The annual percentage rate on a credit card determines ______

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:

Sati [7]

Answer:

Weller Company

Selling and Administrative Expense Budget for the upcoming year:

First Quarter

Variable = $302,400 (($2.80 x (29,000 + 30,000 +22,000 + 27,000))

Fixed:

Advertising = $56,000 ($14,000 x 4)

Executive Salaries = $188,000 ($47,000 x 4)

Depreciation = $112,000 ($28,000 x 4)

Insurance = $10,000 ($5,000 x 2)

Property Taxes = $7,800

Total = $672,200

Explanation:

A budget is a projection into the future about the activities of an entity. It is used for planning and decision making, especially when the budget is compared with the actual performances to obtain variances.

The total variable for the year is obtained by adding up the budgeted unit sales for the quarters and multiplying by the variable expense per unit.

The fixed costs total $373,800. The Advertising, Executive Salaries, and Depreciation costs would be incurred each quarter. So their sums were obtained by multiplying a quarter's total cost by 4.

Insurance cost would be incurred only in two quarters and Property Taxes in one quarter only.

7 0

3 years ago

Why is there no competition in a monopoly?

barxatty [35]

A) there are no close substitutes

Explanation:

A monopoly results when there is a single provider of a particular good or service. Since they’re the only company providing that good or service, the consumer must conduct their business with that specific provider. For example, imagine that Walmart is the only store you can buy food from. Walmart would dominate the entire supply market as it would be the only store from which you can buy your food.

7 0

3 years ago

Read 2 more answers

Suppose your company needs $13 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost fo

natulia [17]

Answer:True cost = $\frac{cost of assembly}{1-weighted flotation cost }$

= $\frac{13,000,000}{1- 0.049}$

= $ 13,669,821.2

Explanation:

Given :

Debt-Equity ratio = 0.55

Flotation cost for new equity = 6%

Flotation cost for debt = 3 %

∴ To compute the weighted flotation cost , we'll use the following formula:

Weighted Flotation cost = $\left [ \frac{1}{1+Debt-Equity ratio}\times Flotation cost of equity \right ] + \left [ \frac{Debt-Equity ratio}{1+Debt-Equity ratio}\times Flotation cost of debt \right ]$

= $\left [ \frac{1}{1+0.55}\times 0.06 \right ] + \left [ \frac{0.55}{1+0.55}\times 0.03 \right ]$

= 0.0387 + 0.0106

= 0.04934 or 4.93%

The true cost of building the new assembly line after taking flotation costs into account is evaluated using the following formula :

True cost = $\frac{cost of assembly}{1-weighted flotation cost }$

= $\frac{13,000,000}{1- 0.049}$

= $ 13,669,821.2

3 0

3 years ago

Inventory Analysis A company reports the following: Cost of goods sold $347,480 Average inventory 86,870 Determine (a) the inven

stiks02 [169]

Answer:

a. 4

b. 91.25 Days

Explanation:

a. Inventory Turnover = Cost of goods sold/ Average Inventory

= $347,480 / 86,870

= 4

b. Number of days sales in Inventory = Inventory/ COGS*365

= 86,870 / $347,480 * 365

= 91.25 Days

5 0

3 years ago

Vijay Inc. purchased a 3-acre tract of land for a building site for $420,000. On the land was a building with an appraised value

PtichkaEL [24]

Answer:

$433,900

Explanation:

The computation of the capitalized cost of the land is shown below:-

Capitalized cost of the land = Purchase price + Demolition of building + Title insurance + Attorney fee + Property taxes covered during the period - Scrap value from the building

= $420,000 + $12,000 + $900 + ($3,000 - $500) - $1,500

= $420,000 + $12,000 + $900 + $2,500 - $1,500

= $435,400 - $1,500

= $433,900

5 0

3 years ago

The annual percentage rate on a credit card determines _______.