John has a roofing business. After a hailstorm, he knows that many homeowners will have roof damage and will need roof repair or a completely new roof. John wants to be sure that his leads are real prospects who answer questions, value his time, are realistic about money, and are prepared to hire John for his roofing services. Which of the following statements is true for John's lead qualification?
a. It refers to determining the recognized need, buying power, receptivity, and accessibility of a sales prospect.
b. It refers to a process in which a salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status.
с. It refers to a process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect.
d. It refers to using friends, business contacts, coworkers, acquaintances, and fellow members in professional and civic organizations to identify potential clients.

Answers

Answer 1

Answer: a. It refers to determining the recognized need, buying power, receptivity, and accessibility of a sales prospect.

Explanation:

Based on the information given in the question, the statement that is true for John's lead qualification is option A "It refers to determining the recognized need, buying power, receptivity, and accessibility of a sales prospect".

From the information given, John saw the recognized need when he realized that after the hailstorm, there'll be many homeowners who will have their roof damage and will then need roof repair or a completely new roof and he also accessed the prospect for his sales.


Related Questions

Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase sales by offering supermarkets 1 month of free credit. The price per carton is $100, and the cost per carton is $65. The unit sales will increase from 1,050 cartons to 1,110 per month if credit is granted. Assume all customers pay their bills and take full advantage of any credit period offered.
a. If the interest rate is 1% per month what will be the change in the firm's total monthly profits on a present value basis if credit is offered to all customers?
b. If the interest rate is 1.5% per month v/hat will be the change in the firm's total monthly profits on a present value basis if credit is offered to all customers?
c. Assume the interest rate is 1 5% per month but the firm can offer the credit only as a special deal to new customers, while existing customers will continue to pay cash on delivery. What will be the change in the firm's total monthly profits on a present value basis under these conditions?

Answers

Answer:

Following are the responses to the given question:

Explanation:

[tex]\text{Present value of profit} = ( Revenue - cost ) \times Unit\ sold[/tex]

                                   [tex]= (\$100 - \$65 ) \times 1,050\\\\= (\$35 ) \times 1,050\\\\= \$36,750[/tex]

For point a:

[tex]\text{PV of profits} = PV(REV -COST) \times Units \ sold[/tex]

                     [tex]= (\frac{\$100}{ (1 + .01)} - \$65) \times 1,110\\\\= (\frac{\$100}{ (1 .01)} - \$65) \times 1,110\\\\= (99.0 -65) \times 1,110\\\\= 34\times 1,110\\\\= \$37,740\\[/tex]

Changes in monthly profits:

[tex]= \$37,740 - \$36,570 = \$1,170[/tex]

At 1%, the credit offer raises the company's earnings for one month.

 For point b:

[tex]\text{PV of profits} = PV(REV -COST) \times Units \ sold[/tex]

[tex]=(\frac{\$100}{(1 + .015)} -\$65) \times 1,110\\\\=(\frac{\$100}{(1.015)} -\$65) \times 1,110\\\\=33.52\times 1,110\\\\= 37,207.2[/tex]

  Changes in monthly profits:  

[tex]= \$37,207.2- \$36,570 = $637.2.[/tex]

At 1.5%, the loan offering raises the company's earnings for one month.

For point c:

[tex]\text{PV of profits} = PV(REV -COST) \times Units \ sold[/tex]

                     [tex]= (\$100 - \$65 ) \times 60\\\\ = \$2,100[/tex]

[tex]\text{PV of profits} = PV(REV -COST) \times Units \ sold[/tex]  

                     [tex]= (\frac{\$100}{(1 + .015)} - \$65) \times 60\\\\= (\frac{\$100}{(1.015)} - \$65) \times 60\\\\=33.52 \times 60\\\\= 2011.2[/tex]

Changes in monthly profits:

[tex]= \$2,011.2 -\$2,100 = \$88.8[/tex]

At a cost of 1.5%, the credit rates decrease the company's income for one month.

The U.S. has expected inflation of 2%, while Country A, Country B, and Country C have expected inflation of 7%. Country A engages in much international trade with the U.S. The products that are traded between Country A and the U.S. can easily be produced by either country. Country B engages in much international trade with the U.S. The products that are traded between Country B and the U.S. are important health products, and there are not substitutes for these products that are exported from the U.S. to Country B or from Country B to the U.S. Country C engages in much international financial flows with the U.S. but very little trade. If you were to use purchasing power parity (PPP) to predict the future exchange rate over the next year for the local currency of each country against the dollar, PPP would provide the most accurate forecast for the currency of: _________

Answers

Answer:

If you were to use purchasing power parity (PPP) to predict the future exchange rate over the next year for the local currency of each country against the dollar, PPP would provide the most accurate forecast for the currency of: _________

Country A.

Explanation:

The U.S. and Country A have Purchasing Power Parity (PPP) if an exchange rate can be determined between these two countries' currencies when their purchasing power is in equilibrium.  This parity can only be established by comparing a basket of goods in the two countries.  This basket of goods is not possible to compare with Country B or Country C that has no similar goods with the U.S.

Coronado Industries makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 4500 Shipping 1.20 Advertising 0.30 Executive salaries 50000 Depreciation on office equipment 7400 Other 0.35 38000 Expenses are paid in the month incurred. If the company has budgeted to sell 8500 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

Answers

Answer:

$120,725

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

Total budgeted variable selling and administrative expenses =( 0.60+1.2 + 0.3 + 0.35) x 8,500 + 4500 + 50,000 + 7400 + 38,000

Total budgeted variable selling and administrative expenses =2.45*8500+4500 + 50,000 + 7400 + 38,000

Total budgeted variable selling and administrative expenses=$20,825+4500 + 50,000 + 7400 + 38,000

Total budgeted variable selling and administrative expenses=$120,725

Therefore the total budgeted variable selling and administrative expenses for October is $120,725

The master budget of Marigold Corp. shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor $800000
Machine supplies 250000
Indirect materials 250000
Depreciation on factory building 70000
Total manufacturing overhead $1370000
A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of :_________.
a. $1630000
b. $1370000.
c. $1644000.
d. $1574000.

