A man wants to decide whether to invest $1000 in a friend's speculative venture. He will do so if he thinks he can get his money back in one year. He believes the probabilities of the various outcomes at the end of one year are as follows:
Result probability
$2000 .3,
$1500 .1
$1000 .2,
$500 .3
$0 .1
What would be his expected outcome if he invests the $1000?

Answers

Answer 1

Answer:

His expected outcome would be $1,100.

Explanation:

Expected outcome is the sum of the product of all the results and probabilities.

For this question, this can be calculated as follows:

Expected outcome = ($2000 * 0.3) + ($1500 * 0.1) + ($1000 + 0.2) + ($500 * 0.3) + ($0 * 0.1)

Expected outcome = $600 + $150 + $200 + $150 + $0

Expected outcome = $1,100

Therefore, his expected outcome would be $1,100.


Related Questions

The process of identifying the actual measurement scale to assess the variables of interest is called

Answers

Answer:

Operationalizing.

Explanation: None

The process of identifying actual measurement scales to asses variables of interest is called as concretizing.

What is variables of interest   ?

A variable of interest is a changeable quantity that is measured in an experimental investigation. One or more of these elements, also known as the study's variables, are controlled in order to gather information on how the factors affect the response variable, also known as the response.

There are two basic types of variables: category and numeric. Then, each category is divided into two subcategories: discrete or continuous for numeric variables, and nominal or ordinal for categorical variables.

Example: A scientist wants to know how a car's weight impacts its gas mileage. The gas mileage is the variable of interest, thus that is what we are measuring when we respond.

To learn more about variables

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7. How can you use nonverbal communication to express an idea to someone?

Answers

Ask them questions!! For example when you’re trying to teach someone a math problem don’t give them the answer instead help them figure out the answer.
Give them time to figure it out by answering verbally

The Five & Dime store has a cost of equity of 15.8%, a pretax cost of 7.7%, and a tax rate of 35%. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?
a. 10.18
b. 11.72
c. 12.72
d. 13.49
e. 14.93

Answers

Answer: 12.72%

Explanation:

The firm's weighted average cost of capital if the debt-equity ratio is 0.40 will be calculated thus:

= (1 /1+debt equity ratio)(cost of equity) + (Debt Equity ratio/1 + Debt Equity ratio)(Pre-tax cost)(1 - Tax rate)

=(1/1.40)(0.158) + (0.40/1.40)(0.077)(1 - 0.35)

= 12.72%

The firm's weighted average cost of capital is 12.72%

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each phrase that follows with the term it describes.
Clear All
Evaluation of how profit will change based on an alternative course of action
Possible result of using an inappropriate overhead allocation method
Revenue forgone from an alternative use of an asset
Strategy that focuses on reducing the influence of bottlenecks
Not relevant to future decisions
Product cost distortion
Opportunity cost
Differential analysis
Sunk cost
Theory of constraints
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each phrase that follows with the term it describes.
Clear All
Recognizes that a dollar today is worth more than a dollar tomorrow
Often referred to as the discounted cash flow method
Also referred to as capital budgeting
Average income as a percentage of average investment
Can be determined by initial cost divided by annual net cash inflow of an investment
Cash payback period
Capital investment analysis
Average rate of return
Net present value method
Time value of money concept
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match the following descriptions and examples with the four performance perspectives in the balanced scorecard.
Clear All
Focuses on operational efficiencies and issues like improving manufacturing performance
Focuses on obtaining and retaining customers and customer base
Focuses on traditional accounting measures of performance, such as net income and cash flow
Focuses on research and development initiatives and employee training, retention, and satisfaction efforts
Customer
Learning and growth
Internal processes
Financial

Answers

Answer:

