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Natali [406]
3 years ago
9

Timothy Company has invested $1,000,000 in a plant to make vending machines. The target operating income desired from the plant

is $150,000 annually. The company plans annual sales of 1,500 vending machines at a selling price of $1,000 each. What is the markup percentage as a percentage of cost for Timothy Company?
Business
1 answer:
Ne4ueva [31]3 years ago
8 0

Answer:

11%

Explanation:

Calculation to determine the markup percentage as a percentage of cost for Timothy Company

First step is to calculate the Sales revenue

Sales revenue = 1,500 units × $1,000

Sales revenue = $1,500,000

Now let calculate the Markup percentage

Markup percentage = $150,000 / ($1,500,000 - $150,000)

Markup percentage = $150,000/1,350,000

Markup percentage= 11%

Therefore Markup percentage is 11%

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Providing an analysis for a company regarding adding a particular product line, retracting sales markets, or dealing with risks
Irina18 [472]

Answer:

The answer is true.

Explanation:

The managerial accounting must do:

-planning and desition support.

For example, fully absorbed and incremental costing, adaptive operation and cost-based planning, product process channel and customer strategic adaptatios, enterprise optimization.

-Performance evaluation and analysis.

Assessment of current strategy and plans, integrated cost operational performance measures, profitability reporting, process analysis.

4 0
4 years ago
An important difference between accounting and other 4 functions, such as marketing and management, is that
Stolb23 [73]
Well, since there's no options

Accounting : providing information regarding all financial aspects in the company

Marketing : determining kinds strategies to introduce  company's products to the market

Management : Organizing all part of the company in order to reach company's goal
3 0
3 years ago
If a firm's forecasted sales are $280,000 and its break-even sales are $198,800, the margin of safety (in dollars) is:
Vinvika [58]

280000 - 198800 = 81200
5 0
4 years ago
In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depos
Dafna1 [17]

Answer:

The correct answer is option D.

Explanation:

In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depositors from​ $100,000 per account to​ $250,000 per account.

During the financial crisis, there was a sense of panic. The regulators were concerned that depositors would expect their banks to crash and would fear that they may lose their money. The regulators expect the depositors to pull money back from their banks. The money supply will get reduced further. This will further reduce the money with banks. This could lead to even healthy banks to fail.

Raising the insurance limit would reassure depositors that their money was safe in banks and prevent a bank panic. This will further help to stabilize the financial system.

4 0
3 years ago
You observe the following term structure: Effective Annual YTM 1-year zero-coupon bond 5.2 % 2-year zero-coupon bond 5.3 3-year
Lisa [10]

Answer:

Explanation:

a. If you believe that the term structure next year will be the same as today’s, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.

b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond

The return on one year bond is = 5.2%

The price of 4 year bond today

=\frac{ 1000}{ (1.055)^4}

Price of 4 year bond today = 807.22

If yield curves is unchanged, the bond will have 3-year maturity and price will be

=\frac{  1000}{(1.054)^3}

If yield curves is unchanged, the bond will have 3-year maturity and price will be = 854.04

Return

=\frac{ (854.04 - 807.22)}{807.22}

Return = 5.8%

The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)

8 0
3 years ago
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