated products

Answers

Answer:

unique prroducts

Explanation:

A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company's product is different than those of its competitors. On the continuum between commodities and differentiated products are many degrees and combinations of the two.

The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.

Answers

Questions

The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:

Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.

Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:

Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.

What is the company cost variance related to direct labour

Answer:

Direct labour cost total Variance  = $66,000 favorable

Explanation:

The direct labor cost total variance is the difference between standard labour cost of the actual production achieved and the actual labour cost.

The standard labour cost of labour per unit of output is not given. So, we work it out first

Standard labour cost per unit= 48/60× $16= 12.8 per unit

                                                                                                   $

20,000 units should have cost (20,000× 12.8)                256,000

but did cost                                                                         190,000

Direct labour cost total Variance                                       66,000 favorable

Direct labour cost total Variance  = $66,000 favorable

The Direct Labor cost variance is $66,000.

What is labor cost variance?

It is the difference between the standard and actual labor cost required to produce goods or services.

Labor cost variance= Standard Cost of Labor Actual Cost of Labor .

Given:

1 unit=3/4th pound of direct material at the rate $12/ pound

1 unit takes 48 minutes

Direct labor cost=$16/ hour

Actual production=20,000 units

Direct material required = 14,600 pounds

Total cost=$168,000

Required - direct labor hours=11,000 at total cost $190,000.

Standard labor cost per unit= time taken to complete 1 unit X hourly Rate of labor

= 48/60× $16= 12.8 per unit

Standard Cost of labor (20,000× 12.8)                    $256,000

Less-Actual  Cost of labor  (given)                          $190,000

Direct labor cost Variance                                       $66,000

Therefore, the Labor cost variance is $66,000.

Learn more about Labor cost variance here:

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Rex and Dena are married and have two children, Michelle (age seven) and Nancy (age five). During 2020, Rex earned a salary of $28,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is: $___________

Answers

Answer:

$5,171

Explanation:

Rex and Dana have two children, and their earned income is less than $53,330, that means that they can receive the earned income tax credit. using the Earned Income Credit table for Form 1040, the couple's income falls between $28,750 - $28,800, they have 2 children, and file as married: the EITC = 5,171.

The maximum amount is $5,920 but it starts to phase out after $19,330.

adjustable or variable

Answers

Not sure the context of this question is there any additional info?

Why is defining the parameters of the project the first step?

Answers

Defining the parameters is the first step of the project because you have to have the measurements for your project before you start. You can just make something blindly. ... Give two examples of math skills that you used in creating your project.

Monthly
Rent
Quanti
Demanded
(thousands)
Supplied
(thousands)
3
$ 800
$1,000
$1,200
$1,400
$1,600
$1,800
30
25
22
19
17
15
10
14
17
19
21
22
Using the table, what is the quantity of the surplus at $1,800?
A 6
B
5
c) 7
D
8

Answers

Answer:

snap a picture of the question

Limitations of managerial economics

Answers

Managerial economics usually deals with the application of theories ,concepts and tools to solve the real life business problems. There are some drawbacks of this managerial economics too. Sometimes the business problems becomes very unique that the theories and methodologies becomes unable to solve the problem.

Flash ECard Manufacturing manufactures software parts for the computer software systems that produce ecards. The Flash II part is currently manufactured in the Computer Department. The Data Department also produces the part and the plant has excess capacity to produce the Flash II part. The current market price of the Flash II part is​ $700. The managerial accountant reported the following manufacturing costs and variable expense​ data: Flash ECard Manufacturing Manufacturing Costs and Variable Expense Report Flash Component Direct materials ​$810 Direct labor ​$160 Variable manufacturing overhead ​$140 Fixed manufacturing overhead​ (current production​ level) ​$185 Variable selling expenses​ (only incurred on sales to outside​ consumers) ​$136 If the highest acceptable transfer price is​ $700 in the​ market, what is the lowest acceptable inhouse price the Data Department should receive to produce the part inhouse at the Computer​ Department? "810"

Answers

Answer:

the  lowest acceptable inhouse price the Data Department is $1,110

Explanation:

The computation of the lowest acceptable inhouse price the Data Department is shown below:

