A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he has three labours and he paid k6000 as wages for the three labourers, he does not have a building of his own, and paid k200 as rental fees. The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He inputed k2000 in january and k1500 in february. using the information given above compute; i. Accounting Profit for the carpenter ii. Economic profit for the carpenter daenvete 0 20 tantrice

A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he has three labours and he paid k6000 as wages for the three labourers, he does not have a building of his own, and paid k200 as rental fees. The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He inputed k2000 in january and k1500 in february. using the information given above compute; i. Accounting Profit for the carpenter ii. Economic profit for the carpenter daenvete 0 20 tantrice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume that a carpenter borrowed $2,000 to be paid offin a year to finance a machine that would make him workfaster. As a result, she is able to take on more projects andcollect $400 more earnings in the first year, after paying offthe principal of $2,000. However, there is a 15% rental fee(interest) on her loan, which she also has to pay off. Whatis the carpenter’s net earnings for the first year? (Roundyour response to the nearest dollar.)
A contractor has a job which should be completed in 100 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 130 days. Of the 80 men, 50 are each paid ₱ 120.00 a day, 25 at ₱ 180.00 a day, and 5 at ₱ 250.00 a day. For each day beyond the original 100 days, the contractor has to pay ₱ 500.00 liquidated damages.
John got a new job through Island Recruiting Company.The job pays $55K per year, and the agency fee is equal to 30% of 1 month’s pay.How much must the employer pay the agency?
A building constructor has a contract which will expire in 50 days. He has 80 men on the job and can finish the job in 80 days. The wage per day of 40 men is P800.00 each and that of the other 40 men is P500.00 each for 8 hours work per day. The fine or liquidated damages for delay in the work is P15,000.00 per day. How many more men should the contractor add in order to enable him to complete the work on time? Assuming that the additional men to be added will be paid P500.00 per day, will the contractor save money by employing enough men for him to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any? No overtime work is permitted
Jason Searcy buys a condominium for $96,200. He makes a 5% down payment, and pays these closing costs: property survey, $315; insect inspection, $190; legal fees, $525; and title insurance, $225. a. What is the down payment amount? b. What are the total closing costs? c. What is the total cash amount needed to buy the condominium?
Shurgurado Lhines is a dealer of cleaning materials. If it pays PhP1,875 for the vacuum cleaner and sells each at PhP4,499.50. a What is the percent markup based on selling price? b. Shurgurado Lhines decided to give a 1-year Product Replacement Policy amounting to PhP399.50. If it pays PHP75.00 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination? If 6,000 vacuum cleaners are sold in a season and 40% are sold with the insurance policy, how many additional "markup amount," (the gross margin), was made by offering the policy? Continuing with the information from letter c, compare the total markup amount of Shurgurado Lhines on: i. C. d. Vacuum cleaners only Combination of vacuum cleaner and policy replacement offer e. As Operations Manager for Shurgurado Lhines, what is your opinion on offering such replacement policy considering their effect on the "profit picture" of the…
a man purchased a car with a cash price of 350,000.00 He was able to negotiate with the seller to allow him to pay only a down payment of 20% and the balance payable in equal 48 end of the month. On the day he paid the 20th installement, he decided to pay the remaining balance. How much is the monthly payment? what is the remaining balance that he paid?
An engineer started a home service air-conditioning business. This small business costs Php 3 250 to buy the things that he needs to prepare his equipment’s ready for the job. However, the City hall charges him Php 100.00 for each home service done. Calculate the break-even number of service if the price he charges for 1 service is Php 750.00 a. 3 b. 4 c. 5 d. 6
Hasanian is intended to buy a house having price of $600000. He approaches to Islamic bank to buy a house and therefore paid 20% as a down payment i.e. $120000 while the remaining 80% i.e. $480,000 provided by Islamic bank. Under the agreement 20% of house belonging to Hasanian while remaining 80% to Islamic bank. As per the market, fair rental for the same type of house is $4000 per month. Therefore, Hasanian pays $3200 as rent for the 80% share of Islamic bank at the beginning of the agreement. Islamic bank has provided this financing for 30 years. Taking into consideration rental value of the house and the time duration of the financing, Islamic bank has asked Hasanian to pay fixed monthly payments which consist each month rent for using the bank share of house and equal monthly payment to buy bank’s portion of the house. Using the above information you are required to make a monthly payment excel spreadsheet.
Mrs. Camelia owns a cake business and employs five employees at a monthly salary of RM2,000 per employee, with an additional commission of RM7.00 per cake sold. Other costs RM Rental RM1,600 per month Supplies RM0.60 for a cake RM650 per month RM254 per month and an additional RM0.40 for a cake. Maintenance Utilities Promotion and Advertisement RM600 per month The selling price is RM60.00 per cake. Required: a) Determine (CLO3, C3) the total fixed cost per month and the variable cost for a cake sold. b) Calculate (CLO3, C3) the break-even point in units and RM. c) If the selling price is increased by 10%, how many (CLO3, C3) cakes should be sold to achieve break-even point in units and RM? d) If the variable costs increased by RM2.00, how many (CLO 3, C3) cakes needed to be sold to earn a profit of RM18,000 a month? e) If changes in (c) and (d) are taken into account, how many (CLO 3, C3) cakes should be sold to achieve a profit of RM18,000? f) Sketch (CLO 3, C1) a break-even point…
Ivan borrowed Php 45,000 from Jonathan and another Php 10,000 from Rafael.Ivan paid them after 2 months. Jonathan is charging 5% interest whileRafael is charging 10% interest. Compute for the difference between thepayments made for Jonathan and Rafael.
Shurgurado Lhines is a dealer of cleaning materials. If it pays PHP1,875 for the vacuum cleaner and sells each at PhP4,499.50... What is the percent markup based on selling price? Shurgurado Lhines decided to give a 1-year Product Replacement Policy amounting to PHP399.50. If it pays PhP75.00 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination? |If 6,000 vacuum cleaners are sold in а. b. С. season and 40% are sold with the insurance policy, how many additional "markup amount," (the gross margin), was made by offering the policy? Continuing with the information from letter c, compare the total markup amount of d. Shurgurado Lhines on: Vacuum cleaners only Combination of vacuum cleaner and policy replacement offer i. ii. As Operations Manager for Shurgurado Lhines, what is your opinion on offering such replacement policy considering their effect on the "profit picture" of the е.…