XXX Manufacturing and YYY Products both seek funding at the lowest possible cost. XXX would prefer the flexibility of floating rate borrowing, while YYY wants the security of fixed rate borrowing. XXX wants floating rate debt, so it could borrow at LIBOR+0.5%. However it could borrow fixed at 7% and swap for floating rate debt. YYY wants fixed rate, so it could borrow fixed at 10%. However it could borrow floating at LIBOR+2.5% and swap for fixed rate debt. If the cost saving for XXX is 40% of the total, YYY 30% and swap bank is 30% of the total cost savings, show all your calculations and draw a diagram.
In: Finance
The Roche Radius, defined to the orbital distance at
which a satellite tidally torn apart by the parent body, is named
after Edward Roche, who first derived it in 1848. Recall that his
radius is given by: )1/3 d=r (2 M m Where r is the radius of the
satellite, m the mass of the satellite, and M is the mass of the
parent body.
(a) Recast this equation in terms of the density of
the satellite (m), the density of the parent body (M), and radius
of the parent body (R).
(b) Let s consider the Saturn system, and apply this
equation. Saturns moon Pan orbits the planet at a distance 1.34
105 km; inside of a gap in the rings! Calculate the ratio of Pans
orbital radius to its calculated Roche Radius (Pan = 0.42 g/cm2,
Saturn = 0.687 g/cm2, RSaturn = 58,000 km). Comment on whether
this moon is safe from tidal disruption, or not.
(c) Using what you know about the Roche Radius, and the above example, calculate the radius of the moon required to create the rings of Saturn as seen today (assuming that it was just one moon, with the density of pan and near the present-day orbit of Pan). The total mass in Saturns rings is approximately 3 1019 kg. (Hint for calculating Saturns mass: 0.687 g/cm2 = 687 kg/m3)
In: Physics
CORPORATE VALUATION
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million, $7 million, $8 million, and $13 million. After the fourth year, free cash flow is projected to grow at a constant 8%. Brandtly's WACC is 9%, the market value of its debt and preferred stock totals $66 million; and it has 20 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance
Before you write your paper, conduct this simple experiment on classical conditioning.
You will need a bell (a set of keys works too, a hand-held mirror, and a room that becomes completely dark when the light is turned off. Hold the bell while standing in the room near the light switch. Once in position, ring the bell and then immediately turn off the light. Wait in total darkness for 15 seconds, then turn the light on. Wait another 15 seconds with the light on, then ring the bell and immediately turn the light off again, waiting another 15 seconds in the dark.
Repeat this procedure 20 to 30 times, making sure that in each case the bell is rung immediately before the light is turned off. Now, with the light on, watch your eyes closely in the mirror and then ring the bell. Your pupils should dilate slightly even without a change in light!
Cover the following items in your paper:
Share your experience with this experiment.
Identify the neutral stimulus (NS), the unconditioned stimulus (US), the unconditioned response (UR), the conditioned stimulus (CS), and the conditioned response (CR). (You must identify these five elements to receive full credit.)
Identify two to three real-life examples of classical conditioning that you are aware of in your life.
This paper should be one page.
In: Psychology
Crane makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $1,400,000:
| Rate | |||
|---|---|---|---|
| Assembly | $1.25 per direct labor hour | ||
| Fabrication | $9.75 per machine hour | ||
| Setups | $18 per batch | ||
| Bonding | $112,000 direct to Complex |
Only the Complex product requires bonding, so all the costs of
bonding should be allocated to Complex. The following data relate
to both products.
| Simple | Complex | |||
|---|---|---|---|---|
| Units produced | 126,000 | 40,000 | ||
| Direct labor hours | 220,000 | 100,000 | ||
| Machine hours | 50,000 | 30,000 | ||
| Batches | 2,000 | 4,000 |
Using the traditional method of allocating overhead costs,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round overhead rate and overhead per unit answers to 2
decimal places, e.g. 15.25.)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Machine hours | Enter a number of hours | Enter a number of hours | ||||
| Overhead rate | $Enter a dollar amount rounded to 2 decimal places | $Enter a dollar amount rounded to 2 decimal places | ||||
| Total overhead to product | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
eTextbook and Media
Using the activity-based costing rates,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round per unit answers to 2 decimal places, e.g.
