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Aloiza [94]
2 years ago
13

Rolling Hills Golf Course is planning for the coming golfing season. Investors would like to earn a 10% return on the company's

$50,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $30,000,000 for the season. About 600,000 rounds of golf are expected to be played each year. Variable costs are about $17 per round of golf. Rolling Hills Golf Course has a favorable reputation in the area and, therefore, has some control over the sales price of a round of golf. Using a cost-plus pricing approach, what sales price should Rolling Hills charge for a round of golf to achieve the desired profit
Business
1 answer:
Damm [24]2 years ago
6 0

Answer: $75.33

Explanation:

First find the total costs of a round of golf for the entire season:

= Fixed costs + Variable costs

= 30,000,000 + (17 * 600,000 rounds)

= $40,200,000

They would like to earn 10% on 50,000,000 which is $5,000,000

The revenue should therefore be:

= Costs + Expected return

= 40,200,000 + 5,000,000

= $45,200,000

Price per round to achieve this:

= Revenue / Rounds of golf

= 45,200,000 / 600,000

= $75.33

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An outside supplier offers to provide Epsilon with all the units it needs at $63.05 per unit. If Epsilon buys from the supplier,
ICE Princess25 [194]

Answer:

Make since the relevant cost to make it is $59.05

Explanation:

Calculation to determine what Epsilon should choose to:

Relevant costs to make = 8.20 + 24.20 + [41*(100%-35%)]

Relevant costs to make = 8.20 + 24.20 + (41*65%)

Relevant costs to make = 8.20 + 24.20 + 26.65

Relevant costs to make =$59.05

Therefore Epsilon should choose to: MAKE SINCE THE RELEVANT COST TO MAKE IT IS $59.05

8 0
2 years ago
Powell Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. Dur
Natalija [7]

Answer:

Powell Warehouse

General Journal

June 1:

Debit Inventory $1,280

Credit Accounts Payable (Catlin Publishers) $1,280

To record the purchase of books, terms 2/10, n/30.

June 3:

Debit Accounts Receivable (Garfunkel Bookstore) $1,100

Credit Sales Revenue $1,100

To record the sale of books on trade terms.

Debit Cost of Goods Sold $800

Credit Inventory $800

To record the cost of goods sold under the perpetual inventory system.

June 6:

Debit Accounts Payable (Catlin Publishers) $80

Credit Inventory $80

To record the credit received for books returned.

June 9:

Debit Accounts Payable (Catlin Publishers) $1,200

Credit Cash Discount $24

Credit Cash Account $1,176

To record the payment on account.

June 15:

Debit Cash Account $1,100

Credit Accounts Receivable $1,100

To record the receipt of payment in full settlement.

June 17:

Debit Accounts Receivable (Bell Tower) $1,100

Credit Sales Revenue $1,100

To record the sale of books on account.

Debit Cost of Goods Sold $950

Credit Inventory $950

To record the cost of goods sold under the perpetual inventory system.

June 20:

Debit Inventory $800

Credit Accounts Payable (Priceless Book Publishers) $800

To record the purchase of books on account, terms n/30.

June 24:

Debit Cash Account $1,078

Debit Cash Discount $22

Credit Accounts Receivable (Bell Tower) $1,100

To record the receipt of payment on account.

June 26:

Debit Accounts Payable (Priceless Book Publishers) $800

Credit Cash Account $800

To record payment on account.

June 28:

Debit Accounts Receivable (General Bookstore) $1,550

Credit Sales Revenue $1,550

To record the sale of books on account.

Debit Cost of Goods Sold $800

Credit Inventory $800

To record the cost of goods sold under the perpetual inventory system.

June 30:

Debit Sales (Returns) $200

Credit Accounts Receivable (General Bookstore) $200

To record the return of books on account.

Debit Inventory $70

Credit Cost of Goods Sold $70

To record the return of books.

Explanation:

Journal entries are the initial records made in the accounting system for business transactions.  They show the accounts affected by each transaction.  Two or more accounts are usually affected.  One account receives value and is debited and the other gives value, and it is credited.

4 0
3 years ago
All of the following are organization-directed benefits associated with offering unconditional guarantees except: a. the guarant
kotykmax [81]

Answer:

All of the following are organization-directed benefits associated with offering unconditional guarantees except:

a. the guarantee provides a means to avoid bankruptcy.

Explanation:

Providing or offering customers unconditional guarantees does not help the company to avoid bankruptcy.  Bankruptcy arises from inadequate financing resulting from overtrading.  Importantly, offering guarantees to customers communicates a clear performance goal to employees to improve service delivery to customers.

3 0
3 years ago
You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You
ehidna [41]

Answer:

d. -$4,608

Explanation:

The computation of the total capital gain is shown below:

Total capital gains is

= (End value - Beginning value) × 900 shares

= ($34.08 - $39.20) × 900 shares

= -$4,608

Hence, the  total capital gain on this investment is -$4,608

Therefore the option d is correct

And, the same is to be relevant

5 0
3 years ago
Why would you use a chart AND data in Excel?
harina [27]

Answer:

a b d

Explanation:

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3 0
3 years ago
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