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andreev551 [17]
3 years ago
14

The overhead costs for a company are presently $X per month. The management team of the company in cooperation with the employee

s is ready to implement a comprehensive improvement program to reduce these costs. If you (a) consider an observation of actual overhead costs for one month analogous to an output unit, (b) estimate the overhead costs for the first month of program implementation to be 1.15X due to extra front-end effort, and (c) consider a 90% improvement curve applicable to the situation, what is your estimate of the percentage reduction in present overhead costs per month after 30 months of program implementation
Business
1 answer:
andre [41]3 years ago
8 0

Answer:

31.42%

Explanation:

The computation of the estimate of the percentage reduction in present overhead costs per month is shown below:-

n = log s ÷ log2

= log 0.90 ÷ log 2

= -0.152

Now we will use the learning curve equation  which is here below:

Z30 = 1.15X × 30^(-0.152)

= 0.685765148

So, the cost is reduced by

= 1 - 0.685765148

= 0.314234852

or

= 31.42%

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During the year, Belyk Paving Co. had sales of $2,560,000. Cost of goods sold, administrative and selling expenses, and deprecia
scoundrel [369]

Answer:

Net income -$268,000

Operating Cash Flow $511,000

Explanation:

A. Calculation for the Net income

INCOME STATEMENT

Sales $2,560,000

Cost of goods sold $1,364,000

Other expenses $685,000

Depreciation $477,000

EBIT $34,000

Interest $302,000

Taxable income -$ 268,000

($34,000-$302,000)

Taxes (24%) 0

Net income -$268,000

CALCULATION FOR EBIT

Sales $2,560,000

LESS:Cost of goods sold ($1,364,000)

Other expenses ($685,000)

Depreciation ($477,000)

EBIT $34,000

Based on the information given we were told that we should ignore any tax loss which was why Taxes (24%) was $0

The taxes are zero since we are ignoring any carryback or carryforward provisions.

Therefore NET INCOME is -$268,000

B. Calculation for operating cash flow

Using this formula

Operating Cash Flow = EBIT + Depreciation - Taxes

Let plug in the formula

Operating Cash Flow= $34,000 + $477,000 - 0

Operating Cash Flow = $511,000

Therefore Operating Cash Flow is $511,000

3 0
3 years ago
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1 par, common shares, to b
uranmaximum [27]

Answer and Explanation:

The journal entry is given below:

Stock dividends Dr $60.00  

         To Common stock  $60.00

(Being the issue of stock dividend is recorded)

Here the stock dividend is debited as it reduced the stockholder equity and credited the common stock as it increased the stockholder equity

Also the par per share after the split is $1

8 0
2 years ago
Lester Moy bought two new Michelin Tires for his car at $99.55 per tire. He was also charged $4.95 per tire for mounting, $2.65
Arte-miy333 [17]
You have to do some adding and multiplying. first 99.55 times 4 tires

3 0
3 years ago
Which of the following statements concerning the selection of risk management techniques and insurance market conditions is (are
valentinak56 [21]

Answer:

I.It's easier to purchase affordable insurance during a "soft" market than during a "hard" market

I only

Explanation:

When a purchaser of insurance wants to make a purchase he analyses the market to get a favourable condition that reduces risk and loss.

The market condition can be a soft market or hard market.

Soft market is one in which potential sellers are more than potential buyers. So supply exceeds demand. Buyers are able to buy affordable insurance.

Hard market on the other hand is when there is an upswing in market cycle. Premiums increase and capacity for insurance decreases.

It is more difficult to get affordable insurance in this market

6 0
3 years ago
began a new development project in 2020. The project reached technological feasibility on June 30, 2021, and was available for r
gogolik [260]

Answer:

$352,500

Explanation:

Development costs incurred prior to June 30, 2021 must be expensed, they cannot be capitalized.

Capitalized R&D costs = $1,410,000

External use software (software intended to be sold to third parties) should be amortized using straight line amortization (4 years in this case):

amortization expense = $1,410,000 / 4 = $352,500

4 0
3 years ago
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