The Toy Company A toy company in business for seventy years has consistent sales of $20 million per annum. It has recently secured a contract with a television network allowing the toy company to create a board game from a phenomenally successful show. The toy company estimates sales will be $50 million in the first year, $20 million in the second year, and $10 million in the third year. Discuss some of the considerations the toy company should take into account when costing and pricing the new product.
Q: Thomas Martin receives an hourly wage rate of $25, with time-and-a-half pay for all hours worked in…
A: Gross pay Gross pay means the amount paid to the employees before all taxes and benefits. The Gross…
Q: what are the possible causes of favourable Wage rate variance
A: Labor or wage Rate variance: The labor rate variance measures the difference between the actual and…
Q: The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of…
A: Comment - Multiple Questions Asked. Partnership - A formal agreement between two or more persons who…
Q: Which statement is most accurate? Accounting and finance are not related. Financial managers…
A: Introduction:- The following are three main branches in accounting as follows:- Financial accounting…
Q: what are the possible causes of adverse Material usage variance
A: The variation in material consumption is determined as the difference between the quantity of actual…
Q: On December 31, the balance in the office supplies account is $1,225. A physical count shows $420…
A: Office supplies are current assets until they are used. It is an example of deferral adjusting…
Q: Hide student question Issue #11: Comparison of Returns on $200000 and 5.5% on$70,000 Investors,…
A: HISTORICAL RETURN EXPECTATION IS SIMILAR TO OR EQUAL TO 9% P.A. SAFEST INVETSMENT OPTION 5.5% on…
Q: Creative Solutions Company, a computer consulting firm, has decided to write off the $15,220 balance…
A: Under the direct method of accounts receivable, bad debt expense is recorded immediately when the…
Q: Apart from the internal audit and whistleblowing functions, what other mechanisms can assist…
A: There are various methods to tackle fraud. Listed below are explained as under- 1. Background…
Q: Exercise 11-21A (Static) Interpreting the effects of business liquidation on creditors and owners Lo…
A: Creditors are the current liability for the company. Creditors are the person to whom the company…
Q: a client currently using straight-line method for all depreciable assets acquires a new class of…
A: An adverse opinion is given when the financial statements are materially misstated and and do not…
Q: What is an example of a financial transaction? A firm purchases a fire insurance policy. An…
A: Financial transactions are those which involve money in them. These are the transactions which are…
Q: On June 8, Williams Company issued an $72,000, 7%, 120-day note payable to Brown Industries.…
A: The maturity amount of a bond is the total amount that the issuer of the bond has to pay in order to…
Q: On January 31, 2020 Fred has a 50,000 foreign currency denominated Accounts Receivable due in 1…
A: An account receivable is defined as it is money that has not been paid by customers after using the…
Q: Which of the following is a condition a taxpayer must meet to claim injuries spouse? The spouse: A.…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of…
A: Yes, the problem is solved with different fig. and proportions. Here is the new solved problem…
Q: If you invest $25,000 today, and make 24 withdrawals of $1,200 at the end of each month beginning in…
A: Solution: The correct option is b) 15.20% Detailed explanation: The initial Investment is $25000…
Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000…
A: Unamortized discount is the amount of discount on bonds payable which is not yet amorized as the…
Q: During 2022, Ash had the following cash receipts: Wages Interest income from U.S. Treasury bonds…
A: Gross income is comprised of your salary, dividends, capital gains, business revenue, retirement…
Q: After the accounts have been adjusted at January 31, the end of the year, the following balances are…
A: Closing Journal Entry : Closing journal entries are passed at the end of the accounting period. In…
Q: QUESTION 2 When eliciting requirements for the Analytics module of Georgezon.com you ask a…
A: The understanding in analysis of fact help to identify the possible relationship between the problem…
Q: com/ilrn/takeAssignment/takeAssi A business operated at 100% of capacity during its first month and…
A: VARIABLE COSTING Variable Costing is a Cost Managerial Accounting Method in Which all Variable…
Q: Pippen Co. recorded operating data for its shoe division for the year. Sales $1,000,000 Contribution…
A: The contribution margin is the excess of sales revenue over the variable costs. The controllable…
Q: Sunland Company expects to have a cash balance of $42,300 on January 1, 2022. Relevant monthly…
A: Cash budget estimates the cash inflow and cash outflow transactions of that specified period.…
Q: sset? 1,680 loss 1,680 gain 2,400 loss 2,400 gain
A: Answer : Value of assets at the time of sale = cost - accumulated depreciation =$24,000 -$21,600 =…
Q: (a) Notes receivable (b) Accounts receivable (c) Retained earnings (d) Sales (e) Operating expenses…
A: Since you have posted a question with multiple sub-parts we will do the first three sub-parts for…
Q: Cost of direct materials used in production Direct labor Factory overhead Work in process inventory,…
A: Cost of good manufactured = Beginning WIP+Total manufacturing costs incurred - Ending WIP Cost of…
Q: 6. Which statement is correct concerning interim financial reporting? I. An interim financial report…
A: Correct statement is II An Interim financial report may consist of a condensed set of financial…
Q: Prepare the statement of cash flows for Bowers Corporation for the year ended December 31, 20x2.…
A: Particulars Amount $ ('000) A. Cash flows from operating Activities cash received from…
Q: Find the amount (in $) of interest on the loan.
