BUSINESS COLLEGE

You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,800 at the end of each year for the next 11 years. You expect to earn 7 percent each year. Required: 1. Determine how much you will have saved after 11 years. 2. Determine the amount saved if you were able to deposit $33,300 each year. 3. Determine the amount saved if you deposit $30,800 each year, but with 11 percent interest.

Answers

Answer 1

Answer:

Answer:

1. $486,134.86

2. $525,593.86

3. $602,492.04

Explanation:

You need to use the formula to calculate the future value of a constant annual deposit:

$Future\text{ }value=Deposit* \bigg[((1+r)^n-1)/(r)\bigg]$

Where r is the expected percent return, and n the number of years.

1. For a deposit of $30,800 at the end of each year for the next 11 years, with 7% interest.

You will have saved:

$Future\text{ }value=\$ 30,800* \bigg[((1+0.07)^(11)-1)/(0.07)\bigg]$

$Future\text{ }value=\$ 30,800* 15.7835993=\$486,134.86$

2. For a deposit of $33,300 each year, for the same number of years and with the same interest rate.

You will have saved:

$Future\text{ }value=\$ 33,300* \bigg[((1+0.07)^(11)-1)/(0.07)\bigg]$

$Future\text{ }value=\$ 33,300* 15.7835993=\$525,593.86$

3. For a deposit of $30,800 each year, but with 11 percent interest, for 11 years.

$Future\text{ }value=\$ 30,800* \bigg[((1+0.11)^(11)-1)/(0.11)\bigg]$

$Future\text{ }value=\$ 30,800* 19.56143=\$602,492.04$

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Plemmon Company adds materials at the beginning of the process in the forming department, which is the first of two stages of its production cycle. Information concerning the materials used in the forming department in April follows: Units MaterialsCosts Work in process at April 1 15,000 $ 8,000 Units started during April 60,000 $38,500 Units completed and transferred to next department during April 65,000 Using the average cost method, what is the materials cost of the work in process at April 30?

Answers

Answer:

$6,200

Explanation:

Beginning Work in progress $15,000 $8,000

Units started $60,000 $38,500

Total process $75,000 $46,500

Less: Units transferred to tax $65,000

Ending work in progress $10,000

Average cost method material cost of work in progress = Material cost ÷ Total units

$46,500 ÷ $75,000

= $0.62

Material cost of work in progress = $0.62 × $10,000

= $6,200

Final answer:

In April, Plemmon Company started with $8000 worth of materials and used $38500 over the month. 65,000 units were completed, leaving 10,000 units still in process. The materials cost of these remaining units, calculated using the average cost method, is $6,200.

Explanation:

To find the material cost of work in process at April 30 using the average cost method, we first need to calculate the total cost of material used throughout April, which includes both the cost of materials from initial work in process and the materials started during the month. That gives us the sum of $8,000 and $38,500, amounting to $46,500 in total materials cost. Since 65,000 units were completed and transferred out during April, this means 10,000 units (75,000 units at the start and started during April - 65,000 units completed) remain in work in process at the end of April. Average cost per unit is calculated as total cost divided by total units, giving us $46,500 divided by 75,000 units, which equals $0.62 per unit. The material cost of work in process at April 30 is thus 10,000 units times $0.62, giving a result of $6,200.

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Nuzum Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: Total Company Division M Division N Sales $557,000 $254,000 $303,000 Variable expenses 144,910 81,280 63,630 Contribution margin 412,090 172,720 239,370 Traceable fixed expenses 273,000 128,000 145,000 Segment margin 139,090 44,720 94,370 Common fixed expenses 94,690 43,180 51,510 Net operating income $ 44,400 $ 1,540 $ 42,860 Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to:

Answers

Answer:

$ 183,544.30 = $ 183,544

Explanation:

Nuzum Corporation

Total Division M Division N

Sales $557,000 $254,000 $303,000

Variable expenses 144,910 81,280 63,630

Contribution margin 412,090 172,720 239,370

Traceable fixed expenses 273,000 128,000 145,000

Segment margin 139,090 44,720 94,370

Common fixed expenses 94,690 43,180 51,510

Net operating income $ 44,400 $ 1,540 $ 42,860

First we find the Segment CM ratio by the following formula:

Segment Contribution Margin Ratio= Segment Sales- Segment Variable Expenses/ Sales

Segment Contribution Margin Ratio= 303,000 -63630/303000

Segment Contribution Margin Ratio= 239370/303000=0.79

Then we find the break even sales in dollars.

