What should the manager know about foodservice equipment safety?

Consider a four-year project with the following information: initial fixed asset investment = $595,000; straight-line depreciati

777dan777 [17]

Answer:

4.68

Explanation:

The computation of operating cash flow is shown below:-

Sales = $45 × 103,000 $4,635,000

Less: Variable cost $39 × 103,000 $4,017,000

Contribution margin $618,000

Less:- Fixed cost $270,000

EBITDA $348,000

Less: Depreciation ($595,000 ÷ 4) $148,750

EBIT $199,250

Less: Tax (199250 × 0.22) $43,835

Net income $155,415

Add: Depreciation $148,750

Operating cash flow $304,165

Change in Operating cash flow = (Selling price - Variable cost per unit) × (1- Tax rate)

= ($45 - $39) × (1 - 0.22)

= 6 × 0.78

= $4.68

Operating cash flow (after increase in sales by 1 unit)

Sales ($45× 103,001) $4,635,045

Less: Variable cost (39 × 103,001) $4,017,039

Contribution margin $618,006

Less: Fixed cost $270,000

EBITDA $348,006

Less: Depreciation $595,000 ÷ 4 $148,750

EBIT $199,256

Less: Tax ($199,256 × 0.22) $43,836.32

Net income $155,419.68

Add: Depreciation $148,750

Operating cash flow $304,169.68

Increase in operating cash flow = Cash flow after 1 unit increase in sales - Operating cash flow at current level.

= $304,169.68 - $304,165

= 4.68

6 0

2 years ago

The standards for product V28 call for 8.6 pounds of raw material that costs $19.00 per pound. Last month, 2,600 pounds of the r

aliina [53]

Answer:

A. $520 U

B.178 F

Explanation:

A.

Materials price variance = (AQ × AP) – (AQ × SP)

= $48,880 – (2,600 × $19)

=$48,880-$49,400

= $520 U

Therefore the material price variance for the month is $520U

B.

Materials quantity variance = SP(AQ – SQ*)=

$19 ($2,500 – $2,322) = $178F

Therefore the materials quantity variance for the month $178F

SQ = Standard quantity per unit × Actual output

= 8.6 × 270 = $2,322

7 0

2 years ago

Assume that output was 1,000 units in January and 3,500 units in February, utility cost is a mixed cost, and the fixed cost of u

kiruha [24]

Answer:

$0.60

Explanation:

Missing Information: Table is missing, hence, attached with the answer.

Variable cost = Total utilities cost - Fixed cost

= $2,600 - $2,000

= $600

Variable rate per unit = Variable cost ÷ No. of units produced

= $600 ÷ 1000

= 0.6

Thus, variable rate per unit of output for utilities cost is $0.60.

6 0

2 years ago

Stubbs Company uses the perpetual inventory method. On January 1, Year 1, Stubbs purchased 1,400 units of inventory that cost $1

jarptica [38.1K]

Answer:

Gross Profit $ 23,253

Explanation:

Stubbs Company

Perpetual Inventory Method

Date Purchases Unit Price Total Cost

January 1, 1,400 units $12.00 $16,800

January 10, 1,600 units $7.25 $11,600

Total 3000 28,400

Weighted Average Cost= 28,400/3000= $ 9.467

Sales 1,600 units at$24.00 =$38,400

COGS 1600 units at $ 9.467 = $ 15,147

Gross Profit $ 23,253

The amount of gross margin reported on the income statement will be: $ 23,253

3 0

2 years ago

At the end of 2003, Ritzcar Co. fails to accrue sales commissions earned during 2003, but paid in 2004. The error is not repeate

Mandarinka [93]

Answer:

The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.

The error does not have effect on the 2004 ending retained earnings balance.

Explanation:

Let the amount of the commission expense be xxxx.

At the end of 2003, the journal entries should have been as follows:

Debit Commission expense for xxxx

Credie Commission payable for xxxx

Also, we have:

Working capital = Current assets – Current liabilities ………… (1)

From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.

When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.

4 0

2 years ago

What should the manager know about foodservice equipment​ safety?

What should the manager know about foodservice equipment safety?