A necessary condition to use the equity method of reporting for an equity investment is that the investor company must

Miguel, a recent 22-year old college graduate, wants to retire a millionaire. How much will he need to set aside annually to a

olga55 [171]

Answer

Miguel must set aside $62,745 annually

Explanation

N = Number of years till Miguel would retire = 43 years

FV = Future Value = $1,000,000

r = Interest rate = 10%

PMT = Annual payments (at the ending of the year) = ?? The question asks us to calculate this

We would use the future value ordinary annuity formula to calculate PMT

FV = PMT $[\frac{(1+r )^{N} -1}{r} ]$

1000000 = PMT $[\frac{(1+0.10 )^{10} -1}{0.10} ]$

PMT ≅ $62,745

Miguel must set aside $62,745 annually

3 0

3 years ago

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components depa

katrin [286]

Answer:

Plantwide Overhead Rate $ 213.61 per hour

1) Overhead Cost Model 145=$ 487062.56

1) Overhead Cost Model 211= $ 1153494

Total Cost per unit Model 145 696.29 Model 212 $406.56

Explanation:

Plantwide Overhead Rate = Total Estimated Overhead/ No of Machine Hours

Process Activity Overhead Cost Driver Quantity

Components Changeover $ 459,500 Number of batches 810

$ 459,500/810= $567.28 per batch

Machining 301,600 Machine hours 7,680

301,600/ 7,680 = $ 39.27

Setups 227,500 Number of setups 80

227,500 /80=2843.75 per set up

$ 459,500 +301,600 +227,500 =$ 988,600

Finishing Welding $ 180,500 Welding hours 4,900

$ 180,500/ 4,900= $ 36.84 per welding hour

Inspecting 222,000 Number of inspections 815

222,000/815 = $ 272.39 per number of inspections

Rework 60,700 Rework orders 230

60,700 /230 = 263.91 per rework order

$ 180,500+ 222,000+ 60,700 =$ 463,200

Support Purchasing $ 135,500 Purchase orders 525

$ 135,500 / 525 = $ 258.10 per purchase order

Providing space 31,550 Number of units 4,800

31,550/4800= $ 6.57 per number of unit

Providing utilities 60,110 Number of units 4,800

60,110 / 4800= $ 12.53

$ 135,500+ 31,550+60,110 =$ 227,160

Additional production information concerning its two product lines follows.

Model 145 Model 212

Units produced 1,600 3,200

Welding hours 2,000 2,900

Batches 405 405

Number of inspections 485 330

Machine hours 2,280 5,400

Setups 40 40

Rework orders 130 100

Purchase orders 350 175

1)Plantwide Overhead Rate = Total Estimated Overhead/ No of Machine Hours

Adding the Estimated Sub Totals we get

Total Estimated Overhead=$ 988,600 + $ 463,200 + $ 227,160

Total Estimated Overhead= $ 1678960

No of Machine Hours= 7860 (given)

Plantwide Overhead Rate =$ 1678960/7860= 213.608= $ 213.61 per hour

Overhead Cost Model 145=$ 213.61 per hour* 2,280 hours

1) Overhead Cost Model 145=$ 487062.56

1) Overhead Cost Model 211=$ 213.61 per hour* 5400 hours= $ 1153494

2) Model 145 Model 212.

Direct Materials $ 130

Direct Labor $200

Overhead Costs $567.28* 405 $567.28*405

= 229784.4 = 229784.4

$ 39.27*2280 $ 39.27*5400

= 89535.6 =212058

2843.75*40 2843.75* 40

=113750 =113750

Subtotal 433070 555592.4

$ 36.84*2000 $ 36.84 *2900

=73680 i = 106836

$ 272.39* 485 $ 272.39* 330

=132109.5 ii = 89888.7

263.91*130 263.91 *100

=34308.3 iii =26391

Subtotal i+ii+iii= 240097.8 223115.7

$ 258.10*350 $ 258.10*175

=90335 i = 45167.5 a

$ 6.57 *1600 $ 6.57 *3200

= 10512 ii =21024 b

$ 12.53 *1600 $ 12.53 *3200

=20048 iii 40096 c

Subtotal i+ii+iii= 120895 a+b+c = 106287.5

Total Overhead 794062.8 884995.6

No of Units 1600 3200

Total Overhead Cost Per Unit 496.29 276.56

Direct Labor $200

Direct Materials $130

Total Cost per unit 696.29 $406.56

3 0

3 years ago

When using simple regression analysis, if there is a strong correlation between the independent and dependent variable, then we

luda_lava [24]

Answer:

False

Explanation:

When interpreting correlation, it is important to remember that correlation does not equal causation. We would only be able to conclude that a part of the variation in one of the variables (as measured by its variance) can be considered as being due to its relationship with the other variable.

5 0

3 years ago

In the file MajorSalary.xlsx, data have been collected from 111 College of Business graduates on their monthly starting salaries

sineoko [7]

Answer:

a.The major which has the most graduates is Accounting having 28 Graduates.

b. The major having the highest average starting monthly salary is Accounting Rs.5,650.00.

c. Major of the student with the lowest overall starting salary is Management.

6 0

2 years ago

Jake, who runs a health food store, finds it is rewarding to interact with customers who like to eat organic and health food. He

Katyanochek1 [597]

Answer:

Personal objective.

Explanation:

Jake, who runs a health food store, finds it is rewarding to interact with customers who like to eat organic and health food. Hence, he is recognized in the local community. Personal objective of retailing that Jake emphasize by his practice.

Personal objective are the retail goal set by retailer, who use skill and domain knowledge of retail to impress other and gain respect from peer group.

There are three type of personal objective in retailing:

Self gratification
Power or authority.
Respect.

4 0

2 years ago