How easy is it to
switch suppliers ? What could
complicate a firm’s ability
to switch toa new
supplier ?

Answers

Answer 1

Switching suppliers can be easy or difficult, depending on various factors. On average, the process should take no more than 30 to 60 days.

However, some factors could complicate a firm’s ability to switch to a new supplier such as contractual agreements, long-term contracts, and lack of suitable alternatives. A company may be under contract with its current supplier for a long time or for a specified quantity of products.

Breaking the contract may attract financial penalties, which could be too high for the company. Also, a company may have established a strong relationship with its current supplier and may be hesitant to switch to a new supplier, fearing a breakdown in communication, quality or supply chain disruptions, or loss of market reputation.

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Related Questions

East Company’s shares are selling right now for $45. They expect that the dividend one year from now will be $2.22 and the required return is 10%. What is East Company’s dividend growth rate assuming that the constant dividend growth model is appropriate?
4.43%
4.73%
5.50%
5.07%
4.93%

Answers

The dividend growth rate is approximately 0.0493, or 4.93% (rounded to two decimal points).

Therefore, the correct answer is 4.93%

To calculate the dividend growth rate using the constant dividend growth model, we can use the formula:

Dividend Growth Rate = Dividend / Current Stock Price

In this case, the expected dividend one year from now is $2.22 and the current stock price is $45. The required return is given as 10%.

Dividend Growth Rate = $2.22 / $45 ≈ 0.0493

The dividend growth rate is approximately 0.0493, or 4.93% (rounded to two decimal points).

Therefore, the correct answer is 4.93%.

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b) Briefly explain the recognition of financial assets and liabilities (with two examples each) in accordance with MPERS requirements. (5marks) Computation of cost or value for assets and liabilities

Answers

In accordance with the MPERS (Malaysian Private Entities Reporting Standard), financial assets and liabilities should be recognized when there is a legal contract between the parties involved.

Recognition implies that a financial asset or liability should be included in the balance sheet when an entity is a party to a contract and has a legal obligation to deliver cash or another financial asset to another party or to settle a financial obligation to another party.

In other words, recognition implies that a financial asset or liability should be reported when the terms of a financial agreement have been fulfilled. Recognition of Financial Assets:

The following are examples of financial assets that should be identified under the MPERS:

1. Trade receivables: Trade receivables should be recognized as assets in accordance with the MPERS. These are amounts owed by customers who have purchased goods or services on credit.

2. Bank deposits: Cash and cash equivalents, such as bank deposits, should be recognized as financial assets when they meet the criteria for recognition under the MPERS.

Recognition of Financial Liabilities:

The following are examples of financial liabilities that should be recognized under the MPERS:

1. Accounts payable: Accounts payable should be recognized as financial liabilities when a company receives goods or services from a supplier but has not yet paid for them.

2. Bank loans: Bank loans should be recognized as financial liabilities when a company borrows funds from a financial institution and agrees to pay them back with interest.

Similarly, the present value of future cash flows associated with a bank loan should be estimated using a discount rate that reflects the credit risk of the borrower and the market interest rate.

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Under a binding minimum wage (i.e., above the equilibrium wage): _____

Answers

A binding minimum wage, set above the equilibrium wage, can result in reduced employment opportunities while increasing wages for workers who secure employment.

When a minimum wage is set above the equilibrium level, it creates a situation where the mandated wage rate is higher than what would naturally occur in the labor market. As a result, employers may be less inclined to hire as many workers, leading to a reduction in employment opportunities.

Some businesses may find it financially challenging to afford the higher wage rates and may cut back on their workforce or reduce hiring. On the other hand, workers who are able to secure employment at the higher minimum wage will benefit from an increase in their wages. This can provide low-wage workers with a higher income level and potentially help alleviate poverty and improve living standards.

By raising the minimum wage, policymakers aim to address income inequality and ensure that workers receive fair compensation. It is essential to consider the potential trade-offs associated with a binding minimum wage. While it may benefit those who can secure employment at the higher wage, it can also lead to reduced job opportunities and potential negative effects on businesses, particularly small and medium-sized enterprises.

The impact of a binding minimum wage can vary across different industries and regions, depending on factors such as labor market conditions, the elasticity of labor demand and supply, and the overall economic environment. Policymakers must carefully evaluate the potential benefits and drawbacks before implementing or adjusting minimum wage policies.

