remember to provide step by step... check samplesChapter 4 Exercises and Problems 1,2,3,6&7
Chapter 5 1. John and Marry work for a direct marketing firm. (in one Hour) Total completed calls Sales John 50 2 Mary 50 1 We may clearly infer that John has achieved more efficient work than Mary because both have completed 50 calls, but John has two sales while Mary has only one, implying that John has obtained the best possible result with the least amount of money. Mary, on the other hand, is more effective at completing the particular mission. 2. Joan purchased a 30 – year federal government bond for $10,000, rate 4% annual interest. Jim Purchased a 30 – year corporate rate bonds for $20,000 that pays 7% annual interest. (Owner) Time Amount Rate Goal Joan 30 $10,000 4% $400 Jim 30 $20,000 7% $1,400 a. In comparison to Joan, Jim is more efficient because he wants high returns in the same amount of time. He will achieve high returns after one year that conclude the efficiency of the Jim. Utilizing the amount smartly. b. Joan is more effective because he only seeks returns. It could be high or low. He will get the returns on time that shows the effectiveness. 3. a.) Accounting Profit of Sam will be $20,000 and Entrepreneurial profit is $10,000. b.) Accounting benefit is the amount of money a company has left over after deducting all costs from its earnings. The economic principle of opportunity cost underpins entrepreneurial profit. This is capital gained in excess of what would have been gained had any investment or venture been undertaken. 6. Owner’s option to not invest to avoid losses. 7. cost per cabinet = $80 45 minutes for one cabinet, each cabinet maker works 8 hours a day $18 per hour Raw material = $25 20 day a month 2 cabinet makers Fixed cost = $5000 a. contribution margin = Price charged per unit – Variable cost d.) Excel Spread sheet Chapter 7 1. Cash = $3,500 Account Payable = $10,200 Account Receivable = $15,000 Sales Taxes = $750 Sale taxes due at horizon department = $3,450 Inventory = $17,500 Wages payable = $5,350 Taxes payable = $2,570 Money market fund = $12,300 Computer = $3,400 a. Current asset, Cash = $3,500 Account Receivable = $15,000 Inventory = $17,500 Money market fund = $12,300 Current Liability, Account Payable = $10,200 Wages payable = $5,350 Taxes payable = $2,570 Sales Taxes = $750 Sale taxes due at horizon department = $3,450 Total current assets = $48,300 Total current Liability = $ 22,320 b. Gross working capital = $48,300 c. Net working capital = ($48,300-22,320) = $25,980 d. Current Ratio = 1.86 2. 3. a. 10 days extra every month which mean = 10*12 = $120 Rate = 2%, Additional amount earned = $124.4. b. Transfer of funds Float is created when a company writes a check, resulting in a drop in the company's book value but a shift in the available balance. When a company gets a check, it increases its book value but does not adjust its usable balance. This is referred to as collection float. This problem represent disbursement of float as the payment is delayed by 10 days . 8. a. b. We should not order as it will increase the cost, and from the above we have computed economic order quantity which is equal to 40. 9. 10. a. A items = Roses and Cernatio. b. C items = Ribbon, Bud vases, pin, Glass bowl, ceremic pot, wrapping paper Chapter 8 9. 13. 16. 