1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AVprozaik [17]
3 years ago
7

Oriole Realty Corporation purchased a tract of unimproved land for $132,000. This land was improved and subdivided into building

lots at an additional cost of $82,704. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group No. of Lots Price per Lot 1 9 $7,200 2 15 9,600 3 17 5,760 Operating expenses for the year allocated to this project total $43,680. Lots unsold at the year-end were as follows. Group 1 5 lots Group 2 7 lots Group 3 2 lots At the end of the fiscal year Oriole Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.)
Business
1 answer:
finlep [7]3 years ago
3 0

Answer:

<em>Net income  29503</em>

<em></em>

Explanation:

First we need to allocate the land and improvement cost over the lots, we are going to do so based on the revenue:

groups NºLot $ per Lot Revenue Cost per Group Per lot

A         9         7200 64,800 44,937.4648 4,993.0516

B          15 9600      144,000 99,861.0329 6657.4022

C          17  5760  97,920 67,905.5023 3,994.4413

Total Revenue  306720  

We divide the group revenue over the total revenue and multiply by the land

and land improvements

Then we take the allocation per group and divde over the total number of lot

<u>We do the same with the allocate expenses:</u>

groups NºLot $ per Lot Revenue Cost per Group Per lot

A           9 7200 64800 9228.169 1025.3521

B          15 9600 144000 20507.0423 1367.1362

C          17 5760 97920 13944.7887 820.2817

Total revenue  306720

   

Next we solve for the sol lots:

A 9 lots less 5 unsold = 4

B 15 lots less 7 unsold = 8

C 17 lots less 2 unsold = 15

And we proceeds to do the income statement

Revenue sold x market price

Group A 4 28800

Group B 8 76800

Group C 15 86400

 192000

 

Cost lot sold x (allocate operating + allocate land and improvements)

group A     24073.6148

group B      48147.2296

group C         90276.0555

Total expenses 162496.8999

 

<em>Net income  29503</em>

You might be interested in
Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A
natita [175]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the activities rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Activity 1= 24,000 / 1,000= $24 per activity unit

Activity 2= 36,900 / 900= $41 per activity unit

Activity 3= 63,000 / 1,800= $35 per activity unit

<u>Now, we can allocate costs to product A:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Activity 1= 24*200= $4,800

Activity 2= 41*750= $30,750

Activity 3= 35*1,000= $35,000

Total allocated costs= $70,550

<u>Finally, the unitary cost:</u>

Unitary cost= 70,550 / 5,000= $14.11

3 0
3 years ago
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return fro
goblinko [34]

Answer:

                                             Project A                  Project B

Initial investments               ($170,000)               ($115,000)

CF Year 1                              $42,500                  $34,500

CF Year 2                             $58,500                  $52,500

CF Year 3                             $82,795                  $68,500

CF Year 4                             $92,900                  $68,500

CF Year 5                             $67,500                  $68,500

using an excel spreadsheet and the IRR function, the internal rate of return of each project is:

  • Project A's IRR = 26.02%
  • Project B's IRR = 36.31%

We can use the discount rate (12%) to calculate the projects' NPV, we do not need it to calculate their IRR:

  • Project A's NPV = $70,855
  • Project B's NPV = $88,815

6 0
3 years ago
During market testing, Rembrandt Cosmetics realized that the cosmetics industry was dominated by multiple, well-established bran
Vinil7 [7]

In the given scenario, Rembrandt Cosmetics accomplished its substitution primarily through strategic planning of equivalence.  

<h3>What is strategic planning?</h3>

When the differences between two different strategic plans are identical, with other things being constant, such a situation is called as a strategic planning of equivalence.

Hence, strategic planning holds true regarding the given situation.

Learn more about strategic planning here:

brainly.com/question/16699515

#SPJ1

4 0
1 year ago
what happens when ethanol is refluxed with acidified sodiumheptaoxodiochromate(4) solution for a long time​
salantis [7]

Answer:

1-butanol

Explanation:

7 0
3 years ago
Price elasticity of demand is defined as: a. the slope of the demand curve. b. the slope of the demand curve divided by the pric
Mandarinka [93]

Answer: Option D

Explanation: In simple words, price elasticity refers to the degree of change in demand of a commodity with respect to change in its price. It generally shows the fact that when the price of a commodity rises the demand for ti decreases due to various phenomenon coming into force such as income effect etc.

The price elasticity is calculated by dividing the change in quantity demanded with the change in price.

4 0
3 years ago
Other questions:
  • What schooling do you need to be a preschool teacher
    14·2 answers
  • A company inserts winning prize tickets into 10,000,000 of its products. 1 of the tickets is a large cash prize, 1,600,000 are s
    9·1 answer
  • Harriet works at Good Steaks,a local bar and restaurant.Her manager is always barking orders at her,saying she needs to move fas
    7·1 answer
  • Lucia's bank offers a savings account with 1.9% APR compounded monthly. What is the actual annual percentage yield on this accou
    7·1 answer
  • Can someone please explain what grassroots are in easy terms? I have tried to find a definition that I understand but I can't fi
    11·1 answer
  • In newspaper advertising, ________ advertising includes copy, illustrations or photos, headlines, coupons, and other visual comp
    9·1 answer
  • Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distan
    10·1 answer
  • Sales and costs are projected to grow at 20% a year for at least the next 4 years. Both current assets and accounts payable are
    11·1 answer
  • Evaluate the current financial performance of eskom​
    7·1 answer
  • The first person that answers ill give u 50 brainlist points, brainlist to, stars, and a heart
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!