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A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $300 per day. Assume that the additional vehicle would be capable of delivering 1,500 packages per day and that each package that is delivered brings in $0.30 in revenue. Also assume that adding the delivery vehicle would not affect any other costs.Required:a) What are the MRP and MRC? b) Now suppose that the cost of renting a vehicle doubles to $600 per day. What are the MRP and MRC? Should the firm add a delivery vehicle under these circumstances? Yes/No
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Strategic thinking is different from strategic planning in that ________.A) strategic thinking relies more on hard data than strategic planning. B) strategic thinking is regimented and confining, whereas strategic planning is more flexible. C) strategic thinking includes all types of information sources while strategic planning does not. D) strategic thinking can create an illusion of control, whereas strategic planning avoids this.
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Consider the following situations for Shocker: a) On November 28, 2021, Shocker receives a $4,500 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. b) On December 1, 2021, the company pays a local radio station $2,700 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. c) Employee salaries for the month of December totaling $8,000 will be paid on January 7, 2022. d) On August 31, 2021, Shocker borrows $70,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Record the necessary adjusting entries for Shocker at December 31, 2021. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
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Carver, Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process 700 Percent complete with respect to materials 50% Percent complete with respect to conversion 40% Units started into production during the month 23,000 Work in process, ending: Units in process 200 Percent complete with respect to materials 80% Percent complete with respect to conversion 40% Required:Using the weighted-average method, what are the equivalent units of productions for materials and for conversion cost?
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The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $49,000 from the issue of common stock. 2. Purchased equipment inventory of $176,500 on account. Sold equipment for $203,000 cash (not including sales tax). 3. Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $153,000 of the sales. 6. On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,500 for warranty repairs during the year. 8. Paid operating expenses of $53,500 for the year. 9. Paid $124,200 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6.Required:a. Prepare the journal entries for the above transactions and post them to the appropriate T-accounts. b. Prepare the income statement, balance sheet, and statement of cash flows for 2016. c. What is the total amount of current liabilities at December 31, 2016?
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The national-level advisors of CTSOS
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The chart shows the marginal cost and marginal revenue of producing apple pies.A 6-column table titled The cost of and return on pie production has 7 rows. The first column is labeled pies produced per day with entries 0, 1, 2, 3, 4, 5, 6. The second column is labeled total cost with entries 0, 1, 1.50, 1.75, 2.25, 3.50, 5.00. The third column is labeled Marginal cost with entries 0, 1, 0.50, 0.25, 0.50, 1.25, 1.50. The fourth column is labeled total revenue with entries blank, 10, 20, 30, 40, 50, 60. The fifth column is labeled Marginal revenue with entries blank, 10, 10, 10, 10, 10, 10. The sixth column is labeled Profit with entries 0, 9, 18.50, 27.25, 37.75, 46.50, and 55.What most likely will happen if the pie maker bakes a seventh pie?The marginal cost will most likely decrease to $1.00The marginal cost will most likely increase to $2.00The marginal revenue will most likely decrease to $8.00.The marginal revenue will most likely increase to $12.00.
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In 2010, many high-income countries will be focused on the short-term economic horizon due to aggressive and often controversial steps governments took to jump-start these economies out of severe recession. Considering the economic challenges that result from these policies, which of the following actions would be most advisable?A. extricate themselves from the recession and the policies adopted in fighting that recessionB. to continue to temporarily disregard the foundations for future long-term growthC. find niches that they are well-suited to fill in the global networks of economic productionD. build upon or copy technologies and industries developed by other technology leaders
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The buyer for the housewares department purchased 40 blenders which retailed for $200 each. Eight blenders sold at the $200 price. For a special sales event, 32 remaining blenders were marked down to $140 each. Ten of the blenders were sold during the sale, and the remaining 22 blenders were marked back up to the original $200 unit price. All of the remaining blenders sold at the orignal price. Required:1. Calculate the total markdown dollars.
