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A charter company will provide a plane for a fare of $60 per person for 20 passengers. For each passenger in excess of 20, the f

photoshop1234 [79]

Answer:

25

Explanation:

Let number of passengers greater than 20 be 'x'

thus,

the total number of passengers = 20 + x

and,

the total cost = $60 - $2x

now,

The revenue function will become as:

R(x) = cost × Number of passengers

or

R(x) = ( 60 - 2x ) × ( 20 + x )

or

R(x) = 1200 + 60x - 40x - 2x²

or

R(x) = 1200 + 20x - 2x²

Now,

for point of maxima, differentiating w.r.t 'x'

we have

R'(x) = 20 - 4x = 0

or

x = 5

Hence,

the ideal number of passenger is 20 + x = 20 + 5 = 25

6 0

3 years ago

Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10

Ilia_Sergeevich [38]

Answer and Explanation:

The journal entry is shown below:

Accounts payable $1,500

To Merchandise Inventory $1,500

(being purchase returns is recorded)

here account payable is debited as it decreased the liabilities and credited the merchandise inventory as it decreased the assets

7 0

3 years ago

Raphael lives in Detroit and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of t

Misha Larkins [42]

Answer:

Implicit cost

The salary Manuel could earn if he worked as a financial advisor

b. The rental income Manuel could receive if he chose to rent out his showroom

explicit cost

c. The wholesale cost for the pianos that Manuel pays the manufacturer

d. The wages and utility bills that Manuel pays

Explanation:

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials.

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Only explicit cost is considered when calculating accounting profit while both explicit and implicit costs are considered in calculating economic profit.

Accounting profit= total revenue - explicit cost

Economic profit = accounting profit - implicit cost

If Manuel did not sell pianos, he would be working as a financial advisor, this is his next best option. Thus the salary he would have earned as a financial advisor is his explicit cost

If he did not use the showroom, he could have rented it out. Renting it out is his next best option. Thus the income from renting the showroom is his explicit cost

The wholesale cost of the pianos, wages and utility bills are monies actually expended in the course of running the business. Thus they are explicit costs

8 0

2 years ago

Question 1 What forces have caused cost and management accounting systems designed decades ago to become less relevant and less

sergey [27]

Answer to Question 1:

The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:

The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.
The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.
The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.

Answer to Question 2:

The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.

As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.

By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.

5 0

3 years ago

The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is going to l

vovangra [49]

Answer:

The one-year liquidity index for these securities is 0.862

Explanation:

For computing the liquidity index, we have to use the formula which is shown below:

= (IBM stock face value ÷ total amount of face value) × (IBM current liquidation value ÷ IBM one year liquidation value) + (GE stock face value ÷ total amount of face value) × (GE current liquidation value ÷ GE one year liquidation value) + (Treasury securities stock face value ÷ total amount of face value) × (Treasury securities current liquidation value ÷ Treasury securities one year liquidation value)

where,

total amount of face value = IBM stock face value + GE stock face value + Treasury securities face value

= $15,000 + $6,000 + $20,000

= $41,000

Now put these values to the above formula

= ($15,000 ÷ $41,000) × ($14,900 ÷ $15,500) + ($6,000 ÷ $41,000) × ($3,000 ÷ $3,400) + ($20,000 ÷ $41,000) × ($15,000 ÷ $19,000)

= 0.365 × 0.961 + 0.146 × 0.882 + 0.487 × 0.789

= 0.350 + 0.128 + 0.384

= 0.862

Hence, the one-year liquidity index for these securities is 0.862

8 0

3 years ago