The following represents the financial information for Domingo Corporation for two months.
| March | April | |||||
| Sales revenue | $ | 540,000 | $ | 430,000 | ||
| Costs | ||||||
| Process inspection | $ | 1,500 | $ | 1,840 | ||
| Scrap | 1,940 | 1,870 | ||||
| Quality training | 19,500 | 13,500 | ||||
| Warranty repairs | 4,200 | 5,100 | ||||
| Product testing equipment | 6,600 | 7,100 | ||||
| Customer complaints | 2,900 | 3,100 | ||||
| Rework | 16,000 | 19,500 | ||||
| Preventive maintenance | 12,700 | 10,200 | ||||
| Materials inspection | 7,400 | 5,000 | ||||
| Field testing | 8,600 | 11,600 | ||||
Required:
a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs.
The following represents the financial information for Domingo Corporation for two months.
| March | April | |||||
| Sales revenue | $ | 540,000 | $ | 430,000 | ||
| Costs | ||||||
| Process inspection | $ | 1,500 | $ | 1,840 | ||
| Scrap | 1,940 | 1,870 | ||||
| Quality training | 19,500 | 13,500 | ||||
| Warranty repairs | 4,200 | 5,100 | ||||
| Product testing equipment | 6,600 | 7,100 | ||||
| Customer complaints | 2,900 | 3,100 | ||||
| Rework | 16,000 | 19,500 | ||||
| Preventive maintenance | 12,700 | 10,200 | ||||
| Materials inspection | 7,400 | 5,000 | ||||
| Field testing | 8,600 | 11,600 | ||||
Required:
a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs.
b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April.
In: Accounting
1. The Washington Post article explains that LinkedIn earns revenue mainly in three ways. Which of the following is NOT one of them?
| a. |
A suite of products from its Talent Solutions Division. |
|
| b. |
Sales of advertising |
|
| c. |
"Premium access" memberships |
|
| d. |
Fees charged to users for setting-up their profiles |
2. LinkedIn helps people find jobs in the following ways:
| a. |
Makes it easier to make and leverage connections in your network |
|
| b. |
Posts job listings without relevant information that may or may not help you get a job |
|
| c. |
Helps you create a network by starting with your friends which in the end can bring benefits such as job referrals, discussions on various topics, and much more |
|
| d. |
About half of LinkedIn’s users are from outside of the United States which can help those interested in working internationally |
|
| e. |
a, c, and d but not b. |
In: Economics
In: Economics
Compare and contrast what happens to total revenue, total cost, and profit when the monopolist increases its price, in both the elastic and inelastic portions of the demand curve. Repeat for a decrease in price.
In: Economics
Relationship between total revenue and price elasticity of demand, example with graph and explain how even due to good weather some farmers are worse off?
In: Economics
David sells apples. The price of apples rise and the total revenue from selling apples increases. A. All of the other answers are incorrect B. It can be concluded that the demand for the product is elastic. C. It can be concluded that the supply of the product is elastic. D. It can be concluded that the demand for the product is inelastic. E. It can be concluded that the supply of the product is inelastic.
In: Economics
|
Quantity |
Price |
Marginal Revenue |
Marginal Cost |
Average Total Cost |
|
1 |
230 |
230 |
100 |
150 |
|
2 |
210 |
190 |
100 |
125 |
|
3 |
190 |
150 |
100 |
116.6666667 |
|
4 |
170 |
110 |
100 |
112.5 |
|
5 |
150 |
70 |
100 |
110 |
|
6 |
130 |
30 |
100 |
108.3333333 |
|
7 |
110 |
-10 |
100 |
107.1428571 |
|
8 |
90 |
-50 |
100 |
106.25 |
|
9 |
70 |
-90 |
100 |
105.5555556 |
|
10 |
50 |
-130 |
100 |
105 |
What is the deadweight loss when the monopoly produces the
monopoly Q instead of the socially efficient Q?
The deadweight loss = $_______
In: Economics
|
During 2014, Robby’s Camera Shop had sales revenue of $158,000, of which $74,000 was on credit. At the start of 2014, Accounts Receivable showed a $25,000 debit balance, and the Allowance for Doubtful Accounts showed a $900 credit balance. Collections of accounts receivable during 2014 amounted to $59,000. |
| Data during 2014 follows: |
| a. |
On December 31, 2014, an Account Receivable (J. Doe) of $1,300 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. |
| b. |
On December 31, 2014, on the basis of experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 1.5 percent of credit sales for the year. |
| Required: | |
| 1. |
Prepare the required journal entries for the two items on December 31, 2014 (end of the accounting period). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| 2. |
Show how the amounts related to Accounts receivable and Bad debt expense would be reported on the income statement and balance sheet for 2014. Disregard income tax considerations. (Amounts to be deducted should be indicated by a minus sign.) |
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In: Accounting
In: Economics
Current Year1 Year 2 Year 3
Revenue $1,500 $1,650 $1,815 $2,000
EAT $95 $106 $117 $130
The company also receives a royalty net after taxes of $10 million per year. It is expected that the cash flows equal to depreciation will have to be reinvested to keep the firm operating. Further, capital expenditures equal to 60 per cent of the net cash flow will need to be invested to keep the firm growing. Other items on the balance sheet remain unchanged. The CFO believes that it will just forecast for the first three years and then simply assume a 6 percent annual growth rate after the third year.
T-bills yield 8 percent and the market return is 13 percent. The company’s beta using Hamada equation is 1.2. What is the value of the company or what would you pay for the firm if you were interested in it.
In: Finance