Answers

Answer:

The correct answer is A.

Explanation:

First, we need to separate the fixed costs and calculate the unitary variable costs:

Fixed costs:

Depreciation on factory building= 70,000

Total unitary varaible cost:

Total cost= 800,000 + 250,000 + 250,000= $1,300,000

Unitary cost per hour= 1,300,000 / 50,000= $26

Now, the total cost for 60,000 hours:

Total cost= 26*60,000 + 70,000

Total cost= $1,630,000

Tony has been sent to sales training and the final examination requires delivering an effective sales presentation. If he passes this examination, he will be placed into a sales job. If he does not pass, he will be let go from the company. In assessing Tony’s performance, the trainer remarks that although his talk was solid as far as content, he did not pass. The trainer fails to mention that the talk lacked several elements of excellence. Tony’s presentation graphics were inconsistent, he mumbled, and he failed to answer any of the follow-up questions. Tony throws the evaluation at the trainer, shouting, "Whatever, dude!" and slams the door on the way out. The trainer’s failure to discuss these aspects of Tony’s presentation performance demonstrated a lack of attention to which form of fairness or justice?

Answers

Answer: interactional

Explanation:

Based on the information given, the trainer’s failure to discuss these aspects of Tony’s presentation performance demonstrated a lack of attention to the interactional justice.

Interactional Justice involves the communication of the procedures that are used in judging the performance of a person. It focuses on the treatment that individuals get when there are implementation of certain procedures. This standard is utilized by the employees at work.

In this scenario, the trainer failed to interact with Tony as he didn't explain his flaws to him and didn't tell him the reason that he wasn't chosen. Thereby, the trainer didn't pay attention to interactional fairness.

Think of a business concept that would be appropriate for each of the following:
1) a sole proprietorship
2) a corporation
3) a limited liability company
In your answer address the pros and cons of the business type (sole proprietorship, Corporation, LLC) and why you the believe the business concept you choose best suits that business type. You must list at least 3 pros and 3 cons for each business type.

Answers

Answer:

Sole Proprietorship: The business concept that would be suitable for this type of business would be a roadside Fruit Juice Processing business. This involves different blends of organic fruits being blended into one smooth syrup sometimes called a smoothie.

This type of business is better registered under a Sole Proprietorship because, it is almost always carried out by those who are self-employed.

Pros:

It is easy to set up and has low operational and corporate costIt enjoys zero corporate business taxesthey are not required to submit annual filings

Cons:

The liability is unlimited and unrestricted. This means if there is litigation against the business, the business owner if found culpable will have to defray all amounts due even with his or her personal assets if the business is unable to meet that obligationThis type of business structure will find it difficult to raise money due to the potential liability exposure Also the sole proprietor may be unable to take on business debt

 

2. A Limited Liability Corporation: The business concept that would be suitable for this type of entity is a Fast Food Franchise like Tastee Fried Chicken. This sort of business will involve processing chicken and other kinds of foods into wholesome dishes.

In early April 2020, an amendment to the annual budget for 2020 was approved by the city council for inflows and outflows in the Street Improvement Bond Debt Service Fund related to the bond issue. The debt service fund budget amendment provides for estimated other financing sources of $20,000 for the premium on bonds sold and estimated revenues of $12,500 for accrued interest on bonds sold; and appropriations in the amount of the one interest payment of $25,000 to be made during 2020. (The payment that is due on July 1, 2020.)

Required:
Record the budget for the Street Improvement Bond Debt Service Fund for year 2020.

Answers

Answer:

attached below

Explanation:

Given data :

Year : 2020

estimated other financing sources = $20,000 ( premium on bonds sold )

estimated revenues = $12500 ( accrued interest on bonds sold )

approximations in amount of one interest payment = $25,000 ( to be made during 2020 )

attached below is the Budget for the street improvement Bond debt service fund for year 2020

A portfolio manager buys $1 million of U.S. Treasury bills maturing in 90 days at a price of $990,390 and discount rate of 3.8%. The portfolio also includes the following investments: Bank commercial paper maturing in 90 days with a bond equivalent yield of 4.34% and a market value of $100,000. Bank certificates of deposit maturing in six months with a bond equivalent yield of 4.84% and a market value of $200,000. The bond-equivalent yield of a comparable benchmark portfolio is 4.0%. Including the Treasury bill purchase, the manager's portfolio is:

Answers

Answer:

A. Outperforming the benchmark

Explanation:

Calculation to determine what the manager's portfolio

First step is to calculate the Treasury bill, bond-equivalent yield for U.S.

Using this formula

Treasury bill

=(Face value − Market value) / Market value × 365 / 90

Let plug in the formula

Treasury bill= ($1,000,000 − 990,390) / 990,390 × 365 / 90

Treasury bill=0.0097 × 0.04056

Treasury bill= 3.93%.

