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Budgetary control

Danner Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2009. 1. Sales: Quarter 1, 28,000 bags; quarter 2, 42,000 bags. Selling price is $60 per bag. 2. Direct materials: Each bag of Snare requires 4 pound

Budgetary control and responsability accounting

Fultz Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2008. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor

Budgetary control and responsability accounting

Malone Company estimates that 360,000 direct labor hours will be worked during the coming year, 2008, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $ 90,000 Indirect labor $126,000

Managerial Economics

Please refer attached file for complete question. Graph is missing here. 1. In the following diagram, we show one of Jane's indifference curves and her budget line. a. If the price of good X is $100, what is her income? b. What is the equation for her budget line? c. What is the slope of the budget line? d. What is the

Capital Budgeting

Determining NPV and 8 year forward rate. Capital Budgeting and Financing. Cantoon Co. is considering the acquisition of a unit for the French government. Its intial outlay would be $4 million. It will reinvest all the earnings in the unit. It expects that at the end of 8 years, it will sell the unit for 12 million euros

Persuasive Memos

I need help with the following: Writing Memos Review the Purdue's OWL site on memos, make sure you review all four areas. Accessed August 12, 2009, at: http://owl.english.purdue.edu/owl/resource/590/01/ Bowman, J. P. Writing Persuasive Messages. Accessed August 12, 2009, at: http://homepages.wmich.edu/~bowman/c4e

Question on savings function

1. How would an increase in each of the following affect the consumption function? How would it affect the savings function? (a) net taxes (b) the interest rate (c)consumer optimism or confidence (d) the price level (e) consumers' net wealth (f) disposable income

Weighted Average cost of capital (WACC)

The financial manager of a firm determines the following schedules of cost of debt and cost of equity for various combinations of debt financing: Find the WACC. 1.Debt/Assets After-Tax Cost of Debt Cost of Equity WACC 0% 4% 8% 10%

Consumer behavior

Increasingly, employees are being allowed to choose benefit packages from a menu of items. For instance, workers may be given a package of benefits that includes basic and optional items. Basics might include modest medical coverage, life insurance equal to a year's salary, vacation time based on length of service, and some re

Managerial Economics-The theory of individual behavior

A consumer must divide $250 between teh consumption of product X and product Y. The relevant market prices are Px= $5 and Py= $10. a. Write the equation for the consumers budget line. b. Illustrate the consumers oppurtuinity set in a carefully labeled diagram. c. Show how the consumers opportuinity set changes when the p

Economics-Rapidly Rising Medical Costs and indifference curve analysis

Need some ideas for a paper about 750 words on this topic..... You are an economics advisor to a U.S. Senator. The Senator is interested in sponsoring legislation to address the impact of rapidly rising medical costs, and has commissioned you to write a briefing paper on the subject. You know medical costs have risen faster

ACCOUNTING - Flexible Budget and Variances

AC556 Week 6 Problem Flexible Budget and Variances NOTE: It is expected that this problem will be completed using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Grant Company had developed a Static Budget for 2005 for one of its major departments. By the

Capital budgeting, equipment decision

Watson Leisure Time Sporting Goods has improved operations over time and the company needs to make a decision related to an equipment decision . The company plans to purchase a new piece of equipment (to be used over a six year period) for $320,000. Assume the cash flows and depreciation (based upon the use of the 5-year MAC

Cash Budget (Accounting)

AC556 Week 5 Problem Cash Budget Note: It is expected that this problem will be complete using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Hale Company is currently working on its cash budget for the coming year. The following information is availab

Lease versus buy a car

Should I lease or buy a car? Provide an Executive Summary,definition, factors or Costs,measurement, analysis and Summary.

Effectiveness of excise taxes

Please help with the following finance problems. Provide at least 100 words. Analyze the impact of excise taxes on gasoline. 1. Find the excise (and other taxes) on a gallon of gasoline in your home state. 2. Find the excise (and other taxes) on a gallon of gasoline in two neighboring (or nearby) states. ( INDIANA AND OHI

Externalities: A summary

A summary of the categories of externalities (positive and negative, production and consumption) and how the affect the efficiency of markets.

Production Budgets (Accounting)

AC556 Week 3 Problem Production Budgets Note: It is expected that this problem will be complete using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Hale Company finished their sales projections for the coming year. The company produces one product. Par

Quality of earnings

Earnings are extremely important to a publicly traded company and the creditors and investors of that company. However, looking at earnings without regard to the quality of those earnings is hazardous to the health of creditors and investors. 1. Why is the determination of earnings quality and persistence importa

Uma Corporation

At the end of 2005, Uma Corporation was considering undertaking a major long-term project in an effort to remain competitive in its industry. The production and sales departments determined the potential annual cash flow savings that could accrue to he firm if it acts soon. Specifically, they estimate that a mixed strea

Annual Interest

Deflections, LLC, currently net leases its headquarters office building for $70,000 per month, and this lease has two years left to run. (Under a commercial fully net lease, the tenant pays for all maintenance, repairs, insurance and property taxes.) Deflections considers the rent to be less than the current market rate, but ex

Prepare an income statement and evaluate company performance.

1. (1 point) Key Financial Data Dreamscape, Inc. Industry Average Ratio For the Year Ended For the Year Ended (% of Sales) December 31, 2004 December 31, 2005 Cost of goods sold 74.5% 70.0% Gross profits 25.5 30.0 Selling expense 8.0 7.0 Gen. & admin. expense 5.1 4.9 Depreciation expense 2.4 2.0 Total operating expens

Averse selection, moral hazard

AIDS INSURANCE Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus. The third policy does not cover HIV or AIDS related illnesses. All insurance pol

Majestic Mining Corporation - maximum price to pay

Majestic Mining Corporation (MMC) is negotiating the purchase of a new piece of equipment for its current operations. MMC wants to know the maximum price that it should be willing to pay for the equipment. You are given the following facts: a. The new equipment would replace existing equipment with a current market value of

Capital budgeting with cost of capital computation

Please see attached word doc, with full details. DataPoint Engineering is considering the purchase of a new piece of equipment for $220,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require and additional initial investment of $120,000 in nondepreciable working capital. Thirty thousand dollar

What is a budget constraint? How does a budget constraint explain consumer choices when used in conjunction with indifference curves? Explain what happens if a household looses half of their income, using a budget constraint and indifference curves in your discussion.

Budget Constraints What is a budget constraint? How does a budget constraint explain consumer choices when used in conjunction with indifference curves? Explain what happens if a household looses half of their income, using a budget constraint and indifference curves in your discussion.

Moral Hazard in insurance claims

In Moline, Il, a man busted his windshield when a one pound piece of hail smashed into his car windshield. He had his car repaired by Safe Auto Glass, which advertised that it provided a free box of AB steaks with every windshield repair. The value of the AB steaks was $60. Safe Auto Glass charged the man's car insurance comp

Accounting Profit and Economic Profit

Suppose you and a friend are thinking about opening a fast-food vending business at a nearby resort during your summer break. This will entail serving pizzas out of a vendor's truck. This is an alternative to working a factory job where you can each earn $7,000 over the summer break. A fully equipped truck could be lea

Cost -- Economics

Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer: 1. New union agreement increases hourly pay. 2. Local government imposes an annual lump-sum tax per plant. 3. Federal government imposes a "s