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4 years ago

To which function of management is cvp analysis most applicable?

1 answer:

6 0

Planning function.

Management uses the CVP analysis to determine how changes in costs and volumes affect the company's profitability. They need to perform this analysis in planning their production schedule and levels to optimize value for the company. The planning function will perform this CVP analysis to inform production managers and other executives about how the product costs and volumes affect the levels of net operating income.

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Robert is a single taxpayer who has AGI of $145,000 in 2019; his taxable income is $122,000. What is his federal tax liability f

PolarNik [594]

Answer:

His tax liability for 2019 (due April 2020) is $23,359.50

Explanation:

Since Robert s a single filer, he falls under the fourth tax bracket: income between $84,201 to $160,725. His marginal tax rate is 24%, and his total taxes due are as following:

tax rate earnings taxes due

10% $0 – $9,875 $987,50

12% $9,875 – $40,125 $3,630

22% $40,126 – $85,525 $9,988

24% $85,526 – $122,000 $8,754

total $23,359.50

*Option C is the closest one, but it used the 2018 tax brackets, not the 2019.

7 0

4 years ago

A company had the following cash flows for the year:

BaLLatris [955]

Answer:

$35,000 (inflow)

Explanation:

Net investing cash flows is computed as follows;

Inflow:

Issued common stock $75,000

Sold equipment 40,000

Total $115,000

Less: outflow

Purchased land $60,000

Paid dividends 20,000

Total outflow $80,000

——————

Net investing cash flows $35,000

*positive cash flows (inflow is greater than outflow) will increase the amount cash of the company

*proceeds from the bank classified as financing activity

*paid employees and sold services to customers are fall under operating activities

3 0

3 years ago

Maldovar Company is considering purchasing a new machine to replace a machine purchased one year ago that is not achieving the e

weeeeeb [17]

Answer:

c. Purchase cost of existing machine

Explanation:

Relevant costs are the incremental costs that can be avoided by avoiding the functional activity with which the costs are associated.

Maintenance costs are relevant as they are directly linked to the use of machinery and as such are incremental with the use. The same is the case with the maintenance costs of the existing machine as they are avoidable if the new machine is purchased.

Expected cost savings would be incremental with the improved new machine. These cost savings thus are relevant.

Resale value of existing machine are also relevant as these would contribute towards the purchase of new machine.

The purchase price of existing machine is irrelevant as the machine cost has already been paid and regardless of purchasing the new machine or not, this cost is not a part of any calculations.

Hope that helps.

4 0

3 years ago

On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful accounts: Account

slava [35]

Answer:

1. $372,150

2. $650

Explanation:

1. Smith's preadjustment balance in accounts receivable on December 31, 2019:

= Accounts Receivable on January 1, 2019 + Credit sales - Collected accounts receivable - uncollectible accounts receivable

= $386,000 + $2,895,000 - $2,905,000 - $3,850

= $372,150

2. Smith's preadjustment balance in allowance for doubtful accounts on December 31, 2019:

= Allowance for Doubtful Accounts (a credit balance) on January 1, 2019 - uncollectible accounts receivable

= $4,500 - $3,850

= $650

3. The Journal entry is as follows:

Bad Debt Expense ($3,800 - $650) A/c Dr. $3,150

To Allowance for Doubtful Accounts $3,150

(Record adjusting entry for bad debt expense estimate)

5 0

3 years ago

Job HE-65 at Wilson Manufacturing Inc. required $300 of direct materials and 15 direct labor hours at $10 per hour. The company’

Oxana [17]

Answer:

Job HE-65 total cost 900 dollars

Explanation:

predeterminated overhead rate:

expected cost / expected driver

900,000 / 30,000 = $30

Each labor hour generates $30 dollars of overhead according to our expectation

Now we solve for the cost of job HE-65

materials 300

labor 15 hours x $10 = 150

and overhead 15 hours x $30 each = 450

total cost 300 + 150 + 450 0 900

3 0

4 years ago

Read 2 more answers