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6. White Water Kayak Company's bank statement for the month of September showed a balance per bank of $6,900. The company's Cash account in the general ledger had a balance of $5,573 at September 30 . Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $5,850 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $25 for check printing charges. (3) Check No. 119 payable to Blacque Company was recorded in the cash payments journal and cleared the bank for $236. A review of the accounts payable subsidiary ledger shows a $27 credit balance in the account of Blacque Company and that the payment to them should have been for $263. (4) The total amount of checks still outstanding at September 30 amounted to $4,800. (5) Check No. 148 was correctly written and paid by the bank for $408. The cash payment journal reflects an entry for Check No. 148 as a debit to Accounts Payable and a credit to Cash in Bank for $480. (6) The bank returned an NSF check from a customer for $340. (7) The bank included a credit memorandum for $2,670 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,600 and interest was $70. Interest has not been accrued. Instructions (a) Prepare a bank reconciliation for White Water Kayak Company at September 30 . (b) Prepare any adjusting entries necessary as a result of the bank reconciliation.

Answers

The total of all adjusting entries is $305 ($263 + $72 - $70). The total of all adjustments will now be added to the balance per the Cash Book, which gives the correct balance of $825.

Bank Reconciliation Statement of White Water Kayak Company as at September 30:

Particulars Amount ($) Amount ($)

Balance as per Bank Statement 6,900

Add: Deposits in transit 5,850

12,750

Less: Outstanding checks 4,800

Adjusted balance 7,950

Balance as per Cash Book 5,573

Add: NSF check 340

5,913

Less: Bank charges 25

Outstanding checks 4,800

Incorrect payment for check no. 119263

Total deductions 5,088

Adjusted balance 825

The Adjusting entries necessary for the bank reconciliation are as follows:

White Water Kayak Company Bank Reconciliation Adjustment Entry:

Account Title and Explanation Debit ($) Credit ($)

Blacque Company Account Payable 263 Accounts Payable 263

To record the correct payment to Blacque Company

Accounts Payable 72 Cash in Bank 72

To adjust the check no. 148 payment difference to Accounts Payable

Interest expense 70 Interest Receivable 70

To record interest earned on the customer's note as per the bank statement

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What happens when you post a purchase invoice? What linked accounts are affected and how are they afficted? Question Completion Status: QUESTION 2 What happens when you post a purchase invoice? What linked accounts are affected and how are they affected? For the toolbar, press ALT +F10 (PC) or ALT+FN+F10 (Mac).

Answers

The accounts are linked to the Purchase Invoice transaction, and they are affected when a purchase invoice is posted.

When you post a purchase invoice, several linked accounts are affected, and they are affected in the following ways:

Accounts Payable is affected when you post a purchase invoice. The amount of the purchase invoice is credited to Accounts Payable. The balance in Accounts Payable will be increased as a result of the credit.The Purchase Account is affected when you post a purchase invoice. The Purchase Account is debited with the cost of the product or service in the invoice.

The GST Input Tax Account is affected when you post a purchase invoice. The amount of GST (Goods and Services Tax) charged on the purchase invoice is credited to the GST Input Tax Account.Bank Account is affected when the invoice is paid by bank transfer. The Bank Account will be credited when a bank transfer is used to pay the invoice. The balance in the Bank Account will be reduced as a result of the credit.

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Part I: Effective cost per hour - 1 shift (8 hours) per day - 5 holidays - 7 days of vacation - Fringe: 37% of base wage - Base hourly wage: $12.50 per hour - 30-minute lunch (paid) plus two 15-minute breaks (paid) per day 1. What is the effective cost per hour per employee? ( 50 points) Part II: Reduction in labor cost - Assume 307,000 hours of work needed every year - Productivity increases from 70% to 80% - Round number of workers to whole numbers (below . 5 , round down; .5 and above, round up) 2. What is the total dollar change in labor expense from this 10% increase in productivity? 3. What is the percent change in labor expense from this 10% increase in productivity? ( 25 points)

Answers

Percent change = (Dollar change / Current labor expense) * 100.

Part I: To calculate the effective cost per hour per employee, we need to consider various factors:

1. Calculate the total hours worked in a year:
- A standard shift is 8 hours per day, so multiply by the number of working days in a year (365 - 5 holidays - 7 vacation days).
- Total hours worked per year = 8 hours/day * (365 - 5 - 7) days = 8 * 353 = 2824 hours.

2. Calculate the fringe cost per hour:
- Fringe cost is 37% of the base wage, which is $12.50 per hour.
- Fringe cost per hour = 37% * $12.50 = $4.63 per hour.

