BUSINESS COLLEGE

Westfall Watches has two product​ lines: Luxury watches and Sporty watches. Income statement data for the most recent year​ follow: Total Luxury Sporty Sales revenue $ 490 comma 000 $ 360 comma 000 ​$130,000 Variable expenses 355 comma 000 235 comma 000 ​120,000 Contribution margin 135 comma 000 125 comma 000 ​10,000 Fixed expenses 78 comma 000 39 comma 000 39 comma 000 Operating income​ (loss) $ 57 comma 000 $ 86 comma 000 ​$(29 comma 000​) If $ 23 comma 000 of fixed costs will be eliminated by discontinuing the Sporty​ line, how will operating income be​ affected?

Answers

Answer 1
Answer:

Answer:

The operating income will increase by $13,000.

Explanation:

Giving the following information:

Sales revenue

Total= $490,000

Luxury= $360,000

Sporty= ​$130,000

Variable expenses:

Total= $355,000

Luxury= $235,000

Sporty= $​120,000

Contribution margin

Total= $135,000

Luxury= $125,000

Sporty= $​10,000

Fixed expenses:

Total= $78,000

Luxury= $39,000

Sporty= $39,000

Operating income​ (loss):

Total= $57,000

Luxury= $86,000

Sporty= ​$(29,000​)

New Income Statement:

Sales= 360,000

Variable costs= 235,000 (-)

Contribution margin= 125,000

Fixed costs= 39,000 + 16,000= 55,000

Operating income= 70,000

The operating income will increase by $13,000.

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Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows:Bouquet Production Delivery Other Wages and salaries 60% 30% 10%Other overhead 50% 35% 15%Riverside anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year. The cost of wages and salaries and other overhead that would be charged to each bouquet made is closest to:a. $12.50.b. $7.15.c. some other amount.d. $8.75.e. $13.75.
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Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 9,000
Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:
Material A ($5 per lb.) 3.0 lbs.
Material B ($18 per lb.) 0.5 lb.

The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is ______.

a.$1,170,000 for A; $702,000 for B
b.$1,080,000 for A; $1,296,000 for B
c.$1,080,000 for A; $648,000 for B
d.$1,125,000 for A; $675,000 for B

Answers

Answer:

c.$1,080,000 for A; $648,000 for B

Explanation:

For computing the total direct material purchase first we have to find out the production units which are shown below:

As we know that

Production units = Ending inventory units + sales units - beginning inventory units

= 9,000 units + 75,000 units - 12,000 units

= 72,000 units

Now the total direct material purchase for Material A and Material B is

For Material A

= 72,000 units × 3 lbs × $5 per lb

= $1,080,000

For Material B

= 72,000 units × 0.5 lbs × $18 per lb

= $648,000

Therefore, the third option is correct

If the money supply exceeds money demand, people will ____ bonds which will cause bond prices to ____ and the nominal interest rate to _____ until money demand equals money supply. A. buy; rise; fall B. sell; fall; fall
C. sell; rise; fall
D. buy; fall; rise

Answers

Answer:

A. buy; rise; fall

Explanation:

As for the provided information, we know,

As the supply of money exceeds the demand people will have more investing power, accordingly people will buy more bonds,

as more and more people will try to buy the bonds the price for bond because of high demand will automatically due to demand and supply proportion will rise,

and then to control the demand of bond, and control the purchase of bond, the nominal interest rate provided on bonds will fall.

Prompt What is liability?

Answers

Final answer:

A liability refers to any amount or debt that a firm or an individual owes, often arising from past transactions where assets were borrowed under the agreement of a future payback.

Explanation:

It can be seen as an obligation that the entity must fulfill in the future using their assets. A liability is often the result of a past transaction or event, where the entity has agreed to borrow assets and pay a certain rate of return.

Liabilities can be both short-term, such as accounts payable, or long-term, such as long-term debt. It is important for businesses and individuals to manage their liabilities effectively to maintain financial stability.

For example, a bank loan that a company uses to invest in new equipment would be considered a liability, as it represents an amount that the company is obligated to repay in the future.

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Answer:

The state of being responsible for something, especially by law

Stonehall Inc. recently borrowed $685,000 from its bank at a simple interest rate of 10 percent. The loan is for eight months and, according to the loan agreement, the interest should be added to the amount borrowed and the total amount will be repaid in monthly installments. The loan's annual percentage rate (APR) is:________a. 20.00%
b.18.25%
c. 15.05%
d. 13.33%

Answers

Answer:

a. 20.00%  

Explanation:

Monthly loan payment

= (685000*10%*8/12 + 685000)/8

= $91,333.33

PV = -685000

Nper = 8

Using RATE function

= RATE(8,91333.33,-685000,0)*12

= 20%

Therefore, The loan's annual percentage rate (APR) is 20%.

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 0.83 per sq. ft. $ 9.96 Direct labor 0.25 hr. $ 10.50 per hr. 2.62 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.20 per hr. 0.55 Fixed manufacturing overhead $345,800 ÷ 910,000 units) 0.38 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,040,000 Number of square feet of plastic used 11,400,000 Cost of plastic purchased and used $ 9,120,000 Number of labor hours worked 308,000 Direct labor cost $ 3,449,600 Variable overhead cost $ 689,000 Fixed overhead cost $ 365,000 Required: Calculate Parker Plastic’s direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Answers

Answer:

Direct Material Price Variance = (Actual price - standard price) x actual quantity purchased

Direct Material Price Variance = ($0.80 - $0.83) x 11400000 = $342000 (F)

Actual Price = $9120000 / 11400000 = $0.80

Direct Material Quantity Variance = (Actual quantity - standard quantity) x Standard Price

Direct Material Quantity Variance = (11400000 - 12480000) x $0.83 = $896400 (F)

Standard Quantity = 1040000 x 12 = 12480000

Final answer:

The direct materials price variance is $342,000 unfavorable and the direct materials quantity variance is $9,351,200 favorable.

Explanation:

To calculate Parker Plastic's direct materials price variance, we need to compare the standard price per unit of direct materials with the actual price per unit. The formula for calculating the price variance is (Actual Price - Standard Price) * Actual Quantity.

Using the given information, the actual price per unit is $0.80 per sq. ft, so the price variance is ($0.80 - $0.83) * 11,400,000 sq. ft = $342,000 U.

To calculate the direct materials quantity variance, we need to compare the standard quantity per unit of direct materials with the actual usage. The formula for calculating the quantity variance is (Actual Quantity - Standard Quantity) * Standard Price.

Using the given information, the actual usage is 11,400,000 sq. ft, so the quantity variance is (11,400,000 - 1,040,000) * $0.83 = $9,351,200 F.

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When the seller does not give the buyer instructions concerning the disposal of the goods upon rejection and whether the goods are not perishable, the buyer: A. can resell the goods for the seller, but cannot keep a commission on the sale.
B. cannot reship them to the seller without the seller's instructions.
C. can resell them for the buyer's benefit.
D.can give reasonable time for the seller to reclaim the goods

Answers

Answer:

D

Explanation:

the buyer can give reasonable time for the seller to reclaim the goods and made a possible cure for the defective delivery.
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