Answer:
Option A is correct.
Explanation:
Option A is correct because a monopolistically competitive firm has a downward-sloping demand curve and the marginal revenue curve is steeper than the demand curve that lies below the demand curve. Moreover, in this market, the product sold can be differentiated on the basis of quality. Further, in this market, the marginal cost curve first decreases then start increasing and cuts the marginal revenue curve.
Blossom Company accumulates the following data concerning a mixed cost, using miles as the activity level.
Miles Driven Total Cost Miles Driven Total Cost
January 6,400 $11,320 March 6,800 $12,000
February 6,000 10,800 April 6,560 11,592
Required:
Compute the variable cost per mile using the high-low method.
Answer:
just add and subtract the last three numbers and theres your answer love <3
Explanation:
Stephenson Co.'s 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is correct?
A. The bond's coupon rate exceeds its current yield.
B. The bond's yield to maturity is greater than its coupon rate.
C. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850.
D. The bonds current yield exceeds its yield to maturity.
Answer:
The bond's yield to maturity is greater than its coupon rate.
Explanation:
At a discount, the price of the bond is less than its face value, from bond theory principles, this is likely to happen when YTM is more than the coupon rate of the bond. Due to this the present value of the coupons and their face value are going to be lower than 1000 since YTM is greater.
The coupon rate is given as annual interest divided by face value
While
The yield is interest/ current price.
The answer to the question is therefore
The bond's yield to maturity is greater than its coupon rate.
Which of the following is an example of an oligopolistic market with a standardized product?
A) The market for breakfast cereal.
B) The market for aluminum.
C) The market for jewelry.
D) The market for automobiles.
Answer:
B) The market for aluminum.
Explanation:
An oligopoly is a market form in which the market or industry is dominated by a small group of large sellers. Oligopolies can result from various forms of collusion that reduce market competition which then majorly leads to higher prices for consumers. They have their own market structure.
Oligopolistic market with standardised product is an homogeneous oligopoly that is an oligopoly in which firm produce a standardised product. And a good example of that is the Aluminum market.
The practice of changing prices for products in real time in response to supply and demand conditions is referred to as
Answer:
Dynamic pricing
Explanation:
In simple words, Dynamic pricing, often alluded to as rising rates, vibrant pricing as well as period-based pricing, relates to the pricing technique under which companies set variable prices for goods or commodities on the basis of existing consumer demands. A main benefit of competitive pricing seems to be the opportunity to increase the income with each consumer.
Global Engineering's actual operating income for the current year is $50,000. The flexible budget operating income for actual volume achieved is $40,000, while the static budget operating income is $53,000. What is the sales volume variance for operating income
Answer:
$13,000 Unfavorable
Explanation:
Calculation for the sales volume variance for operating income of Global Engineering's
Using this formula
Sales volume variance for operating income=Static budget operating income -Fexible budget operating income
Where,
Static budget operating income =$53,000
Fexible budget operating income=$40,000
Let plug in the formula
Sales volume variance for operating income=$53,000-$40,000
Sales volume variance for operating income=$13,000 Unfavorable
Therefore the sales volume variance for operating income will be $13,000 Unfavorable
According to the Prebisch-Singer hypothesis, this fate has befallen many developing countries given the general decline in commodity prices in relation to the price of manufactured goods.A) TrueB) False
Answer: True
Explanation;
Generally, manufactured goods cost more than the commodity goods that they were manufactured from due to the value that has been added to them. This is what the Prebisch-Singer hypothesis argues, that commodity prices decline overtime in relation to manufacturing good prices.
This is a fate that has befallen many developing countries as many of them export commodity goods to developed countries who then add value to them, turning them into manufactured goods and then selling them back to developing countries at a higher price thereby negatively affecting their balance of trade.
