Answer:
6.816%
Explanation:
The real rate of return is nominal rate of return less inflation rate
(1 + nominal rate ) = (1 + real rate ) x (1 + inflation rate)
= 1.097 = real rate x 1.027 = 1.06816 - 1 = 0.06816 = 6.816%
I hope my answer helps you
Identify each person below as structurally, frictionally, or cyclically unemployed.
a. Jake recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
b. Rosa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.
c. Latasha just graduated from college and is looking for a full-time position with an investment banking firm.
Answer and Explanation:
Structurally unemployed: It refers to mismatch between both the available jobs and the unemployed skills
Frictionally unemployed: This condition occurs when the workers or labors are not employed and looking for the work
Cyclically unemployed: It arise when where the aggregate demand for goods and services can not encourage full employment in an economy. This takes place during times of sluggish economic growth or times of economic contraction
Based on the explanation, the classification is as follows
a. Structurally unemployed
b. Cyclic unemployed
c. Frictionally unemployed
Accounts Receivable has a balance of $ 5 comma 000, and the Allowance for Bad Debts has a credit balance of $ 420. The allowance method is used. What is the net realizable value of Accounts Receivable after a $ 140 account receivable is written off?
Answer:
$4,580
Explanation:
since we are using the allowance method, the journal entry to record the write off is:
Dr Allowance for bad debts 140
Cr Accounts receivable 140
So the accounts receivable balance = $5,000 - $140 = $4,860
the allowance for bad debts balance = $280
accounts receivable net balance = $4,860 - $280 = $4,580
Allowance for bad debts accounts is a contra asset account that reduces the balance of accounts receivable.
Inventory items received should be compared against: Multiple Choice Sales receipt Purchase order Sales order Supplies inventory
Answer:
Purchase order
Explanation:
To verify existence and accuracy of inventory items received, the receiving division must compare the quantities, amounts and descriptions of the items received against the Purchase order.
If the Wet Dog Surf Company borrows $11,000 at 3.00% and there are 4 compounding periods per year, calculate Wet Dog's Effective Annual Rate (APY) of interest.
Answer:
3.039%
Explanation:
Effective annual interest = ( 1 + periodic interest/ m)^m - 1
M = number of compounding per year
(1 + 0.03 / 4)^4 -1 = 0.03039 = 3.039%
I hope my answer helps you
"Its East Division has operating assets of $7,500,000, profit margin of 15%, and asset turnover of 0.80. Calculate the East Division's residual income."
Answer:
$150,000
Explanation:
Residual Income = Net Operating Income - (Operating assets x ROI)
Residual Income = 900,000 - ( 7,500,000 x 10%)
Residual Income = 900,000 - 750,000
Residual income = 150,000
NOTE: Assume ROI is 10%
Workings (net Operating Income)
Asset turnover = sales / net operating assets
0.8 x 7,500,000 = sales
sales = 6,000,000
Profit margin = Net operating income / sales
15% = Net operating income / 6,000,000
Net operating income = 6,000,000 x 15%
Net operating income = 900,000
Trey has two dependents, his daughters, ages 14 and 17, at year-end (2018). Trey files a joint return with his wife.What amount of child credit will Trey be able to claim for his daughters under each of the following alternative situations?(a) His AGI is $103,300.(b) His AGI is $426,200.(c) His AGI is $428,900, and his daughters are ages 10 and 12.
Answer:
(a) His AGI is $103,300.
$2,000 since only one of your daughters qualifies for the child tax credit (must be under 17 at year end).
(b) His AGI is $426,200.
$2,000 - (27 x $50) = $2,000 - $1,350 = $650
For 2018, the income threshold to qualify for the child tax credit increased to $400,000, and it starts to fade away up to $440,000. It phases out $50 per each $1,000 of additional AGI.
(c) His AGI is $428,900, and his daughters are ages 10 and 12.
($2,000 x 2 children) - (29 x $50 x 2 children) = $4,000 - $2,900 = $1,100
True or False: A small number of institutional investors are often able and motivated to bring direct shareholder pressure on a firm’s management in an effort to reduce potential agency conflicts. True False
Answer: True
Explanation:
The agency problem is when there is a conflict of interest between the management of a company and the stockholders that exists in the company.
In order to help reduce the potential agency conflicts that at occur during the course of a business, a few of the institutional investors often bring in the pressure of the direct shareholder on the management of a firm. They believe by involving the shareholders, the management will try not to have any differences with the shareholders and thereby reducing agency problem.
