Answer:
A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to:_______.
5. establish production facilities in all 4 geographic regions, produce and market branded footwear with a 5-star or higher S/Q rating, and achieve global market share leadership in both private-label and branded footwear.
Explanation:
The U.S. market is an important market with global reach and image which a U.S. based company cannot neglect. So, establishing production facilities in all 4 geographic regions will help the company to achieve higher U.S. market share and enhance its domestic and global image.
Market branded footwear companies like Nike, Adidas, Jordan, Reebok, etc., are already competing with about 5 others in the global market for footwear. For a company to belong to their class, it must achieve what they have already achieved, especially 5-star or higher S/Q rating.
The Business Strategy Gaming (BSG) is a rating consumer group that "rates the styling and quality of the footwear of all competitors and assigns a styling-quality or S/Q rating of 0 to 10 stars to each company's branded footwear offerings." According to medium.com, to improve BSG rating, "it is important for each to aim for at least 20% market share in each and every segment. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company."
Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inventory. The customer picks up the entire order the same day and pays $ 1.4 million upfront in​ cash; you also issue a bill for the customer to pay the remaining balance of $ 1.8 million in 30 days. Suppose your​ firm's tax rate is 0.0 % ​(i.e., ignore​ taxes). Determine the consequences of this transaction for each of the​ following: a. Revenues b. Earnings c. Receivables d. Inventory e. Cash
Answer and Explanation:
The consequences of given transactions are as follows
a. Revenues rise by $3.2 million as the firm received an order
b. Earnings rise by $1.5 million as the firm received an order and it filled by an orders i,e ($3.2 - $1.7)
c. Receivables rise by $1.80 million as it determines the remaining balance which ultimately increased the receivable balance
d. Inventory declined by $1.7 million as the order is filled which ultimately declines the stock
e. The cash would rise by $1.4 million
= Earnings - receivable + inventory
= $1.5 million - $1.80 million + $1.7 million
= $1.4 million
Your company is evaluating four locations in Asia for its new customer center; according to the information provided in the table and using a rating system of 1 (least desirable) to 100 (most desirable), evaluate each factor.Factor Weight Rating Scale (1-100) A B C DMarket Size 0.5 95 60 50 35Future demand 0.3 90 70 50 35Legal system 0.2 80 80 70 60Tariffs 0.1 70 80 40 40Using only the results of a multi-criteria analysis, which location should you recommend?A. Country CB. Country AC. Country A and Country CD. Country DE. Country BYour company wants to take advantage of the growing Asian market and plans to build a manufacturing facility in the southeast region to support the expansion. Management identified a set of critical factors to evaluate the prospective location, as shown in the table below; they used a rating system of 1 (least desirable) to 100 (most desirable) to evaluate each factor.Factor Weight Rating Scale (1-100) Taiwan Thailand SingaporeTechnology 0.15 85 95 40Level of Education 0.15 85 20 95Economic aspects 0.20 70 65 75Social aspects 0.10 85 50 85Political risk 0.40 30 70 70First, identify which location you would recommend based on the current scores shown in the table.If political unrest broke out in Thailand, lowering the political risk score for that location to 30, would this change your original conclusion? Indicate your original and updated recommendation, respectively, based exclusively on the multi-criteria scores.A. Thailand and TaiwanB. Taiwan and TaiwanC. Thailand and SingaporeD. Singapore and ThailandE. Singapore and Singapore
Answer:
1. B. Country A
2. E. Singapore and Singapore
Explanation:
1. Country A
= (0.5 * 95) + (0.3 * 90) + ( 0.2 * 80) + (0.1 + 70)
= 45 + 27 + 16 + 7
= 95
Country B
= (0.5 * 60) + (0.3 * 70) + ( 0.2 * 80) + (0.1 + 80)
= 30 + 21 + 16 + 8
= 75
Country C
= (0.5 * 50) + (0.3 * 50) + ( 0.2 * 70) + (0.1 + 40)
= 25 + 15 + 14 + 4
= 58
Country D
= (0.5 * 35) + (0.3 * 35) + ( 0.2 * 60) + (0.1 + 40)
=17.5 + 10.5 + 12 + 4
= 44
2.
