Reference no: EM134941
Q1) Myrna's Landscaping is a private company owned and operated by Myrna. It cuts lawns and weeds gardens. Myrna has found that she has greater success charging by the job rather than by the hour. She has collected the following data:
In a 40 hour week, and a four-week month, Myrna can work 160 hours.
Lawn Cutting Weeding
Myrna's charge per job $25.00 $25.00
Variable cost per job $20.00 $15.00
Average time per job 0.5 hours 1.25 hours
Monthly demand 200 125
How should Myrna allocate her time?
Q2) Erin of Ireland produces replicas of traditional Irish products. It's shillelagh division has reported the following:
Sales $1,000,000
Variable expenses 700,000
Contribution Margin 300,000
Fixed expenses
Salaries and wages $100,000
Insurance 60,000
Depreciation* 60,000
Advertising 100,000
Total Fixed Expenses 320.000
Net Operating Loss $(20,000)
*Two years remaining useful life, no salvage value, or current resale value.
If the division is dropped, the staff will be laid-off, with the exception of one person who will be assigned to another job. Her salary is $45,000. Should the division be dropped?
Q3) Goodguys Ltd. makes pens. Its per unit costs are given below:
Direct Materials $ 2.50
Direct Labour 1.50
Variable manufacturing overhead 1.00
Fixed traceable manufacturing overhead 1.50
Fixed common manufacturing overhead 5.00
Unit production cost $11.50
Goodguys Ltd. sells the pens for $20,00 each. A local school wants to give each student in its graduating class a pen this year with the school's name printed on it. The school is willing to pay $10,00 per pen for 100 pens. To put the school's name on the pen will require an additional cost of $.75 per pen. Goodguys Ltd. has excess capacity, and the pens could be made without affecting the fixed traceable manufacturing overhead. Should Goodguys Ltd. accept the offer?
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Evaluate exchange rate
: What exchange rate should each of the subsequent accounts be translated
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Evaluate free assets
: For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $170,800?
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How much money will be paid to creditor associated with debt
: How much money will be paid to the creditor associated with each debt. Salary during last month owed to Mr. Key Salary during last month owed to Ms. Rankin Unsecured accounts payable Government claims to unpaid taxes Administrative expenses
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Determine breakeven point in units at current sale price
: Which of the following is the excess of the selling price per unit of a product over the variable cost of obtaining and selling each unit. Determine the breakeven point in units at the current sale price
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Should goodguys ltd. accept the offer
: The division is dropped, the staff will be laid-off, with the exception of one person who will be assigned to another job. Her salary is $45,000. Should the division be dropped?
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Probability of audit
: Probability of Audit - What judicial concept might the IRS invoke to question this transaction
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Prepare a 2012 tax return
: Prepare a 2012 tax return using the following information. Forms 1040, Schedule A, Schedule B, Schedule C, Schedule SE (only need to complete page 1), Form 4562.
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Evaluate the basis of each shareholders stock
: Evaluate the basis of each shareholder's stock in the new corporation. Determine the basis of each property in the hands of the corporation.
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Prepare absorption and contribution margin income statements
: Prepare absorption and contribution margin income statements for the succeeding quarter for the division. Compute production costs per unit for both approaches and for both quarters.
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