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dangina [55]
3 years ago
9

Cybernet Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. The company has budgeted

variable costs of $150 for each connector and fixed costs of $ 5,500 per month. Cybernet ​'s static budget predicted production and sales of 100 connectors in​ August, but the company actually produced and sold only 77 connectors at a total cost of $ 28,000. Cybernet Systems flexible budget variance for total costs is:_________
Business
1 answer:
Sophie [7]3 years ago
8 0

Answer:

$10,950 Unfavorable

Explanation:

For computation of flexible budget variance for total costs first we need to find out the standard cost which is shown below:-

Standard cost = (Sold connectors × budgeted variable costs) + Fixed costs per month

= (77 × $150) + $5,500

= $11,550 + $5,500

= $17,050

Flexible budget variance for total costs = Actual cost - Standard cost

= $28,000 - $17,050

= $10,950 Unfavorable

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Two investment opportunities are as follows:________. Alt A Alt B First Cost 200 100 Uniform annual benefit 32 27 End of useful
Talja [164]

Answer:

Since the 4.34 NPV of Alt A is greater than the 2.35 NPV of Alt B, it therefore implies that Alt A should be selected.

Explanation:

Note: The data in the question are merged together. They are therefore sorted before answering the question as follows:

                                                          Alt A              Alt B

First Cost                                           200                 100

Uniform annual benefit                       32                   27

End of useful life salvage value         20                    0

Useful life, in years                              10                     5

The explanation to the answer is now given as follows:

a. Calculation of NPV of Alt A

First Cost = 200

PV of uniform annual benefit = P * ((1 - (1 / (1 + r))^n) / r) ……………………. (2)

Where;

P = uniform annual benefit = 32

r = MACC = 10%, or 0.10

n = number of useful years = 10

Note: The formula for calculating the present value of ordinary annuity is being used here to calculate the Present Value (PV) of uniform annual benefit.

Substitute the values into equation (1) to have:

PV of uniform annual benefit = 32 * ((1 - (1 / (1 + 0.10))^10) / 0.10) = 32 * 6.14456710570468 = 196.63

PV of Salvage value = FV / (1 + r)^n ..................... (2)

Where;

FV = End of useful life salvage value = 20

r = MACC = 10%, or 0.10

n = number of useful years = 10

Note: The normal formula for calculating the present value (PV) is being used here to calculate the PV of Salvage value

Substitute the values into equation (2) to have:

PV of Salvage value = 20 / (1 + 0.10)^10 = 20 / 2.5937424601 = 7.71

Net present value (NPV) of Alt .A = PV of uniform annual benefit + PV of Salvage value - First cost = 196.63 + 7.71 - 200 = 4.34

b. Calculation of NPV of Alt B

First Cost = 100

PV of uniform annual benefit = P * ((1 - (1 / (1 + r))^n) / r) ……………………. (3)

Where;

P = uniform annual benefit = 27

r = MACC = 10%, or 0.10

n = number of useful years = 5

Note: The formula for calculating the present value of ordinary annuity is also being used here to calculate the Present Value (PV) of uniform annual benefit.

Substitute the values into equation (3) to have:

PV of uniform annual benefit = 27 * ((1 - (1 / (1 + 0.10))^5) / 0.10) = 27 * 3.79078676940845 = 102.35

NPV of Alt B = PV of uniform annual benefit - First cost = 102.35 – 100 = 2.35

c. Decision

Since the 4.34 NPV of Alt A is greater than the 2.35 NPV of Alt B, it therefore implies that Alt A should be selected.

6 0
3 years ago
"An investor buys $10,000 of a "regulated" mutual fund investing solely in municipal securities. Which statement is TRUE regardi
kogti [31]

Answer: D. The investor has no tax liability on distributions received, and the investment company has no tax liability on retained income

Explanation:

Municipal Securities are exempt of Federal taxes and this is what makes them most attractive. An investor in a mutual fund which invests solely in municipal securities will therefore not have any tax liability because their returns would be based on securities that are federally tax exempt. The same goes for any income the Mutual fund intends to retain.

7 0
3 years ago
Operations management is the discipline that manages the day-to-day and tactical activity of the entire value added chain, which
makvit [3.9K]

Answer:

Operations Management:

a) true

Explanation:

Operations management ensures that the organization achieves its objectives by coordinating processes and executing them in the conversion of organizational resources into goods and services which will enable the organization to maximize profits.  It is the core of the organizational hierarchy and plays important tactical roles that deliver results.  It translates the strategic policies of top management into day-to-day actionable and deliverable processes to meet external needs (customers'), thereby generating income for the owners of the business.  Without operations management, a business remains an idea that cannot be implemented.

6 0
3 years ago
All interest rates in the economy are set by the federal reserve. true or false
aivan3 [116]

Answer:

False

Explanation:

Most interest rates in the economy are not set by federal reserve. For example, banks decide what interests to pay different kind of deposits and charge loans of different risks on their own (with consideration for competition and profitability).

What the Fed does is set important rates (discount rate and funds rate) that influence other interest rates in the economy.

6 0
3 years ago
If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is ______________.
Jobisdone [24]

Answer:

The amount of cash received from the sale is $1,027,500

Explanation:

In this scenario we first have to know the number of bonds issued and then multiply it by the bond price which is given to us in the question.

The bonds have a total face value of 1,000,000 and one bond is issued at 102.75 which means that the face value of a single bond is 100.

Now in order to find the number of bonds issued we will divide the total face value by the face value of a single bond.

1,000,000/100=10,000.

10,000 bonds were issued at $ 102.75 now in order to calculate the total cash received we will multiply the number of bonds with the issue price.

10,000*102.75=1,027,500

4 0
3 years ago
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