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3 years ago

EB6.

Business

1 answer:

Mrrafil [7]3 years ago

5 0

Answer:

Total cost to account for

Material Conversion

$ $

Beginning inventory 23,432 18,450

Cost added 41,392 85,692

Total cost to account for 64,824 104,142

Explanation:

Total cost to account for is the aggregate of cost of beginning inventory and cost added during the period. Conversion cost is the sum of labour and overhead. Thus, the cost added of conversion is $23,192 plus $62,500, which is equal to $85,692.

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Steve owns Barb, Inc. and has grown the business over the last 15 years and is the sole owner. He decides to sell 40 percent of

Mamont248 [21]

Answer:

a. Steve will not have a capital gain in Year 1 for tax purposes.

Explanation:

Since Steve (the owner of Barb) sold his stocks to an ESOP (employee stock ownership plan), then he will be able to avoid capital gains taxes at least for the first year. ESOPs are qualified retirement plans and when they invest in stocks of the same sponsoring company, the transaction is not taxed if the seller reinvests (buys other stocks). As long as ESOP holds at least 30% of the company's stocks, then Steve can defer his taxes.

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3 years ago

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fiasKO [112]

Answer:

WHY FAST?

Explanation:

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3 years ago

Murphy company produces flash drives for computers, which it sells for $20 each. each flash drive costs $8 of variable costs to

Maurinko [17]

We can find the increase in operating income for each $ 1,000 increase in revenue per month by finding the contribution margin ratio and the multiplying it with the increase operating income of $ 1,000 each.

The formula to find the contribution margin ratio is :-

Contribution margin ratio = Contribution margin per unit / Selling price per unit

= 12 / 20 = 60%

The increase in operating income = Contribution margin ratio * Revenue

= 60 % * 1,000

= $ 600

The calculations are shown below :-

Selling price per unit = $ 20

Variable cost per unit = $ 8

Contribution margin per unit = Selling price per unit - Variable cost per unit

= $ 20 - $ 8 = $ 12

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3 years ago

urk Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows: End

Brums [2.3K]

Answer:

Turk should purchase Machine B

Explanation:

<u>Our first step</u> will be to multiply each cashflow by the factor.

Then we will add them to get the present value of the cash flow

$\left[\begin{array}{cccc}-&A&factor&Present \: Value\\Year \: 1&5,000&0.8696&4,348\\Year \: 2&4,000&0.7561&3,024.4\\Year \: 3&2,000&0.6567&1,313.4\\Total&11000&-&8,685.8\\\end{array}\right]$

Then we subtract the machine cost:

8,685.8 - 9,000 = -314.2 This Machine has a negative value. It is not convinient to purchase this machine.

$\left[\begin{array}{cccc}-&B&factor&Present \: Value\\Year \: 1&1,000&0.8696&869.6\\Year \: 2&2,000&0.7561&1,512.2\\Year \: 3&11,000&0.6567&7,223.7\\Total&14,000&-&9,605.5\\\end{array}\right]$

9,605.5 - 9,000 = 605.5 This machine NPV is positive it is convient.

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3 years ago

Suppose Natasha currently makes $50,000 per year working as a manager at a cable TV company. She then develops two possible entr

Vilka [71]

Answer:

It will be better to pursue the soap business as it provide a 20,000 economic gain.

Explanation:

currently Natasha wages: $50,000

soap business:

sales revenue 465,000 - cost = 395,000 = 70,000 accounting profit

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Internet opportunity as it will compete with the local TV company shw currently works, most probably will be fired or quit the job.

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It will be better to pursue the soap business as it provide a 20,000 economic gain.

4 0

3 years ago