Problem 1 Muscle Beach Current Operating Data MegeMuscle PowerGym ProForce Selling price per unit $140 $200 $290 Contribution margin per unit 42 77 58 Monthly sales volume-units 3,000 2,000 1,000 Fixed expenses per month Total of $320,000 a. Calculate the contribution margin ratio of each product b. Calculate t
Monumental Products Corp. had recently purchased a new machinery at a cost of $450,000. Management estimates that the equipment will have a useful life of 15 years and no salvage value at the end of the period. If the straight-line depreciation method is used for financial reporting, calculate the following: A) Annual dep
1. Allan and Sarah are not married. Sarah has a low income but Allan has a high income. a. How might a loan from Sarah to Allan be advantageous to them? b. How might it be advantageous for Allan to rent something from Sarah? 2. Allan and Sarah are married. Allan passes away and Sarah is the sole beneficiary of Allan'
Describe the operating cycle and the cash cycle. What are the differences between them? When you analyze a company's financial health, what kind of ratios would you review? (please list top 3 financial ratios you would consider the most important and which would provide you with a clear idea on the financial status of the co
Suppose the expected returns and standard deviations of stocks A and B are E(Ra) =0.15, E(Rb) = 0.25, Stdev A = 0.1, and Stdev B = 0.2, respectively. Calculate the expected return and standard deviation of a portfolio that is composed of 40% A and 60% B when the correlation between the returns on A and B is 0.5.
What considerations go into deciding what is normal spoilage and abnormal spoilage?
How is the valuation of any financial asset related to future cash flows?
Cannon Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue for the number of autos sold in the year less related warranty expenses. Actual warranty expenses have varied over the prior 10 years from a low of 3% of an automobile's selling price to a high of 10%. In the past, Bly has ten
BE2-1 For each of the following accounts indicate (a) the effect of a debit or a credit on the account and (b) the normal balance. 1. Accounts Payable. 2. Advertising Expense. 3. Service Revenue. 4. Accounts Receivable. 5. Common Stock. 6. Dividends.
In terms of Google and Yahooo: Estimate the five operating expenses for each of the past three fiscal years, and evaluate what operating leverage, if any, was applied each year. Explain the functions of intermediaries and financial regulatory bodies with the company.
Compute the missing amounts for companies A, B, and C. A B C Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45,000 $ 4,500 $18,000 Accounts receivable . . . . . . . . . . . . . . . . . . . .10,000 10,000 14,000 Land and buildings . . . . . . . . . . . . . . . . . .
An ABC team at Drug's 'R' US, a pharmaceutical company, identified these data for a typical month (Please see attachment) Please disregard requirements in attachment instead please use the following requirements thank you: You will be calculating unit costs for products A and B using both traditional and activity-based cos
HOPE Scholarship Credit and Lifetime Learning Credit. John and Mary, a married couple who file a joint return, have two dependent children in college, Jeff and Brooke. Jeff attends Pepper College, a private, liberal arts college, and Brooke attends State U. During the calendar year 2006, Jeff was a sophomore during the Spring
A well-known insurance company offers a policy for children. Typically, a parent or grandparent buys a policy for a child at the child's birth. the details of the policy are as follows. The purchaser makes the following six payments to the insurance company: 1st birthday: $750 2nd birthday: $750 3rd birthday: $750 4th birt
A firm has an estimated pension liability of $1.5 million due 27 years from today. If the firm can invest in a risk-free security with an interest rate of 8%, how much must the firm invest today to be able to make the $1.5 million payment? (Must use Microsoft Excel)
Using Microsoft Excel, calculate the total amount you will receive in a year if you invest $1,000 now (assuming the interest rate is 8% per annum) at: a. yearly compounding b. semiannually compounding c. quarterly compounding d. daily compounding
A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. Factor Weight Gary Mall Belt Line Affluence of local population .20
A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 400 trucks were repaired. What is the utilization of
A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 400 trucks were repaired. What is the efficiency of
Consider the following information for a big-screen television distributor: Sales price per TV $1,500 Variable costs per TV $1,100 Fixed costs per year $120,000 Depreciation per year $20,000 Tax rate 35% How many units must the distributor sell in a given year to break-even (in terms of accounti
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands and the corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the
How would you calculate total sales to achieve a given net income using fixed cost and a variable cost which is expressed as a percentage of sales? i.e.: Fixed cost $35,000 Variable cost are 30% of sales (Are we to assume sale = 100%?) Net Income $50,000
What should a company expect their net income to be if their units sold increases by 10,000 units given the following information? What would their breakeven sales point be? Sold 60,000 units this year. Sales $120,000 Direct Labor 6,000 Indirect Labor
True/False 1. Accounts receivable are the result of cash and credit sales. 2. Under the direct write-off method, no attempt is made to match bad debts expense to sales revenues in the same accounting period. 3. Allowance for Doubtful Accounts is debited under the direct write-off meth
If given a total manufacturing cost of $130,000. Direct labor cost was $40,000, indirect labor cost was $20,000. Raw materials were purchased at $35,000, if the begining raw materials inventory was $0 and the ending raw materials inventory was $5,000, what is the overhead cost?
In early January 2005, Lerner Corporation applied for a patent, incurring legal costs of $50,000. In January 2006, Lerner incurred $9,000 of legal fees in a successful defense of its patent. Instructions (a) Compute 2005 amortization, 12/31/05 carrying value, 2006 amortization, and 12/31/06 carrying value if the company amor
23. Entries for bonds payable. (20 points) Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Titus Co.: March 1 Issued $800,000 face value Titus Co. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on
How can data modeling tools such as an E-R diagram help identify inconsistencies early on in the data modeling process? How can the data modeling process encourage accountants and other users to get more involved in database design? What techniques might an auditor employ to evaluate the reliability and integrity of an accoun
A reliable source has told you Johnson Company's stock price will increase from where it is now at $22.50 at an undetermined point over the coming 5 months. For $310.25 now you could buy a 5-month call option which lets you buy 100 shares at $25/share. Suppose you purchase that option for $310.25 and Johnson's stock price does i
I am thinking that risks would be the system itself failing and the process that goes into it. Can someone give me more suggestions or at least let me know that I am on the right page.