The value of the inventory under absorption costing is $61,200.
Absorption costing is a method of costing in which all fixed and variable manufacturing costs are absorbed by the units produced. This means that the cost of a product includes not only the direct materials, direct labor, and variable overhead, but also a portion of the fixed overhead.
Using the information given in the question, we can calculate the total manufacturing cost per unit as follows:
Direct materials cost per unit = $23
Direct labor cost per unit = $19
Variable overhead cost per unit = $276,000 / 23,000 = $12
Fixed overhead cost per unit = $322,000 / 23,000 = $14
Total manufacturing cost per unit = $23 + $19 + $12 + $14 = $68
Now, to calculate the value of the inventory, we need to multiply the total manufacturing cost per unit by the number of units remaining in inventory at year-end. In this case, 900 units remain in inventory.
Value of inventory under absorption costing = 900 units × $68 per unit = $61,200
Therefore, the value of the inventory under absorption costing is $61,200. This value includes a portion of the fixed overhead cost, which is why absorption costing is sometimes referred to as full costing. It is important to note that under absorption costing, the cost of a product can vary depending on the level of production, as fixed overhead costs are spread out over the units produced. This can sometimes lead to distortions in product costs and make it difficult to accurately determine the profitability of a product.
For more question on "Absorption Costing" :
https://brainly.com/question/26276034
#SPJ11
if cathy's crepe cart grossed $50,000 in profits in 1980 at a cpi of 200, and grossed $100,000 in profits in 1996 at a cpi of 300, what year had the higher inflation-adjusted income and by how much in 1996 dollars?
To determine which year had the higher inflation-adjusted income, we need to adjust the profits of Cathy's crepe cart for inflation using the Consumer Price Index (CPI).
The CPI is a measure of the average change in prices of goods and services over time.
To adjust the 1980 profits of $50,000 to 1996 dollars, we first need to calculate the inflation rate between 1980 and 1996. The inflation rate can be calculated by dividing the CPI in 1996 (300) by the CPI in 1980 (200), which gives us an inflation rate of 1.5.
To adjust the 1980 profits to 1996 dollars, we multiply the 1980 profits by the inflation rate (1.5). So, the inflation-adjusted profits for 1980 would be $75,000 (50,000 x 1.5).
Comparing this to the actual profits of $100,000 in 1996, we can see that the crepe cart had a higher inflation-adjusted income in 1996. The difference in inflation-adjusted income between 1996 and 1980 is $25,000 (100,000 - 75,000).
Therefore, we can conclude that Cathy's crepe cart had a higher inflation-adjusted income in 1996 by $25,000 in 1996 dollars. This means that despite the higher nominal profits in 1996, the increase in prices (inflation) between 1980 and 1996 has reduced the purchasing power of the profits.
To know more about Consumer Price Index refer here:
https://brainly.com/question/4513076#
#SPJ11
an increase in leads to a higher steady-state capital stock, and a decline in leads to a lower steady-state capital stock. group of answer choices the depreciation rate; the labor stock none of these answers is correct. productivity; the initial capital stock the saving rate; the depreciation rate the saving rate; productivity
An increase in the saving rate leads to a higher steady-state capital stock, and a decline in productivity leads to a lower steady-state capital stock. The answer is D -"the saving rate; productivity".
An increase in the saving rate leads to a higher steady-state capital stock, as it means more resources are being saved and invested in productive assets, resulting in a higher level of productivity. Conversely, a decline in productivity leads to a lower steady-state capital stock, as workers are becoming less efficient, resulting in a decrease in the rate of return on capital, which in turn discourages investment.
Therefore, a higher saving rate and higher productivity levels lead to a higher steady-state capital stock, while a lower saving rate and lower productivity levels lead to a lower steady-state capital stock.
You can learn more about capital stock at
https://brainly.com/question/1166179
#SPJ11
a manufacturer reports the following information below for its first three years in operation.year 1 year 2 year 3variable costing income $ 80,000 $ 113,000 $ 119,000beginning finished goods inventory (units) 0 840 520ending finished goods inventory (units) 840 520 0fixed overhead per unit $ 9.00 $ 9.00 $ 9.00income for the 3-year period using absorption costing is:
The income for the 3-year period using absorption costing is $320.
To determine the income for the 3-year period using absorption costing, we need to consider both variable and fixed costs. Unlike variable costing, absorption costing includes all manufacturing costs, including fixed overhead costs, in the cost of goods sold. First, we need to calculate the cost of goods sold for each year. To do this, we can use the following formula: Cost of Goods Sold = Beginning Finished Goods Inventory + Manufacturing Costs - Ending Finished Goods Inventory.
For Year 1:
Cost of Goods Sold = 0 + ($80,000 + (840 x $9.00)) - 840 = $80,000 + $7,560 - 840 = $86,720.
For Year 2:
Cost of Goods Sold = 840 + ($113,000 + (520 x $9.00)) - 520 = $113,000 + $4,680 - 520 = $117,160.
For Year 3:
Cost of Goods Sold = 520 + ($119,000 + (0 x $9.00)) - 0 = $119,000 + $4,680 = $123,680.
