Proctoring Enabled: Chapter 2 Quiz 4 Mc Graw Saved Help Which one of the following would not be included in a "manufacturing OH cost pool"? Multiple Choice insurance on production machinery labor cost of production supervisors shop supplies cost of delivering finished goods to customers Prou 010 00:17:34
Answers
Manufacturing OH Cost Pool Manufacturing overhead cost pools, as the name suggests, are formed by grouping similar types of overhead costs together. The rationale behind forming such pools is to facilitate more accurate allocation of overhead costs to products.
In case overheads are directly attributed to items, the costs are referred to as 'variable overhead.' When they cannot be attributed directly, they are referred to as 'fixed overhead.'So, the costs that would not be included in a "manufacturing OH cost pool" are those that are not categorized as overhead costs.
The correct option among the given alternatives is "cost of delivering finished goods to customers."Cost of delivering finished goods to customersThis cost is categorized as a selling cost or an administrative cost rather than a manufacturing overhead cost. It's because the cost is incurred after the product has been manufactured.
Hence, it should not be included in a manufacturing OH cost pool.Here's a brief on the other options mentioned:Insurance on production machinery: It's a manufacturing overhead cost.Labor cost of production supervisors: It's a manufacturing overhead cost.Shop supplies cost: It's a manufacturing overhead cost.I hope this helps!
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Related Questions
Dan is the CEO of a company and is considering a new project that, if accepted, would add $1 million to the value of the company's equity. If Dan decides to proceed with the project, he realizes that he will have to work 8 extra hours each week for one year, the value to him of losing this leisure time is $51,000. Assume that his salary will not be adjusted to reflect this extra work and that the net benefit to him is his only consideration in deciding whether or not to proceed with the project. a. What would his decision be if he owned 100% of the company's equity? b. What would his decision be if he owned 1% of the company's equity? c. What would his decision be if he owned 3% of the company's equity and the Board of Directors promised him a bonus of $25,000 if the company's equity value was increased by $50,000 or more? d. Suppose Dan owned 3% of the company's equity and the Board of Directors promised him a bonus of $25,000 if the company's equity value was increased by $50,000 or more. Assume that accepting the project no longer adds $1 million to the company's equity value, but rather increases the equity value by $X. How high must X be for him to accept the project? e. Evaluate the results in parts a to c in the context of the principal-agent problem.
Answers
a. If Dan owned 100% of the company's equity, his decision would be to proceed with the project since the $1 million increase in equity value outweighs the value of his lost leisure time.
b. If Dan owned 1% of the company's equity, his decision would be to not proceed with the project since the $10,000 increase in equity value is less than the value of his lost leisure time.
c. If Dan owned 3% of the company's equity and was promised a bonus of $25,000 for a $50,000 or more increase in equity value, his decision would be to proceed with the project since the total benefit to him, including the bonus, outweighs the value of his lost leisure time.
d. If Dan owned 3% of the company's equity and was promised a bonus of $25,000 for a $50,000 or more increase in equity value, the minimum required increase in equity value, X, for him to accept the project would be $834,000.
When Dan owns 100% of the equity, the $1 million increase in equity value is solely beneficial to him, outweighing the $51,000 value of his lost leisure time.
If Dan only owns 1% of the equity, the $10,000 increase in equity value is insufficient to compensate for the $51,000 loss of leisure time.
With 3% ownership and the promised bonus, Dan would consider the total benefit from the project. Even though the equity value increase is only $30,000 (3% of $1 million), the additional $25,000 bonus makes the project financially beneficial.
To determine the minimum required increase in equity value, X, we subtract the $25,000 bonus from the total required increase of $75,000 ($50,000 + $25,000). With a 3% ownership, Dan would need the project to increase the equity value by at least $834,000 ($75,000 / 0.03) to justify accepting it.