1. Match each phrase that follows with the term it describes:

a. Evaluation of how profit will change based on an alternative course of action

Correct term: Differential analysis

b. Possible result of using an inappropriate overhead allocation metho

Correct term: Product cost distortion

c. Revenue forgone from an alternative use of an asset

Correct term: Opportunity cost

d. Strategy that focuses on reducing the influence of bottlenecks

Correct term: Theory of constraints

e. Not relevant to future decisions

Correct term: Sunk cost

2. Match each phrase that follows with the term it describes:

a. Recognizes that a dollar today is worth more than a dollar tomorrow

Correct term: Time value of money concept

b. Often referred to as the discounted cash flow method

Correct term: Net present value method

c. Also referred to as capital budgeting

Correct term: Capital investment analysis

d. Average income as a percentage of average investment

Correct term: Average rate of return

e. Can be determined by initial cost divided by annual net cash inflow of an investment

Correct term: Cash payback period

3. Match the following descriptions and examples with the four performance perspectives in the balanced scorecard:

a. Focuses on operational efficiencies and issues like improving manufacturing performance

Correct option: Internal processes

b. Focuses on obtaining and retaining customers and customer base

Correct option: Customer

c. Focuses on traditional accounting measures of performance, such as net income and cash flow

Correct option: Financial

d. Focuses on research and development initiatives and employee training, retention, and satisfaction efforts

Correct option: Learning and growth

Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.

Feb. 2 Purchased for cash 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Received dividends of $0.30 per share on Wong Inc. stock.
June 7 Purchased 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Sold 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25 Received dividends of $0.40 per share on Wong Inc. stock.

Answers

Answer:

Yerbury Corp.

Journal Entries:

Feb. 2 Debit Investment in Wong Inc. $106,110

Credit Cash $106,110

To record the purchase of 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.

Mar. 6 Debit Cash $1,590

Credit Dividend Revenue $1,590

To record the receipt of dividends of $0.30 per 5,300 shares on Wong Inc. stock.

June 7 Debit Investment in Wong Inc. $52,125

Credit Cash $52,125

To record the purchase of 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.

July 26 Debit Cash $210,000

Credit Investment in Wong Inc. $124,354

Credit Gain from Investment in Wong Inc. $85,646

To record the sale of 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission.

Sept. 25 Debit Cash $ 520

Credit Dividends revenue $ 520

To record the receipt of dividends of $0.40 per 1,300 shares on Wong Inc. stock.

Explanation:

a) Data and Analysis:

Feb. 2 Investment in Wong Inc. $106,110 Cash $106,110

5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.

Mar. 6 Cash $1,590 Dividend Revenue $1,590

dividends of $0.30 per share on Wong Inc. stock.

June 7 Investment in Wong Inc. $52,125 Cash $52,125

2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.

July 26 Cash $210,000 Investment in Wong Inc. $124,354 Gain from Investment in Wong Inc. $85,646

6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.

Sept. 25 Cash $ 520 Dividends revenue $ 520 dividends of $0.40 per 1,300 shares on Wong Inc. stock.

Match the accounting terms with the corresponding definitions.
Accounting term
1. Specific identification
2. Materiality concept
3. Last-in, first-out (LIFO)
4. Conservatism
5. Consistency principle
6. Weighted-average
7. Disclosure principle
8. First-in, first-out (FIFO)
Definitions
A. Treats the oldest inventory purchases as the first units sold.
B. Requires that a company report enough information for outsiders to make knowledgeable decisions.
C. Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
D. Calculates a weighted-average cost based on the cost of goods available for sale and the number of units available.
E. Principle whose foundation is to exercise caution in reporting financial statement items.
F. Treats the most recent/newest purchases as the first units sold.
G. Businesses should use the same accounting methods from period to period.
H. Principle that states significant items must conform to GAAP.

Answers

Answer:

Matching Accounting Terms with Corresponding Definitions:

Accounting Terms                       Definitions:

1. Specific identification               C.  

2. Materiality concept                  H.

3. Last-in, first-out (LIFO)             F.

4. Conservatism                           E.

5. Consistency principle              G.

6. Weighted-average                   D.

7. Disclosure principle                 B.

8. First-in, first-out (FIFO)            A.

Explanation:

Definitions

A. FIFO: Treats the oldest inventory purchases as the first units sold.

B. Disclosure principle: Requires that a company report enough information for outsiders to make knowledgeable decisions.

