Answer:
c. will generate substantial revenue if demand is elastic.
Explanation:
If there is an increase in the excise tax on the alcohol so it would produced the high revenue since the demand for the alcohol is elastic also the excise tax represent the application with respective to the price elasticty of demand
Therefore as per the given options, the option c is correct
And, the same is to be considered
You want to have $19,000 in 7 years for a dream vacation. If you can earn an interest rate of .3 percent per month, how much will you have to deposit today
Answer:
Initial investment= $14,773.22
Explanation:
Giving the following information:
Future value (FV)= $19,000
Number of periods (n)= 7*12= 84 months
Interest rate (i)= 0.003
To calculate the initial investment (PV), we need to use the following formula:
PV= FV / (1 + i)^n
PV= 19,000 / (1.003^84)
PV= $14,773.22
Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 500 $2.40 Apr. 20 Purchase 400 2.50 700 units of inventory were sold during the month. Ending inventory assuming FIFO would be:
Answer:
Ending inventory= $500
Explanation:
Giving the following information:
Apr. 1 Beginning inventory 500 $2.40
Apr. 20 Purchase 400 2.50
700 units of inventory were sold during the month
First, we need to determine the number of units in ending inventory:
Ending inventory in units= 900 - 700= 200
Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the last units incorporated into the inventory.
Ending inventory= 200*2.5
Ending inventory= $500
Martin's coin collection contains hundred 1960 silver dollars. Her grandparents purchased them at their face value ($50 each) in 1960. These coins have appreciated by 3.2 percent annually. How much will the collection be worth in 2020
Answer:
FV= $33,094.2
Explanation:
Giving the following information:
Present value (PV)= 50*100= $5,000
Number of periods (n)= 2020 - 1960= 60 years
Apreciation rate (g)= 3.2% = 0.032
To calculate the value of the collection in 2020, we need to use the following formula:
Future value= PV*(1 + g)^n
FV= 5,000*(1.032^60)
FV= $33,094.2
Ted's Co. offers a zero coupon bond with an 11.3% yield to maturity. The bond matures in 16 years. What is the current price of a $1,000 face value bond
Answer:
Zero-cupon bond= $835.45
Explanation:
Giving the following information:
Face value= $1,000
YTM= 11.3%
Years to maturity= 16 years
To calculate the price of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= 1,000 / (1.113^16)
Zero-cupon bond= $835.45
You want to invest $25,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 4% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment
If you want to invest $25,000 and are looking for safe investment options. The effective rate of return that you will earn from this investment is 4.08%.
How to find the Effective rate of return?Given data:
Investment = $25,000
Rate = r = 8%
Number of months = 12 × 2 = 24 months (Bimonthly)
Now let find the Effective rate of return
Effective rate of return = (1 + 0.04/24)^24 -1
Effective rate of return = 4.08%
Therefore we can conclude that the Effective rate of return is 4.08%.
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A salt mine you inherited will pay you $25,000 per year for 25 years, with the first payment being made today. If you think a fair return on the mine is 7.5%, how much should you ask for it if you decide to sell it
Answer: $299574.17
Explanation:
From the question, we are given the information that a salt mine inherited will pay $25,000 per year for 25 years, with the first payment being made today. If the fair return on the mine is 7.5%, the amount that should be asked for it's to be sold goes thus:
Periodic amount = $25000
Return on mine = 7.5%
Number of years = 25
Selling amount will then be:
= 25000 + [-PV(7.50%,24,25000,0)]
= 25000 + [-PV(0.075,24,25000,0]
= $299574.17
=
Chester's balance sheet has $77,842,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beChester's book value
Answer:
$84,842,000
Explanation:
The book value is total assets less total liabilities
Book value = initial equity + equity issued + net income
$77,842,000 + $4,000,000 + $3,000,000 = $84,842,000
Helen Ming receives a travel allowance of $120 each week from her company for time away from home. If this allowance is taxable and she has a 28 percent income tax rate, what amount will she have to pay in taxes for this employee benefit
Answer:
$1,747.2
Explanation:
Calculation to determine what amount will she have to pay in taxes for this employee benefit
First step is to determine the Annual travel allowance
Using this formula
Annual travel allowance=Weekly allowance × 52 weeks
Let plug in the formula
Annual travel allowance=$120 × 52 weeks
Annual travel allowance=$6,240
Now let determine the Annual tax
Using this formula
Annual tax=Annual travel allowance × Tax rate
Let plug in the formula
Annual tax=$6,240 × 0.28
Annual tax=$1,747.2
Therefore the amount that she will have to pay in taxes for this employee benefit is $1,747.2
Use solver to answer the following question: A corrupt shipping concern wishes to maximize the revenue they make from an analytics-bereft manufacturing concern, which has 4 factories and 3 warehouses. Factory 1 supplies 1000 units per week and is charged $5, $3, and $4 to ship each unit to Warehouses 1, 2, and 3 respectively. Factory 2 supplies 1200 units each week and is charged $4, $3, and $3 to ship to Warehouses 1, 2, and 3. Factory 3 supplies 1500 units and is charged $6, $2, and $5 to ship to the three warehouses. Factory 4 supplies 1800 units and is charged $6, $2, and $4. If Warehouse 1 requires 3000 units per week, Warehouse 2 demands 1000, and Warehouse 3 demands 1500, what is the maximum it would cost them in shipping to fulfill each warehouse's demand?
