The fact that you don't have to claim it, and as a result, don't have to pay taxes on the item until you sell it, makes the tax benefit on capital gains income just as attractive.
What happens if you don't declare capital gains?If you don't report the gain, the IRS will start to have doubts. In contrast to a minor missing loss that they may easily find, correct, and punish you for the discrepancy, a larger missing capital gain may raise red flags for the IRS.
Is there a deadline for paying capital gains tax?Tax on capital gains is not due until the investment is sold. The tax paid is equal to the capital gain or difference between the purchase price and sale price of the stock, real estate, or other asset.
Who is exempt from paying capital gains tax?You qualify for the exception if you have owned and used your house as your principal residence for a cumulative total of at least two years out of the five years prior to the date of sale. The ownership and usage conditions may be met throughout numerous 2-year periods.
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Before filing a consumer complaint, you should
A. write a negative review
B. threaten legal action
C. gather documentation
D. consult a lawyer
Monopoly power runs counter to the public interest because it leads to high prices, resource misallocation, and inefficiency. Antitrust policy is one of the government's instruments for curbing monopoly power and protecting competition.
Suppose that a major tire retailer purchases a major manufacturer's car tires at a discount on the condition that it must also purchase the manufacturer's truck tires. As a result of the agreement, several tire manufacturers lose their market shares and eventually exit the industry. This agreement would explicitly violate which of the following laws?
The Clayton Act of 1914
The Sherman Antitrust Act of 1890
The Robinson–Patman Act of 1936
The Celler–Kefauver Act of 1950
Answer:
C. The Robinson–Patman Act of 1936
Explanation:
The Robinson-Patman Act of 1936 is an amendment to The Clayton Act of 1914, which particularly prohibits price discrimination. Price Discrimination is an act in which distributors or sellers of certain goods, give discounts to people who they seem to benefit more from while smaller shops buy the goods at a costlier price.
The instance where the major tire manufacturer has an agreement to make a price discount with the manufacturer of truck tires is an example of price discrimination, and the consequence is that other markets are affected as they now exit the market. This is a clear contravention of the Robinson-Patman Act of 1936.
a product distributor is involved in making decisions which are an essential part of the marketing mix.
Yes, a product distributor plays an important role in the marketing mix.
Therefore the answer is True.
A product distributor is responsible for making decisions related to the distribution of a product, which is one of the four Ps of the marketing mix (product, price, promotion, and place).
The distributor must make decisions about where the product should be sold, how it should be delivered, and what channels of distribution should be used. For example, they may decide to sell the product through retail stores, online, or both. They must also make decisions about how to manage inventory and ensure that products are available to meet customer demand.
In order for a product to be successful in the market, it's important for the distributor to make well-informed decisions about distribution that align with the overall marketing strategy. By working closely with the manufacturer and other stakeholders, the distributor can help ensure that the product reaches the target market effectively and efficiently.
--The question is incomplete, answering to the question below--
"True or False.
A product distributor is involved in making decisions which are an essential part of the marketing mix."
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Why are ethical concerns important issues when designing service pricing and revenue management strategies? What are potential consumer responses to service pricing or policies that are perceived as unfair?
Ethical concerns are important issues because service pricing schedules are intricate that it makes it easy for organizations to engage in unscrupulous manner.
What is ethics?It should be noted that ethics simply means the ability to know what's right from what's wrong.
In this case, ethical concerns are important issues because service pricing schedules are intricate that it makes it easy for organizations to engage in unscrupulous manner.
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Companies might easily engage in dishonest practices due to the complexity of service pricing schedules, making ethical considerations significant.
Why do we need ethics?Ethics may be defined as the capacity to distinguish between what is right and what is wrong.
In conclusion, Service pricing schedules are so complex that it's simple for businesses to act unethically, which raises ethical questions.
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Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Using the appropriate tool from the Accountant Tools menu, the 4 options that can be batch reclassified in QuickBooks Online Accountant are options A, B, C and F:
ClassesCustomersProducts and ServicesAccountWhat is QuickBooks Online Accountant?In the above question, too batch reclassify these items, you can use the "Batch Reclassify Transactions" tool, which can be found under the Accountant Tools menu.
