The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.
follows≻For
a small order
(2,000
pieces or less) her vendor quotes a price of
$1.80/piece.
follows≻If
she orders
2,001
to
5,000
pieces, the price drops to
$1.60/piece.
follows > 5,001
to
10,000
pieces brings the price to
$1.40/piece,
and
follows≻ 10,001
and above reduces the price to
$1.25/piece.
Lisa's order costs are
$200
per order, her annual holding costs are
5%,
and the annual demand is
45,700
pieces. For the best option (the best option is the price level that results in an EOQ within the acceptable range):
a) What is the optimum ordering quantity?
nothing
units (round your response to the nearest whole number).
B) What is the annual holding cost? (round your response to two decimal places).
C) What is the annual ordering cost? (round your response to two decimal places).
D) What are the annual cost of the silverware with an optimal order quantity? (round your response to two decimal places).
E) What is the total annual cost, including ordering, holding, and purchasing the silverware? (round your response to two decimal places).
In: Operations Management
In: Psychology
Problem 18-11
On July 1, 2017, Nash Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,890,000. On July 1, Nash estimated that it would take between 2 and 3 years to complete the building. On December 31, 2019, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2017, 2018, and 2019.
|
At |
At |
At |
||||
| Contract costs incurred to date | $312,900 | $1,148,400 | $2,076,000 | |||
| Estimated costs to complete the contract | 1,177,100 | 831,600 | –0– | |||
| Billings to Gumbel | 300,000 | 1,090,000 | 1,850,000 |
(a) Using the percentage-of-completion method,
prepare schedules to compute the profit or loss to be recognized as
a result of this contract for the years ended December 31, 2017,
2018, and 2019. (Ignore income taxes.) (If answer is 0,
please enter 0. Do not leave any field blank. Enter negative
amounts using either a negative sign preceding the number e.g. -45
or parentheses e.g. (45).)
In: Accounting
(i) An investor is considering buying XYZ Corp. stock on margin. His stockbroker informed him that 100 shares of XYZ Corp. cost $42 a share. The margin requirement was 60 percent with an interest rate of 4.5 percent on borrowed funds, and commissions on the purchase and sale were 4%. One year after the investor invested in stock XYZ corp. paid an annual dividend of $1.55 a share. The price of the stock also rose to $70 in one year.
a. What is the percentage earned on the investment if the stock is bought for cash (i.e., the investor did not use margin)?
b. What is the percentage earned on the investment if the stock is bought on margin?
PLEASE SHOW WORK
In: Finance
Income statements for Benson Company for 2018 and 2019 follow: BENSON COMPANY
Income Statements 2019 2018
Sales $ 201,800 $ 181,800
Cost of goods sold 142,800 120,800
Selling expenses 21,500 19,500
Administrative expenses 12,800 14,800
Interest expense 3,300 5,300
Total expenses $ 180,400 $ 160,400
Income before taxes 21,400 21,400
Income taxes expense 6,500 3,600
Net income $ 14,900 $ 17,800
Required Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.
Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
In: Accounting
Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s fiscal year end of January 30, 2016. Target’s Form 10-K is available at https://www.sec.gov/cgi-bin/viewer?action=view&cik=27419&accession_number=0000027419-16-000043&xbrl_type=v# Section 2: Chapter 3 material: What percentage of Target’s total revenues end up as net earnings? What percentage of Target’s sales go to pay for the costs of the goods being sold? What costs does Target include in its Cost of Sales account? When does Target recognize revenue from the sale of gift cards?
In: Accounting
Income statements for Burch Company for 2018 and 2019 follow:
|
BURCH COMPANY Income Statements |
|||||||
| 2019 | 2018 | ||||||
| Sales | $ | 240,000 | $ | 200,000 | |||
| Cost of goods sold | 180,000 | 124,000 | |||||
| Selling expenses | 26,000 | 20,000 | |||||
| Administrative expenses | 12,000 | 18,000 | |||||
| Interest expense | 7,500 | 8,000 | |||||
| Total expenses | $ | 225,500 | $ | 170,000 | |||
| Income before taxes | 14,500 | 30,000 | |||||
| Income taxes expense | 1,200 | 3,000 | |||||
| Net income | $ | 13,300 | $ | 27,000 | |||
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
In: Accounting
A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.)
| Revenue | $ | 1,200,000 | |
| Less: Variable expenses | 624,000 | ||
| Contribution margin | $ | 576,000 | |
| Less: Fixed expenses | 432,000 | ||
| Net income | $ | 144,000 | |
Required:
Show the hotel’s cost structure by indicating the percentage of the hotel’s revenue represented by each item on the income statement.
Suppose the hotel’s revenue declines by 30 percent. Use the contribution-margin percentage to calculate the resulting decrease in net income.
What is the hotel’s operating leverage factor when revenue is $1,200,000?
Use the operating leverage factor to calculate the increase in net income resulting from a 35 percent increase in sales revenue.
In: Accounting
A generator at a utility company produces 100 A of current at 4.0 x 103 V. The voltage is stepped up to 2.4 x 105 V by a transformer before being sent on a high voltage line across a rural area to a city. Assume the effective resistance of the line is 30.0 Ω and the transformers are ideal.
a. Determine the percentage of power lost in the transmission line.
b. What percentage would be lost if the voltage would not have been stepped up?
c. How many kW-hr of energy is lost each day if the voltage would not have been stepped up?
d. Calculate the cost of this energy loss if the price of electricity is $.11/kW-hr.
In: Physics
Income statements for Benson Company for 2018 and 2019 follow:
| BENSON COMPANY Income Statements |
|||||||
| 2019 | 2018 | ||||||
| Sales | $ | 201,900 | $ | 181,900 | |||
| Cost of goods sold | 143,600 | 121,600 | |||||
| Selling expenses | 21,900 | 19,900 | |||||
| Administrative expenses | 12,200 | 14,200 | |||||
| Interest expense | 3,300 | 5,300 | |||||
| Total expenses | $ | 181,000 | $ | 161,000 | |||
| Income before taxes | 20,900 | 20,900 | |||||
| Income taxes expense | 6,600 | 3,500 | |||||
| Net income | $ | 14,300 | $ | 17,400 | |||
Required
Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.
Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
In: Accounting