Answer:
c) $222,500 $313,500
Explanation:
Calculation for cost-to-retail ratio
COST
Beginning inventory $ 30,000
Add: Purchases $190,000
Add: Freight-in $2,500
Cost=$222,500
RETAIL
Beginning inventory $ 45,000
Add: Purchases $260,000
Add: Net markups $8,500
Retail = $313,500
Therefore the cost-to-retail ratio will be $222,500 $313,500
Answer:
The answer is A. The total revenue will be understated
Explanation:
Unearned revenue is when the amount or money has been received before providing the service. For example, a manufacturer has received money from a customer for a product that will be delivered over a period of time, let's say every month.
Unearned revenue is a liability but the failure to make an adjusting entry in the income statement will understate revenue because as the product is being delivered monthly, the accountant should be recognizing it as revenue in the Income statement. As this is recognized as revenue, unearned revenue account decreases with the same amount monthly
Answer:
Gross pay:
- consultant $2,310
- computer programmer $2,100
- administrator $2,760
Net pay:
- consultant $1,694.73
- computer programmer $1,539.68
- administrator $1,945.78
Explanation:
regular earnings overtime withholding
allowances
Consultant $2,310 per week N/A 3
Computer programmer $30 per hour 1.5 2
Administrator $46 per hour 2 1
computer programmer worked 60 hours = ($30 x 40) + ($30 x 20 x 1.5) = $2,100
administrator worked 50 hours = ($46 x 40) + ($46 x 10 x 2) = $2,760
Social security taxes:
- Consultant = 6% x $2,310 = $138.60
- Computer programmer = 6% x $2,100 = $126
- Administrator = 6% x $2,760 = $165.60
Medicare taxes:
- Consultant = 1.5% x $2,310 = $34.65
- Computer programmer = 1.5% x $2,100 = $31.5
- Administrator = 1.5% x $2,760 = $41.40
Federal income taxes:
- Consultant: amount subject to withholding = $2,310 - (3 x $70) = $2,100. Federal income taxes = $356.90 + [28% x ($2,100 - $1,796) = $442.02
- Computer programmer = amount subject to withholding = $2,100 - (2 x $70) = $1,960. Federal income taxes = $356.90 + [28% x ($1,960 - $1,796) = $402.82
- Administrator = amount subject to withholding = $2,760 - $70 = $2,690. Federal income taxes = $356.90 + [28% x ($2,690 - $1,796) = $607.22
Gross pay:
- consultant $2,310
- computer programmer $2,100
- administrator $2,760
Net pay:
- consultant $2,310 - ($138.60 + $34.65 + $442.02) = $1,694.73
- computer programmer $2,100 - ($126 + $31.50 + $402.82) = $1,539.68
- administrator $2,760 - ($165.60 + $41.40 + $607.22) = $1,945.78
Answer:
Difference = 2.36% (Option e)
Explanation:
Formula:
WACC = Re*(E/V) + Rd*(D/V)*(1-t)
<u>Data (In Million) Book Value Market Value
</u>
E = Equity $65.00 $225.00 ($22.50 x 10)
D = Debt $45.00 $50.00
V = Value = E + D $110.00 $275.00
Re = Equity Rate 14% 14%
Rd = Debt Rate 6% 6%
T = Tax Rate 40% 40%
WACC Book Value:
WACC = 14%*(65/110) + 6%*(45/110)*(1-0.40)
WACC = 8.27273% + 1.47273%
WACC = 9.75%
WACC Market Value:
WACC = 14%*(225/275) + 6%*(50/275)*(1-0.40)
WACC = 11.45455% + 0.65455
%
WACC = 12.11%
Difference = 12.11% - 9.75 = 2.36% (Option e)
Answer: the marginal benefit of advertising exceeds the marginal cost of advertising
Explanation: Under a monopolistic competition, there are fewer sellers in the market, and due to the fact that a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal benefit of advertising exceeds the marginal cost of advertising allowing the monopolist to turn a profit for the business while keeping it relevant for as long as is possible.
