The economic manufacturing quantity (EMQ) can be calculated using the following formula:
EMQ = √[(2DS)/(hc)]
where,
D = demand per period (1,000 units per month)
S = setup cost ($200.00)
h = inventory carrying cost rate (0.25)
c = unit cost of production ($5.00)
EMQ = √[(2 x 1,000 x 200)/(0.25 x 5)] = √[400,000] = 632.45 units
Therefore, the EMQ for the product is 632.45 units.
If the manufacturer decides to produce the product once every quarter, then the production rate will be:
Production rate = (10,000 units per month) x (3 months per quarter) = 30,000 units per quarter
The penalty for pursuing this policy can be calculated using the following formula:
Penalty = (h x c x EMQ)/2
Penalty = (0.25 x 5 x 632.45)/2 = $39.53 per quarter
Therefore, the penalty for producing the product once every quarter is $39.53 per quarter.
Based on the information provided, we can calculate the Economic Manufacturing Quantity (EMQ) using the following formula:
EMQ = √(2DS / (H - p))
where:
D = Demand per month = 1,000 units
S = Setup cost = $200
H = Holding cost per unit per year = 0.25 * Unit cost = 0.25 * $5 = $1.25
p = Production rate per month = 10,000 units
First, we need to find the difference between the holding cost (H) and the production rate (p) in terms of cost:
H - p = ($1.25 * 1,000) / 10,000 = $0.125
Now we can calculate the EMQ:
EMQ = √(2 * 1,000 * 200 / (1.25 - 0.125)) ≈ 178.9 units
So, the EMQ is approximately 178.9 units.
If the manufacturer decides to produce the product once every quarter, the penalty can be calculated using the difference in the average inventory levels between the EMQ and the quarterly production:
Quarterly production quantity = 1,000 units * 3 months = 3,000 units
Average inventory for EMQ = EMQ / 2 = 178.9 / 2 ≈ 89.45 units
Average inventory for quarterly production = 3,000 / 2 = 1,500 units
Penalty = (1,500 - 89.45) * Holding cost per unit per year
Penalty ≈ (1,410.55) * $1.25 ≈ $1,763.19
Thus, if the manufacturer decides to produce the product once every quarter, they would be paying a penalty of approximately $1,763.19 per year to pursue this policy.
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a drop in consumption or investment spending caused by increased government spending is referred to as: group of answer choices the multiplier effect. an expansionary gap. ricardian equivalence. crowding out.
A drop in consumption or investment spending caused by increased government spending is referred to as crowding out. Crowding out occurs when government spending increases, leading to a decrease in private sector spending.
This is because increased government spending leads to higher interest rates, which in turn reduces private sector borrowing and investment. As a result, the overall level of spending in the economy may not increase as much as expected due to the decrease in private sector spending.
Crowding out is a concept in macroeconomics and is a potential limitation to the effectiveness of government spending as a tool for stimulating economic growth.
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If you invest $14,500 today, how much will you have in each of the following instances? a. In 12 years at 10 percent? b. In 17 years at 6 percent? c. In 25 years at 6 percent? d. In 20 years at 6 percent (compounded semiannually)?
a. You will have a future value of $44,385.54 in 12 years. b. Investing $14,500 today at 6% interest, you will have $31,590.26 in 17 years. c. You will have $45,081.27 in 25 years. d. You will have $39,528.07 in 20 years.
a. To calculate the future value of $14,500 in 12 years at 10% interest, we can use the formula:
[tex]FV = PV \times (1 + r)^n[/tex]
FV = 14,500 x (1 + 0.10)¹²
FV = $44,385.54
Therefore, you will have $44,385.54 in 12 years.
b. To calculate the future value of $14,500 in 17 years at 6% interest, we can use the formula:
[tex]FV = PV \times (1 + r)^n[/tex]
FV = 14,500 x (1 + 0.06)¹⁷
FV = $31,590.26
Therefore, you will have $31,590.26 in 17 years.
c. To calculate the future value of $14,500 in 25 years at 6% interest, we can use the formula:
[tex]FV = PV \times (1 + r)^n[/tex]
FV = 14,500 x (1 + 0.06)²⁵
FV = $45,081.27
Therefore, you will have $45,081.27 in 25 years.
d. To calculate the future value of $14,500 in 20 years at 6% interest compounded semiannually, we can use the formula:
[tex]FV = PV \times (1 + r/n)^{(n x t)[/tex]
where r/n is the interest rate per period (in this case, 0.06/2 = 0.03), n is the number of compounding periods per year (in this case, 2), and t is the number of years (in this case, 20).
FV = 14,500 x (1 + 0.03)²ˣ²⁰
FV = $39,528.07
Therefore, you will have $39,528.07 in 20 years.
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a company that builds stakeholder coalitions to influence government is using which strategy?
The company is using a strategy known as advocacy or lobbying. This approach involves the process of engaging with stakeholders such as industry associations, non-governmental organizations, and community groups to build coalitions and collaborate towards achieving a common goal.
The company's objective is to influence government policies, legislation, and regulations that are relevant to their operations or industry.
