Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.$0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report is:_______.a. $235,000.b. $250,000.c. $255,000.d. $270,000.

Answers

Answer 1

Answer:

Answer:

c. $255,000

Explanation:

Rouge should report the following income for this quarter = $250,000 (net income) + $20,000 (cumulative effect loss) - $15,000 (25% of annual property taxes) = $255,000

Cumulative effects on inventory valuation occur when overstate or understate your inventory levels, which directly affects cost of goods sold and overall profits.

Related Questions

Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fridge with compartments for each employee, a sink, microwave, toaster oven, tables chairs, a rock wall, snacks for everyone, and maybe some other bells and whistles. Your managers think that by updating this area employees will not take as long of lunches. They understand this purchase will be at a cost. You are tasked with considering two different options and presenting them to management. Use a 5% interest rate. Walmart Kit Target First Cost $40,000 $65,000Annual Maintenance Cost $10,000 $12,000Salvage Value $12,000 $25,000Life Years 3 6 a. Using NPW (Net Present Worth Analysis) analysis determine which kitchen kit you should chooseb. Using EUAW (Equivalent Uniform Annual Worth) analysis determine which kitchen kit you should choose. C. You really want the Target kit because it looks nicer and has more bells and whistles. You are willing to keep these products around for longer and therefore extend the lives of these products. Perform the analysis to show that the Target option is the better choice. d. Now from your analysis in part b think about how ethical presenting this information to management would be. Write 2-3 sentences about how you would present this information in a way that showed your bias. You will be graded on your ability to consider two options in an ethical comparison and how you perceive your bias.
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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.
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Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 50 million hamburgers are being produced and sold at a price of $5.00. This outcome in the market for hamburgers is economically _________ because: a. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. b. Some hamburgers that are valued more highly by consumers than their opportunity cost of production are not being produced and sold c. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers.Which of the following must be true for a market to be able to achieve an efficient outcome? a. The market price is determined solely by the forces of supply of and demand for a good. b. Firms can freely enter or exit the market without any barriers. c. Private property rights are well-defined and enforced.

Cortez Company is planning to introduce a new product that will sell for $108 a unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year; Manufacturing overhead costs have not yet been estimated for the new product, but monthly date on total production and overhead costs for the post 24 months have been analyzed using simple linear regression. The following results were derive from the simple regression and provide the basis for overhead cost estimates for the new product. What percentage of the variation in overhead costs is explained by the independent variable? 82.8% 91.1% 99.4% 74.5% None of the above. What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours? $410,000.
$420,000.
$400,000.
$430,000.

Answers

Question: What percentage of the variation in overhead costs is explained by the independent variable

Answer: 82.8%

Explanation:

$R^(2)$ = 0.848 (84.8%), the explanation of variation in Y from the X regress

Question: What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours

Answer: $410,000

Explanation:

The equation resulting from this regression analysis is:

Total overhead = Estimated fixed cost + Estimated variable cost per labor hour x Labor hours

= Intercept estimate + Coefficient estimate on independent variable x 60,000 DLH

= 110000 + 5 x 60000 DLH

= 110000 + 300000

= 410000

Here is the full question with the appropriate tables.

Cortez Company is planning to introduce a new product that will sell for $108 a unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year;

Direct Materials $700,000

Direct Labor $720,000 (= $18 per hour × 40,000 hours)

Manufacturing overhead costs have not yet been estimated for the new product, but monthly date on total production and overhead costs for the post 24 months have been analyzed using simple linear regression. The following results were derive from the simple regression and provide the basis for overhead cost estimates for the new product.

Simple Regression Analysis Results.

Dependent variable-Factory overhead cost-Independent Variable-Direct labor hours Computed values

Intercept $ 120,0000

Coefficient on independent variable $ 5.00

Coefficient of correlation .920

R² .828

What percentage of the variation in overhead costs is explained by the independent variable? 82.8% 91.1% 99.4% 74.5% None of the above.

What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours?

$410,000.

$420,000.

$400,000.

$430,000.

Answer:

R² = 82.8%

$420,000

Explanation:

Given that:

R² = .828

The percentage of the variation in overhead costs explained by the independent variable in Y from the X regressor = $(.828)/(100)%$ %

= 82.8%

Given that:

direct labor-hours = 60,000

To calculate the Total overhead cost; we have:

(Total overhead) to be = Estimated fixed cost + estimated variable cost per

labor hour × labor-hours

= Intercept estimate + Coefficient estimate on

independent variable × 60,000 direct labor-hours

= $120,000 + ($5 × 60,000) direct labor-hours

= $120,000 + $300,000

= $420,000

∴ the total overhead cost for an estimated activity level of 60,000 direct labor-hours = $420,000.