The principal-agent problem arises in scenarios b and c where Dan's decision-making is influenced by his ownership stake and potential bonus. In scenario b, his decision aligns with his personal interest but not the interest of other shareholders. In scenario c, the promised bonus incentivizes him to proceed with the project despite a lower equity value increase, which may not be in the best interest of other shareholders.
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True or False. After completing a test or quiz, students can view the submission details in My Grades.
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The statement "After completing a test or quiz, students can view the submission details in My Grades" is true because My Grades is a feature commonly found in Learning Management Systems (LMS) used by educational institutions to manage student performance data.
After completing a test or quiz in an LMS, students are often able to view their grades and submission details for that assessment through the My Grades section of the platform.
The My Grades section typically provides students with a detailed breakdown of their performance on each assessment item, such as the score achieved, feedback provided by the instructor, and any additional comments or annotations. This information can help students identify areas for improvement and track their progress over time.
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Analysis reveals that a company had a net increase in cash of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was:
Answers
The beginning cash balance of a company for the condition as given above will be around $4,000 for the current year.
What is cash balance?The amount of cash available in the balance sheet of the company during a given period is known as the cash balance of the company. The balance at the start of the current year is known as beginning cash balance.
Using the formula and the given information, the beginning cash balance can be computed as,
Beginning Cash Balance = Year end Cash Balance – Net Increase
Beginning Cash Balance = $(24,000-20,000)= $4,000
Hence, option A holds true regarding the beginning cash balance. The complete question has been added in the image for better reference.
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it is cheaper for a cable company's customers to sign up for a package that includes cable, internet, and phone service than for them to purchase each of these services individually. this is an example of
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It is cheaper for a cable company's customers to sign up for a package that includes cable, internet, and phone service than for them to purchase each of these services individually. This is an example ofis an example of product-bundle pricing.
Purchasing is the technique that includes commercial enterprise or organization makes use of to acquire items or offerings to accomplish its dreams.
Although there are several agencies that try and set requirements for the shopping procedure, methods can range substantially among businesses.
Kind of purchases :
Private Purchases.Mercantile purchasing. Business shopping.Purchasing is becoming a middle competency of the firm, locating and growing providers and bringing in expertise that is notably valued through the company. Buying is normally responsible for spending greater than 50 percent of all of the sales the firm receives as income from income.
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what is decision table in system analysis and design course hero
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A decision table in the context of system analysis and design is a structured tool used to document complex business rules or decision-making processes.
A decision table consists of rows and columns, where each row represents a unique combination of conditions, and each column represents a specific action or outcome. The conditions are typically defined as a set of rules or criteria that determine the course of action to be taken, while the actions or outcomes represent the different results or actions associated with the conditions.
The purpose of using a decision table is to provide a clear and concise representation of complex business logic or decision rules. It helps in identifying all possible scenarios and ensures that every possible combination of conditions and actions is considered. Decision tables are particularly useful in business rule analysis, validation, and verification, as they provide a structured and systematic approach to analyzing complex decision-making processes.
By using a decision table, system analysts can effectively communicate and document business rules and decision logic, which in turn can be used as a basis for system design, development, and testing. Decision tables enhance the clarity, accuracy, and traceability of business rules, making them an important tool in system analysis and design processes.
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The correct question is:
What is the decision table in system analysis and design?
What is the NPV of a project with an initial investment of $95, a cash flow in one year of $107, and a discount rate of 6%? Be sure to record the initial investment as a negative number
Answers
The NPV of the project is $196.13. To calculate the Net Present Value (NPV) of a project, we need to discount the future cash flows to their present value and subtract the initial investment.
Given:
Initial investment: -$95 (negative because it represents an outgoing cash flow)
Cash flow in one year: $107
Discount rate: 6%
To calculate the present value of the cash flow in one year, we divide it by (1 + discount rate):
PV = Cash Flow / (1 + Discount Rate)
PV = $107 / (1 + 0.06)
PV = $101.13
Now we can calculate the NPV:
NPV = PV of Cash Flow - Initial Investment
NPV = $101.13 - (-$95)
NPV = $101.13 + $95
NPV = $196.13
Therefore, the NPV of the project is $196.13.