15.25)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Assembly | $Enter a dollar amount | $Enter a dollar amount | ||||
| Fabrication | Enter a dollar amount | Enter a dollar amount | ||||
| Setups | Enter a dollar amount | Enter a dollar amount | ||||
| Bonding | Enter a dollar amount | Enter a dollar amount | ||||
| Total overhead | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
In: Accounting
Concord makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $1,495,200:
| Rate | |||
|---|---|---|---|
| Assembly | $1.25 per direct labor hour | ||
| Fabrication | $9.75 per machine hour | ||
| Setups | $18 per batch | ||
| Bonding | $118,550 direct to Complex |
Only the Complex product requires bonding, so all the costs of
bonding should be allocated to Complex. The following data relate
to both products.
| Simple | Complex | |||
|---|---|---|---|---|
| Units produced | 127,000 | 42,000 | ||
| Direct labor hours | 240,000 | 101,000 | ||
| Machine hours | 51,000 | 33,000 | ||
| Batches | 2,700 | 4,600 |
Using the traditional method of allocating overhead costs,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round overhead rate and overhead per unit answers to 2
decimal places, e.g. 15.25.)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Machine hours | Enter a number of hours | Enter a number of hours | ||||
| Overhead rate | $Enter a dollar amount rounded to 2 decimal places | $Enter a dollar amount rounded to 2 decimal places | ||||
| Total overhead to product | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
Using the activity-based costing rates,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round per unit answers to 2 decimal places, e.g.
15.25)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Assembly | $Enter a dollar amount | $Enter a dollar amount | ||||
| Fabrication | Enter a dollar amount | Enter a dollar amount | ||||
| Setups | Enter a dollar amount | Enter a dollar amount | ||||
| Bonding | Enter a dollar amount | Enter a dollar amount | ||||
| Total overhead | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
In: Accounting
Review the income statements on the Absorption Statement and Variable Statement panels, then complete the following table. The company’s sales price per unit is $75.00, and the number of units in ending inventory is 4,000.
|
Item |
Amount |
|---|---|
|
Number of units sold |
|
|
Variable sales and administrative cost per unit |
|
|
Number of units manufactured |
|
|
Variable cost of goods manufactured per unit |
|
|
Fixed manufacturing cost per unit |
Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold.
|
Saxon, Inc. |
|
Absorption Costing Income Statement |
|
For the Year Ended December 31 |
|
1 |
Sales |
$1,200,000.00 |
|
|
2 |
Cost of goods sold: |
||
|
3 |
Beginning inventory |
$0.00 |
|
|
4 |
Cost of goods manufactured |
800,000.00 |
|
|
5 |
Ending inventory |
(160,000.00) |
|
|
6 |
Total cost of goods sold |
640,000.00 |
|
|
7 |
Gross profit |
$560,000.00 |
|
|
8 |
Selling and administrative expenses |
305,000.00 |
|
|
9 |
Income from operations |
$255,000.00 |
Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. This type of income statement includes a computation of manufacturing margin.
|
Saxon, Inc. |
|
Variable Costing Income Statement |
|
For the Year Ended December 31 |
|
1 |
Sales |
$1,200,000.00 |
|
|
2 |
Variable cost of goods sold: |
||
|
3 |
Beginning inventory |
$0.00 |
|
|
4 |
Variable cost of goods manufactured |
560,000.00 |
|
|
5 |
Ending inventory |
(112,000.00) |
|
|
6 |
Total variable cost of goods sold |
448,000.00 |
|
|
7 |
Manufacturing margin |
$752,000.00 |
|
|
8 |
Variable selling and administrative expenses |
240,000.00 |
|
|
9 |
Contribution margin |
$512,000.00 |
|
|
10 |
Fixed costs: |
||
|
11 |
Fixed manufacturing costs |
$240,000.00 |
|
|
12 |
Fixed selling and administrative expenses |
65,000.00 |
|
|
13 |
Total fixed costs |
305,000.00 |
|
|
14 |
Income from operations |
$207,000.00 |
Whenever the units manufactured differ from the units sold, finished goods inventory is affected. In analyzing income from operations, such increases and decreases could be misinterpreted as operating efficiencies or inefficiencies. Each decision-making situation should be carefully analyzed in deciding whether absorption or variable costing reporting would be more useful.
