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3 years ago

A static budget is one that shows estimated revenues and costs at multiple activity levels. true or false

Business

1 answer:

maxonik [38]3 years ago

3 0

Answer:

A static budget is one that shows estimated revenues and costs at multiple activity levels.

True

Which of the following is not typically found in a decentralized organization?

Asset center

Explanation:

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Why might a construction company build a high-rise building with steel alloy beams instead of pure iron beams?

Genrish500 [490]

Answer: Steel alloy beams are harder and stronger than pure iron beams. A small amount of carbon makes the steel stronger.

Steel is a well known and commonly used alloy (a mixture of several metals) to build a high rise building because it can be around 1000 times stronger than iron in its pure form. It is made from iron and a small amount of carbon (usually between 0.2% and 2.0% by weight) that makes it stronger and lighter.

Pure iron beams, on the other hand, has the bigger quantity of carbon that makes its structure weak and fragile, thus not fit for high rise building.

8 0

3 years ago

Angela believes that Beamer Corporation’s stock will drop in value. She borrows 150 shares from a brokerage firm when the stock

belka [17]

Given:

Total number of shares = 150

Selling price = $42

Purchase price = $27

Find:

Angela’s profit on investment = ?

Computation of Angela’s profit on investment:

Angela’s profit on investment = Total sales value - Total purchase value

Angela’s profit on investment = (150 x $42) - (150 x $27)

Angela’s profit on investment = $6,300 - $4,050

Angela’s profit on investment = $2,250

Therefore, Angela’s profit on the selling of investment is $2,250.

3 0

3 years ago

g You own shares of a company that reported after-tax earnings of $29 million and has issued 2 million shares of stock. The comp

musickatia [10]

Answer: 0.35

Explanation:

The Price to Earnings ratio is used to value companies and is calculated by dividing the company's stock price by its earnings per share.

Earnings per share = 29,000,000/2,000,000 shares

= $14.50

PE ratio = Share price / Earnings per share

= 5.09/14.50

= 0.35

4 0

3 years ago

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Paladinen [302]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is $163,000.

Explanation:

The contribution margin is the sales minus total variable cost. This can be calculated as follows:

Units of books sold = Sales / Selling price per book = $900,000 / $60 = 15,000

Variable selling expenses = Units of books sold * Variable selling expenses per book = 15,000 * $5 = $75,000

Variable administrative expenses = Sales * 3% = $900,000 * 3% = $27,000

Total variable cost = Cost of goods sold + Variable selling expenses + Variable administrative expenses = $635,000 + $75,000 + $27,000 = $737,000

Contribution margin = Sales - Total variable cost = $900,000 - $737,000 = $163,000

Therefore, the contribution margin for Sam's Bookstore for the first quarter is $163,000.

5 0

3 years ago

Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new w

rusak2 [61]

Answer:

What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)

$2,820.62

and monthly payments (12 per year)?

$531.13

Compare the annual cash outflows of the two payments.

total semiannual payments per year = $2,820.62 x 2 = $5,641.24
total monthly payments per year = $531.13 x 12 = $6,373.56

Why does the monthly payment plan have less total cash outflow each year?

The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.

What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)?

$2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)

Explanation:

cabinet cost $25,000

interest rate 10%

we can use the present value of an annuity formula to determine the monthly payment:

present value = $25,000

PV annuity factor (5%, 12 periods) = 8.86325

payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62

present value = $25,000

PV annuity factor (0.8333%, 60 periods) = 47.06973

payment = PV / annuity factor = $25,000 / 47.06973 = $531.13

5 0

3 years ago