Based on the information given their preliminary cash balance is $9,300.
Preliminary cash balanceUsing this formula
Preliminary cash balance= Beginning cash balance + cash receipts- cash payment -outstanding loan balance
Let plug in the formula
Preliminary cash balance=$6,000+$12,000-$7,200-$1,500
Preliminary cash balance=$9,300
Inconclusion their preliminary cash balance is $9,300.
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Answer:
10800
Explanation:
At Haddon, Inc., the office workers are employed for a 40-hour workweek and are paid on either an annual, monthly, or hourly basis. All office workers are entitled to overtime pay for all hours worked beyond 40 each workweek at 1.5 times the regular hourly rates. Company records show the following information for the week ended December 26, 20--. Employee Salary Hrs. WorkedCumulative Taxable Wages as of Last Pay Period (12/19/--) OFFICEKing, M.$135,200.00 per year40$132,600.00 Manera, E.$6,500.00 per month40$76,500.00 Tate, S.$3,900.00 per month48$45,900.00 Yee, L.$12.50 per hour44.5$27,675.13 PLANTDiaz, R.$12.50 per hour48$14,778.96 Zagst, J.$14.50 per hour52$24,703.02 On the form below, calculate for each worker: (a) regular earnings, (b) overtime earnings, (c) total regular and overtime earnings, (d) FICA taxable wages, (e) FICA taxes to be withheld, and (f) net pay for the week ended December 26, 20--. Assume that there are 52 weekly payrolls in 20--. Also, determine the total where indicated.
Answer:
Employee Salary Hrs. Worked Cumulative Taxable
Wages as of Last Pay Period
King, M. $135,200 (year) 40 $132,600.00
Manera, E. $6,500 (month) 40 $76,500.00
Tate, S. $3,900 (month) 48 $45,900.00
Yee, L. $12.50 (hour) 44.5 $27,675.13
Diaz, R. $12.50 (hour) 48 $14,778.96
Zagst, J. $14.50 (hour) 52 $24,703.02
(a) regular earnings,
King, M. $135,200 / 52 weeks = $2,600
Manera, E. $1,500 weekly salary
Tate, S. $900
Yee, L. $12.50 x 40 = $500
Diaz, R. $12.50 x 40 = $500
Zagst, J. $14.50 x 40 = $580
(b) overtime earnings,
King, M. $0
Manera, E. $0
Tate, S. [($900 / 40) x 8 x 1.5] = $270
Yee, L. $12.50 x 4.5 x 1.5 = $84.38
Diaz, R. $12.50 x 8 x 1.5 = $150
Zagst, J. $14.50 x 12 x 1.5 = $261
(c) total regular and overtime earnings,
King, M. $2,600
Manera, E. $1,500
Tate, S. $1,170
Yee, L. $584.38
Diaz, R. $650
Zagst, J. $841
(d) FICA taxable wages (the FICA taxes limit for 2020 is $137,700, so everyone will be taxed)
King, M. $2,600
Manera, E. $1,500
Tate, S. $1,170
Yee, L. $584.38
Diaz, R. $650
Zagst, J. $841
(e) FICA taxes to be withheld
King, M. $2,600 x 7.65% = $198.90
Manera, E. $1,500 x 7.65% = $114.75
Tate, S. $1,170 x 7.65% = $89.51
Yee, L. $584.38 x 7.65% = $44.71
Diaz, R. $650 x 7.65% = $49.73
Zagst, J. $841 x 7.65% = $64.34
(f) net pay for the week ended
King, M. $2,600 - $198.90 = $2,401.10
Manera, E. $1,500 - $114.75 = $1,385.25
Tate, S. $1,170 - $89.51 = $1,080.49
Yee, L. $584.38 - $44.71 = $539.67
Diaz, R. $650 - $49.73 = $600.27
Zagst, J. $841 - $64.34 = $776.66
Tookies Tacos’ next annual dividend will be $4.26 a share and all later dividends are expected to increase by 4.4 percent annually. What is the rate of return if this stock is currently selling for $48.74 a share?
The rate of return if this stock is currently selling for $48.74 a share is 13.14%.
