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Setler [38]
3 years ago
15

Bellue Inc. manufactures a single product. Variable costing net operating income was $115,600 last year and its inventory decrea

sed by 2,300 units. Fixed manufacturing overhead cost was $4 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year
Business
1 answer:
Delicious77 [7]3 years ago
5 0

Answer:

absorption costing net operating income = $106400

Explanation:

Manufacturing overhead in inventory =  Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory

Since the fixed overhead cost was $4 for both unit in beginning and in ending inventory

 $4 per unit × (−2,300) = −$9200

Variable costing net operating income =  $115600

subtract fixed manufacturing overhead costs released from inventory

(9200 )  from Variable costing net operating income

Absorption costing net operating income =  Variable costing net operating income -  fixed manufacturing overhead costs released from inventory

Absorption costing net operating income  = 115600 - 9200 =  $106400

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A $ 5000 bond with a coupon rate of 6.7​% paid semiannually has eight years to maturity and a yield to maturity of 7.8​%. If int
prohojiy [21]

Answer:

As a result of an increase in the YTM, the price of the bond will fall $4677.19 from to $4593.67

Explanation:

The bonds are valued or priced based on the present value of annuity of interest payments and the present value of the principal. Based on the YTM of 7.8% the bonds are priced at,

coupon payment = 5000 * 0.067 *1/2  =  $167.5

Semiannual YTM = 7.8 *0.5  =  3.9%

Semi annual periods to maturity = 8 * 2  =  16 periods

Old Price = 167.5 * [( 1 - (1 + 0.039)^-16  + 5000 / (1+0.039)^16

Old Price = $4677.19

New semiannual YTM = 8.1% / 2  =  4.05%

New Price = 167.5 * [( 1 - (1+0.0405)^-16) / 0.0405] + 5000 / 1.0405^16

New Price = $4593.67

7 0
2 years ago
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,500,000 and there are 135,000
Masteriza [31]

Answer:

(a) $61.11

(b) $54.44

Explanation:

1)

Value of Stock = Benchmark price-sales ratio × Stock's sales

                          =  5.5 × 1,500,000

                         = $8,250,000

Thus,

Price of stock = Value of Stock ÷ shares outstanding

                       = 8,250,000 ÷ 135,000

                       = $61.11

Thus, I would pay $61.11 for the stock.

2)

Value of Stock = Benchmark price-sales ratio × Stock's sales

                          =  4.9 × 1,500,000

                         = $7,350,000

Thus,

Price of stock = Value of Stock ÷ shares outstanding

                       = $7,350,000 ÷ 135,000

                       = $54.44

Thus, I would pay $54.44 for the stock.

7 0
3 years ago
After a third complaint about how her company was handling customer service requests, catalina developed a code of ethics to spe
Arisa [49]

The code of ethics which Catalina developed is supposed to spell out how her staff will interact with customers, fellow employees, and members of the general public.

<h3>What is the purpose of a Code of Ethics?</h3>

The Code of ethics is an organizational blueprint that spells out the behavior of staff or employees which when followed to the letter ensures, that the image or the organization is associated with the highest levels of:

  • Professionalism
  • Integrity and
  • Honesty,

These help to increase brand equity.

Please see the link below for more about the Code of Ethics:

brainly.com/question/11634495

6 0
2 years ago
Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed
julia-pushkina [17]

Answer:

- BEP in unit: 4,000 units;

- In case fixed cost increases by 10%, New BEP in unit: 4,400 units.

- Net income: 1,000,000p.

- BEP in units if sale price to decrease : 8,000 units => Price change should not take place as it moves the company from making 1 million peso profit to a loss as sales in units (1,200 + 5,000 =6,200) is lower than break-even point ( 8,000 units).

Explanation:

Please find detailed calculations as below:

- BEP in unit is calculated as Fixed cost/ Margin earned by one product = 4,000,000/(3,000 - 2,000) = 4,000.

- New BEP in unit is calculated as  New Fixed cost/ Margin earned by one product = (4,000,000 x 1.1)/(3,000 - 2,000) = 4,400.

- Net income: Sales - fixed cost - variable cost = 3,000 x 5,000 - 4,000,000 - 2,000 x 5,000 = 1,000,000 p

- BEP in units if sale price to decrease: Fixed cost/ Margin earned by one product = 4,000,000/(2,500 - 2,000) = 8,000.

4 0
3 years ago
A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company
JulijaS [17]

Answer:

Net income of the company accounted for $400,000

Explanation:

Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.

The net income or loss of the company accounted for is computed as:

Net Income or Loss = Net Income - Research and Development cost

where

Net Income amounts to $3,400,000

Research and Development cost amounts to $3,000,000

So, putting the values above:

Net Income or loss = $3,400,000 - $3,000,000

Net Income  = $400,000

7 0
3 years ago
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