Yesterday, Bob and Maria were not willing to trade $40 for book. Today, they are. What made the difference?

Omega Company has sales of $300,000 and cost of goods sold of $200,000. The cost of goods sold is a variable cost. The Company i

kiruha [24]

Answer:

A. the company's gross margin is $100,000, while its contribution margin is $60,000.

Explanation:

Under the gross margin, the net income would be

= Sales - cost of goods sold

= $300,000 - $200,000

= $100,000

Under the contribution margin, the net income would be

= Sales - cost of goods sold - variable operating expenses

= $300,000 - $200,000 - $40,000

= $60,000

Under the gross margin, no operating expenses would be considered whereas for contribution margin, only the variable operating expenses is considered

6 0

3 years ago

Excellent Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturin

Lady bird [3.3K]

Answer:

B. Money Managers is grossly under billed for the job, while other jobs will be unfairly over billed

Explanation:

The single overhead rate would be $ 0.07 per page

Overhead Rate = $ 840,000/ 12 million pages = 0.07 per page.

The other rates are

design changes rate = $ 120,000/300= $ 400 per design

Inspections rate = $ 80,000/8000= $ 10 per inspection

Setups rate = $ 640,000/5000= $ 128 per setup

Money managers will be under billed for the job as the overhead rates for other costs are higher than the single overhead rate which is $ 0.07 per page.

And if other overhead rates are used other jobs will be over billed.

Using a single overhead rate for 60,000 pages for Money Managers would mean 60,000 * $ 0.07 = $ 4200

Where as if the same job is billed using other overhead rates it would cost

Money Managers $ 6860 = $ 4000 + $ 2560 + $ 300

Design = $400 * 10 = $ 4000

Setups = $ 128 * 20 = $ 2560

Inspections $ 10 * 30 = $ 300

So it is under billed and other jobs over billed.

4 0

3 years ago

You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce

Alenkinab [10]

Answer:

10.18%

Explanation:

The computation of the WACC is shown below:

But before that following calculation is to be done

The value of debt is

= 14000 × $1,000 × 107%

= $14,980,000

The value of equity is

= 470,000 × $65

= $30,550,000

The value of preferred stock is

= 20,500 × $86

= $1,763,000

Now

value of total capital is

= $14,980,000 + $30,550,000 + $1,763,000

= $47,293,000

Now we find the cost of debt using excel function i.e.

= RATE(nper,pmt,pv,fv)) × 2

= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2

= 5.80%

Now

Cost of common stock is

= 5.2% + 1.16 × 7%

= 13.32%

cost of preferred stock is

= (100 × 4.1%) ÷ 86

= 4.77%

Now finally

WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock

= ($14,980,000 ÷ $47,293,000) × 5.80% × (1 - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%

= 10.18%

5 0

3 years ago

Bellingham Company produces a product that requires 6 standard direct labor hours per unit at a standard hourly rate of $22.00 p

amid [387]

Answer:

The correct answer for (a) is 12,144 ( Favorable), (b) is 26,400 ( Unfavorable), and (c) is 14,256 ( unfavorable).

Explanation:

According to the scenario, the computation of the given data are as follows:

(a) We can calculate the rate variance by using following formula:

Rate variance = Actual hours × ( Standard rate - Actual rate)

= 27,600 × ( $22 - $22.44)

= -$12,144 ( Favorable)

(b). We can calculate the time variance by using following formula:

Time variance = Standard rate × ( Standard hours - Actual hours)

= $22 × ( 6 × 4,800 - 27,600)

= 26,400 ( Unfavorable)

(c). We can calculate the cost variance by using following formula:

Cost variance = Time variance - rate variance

= 26,400 - 12,144

= 14,256 ( unfavorable)

5 0

3 years ago

Define direct advertising

Anon25 [30]

Answer:

Explanation:

Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as direct response marketing. By contrast, advertising is of a mass-message nature.

6 0

3 years ago