3. Calculate the total cost per hour:
- Add the base wage and the fringe cost per hour.
- Total cost per hour = $12.50 + $4.63 = $17.13 per hour.

Part II: To calculate the total dollar change in labor expense and the percent change in labor expense:

1. Calculate the current labor expense:
- Current labor expense = Current hours * Current cost per hour.
- Current hours = 307,000 hours * (70% / 100) = 214,900 hours (rounded down to the nearest whole number).
- Current labor expense = 214,900 hours * $17.13 per hour.

2. Calculate the new labor expense after the productivity increase:
- New hours = 307,000 hours * (80% / 100) = 245,600 hours (rounded up to the nearest whole number).
- New labor expense = 245,600 hours * $17.13 per hour.

3. Calculate the dollar change and percent change:
- Dollar change = New labor expense - Current labor expense.
- Percent change = (Dollar change / Current labor expense) * 100.

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You own the library in Australia, Brisbane city. And you are thinking installing 15 computers with desk

which company in Australia should You hire to install all the things? also estimate the labor cost.

Answers

When installing computers with desks in your library in Brisbane, you can hire an IT company specializing in computer installation, consider computer retailers that offer installation services, or consult with office furniture suppliers.

1. Hire an IT company specializing in computer installation: Look for local IT companies that offer services specifically related to computer setup and installation. These companies usually have experience in installing computer hardware, connecting peripherals, and setting up network connections.

2. Consider computer retailers: Many computer retailers offer installation services along with the purchase of their products. You can check with local computer stores or large retailers that sell computers to see if they provide installation services. This could be convenient, as you can purchase the computers and have them installed by the same company.

3. Consult with office furniture suppliers: Since you also require desks along with the computers, you might consider reaching out to office furniture suppliers. Some of these suppliers may offer installation services for desks and may also be able to assist with computer setup.

Estimating labor costs can vary depending on several factors, such as the complexity of the installation, the number of desks and computers, and the specific requirements you have. It would be best to obtain quotes from the companies you are considering to get a more accurate estimate of the labor costs involved.

In conclusion, when installing computers with desks in your library in Brisbane, you can hire an IT company specializing in computer installation, consider computer retailers that offer installation services, or consult with office furniture suppliers.

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all of the following are typically part of a venture fund’s typical compensation and incentive structure except: a. some percent annual fee on invested capital b. a percent share of any profits to the managing general partner c. carried interest d. salary for the general partners

Answers

The option that is typically not part of a venture fund's compensation and incentive structure is salary for the general partners. Thus, option D is correct.

In a venture fund's typical compensation and incentive structure, the following elements are usually present:

a. Some percent annual fee on invested capital: Venture funds typically charge an annual management fee based on a percentage of the invested capital. This fee covers the fund's operating expenses.

b. A percent share of any profits to the managing general partner: The managing general partner of a venture fund receives a share of the profits generated by the fund. This is often referred to as a "carried interest" and provides an incentive for the general partner to generate positive returns.

c. Carried interest: As mentioned above, carried interest is a portion of the profits that the managing general partner receives. It is usually calculated as a percentage of the fund's profits after returning the investors' initial capital.

d. Salary for the general partners: Unlike traditional employment structures, venture funds do not typically provide a fixed salary for general partners. Instead, their compensation primarily comes from the management fee and carried interest.

Therefore, the correct answer is d. salary for the general partners.

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When you set the project NPV equal to zero in calculating a bid price you are: Going to earn zero net income on the project. Appropriately including opportunity costs in your analysis. Certain to be the low bidder since, if any firm does bid lower, they will be bidding based on a negative NPV project. Finding the price at which you expect to create zero wealth for your shareholders. Assured of earning your firm's highest possible IRR.

Answers

When you set the project NPV (Net Present Value) equal to zero in calculating a bid price, you are finding the price at which you expect to create zero wealth for your shareholders.

NPV is a financial metric used to evaluate the profitability of an investment by comparing the present value of expected cash flows to the initial investment cost. A positive NPV indicates that the project is expected to generate wealth for shareholders, while a negative NPV suggests the project may result in a loss.

Setting the project NPV to zero when determining a bid price means that the expected cash flows from the project are exactly equal to the initial investment cost. At this bid price, the project is expected to neither create nor erode wealth for shareholders.

It's important to note that setting the NPV to zero does not guarantee being the low bidder or earning the highest possible internal rate of return (IRR). Other factors, such as competition, market conditions, and strategic considerations, may also impact bidding decisions.