Rate of returnUsing this formula
Rate of return=(Annual dividend/Stock current price)+Expected rate
Let plug in the formula
Rate of return= ($4.26/$48.74) + .044
Rate of return=0.0874+0.044
Rate of return=0.1314×100
Rate of return=13.14%
Inconclusion the rate of return if this stock is currently selling for $48.74 a share is 13.14%.
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Suppose that each week Fiona buys 16 peaches and 4 apples at her local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:
multiple choice
The law of diminishing marginal utility does not hold for Fiona.
Fiona is not maximizing her utility.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.
If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be greater than her marginal utility from the 4th apple she buys.
If Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that C. If Fiona is maximizing her utility, then her marginal utility from the 16th peach she buys must be equal to her marginal utility from the 4th apple she buys.
What is marginal utility?Marginal utility describes the benefit derived from the consumption of one additional unit of a product or service.
The marginal utility can be computed using this formula:
Marginal utility = total utility difference/quantity of goods difference.
This means that marginal utility is equal to the change in total utility divided by the change in the number of goods consumed.
Thus, if Fiona buys 16 peaches and 4 apples at her local farmer's market each week, we can infer that Option C is correct.
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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:
Home Work
Direct materials cost per unit $38 $72
Direct labor cost per unit 23 40
Sales price per unit 359 573
Expected production per month 620 units 490 units
Harbour has monthly overhead of $180,660, which is divided into the following cost pools:
Setup costs $80,840
Quality control 68,620
Maintenance 31,200
Total $180,660
The company has also compiled the following information about the chosen cost drivers:
Home Work Total
Number of setups 41 53 94
Number of inspections 320 410 730
Number of machine hours 1,200 1,400 2,600
Required:
a. Suppose Harbour uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.
b. Calculate the production cost per unit for each of Harbour's products under a traditional costing system.
c. Calculate Harbour's gross margin per unit for each product under the traditional costing system.
Answer:
Instructions are below.
Explanation:
a)
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 180,660/2,600
Predetermined manufacturing overhead rate= $69.49 per machine hour
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Home= 69.49*1,200= $83,388
Work= 69.49*1,400= $97,286
b) We need to determine the unitary cost for each product:
Home:
Unitary cost= 38 + 23 + (83,388/620)= $195.50
Work:
Unitary cost= 72 + 40 + (97,286/490)= $310.54
c) Gross margin= selling price - unitary cost
Home:
Gross margin= 359 - 195.5= $163.4
Work:
Gross margin= 573 - 310.54= $262.46
QUESTION 9 / 10
Which of the following statements is TRUE?
A. People with low credit scores are usually low-risk
borrowers.
B. The longer you use credit responsibly, the higher your
credit score will be.
C. Applying for several credit cards in one year can help
increase your credit score.
D. Paying off your entire credit card balance can lower
your credit score.
Answer:
B
Explanation:
Hello!
Let's analyze the statements and gather the accuracy of each response.
Note, that a higher credit score is good, and a lower one is bad.
A) People with low credit scores are usually very reckless with their money and their credit cards; therefore, they are high-risk borrowers to people who give them loans because they might never pay them back (which resulted in the low credit score to begin with)
B) The longer you use your credit card and pay on time, the more your credit score will rise. This is a very factual statement.
C) Applying for several credit cards can actually lower your credit score. If you have so many credit cards, you might end up forgetting to pay one, which lowers it, or with improper account management.
D) Paying off your credit card is good...so why would it lower a credit score?
The two most common types of fraud impacting financial statements are:___________
a. corruption and fraudulent financial reporting.
b. misappropriation of assets and embezzlement.
c. fraudulent financial reporting and e-commerce fraud.
d. fraudulent financial reporting and misappropriation of assets.
The two most common types of fraud impacting financial statements are d. fraudulent financial reporting and misappropriation of assets.
What are the main financial statements frauds?The main types of financial statement fraud include:
Improper revenue recognitionOverstatement of assetsUnderstatement of liabilitiesMisappropriation of assetsImproper disclosure.Experience has shown that revenue recognition is the most common type of financial statement fraud.
Thus, the two most common types of fraud impacting financial statements are Option d.
