The Company X has a monopoly on the beer market. Market demand is given by ?? = 200 - 4? and the company's short-term cost as a function of ? is given by ? (?) = ?2 + 40
What is the marginal revenue (MR) and marginal cost (MC) as a function of Q? At what quantity is ?? = ???
In: Economics
Write a script pitch of a new product or service to an existing company of your choosing. Demonstrate your target customer, the problem you are solving, the value of your idea, and the revenue potential of the target you selected. Be sure to discuss differentiation and the existence of competition.
In: Economics
Your company is a fitness center. On December 1, 2015, a customer pays $600 for 1-year membership to the center. When you collected the cash, you credited Unearned Revenue, a liability account.
The adjusting journal entry on December 31, 2015 is:
In: Accounting
Please answer the question which number 5 to 8
| [The following information applies to the questions displayed below.] |
|
Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below: |
| Alpha | Beta | |||||||
| Direct materials | $ | 40 | $ | 15 | ||||
| Direct labor | 34 | 28 | ||||||
| Variable manufacturing overhead | 22 | 20 | ||||||
| Traceable fixed manufacturing overhead | 30 | 33 | ||||||
| Variable selling expenses | 27 | 23 | ||||||
| Common fixed expenses | 30 | 25 | ||||||
| Total cost per unit | $ | 183 | $ | 144 | ||||
|
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. |
| 5. |
Assume that Cane expects to produce and sell 110,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 25,000 additional Alphas for a price of $140 per unit. If Cane accepts the customer’s offer, it will decrease Alpha sales to regular customers by 12,000 units. |
| a. |
Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.) |
| b. | Based on your calculations above should the special order be accepted? | ||||
|
Required information
| 6. |
Assume that Cane normally produces and sells 105,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease? |
Required information
| 8. |
Assume that Cane normally produces and sells 75,000 Betas and 95,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease? |
In: Accounting
In 2018, X Company's revenue-based profit function was 0.35R - $76,800. Only one change is expected in 2019, a 10% decrease in total fixed costs. What must revenue be in 2019 for X Company to earn $38,000?
In 2018, X Company sold 5,000 units of its only product for
$35.70 each. Unit costs were as follows:
| Variable manufacturing | $15.30 | ||
| Fixed manufacturing | 3.21 | ||
| Variable selling | 5.13 | ||
| Fixed selling | 3.43 | ||
| Total | 27.07 | ||
In 2019, the selling price, variable costs per unit, and total
fixed costs are not expected to change. Assuming a tax rate of 31%,
how many units must X Company sell in 2019 in order to earn $64,000
after taxes?
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
X Company, a merchandiser, had the following income statement
for 2018:
| Sales | $210,418 |
| Cost of goods sold | 116,728 |
| Gross margin | $93,690 |
| Other operating expenses | 45,123 |
| Profit | $48,567 |
$97,828 of the cost of goods sold were variable, and $28,423 of the
other operating expenses were variable. If cost behavior in 2019 is
expected to continue as it did in 2018, what must total sales be in
2019 in order for X Company to break even?
In: Accounting
2. TurboCard credit card company offers a loyalty program to its credit card users whereby the credit card company gives the credit card user points for amounts purchased from merchants when using the credit card. These points may be accumulated and redeemed for a number of different goods or services, including cash-back. TurboCard separately enters into arrangements with merchants under which the credit card company provides the financing for the transaction between the merchant and the credit card user, in return for which the credit card company receives a stated fee from the merchant. When the credit card user uses the credit card to make a purchase from a merchant, TurboCard honors its agreement with the merchant and advances the merchant the funding for the amount of the transaction after deducting the fee to which the credit card company is entitled. However, as a result of that transaction, TurboCard now also has an obligation to the credit card user to provide the specified number of points in the loyalty program.
Required:
a. How many performance obligations are involved in these activities?
b. Assuming there are two performance obligations, how would revenue be recognized?
c. Assuming there is only one performance obligation, how would revenue be recognized?
In: Accounting
Nutt’s Nut Company has 500 pounds of peanuts, 100 pounds of pecans, and 50 pounds of cashews on hand. they package three types of 5-pound cans of nuts: Can I contains 3 pounds of peanuts, 1 pound of pecans, and 1 pound of cashews; Can II contains 4 pounds of peanuts, 1/2 pound of pecans, and 1/2 pound of cashews; and Can III contains 5 pounds of peanuts. The selling price is $28 for Can I, $24 for Can II, and $21 for can III. How many cans of each kind should be made to maximize revenue? Set up an LP problem. Do not solve.
In: Math
Rubbermaid produces and sells plastic storage sheds. Its current sales are $500,000. The company's accountant provided the following cost information:
|
Manufacturing costs |
$ |
100,000 |
+ |
40 |
% |
of sales |
|
Selling costs |
$ |
30,000 |
+ |
10 |
% |
of sales |
|
Administrative costs |
$ |
45,000 |
+ |
10 |
% |
of sales |
Required:
1) Compute the product's contribution margin ratio.
2) Compute the company's current net income.
3) Compute the product's break-even point in dollars.
4) Compute the amount of revenue necessary to earn $60,000 in profit.
5) Compute the company's current margin of safety ratio.
6) Should the company accept a proposal that increases sales by 20% and total fixed costs by 25%?
In: Accounting
| PROBLEM 1: | |||||||
| Felix Company wants to forecast its cash budget for the next 3 months. | |||||||
| * Estimated sales revenues are: | |||||||
| Month | Revenue | ||||||
| January | $ 200,000 | ||||||
| February | $ 150,000 | ||||||
| March | $ 300,000 | ||||||
| April | $ 400,000 | ||||||
| All sales are on credit and are estimated to be paid as follows: | |||||||
| Month of Sale | 60% | ||||||
| Month after sale | 40% | ||||||
| 100% | |||||||
| * Cost of goods sold as a percentage of sales is | 75% | ||||||
| * Payments for merchandise sold are made in the month following the month sale. | |||||||
| * Operating expenses total $50,000 per month and are to be paid in the month they are incurred. | |||||||
| * The cash balance estimated on February 1 is $100,000. | |||||||
| QUESTION: Prepare monthly cash budgets for February, March and April in Excel. | |||||||
In: Accounting