Consider a Pokemon card production facility with the following cost structure:
t=0: $70,000, t=1: $10000, t=2: $40,000, t=3: $–10,000 (a negative cost constitutes a revenue)
Suppose the facility can produce 10,000 packages in year 1, 15,000 packages in year 2 and 30,000 packages in year 3, but must charge the same price for the packages in each year of operation. What is the break-even selling price in this case?
MARR= 8%.
Question 2 options:
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a) 2-2.20 |
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b) 2.20-2.40 |
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c) 2.40-2.60 |
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d) 2.60-2.80 |
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e) None of the above |
In: Finance
Justin Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 percent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Button pays 60 percent in the month of purchase and 40 percent in the month following. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the sale.
Month Sales Revenue
December $170,000
January 250,000
February 120,000
March 200,000
April 160,000
Prepare a schedule of cash disbursements for January, February, and March
In: Accounting
Based on the following financial information, construct the balance sheet and income statement below for Tonka Trucking LLC for the year ending December 31, 2019. Be sure to format them as accurately as possible. Accounts Receivable $40,000 Depreciation Expense $50,000 Accumulated Depreciation $200,000 Cost of Goods Sold $50,000 Income Tax Expense $50,000 Cash $50,000 Sales Revenue $400,000 Equipment (Net of Accumulation) $200,000 Selling, General, and Administrative Expenses $100,000 Common Stock (1,000 shares) $100,000 Accounts Payable $50,000 Retained Earnings $200,000 Interest Expense $50,000 Inventory $10,000 Long-term Debt $50,000
In: Finance
) Explain why environmental services, because they are public goods, are undervalued or priced too low. (B) Explain briefly, but by using as many examples from the three books of readings as possible, how groups of people (government) or private individuals were able to increase the amount of environmental quality, by connecting or attaching an environmental service to a private good, showing how revenue from the private good increased the production of the public good. In the various examples, explain who are the buyers of the private good (permits, credits, certification, license, development right) and who are the sellers or producers of the environmental service, and how these providers are compensated for supplying the environmental service (or maintenance).
In: Economics
The following selected information is for Oriole Company for the
year ended January 31, 2021: prepare closing entries
| Freight in | $6,500 | Purchase discounts | $12,000 | |||
| Freight out | 7,100 | Purchase returns and allowances | 16,300 | |||
| Insurance expense | 12,000 | Rent expense | 20,500 | |||
| Interest expense | 6,000 | Salaries expense | 60,800 | |||
| Merchandise inventory, beginning | 61,300 | Salaries payable | 2,500 | |||
| Merchandise inventory, ending | 42,000 | Sales | 322,000 | |||
| O. G. Pogo, capital | 105,000 | Sales discounts | 14,000 | |||
| O. G. Pogo, drawings | 42,400 | Sales returns and allowances | 20,400 | |||
| Purchases | 213,000 | Unearned sales revenue |
4,500 |
In: Accounting
Assume that the government decides to impose a tax on sellers of foods that are high in sugar content. a) Using a demand and supply diagram (half an A4 page), demonstrate and explain how such a tax that is imposed on sellers in fact creates a burden on consumers as well. Indicate the government revenue on your diagram. b) What is price elasticity of demand and how is it calculated? Briefly explain using diagrams, how price elasticity of demand will play a role in determining the size of the burden on consumers. c) Define allocative efficiency. What are all the possible economic scenarios when such a tax could be allocatively efficient, and thus create no deadweight loss?
In: Economics
Presented below is information related to Marin, Inc.
|
Cost |
Retail |
|||
|---|---|---|---|---|
| Beginning inventory | $331,500 | $585,000 | ||
| Purchases | 1,482,000 | 2,613,000 | ||
| Freight on purchases | 63,180 | |||
| Markups | 136,500 | |||
| Markup cancellations | 109,200 | |||
| Abnormal shortage | 11,700 | 20,280 | ||
| Markdowns | 68,640 | |||
| Markdown cancellations | 9,360 | |||
| Employee discounts | 4,056 | |||
| Sales revenue | 2,788,500 | |||
| Sales returns | 78,000 | |||
| Normal shortage | 13,650 | |||
| Purchase returns | 17,160 | 31,980 |
Compute ending inventory by the conventional retail inventory
method. (Round percentages for computational purposes
to 1 decimal place, e.g. 0.4158 to 41.6% and final answer to 0
decimal places, e.g. 5,275.)
| Ending inventory |
In: Accounting
Red Royal Recycling is considering a project that would last for 2 years. The project would involve an initial investment of 104,000 dollars for new equipment that would be sold for an expected price of 104,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 27,000 dollars over 7 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 91,000 dollars per year and relevant annual costs for the project are expected to be 40,000 dollars per year. The tax rate is 50 percent and the cost of capital for the project is 9.96 percent. What is the net present value of the project?
In: Finance
Red Royal Recycling is considering a project that would last for 2 years. The project would involve an initial investment of 104,000 dollars for new equipment that would be sold for an expected price of 104,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 27,000 dollars over 7 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 91,000 dollars per year and relevant annual costs for the project are expected to be 40,000 dollars per year. The tax rate is 50 percent and the cost of capital for the project is 9.96 percent. What is the net present value of the project?
In: Finance
Selected data for October for Rio Vista Company is shown below. The variable overhead sales activity variance is $3,000 F.
Flexible budget based on actual sales of 11,900 units:
Revenue $ 117,300
Materials 49,300
Labor 27,200
Variable overhead 17,000
Fixed costs (manufacturing and administrative) 17,900
Required:
a. How many units were budgeted for October in the master budget? (Do not round intermediate calculations.)
b. Recreate the master budget for October. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
In: Accounting