Taiwan
= (0.15*85 + 0.15*85 + 0.2*70 + 0.1*85 + 0.4*30)
= (12.75 + 12.75 + 14 + 8.5 + 12)
= 60
Thailand
= (0.15*95 + 0.15*20 + 0.2*65 + 0.1*50 + 0.4*70)
= (14.25 + 3 + 13 + 5 + 28)
= 63.25
Singapore
= (0.15*40 + 0.15*95 + 0.2*75 + 0.1*85 + 0.4*70)
= (6 + 14.25 + 15 + 8.5 + 28)
= 71.75
First Recommendation - Singapore
Thailand political risk falls to 30.
= (0.15*95 + 0.15*20 + 0.2*65 + 0.1*50 + 0.4*30)
= (14.25 + 3 + 13 + 5 + 12)
= 47.25
Second Recommendation - Singapore
V\\\To record a sales transaction, use: Multiple Choice Create Invoices > Receive Payment > Make Deposits Create Purchase Order > Receive Payment > Make Deposit Receive Payment > Create Sales Receipts > Make Deposits Create Invoices > Create Sales Receipts > Make Deposits
Answer:
Create Invoices > Receive Payment > Make Deposits
Explanation:
A sales transaction can be defined as a business transaction between two or more individuals or organizations, which generally involves the buyer purchasing either a tangible or intangible goods and services from the seller (service provider) through the use of money, credit cards or vouchers.
After successfully initiating, processing and execution of a sales transaction, the following are important to consider.
To record a sales transaction, use:
1. Create Invoices: a sales invoice is defined as an accounting document which is used for recording the essential details of the payment of goods and services made by a customer. It is the first step in the sales transaction, as it is expected that the seller or service provider makes it available and issues it for all sales transactions. Also, it is an essential accounting document which serves as an evidence of payment and delivery of goods and services to the customer.
2. Receive Payment: after filling out the sales invoice, the cashier is expected to receive cash or any other form of payment made available to the customer as a medium of payment. At this stage, the cashier or sales representative should ensure the payment is confirmed to be complete and we'll received.
3. Make Deposits: the cashier then goes ahead to record the sales transaction in balance sheet of the organization, after the customer has successfully paid for the service being provided or received.
In a nutshell, for a number of sales the above mentioned steps should be followed by sales persons or cashiers judiciously after all transactions are done.
Duval Co. issues four-year bonds with a $117,000 par value on January 1, 2019, at a price of $112,870. The annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31.
Requried:
Prepare an amortization table for these bonds. Use the straight-line method of interest amortization.
Answer and Explanation:
The preparation of the amortization table is presented below:
Semiannual Discount Unamortized Discount Carrying Value
Period-End amortized
1/1/19 $4,130 $ 112,870
($117,000 - $112,870)
6/30/19 $3,613.75 $113,386.25
($4,130 - $4,130 ÷ 8 years) ($112,870 + $516,25)
12/31/19 $3,097.50 $113,902.50
($3,613 - $4,130 ÷ 8 years) ($112,.870 + $516,25)
6/30/20 $2,581.25 $114,418.75
($3,097.50 - $4,130 ÷ 8 years) ($113,902 + $516.25)
12/31/20 $2,065.00 $114,935.00
($2,581.25 - $4,130 ÷ 8 years)
6/30/21 $1,548.75 $115,451.25
($2,065 - $4,130 ÷ 8 years)
12/31/21 $1,032.50 $115,967.50
($1,548.75 - $4,130 ÷ 8 years)
6/30/22 $516.25 $116,483.75
($1,032.50 - $4,130 ÷ 8 years)
12/31/22 $- $ 117,000.00
($516.25 - $4,130 ÷ 8 years)
The same method is applicable for other time period
Assume you sell short 1,000 shares of common stock at $35 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $25 per share
Answer:
57.14%
Explanation:
Calculation for the rate of return if you repurchase the stock at $25 per share
First step is to calculate for the profit on stock
Using this formula
Profit on stock =( Sales amount of Common stock per share- Repurchased stock per share)*(Share of common stock)
Let plug in the formula
Profit on stock = ($35 - $25)(1,000)
Profit on stock=$10*10,000
Profit on stock = $10,000
Second step is to calculate for the initial investment
Using this formula
Initial investment= (Sales amount of Common stock per share*Share of common stock×Percentage of the initial margin
Let plug in the formula
Initial investment = ($35)(1,000)(.5)
Initial investment= $17,500
The rate of return will be :
Profit on stock / Initial investment
Rate of return=$10,000/$17,500
Rate of return= 57.14%
Therefore what would be your rate of return if you repurchase the stock at $25 per share will be 57.14%
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,500 Cost of goods sold 7,700 Depreciation 445 Earnings before interest and taxes $ 1,355 Interest paid 90 Taxable income $ 1,265 Taxes 443 Net income $ 822 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 230 $ 265 Accounts payable $ 1,460 $ 1,580 Accounts rec. 1,010 910 Long-term debt 1,020 1,345 Inventory 1,680 1,670 Common stock 3,260 2,980 Total $ 2,920 $ 2,845 Retained earnings 600 850 Net fixed assets 3,420 3,910 Total assets $ 6,340 $ 6,755 Total liab. & equity $ 6,340 $ 6,755 What is the return on equity for 2017?
