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3 years ago

Consider the following budgeted data for the client case of Carla's accounting firm. The client wants a fixed-price quotation.

Business

1 answer:

Evgesh-ka [11]3 years ago

3 0

Answer:

See below

Explanation:

Budgeted total cost is computed as;

Direct support labor $10,200

Direct professional labor $20,700

Fringe benefit for direct labor $13,500

Overhead allocation $30,900

Budgeted total cost $75,300

Therefore, budgeted total cost for the client is $75,300

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Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B wi

n200080 [17]

Answer:

The firm will not sell any bundle, the amount of bundle to be sold will be zero.

Explanation

Solution

Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.

Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude that their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.

However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a Bundle.

We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.

Therefore, any bundle will not be sold by firm. the amount of Bundle sold will be known as a zero Bundle

5 0

3 years ago

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000,

Tanya [424]

Answer:

a. Year 0 Net Cash Flows = $984,000

b. We have:

Year 1 net operating cash flows = $306,159

Year 2 net operating cash flows = $332,986

Year 3 net operating cash flows = $261,479

c. Additional Year 3- cash flow = $504,877

d. The machine should be purchased.

Explanation:

We start by first calculating the following:

Initial Investment = Base Price + Modification Cost = $940,000 + $25,000 = $965,000

Useful Life = 3 years

Depreciation in Year 1 = 0.3333 * $965,000 = $321,634.50

Depreciation in Year 2 = 0.4445 * $965,000 = $428,942.50

Depreciation in Year 3 = 0.1481 * $965,000 = $142,916.50

Book Value at the end of Year 3 = $965,000 - $321,634.50 - $428,942.50 - $142,916.50 = $71,506.50

After-tax Salvage Value = Salvage Value - (Salvage Value - Book Value) * Marginal tax rate = $624,000 – ($624,000 - $71,506.50) * 25% = $485,877

Initial Investment in NWC = $19,000

We can now proceed as follows:

a. What is the Year 0 net cash flow?

Year 0 Net Cash Flows = Initial Investment + Initial Investment in NWC = $965,000 + $19,000 = $984,000

b. What are the net operating cash flows in Years 1, 2, 3?

Year 1 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 1) = ($301,000 * (1 – 0.25)) + (0.25 * $321,634.50) = $306,159

Year 2 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 2) = ($301,000 * (1 – 0.25)) + (0.25 * $428,942.50) = $332,986

Year 3 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 3) = ($301,000 * (1 – 0.25)) + (0.25 * $142,916.50) = $261,479

c. What is the additional Year 3- cash flow (i.e. after tax salvage and the return of working capital)?

Additional Year 3- cash flow = NWC recovered + After-tax Salvage Value = $19,000 + $485,877 = $504,877

d. If the project's cost of capital is 12%, should the machine be purchased?

This can be determined from the net present value (NPV) calculated as follows:

NPV = -$984,000 + ($306,159/1.12^1) + ($332,986/1.12^2) + ($261,479/1.12^3) + ($504,877/1.12^3) = $100,287.71

Since the NPV of the machine of $100,287.71 is positive, the machine should be purchased.

7 0

3 years ago

Give the journal entry (FOR FULL CREDIT ALWAYS GIVE JOURNAL ENTRIES IN PROPER FORM: see Hints/FAQ tab for guidelines) when a bui

Digiron [165]

The journal entry of a building being purchased will be, a debit in the building account by $60,000; and the cash account and payables account will be credited by $20,000 and $40,000 respectively.

<h3>What is a Journal Entry?</h3>

A method of recording the monetary transactions of a business firm throughout a financial period, in such a way that effects of the same are reflected in the financial statements, is known as recording of journal entries.

Hence, the effect of the journal entry has been given above, and an image is also provided for better understanding of the concept for the readers.

Learn more about journal entry here:
brainly.com/question/20421012

#SPJ1

8 0

2 years ago

Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life 12years Yearl

Vlada [557]

Answer:

$339,600

Explanation:

The internal rate of return is the relationship between the price of the equipment and their yearly cash flow. the IRR makes the net present value equal to zero thus, it makes the present value of the yearly cashflow equal to the cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 60,000.00

time 12

rate 0.14

$60000 \times \frac{1-(1+0.14)^{-12} }{0.14} = PV\\$

PV $339,617.5275

<em><u>From the given option:</u></em>

$ 339,600 is the closest option.

7 0

3 years ago

The histogram and box plots below show the distribution of finishing times for male and female winners of the New York Marathon

weeeeeb [17]

Answer:

Kindly check explanation

Explanation:

A.)

From the histogram, the number of runners who made a certain range of Runtime can be easily deduced on the y-axis of the histogram, which isn't possible on the boxplot.

Summary statistic such as lower quartile, median and upper quartile statistics including outliers can be deduced easily from the boxplot.

B.)

Bimodal distribution occurs when two different groups or class have the highest number of values in a distribution.

C.)

The distribution of marathon times for men is fairly normally distributed while that if women is skewed.

The minimum and maximum values in the women's distribution is greater than the minimum and maximum values in the men's distribution.

The women's distribution has greater variance than the men's distribution. (greater range value).

6 0

3 years ago