The process of advocacy or lobbying can involve various activities such as research, stakeholder engagement, communication, and direct engagement with policymakers. The company may use their expertise and knowledge of the industry to provide evidence-based arguments to policymakers in support of their position. They may also engage in public awareness campaigns to create support for their cause or to counter opposition from other stakeholders.
The success of advocacy or lobbying depends on the company's ability to build effective coalitions with other stakeholders and to maintain a consistent message throughout the process. The strategy can be a powerful tool for influencing government decisions, but it requires careful planning, management, and execution. Overall, advocacy or lobbying is a common strategy used by companies to shape public policy and protect their interests.
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Please give me answer in full brief.Q1: Discuss in detail the provincial legislature in Ontario, the mandate, powers and organization of local government. Also discuss exclusive Provincial jurisdiction. (Marks – 30) Q2: How the B.N.A.
Q1: The provincial legislature in Ontario is made up of elected representatives who are responsible for making laws and policies on behalf of the province.
Q2: The BNA Act established the principles of federalism in Canada and served as the foundation for the country's constitutional framework.
Q1: The legislature is composed of the Legislative Assembly, which has 124 elected Members of Provincial Parliament (MPPs). The mandate of the legislature is to create laws that benefit the citizens of Ontario and to oversee the administration of the province.
The powers of local government in Ontario are determined by the provincial government. Local governments are responsible for providing services to their communities such as water, sewage, and waste management, police and fire protection, and public transportation. They also have the power to make by-laws and regulations that govern their communities. The organization of local government varies depending on the size and population of the municipality.
Exclusive Provincial jurisdiction refers to the areas of policy and lawmaking that are within the sole authority of the provincial government. These areas include education, healthcare, natural resources, and transportation. The federal government does not have the power to intervene in these areas of policy and legislation.
Q2: The British North America Act (BNA Act) was passed by the British Parliament in 1867 and served as the constitution of Canada until 1982 when the Constitution Act was passed. The BNA Act established the framework for the federal system of government in Canada, dividing powers between the federal and provincial governments.
Under the BNA Act, the federal government has exclusive jurisdiction over areas such as national defense, criminal law, and immigration. The provincial governments have exclusive jurisdiction over areas such as education, healthcare, and natural resources. However, there are also areas of shared jurisdiction, such as environmental protection and taxation.
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a strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when
A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focus/market niche strategy when the market is price-sensitive and customers prioritize cost over other factors such as quality, brand recognition, or unique features.
In highly competitive markets where customers have many choices and are focused on obtaining the lowest price, a low-cost provider strategy can be effective in attracting customers and gaining market share.
This strategy involves finding ways to produce and deliver products or services at a lower cost than competitors, while still maintaining an acceptable level of quality.
However, a low-cost provider strategy may not be as effective in markets where customers prioritize other factors over cost. In such cases, a differentiation strategy that emphasizes unique features or a best-cost strategy that balances cost and quality may be more effective.
A focus/market niche strategy can also be effective in markets where a specific segment of customers has unique needs or preferences that can be met by a specialized product or service offering.
Ultimately, the choice of strategy will depend on a variety of factors, including the nature of the market, the competitive landscape, and the organization's capabilities and resources.
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the money supply curve as determined by current federal reserve policy is
The money supply curve, as determined by current Federal Reserve policy, represents the relationship between the interest rate and the total amount of money available in the economy.
The Federal Reserve (Fed) uses various monetary policy tools to control the money supply, which in turn influences economic growth, inflation, and unemployment. The main tools used by the Fed to influence the money supply curve are open market operations, the discount rate, and reserve requirements. Open market operations involve the buying and selling of government securities, which affect the level of bank reserves and, consequently, the money supply. When the Fed buys securities, it increases the money supply, while selling securities decreases the money supply.
The discount rate is the interest rate the Fed charges commercial banks to borrow money. A lower discount rate encourages banks to borrow more and, therefore, increases the money supply, while a higher rate discourages borrowing and decreases the money supply. Reserve requirements are the minimum amount of funds banks must hold in reserve, either in cash or as deposits with the Fed. By adjusting reserve requirements, the Fed can influence the amount of money banks have available to lend, and thus the money supply.
In summary, the current Federal Reserve policy shapes the money supply curve through the use of open market operations, discount rate, and reserve requirements. These tools help control the money supply, which is vital for maintaining economic stability and growth.
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mr. baker has named his son as the beneficiary to his life insurance policy, but he is worried about his son's spending habits and the money his son might already owe when he receives the death benefit. which policy provision, clause or rider best fits his situation? estate designation rider spendright creditor provision irrevocable assignment clause spendthrift provision
Mr. Baker has named his son as the beneficiary to his life insurance policy, but he is worried about his son's spending habits and the money his son might already owe when he receives the death benefit. The policy provision, clause or rider best fits his situation is Spendthrift Provision.
A spendthrift clause is a provision in a trust – most trusts contain one – that prevents a trust beneficiary from using a future distribution to secure credit.