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $420,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $1,890,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $16,400. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ 420,000 Allowance for Doubtful Accounts $ 16,400 Bad Debt Expense $ c. Determine the net realizable value of accounts receivable. $
Answer and Explanation:
The computation is shown below:
a. Amount of adjusting entry for uncollectible accounts
= Estimated balance of Allowance for Doubtful Accounts + debit balance
= $16,400 + $4,000
= $20,400
b. Adjusted balances
For account receivable
= account receivable
= $420,000
For allowance for doubtful debts
= Estimated amount
= $16,400
For bad debts
= AMount of adjusting entry
= $20,400
c. Net realizable value
= Account receivable balance - estimated balance of Allowance for Doubtful Accounts
= $420,000 - $16,400
= $403,600
Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Assets 2006 2005 Liabilities and Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 58.5 Accounts payable 73.5 Accounts receivable 39.6 Notes payable / shortterm debt 9.6 Inventories 42.9 Current maturities of longterm debt 36.9 Other current assets 3.0 Other current liabilities 6.0 12.0 Total current assets 144.0 Total current liabilities 132.0 LongTerm Assets LongTerm Liabilities Land 62.1 Longterm debt 168.9 Buildings 91.5 Capital lease obligations Equipment 99.6 Less accumulated depreciation () (52.5) Deferred taxes 22.8 22.2 Net property, plant, and equipment 200.7 Other longterm liabilities Goodwill 60.0 Total longterm liabilities 191.1 Other longterm assets 63.0 42.0 Total liabilities 323.1 Total longterm assets 242.7 Stockholders' Equity 63.6 Total Assets 386.7 Total liabilities and Stockholders' Equity 386.7 Refer to the balance sheet above. Luther's current ratio for 2006 is closest to:
Answer:
Luther Corporation
Current Ratio for 2006 is closest to:
1.1 : 1
Explanation:
a) Data and Calculations:
Total Current Assets = $144 million
Total Current Liabilities = $132 million
Current Ratio = Current Assets/Current Liabilities
= $144/$132
= 1.1 : 1
b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million. The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts. Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average. This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.
Samantha and Darren are 50% owners in Black Hat Corp., a calendar year S corporation. On June 29, Samantha sold her shares to Endora. The financial results of Black Hat using normal accounting rules are as follows: Income through June 30 = $34,000; income from July 1 - Dec 31 = $76,000 for total income for the year of $110,000. All the shareholders would like to limit the tax liability from the S corporation income. Considering these facts, would Endora prefer the daily method or the normal accounting method to allocate income? What method would Samantha prefer?
Answer:
Endora would prefer DAILY METHOD while Samantha would prefer NORMAL ACCOUNTING METHOD
Explanation:
Based on the information given above Endora would most likely prefer the DAILY METHOD reason been that she would most likely allocate her income over the whole year while Samantha would prefer NORMAL ACCOUNTING METHOD reason been that the normal accounting method will often tend to recognizes a higher share of the income mostly in the second half of the year.
Therefore Endora would prefer DAILY METHOD while Samantha would prefer NORMAL ACCOUNTING METHOD.
If Tex's Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying
Answer:
$210,000
Explanation:
The computation of the external price is shown below
Making cost = buying cost
$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)
$220,000 = External price + $10,000
So,
External price = 210,000
Hence, the same is to be considered
Therefore the external price is $210,000
While spring cleaning, Ramon found an entire box of unreported receipts for his sole proprietor business. Ramon wants to amend his return to claim these business deductions. Which form(s) and/or schedule(s) does he need to send to the IRS to amend the return
Answer:
3. Form 1040X, Schedule C, and any other forms or schedules affected by the change in his income.
Explanation:
This question is missing the possible answers:
Form 1040X. Form 1040X and a copy of his original return. Form 1040X, Schedule C, and any other forms or schedules affected by the change in his income. Form 1040X, Schedule C, and a copy of each receipt left off the original returnThe IRS requests that any change or amendment to a tax return must include a copy of all the tax forms and/or schedules that were presented with the original filing that is being amended. If the amendment affects more than 1 filing, you must include all the forms and schedules that were filed before and are being affected by the amendment.
100 million diluted shares outstanding trading at $37.50 per share. The company has $1 billion of debt outstanding with a cost of debt at 6.5% at a marginal tax rate of 40%. The company has $100 million of cash on its balance sheet. What is the enterprise value of Correct Inc.
Answer:
$4,650,000,000
Explanation:
We will use the formula below to calculate the enterprise value of Correct inc.