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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
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When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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The demand side of economic policy, refers to the actions undertaken by a nation's central bank to control money supply to maintain economic growth. This is an example of
Inflation
monetary policy
Debt management
Loans
Answers
Answer:
The perspective of economic policy that focuses its efforts to follow a national central bank when it wants to make sure money supply is regulated to achieve a continuous economical positive development is an example of:
monetary policy
Explanation:
The reasons behind this answer are that monetary policy is the concept used to represent the efforts of a certain monetary organization to make sure the interest rates are set in the best scenario to enable borrowers to pay their debts. Pointing to a scenario of economical and monetary stability that would support the country in times of economical distress.
speech about peer pressure
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Have a peer pressure filled day (jk btw lol)
Self-esteem, generalized self-efficacy, neuroticism, and locus of control comprise _______________.
Answers
Self-esteem, generalized self-efficacy, neuroticism, and locus of control comprise Core Self-evaluation.
The personality trait of neuroticism has been regarded as being essential in the study of psychology. According to the Big Five theory of personality traits, for instance, those who score highly on the neuroticism scale are more prone than the average to be moody and to feel emotions like worry, anxiety, wrath, irritation, envy, and jealously, as well as guilt, a low mood, and loneliness.
Such individuals are supposed to react more negatively to pressures and to regard commonplace events, including mild disappointments, as being impossibly challenging. They are said to struggle with impulse control and delayed pleasure. It also frequently introverted and self-conscious. High neuroticism index scores are associated with an increased risk of common mental illnesses, mood disorders, and anxiety disorders.
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What's time based management?
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when a wholesaler sold a product at $40 per unit, sales were 330 units per week. after a price increase of $5, however, the average number of units sold dropped to 305 per week. assuming that the demand function is linear, what price per unit will yield a maximum total revenue?
Answers
The price that maximizes revenue is $37 per unit. Given that a wholesaler sold a product at $40 per unit, sales were 330 units per week. After a price increase of $5, however, the average number of units sold dropped to 305 per week.
The formula for the demand function is Q = a - bp
WhereQ is the quantity of products sold, a is the quantity demanded at zero price, b is the slope of the demand function, and p is the price of the product.
Using the given values of price, units sold per week, and the increase in price, we can calculate the values of a and b as follows: a = 330 + 40b = -5
Substitute the above values in the demand function Q = a - bp305 = (330) - 5p
Solve for p305 = 330 - 5pp = 5.
The price per unit that will yield a maximum total revenue is $45. Since the demand function is linear, the maximum total revenue is achieved at the midpoint of the interval between the two extreme values. The price interval is $40 to $45, with midpoint being $42.5.
The total revenue function is:
R = pQ = p(a - bp)
R = p(330 + 40 - 5p)
R = 330p + 40p - 5p²
R = -5p² + 370p
The maximum revenue will be obtained at the price p that maximizes the revenue function R(p). Therefore, the maximum revenue is R(p) = -5p² + 370p.
The maximum value of this function occurs at p = -b/2a = -370/(2*-5) = 37
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In business communication, the main purpose of a 10-K report is to? 1. inform.2. persuade.3. build goodwill.4. build an image.5. maintain a record.
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In business communication, the main purpose of this promote goodwill report's primary goal is to inform, and its secondary goal is to advance goodwill. The correct answer is 3. build goodwill.
Promoting goodwill is a strategy for fostering feelings of positivity and understanding between individuals, groups, and companies. It's frequently seen as a crucial stage in developing long-lasting connections and networks.
Several strategies can be used to promote goodwill, including as customer service, philanthropic work, community service, and marketing initiatives. The main goals of sending business messages are to inform recipients, foster goodwill, influence them to take action, and establish connections and networks.The report educates readers about the company's charity endeavours by disclosing information about its attempts to give back to the community. The report also contributes to the promotion of goodwill towards the Company and its mission by emphasising these efforts.
