What is the PF for Lobster Thermidor?

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a

Citrus2011 [14]

Given Information:

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $2 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete the development?

Answer:

Yes, because the total loss would then be $3 million rather than $5 million. The most you should pay to complete the development would be $2 million.

Explanation:

Every product or service that is marketed or is related against, and competitive with, a product or service created or produced by Fiserv or manufactured or distributed. Competitive Product or Service

In the end demand for the product declines due to the exhaustion of supply and economies and new technologies and shifts in the preferences of the customer.

The projected benefit generated by the new product must be offset by the profits from expenses in the project appraisal.

5 0

3 years ago

Sheffield Company purchases $50,300 of raw materials on account, and it incurs $63,900 of factory labor costs. Supporting record

Yakvenalex [24]

Answer:

Work-in-process - Assembly Department $64,160 (debit)

Work-in-process - Finishing Department $38,080 (debit)

Overhead $102,240 (credit)

Explanation:

Assembly Department Costs Assignments

J1 : Raw Materials

Work -in-process $27,100 (debit)

Raw Materials (credit)

J2 : Labor

Work -in-process $40,100 (debit)

Salaries and Wages Payable $40,100 (credit)

J3 : Overheads

Work-in-process $64,160 (debit)

Overhead $64,160 (credit)

Finishing Department Costs Assignments

J1 : Raw Materials

Work -in-process $23,200 (debit)

Raw Materials $23,200 (credit)

J2 : Labor

Work -in-process $23,800 (debit)

Salaries and Wages Payable $23,800 (credit)

J3 : Overheads

Work-in-process $38,080 (debit)

Overhead $38,080 (credit)

Summary of assignment of overhead

Work-in-process - Assembly Department $64,160 (debit)

Work-in-process - Finishing Department $38,080 (debit)

Overhead $102,240 (credit)

3 0

3 years ago

Income Statement (in Millions of Dollars) Net sales $100.0 Cost of sales 60.0 Selling, general, and administrative expenses 20.0

frez [133]

Answer:

the balance sheet is missing:

Balance Sheet (In millions of Dollars)

ASSETS

Cash $6.0

Accounts Receivable 14.0

Average Inventory 12.0

Fixed Assets, net 40.0

TOTAL ASSETS $72.0

LIABILITIES AND EQUITY

Accounts Payable $10.0

Salaries and Benefits Payable 2.0

Other current Liabilities 10.0

Long-term debt 12.0

Equity 38.0

TOTAL LIABILITIES AND EQUITY $72.0

a. Determine the length of the inventory conversion period.

inventory conversion period = average inventory / (COGS/365) = 73 days

b. Determine the length of the receivables conversion period.

receivables conversion period = accounts receivables / (net sales/365) = 51.1 days

c. Determine the length of the operating cycle.

length of operating cycle = 73 + 51.1 = 124.1 days

d. Determine the length of the payables deferral period.

length of the payables deferral period = accounts payables / (COGS/365) = 60.83 days

e. Determine the length of the cash conversion cycle.

cash conversion cycle = 73 + 51.1 - 60.83 = 63.27 days

f. What is the meaning of the number you calculated in Part e?

How long does it take to turn inventories into cash, it is a measure of asset liquidity.

8 0

3 years ago

Norma Smith is the controller of Bramble Corporation and is responsible for the preparation of the year-end financial statements

melisa1 [442]

Answer:

Current liability refers to the short term obligations of the firm which need to be settled down within a period of one year or within a normal operating cycle.

(a) $0 would be reported as current liability, as it is not a current liability. It is a contingent liability.

(b) The amount of current liability is $192,900 because it is a liability of a firm to pay bonuses to the employees.

(c) The amount of current liability is as follows:

= $900,000 × 0.08 × (1/12)

= $6,000

Payment of interest on loan is a liability of the firm.

(d) $0 would be indicated in current liability, because provision for doubtful accounts is subtracted from the total accounts receivable to determine the net account receivables.

(e) Proposed dividend is a part of current liability and the amount of dividend to be shown as current liability is as follows:

= Dividend per share × No. of shares outstanding

= $3.50 per share × 41,810

= $146,335

(f) Customer advances is a current liability and the amount of customer advances to be reported in current liability is calculated as follows:

= Customer advances - Amount earned this year

= $193,100 - $57,900

= $135,200

6 0

3 years ago

Sheffield Corp. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Bud

FinnZ [79.3K]

Answer:

How much is the total budgeted variable selling and administrative expenses for October?

$17,150

Explanation:

Variable Cost Fixed Cost Total costs

Per Unit for 7,000 units

Sales commissions $0.60 $7,000 $11,200

Shipping $1.20 $8,400

Advertising $0.30 $2,100

Executive salaries $34,000 $34,000

Depreciation $8,000 $8,000

Other $0.35 $28,000 $30,450

TOTAL $2.45 $77,000 $94,150

How much is the total budgeted variable selling and administrative expenses for October?

total variable costs per unit = $2.45 x 7,000 units = $17,150

6 0

3 years ago