Answer and Explanation:
a. The profit margin represent that it could charge high prices that should be relative to the cost while on the other hand the asset turnover represent that it is relatively non-efficient for producing sales per asset dollar
b. Now the return on investment is
= Profit margin × asset turnover
= 27.8% × 0.670
= 18.6
The same would be relevant
Exercise 9-18 (Algorithmic) (LO. 5) In 2020, the CEO of Crimson, Inc., entertains 9 clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times during the event. The box cost $6,750 per event and seats 11 people. (The cost of a regular, nonluxury box seat at Memorial ranges from $50 to $100.) Refreshments served during the event cost $1,720 (and were separately itemized on the bill Crimson received). How much of these costs may Crimson deduct
Answer: $860
Explanation:
As substantive business discussions took place in box at various times, there can be certain deductions for business purposes.
The box cost is not deductible because the cost is substantially higher than the cost of nonluxury box seats at the same stadium.
As per normal taxation convention, 50% of the refreshments can be deducted as business expenses:
= 50% * 1,720
= $860
Bank reconciliations
Answer:
When you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
Meaning:
A bank statement is a list of all transactions for a bank account over a set period, usually monthly. The statement includes deposits, charges, withdrawals, as well as the beginning and ending balance for the period.
he management of Green Energy Manufacturing is analyzing variable overhead variances for the fiscal period just ended. The flexible budget called for $176,000 in variable overhead but actual variable overhead was $100,000. In computing the overhead variances, Green's management discovered that it had used 40,000 pounds of direct material, rather than the budgeted amount of 44,000 pounds. (Pounds of direct material is the single overhead driver of variable overhead). The standard variable overhead rate per pound of direct material is $2.00. What is Green's variable overhead spending variance
Answer:
See below
Explanation:
With regards to the above, Green's variable overhead spending variance is computed as
= Flexible budget - Actual variable overhead.
Given that
Flexible budget in variable overhead = $176,000
Actual variable overhead = $100,000
Therefore,
Variable overhead spending variance
= $176,000 - $100,000
= $76,000 F
For an open economy under a floating exchange rate regime, _________________________.
a.) Monetary policy is highly effective.
b.) Fiscal policy is highly effective.
c.) Monetary policy is ineffective.
d.) B and C.
explain the following definition of marketing ethics
Answer:
Explanation:
The concept of ethical marketing refers to the way in which companies and / or enterprises market their goods and services: the focus does not only revolve around the benefits of their offer for customers, but also on how they impact on causes and / or responsible actions with society and / or the environment ..
In order to sell a product at a profit, the product must be priced higher than the total cost to build the unit, plus period expenses and overhead. At the end of last year, Chester had their product Cake aimed at the Low End segment. Cake's production cost (labor + materials) last year was $14.07 ($5.89 unit labor cost and $8.18 unit material cost). Exclude possible inventory carrying costs. Assume period expenses and overhead total 50% of their production cost. What is the minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead?
Answer:
Chester Cakes
The minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead is:
= $21.11.
Explanation:
a) Data and Calculations:
Production cost:
Labor per unit = $5.89
Materials per unit 8.18
Total production cost $14.07
50% Overhead 7.04
Minimum price = $21.11
b) The minimum price for a unit of the cake includes the total variable production cost and the determined 50% overhead on the production cost to cover period expenses and other overhead costs.
Calistoga Produce estimates bad debt expense at 0.20% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $475,000 and $1,470, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $333,000 and $304,000, respectively, and $1,870 in accounts receivable were written off. Calistoga's accounts receivable at December 31, 2021, are:
Answer:
the ending account receivable balance is $502,130
Explanation:
The computation of the ending account receivable balance is given below:
= Account receivable at Dec’31 2020 + Credit sales on 2021 - collections on 2021 - write off the account receivable
= $475,000 + $333,000 - $304,000 - $1,870
= $502,130
Hence, the ending account receivable balance is $502,130
The same would be considered and relevant too
The type of listing agreement that provides for the payment of a commission to the broker even if the owner himself makes the sale without the aid of the broker is called a(n)
a.
open listing
b.
option listing
c.
exclusive-agency listing
d.
exclusive-right-to-sell listing
A customer places an order on January 1, 2019. Fifteen days later, that order is received by the manufacturing department. Twenty days later, the order is put into production. Processing (manufacturing) time is 25 days for this order. The completed order is then shipped 15 days later. For this order, what was the total customer-response time (CRT), in days
Answer: 75 days
Explanation:
The total customer-response time (CRT), will be calculated as:
Order received by the manufacturing department = 15 days
Add: Order put into production = 20 days
Add: Processing time = 25 days
Add: Shipping Time = 15 days
Total customer response time = 75 days
QUESTION 16
You are a school photographer taking individual and class pictures for 2 classes of 21 students each. On average, each individual picture
takes 3 minutes and a class picture takes 10 minutes. About how long should it take you to get all of the pictures?