Enterprise value = Market value capital and debts - Cash and investments
= 100 million diluted shares × 37.50 per share + $1 billion of debt outstanding - $100 million cash
= $3750m + $1000m - $100m
= $4,650,000,000.
S Corporation makes 50,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 10.90 Direct labor $ 9.90 Variable manufacturing overhead $ 4.15 Fixed manufacturing overhead $ 5.10 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to S Corporation for this motor is $28.15. If S Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Multiple Choice $160,000 $367,500 ($95,000) $255,000
Answer:
If the company makes the motors, it will save $160,000.
Explanation:
Giving the following information:
Production= 50,000 units
Production costs:
Direct materials $10.90
Direct labor $9.90
Variable manufacturing overhead $4.15
The price offered to S Corporation for this motor is $28.15.
We will take into account only the avoidable costs:
Make in-house:
Total cost= 50,000*(10.9 + 9.9 + 4.15)= $1,247,500
Buy:
Total cost= 50,000*28.15= $1,407,500
If the company makes the motors, it will save $160,000.
If the Board of Governors of the Federal Reserve increases the reserve requirement then the money supply will decline. True False
Answer:
i think the answer is true please let me know if it is incorrect
Explanation:
Laurie's Ice Rink keeps an extra $1,500 in its checking account simply in case an emergency arises. Which type of motive for holding cash does this represent
Answer:
Precautionary Motive
Explanation:
there are three motives for Holding Money . They are :
1. Transaction Motive: the motive for holding money is to be able to carry out transactions such as to pay for goods or services.
2. Precautionary Motive: the motive for holding money is to meet unforeseen circumstances or emergencies. e.g. if my car suddenly develops a fault.
3. Asset or Speculative Motive: the motive for holding money is to take advantage of the rise and fall of prices of bonds and securities.
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares sold. The initial offering price was $17.50 per share, and the stock rose to $19.40 per share in the first few minutes of trading. Raven paid $860,000 in direct legal and other costs and $330,000 in indirect costs.What was the flotation cost as a percentage of funds raised?
Answer:
22.38%
Explanation:
Raven corporation has just gone public
They received $15.90 for each 25 million shares that was sold
The first step is to calculate the net amount raised
Net amount that was raised= 15.90×25,000,000 = 397,500,000
397,500,000-860,000-330,000
= 396,310,000
Underwriter spread= 17.50-15.90
= 1.6 per shares
Total underwriter spread= per share spread× number of shares that were offered
= 1.6×25,000,000
= 40,000,000
Total direct costs= 40,000,000+860,000
=40,860,000
Indirect flotation cost= indirect cost+price appreciation
= 330,000+(19.40-17.50)×25,000,000
= 330,000+1.9×25,000,000
=330,000+47,500,000
= 47,830,000
Total flotation cost= 47,830,000+40,860,000
= 88,690,000
Therefore, the flotation cost as a percentage of funds raised can be calculated as follows
= 88,690,000/396,310,000 × 100
= 0.2238×100
= 22.38%
Hence the flotation costs as a percentage of funds raised is 22.38%
Bramble Corp. recorded operating data for its shoe division for the year. Sales$1300000 Contribution margin360000 Controllable fixed costs180000 Average total operating assets720000 How much is controllable margin for the year
Answer:
controllable margin for the year is $180,000.
Explanation:
The Controllable Margin is the Profit that is controllable by the divisional manager.
Calculation of Controllable Margin :
Contribution Margin $360,000
Less Controllable fixed costs ($180,000)
Division Controllable Margin $180,000
Which of the following is an advantage of a CD?
usually a higher interest rate
saving for a short-term purpose
flexible withdrawals
can be cashed out every year
Answer:
An Advantage of a Certificate of Deposit (CD) is:
It usually offers a higher interest rate.
Explanation:
For instance, Jones Company can purchase a certificate of deposit (CD) from Bank A. The CD is a financial product that pays a locked and premium interest rate. In exchange for this locked and higher interest rate, Jones Ltd agrees to leave a lump-sum deposit which it cannot withdraw from until a predetermined period of time. A CD is not a saving for a short-term purpose, and does not allow for flexible withdrawals unless after the maturity date has been reached. This implies that Jones Ltd cannot cash it out unless after the maturity date.