The clause also prohibits payment to a creditor if it extends credit to a beneficiary based on future distributions. It may be easier to understand what they are by describing what they do.
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ASAP!!!
what is critical to the company Sany's profits and sustainable
growth??. Please write five sentences!
Effective cost management is critical to Sany's profits and sustainable growth, as it ensures that the company is operating efficiently and maximizing revenue.
1. Innovation and product development are also crucial to Sany's long-term profitability and sustainability, as they enable the company to stay competitive and meet changing market demands.
2. Maintaining a strong brand reputation is essential to Sany's profits and sustainable growth, as it enhances customer loyalty and attracts new business.
3. Investing in employee training and development is critical to Sany's profits and sustainable growth, as it enhances productivity, quality, and innovation within the organization.
4. Adapting to environmental and social responsibility standards is becoming increasingly important for companies like Sany.
5. As consumers and investors are placing greater emphasis on sustainability and ethical business practices. Meeting these standards can help the company maintain profits and secure long-term growth.
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A company has planned to have a space with three options lease, buy, and loan. As the equivalent uniform annual cost (EUAC) is different at different interest rates for three options, a choice table becomes important to construct. Based on data, the following EUAC vs. Interest Rate (i%) curve is developed. Construct a choice table for interest rates from 0% to 50%.
you can use it to make informed decisions regarding whether to lease, buy, or take a loan for the space, based on the applicable interest rate. equivalent uniform annual cost (EUAC) for each option (lease, buy, and loan) at different interest rates (0% to 50%)
To construct a choice table for interest rates from 0% to 50%, we can use the following EUAC vs. Interest Rate (i%) curve: Interest Rate (i%) | Lease EUAC | Buy EUAC | Loan EUAC----------------------|------------|----------|---------- 0 | $15,000 | $400,000 | $100,000 5 | $15,794 | $399,170 | $103,158 10 | $16,640 | $397,297 | $106,495 15 | $17,545 | $394,378 | $110,021 20 | $18,516 | $390,410 | $113,748 25 | $19,559 | $385,390 | $117,689 30 | $20,682 | $379,316 | $121,859 35 | $21,891 | $372,184 | $126,274 40 | $23,193 | $364,001 | $130,947 45 | $24,594 | $354,770 | $135,892 50 | $26,100 | $344,495 | $141,126 In the choice table, we can see the equivalent uniform annual cost (EUAC) for each option (lease, buy, and loan) at different interest rates (0% to 50%). This allows the company to compare the costs of each option and make an informed decision based on their financial situation and goals.
To construct a choice table for interest rates from 0% to 50% based on the given Equivalent Uniform Annual Cost (EUAC) vs. Interest Rate (i%) curve, you should follow these steps: 1. Gather data: Collect the EUAC values for each of the three options (lease, buy, and loan) at different interest rates, ranging from 0% to 50%. 2. Create the table: Set up a table with four columns: Interest Rate (i%), Lease EUAC, Buy EUAC, and Loan EUAC. 3. Fill in the table: For each interest rate (from 0% to 50%, typically in increments of 5% or 10%), enter the corresponding EUAC values for each option in the table. 4. Compare EUACs: At each interest rate, determine which option has the lowest EUAC, and highlight or note it in some way. This will show the most cost-effective choice at each interest rate level. Once the table is complete.
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Choose whether the variable described on the left is a variable that increases or decreases current Demand or increases or decreases current Supply for a good. Better technology Decreases in tastes and preferences Expectations of increases in future income Subsidy Increased competition or number of firms in industry Increase in market size (number of buyers or consumers) Increases in price of one substitute. of other substitute Arise in the cost of inputs Expectations of reduced product availibility Expectations of future market price decreases
The variable which increase demand or decrease demands are Better technology will increases Supply.
Decreases in tastes and preferences will Decreases DemandExpectations of increases in future income will Increases DemandSubsidy will Increases SupplyIncreased competition or number of firms in industry will Increases SupplyIncrease in market size (number of buyers or consumers) - Increases DemandIncreases in prices of substitute(s) will Increases DemandA rise in the cost of inputs will Decreases SupplyExpectations of reduced product availability Increases Demand - Increases Supply and decreases DemandThe ability of the market to produce a good or service is referred to as supply, while the desire of the market to purchase the good or service is referred to as demand. Organic market is frequently viewed as a principal idea inside financial matters and is basically used to depict the cost and accessibility of products.
The value of a good or service is determined by supply and demand in a free market. The quantity of something that producers introduce to the market is known as supply. Request addresses how much that thing that customers need to purchase. The cost goes up when there are more people who want it and fewer people who have it.
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Incomplete question:
Choose whether the variable described on the left is a variable that increases or decreases current Demand or increases or decreases current Supply for a good.
Better technology Decreases in tastes and preferences Expectations of increases in future income Subsidy Increased competition or number of firms in industry Increase in market size (number of buyers or consumers) Increases in price of one substitute. Arise in the cost of inputs Expectations of reduced product availabilityWhat are types of strategies that could be implemented in a profit orientation strategy?