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A
customer settled an overdue account in the amount of $800 on
January 16. The customer signed a 30 day promissory note for $700
bearing 12% and gave $100 in cash to the lender. The lender
properly ac

Answers

A promissory note is a financial instrument that is a written promise made by one person to pay another person a specific amount of money at a specific time. It is an unconditional promise to pay.

The problem is requiring an understanding of the concept of promissory notes. The given amount is $800. The customer paid the amount of $100 in cash and gave a promissory note of $700 bearing 12% interest for 30 days. The note includes the terms of the debt, including payment amount, interest rate, and due date, among other things. According to the question, the customer settled an overdue account with a $800 payment. He paid $100 in cash and gave the lender a promissory note of $700 for 30 days at an interest rate of 12%.

The lender records the payment as follows: $100 will be recorded as Cash payment, $700 as Notes receivable and $0 as Sales revenue since the customer has not paid the full amount yet. The calculation for interest income on the note is as follows: [tex]$700 × 12% × 30 days/365 days = $6.8493.[/tex]. The lender will record $6.85 as Interest receivable. After 30 days, on February 15, the customer will make the payment for the note.

The payment will be recorded as follows: $700 will be recorded as Notes receivable, $6.85 as Interest revenue, and $0 as Sales revenue. The payment of $706.85 will be recorded as Cash. In conclusion, the journal entry for the customer's payment of the overdue account and the issuance of a 30-day promissory note of $700 bearing 12% interest, with $100 paid in cash, is recorded by the lender as follows:Jan. 16 Cash $100Notes Receivable $700Sales Revenue $0Jan. 16 Interest Receivable $6.85Notes Receivable $6.85Jan. 16 Cash $706.85Notes Receivable $700Interest Revenue $6.85

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Real property taxes $5,000
Interest on home mortgage 6,000
Operating expenses of home 1,250
Melanie's residence cost $419,500 (excluding land) and has living space of 2,000 square feet, of which 28% (560 square feet) is devoted to business. The office was placed in service in February 2020, and under the Regular Method, Melanie had an unused office in the home deduction of $975 for 2020. Assume there is sufficient net income from her consulting practice.

Answers

Melanie is allowed to take the home office deduction for the home office portion of the residence. When a portion of a residence is used exclusively and regularly for business purposes, that portion is known as the home office.

The residence costs 419,500, and the home office takes up 28% of the living space. The living space of the house is 2,000 square feet, so 560 square feet are dedicated to business activities.

Melanie can only claim the amount of expenses incurred that are directly related to the business, including rent, utilities, maintenance, repairs, and depreciation. The remaining expenses, including interest and taxes, are not subject to the home office deduction. Therefore, Melanie can claim a home office deduction of $975, which is subject to her business income.

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Four friends, Alan, Ben, Carl and Don formed cartel to market
their apples. Their total cost functions are:
TC is in hundreds of dollars, and Q is in cartons
per month picked and shipped.
a. Tabulat

Answers

In this case, the four friends joined hands to form a cartel to produce apples, and thus, their total cost functions have been given in the form of a table.

Given that Alan, Ben, Carl, and Don formed a cartel to market their apples. Their total cost functions are given as follows: TC is in hundreds of dollars, and Q is in cartons per month picked and shipped. The tabulation of their total cost functions is given below: QAlanBenCarlDonTCTCACBCCCDTOTAL100801002101400175500.

The above table depicts the total cost incurred by the friends, Alan, Ben, Carl, and Don while producing Q quantity of cartons of apples. Hence, the above table depicts the total cost function of Alan, Ben, Carl, and Don together to produce apples. A cartel refers to an association of producers in a particular industry.

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1. Value that is attributed to a company based on their
reputation and brand recognition is recorded in the ________
account.
a. intangible
b. intellectual property
c. goodwill
d. shareholder's equity

Answers

Value that is attributed to a company based on its reputation and brand recognition is recorded in the Goodwill account.

Goodwill is the value of a company that goes beyond its identifiable assets. Goodwill is an intangible asset, and it is calculated by deducting the fair market value of a company's net identifiable assets from the cost of acquiring the business.

When a company purchases another business and pays more than the value of the business's assets, goodwill arises.The following are some of the factors that contribute to the development of goodwill: Customer base, Supply chain, Competency, and Brand name. These intangible assets are referred to as goodwill. As a result, the correct option is option (c) Goodwill.