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A 3-year interest rate swap has a level notional amount of $300,000. Each settlement period is one year and the variable rate is the one-year spot interest rate at the beginning of the settlement period. The current spot rate is determined by the following prices for zero-coupon bonds with $1 face amount:Time of Maturity 1 Year 2 Year 3 Year 4 Year 5 YearPrice 0.97 0.93 0.88 0.82 0.75Required:a. Calculate the swap rate. b. Caleulate the net swap payment at the end of the first year. c. One year has elapsed and the one-year spot interest rate at the start of year 2 is 4.45%. Calculate the net swap payment at the end of the second year for the payer. d. Two years have elapsed and the one-year spot interest rate at the start of year three is 5.25 Calculate the market value of the swap.
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Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $113,400 to mix 54,000 gallons of soup. The Canning Department incurred manufacturing costs of $9,500. A total of 190,000 cans of soup were transferred to the finished goods warehouse during the month.Required:1. The unit cost per can of soup transferred to the finished goods warehouse during March was ___________.
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Succulent Juice Company manufactures and sells premium tomato juice by the gallon. Succulent just finished its first year of operations. The following data relates to this first year of operations.Number of Gallons Produced80,000Number of Gallons Sold70,000Sales Price$3.00/gallonUnit Product Cost (variable costing)$1.45/gallonContribution Margin$84,000Total Fixed Manufacturing Overhead$?Total Fixed Selling & Administrative$25,000Variable Selling & Administrative$?Inventory value under absorption costing$29,500Required:1. Prepare an Income statement for Succulent using the Absorption Costing Method. (Hints: How many units were in inventory? What was the cost per unit? Why is the CM only $84,000?)2. Explain in one or two sentences, the key differences between the net income under Absorption and the net income under Variable costing. Determine the variable costing net income. Prepare a variable costing income statement.
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Sunland Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,940 kits was prepared for the year. Fixed operating expenses account for 78% of total operating expenses at this level of sales. Sales $ 97,000 Cost of goods sold (all variable) 58,200 Gross margin 38,800 Operating expenses 33,950 Operating income $ 4,850 Assume that during the year Sunland Sports actually sold 2,037 volleyball kits during the year at a price of $47 per kit.Required:1. Calculate the sales price variance.
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The following events apply to Lewis and Harper, a public accounting firm, for the 2016 accountingperiod:1. Performed $70,000 of services for clients on account.2. Performed $40,000 of services for cash.3. Incurred $36,000 of other operating expenses on account.4. Paid $10,000 cash to an employee for salary.5. Collected $47,000 cash from accounts receivable.6. Paid $16,000 cash on accounts payable.7. Paid a $8,000 cash dividend to the stockholders.8. Accrued salaries were $2,000 at the end of 2016.Requireda. Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)a. LEWIS AND HARPERStatements ModelFor Accounting Year 2016Event No. Assets = Liabilities + Stockholders' Equity Income Statement Statement of Cash FlowsCash + Accounts Receivable = Accounts Payable + Salaries Payable + Retained Earnings Revenue Expense = Net Income1. + 70,000 = + + 70,000 70,000 = 70,000 NA2. + = + + = 3. + = + + = 4. + = + + = 5. + = + + = 6. + = + + = 7. + = + + = 8. + = + + = Totals + = + + = b. What is the amount of total assets at the end of 2016?c. What is the balance of accounts receivable at the end of 2016?d. What is the balance of accounts payable at the end of 2016?
