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4 years ago

Ray presents information about the office supplies his company sells to a

Business

2 answers:

Temka [501]4 years ago

7 0

B because you still have a opportunity to make a good investment, but you can explore other options

Lerok [7]4 years ago

3 0

Answer:

A. Provide a solution to this objection, such as offering a discount for

a year-long contract on office supplies.

Explanation:

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William's Co. is considering spending $15,000 at Time 0 to test a new product. Depending on the test results, the firm may decid

spin [16.1K]

Answer:

$10,275.03

Explanation:

Years 0 1 2 3 4

Cash flow -15000 -58000 45000 45000 45000

Successful chance result (62%) -9300 -35960 27900 27900 27900

Considered cash flow -15000 -35960 27900 27900 27900

Discount factor (14%) 1 0.877 0.769 0.675 0.592

Present value -15000 (31,543.86) 21,468.14 18,831.71 16,519.04

Net present value = -$15000 - $31,543.86 + 21,468.14 + 18,831.71 + 16,519.04

Net present value = $10,275.03

7 0

4 years ago

Heating & cooling installs and services commercial heating and cooling systems. elklandelkland uses job costing to calculat

Artyom0805 [142]

Answer:

The predetermined overhead rate is calculated by dividing total estimated overhead costs by total estimated direct labor hours = $61,500 / 4,100 labor hours = $15 per direct labor hours
total overhead rate for job 102 = 72 direct labor hours x $15 per direct labor hours = $1,080
total overhead rate for job 101 = 155 direct labor hours x $15 per direct labor hours = $2,325.

7 0

3 years ago

Lakers Company produces two products. The following information is available: Product X Product Y Selling price per unit $46 $36

never [62]

Answer:

A) Contribution margin : Product X: $8; Product Y: $12

B)The expected net income: $18,000

C) Break-even point in units for each product is Product X 19,500 units, Product Y 6,500 units.

D) Break-even point in units for each product is Product X 14,625 units, Product Y 9,750 units.

Explanation:

A) Contribution margin for each product:

Product X = Selling price of X - Variable cost of X = 46 - 38 = $8

Product Y = Selling price of Y - Variable cost of Y = 36 - 24 = $12

B) The expected net income:

Expected net income = Contribution margin of product X x Units of Product X sold + Contribution margin of product Y x Units of Product Y sold - Fixed cost = 8 x 21,000 + 12 x 7,000 - 234,000 = $18,000

C) The break-even point in units for each product assuming the sales mix is 3 units of Product X for every 1 unit of Product Y:

Denote a is the number of Y BEP (in units) => 3a is the number of X in BEP (in units)

We have 3a x 8 + a x 12 = 234,000 <=> 36a = 234,000 <=> a = $6,500 <=> 3a = 19,500

Thus, break-even point in units for each product is Product X 19,500 units, Product Y 6,500 units.

D) The break-even point in units for each product assuming the sales mix is 3 units of Product X for every 2 units of Product Y:

Denote b is the number of Y BEP (in units) => 3b/2 is the number of X in BEP (in units)

We have 3b/2 x 8 + b x 12 = 234,000 <=> 24b = 234,000 <=> b = $9,750 <=> 3b/2 = 14,625

Thus, break-even point in units for each product is Product X 14,625 units, Product Y 9,750 units.

3 0

3 years ago

Bernard is a trainee accountant. His manager asked him to record a loss on the sale of machinery in the business’s temporary acc

Agata [3.3K]

Answer:

Gain and loss accounts

Explanation:

Gain and loss accounts are a form of temporary accounts that are utilized to gather combined sales and purchases that has an effect on the profit or loss of business activities over a given period, which is typically in a year. For example, the loss on property sold account.

Hence, in this situation, the correct answer to the question is known to be a GAIN and LOSS ACCOUNT.

6 0

3 years ago

Good Investments Company forecasts a $2.44 dividend for 2017, $2.62 dividend for 2018 and a $2.77 dividend for 2019 for Mountain

Ivan

Answer:

c.$29.37

Explanation:

First and foremost, it should be borne in mind that the intrinsic value of Mountain Vacations Corporation is the present value of its future dividends for the forecast period(2017-2019) plus the present value of dividend terminal value beyond the forecast period as shown thus:

Year 1 (2017) dividend $2.44

Year 2 (2018) dividend $2.62

Year 3 (2019) dividend $2.77

the terminal value of dividend=expected dividend per year after 2019/ cost of equity capital

expected dividend per year after 2019= $2.94

cost of equity capital =7%

terminal value=$2.94 /7%=$42.00

PV of future dividend=dividend/(1+cost of equity capital)^n

n is the year in which the future dividend is expected, it is 1 for 2017, 2 for 2018 , 3 for 2019 dividend and the terminal value(since the terminal value is already stated in 2019 terms)

intrinsic value of share=$2.44/(1+7%)^1+$2.62/(1+7%)^2+$2.77/(1+7%)^3+$42.00/(1+7%)^3

the intrinsic value of share=$41.11

It is obvious that the options are not correct

The question's inputs are wrong

2017 dividend should have been $1.74

2018 dividend should have been $1.87

2019 dividend should have been $1.98

dividend beyond 2019 should have been $2.10

terminal value=$2.10/7%=$30.00

intrinsic value of share=$1.74/(1+7%)^1+$1.87/(1+7%)^2+$1.98/(1+7%)^3+$30.00/(1+7%)^3

intrinsic value of share=$29.36(closest to c.$29.37)

6 0

3 years ago