= Direct materials + direct labor + Variable manufacturing overhead

= $810 + $160 + $140

= $1,110

Hence, the  lowest acceptable inhouse price the Data Department is $1,110

The above formula should be applied for determining the lowest acceptable inhouse price is as follows:

Sauer Food Company has decided to buy a new computer system with an expected life of three years. The cost is $330,000. The company can borrow $330,000 for three years at 11 percent annual interest or for one year at 9 percent annual interest. Assume interest is paid in full at the end of each year. a. How much would Sauer Food Company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 9 percent rate

Answers

Answer:

the  save in interest over the 3 years in the case of 9% rate of interest is $89,100

Explanation:

a. The computation of the save in interest over the 3 years in the case of 9% rate of interest is given below:

= $330,000 × 9% × 3 years

= $89,100

Hence, the  save in interest over the 3 years in the case of 9% rate of interest is $89,100

The same would be considered and relevant too

who is she what’s her product and company??

Answers

Answer:Harpo Productions (or Harpo Studios) is an American multimedia production company founded by Oprah Winfrey and based in West Hollywood, California. It is the sole subsidiary of her media and entertainment company Harpo, Inc.

Explanation:

According to the video, what qualities do Loading Machine Operators need? Check all that apply.
college degree
high-school degree
on-the-job training
customer-service
skills leadership experience​

Answers

Answer:

B and C

Explanation:

Edge 2021

Answer:

Explanation:

it is high-school degree and on-the-job training

Assume Zap Industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 2,496,320 $ 1,937,472 Allowance for Doubtful Accounts (126,400 ) (103,360 ) Accounts Receivable, Net $ 2,369,920 $ 1,834,112 Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019

Answers

Answer: $23,040

Explanation:

Based on the information given in the question and assuming the company recorded no write-offs or recoveries during 2019, the amount of Bad Debt Expense reported in 2019 will be the difference between the ending balance of the allowance account and the beginning balance of the allowance account. This will be:

= $126,400 - $103,360

= $23,040

Therefore, the correct answer is $23,040

The average daily net transaction accounts balance of a local bank during the most recent reserve computation period is $325 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $22.6 million and the average daily vault cash corresponding to the computation period is $4.3 million.
1. What is the average daily reserve balance required to be held by the bank during the maintenance period?
2. Is the bank in compliance with the reserve requirements?
3. What amount of reserves can be carried over to the next maintenance period either as excess or as shortfall?
4. If the local bank has an opportunity cost of 6 percent and deposits at the Fed pay 0.5 percent, what is the effect on the income statement from this reserve period?

Answers

Answer:

a) $19.159 million

b) Yes, bank compliance with reserve requirements.

c) 0.938 million

d) $2536.11 million

Explanation:

The amount that is being put apart from the profit for a suitable and relevant purpose is known as Reserve. It is used to usually offset debts and the purchase of fixed assets.

Reserve requirement can be determined as follows:

Daily avg reserve required= Daily avg. net transaction accounts × reserve %

= (0% × $16 million) +(($122.3 million - $16 million)

= 0 + $3.189 million + $20.27 million

= $23.459 million

The avg. daily reserve for the maintenance period = Daily avg reserve required - Avg daily balance of cash.

= ($23.459 -$4.3) million

= $19.159 million

b) SInce the amount of avg daily reserve in the bank($21.2 million) is higher than the required amount of $2.04 i.e. $(21.2 - 19.16)

Then, we can agree that:

Yes, bank compliance with reserve requirements.

c). For the next maintenance period, the reserve carried over = reserve bank required to maintain × highest percentage

= $23.459 million × 4%

= 0.938 million

d)  

Since an amount of (2.04 - $0.938) million possess an opportunity cost & no earning at 6%;

Then, the effect of the loss is

[tex]\$1.102 \times 0.06 \times \dfrac{14}{365} \\ \\ =\$2536.11 \ million[/tex] from the reserver period.

What is the Internal Revenue Code?

A.) a collection of tax laws, their interpretations, and federal tax rulings
B.) a list of tax brackets and the percentages each person must pay
C.) a book used solely by tax accountants to help people complete their filings
D.) a passcode that citizens must have to file their taxes online

Answers

Internal Revenue Code is collection of tax laws, their interpretations, and federal tax rulings.