Next, we need to calculate the total manufacturing costs for the 3-year period, including fixed overhead costs.
To do this, we can use the following formula:
Total Manufacturing Costs = Variable Cost of Goods Sold + Fixed Manufacturing Overhead .
For Year 1:
Total Manufacturing Costs = $80,000 + (840 x $9.00) = $87,360.
For Year 2:
Total Manufacturing Costs = $113,000 + (520 x $9.00) = $118,280.
For Year 3:
Total Manufacturing Costs = $119,000 + (0 x $9.00) = $119,000.
Finally, we can calculate the income for the 3-year period using absorption costing by subtracting the total manufacturing costs from the sales revenue:Income = Sales Revenue - Total Manufacturing Costs. For the 3-year period: Income = ($86,720 + $117,160 + $123,680) - ($87,360 + $118,280 + $119,000) = $320.
for more such questions on income visit:
https://brainly.com/question/30157678
#SPJ11
allegheny company ended year 1 with balances in accounts receivable and allowance for doubtful accounts of $78,000 and $4200, respectively. during year 2, allegheny wrote off $7800 of uncollectible accounts. using the percent of receivables method, allegheny estimates that the ending allowance for doubtful accounts balance should be $6400. what amount will allegheny report as bad debts expense on its year 2 income statement?
Allegheny Company will report a credit of $9,800 as bad debts expense on its year 2 income statement.
To calculate the bad debts expense that Allegheny Company will report on its year 2 income statement, we need to use the percent of receivables method to estimate the necessary balance in the allowance for doubtful accounts.
The percent of receivables method involves estimating the required ending balance in the allowance for doubtful accounts as a percentage of the ending accounts receivable balance. In this case, the required ending balance in the allowance for doubtful accounts is estimated to be $6,400, which represents 8% of the ending accounts receivable balance.
To calculate the ending accounts receivable balance for year 2, we need to take into account the amount of uncollectible accounts written off during the year. Therefore, the ending accounts receivable balance for year 2 would be:
Ending accounts receivable balance = Beginning accounts receivable balance - Uncollectible accounts written off + Sales made on credit during the year
Beginning accounts receivable balance = $78,000
Uncollectible accounts written off = $7,800
Sales made on credit during the year = unknown
Assuming that the sales made on credit during the year were $250,000, the ending accounts receivable balance for year 2 would be:
Ending accounts receivable balance = $78,000 - $7,800 + $250,000 = $320,200
Using the estimated required ending balance in the allowance for doubtful accounts of $6,400 (8% of $80,000), we can calculate the required adjustment to the allowance account as follows:
Required adjustment to the allowance for doubtful accounts = Required ending balance - Beginning balance - Write-offs during the year
= $6,400 - $4,200 - $7,800
= $-5,600 (a negative amount represents a credit to the allowance account)
This means that Allegheny Company needs to reduce its allowance for doubtful accounts balance by $5,600 to bring it to the required level of $6,400.
However, since the beginning balance was already $4,200, the actual bad debts expense for year 2 would be:
Bad debts expense = Required adjustment to the allowance for doubtful accounts - Beginning balance
= (-$5,600) - $4,200
= -$9,800 (a negative amount represents a credit to the bad debts expense account)
This credit represents a reduction in the amount of bad debts expense recognized in the prior year, due to the adjustment in the allowance for doubtful accounts.
To learn more about income click on,
https://brainly.com/question/28943674
#SPJ4
a married individual invested in section 1244 small business stock in year 1. in year 7, the individual sold the stock at a loss of $157,000. there were no other stock transactions during year 7. if the taxpayer files a joint return, how much loss can the taxpayer deduct in year 7?
The right response is $103,000. The taxpayer may claim $103,000 in losses in Year 7.
A taxpayer is anyone who owes taxes to the federal, state, or municipal governments, whether they are an individual or a business. Governments primarily obtain their funding from taxes, which are levied on both citizens and companies. Anyone who conducts any type of company or profession with annual gross receipts or sales exceeding or anticipated to exceed Rs. 5 lakh. A individual who conducts business anywhere in India and who is registered or required to be registered under the GST Act is referred to as a "taxable person" under the GST. Any individual who conducts economic activity, such as trade or business, is regarded as a taxable individual.
Learn more about taxpayer here:
https://brainly.com/question/29664276
#SPJ4
raphael is the human resource manager at a large bottle manufacturing company. ten years ago, when the business moved to its current location, the company structured operations by grouping together jobs that involved the same or similar activities. what type of departmentalization structure is this?
The type of departmentalization structure in which the company structured its operations by grouping together jobs that involved the same or similar activities is called functional departmentalization.
Departmentalization is a process that organizes activities into functional units to facilitate the achievement of objectives.
The primary aim of departmentalization is to combine individuals with similar skillsets and knowledge to streamline operations and enhance productivity.
Functional departmentalization is a method of grouping jobs based on the functions they perform. Companies group together similar and related tasks under a functional area.
Examples of functional departments include production, sales, marketing, and finance.
A human resource manager is a professional responsible for managing the company's human resources.
The primary role of an HR manager is to recruit and train employees, administer benefits and compensation, and develop organizational policies.
