our firm experiences strong seasonal demand, based on financial quarters. You have calculated the following seasonal relatives (or "indices") for each quarter: First Financial Quarter: 0.5 Second Financial Quarter: 1.0 Third Financial Quarter: 1.25 Fourth Financial Quarter: 1.25 The marketing department has just forecasted that 10,000 units will be ordered in the next fiscal year. The operations manager wants you to tell her how many units will be ordered in the fourth quarter of next fiscal year. What is your answer

Answers

Answer 1
Answer:

Answer: 3,125 UNITS

Explanation:

According to the question above, the seasonal relatives for each quarter for the current year financials has been calculated thus:

1st quarter                      0.5

2nd quarter                    1.0

3rd quarter                     1.25

4th quarter                     1.25

using the above relatives to calculate what the next fiscal year order will be:

Total relatives above = 4.0

for the 4th quarter for the next year order :

= 1.25/4.0 * forecasted qty to be ordered for the next fiscal year

=1.25/4.0 * 10,000

0.3125 * 10,000

=3,125 units will be ordered in the forth quarter of the next fiscal year.

Answer 2
Answer:

The number of units that would be ordered in the next fiscal year would be 3125

The financial report

The first quarter = 0.5

The second quarter = 1.0

The third quarter = 1.25

The fourth quarter = 1.25

0.5+1+1.25+1.25 = 4

The relatives are 4

The solution for the 4th quarter

(4thQuarter)/(TotalRelatives) \n\n= (1.25)/(4)

= 0.3125

The number of the units in the fiscal year would be 0.3125*10000

= 3,125 units

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Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 3,000 meals. Amount Per Unit Sales revenue $ 18,000 $ 6.00 Costs of meals produced 13,500 4.50 Gross profit $ 4,500 $ 1.50 Administrative costs 2,100 0.70 Operating profit $ 2,400 $ 0.80 Fixed costs included in this income statement are $4,500 for meal production and $600 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.50 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. Required: a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

Answers

Answer:

See explanations below

Explanation:

Kind find attached solution. Please note that 3,300 units was used for the alternative.

Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department DLH Loans Processed Direct Costs Consumer 14,000 700 $ 280,000 Commercial 8,000 300 $ 180,000 Banc Corp. Trust estimates that it costs $400 to analyze and close a commercial loan. What is the overhead rate if Banc Corp. Trust allocates the remaining indirect costs using direct labor hours? Multiple Choice a. $12.55 per hour.
b. $18.00 per hour.
c. $1,000 per loan.
d. $800 per loan.

Answers

Answer:

overhead rate = 18 per hours

Explanation:

given data

indirect costs = $396,000

Department         DLH                      Loans Processed                Direct Costs

Consumer         14,000                   700                                        $280,000

Commercial       8,000                    300                                       $180000

to find out

overhead rate

solution

we get here overhead rate that is express as

overhead rate = (indirect\ cost)/(total\ DLH) ...............1

put here value

overhead rate = (396000)/(14000+8000)  

overhead rate = 18 per hours

Social surplus is the​ ____________. A. total value from trade in a markettotal value from trade in a market. B. difference between the amount that buyers actually pay and what they wish to pay. C. excess of aggregate demand over aggregate supply. D. difference between consumer surplus and producer surplusdifference between consumer surplus and producer surplus.

Answers

Answer:

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.

Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.

Final answer:

Social surplus is the combination of consumer surplus and producer surplus, taking into account the price that consumers are willing to pay based on their preferences, and the price that producers are willing to sell their product at, based on their costs.

Explanation:

The question asked here is: Social surplus is the​ ____________. The correct answer to this question is that social surplus is the sum of consumer surplus and producer surplus. This concept falls under economic principles. Consumer surplus is the difference between the price that consumers are willing to pay based on their preferences, and the actual market equilibrium price. On the other hand, producer surplus is the gap between the price at which producers are willing to sell a product, based on their costs, and the market equilibrium price. Combining both these surpluses gives the social surplus.

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An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 5,700,000 1 4,300,000 2 4,800,000 3 5,300,000 4 6,700,000 5 7,400,000 6 8,200,000 All salaries are to be paid in a lump sum. The player has asked you as his agent to renegotiate the terms. He wants a $9.2 million signing bonus payable today and a contract value increase of $1,200,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the discount rate is 4.7 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

Answers

Answer:

PTM  $ 1,225,900.379

Explanation:

We will calculate the present value of the contract.

