Exercise 22-14 Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. Prepare a projected CVP income statement for 2017: (a) assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ $ (b) assuming that changes are made as described. (Round per unit to 2 decimal places, e.g. 15.25.) CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ $ LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

1. Issued 50,000 shares of capital stock in exchange for $500,000 in cash.

2.Purchased equipment at a cost of $80,000. $30,000 cash was paid and a note payable was signed for the balance owed.

3.Purchased inventory on account at a cost of $130,000. The company uses the perpetual inventory system.

4.Credit sales for the month totaled $140,000. The cost of the goods sold was $90,000.

5.Paid $7,000 in rent on the warehouse building for the month of March.

6.Paid $8,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.

7.Paid $90,000 on account for the merchandise purchased in 3.

8.Collected $75,000 from customers on account.

9.Recorded depreciation expense of $3,000 for the month on the equipment.

Required: Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $60,000.

Moorcroft Company’s budgeted sales and direct materials purchases are as follows:

Moorcroft’s sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcroft’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase.

Prepare a schedule of expected collections from customers for June.

Prepare a schedule of expected payments for direct materials for June.

Moorcroft’s assistant controller suggested that Moorcroft hire a part time collector to encourage customers to pay more promptly and to reduce the amount of uncollectible accounts. Sales are still 40% cash and 60% credit but the assistant controller predicted that this would cause credit sales to be collected 30% in the month of the sale, 50% in the month following sale, and 18% in the second month following sale; 2% are uncollectible.

Prepare a schedule of expected collections from customers for June. How did these changes impact cash collections?

Would it be worth paying the collector $1,000 per month?

The assistant controller also suggested that the company switch their purchases to 40% cash and 60% on account to help stretch out their cash payments. There is no additional interest charge to do this and Moorcroft is still paying their bills on time. There is no change to the company’s payment pattern.

Prepare a schedule of expected payments for direct materials for June.

How did these changes impact the cash payments for June?

Nitric acid is often manufactured from the atmospheric gases nitrogen and oxygen, and hydrogen prepared by reforming natural gas, in a two-step process. In the first step, nitrogen and hydrogen react to form ammonia: N 2 ( g ) + 3 H 2 ( g ) → 2 NH 3 ( g )

In the second step, ammonia and oxygen react to form nitric acid HNO 3 and water: NH 3 ( g ) + 2 O 2 ( g ) → HNO 3 ( g ) + H 2 O ( g )

Suppose the yield of the first step is 86. % and the yield of the second step is 74. % . Calculate the mass of hydrogen required to make 8.0 kg of nitric acid. Be sure your answer has a unit symbol, if needed, and is rounded to 2 significant digits.

A monopolistic firm operates in two separate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows:

     Market A p = 15 - Q; Market B p = 11 - Q

The company estimates its total cost function to be TC = 4Q. Calculate the following:

1. quantity, total revenue, and profit when the company maximizes its profit and charges the same price in both markets
2. quantity, total revenue, and profit when the company charges different prices in each market and maximizes its total profit

Joseph Company operates three divisions, X, Y, and Z. The following
information is available for the most recent month:

Joseph Company:
Sales revenue .............. $700,000
Segment margin ............. $239,000
Net income ................. $125,000

Division X:
Sales revenue .............. $200,000
Contribution margin ........ $140,000
Segment margin ............. $109,000

Division Y:
Variable costs ............. 70% of sales

Division Z:
Variable costs ............. $118,000
Traceable fixed costs ...... $ 56,000
Contribution margin ........ 60% of sales

Calculate the total fixed costs incurred by Joseph Company during
the most recent month.

Please label the answer as answer=-----------

he demand and cost function for a company are estimated to be as follows:

P=100−8QTC=50+80Q−10Q2+0.6Q3P=100-8QTC=50+80Q-10Q2+0.6Q3

1. What price should the company charge if it wants to maximize its profit in the short run?

2. What price should it charge if it wants to maximize its revenue in the short run?

3. Suppose the company lacks confidence in the accuracy of cost estimates expressed in a cubic equation and simply wants to use a linear approximation. Suggest a linear representation of this cubic equation. What difference would it make on the recommended profit-maximizing and revenue-maximizing prices?

Required information

Exercise 6-21B Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7)

[The following information applies to the questions displayed below.]

On January 1, Year 1, the general ledger of a company includes the following account balances:

The $33,000 beginning balance of inventory consists of 330 units, each costing $100. During January Year 1, the company had the following inventory transactions:

The following information is available on January 31, Year 1.

1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
2. The company estimates future uncollectible accounts. The company determines $4,300 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $12,600.

Exercise 6-21B Part 2

a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
b. The company estimates future uncollectible accounts. The company determines $4,300 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
d. Accrued income taxes at the end of January are $12,600.
  
2. Record adjusting entries on January 31 for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

Two construction companies were vying for market share dominance. Company A embraced total quality, whereas company B did not. After an initial transition created by various change initiatives, during which company A lost some of their employees because of the quality initiative, a period of equilibrium and growth ensued. Customer were surveyed, employees were trained, and team began working on customer value and satisfaction improvements. At first company B was not concerned with company A Actually Company B hired the former employees from company A and watched as company A’s employees talked to customers and spent their off-season conducting employee training and forming problem and project teams However things changed. Company B began losing customers, to its rival, and they were replaced with other customers who had strained credit and multiple grievances. In addition, some of Company B’s finest employees left Company A despite promises of higher salaries and future bonuses. Company B decided to mimic Company A’s quality program by hiring an outside consultant. Time was spent advertising for and screening an appropriate consultant. The consultant was empowered to lead the program, with the blessing and support of the owner and president. The consultant met with the executive team and later with the employees and laid out the vision for the new quality program. This included training all employees in the concept and principle of total quality. Shortly with after the training sessions ended, teams were assembled with specific issues to solve. Meanwhile, valuable of- seasons time was expended, and the new construction seasons was drawing near. The new season meant employee workloads increased, which in turn required more employee work hours. Profit opportunities quickly replaced quality meetings and employees were left angry and confused. The initial hope of more involvement with work activities, netter contact with customers, and increased communications was replaced with frustration and cynicism. Before much could be done, the new construction season was in full swing. Later, as Company B’s construction season came to end, the consultant had difficulty finding volunteers to staff the quality teams. Conscripts were found, and teams resumed their work. Team meetings were plagued with personal attacks, finger pointing and conflict. Employees were threatened and some times fired before the whole quality program was solved. What went wrong? Why couldn’t company B mimic company A’s apparent success with quality? What might you have done differently?