Answer:
Alternative A has lower incremental revenue but it's lower incremental costs makes the net income higher than of Alternative B.
Explanation:
Alternative A
The net income is computed with the formula as:
Net Income = Incremental Revenue - Incremental Cost
= $160,000 - $100,000
= $60,000
Alternative B
The net income is computed with the formula as:
Net Income = Incremental Revenue - Incremental Cost
= $180,000 - $125,000
= $55,000
Alternative A has lower incremental revenue but it's lower incremental costs makes the net income higher than of Alternative B.
Assuming the company is considering two alternatives. Alternative A to Alternative B net income is: $60,000; $55,000.
Alternative A Alternative B Net Income Increase (Decrease)
Revenues $ 160,000 $100,000 $60,000
($160,000-$100,00)
Costs $180,000 125,000 $55,000
($180,000-$125,000)
Inconclusion Alternative A to Alternative B net income is: $60,000; $55,000.
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b. reissuing treasury stock
c. purchase of long-term assets by issuing bonds
d. purchase of noncash assets by issuing equity
Answer: b. reissuing treasury stock
Explanation:
Investing Activities in the Cashflow Statement refer to transactions that have to do with the buying and selling of Capital Goods such as Fixed Assets. It also refers to investments in other company bonds and stock.
Financing has to do with how the firm finances it's operations. These include long term debt and stock related transactions.
When these transactions are non-cash, it means quite rightly that no cash was exchanged and instead something else for exchanged instead of cash. For example, A non-cash Investing and Financing activity would be the purchase of long-term assets by issuing bonds.
In this question, option B being the reissuance of Treasury Stock is not a non-cash transaction. Treasury Stock is the company's own stock that it required from the market. By reissuing it, they will be doing so with cash involved. That is, people will buy the reissued shares and pay cash for them thus making it a Cash Financing Activity.
1 Orange Cola Lemon-Lime Root Beer
2 Concentrate $ 4,625 $129,000 $ 105,000 $ 7,600
3 Water 1,250 30,000 25,000 2,000
4 Sugar 3,000 72,000 60,000 4,800
5 Bottles 5,500 132,000 110,000 8,800
6 Flavor changeover 3,000 4,800 4,000 10,000
7 Conversion cost 1,750 24,000 20,000 2,800
8 Total cost transferred to finished goods $19,125 $391,800 $324,000 $36,000
9 Number of cases 2,500 60,000 50,000 4,000
10 Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors.
Determine the cost per case for each of the four flavors. Round your answers to two decimal places
Orange Cola Lemon-Lime Root Beer
per case $_____ $_____ $_____ $_____
Answer and Explanation:
As per the scenario the solution of cost per case for each of the four flavors is shown below:-
Particulars Orange Cola Lemon Lime Root Beer
Total Cost
transferred to
finished goods a $19,125 $391,800 $324,000 $36,000
Number of cases b 2,500 60,000 50,000 4,000
Cost Per Case $7.65 $6.53 $6.48 $9
(c = a ÷ b)
Therefore we divide the total cost transferred to finished out by number of cases to figure out the cost per case.
Answer:
Marketing mix.
Explanation:
Marketing mix is defined as a set of elements that make up marketing actions in an organization. According to Kotler, the purpose of the marketing mix is to help the company achieve its goals in the market by using a set of marketing tools.
There are several models developed to represent the marketing mix, but the most used by organizations is represented by four essential pillars for the development of any marketing strategy, which are the 4P's of marketing: product, price, place and promotion. For each variable there are distinct and relevant activities:
If Louvers, Inc., accepted a $15,000, 180-day, 10 percent note from a customer on May 31. The necessary June 30 adjusting entry for Louvers will be:
Debit Interest receivable $125
Credit Interest revenue $125
Louvers, Inc. Adjusting Journal entry
Debit Interest receivable $125
Credit Interest revenue $125
($15,000 × 10% × 30/360)
(To record interest receivable)
The Interest amount of $125 calculated as ($15,000 × 10% × 30/360) is due at maturity. Between May 31 and June30, a total of 30 days passed.
Inconclusion the necessary June 30 adjusting entry for Louvers will be:
Debit Interest receivable $125
Credit Interest revenue $125
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Answer:
Interest receivable
To Interest revenue
(Being the interest receivable is recorded)
Explanation:
The adjusting entry is as follows
Interest receivable
To Interest revenue
(Being the interest receivable is recorded)
The computation is shown below:
= Principal × rate of interest × number of days ÷ (total number of days in a year)
= $15,000 × 10% × (30 days ÷ 360 days)
= $125
The 30 days is calculated from May 31 to June 30
b. $20,600 favorable.
c. $26,000 favorable.
d. $3,200 unfavorable.
e. $52,600 unfavorable.
Answer:
a. $32,000 unfavorable
Explanation:
The computation of the direct labor efficiency variance for October is shown below:-
Direct labor efficiency variance = (Standard hours for actual production - Actual hrs) × Standard rate per hour
= (5,700 × 2 - $234,000 ÷ $18.00) × $20
= (11,400 - $13,000) × $20
= $1,600 × $20
= $32,000 unfavorable
Therefore for computing the direct labor efficiency variance for October we simply applied the above formula.
Answer:
b. spending by individuals and households on only non-durable goods.
Explanation:
Consumption spending is spending by individuals and households on only non-durable goods. Consumption is a component of GDP which includes spending on goods and services by individuals and households as it includes non-durable as well as durable goods on the basis of consumption patterns.