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Suppose Lisa's utility function is 4XY, where X is the consumption of beer and Y is consumption of pizza. For this utility function, the marginal utility of X is given by MUX=4Y, and the marginal utility of Y is given by MUY=4X . a. Suppose Lisa wants to obtain a utility level of 48 utils. For each of the following, calculate the consumption of pizza (Y) that corresponds with the given consumption of beer (X) when U=48 .i. Bundle 1: Beer = 2; Pizza = __________ii. Bundle 2: Beer = 3; Pizza = __________iii. Bundle 3: Beer = 4; Pizza = __________iv. Bundle 4: Beer = 12; Pizza = ____________
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From the dropdown box beside each numbered balance sheet item, select the letter of its balance sheet classification. If the item should not appear on the balance sheet, choose the letter Z from the selection choices. a. Current assetsb. Long-term investmentsc. Plant assetsd. Intangible assetse. Current liabilitiesf. Long-term liabilitiesg. Equity1. Prepaid rent2. Taxes payable3. Account payable4. Automobiles
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Vaughn Manufacturing received a check for $24480 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $24480. Financial statements will be prepared on July 31. Vaughn's should make the following adjusting entry on July 31:a. debit Unearned Rent Revenue, $2,500; credit Rent Revenue, $2,500.b. debit Rent Revenue, $2,500; credit Unearned Rent Revenue, $2,500.c. debit Unearned Rent Revenue, $15,000; credit Rent Revenue, $15,000.d. debit Cash, $15,000; credit Rent Revenue, $15,000.
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What Are The Steps For Subtotaling Data
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Suppose that JVC is trying to decide how to price a new stereo system composed of a receiver, CD player, and speakers. The company's economists have estimated that two different groups will purchase these products: students and club owners. The economists analysis suggests that the total market for its brand of stereos consists of 10,000 students and 50,000 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows:Group Receiver CD Player Speakers Students $250 $150 $100Club owners $200 $75 $250 Required:a) Suppose that JVC markets the receiver, CD player, and speakers are sold separately and together. What prices should JVC charge to maximize revenues?
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If the price of a kayak increases, _______.A. sellers offer more kayaks for saleB. the supply of kayaks increasesC. sellers offer fewer kayaks for saleD. the supply of kayaks decreases.
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Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below:Processing $ 21,600Supervising $ 3,700Other $ 10,700Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear belowMHs (Processing) Batches (Supervising)Product Y7 3,700 400Product V0 6,300 600Total 10,000 1,000Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.Product Y7 Product V0Sales (total) $ 102,200 $ 78,900Direct materials (total) $ 40,800 $ 39,100Direct labor (total) $ 47,200 $ 22,300What is the product margin for Product Y7 under activity-based costing?a. -$3,800b. $4,728c. $14,200d. $6,208
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Takei Company's payroll for the week ending January 15 amounted to $367,000 for salaries and wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following deductions were withheld from employees' salaries and wages: Federal Income Tax $75,000 State Income Tax 13,500 FICA Taxes 28,075 Union Dues 4,100 United Fund Contributions 2,700 Federal unemployment tax (FUTA) rate is 6.2% less a credit equal to the rate paid for state unemployment taxes. The state unemployment tax (SUTA) rate is 5.4%.Required:a. Prepare the journal entry to record the weekly payroll ending January 15 and also the employer's payroll tax expense on the payroll.
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Sweet Dreams Chocolatiers Ltd. began operations on January 1, 2020. During its first year, the following transactions occurred: 1. Issued common shares for $200,000 cash. 2. Purchased $483,000 of inventory on account. 3. Sold inventory on account for $675,000. The original cost of the inventory that was sold was $405,000. 4. Collected $562,000 from customers on account. 5. Paid $431,000 to suppliers for the inventory previously purchased on account. 6. Bought a delivery vehicle for $39,000 cash. 7. Paid $27,300 for rent, including $2,100 related to the next year. 8. Incurred $20,000 of operating expenses, of which $18,000 was paid. 9. Recorded $2,000 of depreciation on the vehicle. 10. Declared and paid dividends of $8,500.Requireda. Prepare journal entries to record each of the above transactions.b. Create T accounts and post the journal entries to the T accounts.
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Carla Vista Co. had these transactions during the current period. June 12 Issued 83,000 shares of $1 par value common stock for cash of $311,250. July 11 Issued 4,300 shares of $103 par value preferred stock for cash at $107 per share. Nov. 28 Purchased 2,400 shares of treasury stock for $9,350.Required:Prepare the journal entries for the Carla Vista Co. transactions shown above. (Record journal entries in the order presented in the problem.)
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