A publisher is deciding whether or not to invest in a new printer. The printer would cost $900, and would increase the cash flows in year 1 by $500 and in year 3 by $800. Cash flows do not change in year 2. If the interest rate is 12%, what is the present value of the cash flows from the investment
Answer:
The present value of the cash flows from the investment is $1015.85.
Explanation:
The present value of the cash flows can be calculated using the discounted cash flows approach also known as the DCF approach. Under this approach, the cash flows are discounted to the present day value using a certain discount rate.
The formula to calculate the present value of the cash flows is,
Present value = CF1 / (1+i) + CF2 / (1+i)^2 + ... + CFn / (1+i)^n
Where,
CF are the cash flowsi is the interest rate which is also the discount ratePresent value = 500 / (1+0.12) + 800 / (1+0.12)^3
Present value = $1015.85277 rounded off to $1015.85
Consider a 11-period binomial model with R=1.02R=1.02, S_0 = 100S 0 =100, u=1/d= 1.05u=1/d=1.05. Compute the value of a European call option on the stock with strike K=102K=102. The stock does not pay dividends. Please submit your answer rounded to two decimal places. So for example, if your answer is 3.45673.4567 then you should submit an answer of 3.463.46. 1 point
Answer: 1.76
Explanation:
Given the following :
R=1.02,
S0 = 100
u=1/d= 1.05
Strike(k) = 102
Total Payoff = (probability of upside × upside Payoff) + (probability of downside × downside Payoff)
Upside Price = u × S0 = 1.05 × 100 = 105
downside Price = S0/u = 100/1.05 = 95.24
Upside Payoff = upside price - strike rate =(105 - 102) = 3
Upside probability :
[e^(r - q) - d] / u - d
E = exponential, q = Dividend (Dividend is 0, since the stock does not pay dividend)
d = 1/d = 1/1.05 = 0.9523809
e = 2.7182818
[2.7182818^(1.02% - 0) - 0.9523809] / (1.05 - 0.9523809)
[1.0102521 - 0.9523809] / 0.0976191
0.0578712 / 0.0976191
= 0.5928266
Probability of downside = 1 - p(upside)
P(downside) = 1 - 0.5928266
P(downside) = 0.4071733
Therefore, total Payoff =
(0.5928266 × 3) + (0.4071733 × 0)
= 1.7784798
European. Call option:
Total Payoff / (1 + r%)
1.7784798 / (1 + 1.02%)
=1.7784798/ (1 + 0.0102)
= 1.7784798 / 1.0102
= 1.7605224
= 1.76
Mohan is a first-generation immigrant from India. He works as an engineer in a software company in the United States. He is a good worker and friendly by nature. However, he becomes the target of racial slurs and jokes by his colleagues. Does the law give Mohan the right to protect himself from such behavior by his colleagues? Under what condition is discrimination based on national origin permissible?
Answer:
The law gives him the right to protect himself from this behavior
Explanation:
The Civil Right Acts' prohibition title VII gives protection against discrimination to workers from different ethnic groups in the work place. This kind of discrimination can cause national-origin lawsuit in title VII. But it is necessary that if Mohans job involves speaking to the public that he speaks some English.
Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 10 percent, and the current profits of the firm are $120 million. What is the value of the firm
Answer:
$4,400,000,000
Explanation:
The formula is shown below together with the computation.
Value of the firm = [(Firm's current profit ) × (1 + firm's opportunity cost of funds/Interest rate)] ÷ (Firm's opportunity cost of funds/Interest rate - Constant growth annual rate)
= [($120,000,000) × (1 + 10%)] ÷ (10% - 7%)
= [($120,000,000) × (1.1)] ÷ (0.1 - 0.07)
= $120,000,000 × 1.1 ÷ 0.03
= $132,000,000 ÷ 0.03
= $4,400,000,000
An organization characterized by direct two-way lines of responsibility and communication running from the top of the organization to the bottom, with workers reporting to only one supervisor is a
Answer:
Line
Explanation:
The line organization is the organization structure in which the authority and responsibility are communicated from the top to bottom level of management so that the proper coordination could be done at each level of management i.e top, middle and lower.
Moreover, it is a two ways lines of responsibility i.e to be communicated from high to low level of management. Plus it would be reported to one supervisor only
which of the following choices is an example of an intangible item??
-a book
-an apple
-an online editing service
-a car
Answer:
an online editing service
Explanation:
An example of an intangible item is an online editing service. An intangible item is something that does not have an actual physical presence. Take a look at the following lists to get a better understand of an intangible vs. tangible item.
intangible items:
- insurance
- software
- data
tangible items:
- food
- computers
- phones
Since an online editing service is the only item that you cannot physical touch, this is the intangible item.