Answer:
The return on equity for 2017 is 21.46 %
Explanation:
Return on equity measures the return earned on the owners investment in the company.
Return on equity = Net Income for the year / Total Shareholders Funds × 100
= $822 / ( $2,980 + $850) × 100
= 21.4621 or 21.46 %
Note : That Retained earning is part of Owners Investment.
Conclusion :
The return on equity for 2017 is 21.46 %
How could reading a use-and-care booklet for a product help you decide whether to buy it?
Answer:
Yes, the use-and-care booklet helps in deciding whether to buy the product or not.
Explanation:
Following are the reasons how a use-and-care booklet may be helpful in deciding whether to buy or not:
It will be helpful in deciding whether the product meets the customer requirement or not. It also helps to understand the functioning of the product and master it. This is again helpful to decide whether the product is easy to operate or not. The features of the product are listed in the use-and-care booklet which reflects what actually we are paying for and makes it easy for a customer to compare two similar products. Furthermore, the use-and-care booklet possesses all type of information necessary to operate the product.All this ease the way in deciding which product to purchase.
When this firm is producing at the profit-maximizing price and quantity, its total revenue is: g
Answer:
$2500
Explanation:
As we know that the Profit - Maximising condition of the monopoly says that the maximum profit is at the position where the marginal cost becomes equal to marginal revenue. Hence, we can say that:
Marginal Revenue = Marginal Cost
This is the point on the demand curve which is exactly above the point of intersection of two lines MR and MC which highlights the price and the quantity that will equal Marginal revenue with marginal cost.
Now here, the point on the demand curve which is exactly above the point of intersection of two lines MR and MC gives price per unit of $25 and 100 units of demand.
Since
Total Revenue = P * Q
= $25 per unit * 100 units
= $2,500 is the total revenue which is the maximum profit and entity can earn.
Paul's Dogs Corp. has 9 percent coupon bonds making annual payments with a YTM of 8.5 percent. The current yield on these bonds is 8.85 percent. How many years do these bonds have left until they mature
Answer:
4.17 years
Explanation:
For Bond,
Let's take Bond Par Value = $1,000
Coupon Rate = 9%
YTM = 8.5%
Current Yield = Annual Dividend/Current Price
0.0885 = 90/Bond Price
Bond Price = $1,016.95
Calculating Time left to Maturity,
Using TVM Calculation,
T = [FV = 1000, PV = 1016.95, PMT = 90, I = 0.085]
T = 4.17 years
So,
Time left to Maturity = 4.17 years
A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually. Calculate the current price of the bond. Group of answer choices $1579.46 $918.89 $789.29 $1000.00 $743.29
Answer:
$918.89
Explanation:
For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Future value = $1,000
Rate of interest = 8% ÷ 2 = 4%
NPER = 5 years × 2 = 10 years
PMT = $1,000 × 6% ÷ 2 = $30
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the current price of the bond is $918.89
At the beginning of the year, Vendors, Inc., had owners' equity of $49,265. During the year, net income was $5,625 and the company paid dividends of $3,965. The company also repurchased $7,915 in equity. What was the owners' equity account at the end of the year?
Answer:
The answer is $43,010
Explanation:
This is the changes in the equity statement of account.