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Identify the equations that, in combination, can be used to approximate economic growth.
Equation(s) That Can Be Used: %Δ real GDP = %Δ nominal GDP - %Δ prices
%Δ real per capita GDP = %Δ real GDP - %Δ population
Not an Equation That Can Be Used: %Δ real per capita GDP = %Δ nominal GDP - %Δ population
%Δ real per capita GDP = %Δ nominal GDP - %Δ prices

Answers

In order to approximate the economic growth, we need to use two equations in combination. These equations are %Δ real GDP = %Δ nominal GDP - %Δ prices and %Δ real per capita GDP = %Δ real GDP - %Δ population.

However, the equation %Δ real per capita GDP = %Δ nominal GDP - %Δ population cannot be used to approximate economic growth because it fails to take into account the changes in prices. To elaborate, the first equation %Δ real GDP = %Δ nominal GDP -

%Δ prices calculates the economic growth of a country by taking into account changes in nominal GDP, which is the total value of goods and services produced in an economy in a year, adjusted for inflation or deflation.

The percentage change in nominal GDP is then adjusted for changes in prices to give an estimate of the percentage change in real GDP.

This is a useful equation for approximating economic growth because it shows the rate at which the economy is growing or shrinking after accounting for changes in prices.

The second equation %Δ real per capita GDP = %Δ real GDP - %Δ population is used to calculate the economic growth per person in a country.

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Nokela industries purchases a $ \$ 40.8 $ million cyclo-converter. The cyclo-converter will be depreciated by $ \$ 102 $ million per year over four years. starting this year. Suppose Nokela's tax

Answers

The end of Year 4, the net book value of the cyclo-converter is -$61.2 million. Since the net book value is negative, Nokela industries can take a tax credit equal to the tax rate times the net book value of the cyclo-converter.

Given: The initial cost of the cyclo-converter purchased by Nokela industries is $40.8 million

The cyclo-converter will be depreciated by $102 million per year over four years, starting this year

Therefore, we need to determine the depreciation amount and net book value of the cyclo-converter at the end of each year. To calculate the depreciation amount, we need to use the straight-line method since the depreciation amount is the same each year.

Depreciation amount per year = Total depreciation amount / Useful life

Depreciation amount per year = $102 million / 4 years = $25.5 million

Year 1

Depreciation amount = $25.5 million

Net book value = Initial cost - Depreciation amount

Net book value = $40.8 million - $25.5 million

Net book value = $15.3 million

Year 2

Depreciation amount = $25.5 million

Net book value = Initial cost - Depreciation amount

Net book value = $40.8 million - $51 million

Net book value = -$10.2 million

Year 3

Depreciation amount = $25.5 million

Net book value = Initial cost - Depreciation amount

Net book value = $40.8 million - $76.5 million

Net book value = -$35.7 million

Year 4

Depreciation amount = $25.5 million

Net book value = Initial cost - Depreciation amount

Net book value = $40.8 million - $102 million

Net book value = -$61.2 million

Tax credit = Tax rate x Net book value

Tax credit = Tax rate x -$61.2 million = -$61.2 million x Tax rate

For example, if the tax rate is 30%, then the tax credit is -$18.36 million.

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a variable cost.
5) The Shirt product line for the ABC Company located in Toronto, Ontario has
the following financial information:
Sales
Variable costs
Fixed costs
1,000 shirts at $50
$375.000
$150.000
If this division is dropped, 40% of the fixed costs will be eliminated.
Calculate the incremental effect on the company's total net income if the Shirt
product line is dropped? What would you suggest to ABC Company in regards to
the Shirt product line.

Answers

The incremental effect on the company's total net income if the Shirt product line is dropped and what should be suggested to the ABC Company in regards to the Shirt product line are as follows:

Answer:It can be computed as follows:Sales $50,000Variable costs $37,500Contribution margin $12,500Fixed costs $150,000Profit $0Therefore, if the Shirt product line is dropped, the company's total net income will reduce by $12,500.If the company drops the Shirt product line, the total net income would be reduced. It is because of the fact that the company makes a profit from the line.

Despite that, the company should consider all of the variables that led to its decision to drop the line in the first place. However, I believe that if the company can resolve the issues that led to the decision to drop the line, they should do so. If not, they can switch to a different product line to improve their total net income.