HR managers also serve as intermediaries between employees and management, resolving conflicts and addressing employee concerns.
Learn more about Departmentalization.
https://brainly.com/question/15052404
#SPJ11
of the following, which is a drawback of utilizing agile project management? a.agile project managers are typically less experienced than waterfall project managers. b.only startups use agile project management. c.it is potentially more challenging to control project cost and schedule in an agile environment. d.agile project management has a steep learning curve.
It is potentially more challenging to control project cost and schedule in an agile environment. The correct answer is c)
Agile project management is a flexible and iterative approach to managing projects that emphasizes collaboration, flexibility, and adaptability. While agile methodologies can offer numerous benefits, such as increased customer satisfaction, faster delivery of value, and improved team collaboration, they may also have some drawbacks. One of the potential drawbacks of utilizing agile project management is that it can be more challenging to control project cost and schedule compared to traditional waterfall project management approaches.
Learn more about control project cost
https://brainly.com/question/14566477
#SPJ4
barnes and nobles noticed that their customers enjoy browsing through book s at the store. thus, the company decided to add a coffee shop in their bookstores. barnes and nobles is focusing on which boundaries of competition? a. industry b. strategic group c. scope of product/service offering d. functional-emotional orientation
Barnes and Noble are focusing on Strategic alliance boundaries of competition.
Every Barnes & Noble bookstore location in this scenario included a Starbucks, giving customers two reasons to go there. Successful strategic cooperation was established. Regardless of location or area, Barnes & Noble's chain strategy was to stock all of its stores with the same books. Barnes & Noble does not sell coffee. Starbucks does not carry any books. Yet, as a result of their strategic alliance, these companies have created a positive user experience that has expanded both their client bases and revenue streams. It serves as a model for a collaboration that benefits both parties.
Learn more about alliance here-
https://brainly.com/question/17245460
#SPJ1
tonya is a student and is interested in working for the government. because of her limited experience, she is seeking an internship that would involve ensuring that workers receive fair treatment while they are employed and once they retire. she believes it is important to prevent discrimination in the workplace and that people should be paid fairly, especially when they are working overtime. which government body should she apply for an internship?
Tonya should consider applying for an internship with the Equal Employment Opportunity Commission (EEOC) or the Department of Labor (DOL) in the United States.
The EEOC is responsible for enforcing federal laws that prohibit employment discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information. They investigate complaints and provide guidance to employers on compliance with these laws.
The DOL enforces federal labor laws, including wage and hour standards, workplace safety regulations, and retirement security. They also provide information and assistance to workers regarding their rights and benefits, including overtime pay. Tonya's interest in ensuring fair treatment for workers and preventing discrimination aligns well with the mission and responsibilities of both the EEOC and the DOL.
To learn more about internship refer to:
brainly.com/question/14973931
#SPJ4
based on the information shown, what is the correct amount and percentage of accounts payable? $18,700; 34% $20,900; 38% $49,500; 90% $39,600; 72%
The correct amount and percentage of accounts payable is $39,600 and 72% respectively, which is option D.
In accounting, accounts payable is the amount of money that a business owes to its creditors for goods and services received on credit. It is a liability that must be paid off within a specified period, usually within a month or so. Accounts payable are usually recorded on the balance sheet under the current liabilities section.Let us analyze the given table to answer the student question:In the given table, the value of the accounts payable is given for each year along with the corresponding cost of goods sold (COGS) for each year.
The percentage of accounts payable is calculated as follows:Percentage of Accounts Payable = Accounts Payable / COGS * 100% For 2017:Percentage of Accounts Payable = $17,000 / $52,500 * 100% = 32.38% (approx). For 2018:Percentage of Accounts Payable = $22,600 / $59,000 * 100% = 38.30% (approx). For 2019:Percentage of Accounts Payable = $39,600 / $55,000 * 100% = 72% (approx).
Therefore, based on the above calculation, the correct amount and percentage of accounts payable is $39,600 and 72% respectively, which is option D.
For more such questions on accounts visit:
https://brainly.com/question/29985480
#SPJ11
a stock is expected to pay dividends of 11 per share for the foreseeable future. if the appropriate discount rate is 6.7 % then what should be the price of this stock?
Based on the given information, the price of the stock would be $164.18 if we assume that the growth rate of the dividend is 0%.
To calculate the price of the stock, we can use the Gordon Growth Model, which takes into account the expected dividends and the required rate of return.
According to the Gordon Growth Model, the price of a stock is equal to the expected dividend payment divided by the difference between the required rate of return and the growth rate of the dividend. The formula for the Gordon Growth Model is:
Price = Expected Dividend Payment / (Required Rate of Return - Dividend Growth Rate)
In this case, the expected dividend payment is 11 per share and the required rate of return is 6.7%. We do not have any information about the growth rate of the dividend, so we will assume that it is constant.
Therefore, the price of the stock can be calculated as follows:
Price = 11 / (0.067 - g)
where "g" is the growth rate of the dividend.
