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AnnyKZ [126]
3 years ago
5

A leading beverage company sells its signature soft drink brand in vending machines for $0.99 per 12 oz. can. A vending machine

has monthly fixed costs of space rental, energy consumption, and capital depreciation of $135. Variable cost for a can of soda is $0.43.
Business
1 answer:
Kamila [148]3 years ago
7 0

Answer:

You didn´t post the complete information of the exercise, I searched the exercise online and tried to ask the most useful question.

Explanation:

  • Contribution per unit = Price - Variable cost = 0.99 - 0.43 = 0.56
  • Contribution per unit required=0.56 * (1+20%)=0.672
  • New selling price required=Contribution+Variable cost=0.672+0.42=$1.092

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49. Lodge Inc. reported pretax book income of $5,000,000. During the year, the company increased its reserve for warranties by $
eduard

Answer:

Unfavorable (increases taxable income).

Explanation:

$200,000-$50,000=$150,000Unfavorable (increases taxable income)

Book income would be $150,000 less than taxable income because the company increased its reserve for warranties by $200,000 and then went ahead to deduct $50,000 on its tax return related to warranty payments made during the year which is why the impact on taxable income compared to pretax book income of the book-tax difference that results from these two events will be $150,000 Unfavorable (increases taxable income).

6 0
3 years ago
Assessing Financial Statement Effects of Passive and Equity Method Investments On January 1, Ball Corporation purchased shares o
olga2289 [7]

Answer:

(a) See part a of the attached excel file.

(b) See part b of the attached excel file

Explanation:

(a) Assume that the stock acquired by Ball represents 15% of Leftwich's voting stock and that Ball has no influence over Leftwich's business decisions.

Note: See part a of the attached excel file for the Financial Statement Effects.

Under each transaction, the following calculations are made:

Transaction 1: Amount = Number of shares * Price per share = 10,000 * $17 = $170,000

Transaction 2: No calculation is needed as Ball has no influence over Leftwich's business decisions.

Transaction 3: Amount = Number of shares * Dividend per share = 10,000 * $1.20 = $12,000

Transaction 4: Amount = Number of shares * (Year-end market price per share - Acquisition price per share) = 10,000 * ($19 - $17) = $20,000

(b) Assume that the stock acquired by Ball represents 30% of Leftwich's voting stock and that Ball accounts for this investment using the equity method since it is able to exert significant influence.

Note: See part b of the attached excel file for the Financial Statement Effects.

Under each transaction, the following calculations are made:

Transaction 1: Amount = Number of shares * Price per share = 10,000 * $17 = $170,000

Transaction 2: Percentage of voting stock * Annual net income reported by Leftwich = 30% * $80,000 = $24,000

Transaction 3: Amount = Number of shares * Dividend per share = 10,000 * $1.20 = $12,000

Transaction 4: Amount = No calculation is needed as Ball has influence over Leftwich's business decisions.

Download xlsx
6 0
2 years ago
When did banks of deposit first arise?
Roman55 [17]

Answer:

Around 2000BC

Explanation:

3 0
2 years ago
Real GDP per capita in the U.S. grew from about​ $6,000 in the year 1900 to about​ $51,500 in​ 2016, an average growth rate of​
ollegr [7]

Answer:

36.84 years and 31.82 years

Explanation:

In this question ,we applied the rule no 70 which means we get to know the estimated number of years for doubling the real GDP

In the first case, the estimated number of years

= 70 ÷ average  annual growth rate

= 70 ÷ 1.9%

= 36.84 years

In the second case, the estimated number of years

= 70 ÷ average  annual growth rate

= 70 ÷ 2.2%

= 31.82 years

8 0
2 years ago
Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store sellin
8_murik_8 [283]

a) Ernie's accounting profit is <u>$40,500</u>.

b) Ernies economic profit is <u>$10,500</u>, excluding the salary forgone (opportunity cost) from the accounting profit.

<h3>What is the difference between accounting profit and economic profit?</h3>

The difference between accounting profit and economic profit is that accounting profit does not consider the opportunity costs, which economic profit factors in.

Accounting profit is narrower in concept than economic profit.  It is simply revenue minus total costs without opportunity cost.

Economic profit, on the other hand, includes the opportunity costs in the total costs.

<h3>Data and Calculations:</h3>

Salary per year at P.E.T.S = $30,000

Annual interest from savings = $500 ($10,000 x 5%)

Revenue in the new business = $50,000

Explicit costs = $10,000

Accounting profit = $40,500 ($50,500 - $10,000)

Economic profit = $10,500 ($50,500 - $10,000 - $30,000)

Thus, Ernie's accounting profit is <u>$40,500</u> and the economic profit is <u>$10,500</u>.

Learn more about accounting profit and economic profit at brainly.com/question/27113609

#SPJ1

4 0
1 year ago
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