Required types of strategies that could be implemented in a profit orientation strategy are cost leadership strategy, product differentiation strategy, market segmentation strategy, diversification strategy, pricing strategy.
There are several types of strategies that could be implemented in a profit orientation strategy, including:
1. Cost leadership strategy: This involves reducing the cost of production to gain a competitive advantage and increase profits.
2. Product differentiation strategy: This involves creating unique and desirable products or services that stand out in the market, allowing for higher prices and increased profits.
3. Market segmentation strategy: This involves dividing the market into smaller segments and targeting specific customer groups with tailored marketing strategies and products/services.
4. Diversification strategy: This involves expanding into new markets or developing new products/services to increase revenue streams and reduce risk.
5. Pricing strategy: This involves setting prices at a level that maximizes profits while remaining competitive in the market.
Overall, a profit orientation strategy involves focusing on generating revenue and maximizing profits as the primary goal of the business. The above strategies can be implemented to achieve this goal in various ways, depending on the business's unique needs and competitive environment.
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Problem 2. G H K M 2 3 4 5 6 7 Consider the extension of Super Grain Case study in section 3.4 on pages 97-103 of the E-Book and provide an Input Analysis report for this case using your own words. The following issues should be included in your report: 1. The discrepancies between the exposures per a single TV ad and the total number of children & parents reached per a single TV ad, 2. The corrections of the unnecessary charges in relation to the planning budget per ad, 10 11 3. The attainment of at least 17 million exposures that were originally achieved using a minimum cost, and 12 13 4. The relaxation of the strict constraint related to the coupons budget and its effect on the achievement of the targets listed in the case. 14 15 16 17 18 19 a R S U Use the space below to comment on the final results using your own words. w х
The Super Grain Case study has provided a valuable opportunity to conduct an Input Analysis report to evaluate the effectiveness of the advertising campaign.
One issue that stands out is the discrepancy between the exposures per a single TV ad and the total number of children and parents reached per a single TV ad. This means that the ads may not be reaching the desired target audience as efficiently as possible. Another issue is the unnecessary charges in relation to the planning budget per ad, which could be corrected to ensure that the campaign is cost-effective. Despite these challenges, the campaign was able to achieve at least 17 million exposures using a minimum cost. This highlights the importance of careful planning and budgeting to achieve maximum impact with minimal expenditure. Finally, the relaxation of the strict constraint related to the coupon budget had a positive effect on the achievement of the campaign's targets. By allowing more flexibility in this area, the campaign was able to reach a wider audience and achieve greater success. Overall, the Super Grain Case study provides valuable insights into the complexities of advertising campaigns and the importance of careful planning, budgeting, and analysis. By taking a data-driven approach, it is possible to achieve significant results even with limited resources.
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What are the relationships between TC, TVC and FC
curves?
The relationships between TC (total cost), TVC (total variable cost), and FC (total fixed cost) curves can be explained by the following statement: TC equals TVC plus FC.
In other words, total cost (TC) is the sum of total variable cost (TVC) and total fixed cost (FC). The TVC curve represents the variable costs of producing a certain level of output, while the FC curve represents the fixed costs that do not change with changes in output. As output increases, the TVC curve increases, while the FC curve remains the same. The TC curve therefore increases at a decreasing rate due to the increasing TVC curve and the constant FC curve.
This relationship is important for understanding the cost structure of a business and how changes in output affect total costs. By analyzing these curves, businesses can make informed decisions about pricing, production levels, and other important factors that impact profitability.
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Papas Ltd has finalised its accounts for the month of December. Actual Budget Units of production 100,000 110,000 Overheads £170,000 £209,000 The Overhead Absorption Rate (QAR) for December is Choose... ✓ Choose... £1.90 L None of the above £1.55 £3.79 £2.09 £1.70 The absorbed overheads are Choose... ✓ Choose... £190,000 £209,000 £100,000 £187,000 £170,000 Previous page £110,000 The under/over absorption is: Choose... ✓ Choose... £22,000 under absorbed £187,000 over absorbed £187,000 under absorbed £22,000 over absorbed Р ni £209,000 under absorbed £209,000 over absorbed £170,000 over absorbed £170,000 under absorbed
The units of production for the month were 100,000 actual units and 110,000 budgeted units.
To calculate the overhead absorption rate (OAR), we can use the formula:
OAR = Budgeted Overheads / Budgeted Units of Production
OAR = £209,000 / 110,000
OAR = £1.90
Therefore, the OAR for December is £1.90.
To calculate the absorbed overheads, we can use the formula:
Absorbed Overheads = OAR x Actual Units of Production
Absorbed Overheads = £1.90 x 100,000
Absorbed Overheads = £190,000
Therefore, the absorbed overheads for December are £190,000.
To calculate the under/over absorption, we can use the formula:
Under/Over Absorption = Actual Overheads - Absorbed Overheads
Under/Over Absorption = £170,000 - £190,000
Under/Over Absorption = £20,000 under absorbed
Therefore, the under/over absorption for December is £20,000 under absorbed.
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a stream of equal payments that occur at the beginning of each month for one year is called a(n) .
