Answer:
From the attached excel file, total cost allocated are as follows:
Deparment A = $99,600
Department B = $73,600
Department C = $51,600
Common cost = $57,600
Explanation:
Note: See the attached excel for the schedule assigning the fixed expenses to the three departments.
In the attached excel file, the following formulae are used to allocate costs to each department:
Depreciation on equipment (based on average cost of equipment) = Depreciation on equipment * (Average cost of equipment of a department / Total average cost of equipment of the three departments)
Real estate taxes (based on Square feet of floor space) = Real estate taxes * (Square feet of floor space of a department / Total square feet of floor space of the three departments)
Personal property taxes: This is a common cost. It cannot therefore be allocated.
Personnel department expenses (based on payroll) = Personnel department expenses * (Payroll of a department / Payroll of the three departments)
In this item, we let the number of tickets sold to the adults as x. With this, we can let the number of tickets sold to students with y.
In this item, we are given that the sum of the number of students and adults is equal to 600. Further, we are also given that the difference is 150. The system of linear equation that would allow us to solve this item is,
x + y = 600
x - y = 150
Adding up the two equations will give us,
2x = 750
Dividing by 2,
x = 375
Substituting this value to the first equation,
375 + y = 600
y = 225
Therefore, there are 375 and 225 number of tickets sold to adults and students, respectively.
Answer:
B) Both bonds would decline in price, but the 10-year bond would have the greater percentage decline in price.
Explanation:
Since the 10-year bond has longer-maturity, the prices of both bonds cannot either increase or decrease. Therefore, answer choice A and C cannot be the answers. Again, as both the bonds YTM increases by the same amount, one bond's price cannot affect the other bond's price. So, answer choice D is incorrect. As we know that longer-term and lower coupon rate bond has the sensitivity issue that the interest rate might increase, 10-year bond's price will decline more. Therefore, B is the correct option.
Answer:
1. 2,300 units
2. $36,800
3. $39,200
Explanation:
The computation of company’s break-even point in unit sales is shown below:-
Break Even Point (Unit Sales) = Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ (Sales Price Per Unit - Variable Expense Per Unit)
= $9,200 ÷ ($16 - $12)
= $9,200 ÷ $4
= 2,300 units
2. The computation of break-even point in dollar sales is shown below:-
Break Even Point (Dollar Sales) = Break Even Units × Selling Price Per Unit
= $2,300 × $16
= $36,800
Contribution Margin Ratio = (Sales Price Per Unit - Variable Expense Per Unit ) ÷ Sales Per Unit × 100)
= ($16 - $12) ÷ $16 × 100
= $4 ÷ $16 × 100
= 25%
Break Even Sales = Fixed Expenses ÷ Contribution Margin Ratio
= $9,200 ÷ 25%
= $36,800
3. The computation of new break-even point in unit sales is shown below:-
Break Even Point (Unit Sales) = Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ (Sales Price Per Unit - Variable Expense Per Unit)
= ($9,200 + $600) ÷ ($16 - $12)
= $9,800 ÷ $4
= 2,450 units
Break Even Point (Dollar Sales) = Break Even Units × Selling Price Per Unit
= 2,450 units × $16
= $39,200
Answer:
C) Z is a substitute for input X in the production of Y.
Explanation:
Goods are substitutes if they can be used in place of each another. For example, pen and pencil can be considered as substitute.
If the price of a good decreases, the demand for that good increases and the demand for the subsituite falls. X and Z are substitutes
Complements are goods that are consumed together e.g. bread and butter.
Inputs are goods used in the production of output. If the price of input increases, the price of the output increases. Therefore, X is an input in the production of Y.
Since X and Z are substitutes, and X is an input for Y.
I hope my answer helps you