4. Which of the following is an example of ethical behavior by an inspector?

Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual ﬁxed cost is$10,000 for t

Marianna [84]

Answer:

revenue we need to take in before breaking even = $1,250 × 8 = $10,000

Break-even units = 9

Explanation:

Data provided in the question:

Annual fixed cost = $10,000

Direct labor cost = $3.50 per package

Material cost = $4.50 per package

Selling price = $1,250

Now,

let the break-even units be 'x'

Thus,

total cost = $10,000 + $3.50x + $4.50x

or

total cost = $10,000 + $8x

also,

total revenue = $1,250x

now,

at break-even

total cost = Total revenue

or

$10,000 + $8x = $1,250x

or

$1250x - $8x = $10,000

or

$1,242x = $10,000

or

x = 8.05 ≈ 9 packages

at 9 packages, we have break-even revenue

Therefore,

revenue we need to take in before breaking even = $1,250 × 8 = $10,000

4 0

3 years ago

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

ludmilkaskok [199]

Answer:

Decrease by $132,100

Explanation:

Computation of the given data are as follow:-

We can calculate the Operating Income by using following formula:-

Fixed Cost = Fixed Cost * Dropped Rate

= $193,000 * 30/100

= $57,900

So, Operating Income = Sales - Variable Cost - Fixed Cost

= $,1050,000 - $860,000 - $57,900

= $132,100

According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.

8 0

3 years ago

Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management pl

LUCKY_DIMON [66]

Answer:

Icarus total value: 478,459,899

Explanation:

We will calcualte the WACC to know the cost of capital for the company:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.14

Equity weight 0.79

Kd 0.07

Debt Weight 0.21

t 0.4

$WACC = 0.14(0.79) + 0.07(1-0.4)(0.21)$

WACC 11.94200%

Now we calcualte the value of the company:

$\frac{FCF}{return-growth} = Intrinsic \: Value$

59,000,000

38,000,000 Free Cash flow ofthe Firm

$\frac{38,000,000}{0.11942-0.04} = Intrinsic \: Value$

$\frac{38,000,000}{0,07942} = Intrinsic \: Value$

Value: 478.468.899

7 0

3 years ago

Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31

Bogdan [553]

Answer:

c. $390,000

Explanation:

WIP Beg 275,000

DM X

DL 450,000

FO 135,000 (30% of labor cost)

Cost added during the period 975,000

-FG 1,030,000

WIP ending 220,000

$$$Beginning WIP + added = Ending WIP+ COGM$

275,000 + added = 220,000 + 1,030,000

added = 220,000 + 1,030,000 - 275,000 = 975,000

cost added during the period:

DM + DL + FO

DM + 450,000 + 135,000 = 975,000

DM = 975,000 - 450,000 - 135,000 = 390,000

7 0

3 years ago

Alvin is a self-employed sound technician who reports on the cash method and calendar year. Alvin has a shop in Austin, Texas, b

andrezito [222]

Answer:

Business expense is $25,000

Explanation:

Business related cost incurred by Alvin should be a proportion of the total cost. We need to estimate business related percentage of his activities and allocated business expense appropriately.

Alvin used an estimated 6,000 miles on his truck for personal use out of a total of 36,000 miles.

The percentage of business related miles= (36,000-6,000)/36,000= 0.833333

Total expenses= Cost of lease + Cost of gas, oil, and repairs

Total cost= 18,000+ 12,000= $30,000

Business expense= Percent of business related cost* Total cost

Business expense= 0.8333333* 30,000

Business expense= $24,999.99~ $25,000

7 0

3 years ago