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Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price $167 Materials and purchased parts $25/unit Direct Labor 2 hrs at $20 per hour Fixed Cost $1,400,000 If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit.
The manufacturing cost per unit for Tech Engineering is $97 having charged overhead expenses at 80 % of labor cost
What is manufacturing cost?Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material and direct labor.
Manufacturing cost is computed as:
= Materials and purchased parts cost + Direct labor cost + Overhead expenses
= $25 + $40 + 80% * $40
= $25 + $40 + $32
= $97
Hence, the manufacturing cost per unit for Tech Engineering is $97
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1. Suppose Mary intends to sell two software products X & Y for the next convention & budgets the following . X Y Total Units Sold. 60 40 100 Revenues, $200 $100 per unit $12,000 $ 4,000 $16,000 Variable Costs, $120 $70 per unit 7,200 2,800 10,000 Unit Contribution Margin, $80 $ 30 per unit $ 4,800 $ 1200 $ 6,000 Fixed Costs 4,500 Operating Income $ 1,500 Required: What is the BEP (in units & in Birr)
The break-even point (in units and dollars) for Mary, who intends to sell two software products X & Y are:
1) Break-even point in units = Fixed costs/Weighted contribution margin per unit
X Y
= 70 units 750 units
($4,500/$64) ($4,500/$6)
2) Break-even point in dollars = Fixed costs/Weighted contribution margin ratio
X Y
= $5,625 $22,500
($4,500/80%) ($4,500/20%)
What is the break-even point?The break-even point is the point at which the total revenue equals total costs (including variable and fixed costs).
At the break-even point, both in units and in dollars, the organization records no profit or loss.
For more than one product, the computation of the break-even point is based on the weighted contribution margin.
Data and Calculations:X Y Total
Units Sold 60 40 100
Revenues, $200 $100 per unit
Total $12,000 $ 4,000 $16,000
Variable Costs, $120 $70 per unit
Total variable costs 7,200 2,800 10,000
Unit Contribution Margin, $80 $ 30 per unit
Weighted contribution margin $64 $6 ($30 x 20%)
Total Contribution Margin $ 4,800 $ 1,200 $ 6,000
Weighted contribution margin 80% 20% 100%
Fixed Costs 4,500
Operating Income $ 1,500
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Kevin’s Bacon Company Inc. has earnings of $7 million with 2,500,000 shares outstanding before a public distribution. Eight hundred thousand shares will be included in the sale, of which 500,000 are new corporate shares, and 300,000 are shares currently owned by Ann Fry, the founder and CEO. The 300,000 shares that Ann is selling are referred to as a secondary offering and all proceeds will go to her. The net price from the offering will be $18.50 and the corporate proceeds are expected to produce $1.4 million in corporate earnings. a. What were the corporation’s earnings per share before the offering? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Answer:
$2.80
Explanation:
The computation of the corporation’s earnings per share before the offering is shown below:-
Corporation’s earnings per share before the offering = Earnings ÷ Outstanding shares
= $7,000,000 ÷ 500,000
= $2.80
Therefore for computing the corporation’s earnings per share before the offering we simply applied the above formula.
The ______ is a corporate planning tool in which the corporation is viewed as a portfolio of business units.
It should be noted that a growth-share matrix is a corporate planning tool in which the corporation is viewed as a portfolio of business units.
What is growth-share matrix?
The growth-share matrix serves as planning tool that uses graphical representations of a company's products .
It is a tool that help the company decide what it should keep, sell, or invest.
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A woman worked part-time as a clerk at a drug store. She worked mostly on weekdays from 5 PM to 9 PM, but was occasionally given other shifts. Due to glaucoma, she eventually lost all sight in her left eye. She had no difficulty performing her job, but she did experience problems getting to work. She asked to be given a "day shifts only" schedule because of the danger of driving home at night and the complete unavailability of public transportation. Her supervisor said that she would not be given the schedule she requested because that would not be fair to the storeâs other employees. The woman provided a doctorâs note recommending that she not drive during evening hours, but the store did not change its position. Her union representative met with store officials and reported that he "got nowhere." Other attempts to arrange meetings involving the woman fell through. She received rides from family members and did not miss any work following the denial of her request. However, it became too difficult to continue to arrange rides and she quit.