Owner's equity at the beginning of the year--------------------------------- $49,265
Net income for the year---- $5,625
Dividend paid---------------------($3,965)
Equity repurchased-------------($7,915)
Owners' equity account at the end of the year----------------------------- $43,010
"Gamboa, Inc. sold 100 selfie sticks for $25 each. If the selfie sticks had an average cost of $1 to produce, how much profit did the company make
Answer:
$2400
Explanation:
Average cost is the ratio of total cost of production to the total number of units produced, it is the sum of both the average fixed cost and the average variable cost. The average cost is given by the formula:
Average cost = Total cost / number of units.
Given that:
The total number of units produced = 100 selfie sticks, Average cost = $1 and Price of each selfie stick = $25
From Average cost = Total cost / number of units.
Substituting gibes:
$1 = Total cost / 100 selfie stick
Total cost = $1 × 100 = $100
Total cost = $100
Revenue = Price per item × Number of items
Revenue = $25 × 100 = $2500
Profit = Revenue - Total cost
Profit = $2500 - $100 = $2400
Total cost = $2400
Cook-Rite Co. sold $173,000 of equipment during January under a two-year warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. On August 15, a customer required a $230 part replacement, plus $167 of labor under the warranty. Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales. Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank. Aug. 15
Answer and Explanation:
The journal entries are shown below:
a. On Jan 31
Warranty expense Dr ($173,000 × 6%) $10,380
To Product Warranty payable $10,380
(Being the warranty expense is recorded)
For recording this we debited the warranty expense as it increased the expenses and credited the product warranty payable as it also increased the liabilities
b. On Aug 15
Product Warranty payable $397
To Supplies $230
To wages payable $167
(Being the product warranty payable is recorded)
For recording this we debited the product warranty payable as it decreased the liabilities and the supplies and wages payable is credited as it decreased the assets and increased the liabilities
Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $2,430. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by:
a. the straight-line method
b. units-of-output method.
c. the double-dedining-balance method.
Answer:
purchase cost $86,670
useful life 3 years, 6,480 operating hours
residual value $2,430
a. the straight-line method
depreciation expense per year = ($86,670 - $2,430) / 3 = $28,080
depreciation year 1 = $28,080 x 9/12 = $21,060depreciation year 2 = $28,080 depreciation year 3 = $28,080 depreciation year 4 = $28,080 x 3/12 = $7,020b. units-of-output method.
depreciation per hour = ($86,670 - $2,430) / 6,480 = $13
depreciation year 1 = 1,200 x $13 = $15,600depreciation year 2 = 2,300 x $13 = $29,900depreciation year 3 = 1,900 x $13 = $24,700depreciation year 4 = 1,080 x $13 = $14,040c. the double-declining-balance method.
depreciation year 1 = 2 x 1/3 x $86,670 x 9/12 = $43,335depreciation year 2 = $14,445 + (2 x 1/3 x $28,890 x 9/12) = $28,090 depreciation year 3 = $4,815 + (2 x 1/3 x $9,630 x 9/12) = $9,630 depreciation year 4 = $1,605 + ($3,210 - $2,430) = $2,385Gates Appliances has a return-on-assets (investment) ratio of 13 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
Answer:
a. Return on Equity refers to how much income the company earned per dollar of investment. One formula for the Return on Equity is;
Return on Equity = Return on Assets * [tex]\frac{Total Assets}{ 1 - ( Debt/Assets)}[/tex]
Assuming assets are $1 this can be calculated by;
= 13% * [tex]\frac{1}{1 - 0.25}[/tex]
= 17.33%
b. If there is no debt then the Return on Investment will be the same as the return on Equity. However, proving it with the formula gives;
Return on Equity = Return on Assets * [tex]\frac{Total Assets}{ 1 - ( Debt/Assets)}[/tex]
= 13% * [tex]\frac{1}{1 -0}[/tex]
= 13%
When the price of butter was "low," consumers spent $5 billion annually on its consumption. When the price doubled, consumer expenditures increased to $7 billion. Recently you read that this means that the demand curve for butter is upward sloping (i.e., price and quantity demanded are directly related, as price increases, quantity demanded also increases). Do you agree? Explain.
Answer:
The correct answer is: No, this situation is impossible.
Explanation:
To begin with, in the reality the situation with the demand curve is all the opposite. The law of demand establishes that there is an indirect relationship between the price of a product and its quantity demanded in the market, therefore that when the price of a good increases then its quantity demanded decreases. And it is by logic as well, because no one will buy more of something if the products is more expensive than it was before. Therefore that the situation in the text is impossible and it could only be opposite.