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seattle adventures, incorporated, is trying to decide between the following two alternatives to finance its new $17 million gaming center: issue $17 million, 6% note. issue 1 million shares of common stock for $17 per share with expected annual dividends of $1.02 per share.
Answers
1) The completion of the income statement for Seattle Adventures, Incorporated for the year is as follows:
Seattle Adventures, Incorporated
Income Statement (completion)For the year
Issue Note Issue Shares
Operating income $9,200,000 $9,200,000
Interest expense (on the issued note) 1,020,000 0
Income before tax $8,180,000 $9,200,000
Income tax (30%) 2,454,000 2,760,000
Net income $5,726,000 $6,440,000
Number of shares 2,200,000 3,200,000
Earnings per share (net income/number) $2.60 $2.01
2a) Interest expense will be higher by $1,020,000 with the note issuance.
2b) Dividends will be higher by $1,020,000 with the stock issuance.
2c) The issuance of the notes results in higher earnings per share than the issuance of the stock.
How the earnings per share are computed:Notes Payable = $17 million
The annual interest rate on the notes payable = 6%
Total annual interest expense = $1,020,000 ($17 million x 6%)
Earnings per share = Net Income/Number of Common Stock outstanding
= $2.60 ($5,726,000/2,200,000)
Common stock = $17 million (1 million x $17)
Annual dividend per share = $1.02
Total annual dividends = $17,340,000 (17 million x $1.02)
Earnings per share = $2.01 ($6,440,000/3,200,000)
Thus, based on the earnings per share results, Seattle Adventures, Incorporated should issue the notes instead of issuing stock.
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Question Completion:Required: 1. Assuming the note or shores of stock are issued at the beginning of the year, complete the income statement for each alternative.
Outstanding number of common stock shares = 2,200,000
Operating income = $9,200,000
Income tax rate = 30%
2. Answer the following questions for the current year, (a) How much are interest payments higher if issuing the note? (b) How much are dividend payments higher by issuing stock? (c) Which alternative results in higher earnings per share?
Assignment Directions: Research some examples of organizations that experienced bad publicity and how they dealt with it. Write a paper detailing what you find. Assignment Guidelines: Your response should be at least 500 words in length. It must include citations for your references. It should have paragraphs of introduction and conclusion.
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An example of an organization that experienced bad publicity is United Airlines, which faced a public backlash after a video of a passenger being forcibly dragged off a flight went viral in 2017.
What are examples of organizations that experienced bad publicity and how they dealt with it:Another example of an organization that faced bad publicity is Nike, which received criticism for using sweatshop labor in the 1990s. In response, Nike began implementing measures to improve working conditions in its factories, including increasing wages and implementing codes of conduct for suppliers.
Nike also launched a public relations campaign to address the issue and began publishing reports on its progress towards improving working conditions. Today, Nike is recognized as a leader in sustainable and ethical manufacturing practices, and its response to the initial bad publicity helped to rebuild its reputation and regain the trust of consumers.
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concerning a corporate bond, which of the following features can change over time? a. bond price. b. par value. c. how frequently coupon payments are made. d. date the bond matures. e. coupon rate.
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The correct answer is e. coupon rate.
A corporate bond is a debt security issued by a corporation to raise capital for various business purposes. It has a fixed maturity date and pays a fixed interest rate (coupon rate) to its investors.
While the bond price and par value of a corporate bond may fluctuate over time due to changes in interest rates or the company's financial performance, the frequency of coupon payments and the date the bond matures are fixed at the time of issuance. However, the coupon rate of a corporate bond may change over time, particularly if the bond was issued with a variable or floating-rate coupon.
This means that the interest rate paid to investors can be adjusted periodically based on changes in a specific benchmark interest rate or other market conditions.