Required:
Did the store fail to reasonably accommodate this employee? Why or why not?
Answer:
Did the store fail to reasonably accommodate this employee? Why or why not?
Yes, the store did fail to accommodate this woman. Changing her work schedule was not an extra benefit, it was a necessity for her. Changing her schedule due to valid medical reasons isn't being nice to her, it is doing the right thing. She was a good employee since she tried to keep working despite being difficult for her to go to work, but was unable to continue doing so.
In legal terms, in order to determine if the supervisor's actions violated the American Disabilities Act, we must first know if the woman's glaucoma was so severe that it was considered a disability. Apparently due to the doctor's note, her condition could be considered a disability. If she was legally disabled, then the supervisor and the company should have been fined. They are legally required to change her work shift.
2. Which is NOT an activity that requires training?
A ) Using ladders
B ) Using power tools
C ) Walking up and down stairs
D ) Working on catwalks and grids
Duerr Company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is:
Answer:
The maturity value is "$79790".
Explanation:
The given values are:
Principal
= $79,000
Time
= 30/360
Rate
= 12%
The interest on the cash loan to Ryan and Co will be:
= [tex]79000\times 12 \ percent\times \frac{30}{360}[/tex]
= [tex]790[/tex] ($)
Maturity value
= [tex]Principal\times (1+rate\times time)[/tex]
= [tex]79000\times (1+(12 \ percent\times \frac{30}{360} )[/tex]
= [tex]79000\times 1.0100[/tex]
= [tex]79790[/tex]
What are the principle advantages of using brokers, personalised trading networks and
associations in the marketing of international commodities?
Answer:
search it up online
Explanation:
National orthopedics company issued 8% bonds dated january 1 with a face amount of 750000 on january 1 2021 the bonds mature on devember 21 2024 for bonds of similar risk and maturity the market rield was 10% interest is paid semiannually on june 30 and december 31 deteremine the price of the bonds at january 1 2021.
Required:
a. Prepare the journal entry to record their issuance by nation on january 1 2021.
b. Prepare an amortization schedule that determines interest a the effective rate each period.
c. Determine the price of the bonds at January 1, 2021.
d. Prepare the appropriate journal entries at maturity on December 31, 2021.
Answer:
a) January 1, 2021, bonds issued at a discount
Dr Cash 701,527.50
Dr Discount on bonds payable 48,472.50
Cr Bonds payable 750,000
price per bond:
PV of face value = $1,000 / (1 + 5%)⁸ = $676.84
PV of coupons payments = $40 x 6.4632 (PV annuity factor, 5%, 8 periods) = $258.53
price = $935.37
b. I attached an excel spreadsheet
c. price of each bond at issuance = $935.37
d. December 31, 2024, last coupon payment
Dr Interest expense 37,140.61
Cr Cash 30,000
Cr Discount on bonds payable 7,140.61
December 31, 2024, bonds redeemed
Dr Bonds payable 750,000
Cr cash 750,000
Prepare the adjusting journal entries for the following transactions.
a. Supplies for office use were purchased during the year for $500, of which $100 remained on hand (unused) at year-end.
b. Interest of $250 on a note receivable was earned at year-end, although collection of the interest is not due until the following year.
c. At year-end, salaries and wages payable of $3,600 had not been recorded or paid.
d. At year-end, one-half of a $2,000 advertising project had been completed for a client, but nothing had been billed or collected.
e. Redeemed a gift card for $600 of services.
Answer: See attachment
Explanation:
The adjusting journal entries for the transactions has been attached. It should be noted that for (a), there was a debit of supplies expense by $400 which was calculated as:
= $500 - $100
= $400
For (d),the accounting revenue of $1000 was gotten as:
= 1/2 × $2000
= $1000
he operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg. For the production combination of 135 Lite and 0 Dark, which resource is slack (not fully used)?
The slack resource is the Production Time of 210 minutes.
What is a slack resource?Slack resources are excess resources. They are recognized as spare organizational capabilities and assets ready for use in productive activities.
