Answer:
Check the explanation
Explanation:
a. Gains from being nice = $60
reason: outcome for being nice = $100; outcome for being mean = $40 So the gains from being nice = 100 - 40 = 60
b. Average mean server earnings = $40 (given)
Average nice server earnings = $ 100 (given)
Change in tips per server if all of the servers switch from being mean to being nice = $60 (100 - 40)
c. Individual payoff of my becoming nice = $6
reason: Total number of servers = 10
Change to the tip pool with my change in behavior from mean to nice = $60
My share in this change = 60/ 10 =6
d. 1-I am more likely to be nice when I keep my own tips.
reason: I can keep $100 if I am nice. But in a tip pool, some of the others may be mean. This will bring the pool amount lower, thereby my share may be less than $100. So I prefer to keep my own tips.
The company's break even points in unit sales is 43,000 units.
Above the actual sales volume of 42,000 units is the break-even point.
<h3>What is Break Even point?</h3>
- In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even."
- Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even."
- A graph with a function that represents the fixed costs is also helpful.
- No matter how many units are manufactured, the fixed cost is always 1200, hence the fixed costs function is shown as a horizontal line (FC = 1200).
- Any of the following will raise the break-even point: an increase in the quantity of fixed charges or expenses for the business.
- An increase in variable expenditures and expenses per unit. A drop in the selling prices offered by the company.
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Answer:
The new price of the bond is $928.94
Explanation:
Initially the bond's price is equal to its par value which means the coupon rate on bond and the market interest rates are the same i.e. 6%.
Th bond's price is calculated as the sum of the present value of the annuity of interest payments by the bond and the present value of the face value of the bond that will be received at maturity. The discount rate used to calculate the present values is the market interest rate.
As the bond is a semiannual bond, we will use the semi annual coupon payment, the semi annual percentage of the annual rate of interest on market and the number of semi annual periods outstanding.
Semi annual coupon payment = 1000 * 0.06 * 6/12 = $30
Number of semiannual periods till maturity = 10 * 2 = 20 periods
New market interest rate = 6 + 1 = 7% annual
New semi annual market interest rate = 7% / 2 = 3.5%
Price of bond = 30 * [ (1 - (1+0.035)^-20) / 0.035 ] + 1000 / (1+0.035)^20
Price of bond = $928.938 rounded off to $928.94
We used the present value of annuity ordinary formula for preset value of interest payments and the normal present value of principal formula for the face value.
Answer:
Explanation:
The cost allocation of each lot is presented below:
(A) (B) (A × B)
Lot Appraised Value Percentage Purchase value Allocated cost
Lot 1 $76,500 15% $355,000 $53,250
Lot 2 $229,500 45% $355,000 $159,750
Lot 3 $204,000 40% $355,000 $142,000
Total $510,000 100% $355,000
Now the journal entry would be
Land - Lot 1 $53,250
Land - Lot 2 $159,750
Land - Lot 3 $142,000
To Cash A/c $355,000
(Being the lots are purchased for cash)
Answer:
The estimated rate based on labour hour==6
The actual rate based on labour hour=6.08
The rate based on machine hour=24
The rate based on machine hour= 22.66
Explanation:
Given that Carlson estimated its overhead costs to be $240,000,direct labor hours at 40,000 and machine hours at 10,000 as well as the actual overhead costs incurred of $249,280, actual direct labor hours of 41,000, and actual machine hours of 11,000.We can calculate the to apply .
The estimated rate based on labour hour=240000/40000=6
The actual rate based on labour hour=249280/41000=6.08
The rate based on machine hour=240000/10000=24
The rate based on machine hour=249280/11000=22.66