A: Loan is a liability of the company that is reported under the head non current liabilities in the…
Q: On July 20, 2021, the XYZ Corporation received subscription for 5,000 shares of its P10 par value…
A: Share capital means the amount of share that has been issued to shareholder . Share premium means…
Q: Audry has a debt of 335,150 with an interest rate of 5.65% for from the beginning of the month of…
A: Calculation of Interest using approximate time and exact interest method Principal (P) 335,150…
Q: A weakness associated with cost-based pricing methods is that they do not allow for primary…
A: The cost based pricing method is a method of pricing which is used to price the commodity face on…
Q: Sheffield Corp. estimates its sales at 200000 units in the first quarter and that sales will…
A: Given, Cash sales are 40%. Credit sales are 60%. (100%-40%) 70% of credit sales are collected within…
Q: For Waterway Industries, sales revenue is $600000, variable expenses are $432000, and fixed expenses…
A: The contribution margin ratio of a corporation can be calculated by dividing sales by revenue less…
Q: Question (1) 1 On 28/2/2021, Dr. Ali resigned from his work at one of the Jordanian universities…
A: The ESOP received are taxable under head salary. The salary and pension salary are to be shown on…
Q: 15. What is the cost of an investment in stock?
A: Buying stock to invest in means obtaining ownership stakes in publicly traded businesses. The little…
Q: 4. Average sale period 5. Operating cycle 104.06 x days 145.06 days
A: Requirement:-4 Calculation of average sales period as follows:-
Q: Ross corporation makes all sales on account. The June 30th balance sheet balance in its accounts…
A: 70% of sales of June are collected in June, hence the amount of $240,000 represents 30% of sales of…
Q: Considering the EOQ model, larger lots are justified with higher holding costs. O True O False CHCEM
A: EOQ is economic order quantity which helps to determine the order size to minimize the costs of the…
Q: Willamston Widgets has one fixed asset, which it purchased 5 years ago for $5,000,000. It has taken…
A: Solution.. Book value of fixed assets = Purchase price - accumulated depreciation =…
Q: what are the possible causes of favourable Material usage variance
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: The following are several items involving the cash flow activities of the Jones Company for 2019.…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: An employee earned $62,500 during the year working for an employer. The Federal Insurance…
A: Federal Unemployment Tax Act (FUTA): The federal unemployment tax is welfare scheme of a social…
Q: Theodore (67) and Jessica (59) are married wit
A: In California if yor are a legally blind then you are eligible for special…
Q: KA In order to form an opinion, the auditor shall conclude as to whether the auditor has obtained…
A: Step 1 Formation Of Auditor Report. The Audit Report is Prepared by the Auditor and it should be…
Q: Fishing Tours Ltd. is a 75% owned subsidiary of Boat Rentals Ltd. On January 1, 2012, Fishing Tours…
A: Please fallow the answer below: Solution: Consolidated adjustments are as fallows Interest…
Q: PROBLEM 1- Speed Corporation produces and sells a single product, a wooden hand loom for weaving…
A: Using absorption costing, the fixed costs are deferred in ending inventory due to fixed costs…
Q: Coles is a non-financial company operating a supermarket chain in Australia. During the week under…
A: Balance sheet shows the financial position of the company that includes the assets, liabilities, and…
Q: How much should be debited to Pre-operating Expenses account for the issuance of 2,000 shares of P10…
A: Shares means an instrument which shows that the share holder is the owner of the company . Share…
Ma3.
Please give only typed answer.