Slack resources represent underutilized and hidden spare capacities and energies that a company can employ whenever it chooses or possesses other required resources to combine with the slack resource.
Data and Calculations:Production time = 8 hours or 480 minutes per day
Malt extract = 675 gallons
Lite (L) Dark (D)
Production time 2 min 4 min
Malt extract 5 gallons 3 gallons
Profits per keg $3.00 $2.00
Required production 135 kegs
Total resources required:
Production time = 270 minutes (135 kegs x 2) slack = 210 min (480 - 270)
Malt extract = 675 gallons (135 x 5) Slack = 0 min (675 - 675)
Thus, the slack resource is the Production Time of 210 minutes.
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A local barnes and noble paid a 79.00 net price for each hardbound atlas. The publisher offered a 10% trade discount. What was the list price?
Answer:
87.78
Explanation:
The net price was $79.00 after a 10% discount. It means 79.00 was 90% of the list price.
The list price is 79.00/ 90 x 100
=0.87 x 100
=87.7777777
=87.78
Q1 As a consequence of the diversity of risk, risk management requires a … approach.
1.
narrow
2.
modern
3.
broader
4.
traditional
Q2The board’s role should be to steer the corporation towards corporate governance policies that support … sustainable growth in … value.
1.
long-term; stakeholder
2.
long-term; shareholder
3.
short-term; stakeholder
4.
short-term; shareholder
Q 3Which one of the following activities in a company needs to be reported under the triple bottom-line principle?
1.
Financial performance
2.
Technological performance
3.
Legal performance
4.Environmental performance
Q6 Which stage in the ERM process must be ongoing in order to increase the success of implementing the entire process?
1.
Risk treatment
2.
Risk analysis
3.
Communication and consultation
4.
Monitoring and review
Q10
The King III Report on Corporate Governance introduced which of the following new concepts? a Shareholder approval of remuneration policies b Alternative dispute resolution c Directors’ performance evaluation d Business rescue Choose the correct combination: 1. a, c 2. a, b, c 3. b, c, d 4. All of the above
Risk management requires a broader approach.
The board’s role should be to steer the corporation towards corporate governance policies that support long-term sustainable growth in shareholder value.
The activities in a company that needs to be reported under the triple bottom-line principle is Financial performance
What is Risk management?Risk management is known to be the method of knowing, assessing and managing threats to an firm's capital and earnings.
Note that these risks is one that emanate from different kinds of sources such as financial issues, legal liabilities, technology issues, strategic management errors, etc.
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In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 650 units at $4, (2) 750 units at $6, and (3) 850 units at $7. Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter an average unit cost in dollars eTextbook and Media List of Accounts Compute the cost of the ending inventory under the average-cost method, assuming there are 550 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.) The cost of the ending inventory $enter the cost of the ending inventory in dollars
Answer: Average unit cost=$5.800 per unit
Cost of Ending inventory =$3,190
Explanation:
Average unit cost
First purchase= 650 units x $4=$2,600
Second Purchase=750 units x $6 =$4,500
Third Purchase= 850 units x $7 = $5,950
Total Cost = $13,050
Average unit cost = Total cost/ number of units =13,050/(650+750+850)= 13,050/2250= $5.8 per unit
Cost of Ending inventory = 550 unts at hand x $5.8 =$3,190
(using the average cost method)
What are the things that you need to change for you to be a better person??
Explanation:
Any negative attitude you might ha e toward life and/or workIf the way you treat others is not how you want to be treated, you need to change your behavior.Be open-mindedAlways try to see the good Love yourselfA self-driving car designer and a luxury automobile company partner together to develop a luxury, fully autonomous vehicle. By joining together, these companies can
The joining together of the self-driving car designer and a luxury automobile company can result in profit maximization.
What is profit maximization?It should be noted that profit maximization simply means the process that's important to bring about the highest level of profit in a company.
In this case, the joining together of the self-driving car designer and a luxury automobile company can result in profit maximization and improvement in sales.
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Martha is an 88-year-old legally blind widow. The assessed value of her condominium is $49,500. What is the total property tax exemption on her homesteaded property
The total property tax exemption on her homesteaded property will be $26,000.