This tool allows you to select multiple transactions and reclassify them to a different account, class, customer, or product/service.
Therefore, Locations, tax codes, and suppliers cannot be batch reclassified using this tool. However, you can edit individual transactions to change their location, tax code, or supplier if necessary.
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See full question below
Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Classes
Customers
Products and Services
Locations
Tax Code
Account
Suppliers
What products do you think will increase in demand because of the 2020 election?
Answer:
you know the basics. masks, gloves, hand sanitizer, stuff like that
Explanation:
Hershberger's Farms plans to mix two types of food to make a mix of low cost feed for the animals in his farm. A bag of food costs $10 and contains 40 units of protein, 20 units of minerals and 10 units of vitamins. A bag of food B costs $12 and contains 30 units of proteins, 20 units of minerals and 30 units of vitamins. Daily minimum requirements consist of 150 units of proteins, 90 units of minerals and 60 units of vitamins.
a. Based on the lowest possible cost, how many bags of food A and food B should be consumed by the animals each day?
b. What is the overall cost? $46.50
c. Was there any unused resources?
Answer:
Following are the responses to the given choices:
Explanation:
For point a:
It is possible to say that as the material unit in either bag are same, the minimum bag number is 90 /20 = 4.5
rounded off=Minimum 5 bags
They will try to use all of these bags as the cost of bag A is poor.
When we have five bags of protein A, therefore the vitamin requirements were n’t fulfilled.
Currently, using 4 bags of A and 1 B bag, protein, vitamin and mineral obligations are fulfilled. They all are met.
Therefore, 4 food bags A and 1 food bag B need to be consumed due to the lowest cost.
For point b:
Cost total:
\(=( 4 \times 10 ) + ( 1 \times 12)\\\\=40 +12\\\\= \$52\)
For point c:
The following are unused resources:
\(\text{Protein = Bag A + Bag B - Consumption}\\\\= 160 + 30 - 150\\\\=190-150\\\\= 40\\\\Minerals = 10 \\\\vitamins = 10\)
Which financing is also known as “risk capital”?
A.
mezzanine loans
B.
subordinate debts
C.
equity capital
D.
senior debts
E.
bonds
select all the reasons to keep your money in a financial institution
The reasons to keep your money in a financial institution are:
Safety - To keep your money safe from burglars.
Convenience - Its easy to get your money out of the ATM when you need it.
Growth - If you put your money in a savings account you can collect interest.
Security - Leaving your money in the bank will make sure that even if your money is stolen you can get it back
What are financial institution?Financial institutions are organizations that provide financial services to individuals, businesses, and governments. These institutions include banks, credit unions, investment companies, insurance companies, and other financial intermediaries.
Banks are perhaps the most well-known financial institutions. They provide a range of financial services, including checking and savings accounts, loans, mortgages, and credit cards. Credit unions are similar to banks, but are typically smaller and owned by their members.
Investment companies, such as mutual funds and exchange-traded funds (ETFs), allow individuals to invest in a variety of assets, such as stocks, bonds, and real estate, without directly owning those assets. Insurance companies offer various types of insurance, such as life insurance, health insurance, and auto insurance, to help individuals and businesses manage risk.
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select all the reasons to keep your money in a financial institution
Safety - To keep your money safe from burglars.
Convenience - Its easy to get your money out of the ATM when you need it.
Growth - If you put your money in a savings account you can collect interest.
Security - Leaving your money in the bank will make sure that even if your money is stolen you can get it back
None of the above
When will the U.S. armed forces provide financial aid?
A. during and after your service
B. before, during, and after your service
C. After you have served two years
D. Before and after your service
PLS ANSWER QUICKLY
provide two reasons why public participation is important for people experiencing lack of basic services
Answer:
the main aim of public participation is to encourage the public to have meaningful and put into decision making process public participation does provide the opportunity for communication between agencies making decisions and the Public's public participation can be time-consuming and sometimes expensive don't know if this helps but good luck
Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30)
Apr. 2 Purchased $14,300 of merchandise on credit from Noth Company, terms 2/10, n/60. 3 (a) Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,000 (cost is $3,000). 3 (b) Purchased $1,480 of office supplies on credit from Custer, Inc. terms n/30. 4 Issued Check No. 587 to World View for advertising expense of $899. 5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,000 (cost is $6,500). 6 Received an $80 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3
9 Purchased $12,125 of store equipment on credit from Hal's Supply, invoice dated April 9, terms n/10 EOM
11 Sold merchandise on credit to Nick Nelson, Invoice No. 762, for $10,500 (cost is $7,000)
12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount.