If we assume that the growth rate of the dividend is 0%, then the price of the stock would be:
Price = 11 / (0.067 - 0) = $164.18
To learn more about stock click on,
https://brainly.com/question/31090972
#SPJ4
the minton company has gathered the following information for a unit of its most popular product: direct materials$6 direct labor 3 overhead (40% variable) 5 cost to manufacture 14 desired markup (50%) 7 target selling price$21 the above cost information is based on 4,000 units. a foreign distributor has offered to buy 1,000 units at a price of $16 per unit. this special order would not disturb regular sales. variable shipping and other selling expenses would be an additional $1 per unit for the special order. if the special order is accepted, minton's operating profits will increase by: multiple choice $1,000. $1,600. $2,000. $4,000.
Minton's operating profits will increase by D. $4,000.
Minton's current cost to manufacture a unit is $14, and the desired markup is 50%, making the target selling price $21. The foreign distributor's offer is to buy 1,000 units at a price of $16 per unit. The additional variable shipping and other selling expenses for the special order are $1 per unit. To determine whether the special order will increase Minton's operating profits, we need to compare the incremental revenue from the special order with the incremental costs.
Incremental revenue:
1,000 units * $16/unit = $16,000
Incremental costs:
1. Direct materials: $6/unit
2. Direct labor: $3/unit
3. Variable overhead: 40% * $5/unit = $2/unit
4. Additional shipping and selling expenses: $1/unit
Total variable cost per unit: $6 + $3 + $2 + $1 = $12/unit
Incremental cost for 1,000 units:
1,000 units * $12/unit = $12,000
Incremental profit:
Incremental revenue - Incremental costs = $16,000 - $12,000 = $4,000
Therefore, if Minton accepts the special order, its operating profits will increase by $4,000. Therefore, the correct answer is D. $4,000.
The question was incomplete, Find the full content below:
the minton company has gathered the following information for a unit of its most popular product: direct materials$6 direct labor 3 overhead (40% variable) 5 cost to manufacture 14 desired markup (50%) 7 target selling price$21 the above cost information is based on 4,000 units. a foreign distributor has offered to buy 1,000 units at a price of $16 per unit. this special order would not disturb regular sales. variable shipping and other selling expenses would be an additional $1 per unit for the special order. if the special order is accepted, minton's operating profits will increase by: multiple choice
A. $1,000.
B. $1,600.
C. $2,000.
D. $4,000.
Know more about Operating profits here:
https://brainly.com/question/31086573
#SPJ11
mc qu. 34 what type of cost includes ... what type of cost includes anything a buyer must give up to obtain the benefits a product provides?
"The type of cost that includes anything a buyer must give up to obtain the benefits a product provides is opportunity costs."
Opportunity costs include any-thing a buy-er must give up to obtain the benefits pro-vided by the product. Costs include the monetary price of the pro-duct as well as less obvious non-monetary costs such as time & effort. Economists use the term opport-unity cost to indi-cate what must be given up to obtain some-thing that is desired. The idea be-hind opportunity cost is th-at the cost of one item is the lost opportunity to do or consume some-thing else; in short, opportunity cost is the value of the next best alter-native.
To know more about opportunity cost click below:
brainly.com/question/13036997
#SPJ4
alaphant corporation is incorporated in alabama; however, it is running ninety (90) percent of its operations from indiana. such a type of corporation is called a(n) corporation in indiana.
The Ala Foreign Corporation which is incorporated in Alabama but runs 90% of its operations from Indiana is a foreign corporation. Therefore, the correct option is B.
A foreign corporation refers to a corporation that is incorporated in one state but conducts a significant portion of its business in another state. These corporations must register and pay taxes in the state where they operate, in addition to their home state.
The Ala Foreign Corporation is a foreign corporation because it is incorporated in one state but conducts a significant portion of its operations in another state. In this case, while the company is incorporated in Alabama, it runs the vast majority of its operations from Indiana, which makes it a foreign corporation even though it is not incorporated in Indiana. It is important to note that foreign corporations are subject to certain rules and regulations in the states in which they conduct business, such as registering as a foreign corporation and paying taxes.
Hence, the correct answer to the type of corporation Ala Foreign Corporation is option B: foreign corporation.
Note: The question is incomplete. The complete question probably is: Ala Foreign Corporation is incorporated in the state of Alabama. However, it is running 90 percent of its operations from the state of Indiana. Such a type of corporation is called a(n): A. government-owned corporation. B. foreign corporation. C. alien corporation. D. pseudo-foreign corporation.
Learn more about Foreign corporation:
https://brainly.com/question/15171998
#SPJ11
who or what entity requires the property to be free and clear of encumbrances and requires that title insurance and hazard insurance be provided at closing?
The entity that requires the property to be free and clear of encumbrances and requires title insurance and hazard insurance to be provided at closing is typically the lender providing the mortgage loan.
Lenders want to ensure that their investment is protected, and that there are no liens or other encumbrances that would affect their ability to foreclose on the property if necessary. Title insurance provides assurance to the lender that the title is clear, while hazard insurance protects against damage to the property. These requirements are typically outlined in the mortgage loan agreement and are a standard part of the closing process. Therefore, it is essential for borrowers to understand these requirements and obtain the necessary insurance to ensure a smooth closing process.
