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KATRIN_1 [288]
3 years ago
14

You are considering the purchase of a new machine to help produce a new product line being introduced. The machine is expected t

o have a setup time of 10 minutes per batch and a processing time of 2 minutes per part. You plan to have batch sizes of 50 parts. The plant operates 8 hours per day.
A. (5 points) What is the capacity of the machine in batches per day?
B. (5 points) What is the capacity of the machine in parts per day?
C. (5 points) How many batches per daycan you run through the machine if you decide to operate the machine at a 70% utilization rate?
D. (5 points) How many parts per daycan you process through the machine if you decide to operate the machine at an 85% utilization rate?

Business
1 answer:
miss Akunina [59]3 years ago
7 0

Answer:

A. 4.3 batches

B. 215 parts

C. 3 batches

D. 184 parts

Explanation:

Please find explanation attached

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Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. During the current year, Otter Enterprises has
ivolga24 [154]

Answer:

a and b

At the level of entity, otter pays no taxes either on the capital gains or on the business income.

Members will pay taxes on the capital gains and on business income.

c

The distribution of $25,000 each will be taxable in the hands of members as it is a dividend income.

Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

Explanation:

a A partnership and b. An S corporation

At the level of entity, otter pays no taxes either on the capital gains or on the business income.

Members will pay taxes on the capital gains and on business income.

Taxable income of each member:

Ellie

Business Income is $55,000

Capital Gain is $7,500

Linda

Business Income is $55,000

Capital Gain is $7,500

Business Income = Gross Income - Operating expense

= $320,000 - $210,000

= $110,000

Note: Distribution of $25,000 will have no impact, as it only decrease their basis in the firm or company.

c. A C corporation

Ottor pays for the business income which amounts to $110,000 as well as the Capital gain of $15,000 at the applicable tax rates.

Members pays taxes only when they receive the distribution which is dividends.

The distribution of $25,000 each will be taxable in the hands of members as it is a dividend income.

Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

7 0
3 years ago
An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital by 10%
tatyana61 [14]

Answer:

266,2 units of capital per worker

Explanation:

The capital growth as stated is compound growth. Since technology and human capital are constant, there is not expected changed in productivity factors relationship, so the formula for compound growth, in this case, is: capital per worker in 3 years' time = capital per worker * (1+ annual rate growth) ^ 3. Computing numbers would be: capital per worker in 3 years' time = 200*(1+10)^3= 266,2

4 0
3 years ago
Assume that the market is perfectly competitive. If the cost function for John's Shoe Repair is �(�) = 100 + 10� − �) + 3 4 �4,
kirill [66]

Answer:

Explanation:

C(q) = 100+10q-q^2+(1/3)q^3

To find the firm marginal cost function:

Take the derivative with respect to q

MC = 10 - 2q + q^2

Assuming that the market price is p , then the profit maximising condition is:

MR = MC

p = 10 - 2q + q^2

The short-run supply curve is the marginal cost curve that lies above the average variable cost.

The average variable cost is:

AVC =VC/Q

AVC = (10q-q^2+(1/3)q^3)/Q

AVC = 10 - q + (1/3)*q^2

So, the short-run supply curve is:

SRS = 10 - 2q + q^2 if p > 10 - q + (1/3)*q^2

5 0
3 years ago
Riley Company promises to pay Janet Anderson or her estate $150,000 per year for the next 10 years, even if she leaves the compa
Jlenok [28]

Answer:

The Answer is explanatory so it is given as under:

Explanation:

<u>Part 1. At the start of the year:</u>

The part of the salary includes $150,000 per year for the next 10 years and this must be recorded as an deferred compensation liability. All we have to do is to calculate the present value of the annual salary payments.

Present Value = Annual Payment * Annuity factor

And for Annuity factor we will use 5% rate of interest.

So

Annuity Factor = (1 - (1-r)^n) / r

Here

r = 5%

n = 10 years

Which means

Annuity Factor = (1 - (1 + 5%)^10)  / 5%   = 7.722

Hence

Present value = $150,000 * 7.722 = $1,158,260

So the journal entry would be as under:

Dr Deferred Compensation expense $1,158,260

Cr    Deferred Compensation Liability $1,158,260

<u>Part 2. At the end of the Year 1:</u>

At the first year end, the annual payment of $1,158,260 will be discounted back by using the following formula:

Discounted Back Amount = Annual Amount * (1- (1+r)^n)

Remember for the first year n is 10, for second n is 9 and so on.

Discounted Back Amount = 150,000 x (1 - 0.614) = $57,913

Dr Deferred Compensation Expense   $57,913

Cr    Deferred Compensation Liability        $57,913

Part 3. And when the first payment of the salary is made, the journal entry would be:

Dr Deferred compensation Liability $ 150,000

Cr                                       Cash Account    $150,000

Likewise we will till the year 10 and will record the part 2 and part 3 until at the end of the year 10, the whole of the deferred tax liability is reduced to zero.

The life insurance policy payments can not be offset against the deferred compensation liability because it will be accounted for as a different transaction and hence must not be treated as Riley desires.

So the Cash surrender value will be treated as an asset and annual increase in this asset would be treated as an income.

5 0
3 years ago
All of the following are documents used for inventory control except:______.
damaskus [11]

Answer:

c. a petty cash voucher.

Explanation:

For controlling the inventory following documents are to be used i.e.

1.  Purchase order

2.  Vendor invoice

3. Receiving report

These three documents we called as an voucher package

But it does not involved the petty cash voucher

Therefore the correct option is c.

And, the same is to be considered

8 0
2 years ago
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