Which of the following is not a reason for a direct materials quantity variance? a.purchasing of inferior raw materials
Answer: d. increased material cost per unit
Explanation:
Direct materials quantity variance has to do with the difference between the budgeted quantity of materials and the actual quantity of materials used. It speaks to only the quantity used and nothing else.
An increased cost of the material is not relevant to the quantity of material used because whilst for instance it measures if there was a price change in the material, the materials quantity variance checks if there has been a change in quantity.
Beginning in 6 years, (beginning of years 6, 7,8 and 9) Sally Mander will receive four annual benefit checks of $12,000 each. If Sally assumes an interest rate of 7%, what is the present value of these checks?
Answer:
$28,980
Explanation:
The present value can be calculated by multiplying annual cashflows with the discount factor. The table to calculate the Present Value has been made below.
DATA
Annual benefit = $12,000
Discount rate = 7%
Present value =?
Calculation
Year Cash inflows Discount factor Present Value
6 $12,000 0.666 $7,992
7 $12,000 0.623 $7,476
8 $12,000 0.582 $6,984
9 $12,000 0.544 $6,528
Total $28,980
Fiedler's contingency model of leadership has made an important and lasting contribution to the study of leadership because it: Group of answer choices suggests that organizations need to engineer the situation to fit the leader's preferred style. is the only theory to adopt the implicit leadership perspective. was the first theory to recognize the existence of leadership substitutes. discovered that effective leaders do not have a common set of competencies. is the only leadership theory to adopt a contingency approach.
Answer:
suggests that organizations need to engineer the situation to fit the leader's preferred style.
Explanation:
Fiedler is of the view that a person's leadership style is a product of experiences throughout their lifetime. So it is difficult to change it.
He suggested that instead of teaching a particular leadership style and forcing people to align with them, it is better to adjust the situation to an individual's leadership style.
The weakness of this is that the leader may be more effective in a particular situation and weak in another one
The cash register tape for Bluestem Industries reported sales of $28,372.00.
Record the journal entry that would be necessary for each of the following situations. (a) Cash to be accounted for exceeds cash on hand by $52.00. (b) Cash on hand exceeds cash to be accounted for by $26.50. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)
Answer:
Bluestem Industries
Journal Entries
a) Cash to be accounted for exceeds cash on hand by $52.00
Debit Cash Shortage $52.00
Credit Cash Account $52.00
To record the cash shortage.
b) Cash on hand exceeds cash to be accounted for by $26.50
Debit Cash Account $26.50
Credit Cash Overage $26.50
To record the cash overage.
Explanation:
Handling cash in Bluestem Industries will occasionally give rise to cash shortages and cash overages. The best practise is to enact a company policy to guide actions and decisions with respect to cash shortages and overages. And then the accounting for these will be in accordance with the policy. However, the problem of shortages and overages may be pointing at other underlying problems involved in cash handling. Where only the shortages are reported frequently, then the company may need to find ways to minimize cash handling, e.g. using credit cards to receive payments and refunding employees for expenses through bank accounts.
In decision making under ________, there are several possible outcomes for each alternative, and the decision maker knows the probability of occurrence of each outcome
Answer: risk
Explanation:
In the decision making under risk, there are several possible outcomes for each alternative, and the decision maker knows the probability of occurrence of each outcome.
Unlike in uncertainties whereby the decision maker won't know the probability of the occurrence of the outcomes, in risk, one is aware.
Under what circumstances could the Government use open market operations?
Answer:
market operations ? markets have operations?
Answer:
the federal reserve buys and sells government securities control the money supply and interest rates.
Solve the consumer’s problem for John’s optimal demand for Germ-X and Purell. (You should find actual numbers representing the quantity of Germ-X chosen and the quantity of
Answer:
Hello your question is incomplete below is the missing part and the needed diagram
suppose John is shopping and has $20 to spend on hand sanitizer. He can go with Germ-X (G) at $1 per fluid ounce (pG=1), or he can purchase purell (P) at $1.25 per fluid ounce (Pp=1.25). His utility function for the two different hand sanitizers is as follows:
U = G +1.1P
where G and P are measured in fluid ounces.
