Answer please I need help

Manta Ray Company manufactures diving masks with a variable cost of $31. The masks sell for $40. Budgeted fixed manufacturing ov

riadik2000 [5.3K]

Answer:

When there is no change in the beginning and ending units of inventory i.e the units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

Explanation:

If we have 80,000 units produced and sold then the income under both methods will be the same.

Manta Ray Company

Income Statement Variable Costing

Sales $40*80,000= $ 3200,000

Variable Costs $ 31*80,000= $ 2480,000

Contribution Margin $ 720,000

Less Fixed Costs $ $712,800

Gross Profit $ 7200

Manta Ray Company

Income Statement Absorption Costing

Sales $40*80,000= $ 3200,000

Variable Costs $ 31*80,000= $ 2480,000

Fixed Costs $ $712,800

Gross Profit $ 7200

When there is no change in the beginning and ending units of inventory i.e the units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

If there is an increase in the inventory units ( ie. production is less than the Sales) the fixed manufacturing overhead cost is released from inventory and deducted from variable income.

Similarly when the inventory units decrease ( ie. production is more than the Sales) the fixed manufacturing overhead cost is deferred from inventory and added to variable income.

8 0

3 years ago

Consider the following two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.20. Stock B has an expected re

mina [271]

Answer: Stock B

Explanation:

Use CAPM to calculate the required returns of both stocks.

Stock A

Required return = Risk free rate + beta * ( Market return - risk free rate)

= 5% + 1.20 * (9% - 5%)

= 9.8%

Stock B

Required return = 5% + 1.8 * (9% - 5%)

= 12.2%

Both of them have Expected returns that are higher than their Required returns so both of them are good buys.

The better buy would be the one that has more expected value excess over required return.

Stock A excess = 10% - 9.8% = 0.2%

Stock B excess = 14% - 12.2% = 1.8%

<em>Stock B offers a higher excess and is the better buy. </em>

7 0

2 years ago

Rick, who is single, has been offered a position as a city landscape consultant. The position pays $141,800 in cash wages. Assum

Sliva [168]

Answer:

I used the 2020 standard deduction and income tax brackets to calculate the answer.

a. What is the amount of Rick’s after-tax compensation (ignore payroll taxes) and his income tax liability?

Rick's gross income $141,800

- standard deduction $12,400

taxable income $129,400

income taxes = (10% x $9,875) + (12% x $30,250) + (22% x $45,400) + (24% x $43,875) = $25,135.50

after tax income = $141,800 - $25,135.50 = $116,664.50

b. Suppose Rick receives a competing job offer of $102,500 in cash compensation and nontaxable (excluded) benefits worth $4,900.

Rick's gross income $102,500

- standard deduction $12,400

taxable income $90,100

income taxes = (10% x $9,875) + (12% x $30,250) + (22% x $45,400) + (24% x $4,575) = $15,703.50

after tax income = $102,500 - $15,703.50 + $4,900 = $91,696.50

5 0

3 years ago

Diversification works because:I. unsystematic risk exists.II. combining stocks into a portfolio reduces the standard deviation o

DaniilM [7]

Answer:

D) I and III only.

Explanation:

II is false because the standard deviation of each stock is an inner characteristic of the stock and cannot be affected by combining it with other stocks in an investment portfolio. I. is true because each stock risk answer to the sector risk and company risk essentially, and by having stock of different sectors and companies is expected that unsystematic risks as these are off-setted. By having a portfolio with wide not-correlated stocks is expected that the risk can be reduced dramatically.

4 0

3 years ago

Cindy's car wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes

Ivanshal [37]

The correct option is b. the firm's total cost $500.

Total cost:

Total fixed costs are the total of all recurring, fixed costs that a business incurs.

The variable and fixed expenses of providing commodities are combined to create a total using the total cost formula. The equation is:

Total cost = (Average fixed cost x average variable cost) × Number of units produced.

Cindy's Car Wash has average variable costs of $ $2$ and average fixed costs of $$3$ when it produces $100$ units of output (car washes).