Option A is the correct answer

What is internal revenue code?

The Internal Revenue Code are set of laws and rules created to guide tax related matters

It was created by revenue service for the public on tax payment.

Therefore, Internal Revenue Code is the collection of tax laws, their interpretations, and federal tax rulings

Learn more on tax below

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Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value. At December 31, 2020, the inventory was $286,000,000 at cost and $265,000,000 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. g

Answers

Answer:

A. Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

B. Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

Explanation:

A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method

COST-OF-GOODS-SOLD METHOD

Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

B.Preparation of the necessary December 31 entry under the Loss method

LOSS METHOD

Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

QUESTION ONE (1)
Unibic India: From Fastest Growing Niche Cookie Brand to a Challenger?
In 2007, Lighthouse Funds acquired a 25% stake in Unibic from Unibic Australia for Rs. 200 million. In 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Unibic operated solely in the premium, high-margin cookies segment in India, with a share of around 8%. It had a market presence primarily in south India and was exporting to the Middle East and Hong Kong. It had strategic alliances to make cookies for various private players. However, it was not yet making profits and was cash- strapped...
Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through the Indian biscuit industry, wherein glucose biscuits that had dominated the market, gradually lost out to cream biscuits and cookies. The reasons for the shift included rising disposable incomes leading to an increase in consumption of premium biscuits; a larger number of manufacturing facilities of premium biscuits; growing health awareness; innovation bringing in attractive new products; rising affordability of cookies; and increase in eye-catching packaging...
Over the years, Unibic regularly introduced fresh and unique flavors, ultimately producing over 30 variants of cookies. Its products could be broadly categorized into chocolate, butter, milk, savory, and health. The company considered its target market to be between the ages of 14 and 40. It continued its efforts at innovation and produced new products which would appeal to its target market...
In 2015, Unibic had used celebrity endorsement by signing on south Indian actor Shruti Hassan, for over a year. It stated that it wanted someone who was relevant and would give the brand a boost to get to the numbers it wanted in the South...
Unibic didn’t advertise much in print media; TV remained the company’s core focus and got the largest chunk of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a similar marketing campaign across markets, Unibic employed a unique strategy in each market, thereby playing to its strengths in each market while keeping in mind the market conditions and consumption patterns...
From 2019 onward, Unibic started feeling the heat of the economic slowdown in India. The Indian economic slowdown of 2019 led to a serious and continuing decline in the country’s real estate, automobile and construction sectors and in overall consumption demand. The second quarter (July- September) of the financial year (April 2019-March 2020) witnessed a drastic fall in the gross domestic product (GDP) growth rate to 4.5%. The main reasons attributed to the fall in the GDP growth rate were – contraction in manufacturing activity, weakened investments, and lower consumption demand.
As of 2020, Unibic had the largest wire cut cookie manufacturing plant in India. The plant had the capability to manufacture 100 tonnes of cookies each day, with five production lines. While it used 98% of its production capability to produce its own brand, the rest was used to manufacture for private label brands – six in India and 10 across the world. It had annual revenu7 es of Rs. 5 billion. It also exported its products to more than 21 countries including across Australia, North America, the UK, and Europe, Asia, the Middle East, and New Zealand. It derived 45% of its earnings from the south of India.
Questions:
a) Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
b) Which environmental force did Unibic use in segmenting its market? What is this force about? (6 marks)
c) What does the following statement suggest to you about Unibic: “It continued its efforts at innovation and produced new products which would appeal to its target market”? (3 marks)
DC: ACD01-F004

d) Which marketing strategy did Unibic use in 2015 and explain any two (2) reasons why firms adopt that strategy? (9 marks)
e) What main media did Unibic use to implement its marketing strategy? State one advantage of this media. (6 marks)