Solve the consumer’s problem for John’s optimal demand for Germ-X and Purell. (You should find actual numbers representing the quantity of Germ-X chosen and the quantity of purell chosen
ANSWER: The solution = (Germ-x,Purell ) = (20,0).
Explanation:
The consumers problem for John's optimal demand for Germ-x and Purell as seen in the diagram can solved by John going maximizing his utility given the constraint of the budget,
that means that John will purchase/spend the constrained budget of ($20) on Germ-x since the unit price of Germ X is at $1 while Purell's unit price is at $1.25 per fluid ounce
For a recent year, TechMart reported sales of $36,241 million. Its gross profit was $9,785 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.)
Answer:
$26,456 million.
Explanation:
The formula to calculate the gross profit is:
Gross profit=Sales-cost of goods sold
Using this formula we can calculate the cost of goods sold as we have the information about the gross profit and the sales:
Cost of goods sold=Sales-Gross profit
Cost of goods sold=$36,241-$9,785
Cost of goods sold=$26,456
According to this, TechMart's cost of goods sold was $26,456 million.
In response to the new employee end-of-shift policy Brianna proposes that Ollie pay its employees on their breaks instead of making them clock out. Brianna is most likely utilize the ________ influence tactic
Answer: exchange
Explanation: Brianna is most likely to use the exchange influence tactic which is given as a tactic that suggests that making express or implied promises and trading favors. This is observed when she proposes that Ollie pay its employees on their breaks instead of making them clock out in response to the new employee end-of-shift policy. The tactics is especially useful for influencing peers and surbodinates.
Suppose we have the following scenario: Multiplier: 1.2 Tax Rate: 16% Increase in spending: $175 Billion Total Deficit in the previous year: $1 Trillion Based on the information provided what is the deficit that arises from the increase in spending from the government
Answer:
Deficit = $141.4 billion
Explanation:
Multiplier (K) = ΔY {GDP(income)} / ΔI {Govt spending}
ΔY = K * ΔI
ΔY = 1.2 * $175 billion
ΔY = $210 billion (income)
Tax applicable on income that generate revenue:
Revenue = 210 billion * 16%
Revenue = 210 billion * 0.16
Revenue = $33.6 billion
Deficit = Government spending - Revenue
Deficit = $175 billion - $33.6 billion
Deficit = $141.4 billion
Sweet Acacia Industries reported net income of $1.40 million in 2022. Depreciation for the year was $224,000, accounts receivable decreased $490,000, and accounts payable decreased $392,000.
Required:
Compute net cash provided by operating activities using the indirect approach.
Answer:
Net Cash flow from operating = $ 1,722,000
Explanation:
To determine the net cash flow from operating activities. We will adjust the net income as follows; all decrease in assets and increase in liabilities are added and all increase in assets and decrease in liabilities are subtracted.
All non- cash expenses would be added back and all non-cash income would be deducted from the net income. Notable here is depreciation a non-cash expense which must be added back to the net income
This principle is applied below:
$
Net Income 1,400,000
Adjustments:
Add depreciation expense 224,000
Add decrease in current asset 490,000
less decrease in current liabilities (392,000)
Net Cash flow from operating 1,722,000
Net Cash flow from operating = $ 1,722,000
You bought one of Great White Shark Repellant Co.’s 6.6 percent coupon bonds one year ago for $1,056. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 4.5 percent. The bonds have a par value of $1,000. If the inflation rate was 3.2 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
14.25%
Explanation:
For computing the total real return first we have to find out the present value and the required return which is shown below:
Given that,
Future value = $1,000
Rate of interest = 4.5%
NPER = 11 years
PMT = $1,000 × 6.6% = $66
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula the present value is $1,179.11
Now the required return is
= ($1,179.11 + $66) ÷ ($1,056) -1
= 17.91%
And finally,
total real return
= ($1.1791 ÷ 1.032) - 1
= 14.25%