Selected transactions for the Hamilton Company are listed below.1. Collected accounts receivable.2. Declared and paid dividends on common stock.3. Sold long-term investments for cash.4. Issued stock for equipment.5. Repaid five year note payable.6. Paid employee wages.7. Converted bonds payable to common stock.8. Acquired long-term investment with cash.9. Sold buildings and equipment for cash.10. Sold merchandise to customers.Instructions
Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity, or (d) a noncash investing and financing activity.
Answer:
1. Collected accounts receivable = (a) an operating activity
2. Declared and paid dividends on common stock = (c) a financing activity
3. Sold long-term investments for cash = (b) an investing activity
4. Issued stock for equipment = (d) a noncash investing and financing activity
5. Repaid five year note payable = (c) a financing activity
6. Paid employee wages = (a) an operating activity
7. Converted bonds payable to common stock = (d) a noncash investing and financing activity.
8. Acquired long-term investment with cash = (b) an investing activity
9. Sold buildings and equipment for cash = (b) an investing activity
10. Sold merchandise to customers = (a) an operating activity
Explanation:
The Operating Activities include those activities that occurs within the course of business.
The Investing Activities include any cash movement in capital expenditure items.
The Financing Activities included activities that involve sourcing of funds and changes in ownership activities.
Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.
The columns indicating the appropriate account(s) to be debited and credited for the transactions listed below.
Transactions Account(s)Debited Account(s)Credited
1. Raw materials were purchased on account.
2. Issued a check to Dixon Machine Shop for repair work on factory equipment.
3. Direct materials were requisitioned for Job 280.
4. Factory labor was paid as incurred.
5. Recognized direct labor and indirect labor used.
6. The production department requisitioned indirect materials for use in the factory.
7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.
8. Goods that were completed were transferred to finished goods.
9. Goods costing $80,000 were sold for $105,000 on account.
10. Paid for raw materials purchased previously on account.
Answer:
1. Raw materials were purchased on account.
Debit Raw Materials Inventory.
Credit Accounts Payable.
Inventory was bought in credit so Payable is owed.
2. Issued a check to Dixon Machine Shop for repair work on factory equipment.
Debit Manufacturing Overhead
Credit Cash
Cash was used to pay for Indirect production work. Cash reduces Sonia credited.
3. Direct materials were requisitioned for Job 280.
Debit Work in Progress Inventory
Credit Raw Material Inventory
Transferred from Raw Materials so work may be done.
4. Factory labor was paid as incurred.
Debit Factory Labor
Credit Cash
Cash reduces again so is credited. Factory Labor is Expense that should be debited.
5. Recognized direct labor and indirect labor used.
Debit Work in Progress Inventory
Debit Manufacturing Overhead
Credit Factory Labor
Direct Labor falls under Work in Progress and Indirect Labor falls under Manufacturing Overhead.
6. The production department requisitioned indirect materials for use in the factory.
Debit Manufacturing Overhead
Credit Raw Materials Inventory
Indirect materials are an overhead.
7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.
Debit Work in Progress Inventory
Credit Manufacturing Overhead
8. Goods that were completed were transferred to finished goods.
Debit Finished Goods
Credit Work in Progress Inventory
9. Goods costing $80,000 were sold for $105,000 on account.
Debit Cost of Goods Sold
Credit Inventory
Then,
Debit Accounts Receivable
Credit Sales
10. Paid for raw materials purchased previously on account.
Debit Accounts Payable
Credit Cash
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2.1 million and there are 130,000 shares outstanding. a. If the benchmark price-sales ratio is 4.3, what is your estimate of an appropriate stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the price-sales ratio were 3.6? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a. $69.46
b. 58.15
Explanation:
a. Price = Benchmark PS ratio × Sales per share
Sales per Share
= Sales / Shares outstanding
= 2,100,000/130,000
= $16.15
Price = 4.3 * 16.15
Price = $69.46
b. PS Ratio is 3.6
Price = Benchmark PS ratio × Sales per share
Price = 3.6 * 16.15
Price = $58.15
Watson Company purchased assets of Holmes Ltd. at auction for $1,390,000. An independent appraisal of the fair value of the assets acquired is listed below:
Land $ 304,000
Building 380,000
Equipment 608,000
Inventories 228,000
Prepare the journal entry to record the purchase of the assets.