Old process New process
Output per hour 100 125
Labor cost per 8 hour shift 240 160
Capital cost per 8 hour shift 640 1000
With the expansion, they have the opportunity to either use their current equipment or to invest in new technology. Based on the multi-factor productivity, which is the best option?
A. Use the new process.
B. They both are equally good.
C. Use the old process.
Answer:
C. Use the old process.
Explanation:
Multi-factor productivity is nothing but the measure that gives clear picture about the overall efficiency based on the labor and capital inputs used in the production process.
Total cost = Labour cost + Capital cost
Total cost = $240 + $640
Total cost (old) = $880
Total cost (new) = $160 + $1000
Total cost (new) = $1160
Multi-factor productivity = Outlay per hour * 8 / Total cost per hour per 8 hours
MFP (old) = 100 * 8 / 880 = 0.91
MFP (new) = 125 * 8 / 1160 = 0.86
So, based on MFP, Use the old process as it is more efficient.
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 360,000 Beginning merchandise inventory $ 24,000 Purchases $ 240,000 Ending merchandise inventory $ 12,000 Fixed selling expense $ ? Fixed administrative expense $ 14,400 Variable selling expense $ 18,000 Variable administrative expense $ ? Contribution margin $ 72,000 Net operating income $ 21,600 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales?
Answer:
1. a contribution format income statement
Sales $ 360,000
Less Cost of Sales (Variable Cost)
Opening Merchandise Inventory $ 24,000
Add Purchases $ 240,000
Less Closing Inventory ($ 12,000) ($ 252,000)
Less Variable Selling Expense ($ 18,000)
Less Variable administrative expense (18,000) ($288,000)
Contribution $ 72,000
Less Fixed Expenses ;
Fixed selling expense ($36,000)
Fixed administrative expense ($ 14,400) (50,400)
Net Operating Income $ 21,600
2. a traditional format income statement.
Sales $ 360,000
Less Cost of Sales (Variable Cost)
Opening Merchandise Inventory $ 24,000
Add Purchases $ 240,000
Less Closing Inventory ($ 12,000) ($ 252,000)
Gross Profit $ 108,000
Less Expenses ;
Selling Expenses
Variable Selling Expense ($ 18,000)
Fixed selling expense ($36,000)
Administrative Expenses
Variable administrative expense (18,000)
Fixed administrative expense ($ 14,400) (86,400)
Net Operating Income $ 21,600
3. $ 360
4. $288
5. $72
6. contribution format
Explanation:
Selling price per unit = Total Sales Revenue / Units Sold
= $ 360,000 / 1,000 units
= $ 360
variable cost per unit = Total Variable Cost / units sold
= $288,000 / 1,000 units
= $288
contribution margin per unit = Selling price per unit - variable cost per unit
= $ 360 - $288
= $72
Contribution format is more useful to managers because its shows separately the changes in variable costs and contribution with any change in units sales
Control is the mechanism for making sure the other three managerial functions--planning, organizing, and leadership--are operating smoothly.
A. True
B. False
Answer:
True.
Explanation:
Control is the mechanism for making sure the other three managerial functions such as planning, organizing, and leadership are operating smoothly.
Control is basically one of the key functions of the management in an organization and as such it is an essential goal-oriented function of managers or supervisors or the top executives working in an organization.
Generally, it is a management strategy that is being used to set predetermined standards and checking for compliance or accuracy among employees with these standards and requirements. Also, if the standards aren't followed by the employees, control is used to detect the errors and eventually to take corrective actions so as to achieve organizational goals, objectives, mission and vision.
Hence, the purpose of control by management is to minimize deviation from standards by the employees working in an organization and to ensure that their actions or activities are in tandem with the stated goals of an organization. Also, if an organization wishes to attain greater heights, remain competitive or have a competitive advantage over industry rivals it is very important that it's managers use control effectively.
In a nutshell, control is a strategic function that regulates, guides and protects the activities of an organization.
A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (Use 360 days a year.)
Answer:
$450
Explanation:
Calculation for the total interest due on the maturity date
Using this formula
Total interest=(Amount borrowed × Percentage of promissory note ×1/2)
Let plug in the formula
Total interest =$10,000 x 0.09x 1/2
Total interest= $450
Therefore the total interest due on the maturity date will be $450
According to question: The total interest due on the maturity date is $450
What is Interest due?
