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Production Function and Price of Labor

Suppose that the Johnson Company has the following production function: Q = L × C The price of labor (L) is $20 per unit and the price of capital (C) is $50/unit. How much labor and capital should Johnson employ to produce 200,000 units? What is the total cost of production?

How do variable costs and fixed costs differ? Give an example of each.

Please see attached file. a. Chapter 15: Discussion Questions 9-11, 17, and 19. b. Chapter 15: Practice Exercise 15-8 Fixed Costs and Variable Costs c. Chapter 15: Practice Exercise 15-13 Direct and Indirect Costs d. Chapter 15: Practice Exercise 15-15 Out-of-Pocket Costs and Opportunity Costs e.


Good Day, Could you please assist with the attached question. Regards Paradise Limited wishes to raise R10 million in external finances by issuing either ordinary shares or 14 % preference shares or a 12 % unsecured loan. These funds are expected to generate additional operating profits of R3.28 million. The ordinar

Questions about Breakeven Calculations

Executives of Studio Recordings, Inc, produced the latest compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the new CD: CD package and disc (direct material and labor) $1.25/CD Songwriters' royalties $0.35/CD Recording artists' roya

Selling Price - Gargantuan Industries

Gargantuan Industries is a multiproduct company with several manufacturing plants. The Boise Plant manufactures and distributes two household cleaning and polishing compounds, standard and commercial, under the Super Clean label. The forecasted operating results for the first six months of the current year, when 100,000 cases

The Dean Company

(Note) Posting must be answered within 3 hours, if partially answered then that is also acceptable. Thank you 1. The Dean Company produces and sells a single product. The following data refer to the year just completed: Selling Price $ 350 Units in beginning Inventory 0 Units Produced 20000 Units sold

Tax advantages and disadvantages of business types

We have elected the S corporation form of business. Now we are not sure this was the best business structure for us from a taxing perspective, and we would like a written comparison discussing the tax advantages and disadvantages of the C corporation, S corporation, and partnership forms of business. Also we would like a recomm

Predetermined Overhead Rates - Full Cost and Selling Price

Compute a departments predetermined over head rate using traditional costing and use it to determine the full cost and selling price for a regular meal and a special meal Raw materials $875,000 Direct Labor $1,145,000 Overhead $1,533,000 Dept expected to make 300,000 regular meals and 50,000 special meals

Depreciation change in accounting method

On January 1, 2005, Baden Co., purchased a machine (its only depreciable asset) for $300,000. The machine has a five-year life, and no salvage value. Sum-of-the-years'-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for

Deferred Tax liability - Reaker Company

A reconciliation of Reaker Company's pretax accounting income with its taxable income for 2008, its first year of operations, is as follows: Pretax accounting income $3,000,000 Excess tax depreciation (90,000) Taxable income $2,910,000 The excess tax depreciation will result in equal net taxable amounts in each of t

Expected Change In Net Income - Quickbow Company

Quick bow Company currently uses maximum trade credit by not taking discounts on purchases. Quickbow is considering borrowing from its bank, using notes payable, in order to take trade discounts. The firm wants to determine the effect of the policy change on its net income. The standard industry credit terms offered by all

Your 401 (k) Account At East Coast Yachts

I need assistance with three questions on the attached document. Please see attached file for full problem description. Your 401 (k) Account At East Coast Yachts You have been at your job for East Coat Yachts for a week now and have decided you need to sign up for the company's 401(k) plan. Even after your decision with

EC Industrials manufactures widgets that sell for R126 each

Good Day, Please assist with the attached question. Regards Q2: 2. EC Industrials manufactures widgets that sell for R126 each. The cost of producing and selling 240 000 units are estimated as follows; Variable Costs per unit: Direct Materials R 30 Direct Labour R 18 Factory Overhead R 12 Sel

Important information about Cost allocation

See attached document for explanation of problem. Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X5, the joint costs of processing the tomatoes were $420,000. There was no beginning or ending inventories for the summer. Production and sales value information

Various Accounting Questions

I am having problems with a couple of various questions that I'm expecting similar questions on an upcoming test. I would appreciate any help on these practice questions: 1.) Dividends paid a. increase assets. b. increase expenses. c. decrease revenues. d. decrease retained earnings 2.) Long-term creditors are usually

Earnings per Share

C10-3 Earnings per Share Major Corporation has 100,000 shares of $10 par value common stock outstanding and no preferred stock outstanding. Minor Corporation has 50,000 shares of $5 par value common stock and 20,000 shares of $20 par value preferred stock. The preferred shares pay an annual dividend of $2 each and are cumulat

Portables Inc Questionablle Accounting Transactions

You have been working as a professional accounting trainee for about three months when the accountant for your client, Portables Inc., asks for your input about two transactions that took place in the current year. Portables, Inc., which used to be wholly owned and managed by Angus Dickson, now has 12 shareholders and a sizeabl

Optimal decision and expected value of perfect information

Problem 4 In the following profit payoff table for a decision problem with two states of nature and three decision alternatives, the probabilities for s1 and s2 are: p(s1)=0.8 and p (s2)= 0.2 S=State of Nature D=Decision alternatives S1 S2 d1 15 10 d2 10 12 d3 8 20 a. What is the opt

International Accounting Standards Research

A manager you work for is making a business trip to London. The manager has several meetings at the company's operating units in London. In addition, the manager is considering a visit to the International Accounting Standards Board (IASB) office in London. The manager has asked you to perform some research on the IASB so that h

Optimal Dividend Payout Ratios/Optimal Debt-to-Equity Ratios

1- U.S. public companies with "low" dividend payouts have payout ratios of less than 1 percent, firms with "medium" payouts have ratios between 1 and 48 percent, and "high" payout firms have a ratio of 49 percent or more. Given these data, how would you classify the following firms in terms of their optimal payout policy (high,

Varying Predetermined Overhead Rates

Varying Predetermined Overhead Rates Quarter First Second Third Fourth Direct materials $240,000 $120,000 $60,000 $180,000 Direct labor 128,000 64,000 32,000 96,000 Manufacturing overhead 300,000 220,000 180,000 260,000 Total Manufacturing costs 668,000 404,000 272,000 5

Accouting Cost-to-Cost Completion

Problem 1 Kingston company reported the following net income amounts: 2002 $52,000 2003 $38,000 2004 $66,000 In 2005, the company discovered errors that been made in computing the ending inventories for 2002 and 2003, as follows: 2002 ending inventory understated by $4,000