Julie is purchasing a home for $169,000.00. Her loan has been approved for a 30-year fixed-
rate loan at 5 percent annual interest. She will pay 20 percent of the purchase price as a down
payment. What is the total interest she will pay on her loan?
O $122,877.92
O $126,168.64
$135,200.87
O$142,613.78
The total interest she will pay on her loan is $ 126080.80
Step-by-step explanation:
Given : Julie is purchasing a home for $169,000.
She will pay 20 percent of the purchase price as a down payment.
So, 20% of $169,000 is given as ,
169000\cdot\frac{20}{100}=33800
Thus, amount left to pay = 169,000 - 33800 = $ 135200
Now, Her loan has been approved for a 30-year fixed-rate loan at 5 percent annual interest.
So, Finding monthly payment using formula,
P=\frac{PV\cdot r}{1-(1+r)^{-n}}
Where, PV = present amount
P = monthly payment
r is interest rate per period
n is time per period
Here, PV = 135200
time period = 30 × 12 = 360 months
Monthly interest rate = 5 % = \frac{5}{1200}
Substitute, we have,
P=\frac{135200\cdot\frac{5}{1200}}{1-\left(1+\frac{5}{1200}\right)^{-\left(30\cdot12\right)}}
Simplify, we have,
P = 725.78
Thus, Monthly payment is $ 725.78
Thus, the value of loan after 30 years becomes,
725.78\cdot30\cdot12=261280.8
Total interest paid = Total loan amount after 30 years - present amount
Total interest paid = 261280.8 - 135200 = 126080.8
Thus, The total interest she will pay on her loan is $ 126080.80
The theory of constraints says thatqueues should not be allowed to form in the plant.bottleneck resources should be idle whenever possible.the bottleneck is the most critical resource.labor expense reduction should be the primary goal.
Answer:
the bottleneck is the most critical resource
Explanation:
The constraint theory represent that the bottleneck would be considered as the most critical resources as it decided how much long the process could be delayed and due to this the objectives and the goals of the organization would be highly impacted
Therefore as per the given situation, the above represent the answer
The chairperson can also be a minute taker in the meeting ?
This information relates to Sheridan Company for the year 2022.
Retained earnings, January 1, 2022 $91,100
Advertising expense 2,450
Dividends 8,160
Rent expense 14,200
Service revenue 78,880
Utilities expense 3,260
Salaries and wages expense 40,800
Prepare an income statement for the year ending December 31, 2022.
Answer and Explanation:
The preparation of the income statement is presented below:
Service revenue $78,880
Less: expenses
Advertising expense $2,450
Rent expense $14,200
Utilities expense $3,260
Salaries and wages expense $40,800
Net income $18,170
hence, the net income is $18,170
The same is to be considered
Project planning teams use project life cycle models because various types of projects have differing demands. Which of the following sequences of stages is most appropriate for a life cycle model for research and development (R & D) projects?
a. define - measure - analyze - improve - control.
b. concept definition - demonstration - development - production.
c. pre-planning - design - procurement - construction - start up.
d. concept - requirements - design - code - test - turnove.
Answer:
concept definition - demonstration - development - production
Explanation:
Research and development is mainly concerned with the development of a new concept, incorporation into a product, and delivery of product to the market as a way to improve the bottom line of the company.
It allows companies maintain a competitive edge over others in the same industry by bring new and innovative products to the customer.
The stages of R&D include: concept definition - demonstration - development - production.
The innovative idea is first defined and feasibility is evaluated.
The concept is demonstrated to show practicability of the idea.
The concept is further developed to suit customer needs.
Finally production and marketing is done to make product available to the customer.