C. Specific identification: Identifies exactly which inventory item was sold. Usually used for higher cost inventory.

D. Weighted-average: Calculates a weighted-average cost based on the cost of goods available for sale and the number of units available.

E. Conservatism: Principle whose foundation is to exercise caution in reporting financial statement items.

F. LIFO: Treats the most recent/newest purchases as the first units sold.

G. Consistency Principle: Businesses should use the same accounting methods from period to period.

H. Materiality Concept: Principle that states significant items must conform to GAAP.

list three classified ways of getting into small business?​

Answers

Answer:

sole , partnership , team business

Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25?
A. 9
B. 12
C. 16
D. 19
E. 28

Answers

Answer
E.28
So yeah hope I’m not too late

Answer:

Post Test: Government

Economics

Question #5

Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25?

Answers:

A. 9

B. 12

C. 16

D. 19

E. 28

__________________________________________________________

The 100% correct answer is:

E. 28

Explanation:

I took the test and this is 100% it

Hope this helped

Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns investment land that was purchased for $160,000 four years ago. On September 14 of the current year when the land is worth $240,000, it is distributed to David. Assume that David's basis in his S corporation stock is $270,000 on the distribution date.

Required:
Discuss any Federal income tax ramifications.

Answers

Answer:

Capital gain $80,000

Shareholder $20,000

David Basis $50,000

Explanation:

Calculation to Discuss any Federal income tax ramifications

Calculation to discuss the CORPORATE LEVEL, capital gain Federal income tax ramifications

Using this formula

Capital gain =Land Worth - Purchased value of land

Let plug in the formula

Capital gain= $240,000 - $160,000

Capital gain= $80,000

Therefore CORPORATE LEVEL, capital gain Federal income tax ramifications will be $80,000

SHAREHOLDERS

Based on the information given we have 4 shareholders which means that the amount each shareholder held will be:

Shareholder= $80,000 ÷ 4

Shareholder= $20,000

DAVID BASIS

Based on the information given David Basis in S corporation will be calculated as:

David Basis= $270,000 - $240,000 + $20,000

David Basis= $50,000

Therefore David Basis in S corporation will be $50,000

Please Help!

Rosa works as an administrative assistant for a clothing company. Which of the following tasks might she do in her
job?
Teaching young children how to read
Arranging travel plans for clients
Manage schedules and help with office meetings

Answers

Answer:

C. Manage schedules and help with office meetings

Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay.

a. True
b. False

Answers

true because they made a deal

Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay. This statement is True.

What is Contract?

A contract is an agreement between parties that establishes legal duties for both parties. The fundamental components necessary for the agreement to be a valid offer and acceptance, adequate consideration, capacity, and legality are: mutual assent, expressed through a contract-compliant offer.

Contracts are legal obligations that contain promises. State common law primarily governs contract law, and while broad contract law is prevalent nationwide, different state courts may have different interpretations of particular contract clauses.

Contracts are created when one party's promise results in the creation of a duty between the parties. A promise must be given in exchange for sufficient consideration in order for it to be regarded as a contract. There are two various theories or definitions to take into account: Benefit-Detriment theory of consideration and the bargain theory of consideration

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Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below:
TC GL NG
Selling price per unit $ 494.40 $ 449.43 $ 469.68
Variable cost per unit $ 395.20 $ 320.21 $ 373.92
Minutes on the constraint 8.00 7.10 7.60
Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
a. $12.40 per minute
b. $18.20 per minute
c. $129.22 per unit
d. $95.76 per unit

Answers

Answer:

Bertucci Corporation

The amount the company should be willing to pay to acquire more of the constrained resource per minute is:

a. $12.40 per minute

Explanation:

a) Data and Calculations:

