darrell owns a furniture store. his total costs are $225,000 per year, and his fixed costs are $150,000 per year. this means that his variable costs are:

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Answer 1

This means that Darrell's variable costs are $75,000 per year.

Darrell's total costs are made up of two components: fixed costs and variable costs. Fixed costs are expenses that do not change regardless of how much furniture Darrell sells.

In this case, Darrell's fixed costs are $150,000 per year. Variable costs, on the other hand, are expenses that change with the level of sales. These costs increase as Darrell sells more furniture and decrease as he sells less.
To calculate Darrell's variable costs, we need to subtract his fixed costs from his total costs. So, variable costs can be calculated as:
Variable costs = Total costs - Fixed costs
= $225,000 - $150,000
= $75,000 per year
These costs could include expenses like raw materials, labor costs, and other expenses that are directly related to the production and sale of furniture.

By understanding the breakdown of his costs, Darrell can make better decisions about pricing and production to maximize his profits.

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Related Questions

What evolutionary advantage does compartmentalization.

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Compartmentalization, which refers to the separation of different cellular processes and structures within a cell, provides several evolutionary advantages.

Firstly, compartmentalization allows for the specialization of cellular processes. By separating different functions into distinct compartments, cells can optimize the efficiency of each process and reduce the likelihood of interference or competition between processes. This specialization can allow for more complex and specialized cellular functions, which can confer advantages in adapting to different environmental pressures and challenges.

Secondly, compartmentalization can help to protect the cell from damage or infection. For example, the nucleus, which is separated from the cytoplasm by the nuclear membrane, provides a protective environment for the cell's genetic material, preventing damage from external factors and helping to prevent the spread of viral infections.

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A company purchases office furniture on January 1, 2102 for $28,000. Depreciation is charged at 10 percent per annum using the declining balance method. What will the book value of the asset on December 31, 2013?


A.


$22,680


B.


$22,400


C.


$22,000


D.


$5,600

Answers

Using the declining balance method at a rate of 10 percent, the asset will be depreciated by  $22,680

Therefore, the answer is A. $22,680.

Using the declining balance method at a rate of 10 percent, the asset will be depreciated by:

The declining balance method is a method of calculating depreciation where the depreciation expense is a fixed percentage of the remaining balance of the asset's book value each year. In other words, the annual depreciation expense decreases over time as the asset ages and the book value decreases.

Year 1: 28,000 x 10% = 2,800

Year 2: (28,000 - 2,800) x 10% = 2,520

The book value of the asset at the end of Year 2 (December 31, 2013) will be:

28,000 - 2,800 - 2,520 = $22,680

Therefore, the answer is A. $22,680.

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the following data have been recorded for the production of product a-11 in the current period. direct materials cost was $2,039. a total of 32 direct labor-hours and 175 machine-hours were worked to make the product. the direct labor wage rate is $14 per labor-hour. the company allocates manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $15 per machine-hour. the total cost for product a-11 for the current period would be:

Answers

The total cost for product a-11 in the current period is $5,112.

To determine the total cost for product a-11 in the current period, we need to consider the direct materials cost, direct labor cost, and manufacturing overhead cost.
The direct materials cost for product a-11 was $2,039. This cost includes all the materials that were used to manufacture the product. For direct labor cost, we need to know the number of direct labor-hours worked and the wage rate per hour. The data provided states that 32 direct labor-hours were worked and the wage rate is $14 per labor-hour. Therefore, the direct labor cost for product a-11 is:
32 hours x $14 per hour = $448
Finally, we need to calculate the manufacturing overhead cost. The company allocates manufacturing overhead based on machine-hours, and the predetermined overhead rate is $15 per machine-hour. The data provided states that 175 machine-hours were worked to make product a-11. Therefore, the manufacturing overhead cost for product a-11 is:
175 machine-hours x $15 per machine-hour = $2,625
To determine the total cost for product a-11, we add the direct materials cost, direct labor cost, and manufacturing overhead cost:
$2,039 (direct materials) + $448 (direct labor) + $2,625 (manufacturing overhead) = $5,112

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Consider an open economy. if aggregate desired saving is greater than aggregate desired investment, then: a. current account balance is positive b. current account balance is negative c. financial account balance is positive d. interest rate is negative

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Consider an open economy. if aggregate desired saving is greater than aggregate desired investment, then financial account balance is positive. The correct option is c.

In an open economy the ratio of aggregate desired saving to aggregate desired investment indicates that the nation is saving more than it is investing. This suggests that there are excess savings in the economy that are not being put to use as investments.