Your great-great-grandmother left you her recipe book. It contains amazing, delicious cake recipes, and you are certain you can make a fortune with them if you just set up your bakery right. You are considering three possible designs for your bakery:
Design 1:
A factory in which assembly-line workers create low-cost, standardized cakes to be sold in grocery stores
Design 2:
A factory in which all cakes are created by machines; technology will enable you to shift from cake to cake as customer needs change
Design 3:
A personalized wedding cake business in which you will create custom delicacies for your clients
According to Joan Woodward, ____________ is classified as a continuous process production company.
a. Design 1.
b. Design 2.
c. Design 3.
Answer:
design 2
Explanation:
Joan Woodward conducted a study from 1954 - 1955 to determine the effect of organisation style on the success of the organisation
she grouped firms into 3 groups based on their level of technological complexity. the groups include :
1. Small Batch and Unit Production : this group meets small orders. they cater to the specific needs of customers
An example is a personalized wedding cake business in which you will create custom delicacies for clients
2. Large Batch and Mass Production : this group make large orders that do not meet the specific needs of customers. Most of the orders go into inventory.
An example is a factory in which assembly-line workers create low-cost, standardized cakes to be sold in grocery stores
3. Continuous Process Production : in this group, the entire production system is mechanized.
The Get Well Health Care Company directors noticed a significant drop in the company’s customer service ratings. It was determined that an Agile Lean approach to improving the methods for receiving, processing, and resolving customer questions and complaints as needed. The CEO of the company is anxious to get the effort underway. You have been appointed to lead this effort. You are told by the CEO when she appoints you that the employees of the customer service unit are unaware of the change that is to occur, nor are they aware of the drop in the customer service ratings. You decide to use the ADKAR Model to assist the employees in this unit address the change.
In this assignment, you are to list and explain each step of the ADKAR Model. You are to then describe what action(s) you would take under each of these steps to help the employees of the customer service unit navigate this change.
Answer:
ADKAR is
A : is the awareness to need a change
D : is the desire to change
K : is the knowledge of how to change
A : is the ability to change
R : is the reinforcement to change
Explanation:
In order to improve methods of customer service a change is required in the Get Well Health Care Company and I will be using ADKAR model to implement this change.
ADKAR is
A : is the awareness to need a change
D : is the desire to change
K : is the knowledge of how to change
A : is the ability to change
R : is the reinforcement to change
Firstly the change is required in Get Well Heath Care Company because there is a significant drop in customer service ratings which will make the company lose business.The change is desired because the company and its employees wants to continue to provide better health care to its customers.The employees needs to understand how to satisfy the customer with their service to get a better customer service rating.Are the employees able to implement this change? are they enough motivated to provide a better customer service?Are the employees going to reinforce the change implemented or will they go back to their old practices of customer service?You consider buying a share of stock at a price of $24. The stock is expected to pay a dividend of $1.32 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $27. The stock's beta is 0.6, rf is 10%, and E[rm] = 20%. What is the stock's abnormal return?
Answer:
2%
Explanation:
Actual return = [(Dividend + Capital gain) / Purchase price] * 100
= [($1.32 + $27 - $24) / $24] * 100
= 18%
Expected return = rf + Beta*(E(rm) - rf)
= 10% + 0.6*(20% - 10%)
= 16%
Abnormal return = Actual return - Expected return
Abnormal return = 18% - 16%
Abnormal return = 2%
When actions by individuals in a organization are directed toward the goal of furthering their own self-interests, it is termed as
Answer:
Organizational politics.
Explanation:
An interest group can be defined as a group of people sharing common aims, ideas and concerns, which seeks to influence government or a public policy.
This ultimately implies that, the interest groups consists of individuals who are only concerned about influencing public policy of the government on the basis of a particular common aim and interest.
Similarly, when actions by individuals in a organization are directed toward the goal of furthering their own self-interests such as being promoted, traveling to get estacodes, training, courses, etc., it is generally termed as organizational politics. Thus, you will see such employees (individuals) getting closer to top the executive management and patronizing them, in order to be in their good books.
Granger Printing currently uses a manufacturing facility costing $560,000 per year; 90% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 10% of the facility and increase the overall costs of maintaining the space by 11%. If the incremental method were used, what amount of cost would be allocated to the start-up business
Answer:
the amount of cost that allocated is $61,600
Explanation:
The computation of the amount of cost that allocated is shown below;
= The costing of the manufacturing facility × increase percentage of the overall cost for maintaining the space
= $560,000 × 11%
= $61,600
hence, the amount of cost that allocated is $61,600
Croissants Corporation and Donuts Company transfer their assets to Edibles Inc., which manages the assets and distributes the profits to Croissants and Donuts. This arrangement is a. none of the choices. b. a joint venture. c. a syndicate. d. a business trust.
