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postnew [5]
3 years ago
12

Adams County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their ow

n homes within the Adams County area. Three services are provided for seniors-home nursing, meals on wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The meals on wheels program delivers a hot meal once a day to each senior enrolled in the program. The housekeeping service provides weekly housekeeping and maintenance services. Data on revenue and expenses for the past year follow:
Home Nursing Meals On Wheels House- keeping Total $900,000 490,000 410,000 $260,000 120.000 140,000 $400,000 210,000 190,000 $240,000 160,000 80,000 Revenues ..... Variable expenses ............ Contribution margin ..... Fixed expenses: Depreciation ..... Liability insurance....... .. Program administrators' salaries ... General administrative overhead" ...... Total fixed expenses ........ ...... Net operating income (loss) ............. "Allocated on the basis of program revenues. 68,000 42,000 115,000 180.000 8,000 20,000 40.000 52.000 40,000 7,000 38,000 80,000 165,000 $ 25,000 20.000 15,000 37,000 48,000 120,000 $140,000 405,000 $ 5,000 120,000 $ 20,000 The head administrator of Adams County Senior Services, Mariam Santoya, is concerned about the organizations finances and considers the net operating income of $12,000 last year to be razor thin. (Last year's results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report , Ms. Santoya asked for more information about the financial advisability of perhaps discontinuing the housekeeping program.

The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided.

Required:
1. Should the housekeeping program be discontinued? Explain. Show computations to support your answer.
2. Recast the above data in a format that would be more useful to management in assessing the long run financial viability of the various services.
Business
1 answer:
pashok25 [27]3 years ago
6 0
Explain this better plz
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Answer:

D. Holding cost per unit per year is dependent on the selling price per unit.

Explanation:

The formulas are shown below:

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The average inventory would equal to

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If in the question, the carrying cost is given in the percentage than the per unit cost is come after multiplying it with the selling price per unit

5 0
3 years ago
After carefully going over your budget, you have determined you can afford to pay $632 per month toward a new sports car. You ca
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Answer:

I can borrow $24,000

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

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Amount of Loan = $632 x [ ( 1- ( 1.01 )^-48 ) / 0.01 ]

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4 0
2 years ago
1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return
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Answer:

$812.20

Explanation:

Given the following bond characteristic:

Coupon rate = 12%

Market or yield rate = 15%

Years to maturity = 20 years

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Inputting the values into a bond value calculator, the bond value output is : $812.20

This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.

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2 years ago
Bond prices depend on the market rate of​ interest, stated rate of​ interest, and time. Determine whether the following bonds pa
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Answer:

Determine whether the following bonds payable will be issued at face​ value, at a​ premium, or at a​ discount:

a.The market interest rate is​ 8%. Idaho issues bonds payable with a stated rate of​ 7.75%.

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b.Austin issued​ 9% bonds payable when the market interest rate was​ 8.25%.

  • Bonds issued at premium because market rate is lower than the bond's coupon rate.

c.​Cleveland's Cars issued​ 10% bonds when the market interest rate was​ 10%.

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d.​Atlanta's Tourism issued bonds payable that pay the stated interest rate of​ 8.5%. At​ issuance, the market interest rate was​ 10.25%.

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8 0
3 years ago
​Joe's starting salary as a mechanical engineer is around ​$100 comma 000. Joe is planning to place a total of 13​% of his salar
Maru [420]

Answer:

$ 2,209,797.96

Explanation:

Given:

Salary = $100,000

Salary investment rate = 13%

Salary increase rate(g) = 5%

number of year = 25

Annual rate of return(i) = 11%

Calculation:

Salary invested = $100,000*13% = $13,000

calculation of present worth

P=A[\frac{1-(1+g)^n(1+i)^{-n}}{i-g}] \\P=13000[\frac{1-(1+0.05)^{25}(1+0.11)^{-25}}{0.11-0.05}] \\P=13000[\frac{1-(1.05)^{25}(1.11)^{-25}}{0.06}] \\P=13000[\frac{1-(3.386354)(0.073608086)}{0.06}]\\\\P=13000[\frac{1-0.249263}{0.06}]\\\\ P=13000[12.5122827]\\\\\\P= 162,659.675

Future worth = P(1+i)^n\\                       = 162,659.675(1+0.11)^{25}\\                       = 2,209,797.96

3 0
3 years ago
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