Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 pounds of oysters in August. The company’s flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 7,100 | |
| Revenue ($4.20q) | $ | 29,820 |
| Expenses: | ||
| Packing supplies ($0.35q) | 2,485 | |
| Oyster bed maintenance ($3,000) | 3,000 | |
| Wages and salaries ($2,400 + $0.40q) | 5,240 | |
| Shipping ($0.80q) | 5,680 | |
| Utilities ($1,250) | 1,250 | |
| Other ($490 + $0.01q) | 561 | |
| Total expense | 18,216 | |
| Net operating income | $ | 11,604 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 7,100 | |
| Revenue | $ | 27,200 |
| Expenses: | ||
| Packing supplies | 2,655 | |
| Oyster bed maintenance | 2,860 | |
| Wages and salaries | 5,650 | |
| Shipping | 5,410 | |
| Utilities | 1,060 | |
| Other | 1,181 | |
| Total expense | 18,816 | |
| Net operating income | $ | 8,384 |
Required:
Calculate the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In: Accounting
For large U.S. companies, what percentage of their total income comes from foreign sales? A random sample of technology companies (IBM, Hewlett-Packard, Intel, and others) gave the following information.†
| Technology companies, % foreign revenue: x1; n1 = 16 | |||||||
| 62.8 | 55.7 | 47.0 | 59.6 | 55.3 | 41.0 | 65.1 | 51.1 |
| 53.4 | 50.8 | 48.5 | 44.6 | 49.4 | 61.2 | 39.3 | 41.8 |
Another independent random sample of basic consumer product companies (Goodyear, Sarah Lee, H.J. Heinz, Toys 'R' Us) gave the following information.
| Basic consumer product companies,% foreign revenue: x2; n2 = 17 | |||||||||
| 28.0 | 30.5 | 34.2 | 50.3 | 11.1 | 28.8 | 40.0 | 44.9 | ||
| 40.7 | 60.1 | 23.1 | 21.3 | 42.8 | 18.0 | 36.9 | 28.0 | ||
| 32.5 | |||||||||
Assume that the distributions of percentage foreign revenue are mound-shaped and symmetric for these two company types.
Let μ1 be the population mean for x1 and let μ2 be the population mean for x2. Find an 80% confidence interval for μ1 − μ2. (Round your answers to two decimal places.)
lower limit=
upper limit=
In: Statistics and Probability
Please answer all questions, fill in table and show calculations.
The table below shows the hypothetical prices and quantities demanded of a software product. Assume that the fixed cost of setting up the production of software is $200 and the marginal cost is $5.
Fill out the table by calculating the revenue, the marginal revenue, total cost, the marginal cost, and the profit.
Give a general definition of price elasticity of demand. Explain the factors that make the demand of the product more elastic.
Calculate the own price elasticity of increasing the price from $0 to $5, from $5 to $10, etc., from $35 to $40. In which price region is the demand for the product elastic and in which region is it inelastic?
Conduct a stay even analysis by calculating the critical loss from increasing the price from $30 to $35. How much business can the software company afford to lose by increasing the price in order to maintain its profit?
Price Quantity Sold Revenue Total Cost MR MC Profit Elasticity
40 0
35 10
30 20
25 30
20 40
15 50
10 60
5 70
0 80
In: Economics
| Date | Transaction Description |
| July 1 | Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. |
| July 1 | Paid the premium on a 1-year insurance policy, $4,800. |
| July 1 | Paid the current month's store rent expense, $3,600. |
| July 6 | Purchased repair equipment from Paul's Pool Equipment Company, $7,800. Paid $600 down and the balance was placed on account. |
| July 8 | Purchased repair supplies from Mary's Repair Company on credit, $450. |
| July 10 | Paid telephone bill, $300. |
| July 11 | Cash pool service revenue for the first third of July, $2,650. |
| July 18 | Made payment to Mary's Repair Company, $300. |
| July 20 | Cash pool service revenue for the second third of July, $4,000. |
| July 31 | Cash pool service revenue for the last third of July, $2,250. |
| July 31 | Paid the current month's electric bill, $500. |
| July 31 | Declared and paid cash dividend of $1,100. |
Please assist with the journal entries
In: Accounting
You are the advisor of a Junior Achievement group in a local high school. You need to help the group make a decision about fees that must be paid to sell gardening tools at the Home and Garden Show. The group sells a set of tools for $20.00. The manufacturing cost (all variable) is $6 per set. The Home and Garden Show coordinator allows the following three payment options for groups exhibiting and selling at the show:
1.Pay a fixed booth fee of $5,600.