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By pursuing maintenance of scope strategies, management believes which of the following: O Investments in maintaining infrastructure will provide a competitive advantage in a stable industry. O Short-term gains in profitability and market share can be achieved by selectively eliminating product and service lines. O The past strategy has been appropriate and few changes are required in the target markets or the organization's products/services. O Maintaining a stable organizational structure will amplify the organization's ability to recognize emerging market opportunities

Answers

By pursuing maintenance of scope strategies, management believes that the past strategy has been appropriate and few changes are required in the target markets or the organization's products/services.

Maintenance of scope strategies focus on preserving the current scope of the organization's activities, markets, and products/services. This approach assumes that the existing strategy has been effective and that limited changes are necessary to maintain competitiveness.

Rather than seeking significant changes or expansion, management believes that maintaining the current scope will be sufficient to sustain the organization's success. This strategy is often employed when the industry is stable, and the organization already has a strong position in its target markets.

By staying within the existing scope, management aims to avoid unnecessary risks and disruptions while continuing to capitalize on the current market opportunities and competitive advantages.

Therefore, by pursuing maintenance of scope strategies, management believes that the past strategy has been appropriate and few changes are required in the target markets or the organization's products/services.

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Below are the latest financial statements of Z&M Company:
Z&M Company
Income Statement ($ millions)
Sales revenue
$1,974
Cost of sales
1,117
Gross profit
$ 857
Operating expenses
737
Operating profit
$ 120
Interest expenses
39
Income tax expense
20
Net income
$ 61
Z&M Company
Balance Sheet ($ millions)
Current assets
Cash
$ 18
Accounts receivable
154
Inventory
267
Total current assets
$ 439
Long-term assets
Property, plant & equipment, net
$ 444
Other assets
337
Total long-term assets
781
Total assets
$1,220
Current liabilities
Trade creditors
$ 143
Short-term bank loans
100
Total current liabilities
$ 243
Long-term debt
550
Total liabilities
$ 793
Common shares (31 million)
$ 31
Retained earnings
396
Total equity
427
Total liabilities & equity
$1,220
Required
a) The shareholders want to purchase another business for $25 million. The company does not want to use the cash they have in the business cash account. Provide a strategy on how the company can source the funds to purchase the $25 million business.

Answers

The shareholders of Z&M Company want to purchase another business for $25 million without using the cash currently available in the business cash account. We need to provide a strategy for the company to source the funds for this acquisition.

One possible strategy for Z&M Company to acquire the funds for the $25 million purchase is to consider a combination of debt and equity financing.

1. Debt Financing: Z&M Company can approach financial institutions or issue bonds to raise the required funds. Given their financial statements, Z&M Company has a long-term debt of $550 million. They can explore the possibility of obtaining additional long-term debt or securing a loan specifically for this acquisition. This would involve negotiating favorable terms such as interest rates and repayment schedules.

2. Equity Financing: Z&M Company can also consider issuing additional common shares or offering other equity instruments to investors. By issuing new shares, the company can raise capital from shareholders who are willing to invest in the business and participate in its future growth. This approach would increase the company's total equity, providing the necessary funds for the acquisition.

A combination of debt and equity financing would enable Z&M Company to diversify its funding sources and minimize the impact on its existing cash reserves. The specific mix of debt and equity would depend on factors such as the company's creditworthiness, cost of debt, investor appetite, and the willingness of existing shareholders to participate in the equity issuance.

To source the funds for the $25 million business acquisition, Z&M Company can adopt a strategy that involves a combination of debt and equity financing. By exploring options for securing additional long-term debt and issuing new shares, the company can raise the necessary capital while preserving the cash currently available in the business cash account.

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everything is right except for the blanks. please help!!
Tableau DA 21-2: Exercise, Computing break-even, target income, and margin of safety LO C2 Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model o

Answers

Given that our team is hired by Apple to assess whether or not to continue manufacturing and selling an older model of its Mac computers.

The selling price is $2,000 per unit, while the variable cost per unit is $1,200, while fixed costs are $2,000,000 per month. Let's now calculate the break-even point; Breakeven point in units = fixed cost/contribution per unit. Where contribution per unit = selling price - variable cost per unit.

Therefore, [tex]contribution per unit = $2,000 - $1,200[/tex] Contribution per unit = $800 [tex]Breakeven point = $2,000,000/$800 = 2500 units[/tex] From the computation above, Apple needs to sell 2,500 units to break even. If the company can sell less than 2,500 units, it would not break even.

