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allsm [11]
4 years ago
6

The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods invent

ory in units 0 Units produced 8,600 Units sold 5,900 Sales $ 1,180,000 Materials cost $ 172,000 Variable conversion cost used $ 86,000 Fixed manufacturing cost $ 946,000 Indirect operating costs (fixed) $ 118,000 The absorption costing operating income is:
Business
1 answer:
tankabanditka [31]4 years ago
3 0

Answer:

$378,000

Explanation:

The absorption costing operating income is shown below:-

Total manufacturing cost = Material cost + Variable conversion cost + Fixed manufacturing cost

= $172,000 + $86,000 + $946,000

= $1,204,000

Unit product cost = Total manufacturing cost ÷ Units produced

= $1,204,000 ÷ 8,600

= $140

Ending inventory in units = Produced - Sales

= 8,600 - 5,900

= 2,700

Ending inventory under absorption costing = Ending inventory in units × Unit product cost

= 2,700 × $140

= $378,000

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The following data relate to the supply schedule of a product.
slava [35]

Answer:

A

Explanation:

The formula for price elasticity of supply is:

Percentage change in quantity supplied ÷ percentage change in price

From $25 to $30

% change in quantity = (500 - 350)/350 = 42.86%

% change in price = (30 - 25)/25 = 20%

PES = $42.86/$20 = 2.143,

4 0
4 years ago
LMN Insurance Company is concerned about its exposure to hurricane losses for property risks it insured on the Gulf Coast. LMN b
ELEN [110]

Answer:

c) Catastrophe Bonds

Explanation:

These type of bonds are also known as the CAT bonds, and they are issued  at any catastrophic event which is foreseen in the future. Basically these are insured linked securities that are used in the process of managing risks that are associated with the catastrophic events such as mentioned in the question i.e hurricane.

Any investor before investing in these bonds should fully understand what type of bonds are these because they posses a greater risk of low return and are very different from conventional bonds.

Hope this helps.

Thanks buddy.

3 0
4 years ago
You are evaluating the following two investment opportunities: Project A: This project requires $2,000 upfront, and pays you $50
Rainbow [258]

Answer:

The project A has a smaller IRR, and the project B is more attractive

Explanation:

Solution

Solve for Project A:

Now,

Let assume that the IRR be x

Hence,

The  Present Value of  Outflows of Cash Outflows= The Present Value of Inflows of Cash

Thus,

2000 =500/(1.0x) +500/ (1.0x)^2 +1200/(1.0x)^3    

Or  we say x= 4.223%

Therefore the IRR is 4.223%

For project B:

Let assume that the IRR  be y.

Thus,

The  Present Value of  Outflow of Cash = The Present Value of Inflow of Cash

so,

2000 =600/(1.0y) + 600/ (1.0y)^2  + 1000/(1.0y)^3

Or  we say, y= 4.498%

Therefore  the IRR is 4.498%

8 0
4 years ago
For each of the following pairs of firms, indicate which firm would be more likely to engage in advertising. Pairs of Firms More
8090 [49]

Answer:

a family-owned restaurant

a manufacturer of cars

A company that invented a very comfortable razor 

Explanation:

A family owned resturant is an example of a monpolistically competitive firm. A monpolistically competitive firm is characterised by many firms selling differentiated products. Advertising is one of the ways to attract customers to the restaurant.

A family owned farm is an example of a perfectly competitive firm. A perfectly competitive firm is characterised by many firms selling homogenous products. Thus, it won't be so necessary for a farm to advertise since its product is homogenous.

A car manufacturer exists in a monopolistic market. A monpolistically competitive firm is characterised by many firms selling differentiated products. Advertising is one of the ways to attract customers to purchase cars.

Forklifts aren't so differentiated. Therefore, there would be little need to advertise.

A manufacturer of a very comfortable razor should advertise his product to inform and attract customers. The manufacturer of a uncomfortable razor has no need to advertise.

I hope my answer helps you.

5 0
3 years ago
Last year, J&H Corp. reported a book value of exist700 million in current assets, of which 15% is cash, 17% is short-term In
Umnica [9.8K]

Complete Question

The  complete question is shown on the first uploaded image

Answer:

The  correct stalemates are

The company is using -$14 million in net operating working capital  

acquired by investor supplied funds.

Based on the information on industry averages , other players in the industry

would generate higher profits than J&H Corp , if they had no debt and  

held no financial assets

Explanation:

The  calculation is shown on the second and third uploaded image

8 0
4 years ago
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