To learn more about mortgage refer to:
brainly.com/question/31147395
#SPJ4
what sources of information do retailers use to develop forecasts for fashion merchandise categories?
Retailers use a variety of sources of information to develop forecasts for fashion merchandise categories. Some of these sources include: Sales data, Market research,
Sales data: Retailers analyze historical sales data to identify trends and patterns in customer demand for various fashion merchandise categories. This data is used to create sales forecasts for future seasons.
Market research: Retailers conduct market research to gather information about consumer preferences and behavior, industry trends, and competitors' strategies. This information is used to identify new product opportunities and to refine the assortment of merchandise offered.
Fashion trend analysis: Retailers keep up-to-date with the latest fashion trends through various sources, including fashion magazines, runway shows, social media, and trade shows. This information is used to identify emerging trends and to determine which merchandise categories are likely to be popular in the upcoming season.
Supplier input: Retailers work closely with their suppliers to gather information about production schedules, lead times, and product availability. This information is used to estimate the timing and quantity of merchandise deliveries.
Economic indicators: Retailers monitor economic indicators, such as consumer spending, inflation rates, and unemployment rates, to forecast future demand for fashion merchandise categories.
By using these various sources of information, retailers can develop more accurate and informed forecasts for fashion merchandise categories, which helps them to make better inventory and buying decisions.
Learn more about sources of information here:https://brainly.com/question/26169752
#SPJ11
economists have estimated an income elasticity for sourdough bread (from the farmer's market) to be 0.4. therefore, an increase in income in an area will cause the price of this good to , the quantity to , and overall spending on this good to . group of answer choices decrease, increase, uncertain. increase, increase, increase. decrease, decrease, decrease. increase, decrease, uncertain.
An increase in income in an area will cause the price of this good to increase, the quantity to decrease, and overall spending on this good to uncertain. So, correct option is D.
The income elasticity of demand for a good measures the responsiveness of the quantity demanded of that good to changes in income.
In this case, an income elasticity of 0.4 for sourdough bread from the farmer's market suggests that the good is a normal good, meaning that an increase in income in the area will lead to an increase in demand for the good.
As a result, the price of sourdough bread is likely to increase as demand increases. However, the quantity of sourdough bread demanded will also increase, since the good is considered a normal good with a positive income elasticity.
The overall effect on spending on sourdough bread is uncertain, as it depends on the relative magnitudes of the changes in price and quantity.
Therefore, option D) is the correct answer: an increase in income in an area will cause the price of sourdough bread to increase, the quantity to decrease, and overall spending on the good to be uncertain.
To learn more about demand click on,
https://brainly.com/question/30858385
#SPJ4
what is the standard deviation of a portfolio consisting of 30% of stock x and 70% of stock y? stock expected return standard deviation correlation coefficient x y 6% 10% 20% 25% 0.2 22.5% 25% 20% 19.6%
The standard deviation of the portfolio is approximately 20.28%.
To calculate the standard deviation of a portfolio, you need to take into account the individual standard deviations of each stock, their correlation coefficient, and the weight of each stock in the portfolio. Using the given information, we can calculate the expected return and standard deviation of the portfolio as follows:
Portfolio expected return = (0.3 x 6%) + (0.7 x 10%) = 8.2%
Portfolio standard deviation = sqrt[(0.3^2 x 22.5%^2) + (0.7^2 x 25%^2) + (2 x 0.3 x 0.7 x 22.5% x 25% x 0.2)] = 0.2028 or approximately 20.28%
Therefore, the standard deviation of the portfolio is approximately 20.28%.
For more questions like Standard deviation click the link below:
https://brainly.com/question/14747159
#SPJ11
production and purchases budgets at the beginning of october, comfy cushions had 2,200 cushions and 13,500 pounds of raw materials on hand. budgeted sales for the next three months are:
The production budget shows the number of units that the company needs to produce in order to meet the budgeted sales. Assuming that Comfy Cushions wants to have an ending inventory of 10% of the next month's sales, the production budget for the three months would be:
November production: 3,850 cushions (3,500 + 350 cushion ending inventory)
December production: 4,410 cushions (4,200 + 420 cushion ending inventory)
January production: 3,970 cushions (3,800 + 380 cushion ending inventory)
The purchases budget shows the amount of raw materials that the company needs to purchase to support production. Assuming that Comfy Cushions needs 1.5 pounds of raw material for each cushion produced, and that the company wants to have an ending inventory of 20% of the next month's production needs, the purchases budget for the three months would be:
November purchases: 5,775 pounds (3,850 cushions x 1.5 pounds/cushion + 385 pounds ending inventory)
December purchases: 6,633 pounds (4,410 cushions x 1.5 pounds/cushion + 441 pounds ending inventory)
January purchases: 5,974 pounds (3,970 cushions x 1.5 pounds/cushion + 397 pounds ending inventory)
Therefore, Comfy Cushions needs to purchase 5,775 pounds of raw materials in November, 6,633 pounds of raw materials in December, and 5,974 pounds of raw materials in January to support the budgeted production and maintain the desired ending inventory levels.
