# "Jefferson Sports Medicine, Inc., offers two types of physical exams for students : the basic physical and the extended physical. The charge for the basic physical is $60, while the charge for the extended physical is$135 . Jefferson expects to perform 220 basic physicals and 190 extended physicals in July, 235 basic and 200 extended in August, and 105 basic and 110 extended in September . Prepa re the sales budget for the service revenue expected from the physical exams performed for the second quarter (July through September}, with a column for each month and for the quarter in total."

The sales budget

Jefferson Sports Medicine, Inc budgets sales budget (Amounts in $) Months Physical examination July August September Total Basic physical 13,200 14,100 6,300 33,600 Extended physical 25,650 27,000 14,850 67,500 101,100 Explanation: The sales expense shows the forecasted of sales from the various types of physical examination for a given period. These include the sales expected from Physical examination. The sales are the products of the charge per examination and the number of examinations conducted. It may be computed as follows; July; Physical examination =$60 * 220

= $13,200 Extended physical =$135 * 190

= $25,650 August =$60 * 235

= $14,100 Extended physical =$135 * 200

= $27,000 September =$60 * 105

= $6,300 Extended physical =$135 * 110

= $14,850 ## Related Questions In its first year of operations, Gomes Company recognized$28,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining$22,000 was received in cash from customers. The company incurred operating expenses of $15, 800. Of these expenses,$12,000 were paid in cash; $3, 800 was still owed on account at year-end. In addition, Gomes prepaid$2, 400 for insurance coverage that would not be used until the second year of operations. (a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the basis of accounting.
(b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

a. The first year's net earnings under the cash basis of accounting is $7,600 and the first year's net earnings under the basis of accounting is$12,200

b. Accrual basis of accounting provides more useful information.

Explanation:

a. In order to calculate the first year's net earnings under the cash basis of accounting we would have to use the following formula:

Cash basis net earnings = Service revenue (Cash) – Cash expenses – Prepaid expenses

Cash basis net earnings =$22,000 –$12,000 – $2,400 Cash basis net earnings =$7,600

In order to calculate the first year's net earnings under the the basis of accounting we would have to use the following formula:

Accrual basis net earnings = Service revenue – Operating expenses incurred

Accrual basis net earnings= $28,000 –$15,800

Accrual basis net earnings=$12,200 b. Accrual basis of accounting provides more useful information, because in this system revenues are recorded what actually earned and expenses are recorded what actually incurred for earning such revenues. Therefore, it gives better profit picture Crane uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost$11.00 each. During the month, the company made two purchases: 3100 units at $12.00 each and 12200 units at$12.50 each. Crane also sold 12700 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month

$151,673 Explanation: Average cost method calculate the cost of the inventory on the average price basis. Cost of goods sold is the cost of the goods sold in the given period. Description Units Rate Value Beginning Inventory 7,400$11.00                 $81,400 Purchases 3,100$12.00                $37,200 Purchases 12,200$12.50               $152,500 Total Inventory 22,700$11.94273128    $271,100 Sale 12,700$11.94273128    $151,673 Cost of Goods Sold =$271,100 x 12,700 / 22,700 = $151,673 Mila is helping to set performance targets for her company, Urban Supply. The target of increasing the company's online customer satisfaction rate by 1% in the next quarter is an example of a performance target focused on the customer perspective of the balance scorecard.a. true b. false ### Answers Answer: True Explanation: The balanced scorecard perspective implies that the company has to satisfy their customer through the provision of quality products and services. From the question, the target of increasing customers satisfaction is a good example of a performance target that is focused on customer's perspective of the balance scorecard. This means that the statement is true. The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X =$2,276,000 + $50/ unit; Company Z =$1,052,000 + $98/unit. The selling price is$145 per unit for both companies. Required: 1. Calculate the indifference point between the two cost structures, that is, the amount of unit sales that produce exactly the same operating income for Company X and Company Z.

Indifference point= 25,500

Explanation:

Giving the following information:

Company X = $2,276,000 +$50/ unit

Company Z = $1,052,000 +$98/unit

We need to find the indifference point where the two companies provide the same total cost.

We need to equal both cost equations:

2,276,000 + 50x = 1,052,000 + 98x

1,224,000 = 48x

25,500= x

x= number of units

To prove:

Company X = $2,276,000 +$50*25,500= $3,551,000 Company Z =$1,052,000 + $98*25,500=$3,551,000

You are evaluating two different silicon wafer milling machines. The Techron I costs $234,000, has a three-year life, and has pretax operating costs of$61,000 per year. The Techron II costs $410,000, has a five-year life, and has pretax operating costs of$34,000 per year. For both milling machines, use straight-line depreciation to zero over the projectâs life and assume a salvage value of $38,000. If your tax rate is 35 percent and your discount rate is 10 percent. Required: Compute the EAC for both machines. ### Answers T-1: Table-1 vide annex Applying EAC formula c = \frac{r(NPV)}{(1-(1+r)^{-n} )} c: equivalent annuity cash flow NPV: Net present value r: rate per period n: number of periods we have c =$ - 98 982,63

T-2

Table-2 vide annex

Applying EAC formula

c = \frac{r(NPV)}{(1-(1+r)^{-n} )}

c: equivalent annuity cash flow

NPV: Net present value

r: rate per period

n: number of periods

we have

c = - $97 511.17 A produce distributor uses 773 packing crates a month, which it purchases at a cost of$11 each. The manager has assigned an annual carrying cost of 33 percent of the purchase price per crate. Ordering costs are \$28. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ?

Explanation:

Using the EOQ Formula =  EOQ

D = Demand = 773

O = Ordering Cost =28

H = holding Cost = 11*33% =3.63

So we have :

EOQ=

EOQ=

EOQ=

EOQ=

EOQ= 109.20196

Previous per unit order cost = 28/773 =0.03622

No of Orders = D/o

No of Orders = 773/109.20196 =7.0786

Cost per order =109.20196*0.03622 =3.9555

Total order cost= 7.0786*3.9555=27.9998

At EOQ holding Cost is equal to Order Cost

New Order cost =27.9998

Holding Cost = 27.9998

New cost As per EOQ = 56

Previous (33+28)  =  61

Net Saving = 5