Second step is to calculate The total market value of the portfolio

Total market value portfolio=$990,390 + $100,000 + $200,000

Total market value portfolio= $1,290,390

Now let calculate the manager's portfolio

Manager's portfolio=3.93% ($990,390 / $1,290,390) + 4.34% ($100,000 / $1,290,390) + 4.84% ($200,000 / $1,290,390)

Manager's portfolio=3.93%(76.75%)+4.34%(7.75%)+4.84%(15.50%)

Manager's portfolio=0.0410*100

Manager's portfolio= 4.10%

Therefore Based on the above calculation the manager's portfolio is 4.10% OUTPERFORMING THE BENCHMARK because the manager's portfolio of 4.10% is higher than bond-equivalent yield benchmark portfolio of 4.0%.

As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2018. At exercise, holders of the SARs are entitled to receive stock equal in value to the excess of the market price at exercise over the share price at the date of grant. The SARs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $46 per share on the grant date. The fair value of the SARs, estimated by an appropriate option pricing model, is $3 per SAR at January 1, 2018. The fair value reestimated at December 31, 2018, 2019, 2020, 2021, and 2022, is $4, $3, $4, $2.50, and $3, respectively. All recipients are expected to remain employed through the vesting date.
Required:
1. Prepare the appropriate journal entry to record the award of SARs on January 1, 2018. Will the SARs be reported as debt or equity?
2. Prepare the appropriate journal entries pertaining to the SARs on December 31, 2018–December 31, 2021.
3. The SARs remain unexercised on December 31, 2022. Prepare the appropriate journal entry on that date.
4. The SARs are exercised on June 6, 2023, when the share price is $50. Prepare the appropriate journal entry(s) on that date.

Answers

Answer:

1. January 1, 2018

No Journal entry

The SARs will be reported as EQUITY

2. December 31, 2018

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

December 31, 2019

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

December 31, 2020

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

December 31, 2023

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

3. December 31, 2022

No Journal entry

4. June 6, 2023

Dr Paid in capital SAR plan $72,000,000

Cr Common stock $1,920,000

Cr Paid in capital in excess of Par $70,080,000

Explanation:

1. Preparation of the appropriate journal entry to record the award of SARs on January 1, 2018.

January 1, 2018

No Journal entry

Based on the information The SARs will be reported as EQUITY reason been that IE which full meaning is INTERNATIONAL ELECTRONICS

will tend to settle in shares of the INTERNATIONAL ELECTRONICS stock during exercise.

2. Preparation of the appropriate journal entries pertaining to the SARs on December 31, 2018–December 31, 2021.

December 31, 2018

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

(3*$24 million/4)

December 31, 2019

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

(3*$24 million/4)

December 31, 2020

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

(3*$24 million/4)

December 31, 2023

Dr Compensation expense $18,000,000

Cr Paid in capital SAR plan $18,000,000

(3*$24 million/4)

3. Preparation of the appropriate journal entry on that date.

December 31, 2022

No Journal entry

4. Preparation of the appropriate journal entry(s) on June 6, 2023

June 6, 2023

Dr Paid in capital SAR plan $72,000,000

(3*$24 million)

Cr Common stock $1,920,000

[($50-$46)*$24,0000/$50]

Cr Paid in capital in excess of Par $70,080,000

($72,000,000-$1,920,000)

Chamberlain Enterprises, Inc. reported the following receivables in its December 31, 2020, year-end balance sheet:
Current assets:
Accounts receivable, net of $24,000 in allowance for
uncollectible accounts $218,000
Interest receivable 6,800
Notes receivable 260,000
Additional information:
1. The notes receivable account consists of two notes, a $120,000 note and a $200,000 note. The $120,000 note is dated October 31, 2020, with principal and interest payable on October 31, 2021. The $200,000 note is dated March 31, 2020, with principal and 8% interest payable on March 31, 2021.
2. During 2021, sales revenue totaled $2,020,000, $1,880,000 cash was collected from customers, and $31,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end gross accounts receivable.
3. On March 31, 2021, the $200,000 note receivable was discounted at the Bank of Commerce. The bank’s discount rate is 8%. Chamberlain accounts for the discounting as a sale.
Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain’s 2021 income statement?
2. What amounts will appear in the 2021 year-end balance sheet for accounts receivable?
3. Calculate the receivables turnover ratio for 2021.

Answers

Answer:

Chamberlain Enterprises, Inc.

1.  In addition to sales revenue, the revenue and expense amounts related to the receivables that will appear in Chamberlain’s 2021 income statement

Bad debts expense                                    $39,700

Interest revenue on the $200,000 notes  $4,000

Bank Finance Fee                                      $16,000

2. The amounts that will appear in the 2021 year-end Balance Sheet for accounts receivable (net) is:

Accounts receivable         $327,000

Allowance for uncollectible -32,700

Net accounts receivable  $294,300

3. The receivables turnover ratio for 2021:

= 5.2 times

Explanation:

a) Data and Calculations:

December 31, 2020

Current assets:

Accounts receivable, net of $24,000 in allowance for

uncollectible accounts $218,000

Interest receivable             6,800

Notes receivable           260,000

Total receivables         $484,800

Notes receivable:

October 31, Note = $60,000 payable on October 31, 2021

March 31, 2020 Note = $200,000 payable on March 31, 2021

T-accounts:

Accounts receivable

Date       Account Titles                 Debit        Credit

12/31/20 Beginning balance    $218,000

12/31/21  Sales revenue         2,020,000

12/31/21  Cash                                             $1,880,000

12/31/21  Allowance for uncollectibles              31,000

12/31/21  Ending balance                                327,000

Interest receivable

Date       Account Titles                 Debit      Credit

12/31/20 Beginning balance       $6,800

Notes receivable

Date       Account Titles                 Debit      Credit

12/31/20 Beginning balance  $260,000

Allowance for  uncollectible accounts

Date       Account Titles                 Debit      Credit

12/31/20 Beginning balance                       $24,000

12/31/21  Accounts receivable   $31,000

12/31/21  Bad debts expense                       39,700

12/31/21  Ending balance            32,700

Interest on $200,000 notes receivable at 8%:

