| | | $30.45 per unit and $27,721 respectively. | | | $30.45 per unit and $69,775 respectively. | | | 6. If sales are $791,788, variable costs are 80% of sales, and operating income is $233,054, what is the contribution margin ratio? Select the correct answer.
Calculate the reported costs of the five components described in Exhibit 6 under the three systems. 2a. Costs Under The Existing System: One Center System Product ICA ICB Capacitor Amplifier Diode Direct Labor $ 917 2051 1094 525 519 Overhead @ 145% 1330 2974 1586 761 753 Total 2247 5025 2680 1286 1272 2b. Costs Under The Proposed System from the Accounting Manager: Two Center System Product ICA ICB Capacitor Amplifier Diode Direct Labor $ Overhead $ 917 2051 1094 525 519 1480 3200 600 400 960 Overhead (Machine Hrs.) (18.5) (40.0) (7.5) (5.0) (12.0) Overhead (Direct Labor $) 183
This is when the long term development plan or three pronged business strategy was enacted. It focused on continuing in large scale development partnerships and using their money to learn more about the technology, then developing in-house created products for production and licensing them out (turnkey manner). It was high risk, with high reward potential and many big companies were eager to throw money at Trexel. This approach failed because Trexel bit off more than it could chew. They picked up too many products without understanding the full limitations of MuCell and lost a lot of customers.
The errors that result from errors in translation are the cause of many problems in invoicing and making payments. These problems consume people's time and slow down cash flow. All these expenses simply eat away at profit margins that are already thin enough. In addition to the operating problems caused by using different part numbers for the same item, another consequence is a lack of accuracy and clarity in sales history data. Part number translation errors result in sales of some items being undercounted and sales of other items being overcounted.
Finding the initial investment Answer: $20,000 Purchase price of new machinery $3,000 Installation costs $4,500 After-tax proceeds from sale of old machinery $18,500 Initial investment E11-4. Book value and recaptured depreciation $175,000 $124, 250 $110,000 $50,750 $50, 750 $59,250 Recaptured depreciation E11-5. Initial investment purchase price installation costs – after-tax proceeds from sale of old asset change in net working capital $55,000 $7,500 – $23,750 $2,000 $40,750 Answer: Book value Answer: Initial investment CAPITAL BUDGETING PROBLEMS: CHAPTER 11 Solutions to Problems Note: The MACRS depreciation percentages used in the following problems appear in Chapter 4, Table 4.2. The percentages are rounded to the nearest integer for ease in calculation. For simplification, 5-year-lived projects with 5 years of cash inflows are typically used throughout this chapter.
You may use the forms below. (40 points) Sanborn Corporation Comparative Income Statements For the Years Ended December 31, 20x8 and 20x7 (in thousands of dollars) 20x8 20x7 Increase or Decrease Amount Percentage Net sales $3,276,800 $3,146,400 130,400 4.14% Cost of goods sold 2,088,800 2,008,400 80,400 4.00% Gross margin $1,188,000 $1,138,000 50,000 4.39% Operating expenses Selling expenses $ 476,800 $ 518,000 (41,200) -7.95% Administrative expenses 447,200 423,200 24,000 5.67% Total operating expenses $ 924,000 $ 941,200 (17,200) -1.83% Income from operations $ 264,000 $ 196,800 67,200 34.15% Interest expense 65,600 39,200 26,400 67.35% Income before income taxes $ 198,400 $ 157,600 40,800 25.89% Income taxes expense 62,400 56,800 5,600 9.86% Net income $ 136,000 $ 100,800 35,200 34.92% Earnings per share $3.40 $2.52 0.88 34.92% Sanborn Corporation Comparative Balance Sheets December 31, 20x8 and 20x7 20x8 20x7 Increase or Decrease Amount Percentage Assets Cash $ 81,200 $ 40,800 40,400 99.02% Accounts receivable (net) 235,600 229,200 6,400 2.79% Inventory 574,800 594,800 (20,000) -3.36% Property, plant, and equipment (net) 750,000 720,000 30,000 4.17% Total assets $1,641,600 $1,584,800 56,800 3.58% Liabilities and Stockholders' Equity
Cost of debt Both the lodging and restaurant division’s debt used a blended rate made up of a floating rate and a fixed rate. For the cost of debt in the lodging division, we multiplied 50% of the debt by the floating rate and added that to the remaining 50%, which was multiplied by the fixed rate. Consistent with the definition that a floating rate is an adjustable short-term interest rate, our floating rate was determined by adding the given debt rate premium of 1.10% to the short-term (1-year) government interest rate of 6.90%, giving us a floating rate of
Question: (TCO4) When the LIFO method is used, cost of goods sold is assumed to consist of: Your Answer: Instructor Explanation: LIFO means last in, first out, so the last units purchased are sold and the remaining units are assumed to consist of the first units. Points Received: 0 of 5 Comments: 4. Question: (TCO4) Given the following data, calculate the gross profit using the average-cost method, if the selling price was $20 per unit. Date, Item, Unit 1/1, Beginning inventory, 40 units at $12 per unit 3/5, Purchase of inventory, 18 units at $14 per unit 5/30, Purchase of inventory, 24 units at $18 per unit 12/31, Ending inventory, 20 unites Your Answer: Instructor Explanation: Units available for sale (40+18+24) =82, less ending inventory of 20 units tells us that 62 units were sold. To determine the average cost per unit, we need the value of the total units available for sale, (40*$12) +(18$14) +(24$18) =$1,164.
As we know, people don’t like changes, especially the ones they can’t predict. If they feel uncomfortable after the acquisition, they will leave the company. High employee turnover rate will lead to vest cost of training expense and reverse effect of working environment. 1 BADM 590 Home Assignment 2 2.Return on investment Yue Wang Cisco had the acquired company’s products appear on its price list on the day the deal closed so that Cisco’s sales force could immediately begin to sell the new products. I find it is a great method to raise the acquired company’s sales.
Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead rate is based on normal capacity. [pic] .:. Required: 1. Assuming that variable costs will vary in direct proportion to the change in volume, prepare a flexible budget for production levels of 80%, 90%, and 110% of normal capacity.