BUSINESS COLLEGE

What affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost?

Answers

Answer 1
Answer:

Answer:

Fixed Cost:

Total remains unchanged at total level.

And are variable at unit level, increase at lower level and decrease as higher level.

Variable Cost:

At unit cost, are the same, are the cost of producing one unit.

At total variable cost, it will increase along with sales and decrease when the sales are lower.

Explanation:

The unit fixed cost will be variable at unit level. As this amount will be distribute over more or less units.

So an increase of sales, decrease the unit fixed cost

and decrease of sales, increase the unit fixed cost

At total level, the fixed cost are the same for hte relevant range.

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Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $38,000. The annual cash inflows for the next three years will be: Year Cash Flow 1 $ 19,000 2 17,000 3 12,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the internal rate of return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. With a cost of capital of 14 percent, should the equipment be purchased? No Yes
During 2017, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. a. $0 b. $400 c. $1,000 d. $2,000 e. Some other amount
A goal is a specific commitment to achieve a measurable result within a stated period of time. A) True B) False
b. (5 points) Currently, some of Baryla's inventory includes $2.3 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.3 (including the unsalable items)? (Round to one decimal place.)
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan's common stock currently sells for $25.50 per share; its last dividend was $2.20; and it will pay a $2.31 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity

On July 1, 2019, Major Co. pays $15,120 to Mesa Insurance Co. for a 4- year insurance contract. Both companies have fiscal years ending December 31 Journalize and post the entry on July 1 and the adjusting entry on December 31 for Mesa Insurance Co. Mesa uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to O decimal places,e.g. 5,275.) Date Account Titles and Explanation Debit Credit Unearned Service Revenue Service Revenue

Answers

Answer:

Debit Cash account $15,120

Credit Unearned Service Revenue $15,120

Being entries to record cash collected for service to be rendered.

Debit Unearned Service revenue  $1,890

Credit Service Revenue  $1,890

Being entries to recognize revenue earned as at 31 December

Explanation:

When an amount is collected in advance for a service yet to be rendered, the company recognizes and asset in form of cash and a liability in form of Unearned Service Revenue.

When the service for which cash was collected is performed, revenue is said to have been earned. Entries required then are debit Unearned Service Revenue Credit Service revenue.

For Mesa, on 1 July , entries required are

Debit Cash account $15,120

Credit Unearned Service Revenue $15,120

Being entries to record cash collected for service to be rendered.

As at 31 December, revenue earned

= 1/2 × $15120/4

= $1890

Entries required

Debit Unearned Service revenue  $1,890

Credit Service Revenue  $1,890

Being entries to recognize revenue earned as at 31 December

The journal entries and adjusting entries should be shown below.

Journal entries:

Cash account $15,120

       Unearned Service Revenue $15,120

(Being entries to recordcash collected for service to be rendered)

Unearned Service revenue  $1,890 ( 1/2 × $15120/4)

       Service Revenue  $1,890

( to recognizerevenue earned as at 31 December)

These journal entries should be recorded.

learn more about journal entries here: brainly.com/question/24741269

Assume that you are interested in the relationship between Graduate Record Examinations (GRE) scores (the total of all subtests) and graduate school grade point averages (GPAs) at the end of their graduate programs. Conveniently, you have access to the GRE scores and GPAs of a large number of graduate students who have graduated from the electrical engineering master's program in an Ivy League university between 2000 and 2013. The Pearson correlation coefficient did not reach significance. What can you conclude from the data analysis? Can the result be generalized to all graduate students in electrical engineering master's programs across the United States? Why or why not?

Answers

Answer:

There was no significant relationship

Explanation:

From the result of the data analysis, it can be concluded that Graduate Record Examination (GRE) does not have any relationship with the performance of all graduate students in Electrical Engineering Master's Programs and an increase in GRE score can not lead to an increase in GPA of the students.

Nora is interested in a career in human resource management. She expected her first job to focus on giving employees access to information and enrollment forms for training, benefits, and other programs. However, she has since learned that HR employees spend less time doing that kind of work. Which trend is behind that change

Answers

Answer:

employees can now get such information through self-service

Explanation:

The trend behind this change is that, employees can now get such information through self-service. Human resource Employees spend less time doing such work now because such information is readily available on the internet and can be accessed by any employee at anytime that they want to do so on their own.

Ramona owns 20% of the stock of Miller, Inc. Miller reports the following items for the current year: Sales $3,400,000 Gain on sale of stock held for 2 years 250,000 Cost of goods sold 1,800,000 Operating expenses 900,000 Dividends paid to stockholders 180,000 What are the effects on Ramona's taxable income if Miller, Inc. is organized as: a. A corporation? b. An S corporation?

Answers

Answer:

Explanation:

a) A corporation?

A Corporations are taxable entities. Miller, Inc. will pay tax on its income. Ramona will be taxed on dividends received. Ramona has $36,000 ($180,000 x 20%) of dividend income from Miller. The dividend income will be taxed at 15%.

b) An S corporation?

An S corporations are conduit entities and do not pay tax on their income. The income from the conduit flows through and is taxed to the owners of the S corporation. Ramona will be taxed on 20% of Miller's income. Capital gains and losses of conduit entities must be reported separately, so that the owners can properly treat them in the calculation of their net capital gain or loss for the year. Miller has $700,000 ($3,400,000 - $1,800,000 - $900,000) of operating income and a $250,000 long-term capital gain in the current year. Ramona must include $140,000 ($700,000 x 20%) of ordinary income and $50,000 ($250,000 x 20%) of long-term capital gain on her individual return. The $140,000 of ordinary income is added to Ramona's gross income. The long-term capital gain of $50,000 is netted with other capital gains and losses. Because the income of the conduit is being taxed at the owner level, dividends paid to owners are considered to be returns of capital investment and are not taxed.

Answer: on S corporation taxable income will be affected by 140,000 and on corporation it will be 36000

Taxable income of Ramona    

  S corporation  Corporation

share on profits 140000          0

dividends           36000

Explanation:

Miller Inc    

  S corporation     corporation

sales   3400000 3400000

cost of sales   1800000         1800000

gross profit  1600000   1600000

other income  250000         250000

gain on sale of stock  250000   250000

operating expenses  900000 900000

Net Profit   950000         950000

dividends   0       180000

taxable income of Miller Inc    

             S corporation Corproration

Net Profit   950000          950000

gain on sale of stock -250000    -250000

Taxable Income  700000          700000

for the S corporation Miller gets a share of 20% on the taxable profits of the S corporation and on the corporation he gets 20% of the total dividends to shareholder. The gain is capital in nature and is not taxable income as per SARS.

Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets, sellers of goods influence the prevailing market price, giving them the role of price in the market. True or False: The market for digital cable does not exhibit the two primary characteristics that define perfectly competitive markets.

Answers

Answer:

  • Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets, sellers of goods influence the prevailing market price, giving them the role of price in the market. FALSE: This characteristics correspond to competitive markets, which are those markets where prices are determined by sellers and buyers simultaniouslly, and, none of them individually can exert influence over prices (nor sellers or buyers in particular) . Aditionally, goods or services must be homogeneous or equal.
  • The market for digital cable does not exhibit the two primary characteristics that define perfectly competitive markets: TRUE: digital cable is not an identical product (different sellers offer different options of channels, the service they offer is heterogeneous) and there are not many sellers, in a way that they cannot exert influence over prices. Then, it is not a competitive market.

Gelb Company currently manufactures 51,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $65,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit. Calculate the total incremental cost of making 51,500 units and buying 51,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?

Answers

Answer:

$343,725; $200,850

Explanation:

(a) The total incremental cost of making 51,500 units is calculated as below:

Total Relevant Costs:

= Variable Cost Per Unit + Fixed Manufacturing Costs

= (Relevant Amount Per Unit × No. of units) + Fixed Manufacturing Costs

= ($5.15 × 51,500) + $78,500

= $265,225 + $78,500

= $343,725

Therefore, the total incremental cost of making 51,500 units is $343,725.

(b) The total incremental cost of buying 51,500 units is determined as below:

Total Relevant Costs = Purchase Price Per Unit × No. of units

                                   = $3.90 × 51,500

                                   = $200,850

Therefore, the total incremental cost of buying 51,500 units is $200,850.

(c) The company should buy the component from outside supplier as it results in a lower total incremental cost of $200,850.
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