Step by step
Solved in 2 steps
- The Tamarind Inc. is considering the acquisition of a merchandise picking system to improve customer service. Annual cash returns on investment cost of P1.2 million is P220,000. Useful life is estimated at 8 years. The company’s cost of capital is 14% and income tax rate is 35%. Calculate Tamarind, Inc.’s payback reciprocal for this investment. 18.3% 22.2% 11.9% 20.5%WJW Ceramic Products Inc. leases plant facilities in which firebrick are manufactured. Because of rising demand, WJW could increase sales by investing in new equipment to expand output. The selling price of $2.50 per brick will remain unchanged if output and sales increase. Based on an engineering and cost estimates, the accounting department provides managers with the following forecast estimates based on an annual increased output of 400,000 bricks: Cost of new equipment having an expected life of five years $500,000 Equipment installation cost $20,000 Expected salvage value $75,000 Additional annual utility expenses $40,000 Additional annual labor costs $160,000 Additional annual cost for raw material $400,000 CCA 30% (50% rule applicable) of depreciation will be used, and taxes are paid at a rate of 40%. WJW policy is not to invest capital in projects earning less than 20% rate of return. SHOULD THE PROPOSED EXPANSION BE UNDERTAKEN?WJW Ceramic Products Inc. leases plant facilities in which firebrick are manufactured. Because of rising demand, WJW could increase sales by investing in new equipment to expand output. The selling price of $2.50 per brick will remain unchanged if output and sales increase. Based on engineering and cost estimates, the accounting department provides managers with the following forecast estimates based on an annual increased output of 400,000 bricks: Cost of new equipment having an expected life of ten years $500,000 Equipment installation cost $ 20,000 Expected salvage value $ 75,000 Additional annual utility expenses $ 40,000 Additional annual labor costs $ 160,000 Additional annual cost for raw material $ 400,000 CCA 30% (50% rule applicable) of depreciation will be used, and taxes are paid at a rate of 40%. WJW policy is not to invest capital in projects earning less than…
- A company purchases a component, which is critical in the production process, from an international supplier. Recently, quality problems with this component have increased. For this reason, managers of the company are considering of producing this part in-house. The economic life of the new production system will be 8 years. The savings and expenditures related to the new production system are given below. The MARR is 15%. According to the information, answer the questions from 8 to 9. Capital expenditures (Investment costs): Building: 500,000 TL Machines and equipment: 2,200,000 TL The annual saving from material and quality control: 5,000,000 TL Annual operating cost: 1,500,000 TL Annual income tax: 800,000 TL Salvage value: 1,500,000 TL 8. What is the discounted payback period of the new production system? A.Less than 1 year B.1 year C.between 1 and 2 years D.between 2 and 3 years 9. What is the net present worth of the new production system? A.9,415,000 TL…A software company that installs systems for inventory control using RFID technology spent $600,000 per year for the past 3 years in developing their latest product. The company optimistically hopes to recover its investment in 5 years on a single contract beginning immediately (year 0). The company is negotiating a contract that will pay $250,000 now and a to-beagreed- upon annual increase of a constant amount each year through year 5. How much must the income increase (an arithmetic gradient) each year, if the company wants to realize a return of 15% per year?Thomasville Furniture Industries offers several types of high-performance fabrics that are capable of withstanding chemicals as harsh as chlorine. A Midwestern manufacturing company that uses fabric in several products has a report showing that the present worth of fabric purchases over a specified 5-year period was $900,000. If the costs are known to have increased geometrically by 5% per year during that time and the company uses an interest rate of 15% per year for investments, what was the cost of the fabric in year 1?
- Toshovo Computer owns four production plants at which computer workstations are produced. The company can sell up to 40,000 computers per year at a price of $1500 per computer. For each plant, the production capacity, the production cost per computer,and the fixed cost of operating a plant for a year are given in the file P06_56.xlsx. Determine how Toshovo can maximize its yearly profit from computer production.A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. Use this information to solve, If 10,000 units per year are sold, what is the annual profit? (a) $280,000 (b) $50,000 (c) $150,000 (d) −$50,000 (e) $30,000. Select the closest answer.Desk company has a product that it currently sales in the market for $50 per unit. Desk has develop in new feature that, if added to existing product, will allow Desk to receive a price of $65 per unit. The total cost of adding this new future is $44,000 and Desk expects to sell 2,800 units in the coming year. What is the net effect on the next-year's operating income of adding the feature to the product?
- A software company that installs systems for inventory control using RFID technology spent $720,000 per year for the past 3 years in developing their latest product. The company optimistically hopes to recover its investment in 5 years on a single contract beginning immediately (year 0). The company is negotiating a contract that will pay $285,000 now and a to-be-agreed-upon annual increase of a constant amount each year through year 5. How much must the income increase (an arithmetic gradient) each year if the company wants to realize a return of 13% per year?QUESTION IS IN IMAGE Your company has been doing well, reaching $1.09 million in earnings, and is considering launching a new product. Designing the new product has already cost $513,000. The company estimates that it will sell 814,000 units per year for $2.99 per unit and variable non-labor costs will be $1.03 per unit. Production will end after year 3. New equipment costing$1.12 million will be required. The equipment will be depreciated to zero using the 7-year MACRS schedule. You plan to sell the equipment for book value at the end of year 3. Your current level of working capital is $301,000. The new product will require the working capital to increase to a level of $381,000 immediately, then to $400,000 in year 1, in year 2 the level will be $354,000, and finally in year 3 the level will return to$301,000. Your tax rate is 21%. The discount rate for this project is 9.8%. Do the capital budgeting analysis for this project and calculate its NPV.Note: Assume that the equipment is put…A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Limited, could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment Annual cost savings that will be provided by the equipment Life of the equipment $ 600,000 $ 100,000 12 years Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. 2b. Would the equipment be purchased if the company's required rate of return is 12%? Complete this question by entering your answers in the tabs below. ces Reg 1A Reg 18 Req 2A Req 28 Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment's useful life. (Round your answer to 1 decimal place i.e. 0.123 should be…