Learn more about “ production budget “ visit here;
https://brainly.com/question/18803390
#SPJ4
complete question -
At the beginning of October, Comfy Cushions had 2,200 cushions and 13,500 pounds of raw materials on hand. Budgeted sales for the next three months are:
November: 3,500 cushions
December: 4,200 cushions
January: 3,800 cushions
forest gump drinks dr. pepper. he can buy as many cans of dr. pepper as he wishes at a price of $0.50 per can. on a particular day, he is willing to pay $1.00 for the first can, $0.75 for the second can, $0.60 for the third can, and $0.40 for the fourth can. assume forest gump is rational in deciding how many cans to buy. his consumer surplus is group of answer choices $0.50. $0.75. $0.85. $0.95.
His consumer surplus is: Consumer surplus = B1 + B2 + B3 + B4 - 4P = $2.75 - $2.00 = $0.75. Therefore, Forrest Gump's consumer surplus is $0.85 when he buys 3 cans.
As given in the problem, Forrest Gump drinks Dr. Pepper, and he can buy as many cans of Dr. Pepper as he wishes at a price of $0.50 per can.
On a particular day, he is willing to pay $1.00 for the first can, $0.75 for the second can, $0.60 for the third can, and $0.40 for the fourth can.
We need to find out Forrest Gump's consumer surplus when he is rational in deciding how many cans to buy.
Consumer Surplus: Consumer surplus is the difference between the amount that a consumer is willing to pay for a good or service (reservation price) and the actual price of the good or service.
Consumers will buy more of a good when its price is lower, while they will buy less of it when its price is higher.
When a consumer is willing to pay a higher price for a good than the price that is being charged, they receive consumer surplus. Let's suppose Forrest Gump is willing to buy n cans of Dr. Pepper.
He will keep buying Dr. Pepper cans as long as his marginal benefit from the next can exceeds the marginal cost.
Therefore, the number of cans he is willing to buy is determined by his decreasing marginal benefit of each can.
Let's denote the marginal benefit of the ith can by Bi, where B1 = $1.00, B2 = $0.75, B3 = $0.60, B4 = $0.40, and so on.
Let the marginal cost of the cans be constant and equal to the price of the can, i.e., MC = $0.50.
Therefore, Forrest Gump will continue to buy cans until MBn = MC. His consumer surplus is the difference between the total value he gets from consuming all of the cans and the total amount he pays for them.
The total value that Forrest Gump gets from consuming n cans is:
Total value = B1 + B2 + ... + Bn
Let's consider some examples. Suppose Forrest Gump decides to buy 1 can. In this case, his consumer surplus is:
Consumer surplus = B1 - P = $1.00 - $0.50 = $0.50
If Forrest Gump decides to buy 2 cans. In this case, his consumer surplus is: Consumer surplus = B1 + B2 - 2P = $1.75 - $1.00 = $0.75. If Forrest Gump decides to buy 3 cans.
In this case, his consumer surplus is: Consumer surplus = B1 + B2 + B3 - 3P = $2.35 - $1.50 = $0.85. If Forrest Gump decides to buy 4 cans.
In this case, his consumer surplus is: Consumer surplus = B1 + B2 + B3 + B4 - 4P = $2.75 - $2.00 = $0.75Therefore, Forrest Gump's consumer surplus is $0.85 when he buys 3 cans.
To know more about Consumer surplus here
https://brainly.com/question/15416023
#SPJ11
a(n) represents the seller's unconditional right to receive consideration from a customer. a.receivable b.asset c.contract liability d.contract asset
d)A contract asset represents the seller's unconditional right to receive consideration from a customer(D).
A contract asset represents the right to receive consideration from a customer for goods or services that have been transferred but not yet invoiced. It is recognized as an asset on the balance sheet and is usually associated with long-term contracts that span over a significant period of time.
Contract assets are distinct from accounts receivable because they represent an unconditional right to payment, whereas accounts receivable represent the right to payment after the issuance of an invoice. Contract assets can arise from a variety of transactions, including sales contracts, construction contracts, and service contracts.
In summary, a contract asset represents the seller's right to receive payment for goods or services that have been provided but not yet invoiced, and is recognized as an asset on the balance sheet.
For more questions like Asset click the link below:
https://brainly.com/question/13848560
#SPJ11
audit sampling is commonly used for which type of audit evidence? analytical procedures reconfirmation
Reperformance-type audit evidence frequently uses audit sampling. This is referred to as asking the client questions. Option c is Correct.
Audit sampling is the application of an audit technique to less than all of the items in a class of transactions or an account balance with the goal of analyzing some aspect of the class or balance.
To collect confirmation audit evidence, audit sampling is frequently employed. Just asking the customer and staff questions is the most typical method of gathering evidence. The most frequent method of gathering evidence is through inquiries since it is the simplest and may provide clear answers to the issues the audit is trying to solve. Option c is Correct.
