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laiz [17]
2 years ago
12

Donn Luxury Resort has just received a utility expense of $45,000. However, the utility expense for Donn was budgeted as $38,700

. Calculate the relative variance of the utility expense for Donn by indicating the variance condition (favorable or unfavorable).
Business
1 answer:
Nikolay [14]2 years ago
6 0

Answer:

$6,300( unfavorable)

Explanation:

The relative variance of the utility expense is the budgeted utility expense minus the actual utility expense.

Budgeted utility expense=$38,700

actual utility expense=$45,000

relative variance for utility expense=$38,700-$45,000

relative variance for utility expense=-$6300

Note that this has to do with a cost, hence, the lesser your actual cost is compared to the budgeted cost, the better.

Since actual cost is higher than budgeted, it means more money than expected was spent, all in all, it is an unfavorable variance.

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What is a sales quota? Group of answer choices
Nuetrik [128]

Answer:

Sales Quota is the amount of sales that an individual sales person or group of sales people is expected to make within a specific amount of time.

Explanation:

Sales Quotas are the goals of the sales team that they are expected to achieve in a given period of time. It can be monthly, quarterly, or yearly. Sales Quota can be based on one person or can be set for a team or a group.

This helps an organization to achieve sales and revenue targets. Managers are able to learn about the productivity of the team and their success rate with the help of Sales quota. Sales quota also motivate the team to do better and achieve the goals.

5 0
3 years ago
A firm practices the pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to b
Galina-37 [17]

Answer:

The correct answer is $7,500

Explanation:

So, the hiring cost would be:

Hiring quater × hiring cost

= 300 × $20

= $6,000

Firing Cost would be:

Firing cost = 100 × $5

= $500

= 200 × $5

= $1,000

Therefore, the total hiring and firing cost = $6,000 + $500 + $1,000

= $7,500

7 0
3 years ago
Blue ridge bicycles uses a standard part in the manufacture of several of its bikes. the cost of producing 45 comma 000 parts is
aleksklad [387]

Answer:

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300

Explanation:

currently Blue Ridge's costs are:

variable costs = $69,000

fixed costs = $69,000

total $138,000

total cost per unit = $138,000 / 45,000 units = $3.0667 per unit

if Blue Ridge decide to outsource the production of the parts:

variable costs = 45,000 x $4 = $180,000

decrease in fixed costs = $69,000 x -30% = -$20,700

total costs = $159,300

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300

7 0
3 years ago
Read 2 more answers
To which of the following transactions does the common law Statute of Frauds not apply?a. Contracts for the sale of real estate.
erma4kov [3.2K]

Answer:

The false statement is letter "D": Contracts that can be performed within one year.

Explanation:

The statute of frauds establishes contracts to be written for some agreements to be secured. It mainly applies to land sales and purchases of goods $500 (U.S. dollars) and above, but it is not limited to only those two kinds of transactions. The statute of frauds capitalizes that contracts cannot be completed in less than one year. In that sense, the option "D" is a false statement.

6 0
3 years ago
Cost of Common Equity and WACC Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, wit
AVprozaik [17]

Answer:

Cost of common equity=15.74%

WACC=11.91%

Explanation:

Complete Question:

Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is P0=$22.00. The last dividend was D0=$2.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC?

Answer and Explanation:

First we have to calculate the cost of equity which shall be calculated as follows:

Cost of equity=D0(1+g)/P0+g

In the given question:

D0=$2.25

P0=$22.00

g=growth rate=5%

Cost of common equity=$2.25(1+5%)/$22.00+5%

                       =15.74%

Now we will calculate the WACC which shall be determined through following mentioned formula:

WACC=[Portion of Equity in capital structure*Cost of equity+Portion of Debt in capital structure*Post tax cost of debt]/Portion of Equity in capital structure+Portion of Debt in capital structure

WACC=[65%*15.74%+35%*(1-40%)*8%]/100%

WACC=11.91%

8 0
3 years ago
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