Answer the following questions using the information
below:
The following information is for Alex Corp:
Product X: Revenue $15.00
Variable Cost $2.50
Product Y: Revenue $25.00
Variable Cost $10.00
Total fixed costs $50,000
) The current sales mix is two units of Product X and one unit of
Product Y. If the sales mix shifts to one unit of Product X and two
units of Product Y, then the weighted-average contribution margin
will ________.
Question 26 options:
|
decrease per unit |
|
|
stay the same |
|
|
increase per unit |
|
|
decrease by $0.50 per unit |
|
|
increase by $0.50 |
In: Accounting
In February 2018, Gemstone Industries purchased the Opal Mine at a cost of $20,000,000. The mine is estimated to contain 500,000 carats of stone and to have a residual value of $1,000,000 after mining operations are completed. During 2018, 50,000 carats of stone were removed from the mine and sold. In this situation:
A. The book value of the mine is $19,000,000 at the end of 2018.
B. The amount of depletion deducted from revenue during 2018 is $1,900,000.
C. The amount of depletion deducted from revenue during 2018 is $1,000,000.
D. The mine is classified as an intangible asset and amortized over a period not to exceed 40 years.
In: Accounting
Keys Company showed the following account balances at the end of its first year (assume all accounts have normal balances):
Cash $ 2,000
Equipment 5,000
Depreciation expense 3,000
Service Revenue 18,000
Prepaid insurance 3,500
Accumulated Depreciation
--Equipment 2,000
Salaries and Wages expense 5,000
Accounts receivable 2,500
Accounts payable 2,000
Rent expense 2,500
Notes payable 3,000
Common stock 1,000
Unearned Service Revenue 2,000
Dividends 500
Insurance expense 3,000
Interest expense 1,000
Net income for the first year is:
In: Finance
In January 2016, United Airlines (UAL) had a market capitalization of $ 20.54 billion, debt of $ 12.06 billion, and cash of $ 5.36 billion. United Airlines had revenues of $ 38.27 billion. Southwest Airlines (LUV) had a market capitalization of $ 27.41billion, debt of $ 3.16 billion, cash of $ 2.82 billion, and revenues of $ 19.69 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. c. Which of these comparisons is more meaningful? Explain.
In: Finance
1. John operates a Limited Liability Company, Unity Landscaping, LLC., and has earned $100,000 in gross revenue for 2019. There are 2 members; John and Mike, and each are equal owners.
Sally operates a corporation, United Help, Inc., and has earned $80,000 in gross revenue for 2019. Sally is the sole owner.
It is now time for both to handle their taxes but they are unclear on how the structure works and how they handle their taxes for the companies. The business tax rate is 28%, and the personal tax rate is 25%. Calculate the taxes for the owners and companies so they can all know and understand their taxes:
In: Accounting
Qd = 1000 – 2P. This implies that Price or Private MB = 500 - .5Q.
Education has positive externalities. Assume each degree has a $50 value to society.
Such that the Social MB = 550 - .5Q. MC = 100.
In: Economics
The following is a partial trial balance for the Green Star
Corporation as of December 31, 2018:
| Account Title | Debits | Credits |
| Sales revenue | 1,550,000 | |
| Interest revenue | 38,000 | |
| Gain on sale of investments | 58,000 | |
| Cost of goods sold | 770,000 | |
| Selling expenses | 200,000 | |
| General and administrative expenses | 83,000 | |
| Interest expense | 48,000 | |
| Income tax expense | 138,000 | |
110,000 shares of common stock were outstanding throughout
2018.
Required:
1. Prepare a single-step income statement for
2018, including EPS disclosures.
2. Prepare a multiple-step income statement for
2018, including EPS disclosures.
In: Accounting
please solve:
The following information pertaining White Corporation is available for the year ended 2015:
Pretax financial income, $500,000.
Unearned revenue, $60,000, was deferred on the books but recognized in taxable income of 2015 (future deductible). $35,000 and $25,000 of this temporary difference (i.e., the unearned revenue) will be reversed in 2016 and 2017, respectively.
The tax rates of 2015, 2016 and 2017 are 30%, 25%, and 25%, respectively.
Instructions:
(a) Compute White's 2015 taxable income.
(b) Prepare the journal entry to record income tax expense, deferred income tax asset, and income taxes payable of White for 2015.
In: Accounting
Sweet Bakery sells pastries and cupcakes. Usually, for every three pastries they sell one cupcake (which means, pastries : cupcake = 3:1). Each pastry has an BDT80 contribution margin, and each cupcake has a BDT60 contribution margin. Sweet Bakery’s fixed costs are BDT180,000 per month. The selling prices of pastries and cupcakes, respectively, are BDT300 and BDT150. The business is subjected to a 40 percent income tax rate.
1. How much revenue is needed to earn a pre-tax profit of BDT150,000?
2. How much revenue is needed to earn an after-tax profit of BDT150,000?
In: Accounting
An airline charges the following baggage fees: $25 for the first bag and $35 for the second. Suppose 54% of passengers have no checked luggage, 34% have one piece of checked luggage and 12% have two pieces. Suppose that a negligible portion of people check more than two bags.
a) Build a probability model, compute the average revenue per
passenger, and compute the corresponding standard deviation.
b ) About how much revenue should the airline expect for a flight
of 120 passengers? With what standard deviation? Note any
assumptions made and whether they are justified.
Thank you ! :)
In: Statistics and Probability