HR Slugger is a professional baseball player in a Major League Baseball league. He is a well-known player and is very popular throughout the league, but especially with the local fans. Much of his population is based on his hitting ability, specifically regarding home runs. The issue emerges from the following facts, similar to an actual situation you may have heard of.
• After days of intense anticipation by sports fans and winters throughout the league, Slugger hits a home run that brakes the record for total home runs during a regular season. The record broken had been in place for 45 years. This is a major event in MLB.
• The homerun ball was hit out of the ball park. It was actually caught outside the playing field by a 14-year-old girl who is, along with her parents, a big fan of HR Slugger and the team.
• League policy is that in such a situation, the ball belongs to the person that obtains the ball.
• Given the circumstances (a long-term home run record broken), the subject ball is immediately very valuable. Estimated value could be $5000,000-$1,000,000, possibly more.
• The girl and her parents are very proud of the catch and plan to add the ball their sports memorabilia to be treasured for years to come. As it happens, the parents are clients of yours, and they come to you for advice.
Issue: Does the event described result in any kind of tax issue?
What is your advice to them?
Include factual/legal analysis, including authority for a conclusion.
In: Accounting
Instructions: Work on the following questions/problems. Be sure to answer all questions (and sub questions within a problem).
Price ($) Qty. Demanded
90 100
110 90
130 70
In: Economics
The economy has been growing at an average rate of 2.5% during the last year. The chairman of the Federal Reserve has stated that due to the economic growth and improvement in the labor markets, as evidenced by a declining unemployment rate, that the Fed stands ready to increase interest rates. Meanwhile, the government is having to deal with a growing budget deficit and may need to borrow money from the public to fund its operations. This is easily done with the sale of Treasury bills and bonds. However, such an increase in borrowing could affect the results of the Fed's actions. Also, any tax reductions that occur will likely affect expenditures by both consumers and businesses. This in turn is expected to increase GDP assuming no surprise events that would negatively affect employment and economic growth.
1. The reaction of the Fed Chairman is that the economic growth during this phase of the economic cycle could produce higher ______
and the Fed's number one goal is for stable ______.
2. The phase of the business cycle given the facts in the statement above implies the economy is not in a ______ phase.
3. The government's increased demand for funds attained from the bond markets implies that as the supply of
bonds ________ holding demand constant, the price will ________ and pushing interest rates _______.
4. If interest rates increase due to the Fed actions, the economic impact is a result of _______ policy.
5. If the Fed does nothing but the government decides to increase bond sales, the resulting impact on interest rates would be a result of _______ policy.
6. Economic variables that predict the near term future condition of the economy are grouped together and called ______ indicators.
7. Unemployment rates exceeding ______ (spell out the value) percent would indicate the economy could be heading towards
a _______.
8. If the economic environment described above continues, business managers could see their cost of labor _______ in the near term if the unemployment rate goes ________, and financing costs further ______ because of anticipated Fed actions. All these events could produce (inflation/deflation) _______ which could in turn cause the business cycle to reach its (peak/trough) ______.
In: Economics
A firm has a fixed cost of $20,000 in its first year of operation. When the firm produces 1,000 units of output, its total costs are $80,000. When it produces 1,100 units of output, its variable costs are $70,000. If the marginal cost of each of the 100 additional units of output is the same then the marginal cost of producing the 1,050th unit of output is less than $90.
True
false
The average variable cost curve and average total cost curve will eventually intersect as output increases because average fixed cost eventually becomes negative.
True
False
If marginal cost is rising, then it is likely that marginal product is decreasing because the additional input costs are spread over fewer units of output.
True
False
In: Economics
Environmental Cost Report
Verde Company reported operating costs of $32,000,000 as of December 31, 20x5, with the following environmental costs:
| Testing for contamination | $ 480,000 |
| Inspecting products | 544,000 |
| Treating toxic waste | 992,000 |
| Obtaining ISO 14001 certification | 480,000 |
| Designing processes | 416,000 |
| Cleaning up oil spills | 2,016,000 |
| Maintaining pollution equipment | 864,000 |
| Cleaning up contaminated soil | 3,872,000 |
Required:
1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79".
| Verde Company | |||
| Environmental Cost Report | |||
| For the Year Ended December 31, 20x5 | |||
| Environmental Cost | Total Environmental Cost | Percentage of Operating Costs | |
| Prevention costs: | |||
| $ | |||
| $ | % | ||
| Detection costs: | |||
| $ | |||
| % | |||
| Internal failure costs: | |||
| $ | |||
| % | |||
| External failure costs: | |||
| $ | |||
| % | |||
| Total quality costs | $ | % | |
2. What if Verde deliberately did not include the cost of damaging the ecosystem because of solid waste disposal in its environmental cost report? What is the most likely reason?
