What fact or facts support a situation where trade is advantageous?

Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requi

alexdok [17]

Answer:

P1 $36,000

Q2 $54,000

B2 $90,000

Explanation:

For computing each ordering and receiving overhead assigned, first we have to calculate the price per order which is shown below:

= Total cost of purchase orders ÷ total purchase orders

where,

Total purchase orders = P1 purchase orders + Q2 purchase orders + R3 purchase orders

= 400 + 600 + 1,000

= 2,000 purchase orders

And, the Total cost of purchase orders is $180,000

Now put these values to the above formula

So, the price would equal to

= $180,000 ÷ 2,000 orders

= $90

Now we can compute easily.

For P1 = Purchase orders × price per order

= 400 × $90

= $36,000

For Q2 = Purchase orders × price per order

= 600 × $90

= $54,000

For R3 = Purchase orders × price per order

= 1,000 × $90

= $90,000

The given options are not correct

4 0

3 years ago

Covent Gardens Inc. is considering two financial plans for the coming year. Management expects sales to be $300,000, operating c

Dominik [7]

Answer:

Assets = $200,000

For Plan A

25% debt = 200,000 * 25% = 50,000

75% equity = 200,000 * 75% = 150,000

The debt will generate 8.8% interest expense. Interest expense = 50,000 * 8.8% = 4,400

Income for the expected project under Plan A

Sales revenue 300,00

Operating cost 265,000

EBIT 35,000

Interest expense 4,400

EBT 30,600

Income tax 10,710

Net income $19,890

Times interest earned = EBIT /interest expense = 35,000 / 4,400 = 7.95. So, it achieve the requirement of 4.5 or above.

ROE for plan A = Net income / Equity = 19,890/150,000 = 0,1326 = 13.26%

Under Plan B

We will take as much debt as we can until Times interest earned = 4.5

EBIT / interest expense = Times interest earned

35,000/Interest expense = 4.5

Interest expense = 35,000/4.5

Interest expense = 7.777,78

Net income = (EBIT - interest) x (1- tax-rate)

Net income = (35,000 - 7,777.78) x (1-35%)

Net income = 17.694,443

Interest expense = Debt * Rate

Debt = Interest expense / Rate

Debt = 7,777.78/0.088

Debt = 88.383,86

Asset = Debt + Equity

200,000 = 88,383.86 + Equity

Equity = 200,000 - 88,383.86 =

Equity = 111,616.14

ROE for Plan B = Net income/ Equity = 17,694.443 / 111,616.14 = 0,15852943 = 15.85%

So, we compare both ROE

Plan A = 13.26%

Plan B = 15.85%

Difference = 2.59%

So therefore, using the Plan B will increase the ROE for 2.59%

5 0

3 years ago

On average, it takes one packaging and shipping employee 15 minutes to prepare a package and label, independent of the number or

Cerrena [4.2K]

Question Completion:

Owl Company sells multiple products - very fragile hand carved stone owls. They use a time-driven ABC system. The company's products must be wrapped individually before shipping. The packaging and shipping department employs 12 people. Each person works 20 days per month on average. Employees in this department work an eight hour shift that includes a total of 75 minutes for breaks and a meal. The full compensation, including fringe benefits, for each packaging and shipping employee is $ 4,050 per month.

Answer:

Owl Company

The packaging and shipping cost assigned to Order 705, which has 40 items is:

= $127.50

Explanation:

a) Data and Calculations:

Number of people employed by the packaging and shipping department = 12

Working days per employee = 20 days per month on average

Shift per day = 8 hours

Minutes for breaks and a meal = 75 minutes per day

Total minutes spent working per month = (20 * 8 * 60) - (75 * 20) = 8,100

Salary per employee = $ 4,050 per month

Salary per minute = $0.50 ($4,050/8,100)

Minutes spent in preparing a package and label = 15 minutes

Minutes spent for bubble wrap and packaging = 6 minutes per item

Total Packaging and shipping cost = Total Minutes of labor used in Packaging (40 * 6 + 15) * Labor cost per minute

= 255 minutes * $0.50 per minute

= $127.50

8 0

3 years ago

Which of the following is true? A Debit cards offer the highest level of fraud protection. B Checks are the most widely accepted

kozerog [31]

The answer is C. You withdraw money from a bank account while using them.

8 0

3 years ago

Read 2 more answers

Exercise 9-1 Classifying liabilities LO C1 The following items appear on the balance sheet of a company with a one year operatin

nignag [31]

Answer:

1. Notes payable (due in 13 to 24 months) - L

Long term because period of payment is over a year.

2. Notes payable (due in 6 to 11 months). - C

Current because period of payment is under a year.

3. Notes payable (mature in five years). - L

Long term because it will mature after a period of a year.

4. Current portion of long-term debt. - C

Current because it deals with payment for the year.

5. Notes payable (due in 120 days). - C

Current as it matures in less than a year.

6. FUTA taxes payable - C

Taxes are for a single period making them current.

7. Accounts receivable - N

This is an asset not a liability

8. Sales taxes payable. - C

As this is this for the year, it is current.

9. Salaries payable. - C

For the period so they are a current liability.

10. Wages payable - C

Concern one period so are a current liability.

7 0

4 years ago