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Martinez Company’s relevant range of production is 10,500 units to 15,500 units. When it produces and sells 13,000 units, its unit costs are as follows: |
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Amount Per Unit |
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| Direct materials | $ | 5.30 | |
| Direct labor | $ | 2.80 | |
| Variable manufacturing overhead | $ | 1.40 | |
| Fixed manufacturing overhead | $ | 3.30 | |
| Fixed selling expense | $ | 2.30 | |
| Fixed administrative expense | $ | 2.20 | |
| Sales commissions | $ | 1.20 | |
| Variable administrative expense | $ |
0.45 |
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| 1. |
For financial accounting purposes, what is the total amount of product costs incurred to make 13,000 units?
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In: Accounting
There are two polluters in a specific region, each of whom is currently emitting 100 units of pollution for a total of 200 units of pollution in the region. The government wants to reduce total pollution by 60 units (i.e., A_ST = 60 ). For simplicity, ignore enforcement costs. The total and marginal abatement costs of each polluter are as follows:
TAC_1 = 0.2A_1^2 → MAC_1 = 0.4A_1
TAC_2 = 0.3A_2^2 → MAC_2 = 0.6A_2
Command-and-Control Approach
a. Would it be cost-effective to achieve the desired 60 units of total abatement by requiring each polluter to reduce pollution by 30 units? Why or why not?
b. What is the total cost to each polluter in this case? What is the total cost to society?
c. What is the deadweight loss to society of this policy? (Hint: derive answer to (f) first)
In: Economics
Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance:
Financial update as of June 15
| • | Your existing business generates $87,000 in EBIT. |
| • | The corporate tax rate applicable to your business is 25%. |
| • | The depreciation expense reported in the financial statements is $16,571. |
| • | You don’t need to spend any money for new equipment in your existing cafés; however, you do need $13,050 of additional cash. |
| • | You also need to purchase $6,960 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. |
| • | It is also estimated that your accruals, including taxes and wages payable, will increase by $4,350. |
Based on your evaluation you have in free cash flow.
Can a company have negative free cash flow?
Yes
No
In: Finance
| Please Choose The apparent depth of the object is less than the real depth. The apparent depth of the object is greater than the real depth. There is no difference between the apparent depth and the actual depth of the object. |
In: Physics
A bank loans Kellie's Print Shop $350,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is
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In: Economics
The Petersik family is considering purchasing a second home to use for short term rentals near the beach. If it purchases the house, they will place a down payment of $59,000 on the house. They estimate they will get an annual net rental profit of $10,000 after their mortgage and expenses are paid. After 20 years, they plan to pass the rental home along to their children, so assume the home has negligible salvage value. What would be the ERR if the Petersik family decides to invest in a rental home, assuming they keep the home for 20 years? Assume their MARR is 12%.
In: Finance
The Petersik family is considering purchasing a second home to use for short term rentals near the beach. If it purchases the house, they will place a down payment of $62,000 on the house. They estimate they will get an annual net rental profit of $7,500 after their mortgage and expenses are paid. After 18 years, they plan to pass the rental home along to their children, so assume the home has negligible salvage value. What would be the ERR if the Petersik family decides to invest in a rental home, assuming they keep the home for 18 years? Assume their MARR is 14%.
In: Finance
Godfather Pizza is a popular pizza restaurant near a university campus. This pizza shop is very popular as the price is reasonable, and the quality of the pizza is excellent. It has broad range of varieties, which students can choose the type of dough and topping. The everyday sales activity is high, which keep this pizza shop busy. However, Greg Taylor, the accountant noticed that there is a small profit compares to the sales. Greg starts analyzing the efficiency of the business, particularly inventory practices. He noticed that the owner had more than 60 items regularly carried in inventory. Of these items, the most expensive to buy and carry was cheese. Cheese was ordered in blocks at $27.50 per block. Annual usage totals 16 000 blocks.
Upon questioning the owner, Greg found that there are problems in managing the cheese. The size of the order was usually 600 blocks. The cost of carrying one block of cheese is 10% of its purchase price. It took 7 ten days to receive a new order when placed, which was done whenever the inventory of cheese dropped to 500 blocks. It costs $50 to place and receive an order.
Godfather Pizza stays open five days a week and operates 50 weeks a year. It closes during public holiday and Christmas day.
Requirements:
In: Finance
A duplex is available for purchase near the university. You estimate that you can rent one of the units for $750 and the other for $650 a month. Expenses will be $125 a month. The current sales price is 165,000 and you estimate the property will be worth 360,000 in 10 years. What is your estimated annual IRR for this property?
Answer should be formatted as a percent with 2 decimal places.
What is the estimated annual rate of appreciation in the previous problem?
Answer should be formatted as a percent with 2 decimal places.
In: Finance
What impact do you feel Baby Boomers are going to have on healthcare in the near future? How can we prepare for that?
- Do you think we will have enough staff to take care of this group of Baby Boomers! How are we going to manage that?
- What impact do you feel this may have beyond healthcare to housing, transportation, travel and more?
In: Economics