Answer:
an increase in the operating income by $16,322
Explanation:
The computation of the impact in the operating income is given below:
Variable cost of 75 units (1300000 × 75 ÷ 12700) 7,678
Sale price of 75 units (75 × 320) 24,000
Increase in operating income (24000 - 7678) $16,322
hence, the impact in the operating income is that there is an increase in the operating income by $16,322
Answer:
B
Explanation:
It is said that the required ending inventory for the month is $15000 and 20% of the next month's sales.
We are considering the month of march here, therefore the ending merchandise inventory is $15000- and 20% of April's sales.
Given:
April's sales = $91,000
Hence, 20% of April's sales = 0.2*91000 = $18200
Hence, ending merchandise inventory for March = 15000 + 18200 = $33,200
Answer:
C) Recurrent Disability provision
Explanation:
The human body is a fantastic machine but sometimes when you have health problems they don't show up immediately.
For example you might get hit on the right side of your head severely and lose partial hearing from your right ear, but in a couple months you might notice that your short term memory has also been affected. Both disabilities were caused by the injury although one showed up before the other.
The insurance company has to provide the disability benefits without a new elimination period under the recurrent disability provision.
Answer:
Debit Credit
Work in process inventory $15,000
Manufacturing overhead clearing account $15,000
Explanation:
First determine the amount of applied overhead which can be calculated as follows
Applied overhead=Rate per machine hour*number of hours
Applied overhead=$5*3,000=$15,000
The journal entry for the applied overhead shall be made as follow
Debit Credit
Work in process inventory $15,000
Manufacturing overheads clearing account $15,000
Answer
Miguel must set aside $62,745 annually
Explanation
N = Number of years till Miguel would retire = 43 years
FV = Future Value = $1,000,000
r = Interest rate = 10%
PMT = Annual payments (at the ending of the year) = ?? The question asks us to calculate this
We would use the future value ordinary annuity formula to calculate PMT
FV = PMT ![[\frac{(1+r )^{N} -1}{r} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B%281%2Br%20%29%5E%7BN%7D%20-1%7D%7Br%7D%20%5D)
1000000 = PMT ![[\frac{(1+0.10 )^{10} -1}{0.10} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B%281%2B0.10%20%29%5E%7B10%7D%20-1%7D%7B0.10%7D%20%5D)
PMT ≅ $62,745
Miguel must set aside $62,745 annually