What is total property tax exemption?
Generally, adult that are aged 65, older or disabled are qualified for the tax exemption on the date you become age 65 or disabled.
In conclusion , because her assessed value of her condominium is $49,500, then, she is entitled to a tax exemption on her homesteaded property up to $26,000.
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Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. 2 Purchased $6,500 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $300 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $12,300 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $12,300 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Answer: Check attachment
Explanation:
Apr. 17:
Account payable:
= $6500 - $900
= $5600
Merchandise Inventory
= $5600 × 2%
= $5600 × 0.02
= $112
Cash = $5600 - $112
= $5488
Apr. 28:
Account payable:
= $12300 - $500
= $11800
Merchandise inventory
= $11800 × 1%
= $11800 × 0.01
= $118
Cash = $11682
Check attachment
What are some Drawbacks of business Debt?
Answer:Paying Back the Debt. Making payments to a bank or other lender can be stress-free if you have ample revenue flowing into your business. ...
High Interest Rates.
The Effect on Your Credit Rating.
Cash Flow Difficulties.
Explanation:
Which of the following methods may be used to report comprehensive income? (Select all that apply.) Check All That Apply In a single, continuous statement of comprehensive income In a single, continuous statement of comprehensive income In the statement of shareholdersâ equity In the statement of shareholdersâ equity In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but consecutive statements, an income statement and a statement of comprehensive income. In two separate, but nonconsecutive statements, an income statement and a statement of comprehensive income.
What are the differences between psychodynamie and psychounalytic
theories of personality?
Answer:
The words psychodynamic and psychoanalytic are often confused. Remember that Freud's theories were psychoanalytic, whereas the term 'psychodynamic' refers to both his theories and those of his followers. Freud's psychoanalysis is both a theory and therapy.
Explain how integrity affects different stakeholder groups
The table below shows the annual change in the average nominal wage and inflation rate since 2008.
a. Compute the percentage change in real income for each year shown in the table.
Instructions: In part a, round your answers to two decimal places. In parts b and c, enter your answers as a whole number. If entering a negative number, include a minus sign.
(Table in the picture. If you could provide me with a formula and an example I can do it on my own after that. Thanks :) )
b. Of the years listed above, the paycheck of the average worker declined in
of the six years.
c. Of the years listed above, the purchasing power of the average worker declined in
of the six years.
d. The average real income of households can increase (Click to select)
Based on the given data in the table, the percentage change in real income per year are:
2008 = -3.512009 = - 0.842010 = -2.38.2011 = -1.79.2012 = 0.612013 = 0.77The number of years the paycheck of the average worker declined was 2 years.
The number of years the purchasing power declined was 4 years.
The average real income of households can increase when nominal wage growth is larger than inflation.
What does the table show?To find the percentage change in real income each year, subtract Annual inflation from Annual nominal wage growth.
= 0.33 - 3.84 = -3.51
= -1.20 - (-0.36) = -0.84
= -0.74 - 1.64 = -2.38
= 1.37 - 3.16 = -1.79
= 2.68 - 2.07 = 0.61
= 2.23 - 1.46 = 0.77
For two years, the average paycheck declined when in 2009 and 2010, the nominal wage growth was negative.
Purchasing power declined for 4 years from 2008 to 2011 when annual real wage growth was negative.
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Snow Cap Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $160,000. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin.
The break-even point in units using the mathematical equation is 2,000 in units and the unit contribution margin is 80 per unit.
Break even points in unitsa. Break-even point in unit
Using this formula
Break-even point in unit=Fixed cost/(Selling price-Variable cost)
TC = FC + VC
Sales - TC = Net Income
Sales - TC = 0
Sales - FC - VC = 0
2500(Q)-160,000-170(Q) = 0
80(Q)-160,000 = 0
80(Q)=160,000
Q=160,000/80
Q=2,000 break-even in units
b. Unit contribution margin
Unit contribution margin = Selling price- Variable cost
Unit contribution margin= $250 - $170
Unit contribution margin =$80 per unit
Inconclusion the break-even point in units using the mathematical equation is 2,000 in units and the unit contribution margin is 80 per unit.
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