1))Suppose that a factory is producing two automobiles per hour. The total fixed cost is $20,000. The total variable cost is $10,000. The average total cost is ______________.
2)) The fixed cost of producing surfboards is $5,000 per month. The total variable cost of producing 15 surfboards is $36,000 per month. The average total cost of producing 15 surfboards in a month is ______.
A)$333.33
B)$2,733.33
C)$2,400.00
D)$41,000.00
In: Economics
A process making 2000 metric tons of a product selling for P1.60 per kg. total cost of production is 84.375% of the total sales while the ratio of the fixed cost to the variable cost is 0.35:1.0. Variable costs consist of 50% labor cost and 40% raw material cost. if the management proposes increasing the selling price by 10% due to 20% increase in the cost of its raw materials,
a. determine the peso change in net profit at full capacity if tax rate is 34%
b. determine the % change in the breakeven point
c. determine the fixed cost per poundat new break even point
In: Accounting
Suppose that a price-searcher monopolist had a total cost function given by: TC= 20 + 0.5Q +0.2Q2. The demand for the price searcher's product is given by: QD= 100 -20P. Calculate the monopolist's producer surplus.
In: Economics
Graham Company reports the following for the month of July.
| Date | Explanation | Units | Unit Cost | Total Cost | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
July |
1 |
Inventory |
440 | $5 | $2,200 | ||||||||
|
12 |
Purchase |
740 | 6 | 4,440 | |||||||||
|
23 |
Purchase |
940 | 7 | 6,580 | |||||||||
Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption (FIFO, LIFO, and Moving Average), using a perpetual inventory system. Assume a sale of 810 units occurred on July 15 for a selling price of $8 and a sale of 840 units on July 27 for $9. (Round average cost per unit to 3 decimal places, e.g. 5.253 and final answers to 0 decimal places, e.g. 2,520.)
In: Accounting
Jennifer Company reports the following for the month of June.
| Date | Explanation | Units | Unit Cost | Total Cost | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
June |
1 |
Inventory |
500 | $5 | $2,500 | ||||||||
|
12 |
Purchase |
800 | 6 | 4,800 | |||||||||
|
23 |
Purchase |
1,000 | 7 | 7,000 | |||||||||
Calculate the cost of the ending inventory and the cost of goods
sold for each cost flow assumption, using a perpetual inventory
system. Assume a sale of 870 units occurred on June 15 for a
selling price of $8 and a sale of 900 units on June 27 for $9.
(Round average cost per unit to 3 decimal places, e.g.
5.254 and final answers to 0 decimal places, e.g.
2,520.)
| FIFO | LIFO | Moving Average | |||||
|---|---|---|---|---|---|---|---|
|
Cost of the ending inventory |
$enter the cost of the ending inventory in dollars under FIFO method | $enter the cost of the ending inventory in dollars under LIFO method | $enter the cost of the ending inventory in dollars under moving average method | ||||
|
Cost of goods sold |
$enter the cost of the goods sold in dollars under FIFO method | $enter the cost of the goods sold in dollars under LIFO method | $enter the cost of the goods sold in dollars under moving average method |
In: Accounting
At a total cost of $2,064,000, Herrera Corporation acquired 160,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 400,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation.
a. Journalize the entries by Herrera Corporation to record the following information:
1. Tran Corp. reports net income of $3,720,000 for the current period.
2. A cash dividend of $1.70 per common share is paid by Tran Corp. during the current period.
b. Why is the equity method appropriate for the Tran Corp. investment?
An investment amount ____ of the outstanding common stock of the investee is presumed to represent significant influence. The equity method is appropriate when the investor ____ exercise significant influence over the investee.
In: Accounting
6. Holmes Inc. purchased computer equipment two years ago at a total cost of $1,000,000. These computers could be sold today for $300,000. If these computers are sold in five years, they will be worth $50,000. The CCA rate for these computers is 30%.
The company is now considering whether it should replace these computers with newer and more powerful ones. The estimated total purchase cost of the new computers is $1.5 million. These computers can be sold for $300,000 in five years, and their CCA rate remains at 30%. The company expects to obtain before-tax cost savings of $300,000 per year from these new computers.
The company’s
marginal tax rate is 35%, and its required rate of return on new
equipment is 15%. Should the company replace the computer
equipment?
In: Accounting
117. Bates Company purchased equipment on January 1, 2008, at a total invoice cost of $600,000. The equipment has an estimated salvage value of $15,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2009, if the straight-line method of depreciation is used?
a. $120,000
b. $240,000
c. $117,000
d. $234,000
118. On January 1, a machine with a useful life of five years and a residual value of $15,000 was purchased for $45,000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation?
a. $10,800
b. $18,000
c. $14,400
d. $8,640
119. A machine with a cost of $160,000 has an estimated salvage value of $10,000 and an estimated useful life of 5 years or 15,000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
120. Equipment with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?
a. $60,000
b. $67,800
c. $49,500
d. $56,250
121. Larime Company purchased equipment for $40,000 on January 1, 2007, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $2,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2009 will be
a. $5,760.
b. $9,120.
c. $9,600.
d. $5,472.
122. Interline Trucking purchased a tractor trailer for $98,000. Interline uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year useful life. Salvage value is estimated to be $14,000. If the truck is driven 90,000 miles in its first year, how much depreciation expense should Interline record?
a. $7,000
b. $8,820
c. $7,560
d. $8,167
In: Accounting
Assume the following: - Pediatrics exam, total fixed = $36,000, variable cost per visit = $8, total projected visits = 5,000 - Geriatrics exam, total fixed = $50,000, variable cost per visit = $5, total projected visits = 3,000 - Adult physical, total fixed = $44,000, variable cost per visit = $6, total projected visits = 5,000 A) What should the fee schedule be for each service to break even? iv. Pediatrics = ________________________ v. Geriatrics = ________________________ vi. Adult = ____________________ b) What should the fee schedule be for each to achieve $8,000 in revenue? i. Pediatrics = _______________________ ii. Geriatrics = _______________________ iii. Adult =___________________________
In: Finance
The Following table shows total cost (TC) of a kid selling lemonade, where the lemonade market is considered “Competitive” market. Answer all following questions:
|
Quantity of Output |
Total Cost $ |
|
0 |
5 |
|
1 |
8.5 |
|
2 |
15 |
|
3 |
22 |
|
4 |
30.5 |
|
5 |
45.5 |
In: Economics