13 Received payment from Page Alistair for the April 3 sale less the discount.
13 Sold $5,100 of merchandise on credit to Page Alistair (cost is $3,600), Invoice No. 763
14 Received payment from Paula Kohr for the April 5 sale less the discount.
16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,750. Cashed the check and paid employees
16 Cash sales for the first half of the month are $52,840 (cost is $35,880). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)Page 331
17 Purchased $13,750 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30
18 Borrowed $60,000 cash from First State Bank by signing a long-term note payable
20 Received payment from Nic Nelson for the April 11 sale less the discount.
20 Purchased $830 of store supplies on credit from Hal's Supply, invoice dated April 19, terms n/10 EOM
23 Received a $750 credit memorandum from Grant Company for the return of defective merchandise received on April 17
23 Received payment from Page Alistair for the April 13 sale less the discount.
25 Purchased $11,375 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10 n/60
26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount.
27 sold $3,170 0f merchandise on credit to Paula Kohr, invoice No 764(cost is 2,520)
27 sold $6,700 of merchandise on credit to Nick Nelson, invoice No 765(cost is $4,305)
30 issued check No 591, payable to payroll, in payment of the sale salaries expense for the last half of the month,$10,750
30 Cash sales for the last half of the month are $73,975 (cost is$58,900)
Required:
Journalize the above transactions.
The journal entries for the April transactions of Wiset Company are as follows:
Journal Entries:Apr. 2 Debit Inventory $14,300
Credit Accounts Payable (Noth Company) $14,300
Apr. 3 (a) Debit Accounts Receivable (Page Alistair) $4,000
Credit Sales Revenue $4,000
Debit Cost of goods sold $3,000
Credit Inventory $3,000
Apr. 3 (b) Debit Office Supplies $1,480
Credit Accounts Payable (Custer, Inc.) $1,480
Apr. 4 Debit Advertising Expense $899
Credit Cash $899
Apr. 5 Debit Accounts Receivable (Paula Kohr) $8,000
Credit Sales Revenue $8,000
Debit Cost of goods sold $6,500
Credit Inventory $6,500
Apr. 6 Debit Accounts Payable (Custer, Inc.) $80
Credit Inventory $80
Apr. 9 Debit Store Equipment $12,125
Credit Accounts Payable (Hal's Supply) $12,125
Apr. 11 Debit Accounts Receivable (Nick Nelson) $10,500
Credit Sales Revenue $10,500
Debit Cost of goods sold $7,000
Credit Inventory $7,000
Apr. 12 Debit Accounts Payable (Noth Company) $14,300
Credit Cash Discounts $286
Credit Cash $14,014
Apr. 13 Debit Cash $3,920
Debit Cash Discounts $80
Credit Accounts Receivable (Page Alistair) $4,000
Apr. 13 Debit Accounts Receivable (Page Alistair) $5,100
Credit Sales Revenue $5,100
Debit Cost of goods sold $3,600
Credit Inventory $3,600
Apr. 14 Debit Cash $7,840
Debit Cash Discounts $160
Credit Accounts Receivable (Paula Kohr) $8,000
Apr. 16 Debit Sales Salaries Expense $10,750
Credit Cash $10,750
Apr. 16 Debit Cash sales $52,840
Credit Sales Revenue $52,840
Debit Cost of goods sold $35,880
Credit Inventory $35,880
Apr. 17 Debit Inventory $13,750
Credit Accounts Payable (Grant Company) $13,750
Apr. 18 Debit Cash $60,000
Credit Long-term Note Payable (First State Bank) $60,000
Apr. 20 Debit Cash $10,290
Debit Cash Discount $210
Credit Accounts Receivable (Nick Nelson) $10,500
Apr. 20 Debit Store Supplies $830
Credit Accounts Payable (Hal's Supply) $830
Apr. 23 Debit Accounts Payable (Grant Company) $750
Credit Inventory $750
Apr. 23 Debit Cash $4,998
Debit Cash Discounts $102
Credit Accounts Receivable (Page Alistair) $5,100
Apr. 25 Debit Inventory $11,375
Credit Accounts Payable (Noth Company) $11,375
Apr. 26 Debit Accounts Payable (Grant Company) $13,000
Credit Cash $12,740
Credit Cash Discounts $260
Apr. 27 Debit Accounts Receivable (Paula Kohr) $3,170
Credit Sales Revenue $3,170
Debit Cost of goods $2,520
Credit Inventory $2,520
Apr. 27 Debit Accounts Receivable (Nick Nelson) $6,700
Credit Sales Revenue $6,700
Invoice No 765 Terms 2/10, n/30
Debit Cost of goods sold $4,305
Credit Inventory $4,305
Apr. 30 Debit Sales Salaries Expense $10,750
Credit Cash $10,750
Apr. 30 Debit Cash $73,975
Credit Sales Revenue $73,975
Debit Cost of goods $58,900
Credit Inventory $58,900
The Transaction Analysis is attached as a word doc. (5,000 characters limit).