1 pointif the price decreases from Rs
10 to Rs 8 of a commodity but
the quantity demanded
remains the same , price
elasticity is *
one
O zero
O infinity
O none of these

Answers

Answer:

O zero

Explanation:

Elasticity of demand is defined as the rate of change of quantity of a good demanded with change in price.

Commodities with low elasticity change a little with change in price, while those with high elasticity have a large change with change in price.

The formula for price elasticity is

Elasticity of demand = (% change in quantity demanded) ÷ (% change in price)

Assume the demand is 10 units

Elasticity of demand = ({10 - 10} ÷ 10 * 100) ÷ ({8 - 10} ÷ 10 * 100)

Elasticity of demand = (0) ÷ (-20)

Elasticity of demand = 0

Answer:

PED = 0

Explanation:

The PED or price elasticity of demand is a measure to track and determine the responsiveness of quantity demanded to changes in price of the commodity. The PED is calculated using the following formula,

PED = % Change in Quantity demanded / % Change in Price

PED = [( Q1 - Q0 ) / Q0] / [( P1 - P0 ) / P0]

Lets assume that at price 10 the quantity demanded was also 10 and when price decreased to 8, the quantity demanded remained the same i.e. 10

So,

PED = [( 10 - 10 ) / 10] / [( 8 - 10 ) / 10]

PED = 0

Thus, the price elasticity of demand is zero.

A profit margin of 10% indicates that: Multiple Choice for every $1 in net income, the company generates $0.10 in net sales. for every $1 in net income, the company generates $0.90 in net sales. for every $1 in net sales, the company generates $0.10 in net income. for every $1 in net sales, the company generates $0.90 in net income.

Answers

Answer:

A profit margin of 10% indicates that:

for every $1 in net sales, the company generates $0.10 in net income.

Explanation:

Company B's profit margin measures the degree to which the company makes extra money after deducting the expenses from the sales revenue. When expressed as a percentage, it indicates how many cents of profit has been generated for each dollar of sales.

Final answer:

A profit margin of 10% denotes that for every $1 in net sales, the company produces $0.10 in net income. It is calculated by dividing the net income by the net sales and multiplying the result by 100.

Explanation:

A profit margin of 10% indicates that for every $1 in net sales, the company generates $0.10 in net income. This is because the profit margin is calculated by dividing the net income by the net sales and then multiplying the result by 100 to get a percentage. In this case, a profit margin of 10% signifies that the company is able to generate 10 cents of profit from each dollar of sales.

Learn more about Profit Margin here:

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The manufacturing overhead budget at Rost Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,800 direct labor-hours will be required in September. The variable overhead rate is $7.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,120 per month, which includes depreciation of $3,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Answers

Answer:

Total overhead cash disbursement= $59,080

Explanation:

Giving the following information:

Estimated direct labor hours= 2,800

The variable overhead rate is $7.00 per direct labor-hour.

Estimated fixed manufacturing overhead= $43,120 per month

Includes depreciation of $3,640

To calculate the cash disbursement, we need to deduct from the fixed manufacturing overhead the depreciation expense because it is not a cash disbursement.

Variable overhead= 7*2,800= 19,600

Fixed overhead= 43,120-3,640= 39,480

Total overhead cash disbursement= $59,080

Assume a Cobb-Douglas production function of the form: q equals 10 Upper L Superscript 0.97 Baseline Upper K Superscript 0.18. What type of returns to scaleLOADING... does this production function exhibit? In this instance, returns to scale equal nothing. (Enter a numeric response using a real number rounded to two decimal places.) This production function exhibits A. decreasing returns to scale. B. constant returns to scale. C. initially increasing but then constant returns to scale. D. initially constant but then increasing returns to scale. E. increasing returns to scale.

Answers

Answer:

Returns to scale = 1.15

Increasing returns to scale.

Explanation:

Cobb-Douglas production function of the form:

$q=10(L)^(0.97)(K)^(0.18)$

Here, we are using a simple rule of factors to find the returns to scale:

$q=10(tL)^(0.97)(tK)^(0.18)$

$q=10(t)^(0.97+0.18) (L)^(0.97)(K)^(0.18)$

$q=10(t)^(1.15) (L)^(0.97)(K)^(0.18)$

Hence,

By adding up the powers of L and K, we can get the returns to scale.

Returns to scale = 1.15

Suppose, the power of L be 'a' and the power of K is 'b',

if a + b = 1, then it exhibits constant returns to scale

if a + b > 1, then it exhibits increasing returns to scale

if a + b < 1, then it exhibits decreasing returns to scale.

In our case,

a + b = 1.15 which is greater than 1, so this production function exhibits increasing returns to scale.

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: