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xeze [42]
2 years ago
9

g Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year

Ended December 31, 2019 Sales (10,400 units at $280 each) $ 2,912,000 Variable costs (10,400 units at $210 each) 2,184,000 Contribution margin 728,000 Fixed costs 567,000 Pretax income $ 161,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $44,500 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine.
Business
1 answer:
snow_tiger [21]2 years ago
3 0

Answer:

Forecasted contribution margin income statement for 2020

Sales (10,400 units at $280 each)                   $ 2,912,000

Variable costs (10,400 units at $202 each)   ($ 2,100,800)

Contribution margin                                              $ 811,200

Fixed costs ($567,000 + $44,500)                    ($ 611,500)

Pretax Income                                                      $199,700

Explanation:

Adjust the 2019 Contribution Income Statement by :

  1. Decreasing variable costs by $8 per unit and,
  2. Increasing Fixed cost by $44,500
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Anne Lockwood, manager of Oaks Mall Jewelry, wants to sell on credit, giving customers 3 months to pay. However, Anne will have
Alja [10]

Answer:

15.18%

Explanation:

Calculation for the nominal annual rate

First step is to find EFF% using this formula

EFF%=[1+(Nominal rate percentage/Numbers of months in a year )]^Numbers of months in a year

Let plug in the formula

EFF%=[1+(15%/12)^12

EFF%=(1+0.0125)^12

EFF%=(1.0125)^12

EFF%=1.1608×100%

EFF%=116.08%

Second step is to find Rnom compounding quarterly of 116.08% using this formula

Rnom compounding quarterly = (1+(R/4)^4

Let plug in the formula

Rnom compounding quarterly= (116.08%)^(1/4) Rnom compounding quarterly= 1+ R/4

Hence,

Rnom compounding quarterly = 15.18%

Therefore Anne Lockwood should quote her customers with Rnom compounding quarterly of 15.18%

6 0
1 year ago
A useful approach for understanding a client's business environment and associated business risks is to perform a PESTLE analysi
DedPeter [7]

Answer:

Business ricks factors for Poultry industry using PESTEL:

Political : Government imposes ban on hormone injections and artificial feeds.

Economic: Demand is high but supply is insufficient causing rise in prices.

Social: People taste changes and they are switched to beef.

Technological: Genetic manufacturing of eggs incurs high cost.

Environmental: Poultry industry creates smell pollution which can affect nearby societies.

Legal: Contract issues and termination of contract can cause industry failure.

Explanation:

PESTEL analysis is widely used in the business to identify the associated risks with the operations. In the pestel analysis all factors are analyzed in detail. Political, economic, social, technological, environmental and legal factors are analyzed in detail and risks associated with these factors are identified to improve business strategies.

8 0
1 year ago
An upset forging plant will be built to produce 2,000,000 parts per year. The plant will operate for three 8-hour shifts per day
miv72 [106K]

Answer:

A. 16

B. 57.14

Explanation:

forging presses = 20

setup time = 3 hours

Time required to produce 1 batch = 600 *45 s = 7.5 hours

total workforce = 7 in all;

a. no of forged parts produced in a month ;

total time required to produce 1 forged part = 3 + 7.5 = 10.5 hours;

working hours a day = 8 ;

total no of working days = 21/month;

total no of batches produced n= 21*8/10.5;

n = 16;

so no of parts = 16 * 600 = 9600;

b. labor productivity P= parts /work hour;

P = 9600/21*8 = 57.14

3 0
2 years ago
Suppose that end-of-term frustrations have produced this e-mail message to Professor Anne Brewer from a student who believes he
Aleks04 [339]

A student who have wrongly been graded is writing an e mail to his professor in order to reconsider his grade on the bsis of the fact thet he has appeared a question in the term exam using the optimal cost method and the professor have assured the students that he will be giving 6 points extra to the student who will ans the question on the basis of the optimal cost method

<u>Explanation:</u>

End-of-term frustrations have produced this e-mail message to Professor Anne Brewer from a student who believes he should have received a B in his accounting class. If this message were recast into three or four clear sentences, the teacher might be more receptive to the student’s argument.

The e-mail message to Prof Anne Brewer can be rewritten as  

Sir

I think you have mistakenly awarded me C in the term examination conducted recently.As far as i can recall you mentioned in the class that the students who will answer  question number three using the optimal cost method will get 6 extra marks .I think you have forgotten to consider the same while grading me.Therefore i request you to reconsider my grade on the above mentioned basis.

Regards

6 0
1 year ago
Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th
andre [41]

Answer:

The degree to which the portfolio variance is reduced depends on the degree of correlation between securities is the correct answer.

Explanation:

3 0
1 year ago
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