A stream of equal payments that occur at the beginning of each month for one year is called an annuity due.
An annuity due is a financial instrument where a series of equal payments is made at the beginning of each period, instead of at the end of each period like a regular annuity.
This means that the first payment is made immediately at the beginning of the first period.
Examples of annuity due payments include monthly rent or car lease payments, where the payment is made at the beginning of each month.
Annuity due payments are also used in finance to calculate the present value or future value of a series of equal payments.
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b. if, instead, the economy was at point c at the end of the 10-year period, by what percentage did it fall short of its production capacity?
The percentage by which it fell short of its production capacity can be calculated by finding the difference between the actual output at point C and the potential output at full capacity, and then dividing that difference by the potential output at full capacity, finally multiplying the result by 100 to get the percentage.
If the economy was at point c at the end of the 10-year period, it means that it was producing below its maximum production capacity. To calculate the percentage by which it fell short of its capacity, we need to first determine what the economy's production capacity is.
Production capacity refers to the maximum amount of output that an economy can produce given its available resources and technology. It is often measured by the level of output that can be achieved when all resources are fully employed, also known as the full employment level of output.
Assuming that point c represents the actual level of output produced by the economy at the end of the 10-year period, and that it is below the full employment level of output, we can calculate the percentage by which the economy fell short of its production capacity using the following formula: Percentage shortfall = (Actual output - Full employment output) / Full employment output x 100
For example, if the full employment level of output is $100 billion and the actual level of output produced at point c is $80 billion, then the percentage shortfall would be: Percentage shortfall = ($80 billion - $100 billion) / $100 billion x 100 Percentage shortfall = -20%
Therefore, if the economy was at point c at the end of the 10-year period, it would have fallen short of its production capacity by 20%.
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which of the following is not a facet job satisfaction question? group of answer choices do you like your coworkers? overall, do you like your job? do you like your pay? do you like your supervisor?
The question "Do you like your pay?" is not a facet of job satisfaction because it does not relate to a specific aspect of the job or work environment.
While pay is certainly an important factor in overall job satisfaction, it is not a specific facet that can be measured or evaluated independently of other factors.
Facets of job satisfaction typically include factors such as the work itself, relationships with coworkers and supervisors, opportunities for growth and advancement, work-life balance, and the overall organizational culture.
Questions that relate to these facets might include "Do you enjoy the tasks you perform on a daily basis?" or "Do you feel like you have opportunities to learn and grow in your role?"
By asking more specific questions about different facets of job satisfaction, employers can gain a better understanding of how employees feel about their work and what factors are contributing to their level of satisfaction or dissatisfaction.
This can help them make changes to improve employee morale and retention.
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cirice corporation is considering opening a branch in another state. the operating cash flow will be $173,600 a year. the project will require new equipment costing $589,000 that would be depreciated on a straight-line basis to zero over the 5-year life of the project. the equipment will have a market value of $175,000 at the end of the project. the project requires an initial investment of $40,500 in net working capital, which will be recovered at the end of the project. the tax rate is 35 percent. what is the project's irr? multiple choice 18.25% 18.43% 15.56% 13.19% 16.76%
The project's IRR is approximately 18.43%. The correct answer is 18.43%.
To find the project's IRR, we need to calculate the net cash flows for each year and then use those cash flows to find the IRR.
1. Calculate the annual depreciation expense:
Depreciation Expense = (Equipment Cost - Market Value) / Project Life
Depreciation Expense = ($589,000 - $175,000) / 5 = $82,800 per year
2. Calculate the annual tax savings from depreciation:
Tax Savings = Depreciation Expense * Tax Rate
Tax Savings = $82,800 * 35% = $28,980 per year
3. Calculate the after-tax operating cash flow:
After-tax Operating Cash Flow = Operating Cash Flow - (Operating Cash Flow * Tax Rate) + Tax Savings
After-tax Operating Cash Flow = $173,600 - ($173,600 * 35%) + $28,980 = $140,030 per year
4. Calculate the net cash flows for each year:
Year 0: Initial Investment + Equipment Cost = -$40,500 - $589,000 = -$629,500
Years 1-4: After-tax Operating Cash Flow = $140,030
Year 5: After-tax Operating Cash Flow + Salvage Value + Recovered Net Working Capital = $140,030 + $175,000 + $40,500 = $355,530
5. Use the net cash flows to find the IRR. You can use a financial calculator or software like Excel to do this:
Net Cash Flows: -629,500, 140,030, 140,030, 140,030, 140,030, 355,530
IRR ≈ 18.43%
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which of the following describes a stipulation? multiple choice the court's right to provide gap-fillers in a contract additional terms in a contract in order to make it binding an offeror's right to determine the manner of acceptance an offeree's right to determine who to contract with
The statement that describes a stipulation is (B) "additional terms in a contract in order to make it binding."
A stipulation is an additional requirement or condition that is added to a contract in order to make it binding. Stipulations can be added by either party in order to clarify or define the terms of the contract. They are used to ensure that both parties are aware of their obligations and responsibilities under the contract. A stipulation may be a requirement for a specific action or event to occur before the contract can be completed, such as the delivery of goods or the completion of a project.