                                             TC             GL                NG

Selling price per unit       $ 494.40   $ 449.43     $ 469.68

Variable cost per unit     $ 395.20    $ 320.21     $ 373.92

Contribution per unit        $99.20      $129.22       $95.76

Minutes on the constraint     8.00             7.10            7.60

Contribution per minutes  $12.40        $18.20        $12.60

Answer:

M

Explanation:

Which of the following is true of resumes?
A personal cover letter should be included with a resume.
A resume is not necessary if you completed an application.
The formats of electronic and hard copy resumes are the same.
An objective tells an employer what the applicant learned in school.

Answers

Answer:

Hello! Your answer would be, BELOW

Explanation:

Job objective should be listed last

Use action words when describing your experience.

These are the statements that are true about resumes. Resumes should include job objectives. However, these should be listed at the end of the resume. A second thing to remember when drafting a resume is that it is important to use action words to describe your experiences. This is because the statements become more interesting, and because this structure will highlight the role that you played in each instance.

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In a query, if you want to summarize the data and use a sum to apply addition to the summarized data, use the _____ tool.

SUM
Add
Summarize
Totals

Answers

I think the answer is sum. Sorry if wrong

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,700 and will produce cash flows as follows:

End of Year Investment
A B
1 $8,000 $0
2 8,000 0
3 8,000 24,000

The present value factors of $1 each year at 15% are: ________

a. 1
b. 0.8696
c. 2
d. 0.7561
e. 0.6575

Answers

Answer:

e

Explanation:

the present value factor is the discount rate used to determine the present value of the investment

pv factor = 1 / (1 + r)^n

1 / 1.15^3 = 0.6575

(Learning Outcome 2) Watson Plumbing performed plumbing services for ABC Daycare on account for $565. How will this transaction affect ABC Daycare's accounting equation?

Answers

Answer:

ABC Daycare

Effect of Performing Plumbing Services on account on the Accounting Equation:

Assets (Accounts receivable) will increase by $565 and Equity (Retained Earnings) will equally increase by $565

Explanation:

a) Data and Analysis:

Accounts receivable $565 Service Revenue $565

The accounting equation that equals assets to liabilities and equity is always true at all times and with every correctly posted transaction.  It implies that assets are financed through the contributions made by either the owners (equity) or the creditors (debts), or a combination of the two.  This equation forms the basis for the double-entry system of financial accounting.

Paulina Lesky is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she contributes $2,000 to the plan, and her employer contributes an equal amount. Paulina thinks she will retire at age 63 and figures she will live to age 90. The plan allows for two types of investments. One offers a 3% risk-free real rate of return. The other offers an expected return of 12% and has a standard deviation of 39%. Paulina Lesky is 27 years old and has accumulated $7,500 in her self now has 20% of her money in the risk-free investment and 80% in the risky investment. She plans to continue saving at the same rate and keep the same proportions invested in each of the investments. Her salary will grow at the same rate as inflation. How much can Paulina be sure of having in the safe account at retirement?
A) $45,473.
B) $62,557.
C) $78,943.
D) $54,968.
E) $74,643.

Answers

Answer:

The answer is "Option D".

Explanation:

The amount accrued in the pension system until now [tex]= 7500[/tex]

Danger or security account proportion [tex]= 20 \%[/tex]

The percentage of the amount kept in a safe account [tex](PV) = 7500\times 20\% = 1500\%[/tex]

Number of investment years owned by [tex](n)=63-27=36[/tex]

Risk-free return rate [tex]I = 3\%[/tex]

Combined total amount up to age 63 (formula for the current value) = [tex]Present \ value\times (1+i)^n[/tex]

[tex]=1500\times (1+3\%)^{36}\\\\=4347.417492[/tex]

The contribution is [tex]\$2000[/tex] a year and the employer corresponds with the same amount for the pension plan.

