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2 years ago

Production Budget

Business

1 answer:

mihalych1998 [28]2 years ago

4 0

Answer:

Pasadena Candle Inc.

Production Budget

For the Year Ending December 31

Total units available:

Project sales 800,000

Desired ending inventory 20,000 820,000

Beginning inventory 35,000

Total units to be produced 785,000

Explanation:

a) Data and Calculations:

Projected sales of candles for the year = 800,000 candles

January 1 inventory = 35,000 units

Desired December 31 inventory = 20,000 units

Units available for sale = 820,000 (800,000 + 20,000)

Production for the year = 785,000 (820,000 - 35,000)

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Olive Corporation has two divisions, Pressing and Extracting. The company's primary product is Lavender Oil. Each division's cos

Alex777 [14]

Answer:

$15,000

Explanation:

Operating income is the difference between the net sales or revenue generated by a business and the operating expenses of the business.

The operating expenses of the business may be classified into 2 groups namely the fixed and variable costs.

The total operating cost of the business

= ( $9 + $6 + $28 + $32) per barrel

= $75

operating income of both divisions

= 200 ( $150 - $75)

= 200 * $75

= $15,000

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3 years ago

In your opinion, discuss of the importance of having a business website. And also their advantage and disadvantage.

azamat

Answer:

The first and perhaps most obvious advantage of a business website is the potential for reaching a wider audience. The internet is used by literally millions of people, all of them are looking for something and some of them might be looking for you!

Building a website for your business will mean you could potentially reach these otherwise unreachable customers. Your business might be local, but you might have the potential to sell your products or services to a wider market, whether it be people in the next town, the nation as a whole or even the international market. Data shows that internet shopping is still on the rise, so taking your business online will potentially allow you to take advantage of the growth and expand your business. Even if you have no intention of using a business website to sell, you still might want to let customers know about your business. People commonly research businesses online before actually visiting the business location. So having a well designed website will help encourage them to come and visit you or be able to find your business in the first place.

Disadvantages of a Business Website

There are a few disadvantages of having a website for your business. Generally though, they are outweighed by numerous advantages.

8 0

2 years ago

YIELD TO MATURITY Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1,00

Sloan [31]

Answer:

1) 13.42%

2) 6.56%

Explanation:

a. Given:

Par value of bonds (FV) = $1,000

Coupon rate = 10%

Coupon payment (pmt) = 0.1 × 1,000 = $100

Present value of bond = $865

Maturity period (nper) = 6

Use spreadsheet function =rate(nper,pmt,-PV,FV)

Yield to maturity when price of bond is $865 is 13.42%

2) If PV is $1166, then yield to maturity is 6.56%

If interest rate is 12%

FV is $1,000

Pmt is $100

nper = 6

The use spreadsheet function =PV(rate,nper,pmt,FV) to compute present value of bond.

Present value of bond is $917.77

Since present value of bond is more high, one can pay $865 for each bond.

5 0

2 years ago

Select all that apply When supplies are purchased on credit it means that: (Check all that apply.) Multiple select question. the

kkurt [141]

Answer:

the business will pay for the supplies at a later time

a liability has been incurred.

the Accounts Payable account will be increased.

Explanation:

In the case when the supplies are purchased on credit, the following entry should be passed

Supplies Dr XXXX

To Account payable XXXX

(Being supplies purchased on credit is recorded)

here supplies is debited as it increased the asset and credited the account payable as it also increased the liabilities

So the following options should be chosen

1. The business would pay at a later time

2. Liability is incurred

2. The account payable is increased

8 0

3 years ago

Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,400

Sav [38]

Answer:

The correct answer is = $64,409,960

However, if we assume there are no Differed Tax, the answer will be

$47,371, 400

Explanation:

OCF stands for Operating Cash Flow.

The basic formula for Operation Cash Flow is =

Net Income + Non-Cash Expenses - Increase in working capital

Net Income:

Old Boards = 1,520 x 24,900 = $37,848,000

New Boards = 1500 x 26,400 = $39,600,000

Total Income = $77,448,000

Non-Cash Expenses:

Depreciation = 1.875 million + 2.9 million = $4,775,000

(Assumption) Differed income tax = 22% of Sales = $17,038,560

Total Non-Cash Expense = $21,813,560

Increase in working Capital:

45% of Sales

i.e. $34,851,600

Hence:

77,448,000 + 21,81 3,560- 34,851,600

= $64,409,960

3 0

3 years ago