Refineries Incorporated uses chemical X to manufacture oil products. Variance data for the month follows (F indicates a favorable variance, U indicates unfavorable variance): Chemical X Materials Price Variance $84,000 F Materials Efficiency Variance 80,000 U Net Materials Variance 4,000 F Oil prod
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Below is my company's income statement. Sales $1,000 Costs 700 Depreciation 100 EBIT $ 200 Interest expense 50 EBT $ 150 Taxes (40%) 60 Net income $ 90 Showing the computations what is my company's net operating profit after taxes (NOPAT)?
Discussion Questions: 1, 2, 3, 5 and 7 1. Discuss the various uses for break-even analysis. 2. What factors would cause a difference in the use of financial leverage for a utility company and an automobile company? 3. Explain how the break-even point and operating leverage are affected by the choice of manufacturing f
Automobile companies give rebates, etc to get people to buy now and pay later. They are trying to increase sales in the current period. At what point would this become unethical?
Hi there, Can you please help me with the following question. I don't understand capitalizing costs. I don't know which costs can be capitalized and which have to be expensed. Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $18,000 with terms 5/15 n/45. Paymnt was made within the discount period. Shippi
Please see the attached file. --- Perdon Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
(See attached file for full problem description) --- P4-4A Mendocino Corporation produces two grades of wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,00 5-liter jugs. Mendocino also produ
#1. Widgets Incorporated produces 2 types of widgets: the Basic Widget and the Delux Widget. The company has recently adopted an activity based costing (ABC) system with the following activities and cost drivers related to overhead costs. Activity Total Costs Cost Driver Units of Cost Driver Material ordering $400,000
Case Study #2 Listed below are the annual rates of return on the stocks for companies A, B, C, ..., G for each year 1975-2004. (1) Determine the efficient frontier using portfolios generated from combining just these seven risky assets. Graph the results. In listing the results in tabular form, show the weights for each le
(See attached file for full problem description) --- Week 4 - Problem 5 O,Meara, Inc., plans to issue $6 million of perpetual bonds.The face value of each bond is $1,000 The semi-annual coupon on the bonds is 4.5% Market interest rates on one-year bonds are 8%
Lorax Enterprises saw its cash balance increase from $ 800 million at the end of last year to $ 1 billion at the end of this year. During the year, the firm reported net income of $ 300 million, after depreciation of $ 100 million. In addition, the firm had capital expenditures of $ 250 million and paid out a dividend of $ 100 m
Consider a bank with the following balance sheet: (See attached Excel) The bank commits to a loan agreement for $10 million to a commercial customer. Calculate the bank's Capitol Ratio before and after the agreement. Calculate the banks Risk-Weighted assets before and after the agreement.
1. Sunk Cost A cost that has already occurred and is not affected by the capital project decision. Sunk costs are not relevant to capital budgeting decisions. Example: I own Jai's Ice Cream Shop and noticed that it is not worth it to continue the business in the winter because people do not want to buy ice cream in c
"The PurWater System Company manufacutures two models of a particular water purification system. For 2005, the company wants to allocate manufacturing overhead using activity-based-cost (ABC) allocation methods. Based on a thourough study of their manu" 2005 Cost Driver Fixed Overhead Used As Activi
Determine the amount of money in a savings account at the end of five years, given an initial deposit of $5,000 and a 12 percent annual interest rate when interest is compounded (a) annually (b) semiannually, and (c) quarterly.
See attached file. Bay Industries case study. Evaluate each of the three divisions within the case and rate the performance of each manager with detailed calculations. Also need to justify the distribution of the $25,000 bonus.
McDowell industries sells on terms of 3/10, net 30. Total sales for the year are $912,500. Forty percent of the customers pay on the 10th day and take discounts; the other 60 percent pay, on average, 40 day days after their purchases. a. What is the days sales outstanding? B. What is the average amount of receivabls?
1. The cost of a single unit of production in excess of the breakeven point in units is: A) its fixed cost and variable cost. B) its fixed cost only. C) its variable cost only. D) none of the above. 2. What percentage of the contribution margin is profit on units sold in excess of the breakeven point? A) It's
See attached file for full problem description I want to have a short case study analyzed.
Given the following errors: 1. The bank recorded a deposit of $200 as $2,000. 2. The company's bookkeeper mistakenly recorded a deposit of $530 as $350. 3. The company's bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the dep
You have been given the following projections for Cali Corporation for the coming year. Sales = 10,000 units Sales price per unit = $10 Variable cost per unit = $5 Fixed costs = $10,000 Bonds outstanding = $15,000 rd on outstanding bonds = 8% Tax rate = 40% Shares of common stock outstanding = 10,000 shares B
Motor Homes Inc. (MHI) is presently in a stage of abnormally high growth because of a surge in the demand for motor homes. The company expects earnings and dividends to grow at a rate of 20 percent for the next 4 years, after which time there will be no growth (g = 0) in earnings and dividends. The company's last dividend wa
I need assistance in pointing out the two most important differences between not-for-profit and for-profit firms. Use the attached PPT presentation to prepare at least one paragraph on these differences.
An asset was purchased three years ago for $140,000. It falls into the five-year category for MACRS depreciation. The firm is in a 35 percent tax bracket. Compute the: a. Tax loss on the sale and the related tax benefit if the asset is sold now for $15,320. b. Gain and related tax on the sale if the asset is sold now for $
What cost accounting methodologies are used in healthcare?
How can an MBA change your professional career?
The Polishing Department of Dimetry Manufacturing Company has the following production and manufacturing cost data for October. Materials are entered at the beginning of the process. Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during
Rodriquez Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $300,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $322,000 of overhead costs are incurred and 130,000 hours are used. Instructions: (a) Compute the manufactu
Suppose that a firm is considering moving from a batch process to a line process to better meet evolving market needs. What concerns might the following functions have about this proposed change?
Money, Inc., has no debt outstanding and a total market value of $148,000. Earnings before interest and taxes, EBIT, are projected to be $13,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 30 percent higher. If there is a recession, then EBIT will be 59 percent lower. Money i