Total annual contribution [tex]= 2000+2000 = 4000[/tex]

Risk-free or healthy account proportion[tex]= 20\%[/tex]

Amount invested annually [tex](P) = 4000\times 20\% = 800 \ (Risk \ free)[/tex]

Annual deposit amount (n) for years[tex]=63-27 =36[/tex]

Returns free of risk [tex]I = 3\%[/tex]

An cumulative sum due to an annuity[tex]= P\times \frac{(((1+i)^n)-1)}{i}[/tex]

[tex]=800\times \frac{(((1+3\%)^{36})-1)}{3\%}\\\\=50620.75541[/tex]

Total amount accumulated in safe account [tex]= FV\ of \ PV + FV[/tex] of annuity

[tex]=4347.417492+50620.75541\\\\=54968.1729\\\\=54968[/tex]

The standard cost of Product B manufactured by Pharrell Company Includes 3.7 units of direct materials at $6.8 per unit. During June, 26, 600 units of direct materials are purchased at a cost of $6.70 per unit, and 26, 600 units of direct materials are used to produce 7, 100 units of Product B.
(a) Compute the total materials variance and the price and quantity variances.
Total materials variance $
Materials price variance $
Materials quantity variance $
(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.90 and the quantity purchased and used is 27,000 units.
Total materials variance $
Materials price variance $
Materials quantity variance %

Answers

Answer and Explanation:

The computation is shown below;

(a)

Total materials variance:

= ( AQ × AP ) - ( SQ × SP )

= (26600 × $6.70) - (26270 × $6.8)

= $178220 - $178636

= $416 F

Here

= 7100 × 3.7

=26,270

Materials price variance:

= ( AQ × AP ) - ( AQ × SP )

= (26600 × $6.70) - (26600 × $6.8)

= $178220 - $180,880

= $2660 F

Materials quantity variance:

= ( AQ × SP ) - ( SQ × SP )

= (26600 × $6.8) - (26270 × $6.8)

= $180,880- $178636

= $2244 U

(b)

(a) Total materials variance:

= ( AQ × AP ) - ( SQ × SP )

= (27000 × $6.90) - (26270 × $6.8)

= $186300 - $178636

= $7664 U

Here

= 7100 × 3.7

=26,270

Materials price variance:

= ( AQ × AP ) - ( AQ × SP )

= (27000 × $6.90) - (27000 × $6.8)

= $186300 - $183600

= $2700 U

Materials quantity variance:

= ( AQ × SP ) - ( SQ × SP )

= (27000 × $6.8) - (26270 × $6.8)

= $180,880- $178636

= $4964 U

When making a big decision, there's a six-step process that can help you.
True
False

Answers

True! it is six steps

Answer:True

Explanation:

Suppose that a Treasury coupon security is purchased on April 8 and that the last coupon payment was on February 15. Assume that the year in which this security is purchased is not a leap year.
(a) How many days are in the accrued interest period?
(b) If the coupon rate for this Treasury security is 7% and the par value of the issue purchased is $1 million, what is the accrued interest?

Answers

Answer:

A. 52 days

B. $1.00

Explanation:

A. Calculation to determine How many days are in the accrued interest period

February 15 to February 28 14 days

March (31 days in March) 31 days

April 1 to April 8 7 days

Actual number of days 52 days

(14 days+ 31 days+7 days)

Therefore The number of days that are in the accrued interest period is 52 days

B. Calculation to determine the accrued interest

Using this formula

Accrued interest=(Annual Dollar Coupon/2)x (Days in Accrued interest /Days in Coupon)

Let plug in the formula

Accrued interest=($7/2)x (52 days /182 days)

Accrued interest= $1.00

Note that February 15 through August 15 will give us 182 days in a coupon period

Therefore The Accrued interest is $1.00

Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:_______.
a. 49,100.
b. 49,900.
c. 48,100.
d. 50,900.
e. cannot be determined based on the information presented.

Answers

Answer:

c. 48,100.

