BUSINESS COLLEGE

Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)What is the optimal production quantity for the card?

Answers

Answer 1

Answer:

Answer:

≈ 9644 quantity of card

Explanation:

given data:

n = 4 regions/areas

mean demand = 2300

standard deviation = 200

cost of card (c) = $0.5

selling price (p) = $3.75

salvage value of card ( v ) = $ 0

The optimal production quantity for the card can be calculated using this formula below

= u + z (0.8667 ) * б

= 9200 + 1.110926 * 400

≈ 9644 quantity of card

First we have to find u

u = n * mean demand

= 4 * 2300 = 9200

next we find the value of Z

Z = ( $(p-c)/(p-v)$ )

= ( 3.75 - 0.5 ) / 3.75 = 0.8667

Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )

next we find б

б = 200 $√(n)$ = 400

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Your company has money to invest in an employee benefit plan and you have been chosen to be the plan's trustee. As an employee you want to maximize the interest earned on this investment and have found an account that pays 10% compounded continuously. Your company is providing you with $ 1,500 per month to put into your account for 10 years. What will be the balance in this account at the end of the 10-year period

Answers

Answer:

The balance in this account at the end of the 10-year period is 310000

Explanation:

Solution

Given that:

Now, Recall that,

Time period is = 10 yrs = 12*10 = 120 months

Interest = 10%

= 10%/12 = 0.8333% per month continuously compounded .

Thus,

The rate effective per month = e^r - 1 = e^0.0083333 - 1 = 0.00836815

so,

The month per = 1500

The value of future deposit = 1500 * (F/A,0.836815%,120)

= 1500 * [((1 + 0.00836815)^120 - 1)/ 0.00836815]

= 1500 * [((1.00836815)^120 - 1)/ 0.00836815]

= 1500 * 205.3359

= 308003.89

which is also = 310000 (nearest value)

if viewed from a flow standpoint, the stage of configuration management that has provision for variable routing to the next step, depending on outcome at this stage, is:

Answers

If viewed from a flow standpoint, the stage of configuration management that has provision for variable routing to the next step, depending on outcome at this stage, configuration control.

What is configuration control?

Process for regulating hardware, software, firmware, and documentation alterations to safeguard the information system from unauthorised alterations before, during, and after system deployment. In military and technology development environments, configuration control is frequently employed. By making sure that any changes are thoroughly tested before being incorporated into the finished product, it can lower the likelihood of failure or malfunction.

What does the configuration serve?

The process of configuration management involves keeping software, servers, and computer systems in a consistent, desirable condition. It's a method of ensuring that a system functions as expected as modifications are made to it over time.

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On January 1, Year 1, Hanover Corporation issued bonds with a $57,750 face value, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were issued at 97. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year. The journal entry used to record the issuance of the bond and the receipt of cash would be:

Answers

Answer:

January 1, Year 1 Cash $56017.5 Dr

Discount on Bonds Payable $1732.5 Dr

Bonds Payable $57750 Cr

Explanation:

The value of bonds which are issued at par is denoted by 100. If the bonds are issued at anything above 100 denomination, this means that the bonds are issued at a premium and if the denoted figure is less than 100, like in this question it is 97, the bonds are issued at a discount.

The cash received on the issuance of this bond will be 97% of the face value of the bond and the 3% will be the discount on the issuance of these bonds.

Thus, the cash received is = 57750 * 97% = $56017.5

The discount on Bonds Payable = 57750 - 56017.5 = $1732.5

The journal entry to record the bond issuance and the receipt of cash would be:

Date Account title Debit Credit

Year 1 Cash $56,017.5

Discount on Bonds Payable $1, 732.5 Dr

Bonds Payable $57, 750 Cr

How to make the journal entry?

Since the bonds were issued at 97, this means they were issued at a discount. The discount on bonds payable is the difference between the face value and the issue price.

Issue Price = $57,750 x 97%

= $56,017.50

Bond Discount = $57,750 - $56,017.50

= $1,732.50

The journal entry to record the issuance of the bonds on January 1, Year 1, would include:

Debit Cash for the amount received ($56,017.50).

Debit Discount on Bonds Payable for the discount amount ($1,732.50).

Credit Bonds Payable for the face value of the bonds ($57,750).

This entry reflects the receipt of cash and the creation of a liability for the face value of the bonds. The discount account represents the additional interest expense that will be recognized over the life of the bonds.

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Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million in revenues. Based on this information, what is accounting profit for Laura's Pizza Place

Answers

Answer:

$500,000

Explanation:

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,000,000 Variable expenses 390,000 Contribution margin 610,000 Fixed expenses 625,000 Net operating income (loss) $ (15,000 ) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 250,000 $ 400,000 $ 350,000 Variable expenses as a percentage of sales 52 % 30 % 40 % Traceable fixed expenses $ 160,000 $ 200,000 $ 175,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it would increase that division's sales by 20%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? 2-b. Would you recommend the increased advertising?

Answers

Answer:

$\left[\begin{array}{ccccc}&East&Central&West&Total\nSales&250000&400000&350000&1000000\nVariable Cost&-130000&-120000&-140000&-390000\nContribution&120000&280000&210000&610000\nTracable fixed&-160000&-200000&-175000&-535000\nOperating Income&-40000&80000&35000&75000\nCommon&&&&-90000\nNet Income&&&&-15000\n\end{array}\right]$

Income Smatement will increase by 27,000

Therefore to 13,000 net income from 15,000 net loss.

I would recommended.

Explanation:

We will calcualte the contribution per division and the opèrating income at division level. Then, we apply the common fixed cost and get the net income.

Increase of West division sales by 20%

350,000 x 20% = 70,000

70,000 x ( 1-40%) = 42,000 increase in contribution

less 15,000 adertizing cost: 27,000

Answer: (1) Divisional segmented margin East ($40,000) Central $80,000, West $35,000 (2) incremental profit $27,000 (b ) I would recommend the increased advertising because it would increase profit by $27,000

Explanation:

East. Central. West. Total

Sales 250,000. 400,000. 350,000. 1,000,000

Less:variable

Expenses 130,000. 120,000. 140,000. 390,000

---------------- ------------------ ------------------- -------------------

Contribution

Margin. 120,000. 280,000. 210,000. 610,000

Traceable fixed

Expenses. 160,000. 200,000. 175,000. 535,000

Divisional

Segmented margin (40,000) 80,000. 35,000. 75,000

Common fixed

Expenses not traceable to

Division. - - - 90,000

Net operating income (loss) - - - (15,000)

Working of common fixed expenses not traceable to division

Fixed Expenses - Total traceable fixed expenses

625,000 - 535,000 = 90,000

(2)

Incremental contribution (0.2 × 210,000) 42,000

Less : Fixed cost. 15,000

-----------------

Incremental profit. 27,000

-------------------

(b) I would recommend the increased advertising because it would increase profit by $27,000

A firm has the following accounts and financial data for 2017: Sales Revenue $3,060 Accounts Receivable $500 Interest Expense $146 Total Operating Expenses $600 Cost of Goods Sold $1,800 Preferred Stock Dividends $28 Accounts Payable $240 Inventory $200 Number of Common Shares Outstanding 1,000 Tax Rate 40% The firm's earnings per share for 2017 is ________.