Answer:
Edibles Inc.
This arrangement whereby Croissants Corporation and Donuts Company transfer their assets to Edibles Inc. is called:
d. a business trust.
Explanation:
Edibles Inc., as a trustee, carries out business transactions on behalf of Croissants Corporation and Donuts Company, who are regarded as the trust's members (or beneficiaries). It is a formal structure that safeguards an entity's assets against creditors and ensures that the business is professionally run in line with accepted practices.
Marc, a single taxpayer, earns $122,000 in taxable income and $3,800 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2018, what is his effective tax rate? (Use Tax rate schedules)
https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/spilker_10e/taxrateschedule2018.htm
Multiple Choice
24.99%
18.74%
19.91%
26.68%
None of the choices are correct.
Answer:
None of the choices are correct
Explanation:
Given:
Income from city bond = $122,000
Find:
Effective tax rate
Computation:
We know thar Marc is single tax payee
So,
As per rule
Federal tax = $14,089.50 + (Income - $82,500)24%
Federal tax = $14,089.50 + ($122,000 - $82,500)24%
Federal tax = $23,569.50
Effective tax rate = (Federal tax / Income)100
Effective tax rate = [23,569.50/122,000]100
Effective tax rate = [0.1931]100
Effective tax rate = 19.31% (Approx.)
he appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash Flow 1 $700 2 700 3 0 4 1,100 What is the present value of the cash flows
Answer:
Thus, the present value is $2045.52.
Explanation:
Use the below formula to find the present value:
Present value = FV ÷ (1 + r/4)^(n*4)
Present value :
[tex]=\frac{700}{(1 + \frac{0.08}{4} )^{1 \times 4} } + \frac{700}{(1 + \frac{0.08}{4} )^{2 \times 4} } + \frac{0}{(1 + \frac{0.08}{4} )^{3 \times 4} } +\frac{1100}{(1 + \frac{0.08}{4} )^{4 \times 4} } \\ \\= \frac{700}{1.0824}+\frac{700}{1.1716} +0+\frac{1100}{1.3727} \\= 2045.52[/tex]
Thus, the present value is $2045.52.
You are deciding where to eat dinner tonight. Eating at Soup Plantation costs $15 and it gives you $20 worth of benefit. Eating at Del Taco costs $5 and gives you $7 worth of value. What is the opportunity cost of eating at Soup Plantation
Answer: $7
Explanation:
Due to scarcity of resources, economic agents have to make choices and the real cost of the forgone alternative when a choice is made is referred to as the opportunity cost.
Based on the information given, the opportunity cost of eating at Soup Plantation will be the $7 worth of value that will be gotten when one eats at Del Taco.
If a firm sells 6 units at a price of $6 with a total cost of $7, what is the firm's profit from selling 6 units
Answer:
$6 (loss)
Explanation:
Profit per unit = Selling Price - Cost Price
= $6 - $7
= - $1
Total profit / (loss) = - $1 x 6 = ($6)
Conclusion
The result is a loss simply because the Cost is higher than the Selling Price
Highly Suspect Corp. has current liabilities of $450,000, a quick ratio of .89, inventory turnover of 6.5, and a current ratio of 1.7. What is the cost of goods sold for the company
Answer:
See below
Explanation:
First , we will compute current ratio
Current ratio = Current asset / Current liabilities
1.25 = Current ratio / $415,000
Current asset = $415,000 × 1.25
Current assets = $518,759
Next is to calculate quick ratio
Quick ratio = Current asset - Inventory / Current liabilities
0.79 = $518,750 - Inventory / $415,000
0.79 × $415,000 = $518,750 - Inventory
$327,850 = $518,750 - Inventory
Inventory = $518,750 - $327,850
Inventory = $190,900
Inventory turnover = Cost of goods sold / Inventory
9.5 = Cost of goods sold / $190,900
Cost of goods sold = 9.5 × $190,900
Cost of goods sold = $1,813,550
On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $255,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the
1. sum-of-the-years'-digits method.
2. double-declining balance method.
2020 2021
Sum-of-the-Years'-Digits Method
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation
Year-End Book Value
Depreciation Expense for the Year
Double-Declining Balance Method
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation
Year-End Book Value
Depreciation Expense for the Year
Assume the company had used stright line depreciation during 2020 and 2021. During 2022, the company determined that the equiptment would be useful to the company for only one more year beyond 2022. Salvage value is estimated at 20000. Compute the amount of depreciation expense for the 2022 income statement.
Assume the company had used straight-line depreciation during 2020 and 2021. During 2022, the company determined that the equipment would be useful to the company for only one more year beyond 2022. Salvage value is estimated at $340,000. What is the depreciation base of this asset?