Interest due refers to the dollar amount required to pay the interest cost of the loan for the payment on period. When Most loan payments are structured so that each payment covers the interest charged on the loan for the period, Then the interest due, as well as reduces the principal balance of the loan.
Now the Calculation for the total interest due on the maturity date
We are using this formula that is:
The Total interest is=
(Amount borrowed × Percentage of promissory note ×1/2)
Then Let plug in the formula
The Total interest is =$10,000 x 0.09x 1/2
After that Total interest is = $450
Thus. the total interest due on the maturity date will be $450
Find more information about Interest due here:
https://brainly.com/question/25994247
An account credits interest at an effective rate of 4% for years 1-3, 5% for years 4-6, and 6% for years 7-9. Deposits of $1,000 are made into the account at the end of each year for 9 years. Calculate the accumulated value of the deposits at the end of 9 years.
Answer:
The accumulated value of the deposits at the end of 9 years is $11,242.18
Explanation:
Note: Find attached the excel file for the calculation.
Since the deposits are made into the account at the end of each year, interest will be earned on the opening balance for each year since it remains the account for 12 months.
No interest will be earned on the deposit of $1,000 made at the end of each year.
The opening balance, interest earned and the deposit for each year are then added together to obtain the closing balance for each year.
Since the closing balance for year 9 is $11,242.18, this is therefore the accumulated value of the deposits at the end of 9 years.
Your boss would like your help on a marketing research project he is conducting on the relationship between the price of juice and the quantity of juice supplied. He hands you the following document:
Price of Juice Quantity of Juice Supplied (Dollars per can) (Billions of cans)
0.50 750
0.75 1,000
1.00 1,500
1.25 2,000
Your task is to take this______________ and construct a graphical representation of the data. In doing so, you determine that as the price of juice rises, the quantity of juice supplied increases. This confirms the____________- .
Question
Your boss would like your help on a marketing research project he is conducting on the relationship between the price of juice and the quantity of juice supplied. He hands you the following document:
Price of Juice Quantity of Juice Supplied (Dollars per can) (Billions of cans)
0.50 750
0.75 1,000
1.00 1,500
1.25 2,000
Your task is to take this______________ and construct a graphical representation of the data. In doing so, you determine that as the price of juice rises, the quantity of juice supplied increases. This confirms the____________- .
A.quantity of juice supplied
B.law of supply
C.supply schedule
D. supply curve
Answer:
The correct answers are
C - Supply Schedule
B - Law of Supply
Explanation:
A Supply schedule is a tabular representation of the relationship between the price of a commodity and the quantity of it that is supplied.
The law of supply states that all things being equal, price and quantity supplied will always move in the same direction.
Cheers!
Assume there is a fixed exchange rate between the Euro and U.S. dollar. The expected return and standard deviation of return on the U.S. stock market are 16% and 13%, respectively. The expected return and standard deviation on the DAX stock market are 11% and 18%, respectively. The covariance of returns between the U.S. and German stock market is 1.5%. If you invested 50% of your money in the German (DAX) stock market and 50% in the U.S. stock market, the expected return on your portfolio would be
Answer:
13.50%
Explanation:
From the given information ; we use EXCEL to compute the Dataset given and use it to determine the expected return on what the stock portfolio would be.
Check the attached file below for the solution in Excel Sheet.
Suppose all stocks in Cheyenne’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
Answer:
Least Market Risk - Fitcom Corp. as it has the lowest beta.
Explanation:
According to the given table, as we can see that there are 4 types of stock, 4 investment, 4 beta, and 4 standard deviations. Now, as per the requirement of the question the least market risk to the portfolio of the stock is Fitcom Corp. as it has the lowest beta that is 0.50.
Therefore the right answer is Fitcom Corp.
Assume that both the supply and demand of bottled water rise in the summer but that supply increases more rapidly than demand. What can you conclude about the directions of the impacts on the equilibrium price and quantity
Answer:
there would be a rightward shift of the demand and supply curve.
there would be a rise in equilibrium quantity and an indeterminate effect on equilibrium price.
Explanation:
if the supply and demand of bottled water rises, there would be a rightward shift of the demand and supply curve.
a rise in the demand leads to a rise in price and quantity.
a rise in supply leads to a rise in quantity and a fall in price
the combined effect would lead to a rise in quantity and an indeterminate effect on price.