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Corporate bonds have several features that are typically established at the time of issuance, but some may change over time. The Correct Option is E
The bond price is one of the most important features that can fluctuate based on various market factors. The frequency of coupon payments may also be subject to change, depending on the bond's terms. The coupon rate, which determines the amount of periodic interest payments, may be fixed or variable, and variable rates can change over time.
However, the par value and maturity date are typically fixed at the time of issuance and do not change over the life of the bond. As an investor in corporate bonds, it's important to understand these features and how they may affect the bond's overall return.
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Helena has always loved children and worked hard to become an elementary school teacher. Her family does not like this career because it traditionally does not pay a lot of money. Helena is determined to stay on her career path. What could Helena do to make sure she is secure financially?
Answers
Answer:
listen to her family and choose another career
Explanation:
Hope this helps! Please let me know if you need more help or think my answer is incorrect. Brainliest would be MUCH appreciated. Have a wonderful day!
Answer:
She could invest the spare money she has, and minimize her cost of living to save as much money as possible.
She could also try to do tutoring on the weekends to make sure extra money.
On august 1 of year 2, a company paid cash to purchase prepaid rent. the december 31st adjusting entry will ______.
Answers
The December 31st adjusting entry will decrease assets, net income and stockholders' equity
What is prepaid rent?
Prepaid rent means rental fees paid in advance, for instance, rent expense for December paid for in October, which requires that we credit cash account because of the reduction in cash balance and the prepaid rent account is debited since rent paid in advance is an asset and increase in asset has a debit entry.
The December 31st adjusting entry will decrease assets, the prepaid rent since a portion of the rent would have been used then and would also decrease net income, because the portion of prepaid rent is released to income statement which also decreases stockholder's equity because the retained earnings would be lower
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Marcus set a goal to buy a used car in the next few months. He plans to make a $2,500
down payment and has already saved $1,300. If he can save $150 each month for this goal
to buy a car, how long will it take him to save the entire $2,500?
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Why is it important for a person to invest and save
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Hope that answered your question :)
Which is considered part of a person’s income for the year?
Answers
Answer:
Gross income is everything that an individual earns during one year, both as a worker and as an investor. Earned income includes only wages, commissions, bonuses, and business income, minus expenses, if the person is self-employed.
Explanation:
In order to leverage social media ads, where you choose to advertise your product/service should also be based on your target audience and what is __________ amongst that audience.
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In order to leverage social media ads, where you choose to advertise your product/service should also be based on your target audience and what is relevant and engaging to them.
By analyzing their demographics, interests, and online behaviors, you can identify the social media platforms or channels that align with their preferences. This ensures that your ads are seen by the right people, in the right context, maximizing their relevance and impact.
Additionally, staying attuned to trending topics, popular hashtags, and viral content within your target audience's online communities allows you to tap into what is currently captivating their attention.
By combining audience insights with relevant content, you can create compelling ad campaigns that drive engagement, increase brand visibility, and ultimately yield positive results.
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What effect has the twenty-four-hour news cycle had on journalism in America? O Stories may not be as heavily researched and vetted. O Higher levels of political news are reported. O There is an increase news aggregation. O Journalists often face conflicts of interest.
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The twenty-four-hour news cycle has had a significant impact on journalism in America. On the positive side, it has led to higher levels of political news being reported and a greater focus on breaking news.
However, this constant need to produce content quickly has also had some negative consequences. Stories may not be as heavily researched and vetted as they were in the past, leading to inaccuracies and errors in reporting.
Furthermore, there is an increase in news aggregation, with news outlets often repeating the same stories over and over again. This can result in a lack of diversity in news coverage and a failure to cover important issues that may not generate as much immediate interest.
Finally, journalists often face conflicts of interest as they try to balance the need to report news quickly with the need to maintain their credibility and impartiality. They may be tempted to report sensational stories or to prioritize stories that will generate more clicks or views, even if those stories are not as important or accurate.
