(4 points) Problem 5: George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive that order. For this subassembly, find: a) Economic order quantity. b) Annual holding cost.
What is the company’s debt ratio? 13-3 pg 273 (3–3) Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding.
A payment of $3,000 cash was made for Sal. Expenses 10. $300 payment made from accounts payable for utilities (b) Determine how much stockholders’ equity increased for the month. The Stockholder’s equity for the month Issued Stock- 20,000 Service Revenue- 9,500 Dividends- (2,000) Rent- (800) Salaries- (3,000) Utilities-(300) Increases in Stockholder’s Equity- 23,400 (c) Compute the net income for the month. The net income for the month was $5,400 1.
Question 1 Assume that a company is planning to undertake a project costing $2,000,000. This amount will be depreciated using straight line depreciation over 4 years. The project will result in increased sales of $3,500,000 a year over the next 4 years. The variable costs on increased sales will be 60% of sales and fixed costs will be $500,000 over the next 4 years. The tax rate for the company is 20%.
Such as a suit store will have ties selling at ten dollars per unit, shirts at thirty per unit, paints and so on, this is an example of sales mix. The formula illustrated in chapter 6-12, as I show above, which uses unit selling price minus unit variable costs equals contribution margin per unit. if you use this formula and if you increase the unit selling price you will have a higher contribution margin per unit. An example of this is; if my company DL inc. sells dishwashers at eight hundred dollars per unit and its variable cost per unit is three hundred dollars , how much it cost to make, my contribution margin is five hundred dollars. So if I raise my dishwashers sales from eight hundred dollars to nine hundred I will increase my contribution margin by a hundred dollars.
Answer: she paid $8000 over the life of the loan. 100*$500=$50,000 - $10,000down = $40,000 borrowed 40,000 * 5 * .04 = $8000 5) Using the information in the last question, what is the periodic payment for year 8 of the loan? Note: Sally purchased an additional 100 cows. She paid $500/cow. She paid $10,000 down and took out a 5 year loan with interest calculated using add-on interest for the rest of the cost of the land.
Annual demand is 2,000 lamps, ordering cost per order is $30, annual carrying cost per lamp is $12. a) What is the EOQ? b) What are the total annual costs of holding and ordering (managing) this inventory? c) How many orders should Discount-Mart place with Specialty Lighting per year? For more classes visit
The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month. Solution: Check excel file named solution 2 (TCO D) Mr. Earl Pearl, accountant for Margie Knall, Inc. has prepared the following product-line income data: PRODUCT Total A B C Sales................................................$ 100,000........$50,000.........$20,000...........$30,000 Variable expenses.............................. 60,000..........30,000............10,000.............20,000 Contribution margin............................. .40,000..........20,000............10,000.............10,000
When the company resells it, the gain goes into APIC (additional paid-in capital) and the stock sold is recorded in the Treasury account. 2. Lynn Co. issued 150,000 shares of $10 par common stock for $1,800,000. Lynn acquired 6,000 shares of its own common stock at $15 per share. Three months later, Lynn sold 3,000 of these shares at $19 per share.
The Unit Contribution Margin had to be figured out first: Unit CM = Selling Price per Unit – Variable Expenses per Unit Unit CM = 30.00 – 18.00 = 12.00 Then, Unit Sales to Attain the Target Profit = Target Profit + Fixed Expenses/Unit CM Target Profit = $0 because of break-even analysis Fixed Expenses = 150, 000 Unit CM = 12.00 Unit Sales to Attain the Target Profit = 0 + 150,000/12.00 = 12, 500 unit sales Then, Sales = Selling Price per Unit x Quantity Sold = P x Q = 30.00 x 12, 500 = $375,000 in dollar sales. If 12,000 pairs of shoes are sold within the year, Shop 48’s net loss would be $6000 due to the fact that the break-even point is having unit sales of 12, 500. The company is even considering paying the store manager an additional commission, an incentive commission of 75 cents. If this change is made, the new break-even point will be 13, 333 in unit sales and $399,990 in dollar sales. Another alternative being considered is paying the store manager a 50 cent commission on each shoe sold in excess of the break-even point.