Option B is answer.
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during 2021, it costs north company $18 per unit to produce part t5. during 2022, the unit cost has increased to $21 per unit. in 2022, south company has offered to provide part t5 for $16 per unit to north. none of the fixed manufacturing overhead costs are avoidable. which of the following statements is true with regard to this make-or-buy decision?
Incremental costs are $8 per unit. Incremental revenues are $3 per unit. Differential costs are $11 per unit. Net relevant costs are $8 per unit.
The differential costs are $8 per unit in this make-or-buy decision.
During 2021, it costs North Company $18 per unit to produce part T5. During 2022, the unit cost has increased to $21 per unit. In 2022, South Company has offered to provide part T5 for $16 per unit to North. None of the fixed manufacturing overhead costs are avoidable. With regard to this make-or-buy decision, the following statement is true:
Differential costs are $8 per unit.
Here's the step-by-step explanation:
1. Calculate the increase in production costs:
In 2022, the production cost per unit increased from $18 to $21. The difference is $21 - $18 = $3.
2. Calculate the cost difference between producing and buying:
The cost of buying part T5 from South Company is $16 per unit, while the production cost in 2022 is $21 per unit. The difference is $21 - $16 = $5.
3. Determine the differential costs:
Since the production cost increased by $3, and the cost difference between producing and buying is $5, the differential cost is the sum of these two costs: $3 + $5 = $8.
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count, entries and income statement) felicia through 2021 as follows. 2015 2016 2017 2018 2019 2020 2021 rashad corporation has pretax financial income (or loss) from 2015 income (loss) $ 48,000 (150,000) 90,000 30,000 105,000 (60,000) 130,000 tax rate 25% 20 20 20 20 25 25
Calculate Rashad Corporation's taxable income and income tax expense (or benefit) for each year using the given tax rates.
2015: Taxable income = $48,000 - (25% x $48,000) = $36,000, Tax expense = 25% x $36,000 = $9,000
2016: Taxable income = ($150,000) - (20% x $150,000) = ($180,000), Tax benefit = 20% x $180,000 = ($36,000)
2017: Taxable income = $90,000 - (20% x $90,000) = $72,000, Tax expense = 20% x $72,000 = $14,400
2018: Taxable income = $30,000 - (20% x $30,000) = $24,000, Tax expense = 20% x $24,000 = $4,800
2019: Taxable income = $105,000 - (20% x $105,000) = $84,000, Tax expense = 20% x $84,000 = $16,800
2020: Taxable income = ($60,000) - (25% x ($60,000)) = ($75,000), Tax benefit = 25% x $75,000 = ($18,750)
2021: Taxable income = $130,000 - (25% x $130,000) = $97,500, Tax expense = 25% x $97,500 = $24,375
Prepare an income statement for Rashad Corporation for each year showing its income before income taxes, income tax expense (or benefit), and net income (or loss).
2015:
Income before income taxes: $48,000
Income tax expense: $9,000
Net income: $39,000
2016:
Income before income taxes: ($150,000)
Income tax benefit: ($36,000)
Net loss: ($114,000)
2017:
Income before income taxes: $90,000
Income tax expense: $14,400
Net income: $75,600
2018:
Income before income taxes: $30,000
Income tax expense: $4,800
Net income: $25,200
2019:
Income before income taxes: $105,000
Income tax expense: $16,800
Net income: $88,200
2020:
Income before income taxes: ($60,000)
Income tax benefit: ($18,750)
Net loss: ($41,250)
2021:
Income before income taxes: $130,000
Income tax expense: $24,375
Net income: $105,625
Note: The income tax benefit or expense is shown as a separate line item on the income statement to indicate its impact on net income.
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Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $100,000 tax basis in his LLC interest that includes his $90,000 share of Sierra Vista’s general debt obligations. By the end of the year, Farell’s share of Sierra Vista’s general debt obligations has increased to $100,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $120,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $5,000. Farell is single and has no other sources of business income or loss
Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1.
List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations.
Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1.
List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations.
Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $260,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return in year 1.
Assuming Farell is deemed to be an active participant in Sierra Vista and he has a $260,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return in year 1.
Farell will deduct a total trade or business loss of $380,000 on his tax return in year 1.
To determine how much of the Sierra Vista loss Farell can deduct on his tax return for year 1, we need to consider the tax-basis, at-risk, and passive activity loss limitations.
1. Tax-basis limitation: Farell's tax basis in his LLC interest is $100,000 at the beginning of the year. He can deduct losses up to his tax basis.
2. At-risk limitation: Farell's share of Sierra Vista's general debt obligations increased from $90,000 to $100,000. Since his tax basis includes the debt obligations, Farell is considered at-risk for $100,000.
3. Passive activity loss limitation: Farell does not materially participate in Sierra Vista, and his share of the losses is $120,000. He has passive income from the Riverwoods Partnership of $5,000. Farell can only deduct passive losses to the extent of his passive income.