Answers

Answer:

don't know how much they were going home from my phone number is a good day of the year and I'm sorry I'm sorry I'm sorry but he did I say anything else and I'm sure it to you and I have a great day of the us to be a great day of the us and we are you ready for the first time ever you want to see you soon I don't know how much you love you all for you to be a great day of the us and we are you ready for the first time ever you ready for the first time ever you ready for the first time ever you ready for some reason to get the best way I can see you soon and I am a very happy birthday is a good day for me and my family and I have to be in my heart and soul mate and we will not let you soon and I am a very happy birthday is your answer me and my heart and soul mate and I have a good time with you and

I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company’s Office Products Division. "But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown."
Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company’s Office Products Division for this year are given below:
Sales $10,000,000
Variable expenses 6,000,000
Contribution margin 4,000,000
Fixed expenses 3,200,000
Net operating income $800,000
Divisional operating assets $4,000,000
The company had an overall return on investment (ROI) of 15% last year (considering all divisions).The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $1,000,000. The cost and revenue characteristics of the new product line per year would be:
Sales $2,000,000
Variable expenses 60% of sales
Fixed expenses $640,000
Requirement:
Compute the Office Products Division's ROI for the most recent year; also compute the ROI as it would appear if the new product line is added.

Answers

Answer:

1. 20.0%

2. 16.0%

Explanation:

1. Computation for the Office Products Division's ROI for the most recent year

Using this formula

ROI = Net operating income /Divisional average operating assets

Let plug in the formula

ROI= $800000/$4000000

ROI= 20.0%

Therefore the Office Products Division's ROI for the most recent year will be 20%

2. Computation for the ROI as it would appear if the new product line is added.

First step is to calculate the Net operating income using this formula

Net operating income = Sales - Variable expenses - Fixed expenses

Let plug in the formula

Net operating income= $2000000 - (60% x $2000000) - $640000

Net operating income= $160000

Now let compute the ROI

ROI = $160000/$1000000

ROI = 16.0%

Therefore the ROI as it would appear if the new product line is added is 16.0%

The fraction between the net revenue and the investment is called return on investment (ROI). A high ROI rate indicates investment profit above its generation value.

ROI can be calculated by:

[tex]\text{ROI} &= \dfrac{\text{Profit earned}}{\text{Cost of investment}}[/tex]

The Products Division's ROI will be 20% and ROI if the new product is added would be 16.0%.

1. Estimate for the Office Products Division's ROI for the most current time can be calculated as follow:

Using the formula:

[tex]\text{ROI} &= \dfrac{\text{Net operating income}}{\text{Divisional average operating assets}}[/tex]

[tex]\text{ROI} & = \dfrac{\$ 800000}{\$ 4000000}[/tex]

ROI= 20.0%

The Office Products Division's ROI for the most current time will be 20%.

2. Calculation for the ROI if the new product range is added.

The Net operating income can be calculated by using the formula:

[tex]\text{Net operating income} = \text{Sales} - \text{Variable\;expenses} - \text{Fixed expenses}[/tex]

[tex]\text{Net operating income} = \text{\$2000000} - \text{60\%} \times {\$2000000}} - \text{\$640000}[/tex]

Net operating income= $160000

Calculation of ROI:

[tex]\text{ROI} &= \dfrac{\$160000}{\$1000000}[/tex]

ROI = 16.0%

If the new product line is added then ROI will be 16.0%.

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_____________ is when your company makes an effort to actively control and shape your brand image with your target market.
A.
Market penetration
B.
Market segmenting
C.
Data mining
D.
Market positioning

Answers

The answer to the question is C

Answer:  

D. (Market positioning)

Explanation:

The definition is pretty much in the question itself! hope this helps

Inventories Raw materials $ 42,000 $ 32,000 Work in process 9,100 18,300 Finished goods 57,000 34,300 Activities and information for May Raw materials purchases (paid with cash) 172,000 Factory payroll (paid with cash) 100,000 Factory overhead Indirect materials 6,000 Indirect labor 23,000 Other overhead costs 103,000 Sales (received in cash) 1,000,000 Predetermined overhead rate based on direct labor cost 55 %
Compute the following amounts for the month of May using T-accounts
1. Cost of direct materials used
2. Cost of direct labor used
3. Cost of goods manufactured
4. Cost of goods sold.
5. Gross profit
6. Overapplied or underapplied overhead
Prepare journal entries for the above transactions for the month of May. View transaction list Journal entry worksheet Record the application of overhead to work in process
Note: Enter debits before credits.
Transaction General Journal Debit Credit
Record entry Clear entry View general journal