In a market economy surplus savings can be spent on foreign assets or debt repayment. As a result there would be a capital outflow and a corresponding rise in the balance of the financial accounts.

The domestic economy would also experience a slowdown as a result of excessive savings and low investment which would result in lower imports and a surplus in the current account. The correct option is c.

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what is the term that is often used for the acquisition of services? what is the term that is often used for the acquisition of services? contracting requisitioning ordering purchasing

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The term often used for the acquisition of services is purchasing. So, correct option is D.

Purchasing refers to the process of procuring goods or services in exchange for money or other valuable consideration. It involves the identification of the need for the goods or services, the selection of suppliers, and the negotiation of terms and conditions for the transaction.

Purchasing is a critical business function that helps organizations to achieve their goals by ensuring the availability of the goods and services needed to operate effectively.

The process of purchasing involves various stages, including identification of the need, specification of requirements, identification of potential suppliers, solicitation of proposals or bids, evaluation of proposals, negotiation of contracts, and monitoring of supplier performance.

Effective purchasing requires a thorough understanding of the goods or services being acquired, the market conditions, and the suppliers. It also requires the ability to negotiate favorable terms and conditions, manage risks, and maintain good relationships with suppliers.

In summary, purchasing is the term used for the acquisition of goods and services and is a critical business function that contributes to the success of organizations.

So, correct option is D.

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If tax laws allow a company to postpone paying taxes on activities that are currently reported in the company's income statement, the company recognizes a ___________ to reflect the anticipated future taxable amounts

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If tax laws allow a company to postpone paying taxes on activities that are currently reported in the company's income statement, the company recognizes a deferred tax liability to reflect the anticipated future taxable amounts.

A deferred tax liability arises when there is a temporary difference between the amount of taxable income reported on the company's financial statements and the amount of taxable income reported on its tax return. Temporary differences can arise due to a variety of reasons, such as differences in depreciation methods, timing of recognition of revenue and expenses, or differences in tax rates.

When a temporary difference results in the company reporting lower taxable income on its financial statements than on its tax return, the company is expected to pay more taxes in the future. Therefore, a deferred tax liability is recognized on the company's balance sheet to reflect this anticipated future tax payment.

The deferred tax liability is eventually reversed when the temporary difference is eliminated, either through the reversal of the underlying transaction or through the passage of time. When the deferred tax liability is reversed, it reduces the company's income tax expense in the future.

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Knob, Inc. , is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of $248. 40 million annually. First National, Knob’s principal bank, offers to establish a new concentration banking system for a flat fee of $290,000 per year. The bank estimates that mailing and collection time can be reduced by two days. Assume a 360-day year.

a. By how much will Knob’s cash balances be increased under the new system? (Enter your answer in dollars not in millions. )

Increase in cash balance $

b. Assume that the borrowing rate is 10%. How much extra interest income will the new system generate if the extra funds are used to reduce borrowing under Knob’s line of credit with First National? (Enter your answer in dollars not in millions. )

Interest savings $

c. Calculate the total annual cost of the old system if collection costs under the old system are $59,000 per year? (Enter your answer in dollars not in millions. )

Annual cost of old system $

d. Should Knob accept First National's offer?

No

Yes

Answers

a. The increase in cash balance under the new system will be $502,599.95.

b. The total annual cost of the old system is $1,437,666.67.

c,d. The total annual cost of the old system is $1,437,666.67.

a. The reduction in mailing and collection time by two days will allow Knob to have access to funds two days earlier than before. Assuming a 360-day year, the daily savings in cash balances can be calculated as follows:

Daily savings = Credit sales / 360 = $248.4 million / 360 = $689,999.99 (rounded to the nearest cent)

Annual savings = Daily savings x 2 days x 365 = $502,599.95

Therefore, the increase in cash balance under the new system will be $502,599.95.

b. The extra funds generated from the new system can be used to reduce borrowing under Knob's line of credit with First National. Assuming a borrowing rate of 10%, the extra interest income can be calculated as follows:

Interest income = Extra funds x Borrowing rate = $502,599.95 x 10% = $50,259.99

Therefore, the new system will generate an extra interest income of $50,259.99.

c. The total annual cost of the old system can be calculated as follows:

Total cost = Collection costs + Mailing and collection float

Mailing and collection float = Credit sales / 360 x Float days

Float days = 2 days (since the new system will reduce the float days by 2)

Mailing and collection float = $248.4 million / 360 x 2 = $1,378,666.67

Total cost = $59,000 + $1,378,666.67 = $1,437,666.67

Therefore, the total annual cost of the old system is $1,437,666.67.

d. The total annual cost of the old system is $1,437,666.67, which is higher than the flat fee of $290,000 per year for the new system. Therefore, Knob should accept First National's offer and switch to the new concentration banking system. The new system will increase cash balances and generate extra interest income, while reducing the total annual cost for Knob.

