Ask question

Ask question

All categories

3 years ago

6

Nicole heard that as a general rule, she should spend no more than one week's pay on rent. If Nicole's pay is $32000 per year, w

hat is the maximum amount per month that she should spend rent on?

1 answer:

Luda [366]3 years ago

4 0

615.38
to find the answer you simply divide what she makes I a year, 32,000, by the amount of weeks in a year, 52 and that will give you the answer.

You might be interested in

Which of the following is used to calculate total variable overhead variance where VOH = Variable Overhead, SVOR = Standard Vari

jenyasd209 [6]

Answer:

See below.

Explanation:

Total Variable over head variance = Spending variance + Efficiency variance

Total Spending variance = VOH - SVOR × AH

Total Efficiency variance = SVOR * ( AH - SH)

Assuming we only want total spending variance then option A is correct, however if we assume total overhead variance is required option E would be correct as we also need to account for the efficiency variance of overhead as per the difference between actual and standard hours worked.

Hope that helps.

6 0

4 years ago

Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that

kkurt [141]

Complete Question:

Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $130,000, which includes fixed costs of $70,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3 per unit, and avoid 30% of the fixed costs.

Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $13,000 profit. If Harvey Automobiles makes the part, what will its operating income be?

A. 156,000 greater than if the company bought the part

B. 26,000 less than if the company bought the part

C. 26,000 greater than if the company bought the part

D. 62,000 greater than if the company bought the part

Answer:

Option C. 26,000 greater than if the company bought the part

Explanation:

<u>Option A: In House manufacturing of 40,000 parts:</u>

Variable Cost is always Relevant and is ($60,000)

The Fixed cost is always irrelevant unless it is specific fixed cost related to the decision. Hence Fixed cost is irrelevant here.

<u>Option B: If we purchase from outsiders</u>

The purchase cost of the product is variable cost hence it is relevant as it is always relevant.

Purchase Cost = $3 * 40,000 parts ($120,000)

The decrease or increase in the cost or income, due to a decision is always relevant. The decrease in cost is Opportunity income or benefits and is given as under:

Decrease in Fixed cost by 30% = $70,000 * 30% $21,000

Now the additional profit that will arise as we can manufacture additional parts of another Product B. This is only possible if we free factory space by purchasing parts of Product A from outsiders. This additional manufacturing of Product B parts will generate profit of $13,000 and thus is a relevant income here. It is also referred to as Opportunity Income.

Opportunity Income <u> </u><u>$13,000</u><u> </u>

Total Relevant Cost (<u>$86,000)</u>

<h2><u>Decision</u></h2>

The cost of option A is lower from Option B by $26000 ($86000 - $60000). Hence the operating income would be higher by $26,000 if the company manufactures in-house rather purchasing 40,000 parts from outsiders.

Option C is correct option here.

5 0

4 years ago

Hubert lives in San Francisco and runs a business that sells boats. In an average year, he receives $842,000 from selling boats.

aev [14]

Answer:

Explicit costs are normal costs of operating a business.

Implicit costs are opportunity costs meaning that they are the benefits foregone by engaging in a certain course of action.

The wholesale cost for the pianos that Hubert pays the manufacturer ⇒ EXPLICIT COST.

The salary Hubert could earn if he worked as an accountant ⇒ IMPLICIT COST.

The wages and utility bills that Hubert pays ⇒ EXPLICIT COST

The rental income Hubert could receive if he chose to rent out his showroom. ⇒ IMPLICIT COSTS

Accounting Profit = Revenue - Explicit costs

= 842,000 - 452,000 - 301,000

= $89,000

Economic Profit = Revenue - Explicit costs - Implicit costs

= 842,000 - 452,000 - 301,000 - 38,000 - 48,000

= $3,000

If Hubert's goal is to maximize his economic profit, he <u>should</u> stay in the piano business because the economic profit he would earn as an accountant would be -$3,000.

<em>Economic profit as accountant = Salary + rental income - accounting profit from piano</em>

<em>= 48,000 + 38,000 - 89,000</em>

<em>= -$3,000</em>

6 0

3 years ago

40 points Write a short note discussing how social factors affect economic and political systems

vodka [1.7K]

economic develop increases the standard of living in a country. Political factors influence economic development by positively or negatively influencing the process of development. Some important political factors include: Regime type, which is the form of government operating in a country hope this helps plus i got this from my friend

6 0

4 years ago

As a Christmas thank you for being a good employee, Ed's TV Repair gave 62-year-old Edwina three shares of its stock worth $20 p

solong [7]

Answer:

d. $63

Explanation:

This "thank you" classifies as a performance bonus and, therefore, Edwina should include the whole market value plus dividends received from the three shares of Ed's TV Repair stock that she earned. The total amount for the shares' value plus dividends earned is:

$A = 3*(\$20+\$1)\\A=\$63$

Edwina should include $63 in her gross income.

5 0

4 years ago