Answer:
The gross profit margin for the cat condo is 50%
Explanation:
Since the gross profit per unit is not given, so first we have to find it. The calculation is shown below:
= Selling price per unit - Direct materials cost per unit - direct labor costs per unit - Manufacturing overhead per unit
= $90 per unit - $15 per unit - $10 per unit - $20 per unit ( $10 per unit × 200%)
= $45 per unit
Now apply the Gross profit formula which is shown below:
= (Gross profit per unit ÷ selling price per unit) × 100
= ($45 per unit ÷ $90 per unit) × 100
= 50%
Answer: $918,000
Explanation: Since Shelton Co is considering building a warehouse on the site because the rental lease is expiring then in evaluating the new project all the relevant cash flows must be considered in the protect evaluation. Market value of the land used for constructing the building is an opportunity cash flow and so must be considered. The Relevant cost of opportunity for land will be its fair value.
Therefore ,the initial cost cost of the warehouse project for the use of this land is $918, 000.
Answer:
$102
Explanation:
FUTA tax due from Willow Corporation for 2019, after the credit for state unemployment taxes, can be calculated by deducting the Paid state unemployment tax by the FUTA tax.
DATA
Paid State Unemployment Tax = (7,000+7,000+3,000) x 5.4%
Paid State Unemployment Tax = $918
FUTA tax rate in 2019 = 6%
Solution
FUTA tax (6% x $17,000) = $1,020
FUTA tax due = $1,020 - $918
FUTA tax due = $102
Answer:
Incremental cash flow= $1,369.863~ $1,370
Explanation:
In accrual accounting, accounts receivable gives a measure of revenue that a business has earned.
Given the annual revenue as $25,000. To get the daily revenue
Daily revenue= Annual revenue/ 365
Daily revenue= 25,000/365
Daily revenue= $68.493
Customers are expected to pay within 20 days, so for every 20 days
Incremental cash flow= 20 days* 68.493
Incremental cash flow= $1,369.863~ $1,370
Answer:
a.
$52,200
b.
$51,156
Explanation:
Note are issued n the face value or the discounted value. When price of the note is the same as face value then it is known as issued on par/face value.
When price of the note is the lower as face value then it is known as issued on discounted value.
a.
Proceeds from the note issued is the price of the note at which it is issued. As the note is issued on the face value of $52,200, so the proceeds is the same value.
b.
Discount value = $52,200 x 12% x 60/360 = $1,044
Proceeds = Face value of the note - Discount on the note = $52,200 - $1,044 = $51,156