Answer:
Dr land $278,000
Dr building $347,500
Dr equipment $556,000
Dr inventories $208,500
Cr cash $1,390,000
Explanation:
The total amount spent in acquiring the assets is $1,390,000 which needs to be shared between the assets acquired on the basis of individual values of the assets
Total of individual assets' values=$304000+$380000+ $608000+$228000=$ 1,520,000.00
Cost attributable to land:$304000/$1520000*$1,390,000=$ 278,000.00
Cost attributable to Building:$380000/$1520000*$1390000=$ 347,500.00
cost attributable to equipment=$608000/$1520000*$1390000=$556,000.00
cost attributable to inventories=$228000/$1520000*$1390000 =$208,500.00
You own a fixed-income asset with a duration of four years. If the level of interest rates, which is currently 8.1%, goes down by 20 basis points, how much do you expect the price of the asset to go up (in percentage terms)
Answer: 0.74%
Explanation:
Change in price of a fixed-income asset is inversely related to a change in it's interest rates.
The price change is therefore formulated by;
Δ Price of Asset = -Δ * Δy
Δ = 4 years / ( 1 + i)
= 4 / ( 1 + 8.1%)
= 3.7
A basis points refers to 0.01%. So 20 basis points 0.2%.
Δ Price of Asset = -3.7 * -0.2%
= 0.0074
= 0.74%
Price of Asset increases by 0.75%
Robertson, while a minor, contracted to borrow money from his father for a college education. his father mortgaged his home and took out loans against his life insurance policies to get some of the money he lent to Robertson, who ultimately graduated from dental school. Two years after Robertson's graduation, his father asked him to begin paying back the amount of $30,000 at $400 per month. Robertson agreed to pay $24,000 at $100 per month. He did this for three years before stopping the payments. His father sued for the balance of the debt. Could Robertson disaffirm the contract?
Answer:
Generally a minor cannot be held responsible for any contracts that they sign unless they involve basic necessities, e.g. food, clothes, shelter. But in this case, Robertson ratified the contract when he was already an adult (I guess he was an adult when he graduated as a dentist or during the next three years). Once Robertson ratified the contract, he cannot disaffirm it anymore.
Identify the phase (Phillips, stagflation, or recovery) the economy is in, and suggest what change in aggregate demand or aggregate supply might have caused it.
a. "President Nixon expressed satisfaction with last yearâs economic performance. He said that with inflation and unemployment heading down, the nation âis on the right course."
b. "The nationâs inflation rate rose to a record high last month, the government reported yesterday. The consumer price index jumped 0.3% in January. Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixonâs second term had gotten off to a rocky start."
c. "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working."
Answer:
a. "President Nixon expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation is on the right course."
⇒ RECOVERY. Economic recovery refers to the economy starting to grow again after a period of recession. A rightward shift in the aggregate supply curve should decrease unemployment and reduce inflation.
b. "The nation's inflation rate rose to a record high last month, the government reported yesterday. The consumer price index jumped 0.3% in January. Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixon's second term had gotten off to a rocky start."
⇒ STAGFLATION. Stagflation refers to a combination of high inflation and high unemployment. A leftward shift in the aggregate supply curve can result in stagflation.
c. "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working."
⇒ PHILLIPS. According to the Phillips curve, inflation and unemployment are inversely correlated. if inflation goes up, unemployment should go down. Phillips theory was discredited due to stagflation occurring during Nixon's presidency. Nixon created stagflation for the first time in the US since it isn't normal that inflation rises as unemployment increases. That shows you how good a president he was, he even invented new things for Americans to enjoy.
The following totals for the month of April were taken from the payroll register of Magnum Company. Use this information to answer the question that follow. Salaries $12,000 FICA taxes withheld 900 Income taxes withheld 2,500 Medical insurance deductions 450 Federal unemployment taxes 32 State unemployment taxes 216 The journal entry to record the monthly payroll on April 30 would include a:_______. a. debit to Salaries Payable for $7,902 b. debit to Salaries Expense for $7,902 c. debit to Salaries Payable for $8,150 d. credit to Salaries Payable for $8,150
Answer:
The journal entry to record the monthly payroll on April 30 would include a credit to Salaries Payable for $8,150. The right answer is d.
Explanation:
In order to prepare The journal entry to record the monthly payroll on April 30 we would have to calculate the Salaries Payable as follows:
Salaries Payable=Salaries-FICA taxes withheld+Income taxes withheld+Medical insurance deductions
Salaries Payable=$12,000-$900+$2,500+$450
Salaries Payable=$8,150
Therefore, journal entry to record the monthly payroll on April 30 would be as follows:
Debit Credit
Salaries $12,000
FICA withheld $900
Income taxes withheld $2,500
Medical insurance deductions $450
salaries payable $8,150
So, The journal entry to record the monthly payroll on April 30 would include a credit to Salaries Payable for $8,150
Requirement 1. How much cash did the company receive upon issuance of the bonds payable? (Use the factor tables provided with factors rounded to three decimal places. Round all currency amounts to the nearest whole dollar.) Upon issuance of the bonds payable, the company received $ nothing.