Overall, while the twenty-four-hour news cycle has brought some benefits to journalism, it has also created some challenges that journalists and news organizations must navigate carefully.
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Which type of account (real, personal, or nominal) includes the following expenses of a business?
Expenses like rent, transportation, and advertising are part of a business’ ______
account, because they are fictitious.
Answers
Answer: Nominal account
Explanation:
Expenses like rent, transportation, and advertising are part of a business (Nominal) account, because they are fictitious.
Personal accounts are the accounts that have to do with individuals, or businesses. A real account is an account that isn't closed when the accounting period ends. The bqlnaces in the real account are carried to the following period. An example of this is cash.
Nominal account is an account that has a zero beginning balance at the start of the year. This is because when an accounting year ends, the nominal account will be closed.
can be in form of a written summary of the findings of a required investigation or a particular problem
A) presentation
B) itinenaries
C) reports
D) notices
Answers
required informationskip to questionassignments and delegations introduction read the overview below and complete the activities that follow. contracts are typically private agreements in that they bind the two parties and no one else. thus, parties not in privity of contract usually do not have rights to a contract. however, there are exceptions to the general rule. this activity outlines the importance of paying special attention to ramifications that result from assigning or delegating a contract, including the effects these actions have on assignees. concept review: contracts create situations in which both parties have a duty to perform the agreed-on action and a right to be the recipient of the other party's duty. these rights and duties can be transferred to third parties. the transfer of rights is known as assignment; the transfer of duties is known as delegation. mini-case: read the case and then answer the questions to create a strategy for how someone might determine the results of the scenario. katerina owned property in miami right on the beach that she leased to scotty. scotty used the property for business purposes, which was allowed under the lease. three months into the lease, scotty transferred his lease to a sports agent company for $5,000, which became the new tenant under the lease. katerina became upset with scotty's transferring of the lease because she thought that since she leased the property to scotty, he should not be allowed to let anyone else lease the property. furthermore, she had a strong aversion to sports agents after watching the movie jerry maguire, and she did not want any money-grubbing sports agents working on her property. subsequently, katerina wonders whether there is any way she can limit the ability of scotty to transfer the lease. walk through the different types of transferring of rights and duties. what type of transfer of rights or duties is described in this case? what is the role of the relevant parties in the case? katerina clearly does not like the transfer of the lease. are there any factors that could limit the transfer of these rights or duties?the scenario above is an example of what legal concept?multiple choicevesting of rightsdelegationassignment
Answers
This scenario is an example of an assignment in contracts. Assignment is a legal concept that involves the transfer of rights from one party to another. In this case, the transfer of rights occurred when Scotty transferred his lease to a sports agent company for $5,000, making them the new tenant under the lease.
Katerina, the lessor, was not pleased with the transfer of the lease and has the right to challenge it. However, Katerina's challenge must be based on legal grounds and not simply on the fact that she has an aversion to sports agents. Depending on the specific language of the lease agreement, Katerina may be able to challenge the assignment based on clauses which limit assignment of the lease, as well as any other clauses which would not be valid had the lease been assigned.
There are also factors that could limit the transfer of rights or duties in this scenario. For instance, the assignment may not be enforceable if the lease itself does not permit assignment. Additionally, the parties of the contract must be in agreement and in good faith for the assignment to be valid. If either of these conditions are not met, the assignment may be void.
In conclusion, this case is an example of an assignment of rights in contracts. Katerina has the right to challenge the assignment, though her challenge must be based on legal grounds. Furthermore, there are certain factors that can limit the assignment, such as the presence of clauses limiting assignment and the requirement that both parties agree and act in good faith.
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What are two ways to postpone repayment of a student loan?
Answers
There are two ways to postpone repayment of a student loan, and they are explained below:
1. Deferment: It is a way to pause your student loan repayment for a certain period of time if you're unable to make payments. Deferment is only available for federal student loans in certain cases. To be eligible for a deferment, you must meet specific criteria, which may include being enrolled at least half-time in school, serving in the military or Peace Corps, or undergoing financial hardship, among other factors.