2.Pay a fee of $3,800 plus 10% of all revenue from tool sets sold at the show.
3.Pay 15% of all revenue from tool sets sold at the show.
REQUIRED
A. Compute the breakeven number of tool sets for each option.
B. Which payment plan has the highest degree of operating leverage?
C. Which payment plan has the lowest risk of loss for the organization? Explain.
D. At what level of revenue should the group be indifferent to options 1 and 2?
E. Which option should Junior Achievement choose, assuming that sales are expected to be 1,000 sets of tools? Explain.
In: Accounting
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 8,000 | |
| Revenue ($4.25q) | $ | 34,000 |
| Expenses: | ||
| Packing supplies ($0.30q) | 2,400 | |
| Oyster bed maintenance ($3,500) | 3,500 | |
| Wages and salaries ($2,100 + $0.45q) | 5,700 | |
| Shipping ($0.75q) | 6,000 | |
| Utilities ($1,230) | 1,230 | |
| Other ($490 + $0.01q) | 570 | |
| Total expense | 19,400 | |
| Net operating income | $ | 14,600 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 8,000 | |
| Revenue | $ | 27,300 |
| Expenses: | ||
| Packing supplies | 2,570 | |
| Oyster bed maintenance | 3,360 | |
| Wages and salaries | 6,110 | |
| Shipping | 5,730 | |
| Utilities | 1,040 | |
| Other | 1,190 | |
| Total expense | 20,000 | |
| Net operating income | $ | 7,300 |
Required:
Calculate the company’s revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
In: Accounting
BandHub Pte Ltd is a company incorporated in Singapore and adopts the Singapore Financial Reporting Standards (SFRSs). It provides voice and data services as well as sells handphones. On 1 January 20X1, BandHub enters into sales contracts with two different customers: Customer X and Customer Y. Both customers choose the same handphone and the same monthly service plan. The standalone selling price for the handphone is $480 (cost of the handphone is $350) and the standalone selling price of the service plan is $60 per month. Customer X purchases the handphone for $480 and enters into a cancellable contract to receive the voice and data services for $60 per month. Customer Y enters into a 24-month service contract for $60 per month and pays $200 for the handphone.
(a) Determine the allocation of the transaction prices for both
customers and the revenue to be recognised for the month of January
and February. Explain your answers using FRS 115 - Revenue from
Contracts with Customers.
(b) To activate the voice and data services, Bandhub Pte Ltd
charges the customers an upfront, non-refundable fee of $12. How
should this activation fee be treated under FRS 115 - Revenue from
Contracts with Customers.
In: Accounting
In 2003, London established a congestion charge for cars and vehicles entering the central London area. Today, motorists entering the charge zone area pay a flat rate of £11.50 (around $22AUD), debited through a scanner. Failure to pay the charge results in a penalty of £130. Currently, electric cars and some low-emmission hybrids receive free entry to the zone. Net revenue from the charge is used to invest in public transport, improved roads and bridges, and create walking and cycling paths. What economic problem (or problems) do you think the congestion charge is trying to solve? Explain how the congestion charge might help to solve these problems.
B)After the charge was introduced, the number of vehicles entering the zone fell by about one-third, riders on buses increased by 15%, and bicycle use increased by 30%. Using principles of microeconomics, what explanations can you give for these changes in the behaviour of drivers?
C)Suppose the charge is increased by 15%, and revenue from the charge scheme increases by 20%. Explain why revenue has increased at a faster rate than price in this case
In: Economics
In: Economics
Best Farm sells cat food and dog food. Its monthly fixed costs average $400,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis:
|
Sales |
Conribution Conribution |
Sales |
Margin |
|
Price |
Margin Margin % |
Share % |
Mix |
|
Cat Food |
50 |
15 |
|
Dog Food |
30 |
6 |
Calculate: (show your calculations and round to 2 decimal places)
In: Accounting