Answers

Answer:

a. Computation of the following amounts for the month of May using T-accounts:

1. Cost of direct materials used = $176,000

2. Cost of direct labor used = $77,000

3. Cost of goods manufactured = $286,150

4. Cost of goods sold = $308,850

5. Gross profit = $691,150

6. Overapplied or underapplied overhead = $89,650 (underapplied)

b. Journal Entries:

Debit Raw materials $172,000

Credit Cash $172,000

To record the purchase of raw materials for cash.

Debit Factory payroll $100,000

Credit Cash $100,000

To record the payroll paid in cash.

Debit Factory overhead:

 Indirect materials $6,000

 Indirect labor $23,000

 Other overhead costs 103,000

Credit Raw materials $6,000

Credit Factory payroll $23,000

Credit Cash $103,000

To record indirect materials, labor and other costs.

Debit Work in process $42,350

Credit Factory overhead $42,350

To apply overhead based on direct labor cost 55%.

Debit Cash $1,000,000

Credit Sales Revenue $1,000,000

To record the sale of goods for cash.

Explanation:

a) Data and Calculations:

Inventories:

Raw materials $ 42,000 $ 32,000

Work in process 9,100 18,300

Finished goods 57,000 34,300

Activities for May:

Raw materials purchases (paid with cash) 172,000

Factory payroll (paid with cash) 100,000

Factory overhead:

Indirect materials 6,000

Indirect labor 23,000

Other overhead costs 103,000

Sales (received in cash) 1,000,000

Predetermined overhead rate based on direct labor cost 55%

T-accounts:

Raw materials

Beginning balance $ 42,000

Cash                         172,000

Manufacturing overhead                6,000

Work in process                          176,000

Ending balance                         $ 32,000

Work in process

Beginning balance    9,100

Raw materials       176,000

Payroll                     77,000

Overhead applied 42,350

Finished goods                          286,150

Ending balance                            18,300

Finished goods

Beginning balance 57,000

Work in process   286,150

Cost of goods sold                   308,850

Ending balance                           34,300

Manufacturing overhead

Indirect materials             6,000

Indirect labor                 23,000

Other overhead costs 103,000

Work in process                            42,350

Underapplied overhead               89,650

Sales revenue    $1,000,000

Cost of goods sold 308,850

Gross profit            $691,150

Analysis of Transactions:

Raw materials $172,000 Cash $172,000

Factory payroll $100,000 Cash $100,000

Factory overhead:

Indirect materials $6,000 Raw materials $6,000

Indirect labor $23,000 Factory payroll $23,000

Other overhead costs 103,000 Cash $103,000

Work in process $42,350 Factory overhead $42,350

Predetermined overhead rate based on direct labor cost 55%

Cash $1,000,000 Sales Revenue $1,000,000

Local planning teams are often called planning .

Answers

Answer:Commissions

Explanation:an instruction, command, or duty given to a person or group of people.

Commissions I hope it’s right

Petrus Framing's cost formula for its supplies cost is $1,890 per month plus $9 per frame. For the month of March, the company planned for activity of 629 frames, but the actual level of activity was 634 frames. The actual supplies cost for the month was $7,860. The activity variance for supplies cost in March would be closest to: Multiple Choice $309 F $309 U $45 F $45 U

Answers

Answer:

Activity variance= $310 unfavorable

Explanation:

To calculate the activity variance, we need to use the standard costs and planned activity:

Activity variance= standard cost*planned activity - actual costs

Activity variance= (1,890 + 9*629) - 7,860

Activity variance= 7,551 - 7,860

Activity variance= $310 unfavorable

pAn office building owner agrees to buy a minimum of 270 chairs and up to 440 chairs from a supplier. The price will be $85 per chair if only 270 chairs are bought, but will be discounted by $0.2 per chair (on the entire order) for every chair ordered in addition to the minimum. Answer the questions below, rounding your answers to the nearest whole dollar. a) What is the largest revenue the supplier can make under this deal

