Which of these is an advantage of filing for Chapter 7 bankruptcy?

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month,

olga nikolaevna [1]

Answer:

Direct Material Price Variance = $300 Favorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) $\times$ Actual Quantity

Standard Price = $4 per pound

Actual Price = $\frac{Actual\ Cost}{Actual\ Units}$ = $\frac{5,700}{1,500} = 3.8$

Since the actual price is less than the standard price the variance will be favorable as the amount paid for actual use is less then the estimated standard cost.

Thus, direct material price variance = ($4 - $3.8) $\times$ 1,500

= $300 Favorable

7 0

2 years ago

Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?

Bogdan [553]

Neoclassical economics places a larger focus on providing extra options and improving living standards, which are ultimately decided by long-term progress.

As a result, it focuses on long-term growth rather than fighting recessions.

In actuality, neoclassical economics holds that a product's price is mostly influenced by its manufacturing costs. According to neoclassical economics, the primary factor for client decision-making therefore becomes price.

As a result, letting the neoclassical economists concentrate on prices is not the best way to combat the recession. Long-term economic performance is always emphasized by neoclassical economists.

Note that the neoclassical approach to macroeconomics emphasizes the idea that, over time, the economy tends to recover to its potential GDP and natural unemployment rate.

Learn what John Maynard Keynes would recommend to fight the recession: brainly.com/question/25586856

#SPJ4

8 0

2 years ago

A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 15 loans per da

anyanavicka [17]

Answer:

a) 46.7, 80 b) 20, 60 c) yes

Explanation:

a) % utilization= utilization/design capacity × 100

= 7/15 × 100

= 46.7%

% efficiency= efficiency/design capacity × 100

= 12/15 × 100

=80%

b) Utilization= 2/10 × 100 = 20%

Efficiency= 6/10 × 100= 60%

c) A system with higher efficiency ratios will always have higher utilization as these systems will have lesses number of failures

6 0

3 years ago

The following data relate to the operations of Slick Software, Inc., during 2018. Continuing operations:

Maurinko [17]

Answer:

A. $5.70

B. $7,625,000

C. $2.25

D. UNFAVORABLE amount of $4.25

Explanation:

a.Preparation of a condensed income statement for 2018,

SLICK SOFTWARE, INC.Condensed Income StatementFor the Year Ended December 31, 2018

Net sales $19,850,000

Costs and expenses $16,900,000

Income from continuing operations$2,950,000

Discontinued operations:

Operating income $140,000

Loss on disposal (net of income tax benefit)(550,000)

Income before extraordinary item $2,540,000 Extraordinary loss (net of income tax benefit)(900,000)

(550,000+350,000)

Net income$1,640,000

($2,540,000-900,000)

Earnings per share:

Earnings from continuing operations$12.25

[($2,950,000 - $500,000) ÷200,000]

Loss from discontinued operations (2.05)

($410,000 ÷ 200,000 shares)

Earnings before extraordinary items $10.20

[($2,540,000 - $500,000 preferred dividends) ÷ 200,000]

Extraordinary loss (4.50)

($900,000 ÷200,000 shares)

Net earnings $5.70

[($1,640,000 - $500,000 preferred dividends)÷200,000 shares]

Calculation for Preferred dividends:

Preferred dividends: 80,000 shares x $6.25 =$500,000

b.Preparation of a statement of retained earnings for the year ended December 31, 2018

SLICK SOFTWARE, INC.Statement of Retained Earnings For the Year Ended December 31, 2018

Retained earnings, December 31 2017 $7,285,000

Less: prior period adjustment350,000

Restated$6,935,000

Net income1,640,000

Subtotal$8,575,000

($6,935,000+1,640,000)

Cash dividends(950,000)

Retained earnings, December 31, 2017 $7,625,000

($8,575,000-$7,625,000)

c.Computation for the amount of cash dividend per share of common stock

Total cash dividends declared during 2018 $950,000

Less: Preferred stock dividend 500,000

(80,000 shares x $6.25 per share)

Cash dividends to common stockholders $450,000

Number of common shares outstanding 200,000

Cash dividend per common share $2.25

($450,000 ÷ 200,000 shares)

D. The amount of $8.00 earnings per share figure in 2019 will have unfavorable figure when compared with the year 2018 reason been that

the year 2019 has one Earnings Per Share amount which is why we should compared it to the earnings per share from continuing operations in year 2018, which gave us the amount of $12.25 per share[($2,950,000 - $500,000) ÷200,000] which inturn makes Slick Software, Inc.’s earnings per share from continuing operations to reduce to the amount of $4.25 per share ($12.25-$8.00) from the year 2018 to 2019

4 0

3 years ago

Northwood Company manufactures basketballs. The company has a ball that sells for S25. At present, the ball is manufactured in a

Maksim231197 [3]

Answer:

1A. Compute the CM ratio and the break-even point in balls.

CM ratio = 2.5
break even point = 21,000 balls

1B. Compute the degree of operating leverage at last year.

31.82%

2. Due to an increase in labor rates, the company estimates that variable expenses will increase by $3 per ball next year. If this change takes place and the selling price per ball remains constant at $25, what will be the new CM ratio and break-even point in balls?

CM ratio = 3.57
break even point = 30,000 balls

3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $90,000, last year?

42,858 balls

4. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?

new price of $28 per ball

5. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company's new CM ratio and new break-even point in balls?

CM = 1.32
26,250 balls

6.a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year?

31,875 balls

6.b. Assume the new plant is built and that next year the company manufactures and sells 30,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage.

Income Statement

Total revenue $750,000

Variable expenses ($270,000)

Contribution margin $480,000

Fixed expenses ($420,000 )

Net operating income $60,000

Degree of operating leverage = 60.87%

6.c. If you were a member of top management, would you have been in favor of constructing the new plant?

If you cannot avoid paying the salary raise, then the company needs to carry on the new plant project.

Explanation:

sales price per ball = $25

variable expenses: $15 per unit

direct labor $9
other variable costs $6

CM ratio = net sales / CM = $750,000 / $300,000 = 2.5

break even point = total fixed costs / CM per unit = $210,000 / $10 = 21,000 balls

degree of operating leverage = fixed costs / total costs = $210,000 / $660,000 = 31.82%

new CM ratio = net sales / CM = $750,000 / $210,000 = 3.57

break even point = total fixed costs / CM per unit = $210,000 / $7 = 30,000 balls

sales level for $90,000 profit = ($210,000 + $90,000) / $7 = 42,857.14 ≈ 42,858 balls

CM ratio (new plant) = net sales / CM = $750,000 / $570,000 = 1.32

break even point = total fixed costs / CM per unit = $420,000 / $16 = 26,250 balls

sales level for $90,000 profit = ($420,000 + $90,000) / $16 = 31,875 balls

8 0

3 years ago