= $16,000 per year

= $1,333 monthly

Interest due on the $200,000 note, for January 1, 2021 to March 31, 2021 = $4,000

Transactions Analysis:

Accounts receivable $2,020,000 Sales Revenue $2,020,000

Cash $1,880,000 Accounts receivable $1,880,000

Allowance for Uncollectible Accounts $31,000 Accounts receivable $31,000

Bad debts expense $39,700 Allowance for Uncollectible Accounts $39,700

Bank Finance Fee $16,000 ($200,000 * 8%)

Receivables in 2020 = $484,800

Receivables in 2021 =   294,300

Total receivables =       $779,100

Average receivables = $389,550 ($779,100/2)

Credit Sales/Average receivable

= $2,020,000/$389,550

= 5.2 times.

Spam Corp. is financed entirely by common stock and has a beta of .70. The firm is expected to generate a level, perpetual stream of earnings and dividends. The stock has a price-earnings ratio of 7.90 and a cost of equity of 12.66%. The company’s stock is selling for $52. Now the firm decides to repurchase half of its shares and substitute an equal value of debt. The debt is risk-free, with an interest rate of 3%. The company is exempt from corporate income taxes. Assume MM are correct.
Calculate the cost of equity after the refinancing. (Enter your answer as a percent rounded to 2 decimal places.)
Calculate the overall cost of capital (WACC) after the refinancing. (Enter your answer as a percent rounded to 2 decimal places.)
Calculate the price-earnings ratio after the refinancing. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Calculate the stock price after the refinancing.
Calculate the stock’s beta after the refinancing. (Round your answer to 1 decimal place.)

Answers

Answer:

a. Cost of equity after the refinancing = 22.31%

b. Cost of capital (WACC) after the refinancing = 12.66%

c. Price-earnings ratio after the refinancing = 4.48

d. Stock price after the refinancing = $51.99

e. Stock’s beta after the refinancing = 2.52

Explanation:

Given:

Beta = 0.70

PE ratio = Price-earnings ratio = 7.90

Ke = Cost of equity = 12.66%

MPS = Market price per share = $52

Debt rate = 3%

Let assume that the company’s total number of shares outstanding is 1,000. Therefore, we have:

Equity market value = MPS * Number of shares = $52 * 1,000 = $52,000

By repurchasing half shares and substituting an equal value of debt, we have:

Debt = Equity market value / 2 = $52,000 / 2 = $26,000

Interest on debt = Debt * Debt rate = $26,000 * 3% = $780

Old EPS = MPS / PE ratio = $52 / 7.90 = $6.58 per share

Net income = Old EPS * Number of shares = $6.58 * 1,000 = $6,580

Earnings available to shareholders = Net income – Interest on debt = $6,580 – 780 = $5,800

New number of shares = 500

New EPS = Earnings available to shareholders / New number of shares = $5,800 / 500 = $11.60 per share

Therefore, we have:

a. Calculate the cost of equity after the refinancing. (Enter your answer as a percent rounded to 2 decimal places.)

Cost of equity after the refinancing = New EPS / MPS = $11.60 / $52 = 0.2231, or 22.31%

b. Calculate the overall cost of capital (WACC) after the refinancing. (Enter your answer as a percent rounded to 2 decimal places.)

Cost of capital (WACC) after the refinancing = (Weight of debt * Cost of debt) + (Weight of equity * New cost of equity) = (50% * 3%) + (50% * 22.31%) = 12.66%

c. Calculate the price-earnings ratio after the refinancing. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price-earnings ratio after the refinancing = 1 / Cost of equity after the refinancing = 1 / 22.31% = 4.48

d. Calculate the stock price after the refinancing.

Stock price after the refinancing = Price-earnings ratio after the refinancing * New EPS = $11.60 * 4.48 = $51.99

e. Calculate the stock’s beta after the refinancing. (Round your answer to 1 decimal place.)

Stock’s beta after the refinancing = (Cost of equity after the refinancing – Cost of debt) / (WACC – Cost of debt) = (0.2231 - 0.03) / (0.1266 - 0.05) = 2.52

Consumption expenditures $ 4,150 Federal government purchases of goods and services 850 State and local government’s purchases 331 Investment 751 Proprietors income 150 Compensation of employees 4,080 Corporate profits 134 Taxes on corporate profits 23 Rental income 31 Capital consumption allowance 295 Indirect business taxes 130 Net interest 147 Exports 300 Imports 320 Undistributed corporate profits 111 Transfer payments 66 Personal taxes 45 Dividends 0 Income Earned from the Rest of the World 252 Income Earned by the Rest of the World 1,347 Social insurance taxes 222 Statistical discrepancy 5 Refer to Exhibit 7-1. What is the value of disposable income?

Answers

Answer:

The value of disposable income is $4,207

Explanation:

Dispossable income refers to the addition of income of an individual minus his taxes.

Therefore, the value of the value of disposable income can be calculated as follows:

Disposable income = Proprietors income + Compensation of employees + Rental income + Net interest + Transfer payments - Social insurance taxes - Personal taxes = $150 + $4,080 + $31 + $147 + $66 - $222 - $45 = $4,207

Therefore, the value of disposable income is $4,207.