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57. Mark Green is considering buying a new Honda Accord. The purchase price of the car is $21,000 but Mark has a trade-in worth $4500. Mark needs a loan to buy the car and knows that his local bank requires him to put down 10% of the purchase price after the value of the trade-in is considered. Mark also knows that bank will charge 8% for the loan and require monthly payments over the next 4 years. What is the size of Mark‟s monthly payments if he makes the minimum down payment on the car?
Note that , Mark's monthly payments will be approximately $335.89 if he makes the minimum down payment on the car.
How is this so?Given
Loan amount - $14,850
Loan term - 48 months
Interest rate - 0.0067 per month(8 % annual rate divided by 12 months)
Using the formula for a fixed- rate loan,the monthly payment (P) can be calculated as follows:
P = (Loan Amount * Monthly Interest Rate) /(1 - (1 + Monthly Interest Rate)^(-Number of Months))
P = ($ 14,850 * 0.0067) /(1 - (1 + 0.0067)^(-48))
computing we have
P = ($99.50) / (1 - (1.0067)^(-48))
P = ($99.50) / (1 - 0.7035)
P = ($99.50) / (0.2965)
P ≈ $335.89
Therefore, Mark's monthly payments will be approximately $335.89 if he makes the minimum down payment on the car.
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Connect information which relates.
Inside-out perspective Choose..
competitive intelligence
the organisation's goals and values
the resources and capabilities to achieve competitive advantage
the industry environment
Competitive intelligence bridges the gap between the organization's goals and values, the industry environment, and the resources and capabilities necessary to gain a competitive edge. The correct option is a.
Competitive intelligence plays a crucial role in connecting the organization's goals and values with the industry environment and the resources and capabilities required to achieve competitive advantage. Competitive intelligence involves gathering and analyzing information about competitors, market trends, and customer preferences to gain insights and make informed business decisions.
By understanding the industry environment through competitive intelligence, organizations can identify opportunities and potential threats. This knowledge helps align the organization's goals and values with the external factors impacting its success. For example, if the industry is shifting towards sustainable practices, an organization that values environmental responsibility can leverage this trend to enhance its competitive position.
Furthermore, competitive intelligence helps identify the resources and capabilities needed to achieve competitive advantage. It provides insights into the strengths and weaknesses of competitors, allowing organizations to benchmark their own capabilities and identify areas for improvement. This knowledge can guide strategic planning and resource allocation, ensuring that the organization aligns its resources with its competitive goals. The correct option is a.
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PLZ HELP
Yarin’s gross pay for the year was $3,500. The federal income tax withholding from his pay was 9% of his gross pay. Yarin determined the federal income tax he owes is $115. How much of a refund can Yarin expect?
a-$200
b-$315
c-$3,035
d-$3,185
Answer:
200
Explanation:
A. $200
May I have brainliest please? :)
You want to start a Business, but you are unaware about the Business risk. Analyze the factors that cause Business risks.
