Managerial Accounting

Van Roekel Company sells a single product. The product has a selling price of $100 per unit and variable expenses of 80% of sales. If the company's fixed expenses total $150,000 per year, what will the break even point be? My answer must be given in dollars and units. Truesdale Company sells hand crafted furniture. One item it sells is a foot stool which sells for $30 per unit. The variable cost related to the stool, including product and shipping costs, are $18 per unit. Total fixed cost for the company are $60,000. Assuming the stools are the only product the company sells this year, draw a CVP graph to represent the company's sales and expenses. From this graph, compute the app... click for more

How much would you be willing to pay for this bond?

A bond has par value of $1,000 and has a coupon rate of 14% with 20 years to maturity. If the required return (or market rate) is only 12%, how much would you be willing to pay for this bond?

Will this bond sell at par, a discount or a premium?

If a bond has a coupon rate of 8% but the required rate (market rate) is 10%, will this bond sell at par, a discount or a premium?

Why would the Work in Process account no longer be used?

Your company is considering switching to a Just in Time inventory method. Why would the Work in Process account no longer be used?

Financial Assistance

1. The budget committee has received the following projects. They are mutually exclusive. The Company uses 10% as the rate of return. Year Project A Project B 0 - 30,000 - 60,000 1 10,000 20,000 2 10,000 20,000 3 10,000 20,000 4 10,000 20,000 5 10,000 20,000 Total +20,000 + 40,000 NPV: +7,910 +15,820 Payback (Solve) Which project would you recommend first and why?