All costs are controllable in the long run by someone within a business. For a given level of management, costs may be controllable costs or noncontrollable costs.
The production manager for Saxon, Inc. is worried because the company is not showing a high enough profit. Looking at the income statements on the Absorption Statement panel and the Variable Statement panel, he notices that the net income is higher on the absorption cost income statement. He is considering manufacturing another 10,000 units, up to the company’s capacity for manufacturing, in the coming year. He reasons that this will boost net income and satisfy the company’s owner that the company is sufficiently profitable. Although the total units manufactured changes, assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same. Complete questions (1)-(4) that follow. If the answer is zero, enter "0".
1. Use the income statements on the Absorption Statement and Variable Statement panels to complete the following table for the original production level. Then prepare similar income statements at a production level 10,000 units higher and add that information to the table. Assume that total fixed costs, unit variable costs, unit sales price, and the sales levels are the same at both production levels.
|
Income From Operations |
|||
|---|---|---|---|
|
Original |
Original |
Additional |
Additional |
|
Production |
Production |
10,000 |
10,000 |
|
Level-Absorption |
Level-Variable |
Units-Absorption |
Units-Variable |
2. What is the change in net income from producing 10,000 additional units under absorption costing?
3. What is the change in net income from producing 10,000 additional units under variable costing?
For planning and control purposes, managers often compare planned and actual contribution margin. Variable costing is used as a basis for such analyses.
Examine the following contribution margin data, and then complete the Contribution Margin Analysis panel.
|
Saxon, Inc. |
||
|
Contribution Margin Data Schedule |
||
|
Actual |
Planned |
|
|
Sales |
$1,200,000 |
$1,190,000 |
|
Variable cost of goods sold |
$448,000 |
$462,000 |
|
Variable selling and administrative expenses |
240,000 |
154,000 |
|
Total |
$688,000 |
$616,000 |
|
Contribution margin |
$512,000 |
$574,000 |
|
Number of units sold |
16,000 |
14,000 |
|
Per unit: |
||
|
Sales price |
$75.00 |
$85.00 |
|
Variable cost of goods sold |
28.00 |
33.00 |
|
Variable selling and administrative expenses |
15.00 |
11.00 |
Contribution margin analysis focuses on explaining the differences between planned and actual contribution margins, considering the quantity factor and the unit price factor.
After reviewing the data on the Contribution Margin Data panel, complete the following contribution margin analysis. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
|
Saxon, Inc. |
|
Contribution Margin Analysis |
|
For the Year Ended December 31 |
|
1 |
Planned contribution margin |
||
|
2 |
Effect of changes in sales: |
||
|
3 |
Sales quantity factor |
||
|
4 |
Unit price factor |
||
|
5 |
Total effect of changes in sales |
||
|
6 |
Effect of changes in variable cost of goods sold: |
||
|
7 |
Variable cost quantity factor |
||
|
8 |
Unit cost factor |
||
|
9 |
Total effect of changes in variable cost of goods sold |
||
|
10 |
Effect of changes in selling and administrative expenses: |
||
|
11 |
Variable cost quantity factor |
||
|
12 |
Unit cost factor |
||
|
13 |
Total effect of changes in selling and administrative expenses |
||
|
14 |
Actual contribution margin |
I got some of the work done just struggling with the rest
In: Accounting
NEW BUSINESS VENTURE ASSIGNMENT #5
Business Model Canvas elements: Revenue Streams, Cost Structure
Answer the following questions and upload the completed form to Canvas.
Your business idea : can choose any business to fill the question or blanks below as being asked.
Example (edit and change for your business)
|
Item |
Price |
Quantity sold per month |
Quantity sold per year |
3A. Variable costs: What do you believe your costs will be (materials + labor + distribution) per unit sold? Fill in this sheet with your own info and calculate total.
Example (edit and change for your business)
|
Item |
Amount per unit |
|
|
Total variable costs spent per month |
$ |
= cost per unit x quantity sold per month |
|
Total variable costs spent per year |
= cost per unit cost x quantity sold per year |
3B. Fixed costs: What do you think your fixed monthly costs are going to be? Fixed costs must be paid regardless of number of units sold. (e.g. utilities, rent, employee salaries etc.) Fill in this sheet with your own info and calculate total.