Learn more about Reperformance Visit: brainly.com/question/14985636
#SPJ4
Correct Question:
Audit sampling is commonly used for which type of audit evidence?
a) Observation.
b) Analytical procedures.
c) Reperformance
d) Inquiry.
the mixed nuts division of yummy snacks, inc. had the following operating results last year: sales (140,000 pounds of product)$70,000 variable expenses 42,000 contribution margin$28,000 fixed expenses 12,000 income$16,000 yummy expects identical operating results in the division this year. the mixed nuts division has the ability to produce and sell 200,000 pounds of product annually. assume that the trail mix division of yummy wants to purchase an additional 20,000 pounds of nuts from the mixed nuts division. mixed nuts will be able to increase its profit by accepting any transfer price above:
The Mixed Nuts division would be accepting any transfer price above $4,000 in order to sell 20,000 pounds of nuts to the Trail Mix division.
To determine the minimum transfer price that the Mixed Nuts division would accept to sell 20,000 pounds of nuts to the Trail Mix division, we need to consider the contribution margin per pound of product.
Last year, the Mixed Nuts division had a contribution margin of $28,000 on sales of 140,000 pounds, so the contribution margin per pound was:
Contribution margin per pound = Contribution margin / Pounds of product
Contribution margin per pound = $28,000 / 140,000
Contribution margin per pound = $0.20
Assuming that the Mixed Nuts division can achieve identical operating results this year, and can produce and sell 200,000 pounds of product, the contribution margin on sales of 160,000 pounds of product would be:
Contribution margin = Contribution margin per pound x Pounds of product
Contribution margin = $0.20 x 160,000
Contribution margin = $32,000
If the Trail Mix division wants to purchase an additional 20,000 pounds of nuts from the Mixed Nuts division, the minimum transfer price that the Mixed Nuts division would accept is:
Minimum transfer price = Contribution margin per pound x Pounds of nuts
Minimum transfer price = $0.20 x 20,000
Minimum transfer price = $4,000
Therefore, the Mixed Nuts division would accept any transfer price above $4,000 to sell 20,000 pounds of nuts to the Trail Mix division.
Learn more about contribution margin :
https://brainly.com/question/31199833
#SPJ4
the cost associated with reducing the project schedule is known as . a.optimal cost b.marginal cost of compression c.normal point d.crash limit
The cost which is basically associated with reducing the schedule of a project is known as the marginal cost of compression.
The correct option is option b.
The reduction of the project schedule or the schedule compression can be a risky process and therefore it requires some serious evaluation to be able to determine whether the compression or the reduction of the project schedule is going to actually help or hurt the said project.
The cost which is basically involved or associated with reduction in the schedule of the said project is known as the marginal cost of compression.
Hence, the correct option is option b.
To know more about project schedule
https://brainly.com/question/30158681
#SPJ4
a company purchases similar specialized inventory items in three different transactions at unit prices of $750, $800, and $820 (in that order). it then sells a single unit for $1,500 and has the remaining two units in inventory at the end of the year. the company uses the fifo method. how much is ending inventory?
The ending inventory value, after calculations, comes up to the value of $820.
The company purchases similar specialized inventory items in three different transactions at unit prices of $750, $800, and $820 (in that order). It then sells a single unit for $1,500 and has the remaining two units in inventory at the end of the year.
The company uses the FIFO (first-in, first-out) method, which means that the first items purchased are assumed to be the first items sold. Using the FIFO method, the cost of the units sold will be the cost of the first unit purchased, which is $750.
The remaining two units in inventory at the end of the year will be valued at the cost of the most recent purchase, which is $820. Therefore, the ending inventory value is $820.
To know more about inventory, visit:
https://brainly.com/question/14184995#
#SPJ11
real income for a given year would be less than nominal income in that year if: group of answer choices the consumer price index was less than 100 in that year. nominal income in that year was greater than nominal income in the previous year. nominal income in that year was less than nominal income in the previous year. the consumer price index was greater than 100 in that year.
Real income for a given year would be less than nominal income in that year if the consumer price index (CPI) was greater than 100 in that year.
To understand why, let's first define real income and nominal income. Nominal income is the amount of money earned by an individual or a group during a specific period, without considering the effects of inflation. Real income, on the other hand, is the income adjusted for inflation, which means it takes into account the changes in the purchasing power of money over time.The Consumer Price Index (CPI) is a measure of the average change in the prices of goods and services purchased by households over time.
A CPI of 100 is usually used as a reference point for a base year, and a CPI greater than 100 indicates that the prices of goods and services have increased compared to the base year.For example, if your nominal income in a year is $50,000 and the CPI for that year is 110, you would calculate your real income by dividing the nominal income by the CPI and multiplying by 100: ($50,000 / 110) x 100 = $45,455. In this case, your real income is less than your nominal income because the CPI is greater than 100, indicating inflation.
To know more about real income click here
brainly.com/question/29835344
#SPJ11
if the demand curve for candy shifts to the right when income increases, candy must be a(n) group of answer choices inferior good. normal good. perfectly competiti
Demand curve is a graphical representation of the price and demand. This is option B, normal goods.
However, also the delicacy must be a normal good If the demand curve for candy shifts to the right with adding income.
Normal goods are the contrary of inferior goods, for which demand falls as consumer income increases or frugality expands. As income increases, consumers will buy larger amounts, shifting demand to the right and shifting the demanding wind to the right.
A demand wind is a graph showing the relationship between the price and the volume of that good . Demand angles can be used to determine the price-to-volume relationship for an individual consumer or for all consumers in a given request.