Several years ago, Nipher paid $70,000 to purchase equipment to use in its business. This year, it sold the equipment for $76,500. Accumulated MACRS depreciation through date of sale was $18,000. Determine the amount and character of Nipher's gain recognized. Group of answer choices $18,000 ordinary gain and $6,500 Section 1231 gain $24,500 Section 1231 gain $18,000 ordinary gain and $6,500 capital gain $24,500 ordinary gain

Answers

Answer:

$18,000 ordinary gain and $6,500 Section 1231 gain

Explanation:

Calculation to Determine the amount and character of Nipher's gain recognized.

Based on the information given we were told that the Accumulated MACRS depreciation was the amount of $18,000 which means that the ORDINARY INCOME will be $18,000 as well as $6,500 SECTION 1231 GAIN Calculated as:

Gain= Fair Value of Equipment -Book value of Equipment

Gain=$76,500-$70,000

Gain=$6,500

Therefore the amount and character of Nipher's gain recognized will be $18,000 ordinary gain and $6,500 Section 1231 gain

Bramble Corp. recorded operating data for its shoe division for the year. Sales $2000000 Contribution margin 440000 Controllable fixed costs 180000 Average total operating assets 880000 How much is controllable margin for the year? 22% 50% $260000 $440000

Answers

Answer: 260000

Explanation:

The controllable margin for the year will be calculated thus:

Contribution margin = 440000

Less: Controllable Fixed Costs = 180000

Controllable margin will now be:

= 440,000 - 180,000

= 260,000

Therefore, the controllable margin will be 260000

Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Fixed element per month Variable element per client-visit
Revenue - $47.10
Personnel expenses $22,700 $16.90
Medical supplies 1,600 6.50
Occupancy expenses 6,900 1.50
Administrative expenses 3,400 0.40
Total expenses $34,600 $25.30

Actual results for July:

Revenue $101,491
Personnel expenses 55,699
Medical supplies 15,895
Occupancy expenses 9,785
Administrative expenses 4,424

The revenue variance for July would be closest to: __________

a. $2,581 F
b. $2,110 U
c. $2,110 F
d. $2,581 U

Answers

Answer:

Burget Clinic

The revenue variance for July would be closest to: __________

a. $2,581 F

Explanation:

a) Data and Calculations:

Budgeted client-visits for July = 2,100

Actual client-visits for July = 2,110

                                Fixed element      Variable element

                                   per month            per client-visit

Revenue                               -                         $47.10

Personnel expenses    $22,700                    $16.90

Medical supplies               1,600                        6.50

Occupancy expenses      6,900                         1.50

Administrative expenses 3,400                       0.40

Total expenses            $34,600                   $25.30

Actual results for July:

Revenue                          $101,491

Personnel expenses        55,699

Medical supplies               15,895

Occupancy expenses        9,785

Administrative expenses   4,424

Budgeted Revenue = $98,910 ($47.10 * 2,100)

27. If your company purchases land and a building for $100,000, and it intends to tear down the existing building to allow construction of a new warehouse, the purchase price should be allocated to the following accounts: A) $100,000 to the Construction Expense account B) $100,000 to the Land account and $0 to the Building account C) Prorated to the Land account and Building account based on the appraised values of each. D) $100,000 to the Building account and $0 to the Land account

Answers

Answer:

The correct option is B) $100,000 to the Land account and $0 to the Building account.

Explanation:

Originally, the $100,000 paid is for both land and a buildling. There would have been a need to prorate the $100,000 to the Land account and Building account based on the appraised values of each if the existing building was not tore down.

However, since the existing building was tore sown, that indicates the building was of no use to the company and only land is useful. This indicates that the $100,000 is paid for the land alone.

Therefore, the correct option is B) $100,000 to the Land account and $0 to the Building account.

The following budget information is available for the Arch Company for January Year 2: Sales $ 860,000 Cost of goods sold 540,000 Utilities expense 2,800 Administrative salaries 100,000 Sales commissions 5 % of sales Advertising 20,000 Depreciation on store equipment 50,000 Rent on administration building 60,000 Miscellaneous administrative expenses 10,000 All operating expenses are paid in cash in the month incurred. Compute the total budgeted selling and administrative expenses (excluding interest) amount for January Year 2.

Answers

Answer and Explanation:

The computation of the total budgeted selling and administrative expenses is shown below;

Utilities expense $2,800

Administrative salaries $100,000

Sales commissions 5 % of sales i.e. 5% of $860,000  $43,000

Advertising $20,000

Depreciation on store equipment $50,000

Rent on administration building $60,000

Miscellaneous administrative expenses $10,000

total budgeted selling and administrative expenses $285,800

Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 90900 Work in process, ending 7800 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?

Answers

Answer:

Equivalent units of production= 98,700

Explanation:

Giving the following information:

Physical Units Work in process, beginning 0

Completed and transferred out 90,900

Work in process, ending 7,800

Materials are added at the beginning of the process.

To calculate the equivalent units, we need to use the following formula:

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 0 + 90,900 + 7,800*1

Equivalent units of production= 98,700

Because the materials are added at the beginning of the process, the percentage of completion is 100%.

