Silencer Company Sells A Single Product, Mufflers For Leaf Blowers. The Business’ Profit Calculation

Silencer Company sells a single product, mufflers for leaf blowers. The business’ profit calculation for last year is shown here: Sales revenue (2000 units @ $25)    $ 50 000 Less: Variable costs (20 000) Contribution margin $ 30 000 Less: Fixed costs (22 000) Profit $ 8 000 Silencer has decided to increase the price of its product to $30 per muffler. The business believes that if it increases its fixed advertising (selling) cost by $3400, sales volume next year will be 1800 mufflers. Variable cost per muffler will be unchanged. a Using the above income statement format, show the calculation of expected profit for Silencer’s operations next year. b How many mufflers would Silencer have to sell to earn as much profit next year as it did last year? c Do you agree with Silencer’s decision? Explain why or why not

Question 3 (a) What Is Meant By Agency Conflicts And What Are The Three

Question 3 (a) What is meant by agency conflicts and what are the three types of costs that arise from agency ethics and codes can reduce agency conflicts? (b) Referring to NZICA’s fundamental principles of Codes of Ethics, briefly discuss how professional ethics and codes can reduce agency conflicts.

As It Relates To The Following Areas. Cash Management Investing Excess Funds Obtaining

As it relates to the following areas. Cash management Investing excess funds Obtaining debt financing Obtaining equity financing Explain and show the formula for any one commonly-used financial ratio.

Dacker Products Is A Division Of A Major Corporation. The Following Data Are For

Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company’s minimum required rate of return 16 % The division’s margin used to compute ROI is closest to: A) 21.9% B) 29.6% C) 7.7% D) 35.1%

Minar Inc. Reported The Following Results From Last Year’s Operations: Sales $ 5,700,000 Variable

Minar Inc. reported the following results from last year’s operations: Sales $ 5,700,000 Variable expenses 3,510,000 Contribution margin 2,190,000 Fixed expenses 1,734,000 Net operating income $ 456,000 Average operating assets $ 3,000,000 At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales $ 1,530,000 Contribution margin ratio 60 % of sales Fixed expenses $ 810,900 If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to: A) 6.3% B) 9.9% C) 7.8% D) 1.9%

The Consumer Products Division Of Goich Corporation Had Average Operating Assets Of $800,000 And

The Consumer Products Division of Goich Corporation had average operating assets of $800,000 and net operating income of $81,300 in May. The minimum required rate of return for performance evaluation purposes is 10%. What was the Consumer Products Division’s residual income in May? A) $1,300 B) $(8,130) C) $(1,300) D) $8,130

Rotan Corporation Keeps Careful Track Of The Time Required To Fill Orders. The Times

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time 3.2 Wait time 10.9 Queue time 5.1 Process time 1.2 Inspection time 0.2 The throughput time was: A) 20.6 hours B) 16 hours C) 4.6 hours D) 9.7 hours

The ACCT203 Moving Company Specializes In Hauling Heavy Goods Over Long Distances. The Company’s

The ACCT203 Moving Company specializes in hauling heavy goods over long distances. The company’s revenues and expenses depend on revenue miles, a measure that combines both weights and mileage. Summarized budget data for the next year are based on predicted total revenue miles of 800,000. At that level of volume, and at any level of volume in between 700,000 and 900,000 revenue miles, the company’s fixed costs are $120,000. The selling price and variable costs are: Per revenue mile Average selling price (revenue) $1.50 Average variable expense $1.30 Maintenance Expenses Per 50,000 miles = $10,000 Average distance per customer = 500 miles Admin and selling expenses per customer = $100 Fixed Costs increase to $200,000 over 900,000 revenue miles and decrease to $100,000 below 700,000 revenue miles. Please compile all answers in a professional business Excel model similar to what you would present to your manager in an employment situation. Your manager should be able to select or view all the required possibilities listed in number 2 below. An Excel “model” is related to what your textbook calls “sensitivity analysis”…..which has variables that can be changed or selected to see how they affect business operations. No credit will be provided unless this assignment is submitted as an Excel model. 1. Compute the budgeted net income. Your Corporate tax rate is 30% 2. Management is trying to decide how various possible conditions or decisions might affect net income. Compute the new net income for each of the following changes. Consider each case independently. -a. A 20% increase in sales price -b. A 10% increase in revenue miles -c. A 10% increase in variable cost -d. A 10% increase in fixed cost -e. An average decrease in selling price of 3 cents per revenue mile and a 5% increase in revenue miles. Refer to original data -f. An average increase in selling price of 5 cents and a 10% decrease in revenue miles. -g. A 10% increase in fixed expenses in the form of more advertising and a 5% increase in revenue miles. h. Investing in new trucks for $220,000 with a five year life and a $20,000 salvage value will increase capacity to handle 20% more customers. Should you make that investment? Why or why not. Show all calculations to support your conclusion.