Answer:
Business risks can be caused by a variety of factors, including economic conditions, market fluctuations, regulatory changes, and natural disasters. It's important to understand these risks before starting a business so that you can take appropriate measures to mitigate them.
Explanation:
During the staff meeting, the performance of BJ is discussed. BJ works hard but received a poor customer rating, and the manager is told to “figure it out” or fire BJ. Which of the following would be the best approach to try to improve BJ’s performance?
Answer:
BJ
Explanation:
Hi is the hard worker
so, he is the best
Providing him with 360-degree feedback from customers, co-workers and managers to give him insight into how his behavior is perceived will help improve his performance.
What is a 360-degree feedback?A 360-degree feedback refers to a process that allows employees to receive feedback from the people who work around them.
In conclusion, the feedback will let him know how to improve on his work performance.
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The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio.
Answer:
a) Current ratio for Kansas company is 1.475
Current ratio for Montana company is 1.814
b) Since the current ratio for the Montana company is more than that of the Kansas company which shows better liquidity, the Montana company has the greater likelihood of being able to pay its bills.
c) Kansas company would produce the higher return-on-assets ratio.
Explanation:
Current Assets Current liabilities
Kansas Company $ 59,000 $ 40,000
Montana Company $ 78,000 $ 43,000
a) To calculate the current ratio of A company
Current ratio = \(\frac{Current Assets}{Current Liabilities}\)
Therefore current ratio for Kansas company = $ 59,000 ÷ $ 40,000 = 1.475
Current ratio for Montana company = $ 78,000 ÷ $ 43,000 = 1.814
The net income for a company is $210,000 for the year ended December 31, 2020.
The total assets of the company are $800,000 on January 1, 2020.
The ending total assets are $950,000 on December 31, 2020.
Given this information, what is the return on assets for this company and a possible interpretation?
What is one cost of avoiding insurance?
Answer: One of the costs of not having insurance is the cost of repairing. Another cost is paying insurance premiums. Losses caused by a lack of insurance are the price of not having insurance.
Answer:
falling into debt if faced with a serious problem
Explanation:
What is the name of the standards that accountants must follow to ensure the financial statements they prepare are relevant, reliable, consistent, and comparable?
General Accounting Rules and Regulations
Generally Accepted Accounting Principles
U.S. Accounting Standards
Global Accounting Standards
Standard Operating Procedures for Accounting
The rules accountants must abide by so the financial statements they create are pertinent, trustworthy, uniform, and comparable to generally accepted accounting principles.
It's best to choose option B. The ten GAAP rules are concerned with ethics, transparency, and consistency in accounting.
GAAP is strongly advised for all businesses though required only for publicly traded and regulated companies. The details, difficulties, and legalities of corporate and business accounting are all covered by generally accepted accounting principles or GAAP.
The Financial Accounting Standards Board (FASB) bases its extensive collection of approved accounting techniques and procedures on generally accepted accounting principles.
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Why do companies wish to have financial slack?
This extra money is available to help a company survive difficult times, such as decreases in sales, revenues or profits
A company cannot have discriminatory hiring policies based on race, gender or disabilities, even if the disability could impact performance.
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below.
Balance Sheets
2019 2018
Assets
Cash and equivalents $100 $85
Accounts receivable 275 300
Inventories 375 250
Total current assets $750 $635
Net plant and equipment 2,300 1,490
Total assets $3,050 $2,125
Liabilities and Equity
Accounts payable $150 $85
Accruals 75 50
Notes payable 150 75
Total current liabilities $375 $210
Long-term debt 450 290
Total liabilities 825 500
Common stock 1,225 1,225
Retained earnings 1,000 400
Common equity 2,225 1,625
Total liabilities and equity $3,050 $2,125
Income Statements
2019 2018
Sales $2,265 $1,565
Operating costs excluding depreciation and amortization 1,250 1,000
EBITDA $1,015 $565
Depreciation and amortization 100 75
EBIT $915 $490
Interest 63 46
EBT $852 $444
Taxes (25%) 213 111
Net income $639 $333
Dividends paid $54 $48
Addition to retained earnings $585 $285
Shares outstanding 100 100
Price $25.00 $22.50
WACC 10.00%
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest cent.
The 2018 free cash flow for Rosnan Industries is $158. The balance sheet was the based on the Rosnan Industries' 2019 and 2018.