A company is considering the purchase of new equipment for $51,000. The projected annual net cash flows are $21,200. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 10% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 10% 1 0.9091 2 1.7355 3 2.4869 What is the net present value of this machine assuming all cash flows occur at year-end

Answers

Answer:

$1721.26

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 =  -$51,000

Cash flow in year 1 to 3  = $21,200

I = 10%

NPV = $1721.26

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

An auto repair shop orders cleaning rags in batches of 120 boxes. This inventory is depleted at a constant rate and new rags are ordered to arrive exactly when the on-hand inventory of rags reaches zero boxes. What is the average inventory level over time

Answers

Answer:

60

Explanation:

the computation of the average inventory level over time is given below:

As the order is placed only when the inventory level is zero

So, The average inventory level is

= (120 +0) ÷ 2

= 60

Hence, the average inventory level over time is 60

The same would be considered and relevant

Basically we take an average of it to determine the average inventory level

Take a Load Off Hotels is considering the construction of a new hotel for $22,400,000. The expected life of the hotel is 8 years with no residual value. The hotel is expected to earn revenues of $16,688,000 per year. Total expenses, including straight-line depreciation, are expected to be $14,000,000 per year. Take a Load Off's management has set a minimum acceptable rate of return of 12%. Assume straight-line depreciation.
a. Determine the equal annual net cash flows from operating the hotel.
Present Value of an Annuity of $1 at Compound Interest
Periods 8% 9% 10% 11% 12% 13% 14%
1 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719
2 1.78326 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666
3 2.57710 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163
4 3.31213 3.23972 3.16987 3.10245 3.03735 2.97447 2.91371
5 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 3.43308
6 4.62288 4.48592 4.35526 4.23054 4.11141 3.99755 3.88867
7 5.20637 5.03295 4.86842 4.71220 4.56376 4.42261 4.28830
8 5.74664 5.53482 5.33493 5.14612 4.96764 4.79677 4.63886
9 6.24689 5.99525 5.75902 5.53705 5.32825 5.13166 4.94637
10 6.71008 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612
b. Calculate the net present value of the new hotel using the present value of an annuity of $1 table above.
c. Does your analysis support the purchase of the new hotel?

Answers

Answer:

a. Net cash flows

Depreciation has to be added back to income because it is a non-cash expense.

Depreciation = (Cost - Residual value)/ Useful life

= 22,400,000 / 8

= $2,800,000

Net cash flows = Revenue - Expenses + Depreciation

= 16,688,000 - 14,000,000 + 2,800,000

= $5,488,000

b. Net Present Value

= Present value of cash inflows - Construction cost

= (Net cash flows * Present value interest factor of annuity, 8 years, 12%) - 22,400,000

= (5,488,000 * 4.96764) - 22,400,000

= $4,862,408.32

c. Analysis SUPPORTS PURCHASE of hotel because it results in a positive Net Present Value.

Please select the proper term in each of the descriptions. Because of the existence of certain types of market failure, employers can still engage in and not necessarily lose profits. As an individual allocates their time, they face a trade-off between and work. Employers have some control over and adjust them in order to compensate for the danger or unpleasantness of a job and help contribute to certain types of market failure. Not all markets are perfectly competitive, due to the presence of , which advocates for better salaries and working conditions on behalf of their members.

Answers

Answer:

Because of the existence of certain types of market failure, employers can still engage in DISCRIMINATION and not necessarily lose profits.

Due to the existence of market failures like asymmetric information held by the employers, they can be able to discriminate in the wages they pay to employees such that they do not lose profit.

As an individual allocates their time, they face a trade-off between LEISURE and work.

An individual spends their time between leisure and work and they need to find a trade-off between the two that they are comfortable with because more hours allocated to one means less hours to the other.

Employers have some control over WAGES and adjust them in order to compensate for the danger or unpleasantness of a job and help contribute to certain types of market failure.

As a result of employers adjusting wages to suit the job characteristics or to entice employees, the job can contribute to market failure if the wages being paid are simply too high for that position.

Not all markets are perfectly competitive, due to the presence of UNIONS, which advocates for better salaries and working conditions on behalf of their members.

Unions campaign for their members to get better salaries and working conditions which might not be representative of the contribution of the job which leads to a situation where the market is no longer competitive because the tradeoff is not balanced.

The standards for product V28 call for 8.3 pounds of a raw material that costs $19.00 per pound. Last month, 2,200 pounds of the raw material were purchased for $41,360. The actual output of the month was 240 units of product V28. A total of 2,100 pounds of the raw material were used to produce this output.
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?

Answers

Answer:

Results are below.

Explanation:

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (19 - 18.8)*2,200

Direct material price variance= $440 favorable

Actual price= 41,360 / 2,200= $18.8

Now, we can determine the direct material quantity variance:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (8.3*240 - 2,100)*19

Direct material quantity variance= $2,052 unfavorable

In a town with exactly 1,000 residents, 60 percent of the residents make healthy choices and 40 percent of the residents consistently make unhealthy choices. The health insurance company in town cannot tell, in advance, who is healthy and who is unhealthy. A healthy person has an average of $600 in medical expenses each year and is willing to pay $800 for insurance. An unhealthy person has an average of $2,100 in medical expenses each year and is willing to pay $2,400 for insurance. The health insurance provider can offer insurance at only one price.

Required:
In equilibrium, the price of insurance will be at least what?

Answers

At the equilibrium, the price of insurance should be equal to at least $2,100.

What is equilibrium?

Equilibrium is the scenario where the economic factors are in an equal position. There is no factor that rises above the equilibrium point or falls below the equilibrium point.

Given information:

The average expense of a healthy person is $600 and the average expense of an unhealthy person is $2,100. Every person is interested to buy insurance are from $0 to $800, the unhealthy people would buy the insurance from $800 to $2,400, and lastly, No one would take up the insurance lies over and above $2,400

Computation of expected payment received to the company:

[tex]\rm\ Expected \rm\ payout \rm\ received = \rm\ Average \rm\ expense \rm\ of \rm\ a \rm\ healthy \rm\ person \times\ 60 \% \\+ \rm\ Average \rm\ expense \rm\ of \rm\ an \rm\ unhealthy \rm\ person \times\ 40 \%\\\rm\ Expected \rm\ payout \rm\ received =\$ 600 \times\ 60 \% + \$ 2,100 \times\ 40 \%\\\rm\ Expected \rm\ payout \rm\ received =\$ 360 + \$ $840\\\rm\ Expected \rm\ payout \rm\ received = \$1,200[/tex]

Now if an insurance company charges less than $1,200, it will incur a loss to the company, if it charges $1,200, then no one will acquire the insurance, and more than $1,200, cannot be charged by the company.