Answer:
Swifty Company
1. Sum-of-the-years'-digits method:
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 977,500 2,541,500
Year-End Book Value $5,143,500 $3,578,500
Depreciation Expense for the Year 977,500 $1,564,000
2. Double-declining balance method:
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 1,224,000 3,182,400
Year-End Book Value $4,896,000 $2,937,600
Depreciation Expense for the Year 1,224,000 $1,958,400
Straight-line Method:
3. The amount of depreciation expense for the 2022 income statement is:
= $2,170,250.
4. In 2022, the depreciation base of this asset is:
= $4,020,500
Explanation:
a) Data and Calculations:
July 1, 2020: Cost of snowmaking equipment = $6,120,000
Estimated salvage value of the equipment = 255,000
Depreciable amount of the equipment = $5,865,000
Estimated useful life of the equipment = 5 years
Annual depreciation expense = $1,173,000 ($5,865,000/5)
Sum-of-the-Years'-Digits Method =15 (5+4+3+2+1)
Calculation of depreciation expense:
2020 = $977,500 (5/15 * $5,865,000)/2
2021 = $1,564,000 (4/15 * $5,865,000)
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 977,500 2,541,500
Year-End Book Value $5,143,500 $3,578,500
Depreciation Expense for the Year 977,500 $1,564,000
Double-Declining Balance Method (100/5 * 2) = 40%
Calculation of depreciation expense:
2020 = $1,224,000 (40% * $6,120,000)/2
2021 = $1,958,400 (40% * $4,896,000)
2020 2021
Equipment $6,120,000 $6,120,000
Less: Accumulated Depreciation 1,224,000 3,182,400
Year-End Book Value $4,896,000 $2,937,600
Depreciation Expense for the Year 1,224,000 $1,958,400
Straight-line method:
Annual depreciation expense = $1,173,000
2020: Depreciation expense = $586,500
2021: Depreciation expense = $1,173,000
2022: Depreciable amount = $4,340,500 ($4,360,500 - $20,000)
Depreciation expense = $2,170,250 ($4,340,500/2)
2020 2021 2022
Equipment $6,120,000 $6,120,000 $6,120,000
Less: Accumulated Depreciation 586,500 1,759,500 3,929,750
Year-End Book Value $5,533,500 $4,360,500 $2,190,250
Depreciation Expense for the Year 586,500 1,173,000 2,170,250
Straight-line method:
Annual depreciation expense = $1,173,000
2020: Depreciation expense = $586,500
2021:
Depreciation expense = $1,173,000
Accumulated depreciation = $1,759,500 ($586,500 + $1,173,000)
Year-End Book Value $4,360,500 ($6,120,000 - $1,759,500)
2022 Estimated Salvage Value = $340,000
2022: Depreciation basis = $4,020,500 ($4,360,500 - $340,000)
Depreciation expense = $2,010,250 ($4,020,500/2)
Rate of Return if State Occurs Stock State of Economy Probability of State of Economy Stock A Stock B C Boom
Answer:
mmmmmmmmmmmmmmmmmmm?
Company FIN3610-FTRA has a six-year project that requires an initial investment of $30,000. Every year, the project will pay fixed costs of $20,000 to produce the product. Also, we know that the variable costs per unit will be $36, and the price per unit will be $58. The required return is 10%. Please calculate the financial break-even quantity for this project. (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Answer:
909.09
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$20,000 / 58 - 36 = 909.09
projects variable labor costs of $21,500 in March when 8,600 units are produced. If production is expected to drop to 8,000 units in April, what is the expected labor cost in April
Answer:
Total direct labor cost=$20,000
Explanation:
First, we need to calculate the direct labor cost per unit:
Direct labor cost per unit= total cost / number of units
Direct labor cost per unit= 21,500 / 8,600
Direct labor cost per unit= $2.5
Now, the total cost for 8,000 units:
Total direct labor cost= 2.5*8,000
Total direct labor cost=$20,000
A liquidity trap is a situation in which: _________
a. using expansionary monetary policy is not effective because, the nominal interest rate is almost zero.
b. lenders are trapped by large loans with declining rates of return. using expansionary monetary policy is not effective, because the real interest rate is negative.
c. aggregate demand falls, because consumers do not have enough liquidity to consume.
d. using expansionary fiscal policy is not effective because, the budget is in a deficit.
In monetary policy, reference to a zero bound on interest rates means that the central bank can no longer reduce the interest rate to encourage economic growth. As the interest rate approached the zero bound, the effectiveness of monetary policy as a tool was assumed to be reduced.