Answers

Answer:

The largest revenue the supplier can make under this deal is $24,151.2

Explanation:

Working file has been attached to help understand how the answer was derived. Some points to note in the sheet are:

The sheet represents the following columns which are S. No., Chairs, Price, Total Revenue and difference in each revenue.As the no. of chairs rises the price is dropping by $0.2 in the entire order.However, at first this increase in order of chairs is beneficial even with the drop in the price of entire order.At the point, where chairs ordered are 348 and price is $69.4 the revenue is at its largest which is $24,151.2.After this point the increase in the no. of chairs is only decreasing the overall total revenue of the supplier.

Break-Even Sales and Sales to Realize Operating Income For the current year ending December 31, McAdams Industries expects fixed costs of $1,860,000, a unit variable cost of $105, and a unit selling price of $125. a. Compute the anticipated break-even sales (units). fill in the blank 1 units b. Compute the sales (units) required to realize operating income of $500,000. fill in the blank 2 units

Answers

Answer:

a.

Break even sales in units = 93000 Units

b.

Sales in units required for Target Income = 118000 units

Explanation:

a. Anticipated Break even sales in units

The break even in units is the number of units that a business must sell in order to for its total revenue to be equal to total costs and for it to break even. The break even in units is calculated as follows,

Break even in units = Fixed Costs / Contribution margin per unit

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

Break even sales in units = 1860000 / (125 - 105)

Break even sales in units = 93000 Units

b. Operating income

To calculate the number of units required to earn a certain income or profit, we simply use the break even equation and add the income or profit amount required in the fixed cost. Thus the sales in units required to earn an operating income of $500000 is,

Sales in units required for Target Income = (1860000 + 500000) / (125 - 105)

Sales in units required for Target Income = 118000 units

Job Number Manufacturing Costs as of June 30 Manufacturing Costs in July 101 $ 3,800 102 3,200 103 960 $ 2,000 104 2,200 4,300 105 6,200 106 3,300 During July, jobs no. 103 and 104 were completed, and jobs no. 101, 102, and 104 were delivered to customers. Jobs no. 105 and 106 are still in process at July 31. a. Compute the work in process inventory at June 30. b. Compute the finished goods inventory at June 30. c. Compute the cost of goods sold during July. d. Compute the work in process inventory at July 31. e. Compute the finished goods inventory at July 31.

Answers

Answer:

(a) $3,160

(b) $7,000

(c) $13,500

(d) $9,500

(e) $2,960

Explanation:

(a). Work in Process = Manufacturing cost of 103 in June + Manufacturing cost of 104 in June

Work in Process = $960 + $2,200 = $3,160

(B). Finished goods = Manufacturing cost of 101 in June + Manufacturing cost of 102 in June

Finished goods = $3,800 + $3,200 = $7,000

(C) Cost of goods sold during July = Manufacturing cost of 101 in June + Manufacturing cost of 102 in June + Manufacturing cost of 104 in June + Manufacturing cost of 104 in July

Cost of goods sold during July = $3,800 + $3,200 + $2,200 + $4,300 = $13,500

(D) Work in process inventory = Manufacturing cost of 105 in July + Manufacturing cost of 106 in July

= $6,200 + $3,300 = $9,500

(E) Finished goods inventory = Manufacturing cost of 103 in June + Manufacturing cost of 103 in July

Finished goods inventory = $960 + $2,000 = $2,960

Protecting the environment can be done by a small group of people by themselves.
Please select the best answer from the choices provided
OT
OF

Answers

False is the correct number

Answer:

false

Explanation:

just took the test

Gary Radio Corporation is a subsidiary of Salem Companies. Gary makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $56 each. Recently, Salem acquired the Hyden Speaker Corporation, which makes car radio speakers that it sells to manufacturers. Hyden produces and sells approximately 200,000 speakers per year, which represents 70 percent of its operating capacity. At the present volume of activity, each speaker costs $48 to produce. This cost consists of a $32 variable cost component and an $16 fixed cost component. Hyden sells the speakers for $60 each. The managers of Gary and Hyden have been asked to consider using Hyden's excess capacity to supply Gary with some of the speakers that it currently purchases from unrelated companies. Both managers are evaluated based on return on investment. Hyden's manager suggests that the speakers be supplied at a transfer price of $60 each (the current selling price). On the other hand, Gary's manager suggests a $56 transfer price, noting that this amount covers total cost and provides Hyden a healthy contribution margin.
a. What transfer price would you recommend?
b. Discuss the effect of the intercompany sales on each manager's return on investment.
c. Should Hyden be required to use more than excess capacity to provide speakers to Gary? In other words, should it sell to Gary some of the 200,000 units that it is currently selling to unrelated companies? Why or why not?