2. Forbearance: This is another alternative for temporarily delaying or reducing your student loan payments. Forbearance is available to both federal and private student loan borrowers.
To be eligible, you must demonstrate financial hardship, medical expenses, or a similar circumstance that makes it impossible to make payments temporarily. While forbearance postpones your loan payments, interest accrues and you will be required to repay the accrued interest once the forbearance period ends.
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1 point
Danny receives a salary of $660 a month and a 7.5% commission on all
sales above his monthly quota of $15,000. His sales for the month totaled
$32,000. What was his gross income for the month? *
$3,060
$1,275
$2,400
$1,935
Answers
Answer:
1935
Explanation:
32,000-15,000 = 17,000
17,000 x 0.075 = $1275 (this is his commission)
1275 + 660 = $1935
$1935 is his gross income for the month
according to obra, what is the minimum number of employees required to constitute a large group?
Answers
According to Obra, a minimum of 100 employees is required to constitute a large group.
Small groups include businesses with two to fifty full-time employees. For major organizations, more than 50 individuals work full-time.
Businesses with less than 200 employees frequently mandate that all parents enroll their kids. Part-time employees are not eligible for group health insurance. Even so, you can be qualified for employee health insurance if your company has less than 7 employees, but the bulk of them are employed part-time.
Small company health insurance is only available to businesses with between one and 50 employees. It qualifies as a small business for the purpose of receiving group health insurance. If you have more than 50 employees, you should apply for huge group insurance.
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Matthew Hewitt is the owner of Exclusive Gaming Tables. He rents a workshop at a cost of $450 per week. The timber for each table costs $45 and stain costs him $15 per table. Hewitt is thinking of selling the gaming tables for $150 each.
a What are Hewitt's total fixed costs per week?
b What are the total variable costs per gaming table?
c. Calculate the contribution margin per table.
d How many gaming tables does Hewitt have to sell in a week to break even?
e. How many gaming tables would Hewitt have to sell in a week to eam a profit of $1000?
f Prepare income statements to prove your answers to parts d and e.
Answers
Hewitt's total fixed costs per week amount to $450. The total variable costs per gaming table are $60 ($45 for timber + $15 for stain), contribution margin per table is $90, Hewitt needs to sell 5 gaming tables and Hewitt would have to sell 12 gaming tables in a week to achieve a profit of $1000.
a) Fixed costs are costs that do not change with the level of production. In this case, Hewitt's total fixed costs per week are $450, which represents the cost of renting the workshop.
b) Variable costs are costs that vary with the level of production. The total variable costs per gaming table are $60, calculated as $45 for timber and $15 for stain.
c) The contribution margin per table is the difference between the selling price and the variable costs. In this case, the contribution margin per table is $90, calculated as $150 selling price - $60 variable costs.
d) To break even, Hewitt's total contribution margin needs to cover his fixed costs. Since the contribution margin per table is $90 and the fixed costs per week are $450, Hewitt needs to sell 5 gaming tables in a week to cover his fixed costs.
e) To earn a profit of $1000, Hewitt's total contribution margin needs to exceed the fixed costs by that amount. With a contribution margin per table of $90, Hewitt would have to sell 12 gaming tables in a week to achieve a profit of $1000.
f) Income Statement for Break-Even (d):
Revenue: 5 tables x $150 = $750
Variable Costs: 5 tables x $60 = $300
Contribution Margin: $750 - $300 = $450
Fixed Costs: $450
Profit/Loss: $450 - $450 = $0 (Break-even)
Income Statement for $1000 Profit (e):
Revenue: 12 tables x $150 = $1800
Variable Costs: 12 tables x $60 = $720
Contribution Margin: $1800 - $720 = $1080
Fixed Costs: $450
Profit/Loss: $1080 - $450 = $630 (Profit of $1000)
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