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Anit [1.1K]
2 years ago
14

epper Department store allocates its service department expenses to its various operating (sales) departments. The following dat

a is available for its service departments: Expense Basis for allocation Amount Rent Square feet of floor space $ 49,000 Advertising Amount of dollar sales $ 80,000 Administrative Number of employees $ 120,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Number of employees A 5,500 $ 355,000 31 B 5,900 $ 375,000 33 C 6,100 $ 520,000 35 Totals 17,500 $ 1,250,000 99 What is the total advertising expense allocated to Department B
Business
1 answer:
ad-work [718]2 years ago
6 0

Answer:

Pepper Department Store

The total advertising expense allocated to Department B is:

= $24,000.

Explanation:

a) Data and Calculations:

Expense            Basis for allocation               Amount

Rent                   Square feet of floor space $ 49,000

Advertising        Amount of dollar sales      $ 80,000

Administrative   Number of employees     $ 120,000

Department   Square Feet   Dollar Sales   Number of employees

A                         5,500            $ 355,000              31

B                         5,900            $ 375,000              33

C                         6,100            $ 520,000              35

Totals               17,500          $ 1,250,000              99

Advertising Expense Allocation:

Department A = $22,720 (355,000/$1,250,000 * $80,000)

Department B = $24,000 ($375,000/$1,250,000 * $80,000)

Department C = $33,280 ($520,000/$1,250,000 * $80,000)

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In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year a
kogti [31]

Answer:

The most the firm can spend to lease the new equipment without losing money=$75,000

Explanation:

The point at which the revenue in terms of sales equals the cost is the break-even point. This can be expressed as;

R=C

where;

R=revenue from sales

C=cost

And;

R=P×N

where;

R=revenue from sales

P=price per unit

N=number of units

In our case;

P=$7.5 per unit

N=10,000 units

replacing;

R=7.5×10,000=$75,000

Total revenue from sales=$75,000

C=p×n

where;

p=cost per unit

n=number of units

In our case;

p=$5

n=unknown

replacing;

C=5×n=5 n

At break-even point, R=C;

5 n=75,000

n=75,000/5=15,000

The break-even cost=5×15,000=$75,000

The most the firm can spend to lease the new equipment without losing money=$75,000

5 0
3 years ago
"If the option will cost the investor an additional $10,000, should the investor purchase the option? Enter your answer in thous
kykrilka [37]

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

Explanation:

An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.

If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.

Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.

6 0
3 years ago
jones enterprises was started when it acquired $6,000 cash from creditors and $10,000 from owners. the company immediately purch
Kobotan [32]

Answer:

The answer of each requirement is given below.

A.) record the events under an accounting equation

Accounting equation is given below.

Asset = Equity + Liability

Land + Cash = Equity + liability

12,000 + 4000 = 10,000 + 6,000

16,000 = 16,000

B.) After all events have been recorded, Jones's obligations to creditors represent what percent of total assets

Percentage = 6,000/16,000*100 = 37.5%

C.) after all events have been recorded, Jones stockholders equity represents what percent of total assets?

Equity percentage = 10,000/16,000* 100 = 62.5%

D.) assume the debt is due. given that jones has $10,000 in stock holders' equity can the company repay the creditors at this point? why or why not

No, the company will not be able to pay debt as the company has acquired land of 12,000 dollars and has only 4,000 dollars in liquid form.

4 0
3 years ago
Nancy, age 67, plans to retire in six months. She has $200,000 in a savings account. She would like to receive lifetime monthly
Oliga [24]
C. Sorry if I got it wrong have a good day
4 0
3 years ago
The payments a business makes for investing in capital expenses are known as Question 3 options: A) profits B) interest C) wages
rewona [7]
The answer for this question is A.
4 0
3 years ago
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