BUSINESS COLLEGE

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs.Assume that Minneapolis’ sales by major market are:
Market
Minneapolis Medical Dental
Sales $ 330,000 100 % $ 220,000 100 % $ 110,000 100 %
Variable expenses 198,000 60 % 143,000 65 % 55,000 50 %

Contribution margin 132,000 40 % 77,000 35 % 55,000 50 %
Traceable fixed expenses 39,600 12 % 11,000 5 % 28,600 26 %

Market segment margin 92,400 28 % $ 66,000 30 % $ 26,400 24 %

Common fixed expenses
not traceable to markets 9,900 3 %

Office segment margin $ 82,500 25 %


The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $38,500 or increase sales in the Dental market by $33,000.
Required:
Calculate the increased segment margin.for Medical:
Calculate the increased segment margin for Dental:

Answers

Answer 1
Answer:

Answer:

Increase Segment margin for Medial = $9,075  

Increase Segment margin for Dental = $12,100

Explanation:

The calculation of  increased segment margin.for Medical and Dental is shown below:-

                                 Medical                       Dental

Incremental Sales     $38,500                    $33,000

Less: Variable Cost  ($25,025)                  ($16,500)

(Medical 65% and ($38,500  × 65%)    ($33,000  × 50%)

Dental 50%)  

Incremental

Contribution Margin   $13,475                      $16,500

Less: Traceable

Advertising Cost       ($4,400)                         ($4,400)

Increase Segment

Margin                       $9,075                          $12,100

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Megan Brink is offered the possibility of investing $6,651 today at 6% interest per year in a desire to accumulate $10,000. How many years must Brink wait to accumulate $10,000
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Right Medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $15 million and actual warranty expenditures were $20,000 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year? (Enter your answers in whole dollars.)

Answers

Answer:

warranty liability $ 130,000

Explanation:

the warrant liability will de clared based on sales volume and the expected warranty expenditures associate with sales.

This is done to match the expenses of the warranty with the period on which are generated. If don't further period will have expenditures which related to sales of prior periods.

Having said that we proceeds:

warranty liability:

15,000,000 x 1% =         150,000

warranty expenditures (20,000)

                       net          130,000

the company still spect this sales will generate additioal warranty expenditres for 130,000 dollars. this is a liability.

Final answer:

Based on an expected 1% of sales as warranty costs, Right Medical should report a warranty liability of $130,000 at year-end, subtracting the actual costs ($20,000) from the expected costs ($150,000).

Explanation:

The question revolves around estimating the warranty liability that Right Medical should report at the end of the year after introducing a new implant with a five-year warranty. Based on industry standards, warranty costs are expected to be 1% of sales. The company did indeed incur actual warranty expenditures of $20,000, however, the expectation based on sales would be $150,000 (1% of $15 million). Since the actual expenditures are lower than expected, the company should report the difference between the expected cost (calculated as 1% of sales) and the actual cost as the warranty liability. Therefore, Right Medical should report a liability of $150,000 - $20,000 = $130,000 at the end of the year.

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CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017. Variable cost per unit is $60, and total fixed costs are $1,640,000.Required:1. Calculate (a) contribution margin and (b) operating income.2. Garrett’s current manufacturing process is labor intensive. Kate Schoenen, Garrett’s production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the ­annual fixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. ­Garrett expects to maintain the same sales volume and selling price next year. How would acceptance of Schoenen’s proposal affect your answers to (a) and (b) in requirement 1?3. Should Garrett accept Schoenen’s proposal? Explain.

Answers

Answer:

a) 8 dollars

b) 1,640,000

2.-  It should be rejected as decreases operating income to 410,000 from 1,640,000

contribution margin: $14

operating income: $ 410,000

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

68 - 60 = 8

b)

units sold x $8 contribution less fixed cost

410,000 x 8 - 1,640,000 = 1,640,000

2 contribution margin:

68 - 54 = 14

410,000 x 14 - 5,330,000 = 410,000

Maddy purchases 2 pounds of beans and 3 pounds of rice per month when the price of beans is S2 per pound. She purchases 1 pounds of beans and 4 pounds of rice per month when the price of beans is $3 per pound. Maddy's cross- price elasticity of demand for beans and rice is A. -0.71, and they are complements B. 0.71, and they are substitutes. C. 1.4, and they are substitutes D. -1.4, and they are complements

Answers

Final answer:

Maddy's cross-price elasticity of demand for beans and rice is -1, and they are complements.

