BCC has received a request from a school board for 200 computers. Using the full-cost criteria and desired level of return, which one of the following prices should be recommended to BCC's management for bidding purposes? Round answer to one decimal place.
Q: The board of directors of Blossom Corporation is considering two plans for financing the purchase of…
A: Bonds are trade-able assets that are issued by the companies. It provides a fixed interest rate to…
Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…
A: Contribution margin per unit = P15 x 35% = P5.25
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution…
A: Profit commonly known as net operating income is the excess of revenue over expenses .
Q: Question 9 Which of the following statements is CORRECT O Flotation costs associated with issing new…
A: WACC stands for Weightage Average Cost of Capital. The WACC means the average cost of all capital…
Q: expense on short term debt should be based on projected balances and short term interest rates.…
A: Basic Concept of accounting
Q: 51. Which of the following increases contribution margin ratio the most for a company currently…
A:
Q: 1. Prepare journal entries to record the income tax and 2. Present the income tax expense in the…
A: Routine transactions, such as customer billings and supplier invoicing, should not be recorded using…
Q: The purchase of new equipment with cash would appear on the statement of cash flows as a/an…
A: The statement of cash flows forms a part of financial statement. The statement of cash flows is the…
Q: Budget Actual $45 780 $46 125
A: The answer has been mentioned below.
Q: removal cost by $15,000. If it is reinforced, et) value would be $18,000 at the time it is concrete…
A: Given, Interest Rate= 8% Cost= $25,000 Initial Cost= $3,200 Salvage Value= $18,000 Annuity Factor is…
Q: The division's turnover is closest to:
A: Divisions turnover can be calculated by dividing the sales by the average operating assets.…
Q: 11.37 Black Corporation has a machine that cost $12,000 and has accumulated depreciation of $4,000.…
A:
Q: Changes in Current Operating Assets and Liabilities-Indirect Method Mohammed Corporation's…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: is earned in the previous year 2020-21. (1) Salary received from Govt. of India (He lived in…
A: In India, income taxation is determined by a person's residency status. An individual's residence…
Q: Using the following information, create the following budgets for January, February and March: the…
A: The production budget determines how many units of a product are required to be produced so as to…
Q: Holiday, Inc. had the following transactions in the ordinary shares of May Corporation: January 5…
A: Bonus issue means additional shares are issued by the company to the current shareholders free of…
Q: Q12. The following are commonly used plug items, except a. cash and marketable securities b.…
A: Source of raising finance includes: Long term loans & Advances Short term loans and advances…
Q: 1
A: All sorts of future cash flows in respect of adding interest on present value are known as future…
Q: Sky High sels helidop COsts. Breakeven point in units is OA 59 units OB. 44 units OC 71 units OD. 42…
A: Introduction:- Break-even point point means, where no profit or loss At Break-even point point,…
Q: Inrecent years, Marigold Company has purchased three machines. Because of frequent employee turnover…
A: Business organizations are required to charge the depreciation expense so as to fairly present the…
Q: Plasma Storage Devices buys $10,000 of equity securities, which it classifies as available-for-sale.…
A: Available for Sale (AFS) securities are those securities equity or debt securities that are…
Q: Mr. and Mrs. Bachman, both age 65, file a joint return. In 2021, they have wages of $30,000,…
A: Gross total income includes all the kinds of income earned during the year including wages,…
Q: Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and…
A: Before tax profit = P140,000 / 70% = P200,000 Fixed cost = P100,000 Sales = P200,000 / 20% =…
Q: Several years ago, Sammy Inc. acquired a 709% interest in Lavender Co. The book values of Lavender's…
A: Cost of goods sold: - Costs of goods sold is the value of total goods sold during a particular…
Q: Create a Ledger.
A: Ledger is a principal book that contains all the accounts such as Assets Accounts, Liabilities…
Q: Nintendo Company, Ltd., recently reported the following financial information (amounts in millions).…
A: Through the evaluation of financial accounts such as the financial statement, ratio analysis…
Q: ec. 1245 property acquired in 1983 for $850.000 have been claimed. Martha inherits the me amount of…
A: The answer has been mentioned below.
Q: Property insurance will not cover damage to your home caused by a hail storm.
