EXERCISE 9–1 Prepare a Flexible Budget LO9–1

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:

Puget Sound Divers Planning Budget for the Month Ended May 31

Budgeted diving-hours (q) : 100

Revenue ($365.00q) : $36,500

Expenses:

Wages and salaries ($8,000 + $125.00q) : 20,500

Supplies ($3.00q) : 300

Equipment rental ($1,800 + $32.00q) : 5,000

Insurance ($3,400) : 3,400

Miscellaneous ($630 + $1.80q) : 810

Total expense : 30,010

Net operating income : $ 6,490

During May, the company’s actual activity was 105 diving-hours.

Required: show all the work process

Using Exhibit 9–5 as your guide, prepare a flexible budget for May.

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))

Which of these is not a result of regular exercise

Kendra knight took part in a friendly game of touch football. she had played before and was familiar with football. michael jewett was on her team. in the course of play, michael bumped into kendra and knocked her to the ground. he stepped on her hand, causing injury to a little finger that later required its amputation. she sued michael for damages. he defended on the ground that she had assumed the risk. kendra claimed that assumption of risk could not be raised as a defense because the state legislature had adopted the standard of comparative negligence. what happens if contributory negligence applies? what happens if the defense of comparative negligence applies?