Explanation:

The cross-price elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. It is calculated as the percentage change in the quantity demanded of one good divided by the percentage change in the price of the other good. In this case, Maddy's cross-price elasticity of demand for beans and rice can be calculated using the formula:

Cross-Price Elasticity = ((Q2 - Q1) / (Q1)) / ((P2 - P1) / (P1))

Calculating the values:

Q1 = 2 pounds of beans per month

Q2 = 1 pounds of beans per month

P1 = $2 per pound of beans

P2 = $3 per pound of beans

Substituting the values into the formula:

Cross-Price Elasticity = ((1 - 2) / (2)) / ((3 - 2) / (2)) = -0.5 / 0.5 = -1

The cross-price elasticity of demand for beans and rice is -1, which indicates that they are complementary goods. When the price of beans increases, the quantity demanded of beans decreases, and as a result, Maddy purchases less rice as well.

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Aragon Company has just received the August 21, 2010 bank statement, which is summarized below. County National Bank Disbursements Receipts Balance

Balance, August 1 $9,369

Deposits during August $32,200 41,569

Note Collected for depositor, including $40 interest 1,040 42,609

Checks cleared during August $34,500 8,109

Bank Service Charges 20 8,089

Balance, August 31 8,089

The general ledger Cash account contained the following entries for the month of August.

Cash

Balance, August 1 10,050 Disbursements for August 35,403

Receipts during August 35,000

Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.

Instrustions:

a. Preare a bank reconciliation dated August 31, 2010, proceeding to a correct balance.

b. Prepare any entries necessary to make the books correct and complete.

c. What amount of chas should be reported in the August 31 balance sheet?

Answers

a. The preparation of the bank reconciliation is shown below.

b. The entries are given below.

c. The amount of cash should be $10,649.

Preparation, journal entries:

a. The preparation of the bank reconciliation is presented below.

Bank balance as per bank statement $8,089

Add: cash on hand $310

Add: deposit in transit $3.800

Less: outstanding checks $1,550

Adjusted balance $10,649

Balance as per cash book ($10,050 + $35,000 - $35,403) $9,647

Less: correction ($164.5 - $146.5) $18

Less: bank service charge $20

Add: note collected $1,040

Adjusted balance $10,649

b. The journal entries:

Cash $1,040

  Note receivable $1000

 Interest receivable $40

(Being collection od note & interest)

Bank charges $20

      cash $20

(being bank charges are recorded)

Supplies expense $18

         cash $18

(Being error in recording check)

c. The amount of cash should be $10,649.

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Answer:

Complete solution in tabular form is given below for better understanding and demonstration.

Many demographers predict that the United States will have zero populationgrowth in the twenty-first century, in contrast to average population growth of about 1percent per year in the twentieth century. Use the Solow model to forecast the effect ofthis slowdown in population growth on the growth of total output and the growth ofoutput per person. Consider the effects both in the steady state and in the transition between steady states

Answers

Answer:

Check the explanation

Explanation:

  • The foremost thing is to first consider steady states. The Sluggish population growth rate swings in the line representing population growth and depreciation to the downward trend.
  • The new stable rate has a superior level of capital per worker thereby having a higher level of output per worker.
  • In Steady state, the entire output develops at rate n, whereas the output rate per worker grows at figure 0. Hence, slower population growth will hamper the figure of total output growth, but the rate of per-worker output growth will be the same.
  • Now reflect on the transition. We know that the constant-state level of output per worker is higher with little population growth. Hence, for the period of the transition to the new steady state, output per worker should grow at a rate faster than 0 for a sometime.

1. Understanding opportunity costYou work as an assistant coach on the university swim team and earn $15 per hour. One day, you decide to skip the hour-long practice and go to the county fair instead, which has an admission fee of $9.The total cost (valued in dollars) of skipping practice and going to the fair (including the opportunity cost of time) is .(A) $6
(B) $9
(C) $15
(D) $24

Answers

Answer:

Option (D) is correct.

Explanation:

Given that,

Money income earned as a swimming assistant coach at university = $15 per hour

Admission fee for the county fair = $9

Here, the opportunity cost of skipping the practice is the loss of money income from the coaching.

Therefore,

Total cost of skipping practice:

= Money income lost for one hour + Admission fee for the county fair

= $15 + $9

= $24

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