Therefore, the price of insurance at equilibrium is $2,100 equivalent to the last amount of expense paid to the person for the insurance.

Learn more about insurance prices at equilibrium in the mentioned link:

https://brainly.com/question/16287701

#SPJ2

On the Idaho Store worksheet, in the range B9:B16, use the Fill Series feature to enter interest rates beginning with 8.50%. Decrease the amounts by .50% ending with 5.00%. Format the rates as Percent Style with two decimal places and apply bold and center.

Answers

Answer:

Kindly check explanation

Explanation:

To achieve this, a formular is entered to give a rate of 8.50% in B9 ; The formular could be :

Beginning rate - 0.50x

Where x = 1 in cell B9

The beginning rate = 8.50

Hence, the formula to be inputted :

=9.00 - 0.50*1

Kindly lock the beginning rate and decline rate by an absolute reference so it doesn't change as the fill handle is being dragged down

In cell B9 :

9.00% - 0.50%*1 = 8.50%

B10:

9.00% - 0.50%*2 = 8.00%

... B16 :

9.00% - 0.50%*8 = 5.00%

Joel is the sole shareholder of Manatee Corporation, a C corporation. Because Manatee’s sales have increased significantly over the last several years, Joel has determined that the corporation needs a new distribution warehouse. Joel has asked your advice as to whether (1) Manatee should purchase the warehouse or (2) he should purchase the warehouse and lease it to Manatee. What relevant tax issues will you discuss with Joel?

Answers

Answer:

If Joel purchases the warehouse, he can rent it to the corporation and charge the highest possible rent within reasonable terms. Joel can avoid double taxation and the corporation will be able to deduct rent expense.

Joel is also able to deduct depreciation expenses, real estate taxes, and other costs from his passive income.

As an individual, Joel is taxed differently for capital gains in case he sells the warehouse, and that rate is generally lower than corporate tax rates.

Wilson sells software during the recruiting seasons. During the current year, 10,000 software packages were sold resulting in $470,000 of sales revenue, $130,000 of variable costs, and $48,000 of fixed costs. If sales increase by $80,000, operating income will increase by ________. (Round interim calculations to two decimal places and the final answer to the nearest whole dollar.) Group of answer choices $48,000 $57,872 $32,000

Answers

Answer:

$57,872

Explanation:

Calculation to determine what the operating income will increase by

Price = $470,000 / 10,000

Price= $47.00

Sales in software packages = $80,000 / $47.00 Sales in software packages= 1,702.13 software packages

Operating income increase = 1,702.13 × $34.00 per

Operating income increase = $57,872

Therefore the operating income will increase by

$57,872

Darrell is a clothier whose company, 24-7 Activewear, has separate product lines for men, women, and children. He has grouped his organization into different departments such as production, marketing, and finance. Most of the employees report to two managers a departmental head and a divisional head. Darrell encourages lower-level managers to make important decisions in order to promote quick and effective decision making.

It can be inferred that Darrell's firm utilizes the ________ approach to departmentalization.

a. geographical
b. product
c. vertical
d. matrix
e. conglomerate

Answers

Answer:

d. matrix

Explanation:

In the matrix organization structure, here the employees would have the multiple line for reporting and also they perform various kinds of roles. In this, the resources are used effectively and also it builds the motivation between the employees due to this the employee could show their skills in various fields also it improves the decision making

Therefore as per the given situation, the option d is correct

The sales volume variance is the difference between the: A. static budget (based on planned volume) and actual revenue or cost. B. flexible budget (based on actual volume) and actual revenue or cost. C. static budget (based on actual volume) and the flexible budget (based on planned volume). D. static budget (based on planned volume) and the flexible budget (based on actual volume).

Answers

Answer:

The correct answer is the option A: static budget (based on planned volume) and actual revenue or cost.

Explanation:

To begin with, the name of "Sales volume variance" refers to a method used in the business and accounting field with the main purpose of obtaining the comparison between the planned sales and the actual sales. It does it by stating that the difference between those two multiply by the budget price of the product will result in the variance itself. The goal of this method is to measure the sales performance and to see if there are no mathces with the expected revenues then the company has to take a lead and do something about it.

Whirlwind mowers manufacturers and sells power lawnmower still public and distributes the products through its own dealers. Andrew is a homeowner who has purchased a power mower from an authorized dealer on the basis of the dealer's recommendation that the mower is the best one available to the job. Andrew was cutting his lawn when the mower blade flew off and seriously injured his leg.

Required:
a. Andrew sues Whirlwind Mowers and asks for damages based on negligence in producing the power mower. Is Whirlwind Mowers guilty of negligence? Explain your answer.
b. The doctrine of res ipsa loquitur can often be applied to cases of this type. Show how this doctrine can be applied to this case. Your answer must include a definition of res ipsa loquitur .
c. Explain the various types of damages that Andrew might receive if Whirlwind Mowers is found guilty of negligence.