A: Property insurance is a type of insurance policy which provides protection against property from…
Q: the retained earnings for the end of a year should be calculated as the retained earnings at the end…
A:
Q: 3. Danielle Curtain files as married fing jointly on her tax retum and earned weekly gross pay of…
A: The wage bracket method can be used by employees who are claiming a maximum of 10 allowances. The…
Q: Which of the following bank reconciliation adjustments would result in an increase to the company's…
A: Bank reconciliation is used for reconciling the balance in the banks books with that of the balance…
Q: The Dixon Company begins the budget period with 20 pounds in Materials Inventory costing $1.50 per…
A: FIFO is first in first out inventory valuation method under which inventory which is purchased first…
Q: Malcom's financial statements revealed uncollectible accounts expense of S8,000, accounts receivable…
A: Net realizable value = Accounts receivable - Ending Allowance for uncollectible accounts where,…
Q: Production engineers of a manufacturing firm have proposed a new equipment to increase productivity…
A: Annual revenue = 200,000 Salvage value = 100,000 Initial cost = 500,000 Rate of return = 15% Time…
Q: Depreciation on the company’s wind turbine equipment for the year is $5,000. The Prepaid Insurance…
A: Journal entries should not be used to record routine transactions such as customer billings and…
Q: The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: There is a 20% tax on the first $15,000 of income, a 30% tax on income above $15,000 until $30,000,…
A: Lets understand the basics. Marginal tax rate is a rate which you will going to pay tax on…
Q: Which of the following should financial information not be? Group of answer choices a.…
A: Financial information should be reliable, accurate, timely and substantiated.
Q: If the residual income calculated for a division is a negative number, then which of the following…
A: Residual Income is calculated by reducing minimum required rate of return from Return on investment.…
Q: H. Richards Company, a calendar yearend company, reported the following balances: Inventory Accounts…
A: Cost of goods sold is the total cost of producing the goods sold. The difference between sales and…
Q: de Manulacturers Inc. is approached by a potential customer to fulfill a one - time - only special…
A: The minimum transfer price to be charged for special order is total variable cost. Since fixed cost…
Q: Sheridan Corporation had net income of $470000 and paid dividends to comman stackholders of $34780…
A: Formula: Payout ratio = ( Dividends paid / Net income ) x 100 Division of net income with Dividends…
Q: A T&T based US subsidiary will announce a $1.50 per share cash dividend on June 1, 2022. It is noted…
A: Determination of ex-dividend date Ex-dividend date would be one business days before the record…
Q: Grady Corp. is considering the purchase of a new piece of equipment. The equipment costs $50,700,…
A: Solution a: Present value of increase in annual cash flows = $6,110 * PVA of 1 at 13% for 6 periods…
Q: Question. Please specify the journal entry and whose account it belongs to? Loan amount - 16,00,000…
A: A journal entry is used to record a business transaction in an organization's accounting records. A…
Q: on equipment used in making the component and having no other use is the critical factor in the…
A: Make-or-buy decision This is a management tool used in management accounting for taking…
Q: What total amount shall be reported in profit or loss in the Inn Corporation had 30,000 ordinary…
A: Bonus issue =30000 x 20% = 6000 shares
Q: REQUIRED Based on the cash book and bank statement of Joe Wilson ltd 1. Prepare an adjusted…
A:
Q: Newport Corporation purchased equipment for making pneumatic vibration isolators at a cost of…
A: When an existing asset is studied as planning for replacement and its proper execution is known as…
Q: What does tangible common equity reflect? Suppose that a bank has common stock of par value $200m…
A: TCE is also written as tangible common equity. It is used to see the strength of the company. Given…
1
Step by step
Solved in 2 steps
- Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing, or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) depends on demand as follows: If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data warehouse? What is the expected annual cost associated with that recommendation? Construct a risk profile for the optimal decision in part (a). What is the probability of the cost exceeding $700,000?The Shine Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: Variable manufacturing costs Applied fixed manufacturing overhead Variable selling and administrative costs Applied fixed selling and administrative costs What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 235%? Multiple Choice $1,565.25. $1,700.25. $1,835.25. $2,060.25. None of these answer choices is correct. $ 440 220 175 190A manager is trying to decide whether to purchase a certain part or to have it produce internally. Internal production could use either of two processes. One would entail a variable cost of P17 per unit and an annual fixed cost of P200,000, the other would entail a variable cost of P14 per unit and an annual fixed cost of 240,000. Three vendors are willing to provide the part. Vendor A has a price of P20 per unit for any volume up to 30,000 units. Vendor B has a price of P22 per unit for demand of 1,000 units less, and P18 per unit for larger quantities. Vendor C offers a price of P21 per unit for the first 1,000 units, and P19 per unit for additional units. Required: If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint?