Explanation:

The computation of the actual labor hours worked is shown below;

Actual Overhead $392,000.00

Less: Underapplied overhead $7,200.00

Applied Overhead ($392,000 - $,7200) $384,800.00

Predetermined overhead rate $8.00

Actual labor hours ($384,800 ÷ 8) $48,100

hence, the actual labor hours worked is $48,100

Therefore the option c is correct

Answer:

Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000

Simone's actual labor hours worked totaled:_______.

a. 49,100.

b. 49,900.

c. 48,100.

d. 50,900.

e. cannot be determined based on the information presented.

-KeonLee

I hope it help

#Carry on learning

The following data are taken from the financial statements of Crane Company.
2022 2021 Accounts receivable (net), end of year $ 567,900 $ 555,000 Net sales on account 4,831,000 4,179,000 Terms for all sales are 1/10, n/45
1) Compute for each year the accounts receivable turnover. At the end of 2015, accounts receivable was $511,500. (Round answers to 1 decimal place, e.g. 12.5.)
2) Compute for each year the average collection period. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)

Answers

Answer and Explanation:

The computation is shown below;

(1)

As we know that

The receivables turnover = Net credit sales ÷ Average account receivable  

For the year 2017

Receivables turnover = $4,831,000 ÷ $561,450 = 8.60 times

for the year 2016:

Receivables turnover = $4,179,000 ÷ $533,250 = 7.84 times

Average net AR = (Beginning AR + Ending AR) ÷ 2

2017 = ($567,900 + $555,000) ÷ 2  = $561,450

2016 = ($555,000 + $511,500) ÷ 2 = $533,250

(2)

The average collection period = 365 days ÷ Receivables turnover

For 2017:

Average collection period = 365 ÷ 8.60 = 42.44 days

For 2016

Average collection period = 365 ÷ 7.84 = 46.56 days

On December 31, the trial balance shows wages expense of $390. An additional $130 of wages was earned by the employees, but has not yet been paid. Analyze this adjustment for wages using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.)
(Income Statement)
Wages Expense
(Balance Sheet)
Wages Payable
Page:
CREDIT DATE DOC. POST NO. REF ACCOUNT TITLE DEBIT 1 20- Dec. 31 1 2 2

Answers

Answer:

                      (Income Statement)

                          Wages Expenses

Trial balance     $390 |

Adjustment       $130  |

Balance             $520 |

                      (Balance Sheet)

                      Wages Payable

                                  |  Adjustment      $130

Date     Account Titles           Debit    Credit

Dec 31  Wages expenses       $130

2020         Wages payable                   $130

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 20%, the quantity of frizzles sold decreases by 22% and the quantity of mookies sold increases by 7%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together.

Complete the first column of the following table by computing the cross-price elasticity between guppy gummies and raskels, and then between guppy gummies and mookies.

Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Guppy Gummies
Raskels
Mookies

Answers

Answer:

1.1 substitutes do not market together

-0.35 complements market together

Explanation:

1.1

-0.35

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

Substitute goods are goods that can be used in place of another good.

if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Cross price elasticity = percentage change in quantity demanded of good A / percentage change in the price of good B

Frizzles = -22% / -20% = 1.1

Mookies = 7 / -20 = -0.35

On January 1, 2021, White Water issues $570,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $570,000. Record the bond issue on January 1, 2021, and the first two interest payments on December 31, 2021, and December 31, 2022.
Required:
1. Complete the first three rows of an amortization schedule.
Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value
01/01/2021
12/31/2021
12/31/2022
2. Record the bond issue on January 1, 2021, and the first two interest payments on December 31, 2021, and December 31, 2022.

Answers

Answer:

White Water

1. Schedule

Date            Cash Paid     Interest Expense   Increase in Carrying value  FV

01/01/2021 0                                                                           $570,000.00

12/31/2021    $39,900.0       $39,900.00     0                       $570,000.00

12/31/2022  $39,900.0       $39,900.00     0                       $570,000.00

2. January 1, 2021:

Debit Cash $570,000

Credit 7% Bonds Payable $570,000

To record the issue of bonds for cash.