Texas Foods has a loan that requires one lump sum payment at the end of 12 years in the amount of $139,000. The interest rate is 5.8 percent, compounded monthly. What amount did the firm borrow
Answer:
Amount borrowed = $69,418.30
Explanation:
The amount borrowed by Texas Foods would be the present value of the $139,000 payable at the the ed of year 12 with a discount rate of 5.8% computed monthly
PV = A× (1+ r/m)^(-m×n)
P= Amount borrowed-?
A= Lump sum payment- 139,000
r- interest rate- 5,8%
m- number of times compounding is done- 12
r/m= 5.8%/12=0.483%
PV - 139,000 × (1+0.004833)^(-12× 12)=69,418.30
Amount borrowed = $69,418.30
The Don't Tread on Me Tire Company had Retained Earnings at December 31, 2015 of $200,000. During 2016, the company had revenues of $400,000 and expenses of $350,000, and the company declared and paid dividends of $11,000. Retained earnings on the balance sheet as of December 31, 2016 will be:
Answer:
$239,000
Explanation:
The computation of the ending retained earning balance is shown below:
As we know that
Ending retained earnings = beginning retained earnings + net income - dividend paid
where,
Net income is
= Revenues - expenses
= $400,000 - $350,000
= $50,000
And, the other items values would remain the same
So, the ending balance is
= $200,000 + $50,000 - $11,000
= $239,000
While Jon is walking to school one morning, a helicopter flying overhead drops a $100 bill. Not knowing how to return it, Jon keeps the money and deposits it in his bank. (No one in this economy holds currency.) If the bank keeps 5 percent of its money in reserves:
Answer and Explanation:
The computation is shown below:
a. The lending amount is
= $100 - $100 × 5%
= $100 - $5
= $95
b. The money in case of the change in the economy is
= Bill amount + lending amount
= $100 + $95
= $195
c. The money mutiplier is
= 1 ÷ required reserve ratio
= 1 ÷ 0.05
= 20
d. The money created is
= bill amount × money multiplier
= $100 × 20
= $2,000
Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders. The functions of these organizations have been established in international treaties. International businesses need to be aware of the functions of these organizations as they can have a profound impact on trade and commerce.
It is critical for businesses to understand the responsibilities of each organization as well as the rationale for its creation.
Match the description with the correct organization.
1. UN
2. GTO
3. WTO
4. Bretton Woods Institutions
5. GATT
A. The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.
B. As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.
C. A series of treaties that reduced barriers to trade.
D. Primarily responsible for policing world trade system.
E. Finance ministers and central bank governors of major economies coordinate policy on global financial crises.
Answer:
1. UN - As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.
The United Nations was founded in 1945 as a medium to coordinate human efforts on a global scale. They pursue through their subsidiary organizations, the welfare of humanity amongst other things.
2. GTO - Finance ministers and central bank governors of major economies coordinate policy on global financial crises.
Formed by 20 leading economies, the GTO was formed to combat the effects of the 2008 financial crises.
3. WTO - Primarily responsible for policing world trade system.
WTO regulates trade in the world to make it easier to transact.
4. Bretton Woods Institutions - The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.
5. GATT - A series of treaties that reduced barriers to trade.
The General Agreement on Tariff and Trade (GATT) is a treaty between over 140 nations in which they agree to make trade easier by reducing barriers and adhering to Internation best practices.
Globalization is supposed to provide diversification benefits that domestic sectors in US can not. Find three examples where foreign events led to major set-backs in US stock markets and Discuss why those events affected the US markets.
Answer:
Three examples of situations in which events abroad, due to globalization, affected the stock markets in the United States were:
-The confrontation between Saudi Arabia and Russia over the price of oil, started on March 8, 2020, caused the price of said good to drop by 35% and the shares of major companies in that market such as Exxon Mobil, Chevron or Shell fell in the same proportion.
-The emergence of the coronavirus as a global pandemic in China and Europe generated the speculation of many investors, who began to invest in pharmaceuticals such as Pfizer, Glaxo or Abbott, increasing the value of their shares.
-Brexit, by which the United Kingdom has separated from the European Union, the second largest economy in the world and whose main external partner is the United States, has caused a drop in European markets that has indirectly affected the American stock markets, by involve abrupt movement of the shares of major European companies such as Shell or Volkswagen in American stock exchanges.