Malachite Company produces a single product. The selling price is $30 per unit, and variable costs amount to $21 per unit. Malachite's fixed costs per month total $45,000. 1. Refer to the above information. What is the contribution margin ratio of Malachite's product? a. 70%. b. 42.9%. c. 30%. d. 18%. 2. Refer to the ab
The following information is available regarding the total manufacturing overhead of Peterson Company for a recent four month period. Direct Labor Manufacturing Hours Overhead May 90,000 $213,000 June 100,000 227,000 July 70,000 185,000 August 80,000 199,000 1. Refer to the above information. Using the high-low method,
Whelan Pharmaceuticals, a U.S. company with $3 billion in sales, must decide where to manufacture its newest product. In considering possible sites, both foreign and U.S., the firm must identify and make trade-offs between tax, marketing, and manufacturing factors. what tax issues are relevant in to this company which site
Use the following to answer questions 1-3. Kresswall Construction applies overhead to its projects at a rate of $250 per direct labor hour. Laborers are paid an average rate of $20 per hour. The Hillside Apartments project was charged a total of $500,000 in direct materials and $80,000 in direct labor costs. 1. Refer to th
The following appeared in Centel Corporation's annual report: "In December, an investor in the Argo group Inc (TAGI) filed suit against a subsidiary of the company for damages from alleged breach of fiduciary duty and negligence related to the bankruptcy of a subsidiary of TAGI. The company cannot predict the ultimate outco
Accounting for market values. Mrs. Rosewood recently approached her bank manager and requested a loan for her business, Flowers Ltd. After viewing Flowers' financial information, the bank manager made the following estimates concerning Flowers, Ltd: Unrecorded Goodwill $300,000 The market value of inventories, capital asset
A company produces two types of leather purses: standard and handcrafted Both purses use equipment for cutting and stitching. The equipment also has the capability of creating standard designs. The standard purses use only these standard designs. They are all of the same size to accommodate the design features of the equipme
In the Miller-Orr Model, which is NOT true ______ When the cash balance falls to zero, the amount coverted from maretable securities to cash is the amount represented by the upper limit or When the cash balance reaches the upper limit, an amount equal to the return point minus the upper limit is converted to marketabl
After satisfying oblications to creditors, the government, and preferred stockholders, any remaining earnings will most likely be allocated to any of the following "EXCEPT" _________ common shareholders as cash dividends, common shareholders as stock dividends, retained by the firm for future investment, or a combination
In adjusting for risk, which of the following is - "TRUE" - about the risk adjusted discount rate and/or the certainly equivalent methods _____________ (a) The risk-adjusted discount rate allows for the use of varied costs of capital, enabling the large multi-divisional firm to incorporate differing levels of divisional ri
The amount by which the required discount rate exceeds the risk-free rate is called ______ the opportunity cost, the risk premium, the risk equivalent, or the excess risk
The market price of outstanding issues often varies from par (face value) because ______ the maturity data has changed, the coupon rate has changed, the market rate of interest has changed, or old bonds sell for less than new bonds I believe - the market rate of interest has changed is the answer - please advise answer
Preferred Stock is valued as if it were _____ a fixed income obligation, a bond, a perpetuity, or a common stock I believe the answer is - a fixed income obligation - please advise answer & why - thanks!
A person plans to make a one-time endowment that would provide the ballet with $150,000 per year into perpetuity. The rate of interest is expected to be 5 percent for all future time periods. How large must the endowment be ____ $300,000, $3,000,000, $750,000, or $1,428,571 Please answer & show work - thanks!
The first year someone owned stock they received $1.71 per share and in the fifth year they received $2.89 per share. What was the growth rate of the dividends over the five year period _____ 7 %, 14%, 12%, or 5%
Which of the following is NOT a disadvantage of preferred stock ______ it is often considered quasi-debt due to fixed payment obligation, it has less restrictive covenants than debt, it gives the holder voting rights that permit selection of the firm's directors, or its holders have priority over common stockholders in
The following applies to all 4 parts: After conducting a market research study, Morla Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $60. The estimated annual target sales volume is $20,000 interior door
Introduction: Kirsten Malon has found a way to profitably exploit her computer know-how. She has started a firm that offers consulting services for computer and software repair and analysis. Most of her customers have purchased computers or software systems with little vendor support and need help in installing and using th
When the greatest portion of a firms' assets are fixed rather than variable______. the firm enjoys lower financial risk, offering discounts during non-peak times will generally increase profits, incremental costs will also be proportionately higher, or the firm should use full-cost pricing Please answer answer and why
The following applies to both parts: Jerry's 5-year Chevy Geo Prism requires $3,000 in estimated repairs. His friend suggested that he buy a 5-year Honda Civic for the $3,000 cash. The following is the estimated costs for the two cars: Chevy Geo Prism
Different products consume different porportions of manufacturing support costs because of diffences in all of the followinh except - sales prices, customers' customization specifications, setup times, or product design I believe - sales prices - is the answer. Please advise of answer and why. Thanks!
Activity costs are described as ________ over the long run because management adjusts the amount of resources employed to correspond to the demand for those resources. fixed, varible, committed, or non-discretionary
A key reason for assigning selling and distribution costs to products for analytical purposes is that -- all direct costs must be assigned, different processes, products and/or customers require different qualtities of selling and distribution activtities, customers demanded it, or controllers demanded it I believe - a
Company X is a small firm innovative in the production and sale of electrical business products. The company is well known for its attention to quality and innovations. During the past 15 months, a new product has been under development that allows users handheld access to email and video images. Company X code named the
The following applies to the following two parts: A company manufactures pipes and applies manufacturing support costs tp production at a predetermined rate of $15 per direct labor hour. The following data are obtained from the accounting records for June 20x2: Direct materials
Valley Meat Company produces one of the best sausage products in Pennsylvania. The company's controller compiled the following information by analyzing the accounting records: 1. Meat costs the company $2.80 per pound of sausage produced. 2. Compensation of production employees is $2.00 per pound of sausage produced. 3. Sup
Instructions: For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $150,000 and (2) net income of $90,000. Present the data in tabular form, using the following columnar headings: PLEASE SHOW THE BASIC CONCEPT ON HOW TO ANSWER A-F. WHAT IS THE BEST WAY TO SET UP
1. After the physical inventory is completed, A) quantities are listed on inventory summary sheets. B) quantities are entered into various general ledger inventory accounts. C) the accuracy of the inventory summary sheets is checked by the person listing the quantities on the sheets. D) unit costs are determined by dividing
Scenario: Lava Rock Bicycles, headquartered in San Miguel, California builds bikes for novice to mid-level cyclists, triathletes, and world-class athletes interested in cross-training. Lava Rock is beginning its 6th year of business. It continues to grow its product line and target customer market and it recently became a publ
Case: Lake Champlain Sporting Goods Company- Break even analysis. Compute Lake Champlain Sporting Goods' estimated break-even point in sales dollars for the year ending December 31, 20x4, based on the budgeted income statement prepared by the controller.
Subject: Sales Commissions in a Wholesale Firm; Income Taxes CASE - Lake Champlain Sporting Goods Company, a wholesale supply company, engages independent sales agents to market the company's products throughout New York and Ontario. These agents currently receive a commission of 20% of sales, but they are demanding an incre