As a recently hired MBA intern, you are working in a consulting capacity to provide an analysis for Al Dente's Italian Restaurant. A financial income Statement is presented below: Sales $2,698,000 Cost of sales (all variable) $1,557,563 Gross Margin $1,140,438 Operating expenses: Variable $277,975 Fixed $213,675 Total operating expenses: $491,650 Administative expenses (all fixed) $564,375 Net operating income $84,413 This income statement presents the sales, expenses and pre-tax operating income for a local eating facility. At Al Dente, the average meal cost for lunches and dinners are $20 and $40 respectively. Al Dente serves both lunch and dinner 300 days per year and serves twice as many lunches as dinners. As the MBA intern you are to prepare a managerial accounting focused report to the owners of Al Dente's Italian Restaurant, to include the following:

2. Compute the break-even volume of the number of lunches and dinners. Assume that the CM% for each meal category is the same as the average CM% as calculated in #1. Hint: To solve a break even sales mix, use the horizontal formula:

Net operating income = ($Sales – $Variable costs) – $fixed costs

Net operating income = $CM – $fixed costs

At Breakeven, NOI = $0

Therefore, $CM = $ Fixed costs

Now solve for the unit $CM for each item. Let X be the number of dinners, 2X the number of lunches. $CM is the combined total of the $CM for dinners, and the $CM for lunches.

Social stratification ranks categories of people in a hierarchy. What are the ranking categories in India, South Africa, United Kingdom, Japan, The former Soviety Union, and China? (pages 276-283 in 15th edition or pages 244-251 in 16th edition)

international marketing - asap

If a label on a product states "Made in Thailand" and a similar product has a label "Made in Germany," why do consumers consider the latter to be better than the former? What difference does a label make in consumer perceptions?

How Hauwei Might Handle the Latest US Sanctions

Author Name: Klint Finley

Publishing Date: June 21,2019

Publishing Platform: Wired

An article that I found extremely interesting was of a recent issue faced by a business in the United States named Huawei . Its a Chinese telecom hardware company. Huawei is China’s biggest phone maker and has recently been embroiled with the U.S. government concerning security threats. Huawei did business with many American corporations in the USA and provided cellular network gear to many companies in the USA. Yet, there was a security concern that China is using Huawei’s network for surveillance purposes.

That issue was quickly resolved after the U.S. government applied law and Constitution and banned all U.S. companies from doing business with Huawei keeping in mind the issue of national security. Using the provisions of the U.S. constitution, the government added Huawei to a list of companies that are considered a threat to U.S. national security. So Huawei is unable freely acquire U.S. technology and will have to seek U.S. government’s permission to do the same. The provisions of the Constitution with regards to national security have been used to put export restrictions on Huawei as well.

The US has been very concerned about some of these Chinese companies simply being trojan horses for China.

Another interesting area is mergers re international law, thanks for this post. Mergers are not as controversial as they used to be. My guess is that because so many companies compete globally now, we are not as concerned when they grow large!

Is that a good or bad development?

ou recently hired a young MBA who is advising you that you should grow more aggressively and who is suggesting that you should do so by acquiring other smaller companies. Your cookware and tableware importing business has been quite successful, but you are not sure that this new employee’s plan to acquire a series of cooking/kitchenware stores makes sense. What issues would you raise in discussing this proposal?

On January 1, 2018, Pharoah Corporation issued $2,400,000 of 5-year, 9% bonds at 96. The bonds pay interest annually on January 1. By January 1, 2020, the market rate of interest for bonds of risk similar to those of Pharoah Corporation had risen. As a result, the market value of these bonds was $2,130,000 on January 1, 2020—below their carrying value. Joanna Pharoah, president of the company, suggests repurchasing all of these bonds in the open market at the $2,130,000 price. To do so, the company will have to issue $2,130,000 (face value) of new 10-year, 11% bonds at par. The president asks you, as controller, “What is the feasibility of my proposed repurchase plan?”

depreciation expense

Stacey Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2021, an asset account for the company showed the following balances: Manufacturing equipment $ 67,800 Accumulated depreciation through 2020 45,000 In early January 2021, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 950 Major overhaul of the equipment 9,700 The equipment is being depreciated on a straight-line basis over an estimated life of 14 years, with a $4,800 estimated residual value. The company’s fiscal year ends on December 31. Required: 1. Calculate the depreciation expense for the manufacturing equipment for 2020.

Cullumber Equipment Ltd. wanted to expand into New Brunswick and was impressed by the provincial government’s grant program for new industry. Once it was sure that it would qualify for the grant program, it purchased property in downtown Saint John on June 15, 2020. The property cost $237,000 and Cullumber spent the next two months gutting the building and reconstructing the two floors to meet the company’s needs. The building has a useful life of 20 years and an estimated residual value of $64,800. In late August 2020, the company moved into the building and began operations. Additional information follows:

Assuming that the company uses the cost reduction method to account for government assistance, answer the following:

1- What is the cost of the building on Cullumber Equipment’s statement of financial position at August 31, 2020, its fiscal year end?

Cost of Building =

2- What is the effect of this capital asset on the company’s income statement for the company’s year ended August 31, 2021?

Net effect on income statement=

Assuming the company uses the deferral method to account for government assistance, answer the following:

1- What is the cost of the building on Cullumber Equipment’s statement of financial position at August 31, 2020?

Cost of Building =

2- What is the effect of this capital asset on the company’s income statement for the company’s year ended August 31, 2021?

Net income on effect=

Q.

The inventory of Ahrsun Ventures Corporation was destroyed by fire on February 29, 2020. The following data is for the first two months of the year: Sales $51,000, Sales Returns and Allowances $1,000, Purchases $28,200; Freight-In $1,200; and Purchase Discounts $1,400. According to the financial statements at year-end December 31, 2019 the balance of Merchandise Inventory was $20,000. Ahrsun Ventures has a gross profit rate of 30% on net sales and uses the periodic method of inventory.

REQUIRED: Determine the merchandise lost by fire.

Q.

On March 31 2020 the adjusted year-end account balances of ABC Company were as follows:

Required: Prepare, in good form, a classified Balance Sheet. ABC Company uses the perpetual inventory method.

Q.

The March 31, 2019 balance sheet of Kalakaua Corporation had Accounts Receivable of $525,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During the year ended March 31, 2020, the following transactions occurred: sales on account $1,550,000; sales returns & allowances, $120,000; collections from customers, $1,350,000; accounts written off $41,000; previously written off accounts of $5,000 were collected.

1. Using the above information, what is the balance of Accounts Receivable at March 31, 2020?

2. Suppose that it is the company policy to use the percentage of sales basis to estimate bad debts expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at March 31, 2020? (Show calculations.)

3. Ignore the entry made in b) above.

Assume that it is company policy to use the aging of receivables basis to estimate bad debt expense. It determines that uncollectible accounts are expected to be $38,400.   What is the adjusting entry at March 31, 2020?   Assume the March 31, 2020 balance of Accounts Receivable is $575,000 and Allowance for Doubtful Accounts has an existing balance of $3,000 (cr). (Show calculations)

Q. The following figures are provided for Hanauma Marketing Corp. What is gross margin?

Sales revenue                                           $480,000

Cost of goods sold                                      300,000

Sales discounts                                           20,000

Sales returns and allowances                    15,000

Operating expenses                                     85,000

Interest revenue                                             5,000

a) $105,000

b) $140,000

c) $145,000

d) $ 90,000

e) $180,000