A company has budgeted $328,000 to be used by both the marketing department and the finance department. The marketing department uses cash at the rate of $42,000 per month, which is three times the rate of the finance department. How many months until the budgeted amount is used up? Round all amounts to the nearest tenth.

Answers

Answer 1

Answer:

Answer:

5.9 months

Explanation:

Market department monthly budget = $42,000

Since the finance department uses a third of the budget used by the market department, the total monthly budged for both departments is:

$B = (1+(1)/(3))*\$42,000\nB= \$56,000$

The number of months that until a budgeted amount of $328,000 is used is given by:

$n=(\$328,000)/(\$56,000) \nn=5.9\ months$

It will take 5.9 months until the budgeted amount is used up

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The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Rina spends all of her money on comic books and beignets. In 2011 she earned $14.00 per hour, the price of a comic book was $7.00, and the price of a beignet was $2.00. Which of the following give the nominal value of a variable? Check all that apply. __ Rina's wage is 2 comic books per hour in 2011. __The price of a beignet is $2.00 in 2011. __ Rina's wage is $14.00 per hour in 2011. Which of the following give the real value of a variable? Check all that apply. __Rina's wage is $14.00 per hour in 2011. __The price of a comic book is 3.5 beignets in 2011. __Rina's wage is 7 beignets per hour in 2011. Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Rina's wage has risen to $28.00 per hour. The price of a comic book is $14.00 and the price of a beignet is $4.00. In 2016, the relative price of a comic book is ( 0.29 beignets, 3.5 beignets, $4.00, $14.00) Between 2011 and 2016, the nominal value of Rina's wage (decreases, increases, remains the same) and the real value of her wage(decreases,increases,remains the same) . Monetary neutrality is the proposition that a change in the money supply (does not affect, affect) nominal variables and ( does not affect, affect) real variables.

Mixed Costs and Cost Formula Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each piece as his fee. Space is limited, and there are costs involved, so Ben is careful about accepting artists. When he does accept one, he arranges for an opening show (usually for 3 hours on a weekend night) and sends out invitations to his customer list. At the opening, he serves wine, soft drinks, and appetizers to create a comfortable environment for prospective customers to view the new works and to chat with the artist. On average, each opening costs $600. Ben has given as many as 20 opening shows in a year. The total cost of running the gallery, including rent, furniture and fixtures, utilities, and a part-time assistant, amounts to $120,000 per year.Required:1. Assume that the cost driver is number of opening shows. Develop the cost formula for the gallery's costs for a year.
2. Using the cost formula developed above, what is the total cost for Ben in a year with 12 opening shows?
$
Using the cost formula developed above, what is the total cost for Ben in a year with 14 opening shows?
$

Answers

Answer:

$136,200 is the total costs for 14 opening shows

Explanation:

See attached file

Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Effective Decrease in Outstanding
interest interest balance balance
1/1/2021 $207,020
6/30/2021 $7,000 $6,211 $789 206,230
12/31/2021 7,000 6,187 813 205,417
6/30/2022 7,000 6,163 837 204,580
12/31/2022 7,000 6,137 863 203,717
6/30/2023 7,000 6,112 888 202,829
12/31/2023 7,000 6,085 915 201,913
6/30/2024 7,000 6,057 943 200,971
12/31/2024 7,000 6,029 971 200,000
What is the annual stated interest rate on the bonds?
a. 3.5%
b. 6%
c. 7%
d. none of the above

Answers

Answer:

c. 7%

Explanation:

According to the given scenario, the computation of the annual stated interest rate on the bonds is shown below:-

Sated interest Rate = Cash interest ÷ Face Value of the bond × 2

= $7,000÷ $200,000 × 2

= 7%

Therefore for computing the annual stated interest rate on the bonds we simply applied the above formula. hence the correct option is c

According to the modern view of the Phillips curve, expansionary macroeconomic policy that leads to inflation will reduce unemploymenta. only if people underestimate the inflationary side effects of the policy.

b. only if people overestimate the inflationary side effects of the policy.

c. if people accurately anticipate the inflationary side effects of the policy.

d. only if monetary policy provides the macroeconomic stimulus.

Answers

Answer:

a. only if people underestimate the inflationary side effects of the policy.

