Why should people be cautious when considering a loan with a variable

Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost. Information for the month of Janu

AleksandrR [38]

Answer:

C) $80,000

Explanation:

Since Rose uses the LIFO method for determining COGS, the 10,000 units sold should be recorded at $7.90 (purchase price 1/5).

10,000 units still remain in inventory (8,000 beginning + 2,000 last purchase). Using the LIFO costing method the inventory unit cost should be [(8,000 x $8.20) + (2,000 x $7.90)] / 10,000 = $8.14 per unit

If the replacement cost is $8 per unit, and Rose decides to use lower-of-cost-or-market rule, then she should use the lowest cost which is the replacement cost ($8 < $8.14).

So the ending inventory's total cost is $8 per unit x 10,000 units = $80,000

8 0

3 years ago

The current controllable margin for Henry Division is $138000. Its current operating assets are $300000. The division is conside

lilavasa [31]

Answer:

The correct answer is Decrease ROI by 9.33%.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate return on investment before purchase:

Return on investment = (Controllable Margin ÷ Operating assets ) × 100

= ($138,000 ÷ $300,000) × 100

= 46%

Controllable margin (New) = $138,000 + $5,000 = $143,000

Operating assets = $300,000 + $90,000 = $390,000

Return on investment (New) = ($143,000 ÷ $390,000) × 100

= 36.67%

So, change in ROI = 36.67 % - 46%

= - 9.33% ( Negative shows decrease )

Hence, Decrease ROI by 9.33%.

6 0

3 years ago

Which of the motivational theories below argues that employee productivity increases as managers pay more attention to their emp

Fofino [41]

Answer: Two Factor Theory

Explanation:

The two factor theory is also referred to as the Herzberg's motivation-hygiene theory and it states that job satisfaction and job dissatisfaction in a workplace are caused by different factors and these factors act independently of each other.

The factors are the hygiene factors and

the motivating factors. If the hygiene factors isn't present, an employee will work less. On the other hand, the motivating factors will make an employee to work harder when it's present.. Two factor theory argues that employee productivity increases as managers pay more attention to their employees.

7 0

2 years ago

The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various ga

Juliette [100K]

Answer:

b) 0

Explanation:

In this case, the manager observed that a worker spent 50% of his/her time mowing the garden, but in case this is correct, it would only apply to this worker. She would need to collect data and analyze it from a much larger sample which includes other workers in order to determine if this proportion applies to whole group. You cannot infer a conclusion based on a limited amount of data collected from just one subject. The methodology is incorrect.

8 0

2 years ago

Jack rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service

Aleonysh [2.5K]

Answer:

$80

Explanation:

Contribution per unit is a strategy of calculating incremental profit of a unit of an item sold to cover the fixed costs and the overall profit.

This is done by deducting the unit variable cost form the unit selling price.

Workings.

Unit selling price = $100

Unit variable cost = $20

Contribution per unit = $(100-20)

$80

7 0

3 years ago

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