Particular 2018 2019
Current Asset $635 $750
Current Liability $135 $255
Net working capital 500 525
Net increases in working capital 25
The capital expenditure is made are computed:
Ending balance of fixed asset 2300
Add: Depreciation 100
Less: Begging of fixed amount 1490
Capital expenditure: 910
Net income: 677
Add: Depreciation 100
Less: Capital expenditure -910
Less: Net increases in Net WC -25
Free cashflow -158
The 2018 free cash flow for Rosnan Industries is $158.
As a result, the significance of the Rosnan Industries' 2019 and 2018 balance sheets are the aforementioned.
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appropriate personal
Answer:
right or suitable; fitting
Explanation:
Ruiz Engineering Contractors incurred employee payroll costs of $36,000 ($28,000 direct and $8,000 indirect) on an engineering project. The company applies overhead at a rate of 25% of direct labor cost. Record the entries to assign payroll liabilities and to apply overhead.
The entries are to assign payroll liabilities and apply the overhead given below.
What are entries?A transaction is formally recorded in an accounting entry. Most of the time, an accounting entry is made using the double-entry bookkeeping method, which necessitates the formation of both a debit and credit entry and ultimately results in the production of a full set of financial statements.
Service Contracts in Process: 36300 (Dr)
Operating Overhead: 10500 (Dr)
Service salaries and wages: (Cr) 46800
(To record service salary and wages)
Service Contracts in Process: 10164 (dr)
Operating Overhead: 10164 (cr)
Therefore, the entry is written above.
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Last year Wei Guan Inc. had $795 million of sales, and it had $265 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets? Do not round intermediate calculations.
The sales revenue can increase by $428.08 million without an increase in fixed assets.
What does 65% capacity mean?
65% capacity means that the company is currently using only achieving 65% of sales it could have achieved with its current fixed assets, in other words, the existing assets can still accommodate more production which would increase sales to 100% capacity before additional investment in fixed assets is required.
This means that increase in sales revenue that could be achieved using existing assets is sales revenue at 100% capacity minus the level of sales which is only 65% of the optimum level.
65% capacity sales revenue=100% capacity sales revenue*65%
65% capacity sales revenue= $795 million
100% capacity sales revenue=unknown(assume it is X)
$795 million=X*65%
X=$795 million/65%
X=100% capacity sales revenue=$1223.08 million
increase in sales=$1223.08 million-$795 million
increase in sales=$428.08 million
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Accessibility tab summary: Financial information for JPL incorporated, is presented in cells A4 to C7. A statement for requirement 1 is presented in rows 9 to 14. A table for student presentation is presented in cells A15 to C17 and A19 to B20. A statement for requirement 2 is presented in row 22. A table for student presentation is presented in cells A23 to C24. A statement for requirement 3 is presented in row 26. A table for student presentation is presented in cells A27 to B28. A statement for requirement 4 is presented in row 30. A table for student presentation is presented in cells A31 to B35 and row 37. Given the following information complete a CVP analysis for JPL, Inc.: Unit sales 11,200
Selling price per unit $75
Variable expenses per unit $45
Fixed expenses $210,000
Required: Use the data to answer the following. (Use cells A4 to C7 from the given information to complete this question. All answers should be input and displayed as positive values.) 1. Compute the CM ratio and variable expense ratio. Selling price per unit Variable expenses per unit Contribution margin per unit CM ratio Variable expense ratio 2. Compute the break-even sales. Break-even in unit sales Break-even in dollar sales 3. Compute the margin of safety. Margin of safety in dollars Margin of safety percentage 4. Compute the degree of operating leverage. Sales Variable expenses Contribution margin Fixed expenses Net operating income Degree of operating leverage
A. JPL, Inc. needs to sell 7,000 units or generate $525,000 in sales to break even.
B. JPL, Inc. has a margin of safety of $211,200 or 32%.
C. JPL, Inc. has a degree of operating leverage of 2.67. This means that for every 1% change in sales, the net operating income will change by 2.67%.
How did we get these values?Here are the explanations to the answers based on the information provided:
Compute the CM ratio and variable expense ratio.