In: Accounting
|
Smithson Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: |
| Molding | Fabrication | Total | ||||
| Machine-hours | 24,000 | 34,000 | 58,000 | |||
| Fixed manufacturing overhead costs | $ | 770,000 | $ | 230,000 | $ 1,000,000 | |
| Variable manufacturing overhead per machine-hour | $ | 5.00 | $ | 5.00 | ||
|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-75 and Job C-100. It provided the following information related to those two jobs: |
| Job D-75: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 373,000 | $ | 326,000 | $ | 699,000 |
| Direct labor cost | $ | 250,000 | $ | 170,000 | $ | 420,000 |
| Machine-hours | 17,000 | 7,000 | 24,000 | |||
| Job C-100: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 290,000 | $ | 270,000 | $ | 560,000 |
| Direct labor cost | $ | 160,000 | $ | 300,000 | $ | 460,000 |
| Machine-hours | 7,000 | 27,000 | 34,000 | |||
Smithson had no overapplied or underapplied manufacturing overhead
during the year.
eBook & Resources
eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 1eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 2eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 3
8.
value:
3.00 points
Required information
| Required: |
| Assume Smithson uses a plantwide overhead rate based on machine-hours. |
| 1-a. |
Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.) |
| Predetermined overhead rate | $ per MH | |
| 1-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 1-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 1-d. | What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
| Cost of goods sold | $ | |
References
eBook & Resources
WorksheetLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-03 Compute the total cost and average cost per unit of a job.
Difficulty: HardLearning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate.
Ask your instructor a questionCheck my work
9.
value:
3.00 points
Required information
| Assume Smithson uses departmental overhead rates based on machine-hours. |
| 2-a. |
Compute the predetermined departmental overhead rates. (Round your answers to 2 decimal places.) |
| Predetermined Overhead Rates |
|
| Molding Department | $ |
| Fabrication Department | $ |
| 2-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 2-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 2-d. |
What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Cost of goods sold | $ |
|
In: Accounting
|
Smithson Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: |
| Molding | Fabrication | Total | ||||
| Machine-hours | 24,000 | 34,000 | 58,000 | |||
| Fixed manufacturing overhead costs | $ | 770,000 | $ | 230,000 | $ 1,000,000 | |
| Variable manufacturing overhead per machine-hour | $ | 5.00 | $ | 5.00 | ||
|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-75 and Job C-100. It provided the following information related to those two jobs: |
| Job D-75: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 373,000 | $ | 326,000 | $ | 699,000 |
| Direct labor cost | $ | 250,000 | $ | 170,000 | $ | 420,000 |
| Machine-hours | 17,000 | 7,000 | 24,000 | |||
| Job C-100: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 290,000 | $ | 270,000 | $ | 560,000 |
| Direct labor cost | $ | 160,000 | $ | 300,000 | $ | 460,000 |
| Machine-hours | 7,000 | 27,000 | 34,000 | |||
Smithson had no overapplied or underapplied manufacturing overhead
during the year.
eBook & Resources
eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 1eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 2eBook: JOB-ORDER COSTING—AN EXAMPLE – LO 3
8.
value:
3.00 points
Required information
| Required: |
| Assume Smithson uses a plantwide overhead rate based on machine-hours. |
| 1-a. |
Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.) |
| Predetermined overhead rate | $ per MH | |
| 1-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 1-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 1-d. | What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
| Cost of goods sold | $ | |
References
eBook & Resources
WorksheetLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-03 Compute the total cost and average cost per unit of a job.
Difficulty: HardLearning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate.