Answers

Answer:

Salem Companies

a. I recommend a transfer price of $56 per unit (in view of the excess capacity).

b. The intercompany sales at $56 per unit will increase Hyden's return on investment because it will use excess capacity to produce the required units while still selling to outside customers at $60 per unit.  With regard to Gary's return on investment, there will be no change as this is the same price it buys from outside suppliers.  However, if the price were to be $60 per unit, the return on investment will reduce while skyrocketing Hyden's.

c.  Hyden can still sell some of the 200,000 units that it currently sells to unrelated companies at $56 if the outside demand is less than 200,000 units or if Gary will buy at $60 per unit.

Explanation:

a) Data and Calculations:

Purchase price from outside suppliers = $56 each

Production units of Hyden = 200,000

Capacity of Hyden = 285,714

Unit cost at present volume of activity = $48

Variable cost = $32

Fixed cost = $16

Transfer price by Hyden at $60:

Profit per unit = $12 ($60 - $48)

Return on investment = 25% ($12/$48 * 100)

Transfer price at $56 using excess capacity:

Incremental profit per unit = $24 ($56 - $32)

Incremental return on investment = 75% ($24/$32 * 100)

Transfer price at $56 producing below capacity:

Profit per unit = $8 ($56 - $48)

Return on investment = 16.7% ($8/$48 * 100)

On September 1, Home Store sells a mower (that costs $260) for $560 cash with a one-year warranty that covers parts. Warranty expense is estimated at 12% of sales and is recorded at the time of the sale. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Repair Parts Inventory. Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs. (Round your answers to 2 decimal places.)

Answers

Answer:

25

Explanation:

Central Park Inc. is a company that sells women's clothing. It recently shut down its physical store and is operating as an app-based store now. The app allows users to access the store's products anytime and anywhere using their cell phones, and it also has features that allow users to compare the prices of similar products across different online stores. This scenario exemplifies _______. a. dual distribution b. a drop and shop program c. M commerce d. multichannel marketing

Answers

Answer:

c. M commerce

Explanation:

Since in the given situation it is mentioned that it recently shut down its physical store and operate now on app-based. In this the user could access at any time and anywhere via cell phones also it give the benefit to compare the prices

So this represent the m-commerce means mobile commerce. Users can operate it any time at anywhere without any use of laptop or desktop.

Identify each statement as either true or false. In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. Banks typically loan out a portion of customer deposits. Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs. Answer Bank

Answers

Answer:

In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. FALSE.

Banks keep only a portion of the customer deposits in the bank vault. A small portion is kept with the Fed called the Reserve Requirement.

Banks typically loan out a portion of customer deposits. TRUE.

Banks only loan out the portion of customer deposits that they did not leave with the Fed.

Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. TRUE.

When too many people try to withdraw from a bank, the bank might not meet these obligations because they loaned out money to people and those people were not yet due to pay back. This is a bank run.

The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. TRUE.

The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs. FALSE.

As explained in the first paragraph, the Fed requires that banks keep a portion of customer deposits with the Fed instead of the total value of customer deposits.

Answer:A

Explanation:

i just did it

Last year Lawn Corporation reported sales of $115,000 on its income statement. During the year, accounts receivable decreased by $10,000 and accounts payable increased by $15,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be

Answers

Answer:

$125,000

Explanation:

Particulars                                                     Amount

Sales revenue                                            $115,000

Add: Accounts receivable decrease        $10,000

Cash Receipt from customers                 $125,000

The sales revenue adjusted to a cash basis for the year is $125,000.

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