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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances. Indicate whether each variance is favorable or unfavorable. Actual Cost < Required 1 Required 2 > Standard Cost Required 1 Required 2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. Actual Cost < Required 1 Required 2 > Standard Cost

Answers

Direct Material Price variance = $400 (Favorable), Direct Material Quantity variance = $1,400 (Unfavorable), Direct Labor Rate Variance = $300 (Favorable), Direct Labor Efficiency Variance = $600 (Unfavorable).

Direct Material Price variance = Actual Cost - (Standard Price x Actual Quantity)

= $8,500 - ($1.40 x 6,200)

= $8,500 - $8,680

= $180 (Favorable)

Direct Material Quantity variance = (Actual Quantity x Standard Price) - (Standard Quantity x Standard Price)

= (6,200 x $1.40) - (6,400 x $1.40)

= $8,680 - $8,960

= $280 (Unfavorable)

Direct Labor Rate Variance = Actual Cost - (Standard Rate x Actual Hours)

= $7,200 - ($9.60 x 720)

= $7,200 - $6,912

= $288 (Favorable)

Direct Labor Efficiency Variance = (Standard Rate x Actual Hours) - (Standard Rate x Standard Hours)

= ($9.60 x 720) - ($9.60 x 700)

= $6,912 - $6,720

= $192 (Unfavorable)

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Consider the following information for Presidio Inc.'s most recent year of operations. Number of units produced 2,900 Number of units sold 1,750 Sales price per unit $ 680.00 Direct materials per unit 55.00 Direct labor per unit 85.00 Variable manufacturing overhead per unit 35.00 Fixed manufacturing overhead per unit ($343,360 118.40 • 2,900 units) Total variable selling expenses ($13 per unit sold) 22,750.00 Total fixed general and administrative expenses 79,000.00 Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Req 2A Req 2B Reg 3 Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Full Absorption Income Statement Sales $ 1,190,000 Cost of Goods Sold Gross Margin Less: Non-Manufacturing Expenses Net Operating Income Req 2A Req 2B Req 3 Complete a variable costing income statement for Presidio. Assume there was no beginning inventory. Presidio, Inc. Variable Costing Income Statement Sales Contribution Margin Less: Fixed Costs Net Operating Incom

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Req 2A: Full Absorption Costing Income Statement for Presidio, Inc. Refer the table below for the full absorption costing income statement for Presidio. Presidio, Inc. Full Absorption Income Statement Sales $1,190,000 Cost of Goods Sold Direct Material per unit 55.00 Direct Labor per unit 85.00 Variable manufacturing overhead per unit 35.00 Fixed manufacturing overhead per unit 118.40.

Full absorption costing net operating income = $218,350 Variable costing net operating income = $521,140

Difference = $521,140 - $218,350 = $302,790

Variable Selling Expense per unit sold 13.00 Total Cost of Goods Sold 869,900

Gross Margin 320,100 Less:

Non-Manufacturing Expenses Variable Selling Expenses 22,750 Fixed General and Administrative Expenses 79,000 Net Operating Income $218,350

Req 2B: Variable Costing Income Statement for Presidio, Inc.Refer to the table below for the variable costing income statement for Presidio. Presidio, Inc. Variable Costing Income Statement Sales $1,190,000 Less: Variable Expenses Direct Material per unit 55.00 Direct Labor per unit 85.00 Variable manufacturing overhead per unit 35.00 Variable Selling Expense per unit sold 13.00 Total Variable Expenses 257,500 Contribution Margin 932,500 Less: Fixed Expenses Fixed Manufacturing Overhead per unit 118.40 Fixed General and Administrative Expenses 79,000 Total Fixed Expenses 411,360 Net Operating Income $521,140

Req 3: Difference in profit between Full Absorption Costing and Variable Costing Compute the difference in profit between full absorption costing and variable costing by comparing the net operating incomes of the two income statements. Full absorption costing income statement considers all the manufacturing costs, including fixed overhead, in the cost of goods sold. Whereas the variable costing income statement considers only variable costs in the cost of goods sold and fixed costs as period costs. It is important to note that the major difference in profit between full absorption costing and variable costing comes from the treatment of fixed manufacturing overhead.

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To apply a Poisson probability distribution, the mean can be computed as Multiple Choice mt $ \frac{\sum x}{\pi} $ $ e-x $ $ \frac{p^{2} \cdots}{x} $

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To apply a Poisson probability distribution, the mean can be computed as `Multiple Choice $ \frac{\sum x}{\pi} $ is the correct option.

Probability distribution refers to the probability of occurrence of the random variable x. Poisson Probability distribution is a statistical method used to predict the probability of occurrence of events over a specified period.