December 31, 2021:

Debit Interest Expense $39,900

Credit Cash $39,900

To record the first interest payment.

December 31, 2022:

Debit Interest Expense $39,900

Credit Cash $39,900

To record the second interest payment.

Explanation:

a) Data and Calculations:

Face value of 7% bonds = $570,000

Proceeds from the bond issue = $570,000

No premiums, no discounts on bonds.

Coupon interest rate = 7%

Market interest rate = 7%

do/your/assignment/did/you?​

Answers

Answer:

Did you do your assignment?

This is your answer

Answer:

I did mine did you?

Explanation:

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:______.
Facility location Kentucky Arizona Illinois Total New product revenue $ 56,000,000 $ 100,000,000 $ 84,000,000 $ 240,000,000
Research & Development $ 90,000,000
Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be:_______.

Answers

Answer:

Amount of costs allocated to the Illinois research facility = $31,500,000

Explanation:

Given:

Research cost    

Kentucky = $56,000,000

Arizona = $100,000,000

Illinois = $84,000,000

Research and development cost = $90,000,000

Find:

Amount of costs allocated to the Illinois research facility

Computation:

Amount of costs allocated to the Illinois research facility = Research cost of Illinois[Research and development cost / Total research cot]  

Amount of costs allocated to the Illinois research facility = 84,000,000[90,000,000 / (56,000,000 + 100,000,000 + 84,000,000)]

Amount of costs allocated to the Illinois research facility = 84,000,000[90,000,000 / (240,000,000)]

Amount of costs allocated to the Illinois research facility = 84,000,000[0.375]

Amount of costs allocated to the Illinois research facility = $31,500,000

ABC has not ordered linen in some time, but when it did order in the past it ordered frequently, and its orders were of the highest monetary value. Under the given circumstances, Ajax is most likely to have an RFM score:________

Answers

Answer: 511

Explanation:

The RFM model enables a company to group its customers by their buying habits such that they can be treated accordingly to ensure repeated sales.

The three categories are:

Date of last purchaseFrequency of purchaseMonetary value of purchases

The range is 0 - 5 with a higher number representing higher scores.

This particular customer will get a 5 for date of last purchase to indicate that it has been a while since they last purchased.

They will get a 1 for frequency because they haven't purchased in high frequency in a while but because they used to buy a lot, we give it a 1 instead of 0.

They will also get a 1 for the monetary value for the same reason as above.

The specific-factors model is often referred to as the short-run model. Why is this the case and how does it relate to the marginal product of labor (MPL) in each sector and the production possibilities frontier (PPF)?

Answers

Answer:

A short run model is one in which particular means of production such as land, are fixed and cannot be moved between sectors or businesses. There is unrestricted labour movement amongst these different sectors, therefore each market's marginal product of labour is identical. As a result, an economy's overall workforce level is optimal.

Because greater and greater labour inputs are introduced, there are decreasing returns to scale, as well as the marginal product of labour continues to fall. As a result, the PPF curve is indeed concave and slants downward. To achieve full employment, the country can export or import at any time. The United States, for example, both produces and imports oil.

Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2021, construction of a sixth floor was completed at a cost of $1,650,000.

Required:
Calculate the depreciation on the building and building addition for 2018 and 2019 assuming that the addition did not change the life or residual value of the building.

Answers

Answer:

Depreciation expense on Building

Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life

= ($5,000,000 - $200,000) / 30

= $4,800,000 / 30

= $160,000

Depreciation expense for 2018 = $160,000

Depreciation expense for 2019 = $160,000

Depreciation expense on Building addition

Useful life = 30.00 years - 2.50 years = 27.50 years

Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life

= ($1,650,000 - $0) / 27.50

= $60,000

Depreciation expense for 2018 for 6 months = $60,000 * (6/12) = $30,000

Depreciation expense for 2019 = $60,000

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