- The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: Variable manufacturing costs $ 340 Applied fixed manufacturing overhead 170 Variable selling and administrative costs 125 Applied fixed selling and administrative costs 140 What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 145%? Multiple Choice $1,659.00. None of these answer choices is correct. $844.50. $1,249.50. $1,059.00.Ignite Products is a price-taker. The company produces large spools of electrical wire in a highly competitive market; thus, it uses target pricing. The current market price of the electric wire is $800 per unit. The company has $3,200,000 in average assets, and the desired profit is a return of 8% on assets. Assume all products produced are sold. The company provides the following information: Sales volume Variable costs Fixed costs O A $12,000,000 B. $71,000,000 units per year per unit $12,000,000 per year If fixed costs cannot be reduced, how much reduction in variable costs will be needed to achieve the desired target? OC. $256,000 O D. $3,256,000 100,000 $710Special order, opportunity cost. Chade Corp. is considering a special order brought to it by a new client. If Chade determines the variable cost to be $9 per unit, and the contribution margin of the next best alternative of the facility to be $5 per unit, then if Chade has: Full capacity, the company will be profitable at $4 per unit. Excess capacity, the company will be profitable at $6 per unit. Full capacity, the selling price must be greater than $5 per unit. Excess capacity, the selling price must be greater than $9 per unit.
- To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $10,000,000. The product will be sold for $37.50 per unit, and will incur a variable cost of $11.25 per unit. Given Blue Mouse’s cost structure, it will have to sell units to break even on this project (QBEQBE).The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): Decision State of Nature Alternative Low Demand (S1) Medium Demand (S2) High Demand )S3) Manufacture, d(1) -20 40 100 Purchase, d(2) 10 45 70 The state-of-nature probabilities are P s1= 0.35, P s2= 0.35, and P s3= 0.30 Use expected value to recommend a decision.Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative Alternative A В Materials costs $41,000 $37,900 $13,300 $15,300 $57,100 $37,900 $13,300 $22,500 Processing costs Equipment rental Occupancy costs What is the financial advantage (disadvantage) of Alternative B over Alternative A?
- To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $10,000,000. The product will be sold for $32.50 per unit, and will incur a variable cost of $11.25 per unit. Given Blue Mouse’s cost structure, it will have to sell units to break even on this project (QBEQBE). Blue Mouse Manufacturers’s marketing sales director doesn’t think that the market for the firm’s goods is big enough to sell enough units to make the company’s target operating profit of $25,000,000. In fact, she believes that the firm will be able to sell only about 150,000 units. However, she also thinks the demand for Blue Mouse Manufacturers’s…Salem Electronics currently produces two products: a programmable calculator and a tape recorder. A recent marketing study indicated that consumers would react favorably to a radio with the Salem brand name. Owner Kenneth Booth was interested in the possibility. Before any commitment was made, however, Kenneth wanted to know what the incremental fixed costs would be and how many radios must be sold to cover these costs. In response, Betty Johnson, the marketing manager, gathered data for the current products to help in projecting overhead costs for the new product. The overhead costs based on 30,000 direct labor hours follow. (The high-low method using direct labor hours as the independent variable was used to determine the fixed and variable costs.) All depreciation. The following activity data were also gathered: Betty was told that a plantwide overhead rate was used to assign overhead costs based on direct labor hours. She was also informed by engineering that if 20,000 radios were produced and sold (her projection based on her marketing study), they would have the same activity data as the recorders (use the same direct labor hours, machine hours, setups, and so on). Engineering also provided the following additional estimates for the proposed product line: Upon receiving these estimates, Betty did some quick calculations and became quite excited. With a selling price of 26 and just 18,000 of additional fixed costs, only 4,500 units had to be sold to break even. Since Betty was confident that 20,000 units could be sold, she was prepared to strongly recommend the new product line. Required: 1. Reproduce Bettys break-even calculation using conventional cost assignments. How much additional profit would be expected under this scenario, assuming that 20,000 radios are sold? 2. Use an activity-based costing approach, and calculate the break-even point and the incremental profit that would be earned on sales of 20,000 units. 3. Explain why the CVP analysis done in Requirement 2 is more accurate than the analysis done in Requirement 1. What recommendation would you make?Company XYZ is conducting an engineering economic analysis to decide whether to make vs purchase position for a necessary element needed ins several products. Now the engineering department has established this information: Option A to purchase 10,000 units annually at a fixed price of $8.50 per unit. The cost of placing the order is insignificant as per the present cost accounting procedure. Option B to manufacture 10,000 units annually with a direct labor cost of $1.50 per unit, manufacturing overhead cost is allotted at 200% of direct labor (which is $3.00 per unit) ) and Direct materials cost at $5.00 per unit. Based on the information, should the unit be purchased or manufactured?