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Both employer and employee are responsible for paying a set percentage of the employee's earnings. What is the name of this payroll tax? Select one: a. Federal Insurance Contributions Act withholdings b. Family Medical Leave Act withholdings c. Employee Retirement Income Security Act withholdings d. Consolidated Omnibus Budget Reconciliation Act withholdings

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The payroll tax that is responsible for the employer and employee paying a set percentage of the employee's earnings is known as "Federal Insurance Contributions Act withholdings". Option A is the answer.

The Federal Insurance Contributions Act (FICA) is a payroll tax levied on both workers and employers in the United States to fund Social Security and Medicare programs. The amount of FICA tax withheld from an employee's paycheck is determined by the employee's income and the current FICA tax rate.

The employer and employee each contribute half of the total FICA tax, which is a set percentage of the employee's gross earnings.The Federal Insurance Contributions Act withholdings option (a) is the correct answer to the given question.

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Cars arrive at a drive-thru vaccination clinic at the rate of one every 29 seconds, on average, and the vaccinations for all the people in the car take on average 4 minutes and 23 seconds. The exponential distribution is a good model for car arrivals and vaccinations times. A vaccination station costs $75 per hour if idle and $125 per hour if busy. Time spent waiting or being vaccinated is valued at $50 per hour. What is the optimal number of vaccination stations?

Answers

To find the optimal number of vaccination stations, we can balance the cost of idle stations and waiting time, model the arrival and vaccination times, and use optimization techniques to minimize the total cost per hour.

To determine the optimal number of vaccination stations, we need to consider the trade-off between the cost of idle stations and the cost of waiting time. Let's start by calculating the average time between car arrivals. Since the rate of car arrivals is one every 29 seconds, the average time between car arrivals is also 29 seconds.

Next, we need to calculate the average time it takes to vaccinate all the people in the car. Since vaccinations for all the people in the car take on average 4 minutes and 23 seconds, or 263 seconds, we can model the vaccination time using an exponential distribution with a rate of λ = 1/263.

Assuming that there are k vaccination stations, the utilization of the stations can be modeled as a Poisson process with a rate of λk, where λ is the arrival rate of cars. The average waiting time for a car to get vaccinated is given by Little's law as L = λW, where W is the average time a car spends in the system (i.e., waiting plus being vaccinated).

The cost of idle stations is $75 per hour per station, and the cost of busy stations is $125 per hour per station. Therefore, the total cost per hour is (k - N) * $75 + N * $125, where N is the number of busy stations.

Finally, we can use optimization techniques to find the optimal number of stations that minimizes the total cost per hour while meeting the target waiting time. This can be done by iterating over different values of k and solving for L and the total cost per hour. The optimal value of k is the one that satisfies the target waiting time and results in the minimum total cost per hour.

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Shares of halva corp. stock offer an expected total return of 14.6 percent. what is the dividend yield if the dividend increases by 2.8 percent annually?

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If shares of halva corp. stock offer an expected total return of 14.6 percent then the dividend yield if the dividend increases by 2.8 percent annually is  11.8 percent.

We can use the total return formula to solve for the dividend yield:

Total return = Dividend yield + Capital gains yield

Given the expected total return of 14.6 percent and assuming that the capital gains yield is equal to the dividend growth rate of 2.8 percent annually, we can write:

14.6% = Dividend yield + 2.8%

Solving for the dividend yield:

Dividend yield = 14.6% - 2.8%

Dividend yield = 11.8%

The total return formula is commonly used to evaluate the overall return on an investment, taking into account both the dividend yield and the capital gains yield. In this case, we are given the expected total return of 14.6 percent and the assumption that the capital gains yield is equal to the dividend growth rate of 2.8 percent annually.

To solve for the dividend yield, we subtract the capital gains yield (2.8 percent) from the total return (14.6 percent). This calculation is based on the assumption that the total return is the sum of the dividend yield and the capital gains yield.

By subtracting 2.8 percent from 14.6 percent, we find that the dividend yield is 11.8 percent. This means that the dividend payments received from Halva Corp. stock contribute 11.8 percent of the total return on the investment.

Therefore, the dividend yield for Halva Corp. stock is 11.8 percent.

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