BUSINESS
COLLEGE

Answer:

Answer:

The total cost per unit using the weighted average method would be:

$15,97

Explanation:

Materials Conversion Costs

Begining $ 14,000 $ 8,000

APRIL $ 72,000 $ 80,000

TOTAL $ 86,000 $ 88,000

Units 8,000 8,000

100% 50%

WIP 4,000 2,000

TOTAL 12,000 10,000

USD/Unit 7,17 8,80 $15,97

HIGH SCHOOL

UPS charges different prices for shipping depending on an item's destination. The more distant the city the package is being shipped to, the higher the price UPS charges. Which geographic pricing method is UPS using?

Answer:

C) Zone pricing

Explanation:

Zone pricing is a method that charges different fees depending on the zones or regions where the customers are. In this case, if the destination point is farther away from the dispatch point, the company will charge a higher fee, i.e. the fee increases as the shipping distance increases.

HIGH SCHOOL

The outcomes of democratic leadership include: a. Greater group satisfaction, commitment, and cohesiveness

b. More friendliness, mutual praise, and group-mindedness Less efficiency

c. All of the above

d. A and B only

Answer:

c. All of the above

Explanation:

Democratic leadership refers to the kind of leadership wherein the leader is open to constructive ideas from subordinates.

For example, while formulating policies which relate to workers working in the factory, the leader may discuss with workers and inquire of their views and suggestions.

This kind of leadership imbibes a sense of belonging among employees which acts as a motivation to work towards attainment of organizational goals.

At the same time such an activity would lead to a greater satisfaction in the group, better commitment and cohesiveness or synchronization of activities.

Also the environment turns more amiable with scope for mutual praise and group mindedness.

COLLEGE

John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows of $70,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $400,000. The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the 20-year life of the mortgage. Accordingly, the Claussens’ desired rate of return on this investment varies as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Years 1-5: 7% Years 6-10: 10%

Years 11-20: 12%

Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store?

Answer:

Explanation:

Calculate maximum that should pay:

Compute present value of cash flows from the store, year 1 to 5 :

Annual cash flows are $70,000

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 1 to 5 years =

= $287,013.82

Compute present value of cash flows from the store for years 6 to 10

Annual cash flows are $70,000

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 6 to 10 years = annual cash flows x PVIFA (10%,5) x PVIF (7%,5)

= $70,000 x 3.79079 x 0.7130 = $189,198.33

Compute present value of cash flows from the store for years 11 o 20

Annual cash flows are $70,000

Desired rate of return on investment for 11 to 20 years is 12%

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 10

Present value of cash flows generated during 11 to 20 years = [annual cash flows x PVIFA (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

= $70,000 x 5.65022 x 0.62092 x 0.7130 = $175,100.98

Calculate present value of estimated sale amount to be received for sale of store

Present value of estimted sale amount to be received = [Estimated sale amount x PVIF (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

=$400,000 x 0.32197 x 0.62092 x 0.7130=

=$57,016.50

Calculate total maximum amount that should be paid

Particulars Amount ($)

Present value of cash flows during 1 to 5 years $287,013.82

Present value of cash flows during 6 to 10 years $189,198.33

Present value of cash flows during 11 to 20 years $175,100.98

Present value of estimated sale value $57,016.50

Maximum amount that C should pay to JD for store $708,329.63

Therefore, Maximum amount that should be paid $708,329.63

COLLEGE

A company's flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000. Calculate the expected level of operating income if the company produces and sells 13,000 units. A) $85,000. B) $50,500. C) $133,000. D) $110,500. E) $100,000.

Answer:

C) $133,000

Explanation:

We have to divide the sales and the variable cost by the unit budgeted

This will be the unit sales price and unit variable cost

200,000/10,000 = 20

40,000/10,000 = 4

Next we do the income statment

Sales Revenue $20 x 13,000 = 260,000

Variable Cost $4 x 13,000= (52,000)

Contribution Margin 208,000

Fixed Cost (75,000)

Operting Income 133,000