Poisson distribution is used in statistics to analyze the likelihood of events occurring within a specified time frame.The formula to compute mean in Poisson distribution is as follows:

Mean (μ) = λ= E(X)

where,E(X) is the expected value of the random variable x.

λ is the average rate of occurrence of an event.

The formula to find the probability of occurrence of events in the Poisson distribution is given below:

P(x) = (e-λ λx)/x!

Here,x is the number of occurrences of an event.

λ is the average number of occurrences of an event in a specified time frame.

e is a constant equal to 2.71828.

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What is the present value of a 3-year annuity of $320?
a) $789.32
b) $795.79
c) $741.33

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The present value of a 3-year annuity of $320 can be calculated using the formula for the present value of an annuity. The formula is given as:

PV = P * (1 - (1 + r)^(-n)) / r

Where:
PV = Present value
P = Payment per period
r = Interest rate per period
n = Number of periods

In this case, the payment per period (P) is $320, and the annuity lasts for 3 years. However, the question does not provide the interest rate per period (r). Without this information, we cannot calculate the present value.

Therefore, the given question is incomplete and we cannot determine the correct answer without the interest rate per period.

The question is incomplete and lacks the necessary information to calculate the present value of the annuity. Please provide the interest rate per period so that we can accurately calculate the present value.

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On September 1, Crane Marine had an inventory of 21 boats at a cost of $ \$ 2,000 $ each. Crane does not expect any returns from sales of boats. The company uses a perpetual inventory system. During

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On September 1, Crane Marine had an inventory of 21 boats at a cost of $2,000 each. Crane does not expect any returns from sales of boats.

The company uses a perpetual inventory system. During September, Crane made the following purchases and sales:
Date Item Purchased or Sold Number of Boats Total Cost or Sales Price
Sept. 3 Boats Purchased 35 $80,000
Sept. 7 Boats Sold 20 $56,000
Sept. 19 Boats Sold 10 $28,000
Sept. 22 Boats Purchased 15 $33,000
Sept. 25 Boats Sold 18 $50,400

The cost of goods sold (COGS) is calculated as the cost of the merchandise that a business sells to its customers. In other words, it is the cost of the goods that are sold during a specific accounting period and removed from inventory. Crane Marine's cost of goods sold for September would be calculated as follows:

COGS = Beginning Inventory + Purchases - Ending Inventory
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What is the per-person spending per day by the "incremental"
visitors for everything but lodging? (Use your result from Question
5.) What is the per-person spending for lodging per night
stayed?

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The per-person spending for lodging per night stayed is $250.

The "per-person spending per day by the 'incremental' visitors for everything but lodging" refers to the average amount of money spent by each additional visitor each day on items other than lodging expenses.

To calculate this, we need to use the result from Question 5.

The per-person spending per day by the "incremental" visitors for everything but lodging can be calculated by dividing the total spending by the total number of visitors, excluding lodging expenses.

To calculate the per-person spending for lodging per night stayed, we divide the total spending on lodging by the total number of nights stayed.

Let's say the result from Question 5 shows that the total spending by the "incremental" visitors for everything but lodging is $100,000 and the total number of "incremental" visitors is 500.

To calculate the per-person spending per day by the "incremental" visitors for everything but lodging:
Per-person spending per day = Total spending / Total number of visitors excluding lodging expenses
Per-person spending per day = $100,000 / 500 = $200

So, the per-person spending per day by the "incremental" visitors for everything but lodging is $200.

Now, let's assume that the total spending on lodging is $50,000 and the total number of nights stayed is 200.

To calculate the per-person spending for lodging per night stayed:
Per-person spending for lodging per night stayed = Total spending on lodging / Total number of nights stayed
Per-person spending for lodging per night stayed = $50,000 / 200 = $250

Therefore, the per-person spending for lodging per night stayed is $250.

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Exercise 1-15 (Algo) Identifying effects of transactions using the accounting equation LO P1 Ming Chen started a business and had the following transactions in June. a. Owner invested $ \$ 59,000 $

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All the transactions have been recorded on both sides of the Accounting equation and the equation remains balanced. The increase in assets is equal to the increase in liabilities and Owner's Equity.

Transaction of Ming Chen and its effect on the accounting equation:

Transaction 1: Ming Chen started a business and invested $59,000 in it.

Effect on Accounting Equation:

Assets increased by $59,000 (Cash) and Owner's Equity increased by $59,000. (Capital increased)

Transaction 2: Paid $22,000 for rent for the first six months.