O A 1 hour 3 minutes
OB. 1 hour 13 minutes
OC. 2 hours 6 minutes
OD. 2 hours 16 minutes
OE 2 hours 26 minutes
1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $8 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line
Sara works at a printing company. She and her colleagues have to stagger
their tasks carefully because each of their projects require not only the
printers, but other equipment as well. Sara is currently working to fulfill an
order for 5,000 flyers, which are due tomorrow. Her customer just called to
say that they need additional 5,000 flyers.
What will be least important to Sara as she determines whether her company
can accommodate the request?
A. Whether her company has enough paper on hand
B. Whether her company can print the additional flyers without
negatively affecting the other projects
C. Whether there is enough time to print the additional flyers by
tomorrow
D. Why the customer needs 5,000 extra flyers
Answer: D. Why the customer needs 5,000 extra flyers
Explanation:
The important factors that Sara will consider to know whether her company can accommodate the request are:
• Whether her company has enough paper on hand
• Whether her company can print the additional flyers without negatively affecting the other projects
• Whether there is enough time to print the additional flyers by tomorrow.
These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.
The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.
Answer:
D. why the customer needs 5,000 extra flyers
A company wants to set up operations in a country with the following corporate tax rate structure: Taxable Income Tax Rate <$50,000 15% $50,000 - $75,000 25% $75,000 - $100,000 34% >$100,000 39% Therefore, a taxable income of $60,000 would result in taxes due of $50,000*0.15 + ($60,000-$50,000)*0.25 = $50,000*0.15 + $10,000*0.25 = $10,000 If the compay expects gross revenues of $300,000, $150,000 in total costs, $20,000 in allowable tax deductions and $6,000 in a one-time business start-up credit, how much should the company expect to pay in taxes?
Answer:
$183,950
Explanation:
The computation is shown below:
Total taxable income is
= $300,000 - $150,000 - $20,000
= $130,000
Now tax is
= 15% of $50,000 + 25% of ($75,000 - $50,000) + 34% of ($100,000 - $75,000) + 39% of ($530,000 - $100,000)
= 0.15 of $50,000 + 0.25 of $25,000 + 0.34 of $25,000 + 0.39 of $430,000
= $189,950
Now Tax owed is
= $189,950 - $6,000
= $183,950
8. What is an example of a situation in which a shortage is caused by a change in
supply?
Answer:
Temporary supply constraints, e.g. supply disruption due to weather or accident at a factory.
Fixed prices – and unexpected surge in demand, e.g. demand for fuel in cold winter.
Government price controls, such as maximum prices.
Monopoly which restricts supply to maximise profits.
Which of the following statements about cash versus accrual accounting is most correct? A. In cash accounting, an event is recognized when a cash transaction occurs. B. In accrual accounting, an event is recognized when a cash transaction occurs. C. Most large healthcare organizations use cash accounting because it presents a better picture of the economic status of the organization. D. Most small healthcare organizations use accrual accounting because it closely matches statements required for income tax purposes. E. In cash accounting, an event is recognized when the obligation for a cash transaction is created.
Answer:
In cash accounting, an event is recognized when a cash transaction occurs
Explanation:
Account
This is simply a place to summarize all of the transactions that influence or affect one particular asset, liability, equity, revenue, expense, gain, or loss item.Cash are said to be asset.
Cash Accounting (COST)
This usually show (recognize) revenues and expenses when cash is physically paid or received even if or when transaction do happens. That is it will record only those transactions that affect cash ( only when someone gives or receives cash). It is very common in smaller business and can be a little inaccurate.
Accrual Accounting on the other hand, record revenue when sale is made and not when cash received. It also records expense when they arise and not when they are paid. It links revenues to when they were earned, while expenses when they are incurred. It is very common in bigger business and said to be more accurate indication of performance.