Considering these limitations:
- Farell can deduct $5,000 of the Sierra Vista loss against his passive income from the Riverwoods Partnership.
- The remaining $115,000 loss is suspended due to the passive activity loss limitation.
Assuming Farell is deemed to be an active participant in Sierra Vista and has a $260,000 loss from a sole proprietorship:
- Farell can deduct the full $120,000 loss from Sierra Vista, as it is no longer subject to the passive activity loss limitation.
- He can also deduct the $260,000 loss from the sole proprietorship.
- Therefore, Farell will deduct a total trade or business loss of $380,000 ($120,000 + $260,000) on his tax return in year 1.
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when various profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole, this is referred to as . a. risk compartmentalization b. risk packaging c. global common values d. the sullivan principles e. a vertical system
When various profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole, this is referred to as: risk compartmentalization. The correct option is A.
Risk compartmentalization occurs when different departments or units within an organization operate in isolation, leading to a lack of communication and understanding of the overall risks faced by the company.
This can result in unintended consequences and can negatively impact the company's performance, as individual departments may focus on their own objectives without considering the potential effects on the organization as a whole.
To mitigate risk compartmentalization, companies should encourage interdepartmental communication, share information, and establish a comprehensive risk management strategy.
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Complete question:
when various profit centers within corporations are unaware of the overall consequences of their actions on the firm as a whole, this is referred to as .
a. risk compartmentalization
b. risk packaging
c. global common values
d. the Sullivan principles
e. a vertical system
Prepare a statement of retained earnings for Tidal Co. for the year ended December 31, 2020, using the following data. (Amounts to be deducted should be indicated by a minus sign.) Cash dividends declared and paid in 2020 Retained earnings at December 31, 2019 Net income in 2020 $11,000 66,000 $39,000 Answer is complete but not entirely correct. Tidal Co. Statement of Retained Earnings For Year Ended December 31, 2020 Retained earnings, Dec. 31, 2019 $ 66,000 Plus net income 39,000 Less dividends 94,000 Retained earnings, Dec. 31, 2020 $ 199,000 ®
Tidal Co. Statement of Retained Earnings
For Year Ended December 31, 2020
Retained earnings, Dec. 31, 2019 $ 66,000
Plus net income 39,000
Less dividends 11,000
Retained earnings, Dec. 31, 2020 $ 94,000
A statement of retained earnings is used to show the changes in a company's retained earnings balance over a specific period.
To prepare Tidal Co.'s statement of retained earnings, we start with the retained earnings balance at the beginning of the year (December 31, 2019) of $66,000, then add the net income of $39,000 earned during the year.
Next, we subtract the cash dividends declared and paid during the year of $11,000 to get the new retained earnings balance at the end of the year (December 31, 2020) of $94,000.
It's important to note that the final balance of retained earnings will be reported on the balance sheet under the stockholders' equity section.
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Discuss whether any part of the $2 million constitutes ordinary income (4 marks). Wholesaler Pty Ltd has 3 purchase contracts (for Products X, Y and Z) with three different suppliers, as well as 3 sales contracts (with department store A for Product X, with department store B for Product Y, and with department store C for Product Z). The seller that supplies Wholesaler with Product X cancels the 10 year contract when the contract still has 4 years to run. The contract for the purchase of Product X represents 20% of Wholesaler's buying costs, though sales of Product X account for 80% of its total revenue. The seller (that cancelled the contract) gives Wholesaler $2 million as compensation for cancelling the remainder of the contract. In its own internal documents, the seller that compensated Wholesaler stated that $1.5 million of this was calculated on the basis of future loss of profits, and $0.5m was for loss of Wholesaler's reputation due to the cancellation. As it turned out the reputation loss of Wholesaler was very limited and it quickly recovered its reputation in a matter of months.
In determining whether any part of the $2 million constitutes ordinary income for Wholesaler Pty Ltd, we need to consider the nature and purpose of the compensation.
Out of the $2 million, $1.5 million was calculated as compensation for the future loss of profits due to the cancelled contract. Since this amount represents a reimbursement for anticipated earnings from sales, it can be considered as ordinary income.
On the other hand, the $0.5 million provided for the loss of Wholesaler's reputation is more difficult to categorize. Although the company recovered its reputation quickly, this compensation was intended to address a non-recurring issue and is not directly tied to the company's regular business operations. Therefore, it is less likely to be considered ordinary income. In summary, out of the $2 million compensation, $1.5 million may constitute ordinary income due to its connection with anticipated sales revenue, while the remaining $0.5 million is less likely to be considered ordinary income, as it was intended for reputation loss, which is not directly related to the company's normal business operations.
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Respond to the following prompts. If appropriate, include personal experience in your response:
Explain in what circumstances a company needs to decentralize. Describe how performance evaluation systems are used to control organizations. Using a manufacturer of hand sanitizer as an example, explain how the balanced scorecard can be used to assess company performance.
Decentralization is often necessary for companies that are looking to expand their operations or streamline their decision-making processes. In particular, companies that operate in multiple locations, with various divisions or business units, may find that decentralizing can help them better manage their operations and respond to local market conditions.
