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2 years ago

Andrew Company has predicted the following costs for this year for 50,000 units:

Business

1 answer:

krok68 [10]2 years ago

5 0

Answer:

Explanation:

textAndrew Company has predicted the following costs for this year for 50,000 units:ManufacturingSelling and AdministrativeVariable$200,000$ 50,000Fixed300,000150,000Total$500,000$200,000What is the initial selling price needed to obtain a target profit of $25,000 using the variable costmarkup method?Select one:A. $14.70B. $ 5.00C. $ 8.00D. $ 4.50FeedbackRationale

:($300,000 + $150,000 + $35,000) / ($200,000 + $50,000) = 194%

markupVariable cost per unit = ($200,000 + $50,000) / 50,000 = $5.00 × 1.94 = $9.70 markup

Cost plus markup = $5.00 + $9.70 = $14.70

OR(VC $250,000 + FC $450,000 + Profit$35,000) / 50,000 = $14.70The correct answer is: $14.70

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Professional etiquette suggests you should send a(n) ____ to each person who agrees to meet with you in support of your career e

olchik [2.2K]

Answer:

handwritten thank-you note

Explanation:

Professional etiquette can be regarded as ways of being able to live comfortably when with people and making them comfortable when they are arround you. They are general

guidelines as well as behavior that are needed in professional setting. It should be noted that Professional etiquette suggests you should send a

handwritten thank-you note to each person who agrees to meet with you in support of your career exploration.

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3 years ago

Jacoby Company received an offer from an exporter for 25,400 units of product at $18 per unit. The acceptance of the offer will

OlgaM077 [116]

Answer:

Differential income from the special order= $127,000

Explanation:

A company should accept a special order where the order generates additional contribution. i.e where the special order sales exceeds all relevant cost.

The relevant cost for decision to accept the special order are

I Incremental Revenue from the special order

2. incremental variable cost

Contribution per unit = 18-13=5

Total contribution from special order = contribution per unit × units

= 5× 25,400=$127,000

Differential income from the special order= $127,000

Note that whether or not the special order is accepted the fixed manufacturing and fixed operating expenses of would be incurred either way. Therefore , they are not relevant for the decision

6 0

2 years ago

1 . Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpe

Dmitrij [34]

Answer:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

the bank offers 1.6%

in the alternative scenario it offers 1.067%

Explanation:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

The perpetuity is an annuity in which time tends to infinity, to be qualified as an annuity the cash payment must be regular.

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

As state above the perpetuinty is an annuity, the annuities return the present value of the expcted future cash flow.

Given the annuity formula

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

if times tends to infinity then the expression:

$\lim_{n \to \infty} (1+r)^{-n} = 1$

Nexti n the annuity formula we got:

$C \times \frac{1-1 }{rate}= PV\\$

So we end up with C / rate = PV

which s the perpetuity formula

800/50000 = 0.016 = 1.6%

800/75000 = 0.0106667 = 1.067%

7 0

3 years ago

During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of

iren2701 [21]

Answer:

A. Increase liabilities (Accounts payable) by $337.8 million

Explanation:

The journal entry will be: Inventory (Credit - Increased) 337,860,000 and Accounts payable (Debit - Increased) 337,860,000.

The company must recognize the increase in the Inventory and the medium of payment (Accounts payable).

B is false because this operationn can also be a decrease in cash, but the amount in the operation is too high for this payment medium.

C is false because, the inventory is not sold, and COSG will be increased when the goods are sold.

D is also false because the inventory is increasing, not decreasing.

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2 years ago

Ian Burns is the new payroll accountant for ECG Marketing. Certain employees have been requesting changes in classification from

Nookie1986 [14]

Solution and explanation:

The Fair Labor Standards Act defines three tests that an employee must be eligible to be considered under the 'Exempt' category.

These include the following :

1.Salary Level Test : Employee must be paid minimum of $23,600 per year ($455 per week) to be considered Exempt.

2.Salary Basis Test : The representative must be paid on a Salary Basis, a fixed ensured least installment must be made for any workweek for the playing out any work. This would be dependent upon admissible and impermissible derivations that decide the premise of installment. Special cases to this standard are School educators, Lawyers, Doctors, and some others.

3.Duties Test : The actual jobs performed by the employee must be within the qualified exempt category of high level work. These are broadly classified as Executive, Professional; and Administrative job duties.

Thus, following out of the above will be considered for the purpose of classification to Exempt employees category:

- Reimbursement of board, lodging, facilities availed

Whether these form part of the compensation structure and the gross payments fall within the ambit of Levels test.

- Compensation such as discretionary bonus

These to be considered as part of Salary and to check whether the payments fall within the above stated levels and also the Basis of these payments whether on continuing salary or otherwise.

-Duties

The actual duties performed to be checked whether these fall within the exempt category.

Thus, the above stated three tests must be cumulatively passed in order to be eligible to classified as 'Exempt' Employee.

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3 years ago