Bmgt 321 Chapter 13 Homework

2. What is the total cost? How much of the total cost are labor costs? Capital costs?

Why would you use http or ftp instead of bit torrent for downloading large files? == you would use ftp because it does not have client authorization needed, and you would use http because it connects directly to a server to download when with bit torrent uses more TCP connections which can be blocked by firewalls..

| 21 |LO 4 |Basis for inherited property: community property vs common law | |Unchanged | 21 |

3. If a cost is identical under each alternative under consideration within a given decision context, the cost is considered:

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

$135,000 $90,000 TOTAL REVENUE $3,136,500 $2,352,375 $1,568,250 Expences TOTAL VARIABLE COSTS $454,000 $340,500 $227,000 TOTAL FIXED COSTS $1,403,000 $1,403,001 $1,403,002 TOTAL EXPENSE BEFORE IT $1,857,000 $1,743,501 $1,630,002 EBIT $1,279,500 $608,874 -$61,752 Depreciation $320,000 $320,001 $320,002 EBITDA $1,599,500 $928,875 $258,250 Furnishing Interest $110,000 $110,000 $110,000 20yr Mortgage Interest $182,000 $182,000 $182,000 TOTAL INTEREST $292,000 $292,000 $292,000 TAXES (40%) $395,000.00 $126,749.60 -$141,500.80 Furnishing Principal $180,160 $180,160 $180,160 20yr Mortgage Principal $49,713 $49,713 $49,713 TOTAL PRINCIPAL $229,873 $229,873 $229,873 NET INCOME $362,627 -$39,749 -$442,124 DIVIDEND PAYMENT $29,010 -$3,180 -$35,370 RETAINED EARNINGS $333,617 -$36,569 EBIT/INTEREST 4.38 2.09 (0.21) EBITDA/INTEREST 5.48 3.18 0.88 BURDEN $675,121.67 $675,121.67 $675,121.67 EBIT/BURDEN 1.90 0.90 (0.09) ROE= Net Income/OE (H1) 32.97% -3.61% -40.19% Revenue Estimates Revenue Item 100% Monthly 75%

per year for 10 years and will have zero salvage value after 10 years of use. The widget maker

Cost drivers can be identified for each activity or cost category based on observation, discussions with management, simulations and statistical studies. The key is to determine the behavior of indirect costs with respect to activity or resource usage in each activity center (Leslie, 2009). These efforts have identified the eight cost drivers shown in Table 3.

For years 1983-1985, additional corporate assessment expense was given. This would lower Polymold’s earnings on their income statement. Another piece of data that was given is research and development expense. Without the CAD/CAM investment, research and development expense is $130,000. This is double to $260,000 without the CAD/CAM investment. This would lower earnings. We are also given the savings that the investment would yield. Without the CAD/CAM investment, there would still be savings – but not as much as with the CAD/CAM investment, which is due to the depreciation of the equipment and tax credits.

On the off chance that my family would be wise to information and comprehension of how costs set, I think we would have had more certainty when we expanded costs since ourselves would have known our clients were getting esteem and the confirmation that we were all the while going to make a benefit. Seeing how the cost of merchandise and administrations are land at, and the various types of costs included is essential in the touching base at the right price for productivity and also arranging and setting objectives for what's to come. I likewise came to value that a loss article can be any part of a firm, whether it be an administration, item or process and costs must be assigned to cost questions suitably to keep away from perplexity for chiefs. Administrators must have a sound learning and comprehension of the various types of expenses and the ways outputs are apportioned to items since it can be mind boggling and subject to the sort of business and kind of cost article included. Amid the section, I went over the inquiry "By what means may number make reality, instead of "just" reflect

(b) Calculate by how much the proposed addition will either increase or reduce operating income. Show all work.

3. Under the new activity-based costing (ABC) system, compute the indirect cost allocation rates for each of the three activities:

Ms. Ringer is largely supporting operations through her line of credit versus managing costs. In review of the operating costs, overhead and administration have increased by 8% from 2008-2011 or $116,870. In addition salary dollars continue to increase from 2008-2011 by $111,150 with no efforts to flex. The other expenses are staying steady in proportion to gross revenues. There may be opportunities in these areas however salaries and overhead is the greatest opportunity to scale back costs and contribute to increased net income and ultimately positive cash flows. Flexing salaries and benefit to 44% of gross revenue and reducing overhead and expenses to 10% of gross revenue is recommended for Ms. Ringer to increase net income to $152,956 and equity to $240,214 (exhibit Operating Statements-2012 proforma).

2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year 's net income for Matlocke Company?

The value added by this category is found by subtracting the value of raw materials and other inputs from the aggregate of commodity-wise output.