Markson Company had the following results of operations for the past year: Sales (8,000 units at $20) $ 160,000 Variable manufacturing costs $ 86,000 Fixed manufacturing costs 15,000 Variable administrative expenses 12,000 Fixed selling and administrative expenses 20,000 (133,000 ) Operating income $ 27,000 A foreign company offers to buy 2,000 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson’s annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:

Answers

Answer 1

Answer:

Answer:

Increase in profit $ 1900

Explanation:

To determine the additional profit from the special order, we would consider only the costs and revenue relevant to the special order decision:

Unit relevant cost = Total variable cost/Units produced

Total variable costs = 86,000 + 12,000 =$98000

Unit relevant cost = 98,000/8,000 = $12.25

Note that fixed costs are irrelevant, whether or not the special order is accepted the fixed manufacturing and administrative expenses would be incurred. Hence, they are excluded from the computation.

Revenue from the special order ( $14× 2,000) = 28,000

Relevant costs of special order ( $12.25× 2,000) (24,500)

Cost of special tools (1,600)

Increase in profit 1900

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A bond with a coupon rate of 5.16 percent and semiannual coupon payments matures in 12 years. The YTM is 6.37 percent. What is the effective annual yield?
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"Which statements are TRUE about variable annuities? I Contributions to the separate account are tax deductible II Contributions to the separate account are not tax deductible III Earnings in the separate account build tax-deferred IV Earnings in the separate account are taxable each year"

Answers

Answer: II Contributions to the separate account are not tax deductible

III Earnings in the separate account build tax-deferred

Explanation:

Variable Annuities represent an investment vehicle where one puts money in a certain type of investment with the goal being that they will earn an income in retirement which is dependent on how their chosen investment performed therefore making the payout variable.

Contributions to the separate account are not tax deductible. The tax advantage of Variable annuity contracts instead is that the income earned from the annuity gets to build tax-deferred with taxes only applying to them when a withdrawal is made.

The total overhead variance is the difference between actual overhead costs and overhead costs applied to work done.a) true
b) false

Answers

The total overhead variance is the difference between actual overhead cost and overhead cost applied to work done is True

Final answer:

The statement in question is true. Overhead variance is determined by the difference between actual and applied overhead costs. This kind of analysis helps in understanding cost inefficiencies and making future budgets.

Explanation:

The statement 'The total overhead variance is the difference between actual overhead costs and overhead costs applied to work done' is true. In cost accounting, overhead variance is indeed determined by the difference between the real, or actual overhead expenses for a certain period and the overhead costs which were anticipated or pre-applied to the work done in that same period. This kind of variance analysis helps the business to understand where and how their cost estimates were off, and make necessary adjustments for future cost predictions and budgeting. For example, if the actual overhead costs are higher than the applied overhead costs, it could signify inefficiency in the production process. Conversely, if the applied overhead costs are higher than the actual costs, it signifies cost efficiency.

Learn more about Overhead Variance here:

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Zimmerman, a real estate salesman, asked Robertson if she was interested in selling her property. Robertson said she might be. Zimmerman came to Robertson with an offer by Velten to buy the property. Both parties signed a contract for sale. Zimmerman told Robertson he was being paid a commission by Velten. Before the deal on the property was to close, Robertson asked for a copy of the agreement between Zimmerman and Velten, but they refused. Robertson refused to go through with the deal. Velten sued, claiming there was a valid contract. Robertson said that Zimmerman violated his fiduciary duty to her to disclose his interests. Is the deal valid?

Answers

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Roman loves corn bread. He buys corn meal and wheat flour in order to make corn bread. His recipe calls for two cups of corn meal and one cup of flour for each batch that he bakes. More corn bread is better for Roman. He can bake fractions of a batch, but has no use for corn meal or flour that is left over. What of the following is Roman’s utility function on cups of corn meal, denoted by c, and cups of flour, denoted by f?(A) U(c,f)=min{c,2f}
(B) U(c,f)=min{2c,f}
(C) U(c,f)=min{2c,3f}
(D) U(c,f)=min{3c,sf}
(D) U(c,f)=2c+3f

Answers

Answer:

(B) U(c,f)=min{2c,f}

Explanation:

This is an example of Leontif utility function which states that the preferences of a consumer is to a constant ratio of quantities of two or more goods in his demand bundles and having an extra unit of a single good will not increase the utility of the consumer and will make the extra unit to waste. But having more units of all the goods in the demand bundle which maintain the constant ratio will increase the utility of the consumer.