Answers

Answer:

A) Yes Whirlwind mowers are guilty

B) If

The negligence causes an injury event occurred due to the negligence applicant/defendant has an exclusive ownership of the equipment

C)  Compensative damages : special and general

Explanation:

A)

Andrew can sue whirlwind mowers and claim damages for production negligence ( i.e. not following the standard of care ) as enshrined in the doctrine of " res ipsa loquitur " hence Whirlwind mowers are guilty

B)  

"res ipsa loquitur ."  means the thing speaks for itself and this doctrine can be applied to this case following that the:

The negligence causes an injury event occurred due to the negligence applicant/defendant has an exclusive ownership of the equipment

c) The various types of damages

Compensative damages ( divided into 2 )

i) special damages which includes hospital expenses and other properly documented damages  ii) general damages : includes damages that are non-measurable damages

Other Questions
At the city Museum child admission is $6.40 in adult admission is $9.70 on Sunday 149 tickets were sold for a total sales of $1145 how many adult tickets were sold that day URGENT HELP PLSSuppose a force F, = (1/3)x acts on anobject. Assume at x = 0 the force pushesthe object and it starts moving to the right.What happens to the magnitude of the workdone as the object moves to the right?A. More work is doneB. Less work is doneC. A constant amount of work Is done.D. It is impossible to predict What theme is revealed through the story? A Trust leads to death in romantic relationships. B In some situations, the right choice is not easy to find. C Free will allows people to create the future they want. D Power enables people to have confidence in their choices. Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at an $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is used for all costs incurred.Record the the costs of $10,000 cash incurred on the used machineRecord the costs of $2,000 for an operating platform22. Prepare journal entries to record depreciation of the machine at December 31.(a) Its first year in operation.(b) The year of its first disposal Lucci Inc. is a retailing firm specializing in high-end merchandise. Each of Lucci's stores uses the retail inventory method by applying the average-LCM alternative. The information below pertains to one department within its Scottsdale, Arizona store. You will use this information to determine ending inventory and cost of goods sold for financial reporting purposes. Assume no inventory shrinkage, and a periodic inventory system.Beginning inventory of merchandiseCost, $40,000Retail, $360,000Purchases during the periodCost, $1,000,000Retail, $10,000,000Transportation in, $50,000Transportation out, $32,000Purchase returnsCost, $20,000Retail, $196,000Net additional markups, $800,000Net markdowns, $500,000Sales, $9,800,000Using the information above, compute the amounts to be reported in the financial statements for ending inventory and cost of goods sold for the department. The spreadsheet below has been started for you. Line items have been entered in column A. In columns B and C, enter appropriate amounts as well as intermediate subtotals directly below the amounts leading to the subtotal. Include the cost to retail calculation as well as your two amounts for financial statement reporting. Round the cost to retail ratio to four decimal places and include the "0" preceding the decimal point. Enter 0 where no other entry is appropriate.A1 lock copy cut pasteA B C1 Line Item Description Cost Retail2 Beginning inventory $40,000 3 Purchases 4 Transportation in 5 Purchases returns 6 Net purchases 7 Net additional markups 8 Cost to retail ratio components 9 Net markdowns 10 Sales 11 Ending inventory, retail 12 Set up Calculation 13 Cost to retail ratio 14 Ending inventory, cost 15 Cost of goods sold Find the distance between the origin and the point (10,45,57) Which of the following is most consistent with the modern theory of evolution?O Parents pass their physical traits to their offspring; those offspring with traits that help theO Parents change their physical traits in order to survive in the environment, then those paO Life on this planet came from another planet far out in space.O Living organisms have not changed for hundreds of millions of years. What conclusion can you draw about angles of elevation for parasailing boats traveling at the same speed? What were you able to learn about the Harlem Renaissance by listening to an essay? solve for x. enter you answer below as a fraction PLEASE HELP ME I AM BEING TIMED, I WILL MARK BRAINLIEST FOR WHOEVER GETS THIS RIGHT, WITH AN EXTRA 10 POINTS.An aquarium tank holds 285 liters of water. How much is this in gallons? Use the following conversion: 1 gallon is 3.8 liters. Briefly explain importance of financial institution for the economic development of Tanzania o.5 is < or > or = to 0.7 Chloe has been offered a new job in the womens shoe department at Macys. She has two salary options. She can receive a salary of $600 per week (Option 1), or receive $350 per week plus 8% of her weekly sales (Option 2).If Chloe has $3,200 in weekly sales, she will earn more money withIf x represents Chloes weekly sales, the following equation can be used to determine which option will benefit her the most:If x represents Chloes weekly sales, she will earn more money with Option 1 when Please help me ASAP!! How many mL (milleters) are in 12.9 liters?1. 129 mL2. 1,290 mL3. 12,900 mL4. 129,000 mLplease help ASAP! 4. PART B: Which TWO sections from the text best support theanswer to Part A?Commonlit: Can television be considered literature and taught in English classes?A They were first told orally as fairy tales, folklore, and epicpoems, and were eventually written down." ( Paragraph 1)B "First, TV shows started to look better and showcase moreinteresting camera work" ( Paragraph 5)C"the shows Doherty listed are adult entertainment that dealwith sexual and violent themes." ( Paragraph 8)."Teaching television shows in school can help to bridge thatgap by providing a common cultural ground in the waynovels once did." ( Paragraph 13)E As this discussion of TV surges, enthusiasm for traditional,written literature wanes." ( Paragraph 15)F a study at Emory University found that college students hadincreased connectivity in the parts of the brain associatedwith language while reading a novel." ( Paragraph 16) Which cities are port cities?Choose ALL answers that are correctSelect 3 correct answerAtlantaBostonNew OrleansNew York Describe the foundational truth of the Sermon on the Mount. Three numbers multiplied together give an answer of -12. The sum of two of the numbers is zero. What could the three numbers be?