Ask your instructor a questionCheck my work
9.
value:
3.00 points
Required information
| Assume Smithson uses departmental overhead rates based on machine-hours. |
| 2-a. |
Compute the predetermined departmental overhead rates. (Round your answers to 2 decimal places.) |
| Predetermined Overhead Rates |
|
| Molding Department | $ |
| Fabrication Department | $ |
| 2-b. |
Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
| Total Manufacturing Cost |
|
| Job D-75 | $ |
| Job C-100 | $ |
| 2-c. |
If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Bid price | |
| Job D-75 | $ |
| Job C-100 | $ |
| 2-d. |
What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places, "Total manufacturing cost" and final answers to the nearest dollar amount.) |
| Cost of goods sold | $ |
|
In: Accounting
1. Your director has commissioned you to put together projections for a new ambulatory urgent care center. Your financial projections for the first year of operations are as follows: | |||
Number of Visits | 10,000 | Utilities | $3,500 |
Wages and Benefits | $420,000 | Medical Supplies | $75,000 |
Rent | $8,000 | Administrative Supplies | $11,000 |
Depreciation | $30,000 | ||
Assume that all costs are fixed except supplies costs, which are variable. | |||
a. What is the clinic’s underlying cost structure? | |||
Insert your response here. | |||
b. What are the clinics expected total cost? | |||
Insert your response here. | |||
c. What are the clinic’s estimated total cost at 5,500 visits? At 10,500 visits? | |||
Insert your response here. | |||
d. What is the average cost per visit at 7,000, 10,000 and 12,000 visits? | |||
Insert your response here. | |||
2. North Central Bronx Hospital has estimated the following costs for its inpatient services: Fixed Costs $ 12,000,000 Variable Cost Per Inpatient day $300 North Central Bronx Hospital expects to have 18,000 inpatient days next year. | |||
| |||
Insert your response here. | |||
| |||
Insert your response here. | |||
| |||
Insert your response here. | |||
| |||
Insert your response here. | |||
In: Finance
C++
13.2 Lab13 - using if-else if to calculate sales tax and shipping costs
The Concept
Real world problems often involve complex logical conditions. Today we learned two techniques to deal with complexity – the else if construct and logical operators. Use these new tools to below (really you only need one of these tools).
The Exercise
Write a program to determine the shipping costs for an online purchase.
Prompt the user for the number of items using the following
prompt:
Enter the number of items:
Prompt the user for the purchase price of using the following
prompt:
Enter the purchase price: $
Calculate the sales tax as 8.25% of the purchase price
Calculate the shipping costs as a flat rate using the following information:
| Number of items | Shipping cost |
|---|---|
| 1-6 | $8.00 |
| 7-12 | $4.50 |
| more than 12 | $1.00 |
Calculate the total cost as the sum of the purchase price, sales tax and shipping cost
Output the sales tax and shipping costs using the following
example:
Purchase price: $##.##
Sales tax: $##.##
Shipping cost: $##.##
Total cost: $##.##
Note: To format the output for 2 decimals use
the following include statement:
#include
and prior to the output statements include the following
statement:
cout << fixed << setprecision(2);
Examples:
Enter the number of items: 21 Enter the purchase price: $49.99 Purchase price: $49.99 Sales tax: $4.12 Shipping cost: $1.00 Total cost: $55.11
Enter the number of items: 10 Enter the purchase price: $35.00 Purchase price: $35.00 Sales tax: $2.89 Shipping cost: $4.50 Total cost: $42.39
In: Computer Science
The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 27 cars per month. The cars cost $69 each, and ordering costs are approximately $11 per order, regardless of the order size. The annual holding cost rate is 21%.
| (a) | Determine the economic order quantity and total annual cost under the assumption that no backorders are permitted. |
| If required, round your answers to two decimal places. | |
| Q* = | |
| Total Cost = $ | |
| (b) | Using a $49 per-unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost for the model racing cars. |
| If required, round your answers to two decimal places. | |
| S* = | |
| Total Cost = $ | |
| (c) | What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year. |
| If required, round your answer to two decimal places. | |
| Length of backorder period = days | |
| (d) | Would you recommend a no-backorder or a backorder inventory policy for this product? Explain. |
| If required, round your answers to two decimal places. | |
| Recommendation would be [backorder OR no-backorder] inventory policy, since the maximum wait is only days and the cost savings is $ . | |
| (e) | If the lead time is six days, what is the reorder point for both the no-backorder and backorder inventory policies? |
| If required, round your answers to two decimal places. | |
| Reorder point for no-backorder inventory policy is . | |
| Reorder point for backorder inventory policy is . |
In: Statistics and Probability