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Triss [41]
3 years ago
13

Flash E - Card Manufacturing manufactures software parts for the computer software systems that produce e - cards. The Flash II

part is currently manufactured in the Computer Department. The Data Department also produces the part and the plant has excess capacity to produce the Flash II part. The current market price of the Flash II part is $ 900.. The managerial accountant reported the following manufacturing costs and variable expense​ data:
Flash E - Card Manufacturing

Manufacturing Costs and Variable Expense Report

Flash Component (Bold section should be attached to list of expense data below question and solutions.)_If the highest acceptable transfer price is $ 900in the​ market, what is the lowest acceptable in - house price the Data Department should receive to produce the part in - house at the Computer​Department?

A.$ 850
B.$ 200
C.$ 120
D.$ 1,170

Business
1 answer:
Katarina [22]3 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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SOVA2 [1]

Answer:

By helping them

Explanation:

We need to cooperate

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3 years ago
Present value with periodic rates. Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new w
rusak2 [61]

Answer:

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)

  • $2,820.62

and monthly payments ​(12 per​ year)?

  • $531.13

Compare the annual cash outflows of the two payments.

  • total semiannual payments per year = $2,820.62 x 2 = $5,641.24
  • total monthly payments per year = $531.13 x 12 = $6,373.56

Why does the monthly payment plan have less total cash outflow each​ year?

  • The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)?

  • $2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)

Explanation:

cabinet cost $25,000

interest rate 10%

we can use the present value of an annuity formula to determine the monthly payment:

present value = $25,000

PV annuity factor (5%, 12 periods) = 8.86325

payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62

present value = $25,000

PV annuity factor (0.8333%, 60 periods) = 47.06973

payment = PV / annuity factor = $25,000 / 47.06973 = $531.13

5 0
3 years ago
John Jones owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as follows:
OleMash [197]

Answer:

a.) $750

b.) Yes, the café is making an economic profit of $25 per year.

Yes, he should stay in the café business.

c.) No, the café is making an economic loss of $75 per year

No, he should not stay in the café business.

d.)$3,250

e.) $250

Explanation:

a) John's accounting profit is his revenue minus his explicit costs:$5,000 - $4,250 = $750

b) In this case, John's opportunity cost of running the café is $725 per year ($1,000 − $275 = $725). Thus, the café is making an economic profit of $25 per year ($5,000 − $4,250 − $725 = $25). Since the café is earning an economic profit, John should stay in the café business.

c) In this case, John's opportunity cost of running the cafe is $825 per year ($1,100 − $275 = $825). Thus, the cafe is earning an economic loss of $75 per year ($5,000 − $4,250 − $825 = −$75). Since the café is earning an economic loss, John should not stay in the café business.

d) John's accounting profit equals his revenue minus his explicit costs. If he doesn't need a loan, then his explicit costs equal $3,250. So, his accounting profit equals $1,750 (= $5,000 − $3,250).

e) To earn a normal profit, the café would have to cover all its implicit and explicit costs. The opportunity cost of John's time is $1,000 per year while the café's accounting profit is only $750 per year. Thus, the café would have to earn additional revenues of $250 per year in order for John to make a normal profit.

8 0
3 years ago
Joyce's investments earn 5% nominal annual return right now while the inflation rate is at 1%. If inflation increases to 5%, it
Dafna1 [17]
So if each nominal is 5 and the inflation 1 so if you have 5  inflation you will have 25 nominal 
6 0
3 years ago
Read 2 more answers
Which of the following is an expense of this period? Multiple Choice Costs of items paid for in this period but used up next per
OleMash [197]

Answer: Costs of items used up this period but paid for next period

Explanation:

Period Expenses for the period are transactions that should be expensed because they were used in the current period.

Therefore if a period cost is not used in the period, it is not considered a period cost even if the company pays for it in the current period which also means that if a period cost for the period is not paid in the current period but in the next one, it is still a period cost for the current period.

From the above therefore, the period cost is the cost of items used up in this period but paid for in the next one.

The land purchased might look like the obvious choice but it is not because Assets are capitalised and not expensed.

7 0
3 years ago
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