Explanation:

The modern Phillips curve suggests that as inflation increases, unemployment reduces and vice versa dependent on two factors; the level of inflation and the excess of growth rate of wages over the expected inflation. The larger the excess, the greater the effect of the expansionary monetary policy. Thus, if it is underestimated, then the unemployment will greatly reduce.

James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 5 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $540,000. The sales price per pair of shoes is $77, while the variable cost is $29. Fixed costs of $245,000 per year are attributed to the machine. The corporate tax rate is 22 percent and the appropriate discount rate is 9 percent. What is the financial break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)

Answers

Answer:

3,074 units sold or total revenue of $236,698 per year

Explanation:

cost of machine $540,000

depreciation expense per year = $540,000 / 5 = $108,000

contribution margin per unit sold = $77 - $29 = $48

we generally calculate the financial break even point of a business by using the following formula:

= EBIT × (1 - interest expense) × (1 - tax rate) - preferred dividends

But when we are dealing with projects, the financial break even point is the sales level at which the project's NPV = $0. If the sales level is lower, then the project will be rejected, and if the sales level is higher, then it should be accepted.

using an annuity formula, the free cash flow per year needed for the NPV = $0 is $540,000 / 3.8897 (PV annuity factor, 9%, 5 periods) = $138,828.19

$138,828.19 = {[(unit sales x $48) - $108,000] x 0.78} + $108,000

$30,828.19 = [(unit sales x $48) - $108,000] x 0.78

$39,523.32 = (unit sales x $48) - $108,000

$147,523.32 = unit sales x $48

unit sales = $147,523.32 / $48 = 3,073.40 units ≈ 3,074 units sold

Final answer:

The financial break-even point is approximately 5,104 units.

Explanation:

The financial break-even point can be calculated by determining the number of units that need to be sold in order to cover the fixed costs. First, we need to calculate the contribution margin per unit, which is the sales price per unit minus the variable cost per unit. In this case, it is $77 - $29 = $48. Next, we divide the fixed costs by the contribution margin per unit to find the break-even point in units. Using the formula: Break-even point (in units) = Fixed costs / Contribution margin per unit. Plugging in the numbers, we get: $245,000 / $48 = 5,104.17. Therefore, the financial break-even point is approximately 5,104 units.

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On December 1, 2016, Insto Photo Company purchased merchandise, invoice price $25,000, and issued a 12%, 120-day note to Ringo Chemicals Company. Insto uses the calendar year as its fiscal year and uses the perpetual inventory system.

Answers

Answer:

See explanation section

Explanation:

Requirement A

Insto Photo Company

Journal Entries

Date Accounts Name Debit Credit

December 1, 2016 Inventory $25,000

Notes payable $25,000

Note: As the merchandise company issued a note for the credit purchase of merchandise inventory, notes payable is used instead of accounts payable.

Dec. 31, 2016 Interest expense $250

Interest payable $250

Note: Adjusting entry is needed as the fiscal year is ended on 31st December, therefore, there will be an accrued interest expense to be paid for one month. The calculation of interest expense = $25,000 × 12% × (30 ÷ 360) [assuming 1 year = 360 days, 1 month = 30 days]. = $250 for one month's accrual.

Requirement B

March 31, 2017 Interest expense $ 750

Interest payable $ 250

Notes payable $25,000

Cash $26,000

Note: At the end of the maturity date, the buyer will pay all the bills of the notes plus interest. Interest payable becomes debit as it did not pay by the buyer on 31st December, 2016. The remaining interest = $25,000 × 12% × (90 ÷ 360) = $750. Total cash will be paid after the maturity = $25,000 + $250 + $750 = $26,000.

When other things remain equal, buyers are expected to stock up from the normal product that they expect its market price to decline significantly in the soon future.a) true
b) false

Answers

Answer:b) false

Explanation:

They would not want to stock up on something that the market price will decline significantly on, they would do the opposite

Answer:

False

Explanation:

This is false, they would want to do the opposite, not stock up

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A company is considering the purchase of a new machine for $49,000. Management predicts that the machine can produce sales of $16,100 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,900 per year including depreciation of $4,100 per year. Income tax expense is $3,280 per year based on a tax rate of 40%. What is the payback period for the new machine?

Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every four weeks. Data for both products are as follows: ITEMTEGDIWWIDGET Annual demand 11,000 8,000 Holding cost (% of item cost) 10% 20% Setup or order cost$110.00 $10.00 Lead time 4weeks 4week Safety stock 65units 7units Item cost$15 $8