A good example usually used in economics is that of a pair of shoe. Having one right and one left of a type of shoe gives a consumer utility at a constant ratio of 1:1, and increasing each leg by multiple of one at every point in time will increase the utility of the consumer, while increasing just only one makes the utility not to change. For instance, having only two left shoe will not give the consumer any utility and make both the left shoe useless.

In the question, the ratio of cups of corn meal, denoted by c, and cups of flour, denoted by f, is 2:1. This implies that to increase the utility of the consumer, c has to increase by a multiple of 2 at every point in time while f has to increase by one at the same point in time to maintain the constant ratio of 2:1. Increasing only c by 2 or only f by 1 will maintain the constant ratio and it will lead to a waste of the increased unit of the affected commodity.

Therefore, option (B) U(c,f)=min{2c,f} is the correct answer that gives a constant ratio of 2:1 = 2c:f.

I wish you the best.

) Candy Man, Inc. reports the following information: Beginning Finished Goods Inventory 60 units Units produced 550 units Units sold 610 units Sales price $130 per unit Direct materials $17 per unit Direct labor $10 per unit Variable manufacturing overhead $17 per unit Fixed manufacturing overhead $14,000 per year Variable selling and administrative costs $6 per unit Fixed selling and administrative costs $12,500 per year What is the unit product cost using variable costing

Answers

Answer:

$44

Explanation:

Given that

Direct material cost = $17

Direct labor cost = $10

Variable manufacturing overhead = $17

The computation of unit product cost using variable costing is shown below:-

Unit product cost = Direct material cost + Direct labor cost + Variable manufacturing overhead

= $17 per unit + $10 per unit + $17 per unit

= $44

Therefore for computing the unit product cost we simply added the direct material cost, direct labor cost and variable manufacturing overhead.

You are considering buying a 30-year U.S. Treasury bond but are nervous about the effect on bond price if the yield to maturity on the bond increases. The bond has a 3% coupon rate and pays coupons semi-annually. The duration is 18 years. Suppose that interest rates on this bond rise by 1.8%. Calculate the corresponding percentage change in the price of the bond using the approximation method based on bond duration. Give your answer in percent to one decimal place. If the price decreases, then include a minus sign; if the price increases, do not include any sign. Do not type the % symbol.

Answers

Answer:

The corresponding percentage change in the price of the bond using the approximation method based on the bond duration is -3.24%

Explanation:

In this question, we are to calculate the corresponding percentage change in the price of the bonds using the approximation method based on the bond duration.

Mathematically, approximate change in bond price = -(Duration × Change in yield)

From the question, we identify that the duration is 18 years while the change in yield is 1.8% = 1.8/100 = 0.18

We plug this in the equation above;

The approximate change in bond price is thus; -(18 × 0.18) = -3.24%

Other Questions

You are depositing $1,234 in a saving account now and two years from now you deposit another $2,345 into the same savings account that earns 3.456% annual interest. How much money will you have at the end of 8 years?

Dorothea orginally sold her home for $92,000. At that time, her adjusted basis in the home was $95,000. Five years later, she repossessed the home when the balance of the note was $87,000. She resold it within one year for $100,000. Original sale expenses were $1,150 and reslae expenses were $1,350. Repossession costs were $2,900. She incurred $1,100 for improvements prior to the resale. What is Dorothea's recomputed gain?

Use the following selected balance sheet and income statement information for Caroline Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent.Operating profit before tax Earnings without interest expense (EWI) Average total assets Sales Tax rate on operating profit$58,300 $93,400 $360,600 $1,135,420 35%

An inferior good is Multiple Choice A. one whose demand curve will shift rightward as incomes rise. B. not accurately defined by any of these statements. C. one that has not been approved by the Federal Food and Drug Administration. D. one whose price and quantity demanded vary directly.