Geller Inc. Incurred $700,000 Of Capitalizable Costs To Develop Computer Software During 2012. The

Geller Inc. incurred $700,000 of capitalizable costs to develop computer software during 2012. The software will earn total revenues over its 4-year life as follows: 2012 – $400,000; 2013 – $500,000; 2014 – $600,000; and 2015 – $500,000. What amount of the computer software costs should be expensed in 2012? Question 19 options: $700,000 $140,000 $175,000 $245,000

Bertucci Corporation Makes Three Products That Use The Current Constraint Which Is A Particular

Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below: TC GL NG Selling price per unit $ 494.40 $ 449.43 $ 469.68 Variable cost per unit $ 395.20 $ 320.21 $ 373.92 Minutes on the constraint 8.00 7.10 7.60 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.) A) TC, NG, GL B) TC, GL, NG C) GL, TC, NG D) GL, NG, TC

What Can Be Provided By Entering All The Data Which Occurred As A Result

What can be provided by entering all the data which occurred as a result of the previous financial quarter into the system during the training phase? PLEASE TYPE OUT YOUR ANSWER. THANK YOU SO MUCH!

Areva Resources Namibia Plc. Undertook A Project Involving The Construction Of A Seawater Desalination

Areva Resources Namibia Plc. undertook a project involving the construction of a seawater desalination plant at Wlotzkasbaken near Swakopmund. The project was completed on 01 January 2017 at a cost of N$10 000 000. The directors of Areva Resources believe their multi-million dollar project shall be able to supply all the water to be consumed at Trikkopje mine, some 40km into the dessert. After 5 years, the company has an obligation to dismantle and restore the environment in compliance with both the Ministry of Marine Resources

QUESTION 2 [26 MARKS] Cernol Chemicals Is A Chemical Company Based In Windhoek. The

QUESTION 2 [26 MARKS] Cernol Chemicals is a chemical company based in Windhoek. The company operates in two divisions, Division A and Division B. Division A produces various packaging materials for chemicals that it sells to external customers. Division B plans to introduce a cockroach bait known as the “maxforce”. The maxforce will require special syringes. Division A has the capacity to manufacture these syringes and has quoted Division B, N$55 per syringe. There is no external market for the syringes that are produced by Division A. Cernol Chemicals rewards its managers using the return on investment approach. The monthly production for Division A and Division B are as follows: Division A The maximum capacity is 6 000 per month and syringes will be produced in batches of 1 000 units. Each syringe costs N$25 per unit. Incremental fixed costs are budgeted to be N$50 000. Division B The maxiforce will be produced in batches of 1 000 units. Customers will demand 6 000 of maxiforce every month. The variable cost of producing each unit of maxiforce is N$9. This amount excludes the transfer price charged by Division A. Division B will also incur N$75 000 incremental fixed costs for the production of the maxiforce. Each unit of maxiforce uses one syringe. Market research on the potential success of the maxiforce reveals the following price and demand relationship. Demand Selling price per unit 1000 130 2000 120 3000 110 4000 100 5000 90 6000 77 REQUIREMENT: a) If the transfer price is set at N$55 per syringe, calculate the profit per month that will be reported by each of the divisions and by Cernol chemicals as a whole? b) Recommend with reasons the course of action that is beneficial to Cernol Chemicals as a whole. Your answer should show the resultant profit that will be reported by Division A, Division B and Cernol as a whole. c) Assuming that mangers of Division A are not happy with your recommendation in (b) above, suggest a transfer pricing policy that would help the company to overcome the problems they are currently facing.

Is Book Value Of Purchases Recorded At Spot Rate On Date Of Purchase Or

is book value of purchases recorded at spot rate on date of purchase or date of payment?

If The Lessee Knows The Implicit Interest Rate Computed By The Lessor (e.g., 7%)

If the lessee knows the implicit interest rate computed by the lessor (e.g., 7%) and it is less than the lessee’s incremental borrowing rate (e.g., 8%), then lessee must use the lessor’s rate. Why does FASB require companies to use the lower rate of 7% and 8%?