Then we will increase by 1,200,000

Next, we subtract the 9.2 bonus payable today

and distribute the rest under quarter payments:

We use present value of a lump sum

(Nominal)/((1 + rate)^(time) ) = PV

0 5,700,000 5,700,000

1 4,300,000 4,102,588.223

2 4,800,000 4,369,383.7

3 5,300,000 4,603,035.135

4 6,700,000 5,551,785.732

5 7,400,000 5,850,312.795

6 8,200,000 6,185,156.501

Then we add them: 36,362,262.09

We increase by 1,200,000

and subtract the 9,200,000 initial payment

28,362,262.09

this is the present value fothe quarterly payment

Next we calculate the equivalent compound rate per quarter:

(1+(0.047)/(365) )^(365)  = (1+(r_e)/(4) )^(4) \nr_e = (\sqrt[4]{1+(0.047)/(365) )^(365)} - 1)* 4

equivalent rate: 0.002954634

Now we claculate the PTM of an annuity of 24 quearter at this rate:

PV / (1-(1+r)^(-time) )/(rate) = PTM\n

PV  $28,362,262.09

time 24

rate 0.002954634

28362262.0861625 * (1-(1+0.00295463425906195)^(-24) )/(0.00295463425906195) = PTM\n

PTM  $ 1,225,900.379

Troy (single) purchased a home in Hopkinton, MA, on January 1,2007, for $300,000. He sold the home on January 1, 2016, for$320,000. How much gain must Troy recognize on his home sale ineach of the following alternative situations? d. Troy rented thehome from January 1, 2007, through December 31, 2011. He lived inthe home as his principal residence from January 1, 2012, throughDecember 31, 2012. He rented out the home from January 1, 2013,through December 31, 2013, and lived in the home as his principalresidence from January 1, 2014, through the date of the sale.Assume accumulated depreciation on the home at the time of sale was$0. Gain recognized? The answer is not $28,571 The answer is not$4,375

Answers

Answer:

$20,000

Explanation:

Time difference from the "Purchase date" to "Sale date" = 9 years (1/1/2007 to 1/1/2016)

Given that, in the 9 years, Troy rented the home for first 5 years (1/1/2007 to 1/1/2012), and lived in the home as his principal residence for next 1 year(1/1/2012 to 31/12/2012)

and again rented out the home for 1 year (1/1/2013 to 31/12/2013), and again started to lived in the home as his principal residence for next 2 years. (1/1/2014 to 1/1/2016)

i.e. when we look at the last 5 years before the sale of house, Troy has lived 3 years in the home as his principal residence.

And Troy has acquired the home for $300,000 and not acquired by "like kind exchange" of property.

As per IRS rules, a owner must live at least 2 years in the home as his principal residence & home must not be acquired by 1031 exchange (like/kind exchange).

Here, Troy satisfies both conditions. (He has lived more than 2 years, and not acquired by like/kind exchange)

So, as per above rules, Troy's home sale is eligible for Maximum exclusion of $250,000 gain (being Troy is Single)

Here, as per IRS rules, Gain = Amount Realized / Adjusted Basis = $320,000 - $300,000 = $20,000.

But, being Troy home sale is eligible for Maximum exclusion of $250,000, this $20,000 gain is deducted and Net Gain = $0.

Final answer:

Troy's gain on the sale of his home is $20,000. However, he is eligible to exclude this gain from taxation because he lived in the home as his principal residence for 2 out of the 5 years leading up to the sale, as per IRS guidelines.

Explanation:

Troy's gain on his home sale depends on his usage of the property and the IRS's rules on excluding gains from the sale of a principal residence. According to these rules, a person can generally exclude the gain up to $250,000 from the sale of a principal residence if they owned the house and lived in it as their main home for at least 2 out of the last 5 years before the sale. The years of ownership and use don't need to be consecutive.

Troy purchased the home in 2007 and sold it in 2016. He rented the home initially then lived in it as his principal residence, then rented it again, and lived in it again until the sale. Combining these periods, he lived in the house as his principal residence for only 3 years (2012, 2014, 2015). However, these years are within the 5-year window before the sale (2012-2016).

Troy's recognized gain is the selling price of the home minus the purchase price. Thus, his recognized gain is $320,000 - $300,000 = $20,000. However since he lived in the residence for 2 out of the 5 years before the sale, this gain is excluded from taxation, according to IRS rules.

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The project is expected to generate the following net cash flows: Year Cash Flow
Year 1 $350,000
Year 2 $475,000
Year 3 $400,000
Year 4 $475,000

Which of the following is the correct calculation of project Delta’s IRR?

A. 5.01%
B. 5.51%
C. 4.26%
D. 6.01%

Answers

Answer:

Correct option is A 5.01%

Explanation:

Let irr be x%

At irr,present value of inflows=present value of outflows.

1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4

Hence x=irr=5.01%(Approx).