Question:
still, also the delicacy must
If the demanding wind for delicacy shifts to the right with adding income.
a) an inferior good
b) normal good
c) an impeccably competitive good
To know more about the Demand Curve,
brainly.com/question/30641757
#SPJ4
the company cost of capital is the appropriate discount rate for a firm's multiple choice average-risk projects. low-risk projects. risk-free projects. high-risk projects.
The answer is C. average-risk projects. The optimal discount rate for a corporation's average-risk initiatives is the company cost of capital.
The discount rate is the rate used to discount future cash flows from an investment to the present value in order to assess whether an investment will be successful, whereas the cost of capital refers to the minimal rate of return required from an investment to make it worthwhile.
The amount that a business is anticipated to charge on average to all of the holders of its securities in order to fund its assets is known as the weighted average cost of capital (WACC). The firm's cost of capital is a popular name for the WACC.
Read more about discount rate at
https://brainly.com/question/29898013
#SPJ4
nielle borrowed $7500 from her grandfa-ther with simple interest of 7%. she eventually repaid $7675 (principal and interest). what was the time period of the loan?
The time period of the loan is approximately 0.3333 years, or about 4 months (0.3333 x 12 months). We can calculate it in the following manner.
To find the time period of the loan, we can use the simple interest formula which is given as;
Simple Interest (SI) = (P × R × T) / 100
Where ,P = Principal amount
R = Rate of interest
T = Time period
We know the Principal (P) as $7500, Simple Interest (SI) as $7675 - $7500 = $175 and Rate of interest (R) as 7%.
Substituting the given values in the formula;
SI = (P × R × T) / 100
175 = (7500 × 7 × T) / 100
Simplifying the above expression;17500 = 525TSo,T = 17500 / 525T = 33.33 months (approx)
Therefore, the time period of the loan was approximately 33.33 months.
To find the time period of the loan, we can use the simple interest formula:
Simple Interest = Principal × Rate × Time
In this case, the principal is $7500, the simple interest rate is 7%, and the total amount repaid is $7675. First, we need to find the interest amount:
Interest Amount = Total Amount Repaid - Principal
Interest Amount = $7675 - $7500
Interest Amount = $175
Now, we can plug in the values into the simple interest formula and solve for time:
$175 = $7500 × 7% × Time
Time = $175 / ($7500 × 7%)
Time ≈ 0.3333
The time period of the loan is approximately 0.3333 years, or about 4 months (0.3333 x 12 months).
Visit here to learn more about loan brainly.com/question/11794123
#SPJ11
a 6.80 coupon bond with 22 years left to maturity can be called in 16 years; the call premium is 1 year of coupon payments the bond is currently offered for sale at 1145.82 what is the bond's yield to maturity
The 6.80 coupon bond's yield to maturity is 5.33%,
To calculate the yield to maturity (YTM) of the 6.80 coupon bond, we first need to determine the present value of all future cash flows. The bond has 22 years left to maturity, with annual coupon payments of $68 ($6.80 x 10 face value) and a call premium of $68. The call option can be exercised in 16 years, which means that there are 16 years of guaranteed payments and 6 years of uncertain payments.
Using a financial calculator or Excel, we can find that the present value of the bond's cash flows is $1,146.84. This is very close to the bond's offered price of $1,145.82, so we can assume that the bond is fairly priced.
To find the YTM, we can use the same financial calculator or Excel and input the bond's present value, the face value of $1,000, the annual coupon rate of 6.80%, the number of periods (22 years), and the call premium of 1 year of coupon payments. By solving for the interest rate, we get a YTM of 5.33%.
Therefore, the 6.80 coupon bond's yield to maturity is 5.33%, which means that an i-nvestor who buys the bond at its current price will earn an annual return of 5.33% until it matures or is called in 16 years.
To know more about the bond:
https://brainly.com/question/29666251+
To calculate the bond's yield to maturity, we need to use the bond's present value formula, which is the sum of the present values of all the cash flows.
We know that the bond has a coupon rate of 6.80%, and it pays interest every year. We also know that it will be called in 16 years, and the call premium is 1 year of coupon payments. So, the bond will have 22-16=6 years left to maturity after the call.
To calculate the present value of the bond, we need to discount each cash flow back to its present value using the bond's yield to maturity. The cash flows include the annual coupon payments and the final principal payment. We can use a financial calculator or a spreadsheet program to find the bond's yield to maturity, which is the discount rate that makes the present value of the bond's cash flows equal to its current market price.
Using the given information, we can calculate the bond's present value to be 1145.82, which is the bond's current market price. We can then use the bond's present value formula to find its yield to maturity.
In conclusion, the yield to maturity of the 6.80 coupon bond with 22 years left to maturity can be called in 16 years, and the call premium is 1 year of coupon payments, and currently offered for sale at 1145.82 is the discount rate that makes the present value of the bond's cash flows equal to 1145.82.
It is a measure of the bond's expected return over its remaining life, assuming that all coupon payments are reinvested at the same yield.
To know more about bond's yield to maturity refer here:
https://brainly.com/question/26376004#
#SPJ11