Performance evaluation systems are used to control organizations by providing a way to measure progress and identify areas where improvements are needed. These systems typically involve setting specific goals or targets for different parts of the organization, and then tracking performance against those targets over time. By doing so, managers can identify areas where the organization is performing well, as well as areas where improvements are needed.
One example of how the balanced scorecard can be used to assess company performance is in the case of a manufacturer of hand sanitizer. The balanced scorecard is a tool that is often used to help companies align their business strategies with their performance metrics. In the case of a hand sanitizer manufacturer, the balanced scorecard might include metrics related to production efficiency, product quality, and customer satisfaction. By tracking these metrics over time, the company can identify areas where improvements are needed, such as in the efficiency of their manufacturing processes, or in the quality of their products. Additionally, by using the balanced scorecard, the company can ensure that its business strategies are aligned with its performance goals, and that it is working towards achieving its long-term objectives.
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What makes monopolistic competition to differ from a perfect competitor?
Answer:
A monopolistic market and a perfectly competitive market are two market structures that have several key distinctions in terms of market share, price control, and barriers to entry. In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services, and that firm has total market control. In contrast to a monopolistic market, a perfectly competitive market is composed of many firms, where no one firm has market control.
On January 1, 2010, Velde Company (lessee) entered into a four-year, noncancellable contract to lease a computer from Exceptional Computer Company (lessor). Annual rentals of $17,208 are to be paid each January 1, Velde will assume responsibility for all normal ownership costs, and at the end of the lease period the computer will be returned to Exceptional Computer Company. The cost of the computer to Exceptional Computer Company was $60,000 and it had an estimated useful life of four years and no residual value Velde has an incremental borrowing rate of 12% but has knowledge that Exceptional Computer Company used a rate 10% in setting annual rentals. Collection of the rentals is reasonably predictable and there are no important uncertainties regarding future unreimbursable costs to be incurred by the lessor.
To determine whether this lease should be classified as an operating lease or a finance lease, we need to apply the criteria set out in the accounting standard ASC 842.
First, we need to calculate the present value of the lease payments using the lessee's incremental borrowing rate of 12%. The lease payments are $17,208 per year for four years, so the total lease payments are $68,832. Using a present value calculator, we find that the present value of the lease payments is $54,115.
Next, we need to compare the present value of the lease payments to the fair value of the computer, which is $60,000. Since the present value of the lease payments is less than the fair value of the computer, we can conclude that this lease does not transfer ownership of the computer to the lessee and should be classified as an operating lease.
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When a taxpayer experiences a net loss from a nonresidence (rental property):
1.the taxpayer will not be allowed to deduct the loss under any circumstance if the taxpayer does not have passive income from other sources.
2.the loss is fully deductible against the taxpayer's ordinary income no matter the circumstances.
3.if the taxpayer is not an active participant in the rental, the taxpayer may be allowed to deduct the loss even if the taxpayer does not have any sources of passive income.
4.if the taxpayer is not allowed to deduct the loss due to the passive activity loss limitations, the loss is suspended and carried forward until the taxpayer generates passive income or until the taxpayer sells the property.
A taxpayer experiences a net loss from a nonresidence (rental property) if the taxpayer is not allowed to deduct the loss due to the passive activity loss limitations, the loss is suspended and carried forward until the taxpayer generates passive income or until the taxpayer sells the property.
When a taxpayer experiences a net loss from a nonresidence (rental property):
1. The taxpayer will not be allowed to deduct the loss under any circumstance if the taxpayer does not have passive income from other sources. This statement is not entirely correct. If the taxpayer is an active participant in the rental activity, they may be able to deduct up to $25,000 of the loss against their ordinary income, subject to income limitations.
2. The loss is fully deductible against the taxpayer's ordinary income no matter the circumstances. This statement is incorrect. The deductibility of the loss depends on the taxpayer's participation in the rental activity and whether they have passive income from other sources.
3. If the taxpayer is not an active participant in the rental, the taxpayer may be allowed to deduct the loss even if the taxpayer does not have any sources of passive income. This statement is incorrect. If the taxpayer is not an active participant, the loss can only be deducted against passive income from other sources.
4. If the taxpayer is not allowed to deduct the loss due to the passive activity loss limitations, the loss is suspended and carried forward until the taxpayer generates passive income or until the taxpayer sells the property. This statement is correct. Suspended losses can be carried forward to offset future passive income or until the property is sold, at which point the losses can be deducted against the gain from the sale.
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Fill in the blank.
____ communication provides flexibility and mobility for laptop users to work wherever they can tap into a wireless network.
Wireless communication provides flexibility and mobility for laptop users to work wherever they can tap into a wireless network.
The transmission of voice and data through a wireless network is done without the use of wires or cables. Data is sent by electromagnetic signals that are broadcast from sending facilities to intermediate and end-user devices in place of a physical link.Faster and more rapid data transmission is occurring. reduced installation and maintenance costs when compared to other networks. Anywhere and at any time, anyone can access a wireless network.
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