17. Break Even Analysis Fixed Cost0751502253003754505000500050005000500050005000Variable cost07515022530037545003900780011700156001950023400Total Cost075150225300375450500089001280016700206002450028400Revenue075150225300375450060001200018000240003000036000 Amount-50,000.00 $ Rate2%0.001667 Time1month 50,083.33$ Sheet1 Amount$ -50,000.00 Rate2%0.0016666667 Time1month $ 50,083.33 EOQSqrt (D*S)/(I*P)6,00,000.00$ Total cost2,00,000.00$ Annual demand6,000.00$ Costing per year26,700.00$ Price5.34 Fixed cost200000.00 40 Average inventory Sheet1 EOQSqrt (D*S)/(I*P)Average inventory$ 600,000.00 Total cost$ 200,000.00 Annual demand$ 6,000.00 Costing per year$ 26,700.00 Price5.34 Fixed cost200000.00 400 EOQSqrt (D*S)/(I*P)5,00,000.00$ Total cost1,00,000.00$ Annual demand10,000.00$ Costing per year3,00,000.00$ Price50 Fixed cost100000.00 82 Average inventory Sheet1 EOQSqrt (D*S)/(I*P)Average inventory$ 500,000.00 Total cost$ 100,000.00 Annual demand$ 10,000.00 Costing per year$ 300,000.00 Price50 Fixed cost100000.00 820 Roses10,000.00$ 49.10% Ribon100.00$ 0.49% Bud vases1,000.00$ 4.91% Pin15.00$ 0.07% Glass bowl500.00$ 2.46% ceremic pot3,000.00$ 14.73% wrapping paper250.00$ 1.23% carnation5,500.00$ 27.01% 20,365.00$ 100.00% Year10 Rate5% Fv21,000.00$ payment-1,669.60 $ Sheet1 Year10 Rate5% Fv$ 21,000.00 payment$ -1,669.60 Year20 Rate3% PV-10,000.00 $ FV18,061.11$ Sheet1 Year20 Rate3% PV$ -10,000.00 FV$ 18,061.11 Amount-50000 Rate500000 Rate12% Year20 Sheet1 Amount-50000 Rate500000 Rate12% Year20 a. Ira-300000 Fv600000 Rate3% Year23 c. b.Ira-300000Ira-300000 Fv600000Fv1200000 Rate6%Rate9% Year12Year16 Sheet1 a. Ira-300000 Fv600000 Rate3% Year23 c. b.Ira-300000Ira-300000 Fv600000Fv1200000 Rate6%Rate9% Year12Year16 Price80 cabinet maker0.313.5 2 cabinet maker27 Raw material per cabinet25 Variable cost52 a.Contribution28 Fixed cost 5000 Contribution28 b.Break even179 c. Cost oer cabinet80 Breakeven Quantity179 For extra $2000 owner needs to sell25Quantity more Revenue Total 2048016,285.71$ For profit of $2000 monthly revenue will be Sheet1 Price80 cabinet maker0.313.5 2 cabinet maker27 Raw material per cabinet25 Variable cost52 a.Contribution28 Fixed cost 5000 Contribution28 b.Break even179 c.For profit of $2000 monthly revenue will be Cost oer cabinet80 Breakeven Quantity179 For extra $2000 owner needs to sell25Quantity more Revenue Total 20480$ 16,285.71 Sales Price80.00$ Variable cost Material25.00$ Labour27.00$ Variable overhead52.00$ Contribution28.00$ Units 0 Fixed Cost5,000.00$ 75 150 Breakeven point (quantity)FC/Contribution per unit225 179per units300 Breakeven Point (value)BEP (quantity)*Sales Price375 14,286$ 450 Variable cost9,286$ Total Cost Fixed + vairable cost 14,286$ Break even point is where sales and total cost meets $- $5,000.00 $10,000.00 $15,000.00 $20,000.00 $25,000.00 $30,000.00 $35,000.00 $40,000.00 Sheet1 Sales Price$ 80.00 Variable costVC$ 52.00 Material$ 25.00Sales$ 80.00 Labour$ 27.00Fc$ 5,000.00 Variable overhead$ 52.00 Contribution$ 28.00UnitsFixed CostVariable costTotal CostRevenueBEP 0$ 5,000.00$ - 0$ 5,000.00$ - 0179 Fixed Cost$ 5,000.0075$ 5,000.00$ 3,900.00$ 8,900.00$ 6,000.00 150$ 5,000.00$ 7,800.00$ 12,800.00$ 12,000.00 Breakeven point (quantity)FC/Contribution per unit225$ 5,000.00$ 11,700.00$ 16,700.00$ 18,000.00 179per units300$ 5,000.00$ 15,600.00$ 20,600.00$ 24,000.00 Breakeven Point (value)BEP (quantity)*Sales Price375$ 5,000.00$ 19,500.00$ 24,500.00$ 30,000.00 $ 14,286450$ 5,000.00$ 23,400.00$ 28,400.00$ 36,000.00 Variable cost$ 9,286 Total Cost Fixed + vairable cost $ 14,286 Break even point is where sales and total cost meets Break Even Analysis Fixed Cost0751502253003754505000500050005000500050005000Variable cost07515022530037545003900780011700156001950023400Total Cost075150225300375450500089001280016700206002450028400Revenue075150225300375450060001200018000240003000036000