Andretti Company Has A Single Product Called A Dak. The Company Normally Produces And

Andretti Company has a single product called a Dak. The company normally produces and sells 83,000 Daks each year at a selling price of $60 per unit. The company’s unit costs at this level of activity are given below: Direct materials $ 6.50 Direct labor 10.00 Variable manufacturing overhead 2.80 Fixed manufacturing overhead 9.00 ($747,000 total) Variable selling expenses 2.70 Fixed selling expenses 4.50 ($373,500 total) Total cost per unit $ 35.50 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 103,750 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 25% above the present 83,000 units each year if it were willing to increase the fixed selling expenses by $150,000. What is the financial advantage (disadvantage) of investing an additional $150,000 in fixed selling expenses? 1-b. Would the additional investment be justified? 2. Assume again that Andretti Company has sufficient capacity to produce 103,750 Daks each year. A customer in a foreign market wants to purchase 20,750 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $12,450 for permits and licenses. The only selling costs that would be associated with the order would be $2.10 per unit shipping cost. What is the break-even price per unit on this order? 3. The company has 700 Daks on hand that have some irregularities and are therefore considered to be “seconds.” Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price? 4. Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 30% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period. a. How much total contribution margin will Andretti forgo if it closes the plant for two months? b. How much total fixed cost will the company avoid if it closes the plant for two months? c. What is the financial advantage (disadvantage) of closing the plant for the two-month period? d. Should Andretti close the plant for two months? 5. An outside manufacturer has offered to produce 83,000 Daks and ship them directly to Andretti’s customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is Andretti’s avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

Question 1 (28 Marks) Delta Is An Entity Which Prepares Financial Statements To 31

Question 1 (28 marks) Delta is an entity which prepares financial statements to 31 March each year. The functional currency of Delta is the dollar ($). The following events have occurred which are relevant to the year ended 31 March 2018. On February 2018, Delta purchased some inventory from a supplier whose functional currency was the dinar. The total purchase price was 3.6 million dinars. The term of the purchase were that Delta would pay for the goods in two instalments. The first instalment payment of 1260 000 dinars was due on 15 March 2018 and the second payment of 2 340 000 dinars on 30 April 2018. Both payments were made on the due dates. Delta did not undertake any activities to hedge its currency exposure arising under this transaction. Delta sold 60% of this inventory prior to 31 March 2018 for a total sale price of $480 000. All sales proceeds were receivable in $, after 31 March 2018. Delta sold the remaining inventory for sales proceeds which were in excess of their costs. Relevant exchange rates are as follows: – 1 February 2018- 6.0 dinars to $1 – 15 March 2018- 6.3 dinars to $1 – 31 March 2018 – 6.4 dinars to $1 Required (a) Discuss in detail what is meant by the concept of an entity’s functional currency and how it may be determined in accordance with IAS 21, the Effects of changes in foreign Exchange rates (5 marks) (b) Show by means of journal entries how the above events would be reported in the financial statements of Delta for the year ended 31 March 2018 (10 marks)

PART 2 Botwholesa Limited Is A Subsidiary Of Botswana Wholesaler Based In Gobabis Namibia.

PART 2 Botwholesa Limited is a subsidiary of Botswana Wholesaler based in Gobabis Namibia. Its functional currency is the Botswana Pula (P). It made a credit sale to a Botswana customer on 1 October 2018 for N$ 100 000. This transaction was incorrectly recorded by Botwholesa Limited as a sale for P100 000. Botwholesa Limited received part payment on 30 November 2018 for N$50 000 and this again was incorrectly recorded as P 50 000 in its records The following exchange rates applied during the financial year 1 October 2018 P1 = N$ 1.25 30 November 2018 P1 = N$1.20 31 December 2018 P1 = N$ 1.10 Required (a) Prepare journal entries to show how the above transactions should be recorded in the books of Botwholesa Limited for the year ended 31 December 2018 (7 marks) (b) Calculate the foreign exchange gain or loss at 31 December 2018 for Botwholesa (6 marks)

Write A Letter To Your Boss That You Want Personal Assistant In Your

Write a letter to your boss that you want personal assistant in your workplace.

Periodic Inventory Using FIFO, LIFO, And Weighted Average Cost Methods The Units Of An

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan 1 Inventory 12 units @ $37 $444 Aug 13 Inventory 20 units @$38 $760 Nov. 30 Inventory 10 units @$39 $390 Total Available units for sale 42units $ 1594 There are 20 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method. a. First-in, first-out (FIFO) method $ b. Last-in, first-out (LIFO) method $ c. Weighted average cost method $ Any help would be much appreciated! Thanks!

Rapunzel Is A Small Business That Currently Sells A Single Product, Shampoo, For $4

Rapunzel is a small business that currently sells a single product, shampoo, for $4 per bottle. The variable cost per bottle is $3. Rapunzel’s fixed costs total $6000. Calculate the following amounts for Rapunzel’s business: i contribution margin per bottle of shampoo ii break-even point in bottles of shampoo iii the profit that Rapunzel will earn at a sales volume of 25 000 bottles of shampoo iv the number of bottles of shampoo that Rapunzel must sell to earn a profit of $16 000. b Rapunzel is considering increasing its total fixed cost to $8000 and then also increasing the selling price of its product to $5. The variable cost per bottle of shampoo would remain unchanged. Repeat the calculations from (a) using this new information. Will this decision be a good one for Rapunzel? Why or why not

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