First, we need to calculate the contribution margin per unit, which is the difference between the selling price per unit and the variable expenses per unit:
Contribution margin per unit = Selling price per unit - Variable expenses per unit
= $75 - $45
= $30
Now we can use the contribution margin per unit to compute the CM ratio and variable expense ratio:
CM ratio = (Contribution margin per unit ÷ Selling price per unit) x 100%
= ($30 ÷ $75) x 100%
= 40%
Variable expense ratio = (Variable expenses per unit ÷ Selling price per unit) x 100%
= ($45 ÷ $75) x 100%
= 60%
Compute the break-even sales.
The break-even point is the level of sales at which the company neither earns a profit nor incurs a loss. At this point, the total revenue is equal to the total cost, and the net operating income is zero. We can calculate the break-even point in units and dollars using the following formulas:
Break-even in unit sales = Fixed expenses ÷ Contribution margin per unit
= $210,000 ÷ $30
= 7,000 units
Break-even in dollar sales = Break-even in unit sales x Selling price per unit
= 7,000 units x $75
= $525,000
Therefore, JPL, Inc. needs to sell 7,000 units or generate $525,000 in sales to break even.
Compute the margin of safety.
The margin of safety is the difference between the actual sales and the break-even sales. It tells us how much sales can decline before the company starts incurring a loss. We can calculate the margin of safety in dollars and percentage using the following formulas:
Margin of safety in dollars = Actual sales - Break-even sales
= 11,200 units x $75 - $525,000
= $211,200
Margin of safety percentage = (Margin of safety in dollars ÷ Actual sales) x 100%
= ($211,200 ÷ (11,200 units x $75)) x 100%
= 32%
Therefore, JPL, Inc. has a margin of safety of $211,200 or 32%.
Compute the degree of operating leverage.
The degree of operating leverage (DOL) measures how sensitive the net operating income is to changes in sales. It is calculated as the ratio of the contribution margin to the net operating income. We can use the following formula to calculate the DOL:
DOL = Contribution margin ÷ Net operating income
To calculate the contribution margin and net operating income, we need to use the actual sales figure:
Sales = Unit sales x Selling price per unit
= 11,200 units x $75
= $840,000
Variable expenses = Variable expenses per unit x Unit sales
= $45 x 11,200 units
= $504,000
Contribution margin = Sales - Variable expenses
= $840,000 - $504,000
= $336,000
Net operating income = Contribution margin - Fixed expenses
= $336,000 - $210,000
= $126,000
Now we can calculate the DOL:
DOL = Contribution margin ÷ Net operating income
= $336,000 ÷ $126,000
= 2.67
Therefore, JPL, Inc. has a degree of operating leverage of 2.67. This means that for every 1% change in sales, the net operating income will change by 2.67%.
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What is not a major purpose of orientation and socialization? Reducing employee turnover Reducing employee benefits Reducing stress and anxiety Reducing start-up costs
Answer:
B). Reducing employee benefits
Explanation:
Orientation and socialization programs primarily aim to make the new employees familiar to the organization, their role in the organization, the policies, rules, and to the other employees also. It helps the new employees to adapt easily to the new work environment, internalize the values, culture, and principles of the organization, build effective work relationships, etc.
As per the question, 'reducing the employee benefits' is not a major purpose of conducting orientation and socialization programs as it has no affiliation to it. These programs primarily aim to familiarize the new employees to the work culture which helps in reducing employee turnover(loss of talent due to an old employee leaving the organization and replaced by a new one), reducing the stress and grievances of the new employees, and reducing start-up costs as once the employees are familiar, they would yield maximum productivity in limited time. Thus, option B is the correct answer.
e United States and China each produce steel and toys.
The following are the production possibility schedules for each nation.
Answer the questions below based on the PPF schedules.
China
A
B
C
D
E
Steel
8
6
4
2
0
Toys
0
10
20
30
40
United States
A
B
C
D
E
Steel
16
12
8
4
0
Toys
0
12
24
36
48
Which country has absolute advantage in the production of steel?
Which country has absolute advantage in the production of toys?
Which country has comparative advantage in the production of toys?
Which country has comparative advantage in the production of steel?
If the two countries specialize and trade with each other, which country will import steel?