Break Even Sales in Dollars= Traceable Fixed Expense/ Segment Contribution Margin Ratio

Break Even Sales in Dollars =145,000/0.79= $ 183,544.303

Jolsan Technologies had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 4,500 hours and cost $24,000 in materials and equipment usage. Labor cost is charged at $20 per hour. The prime contractor has now approached Jolsan Technologies and asked to submit a bid for the cost of producing another 20 guidance controls. Use Exhibit 6.4 and Exhibit 6.5. What will the last unit cost to build

Answers

Answer:

$73,600

Explanation:

A learning curve is a correlation between a learner's performance on a task and the number of attempts or time required to complete the task; this can be represented as a direct proportion on a graph

The last unit will be 22nd unit .

Using learning curve table ,

Time required to build 22nd unit = 3125.49 hours

labour cost to build 22nd unit ( $20 per hour ) = $20 x $3125.49

labour cost to build 22nd unit = $62509.80

Using learning curve table ,

material and equipment cost to build 22nd unit = $11090.67

Therefore,

total cost to build the last unit = Labour cost + Material and equipment cost total cost to build the last unit = $62509.80 + $11090.67

total cost to build the last unit = $73600.47

Learning rate for labour hours ( L1) = Time for 2nd unit / Time for 1st unit

Learning rate for labour hours ( L1) = 4500/5000

Learning rate for labour hours ( L1) = 0.90

Learning rate for material and equipment usage

Learning rate for material and equipment usage = Material and equipment cost for 2nd item / Material and equipment cost for 1st item

Learning rate for material and equipment usage = 24000/30000

Learning rate for material and equipment usage = 0.80 or 80 %

You are considering an investment in a mutual fund with two share classes, A and B. Class A has back-end load that start at 4% and fall by 1% for each full year the investor holds the portfolio (until the fourth year) and management fee of 0.5%. Class B has no load but has management fee of 0.5% and 12b-1 fee of 1%. Suppose the gross return of this fund is a constant 10% per year. If you plan to invest for 2 years, your holding-period return from the two share classes would be 17.5% and 17.7%
15.1% and 17.7%
17.5% and 18.8%
15.1% and 18.8%
None of the above options is correct.

Answers

Add all together and total number you will get substract it from your main answers

Pronghorn Corp has 8,300 shares of common stock outstanding. It declares a $3 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend.

Answers

Answer:

dividends 24,900

dividen payable 24,900

to record declaration of dividends

dividend payable 24,900

cash 24,900

to recored payment of dividends

Explanation:

amount of dividends:

8,300 shares x $3 per share = 24,900

dividends 24,900

dividend payable 24,900

to record declaration of dividends

we post the dividends declared and we post the payable

dividend payable 24,900

cash 24,900

to recored payment of dividends

we decrease the cash account and write-off the dividend payable

A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What's the correct entry to record the transaction?

Answers

The correct entry to record the transaction concerning the company's sale of 10,000 shares of previously authorized stock is a debit to Cash of $100,000 and a credit to Common Stock $100,000.

Data Analysis:

Number of shares sold = 10,000

Par value =$10 per share

Cash $100,000 Common Stock $100,000

Thus, the correct entry to record this stock sale is a debit to Cash of $100,000 and a credit to Common Stock $100,000.

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Final answer:

The correct journal entry to record the transaction would be to debit Cash for $100,000 and credit Common Stock for $100,000 in line with the number of shares sold and their par value.

Explanation:

When a company sells shares of its authorized stock at par value, the funds received are recorded in the company's financial accounts. The correct journal entry would be to debit (increase) Cash, and credit (increase) Common Stock. In this scenario, where 10,000 shares of stock are sold at a par value of $10 per share, this would result in a $100,000 increase in both the company's Cash and Common Stock accounts. The journal entry would look like this:

Debit Cash $100,000
Credit Common Stock $100,000

It is crucial to understand the stock issuing process, such as rate of return, in the business world. Investors purchase stock with an expectation either to receive dividends or to experience a capital gain- an increase in the stock value.

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