Example (edit and change for your business)
|
Item |
Amount per month |
Amount per year |
|
Total fixed costs |
3C. One-time costs: What are the one-time costs you need to spend to get this business up and running (equipment, down payment, business cards, website creation, equipment purchase etc.)? These costs only occur once and are not part of the ongoing business costs. Edit and complete this table with your own info.
Example
|
Item |
Amount |
|
|
Total one-time costs |
Fill in this chart with the correct calculated numbers using the information you entered in the charts above.
|
Monthly |
Yearly |
||
|
Quantity of units sold |
Use your answer from question #2 |
||
|
Price per unit |
Use your answer from question #2 |
||
|
Cost per unit |
Use your answer from question #3A |
||
|
Revenue |
Revenue = price x quantity of units sold |
||
|
Variable Costs |
Use your answer from question #3A |
||
|
+ Fixed costs |
Use your answer from question #3B |
||
|
= Total Costs |
Variable costs + fixed costs = total costs |
||
|
= Profit |
Profit = Revenue – Total Costs |
In: Accounting
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):
| Molding | Fabrication | Total | |||||||
| Estimated total machine-hours used | 2,500 | 1,500 | 4,000 | ||||||
| Estimated total fixed manufacturing overhead | $ | 11,250 | $ | 15,750 | $ | 27,000 | |||
| Estimated variable manufacturing overhead per machine-hour | $ | 1.90 | $ | 2.70 | |||||
| Job P | Job Q | |||||
| Direct materials | $ | 18,000 | $ | 10,500 | ||
| Direct labor cost | $ | 25,000 | $ | 9,500 | ||
| Actual machine-hours used: | ||||||
| Molding | 2,200 | 1,300 | ||||
| Fabrication | 1,100 | 1,400 | ||||
| Total | 3,300 | 2,700 | ||||
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.
5. If Job P included 20 units, what was its unit product cost?(Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
6. What was the total manufacturing cost assigned to Job Q?(Do not round intermediate calculations.)
7. If Job Q included 30 units, what was its unit product cost?(Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
8. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
In: Accounting
You are buying a condo on the beach in Galveston, TX. Here are the details.
Overview:
condo 893 sqft
2 beds $286/sqft
2 baths 673
Built in 2006
131 days on Trulia
Description:
New washer/dryer, fresh paint in living and kitchen in October. This condo is one of the best on Seawall. enjoy the beautiful interior with its relaxed atmosphere. You'll be drawn to the balcony where you will enjoy the amazing biew of the ocean and enjoy the sounds of seagulls. This condo has a modern and full equipped kitchen, stainless steel appliances, granite counter tops, travertine floors throughout. The elegant master bedroom with an amazing view of the ocean. Full furniture conveys with the sale. Ready for you to move in or rent out.
SELLING PRICE: $224,000
Welcome to your virtual bank. For this assessment, assume the mortgage amount is the sale price of the house you chose. Based on your credit score, you are offered a fixed rate, an adjustable rate, and a balloon mortgage. Each is described below. For each mortgage option, submit the following to your instructor:
Fill in each table. (2 pts for each answer in table)
Calculate the total cost of principal and interest for each option. (2 pts each)
Conclude with the option you would choose and why. (4 pts)
OPTION 1:
Fixed Rate Mortgage: 5% for 30 years
|
Year |
Monthly Payment |
# of Payments |
|
1-30 |
360 |
TOTAL COST (PRINCIPAL + INTEREST): _______________________
OPTION 2:
|
Adjustable Rate Mortgage: 4% with terms 5/1 with a 2/6
cap for 30 years |
|||
|
Year |
Monthly Payment |
# of Payments |
Total Cost for Each Period |
|
1-5 |
60 |
||
|
6-15 |
120 |
||
|
16-25 |
120 |
||
|
26-30 |
60 |
||
TOTAL COST (PRINCIPAL + INTEREST):___________________________
OPTION 3:
|
Balloon Mortgage: 4% fixed interest rate with terms 30/7 |
|||
|
Year |
Monthly Payment |
# of Payments |
Total Cost for Each Period |
|
1-7 |
84 |
||
|
Balloon Payment |
1 |
||
TOTAL COST (PRINCIPAL + INTEREST):__________________________
Which option would you choose and why?
In: Finance