Missing information:
A lot of information is missing, but I found several examples with very similar requirements.
For example:
Company, Inc. issued $500,000 of 14%, 10-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 12%, and the bonds pay interest semiannually.
Answer:
In order to determine the market price of the bonds we must add the present value of the bonds' face value + present value of the coupon payments:
PV of face value = $500,000 / (1 + 6%)²⁰ = $155,902.36
PV of coupon payments = $35,000 x 11.470 (PV annuity factor, 6%, 20 periods) = $401,450
market value of the bonds = $557,352.36
The journal entry to record the issuance of the bonds:
January 1, 2018, bonds are issued at a premium
Dr Cash 557,352.36
Cr Bonds payable 500,000
Cr Premium on bonds payable 57,352.36
chandler Communications'CFO has provided the following information: The company's capital budget is expected to be $5,000,000. The company's target capital structure is 70 percent debt and 30 percent equity. The company's net income is $4,500,000. If the company follows a residual dividend policy, what portion of its net income should it pay out as dividends this year
Answer: $3,000,000
Explanation:
From the question, we are informed that a company's capital budget is expected to be $5,000,000 and that the company's target capital structure is 70 percent debt and 30 percent equity.
Equity = 30% × $5,000,000
= 30/100 × $5,000,000
= 0.3 × $5,000,000
= $1,500,000
Debt = 70% × $5,000,000
= 70/100 × $5,000,000
= 0.7 × $5,000,000
= $3,500,000
We are further told that the company's net income is $4,500,000 and since we be calculated the equity that will be needed to finance the capital budget as $1,500,000. Therefore, portion of its net income should it pay out as dividends this year will be:
= $4,500,000 - $1,500,000
= $3,000,000
The portion of its net income should it payout as dividends this year is $3,000,000.
Calculation of the dividend:Before that the following calculations need to be done.
Equity = 30% × $5,000,000
= 30/100 × $5,000,000
= 0.3 × $5,000,000
= $1,500,000
Now
Debt = 70% × $5,000,000
= 70/100 × $5,000,000
= 0.7 × $5,000,000
= $3,500,000
Now finally the dividend is
= $4,500,000 - $1,500,000
= $3,000,000
Learn more about dividend here: https://brainly.com/question/24353661
Many managers have made poor ethical decisions while engaged in international business. Many of these ethical issues are rooted in the variations among nations in their political systems, law, economic development, and culture. What is considered normal practice in one nation may be considered unethical in another.
Answer:
True.
Explanation:
This statement is correct, due to the fact that the practice of international business can generate some embarrassing situations and behaviors that can be considered ethical or unethical according to a particular country.
Therefore, in order to avoid bad ethical decisions in international business, it is necessary that a manager develops the ability of cultural intelligence, which corresponds to the ability to adapt behaviors and decisions in such a way that there is multicultural correspondence and respect and adaptation to the values and principles of individuals of other cultures with whom you need to relate professionally, so that there is appropriate, respectful and ethical behavior
Novak Company had the following two transactions related to its delivery truck. 1. Paid $150 for an oil change. 2. Paid $700 to install a special gear unit, which increases the operating efficiency of the truck.Prepare Novak's journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No Account Titles and Explanation Debit Credit 1. 2.
Answer and Explanation:
The Journal entries are shown below:-
1. Maintenance and Repairs Expense Dr, $150
To Cash $150
(Being cash paid is recorded)
For recording this we debited the maintenance and Repairs Expense as there is increased in expenses and credited the cash as assets are decreased
2) Equipment $700
To Cash $700
(Being cash paid is recorded)
For recording this we debited the equipment as it increased the assets and credited the cash as assets are decreased
If the producers’ surplus is $50, and the consumers’ surplus is $40, then what is the minimum selling price of the good?
Answer:
There is not enough information in this question, but I can explain the concept using an example. Good A sells for $150. Producer surplus = $50 and consumer surplus = $40.
The minimum selling price in this example would be $100, where producer surplus = $0.
Explanation:
Producer surplus refers to the difference between the minimum price that a supplier is willing to sell its goods or services versus the actual selling price of the goods or services. E.g. a producer could be willing to sell its goods at $100, but the selling price is $150, so producer surplus = $50
Consumer surplus refers to the difference between the maximum price a consumer is willing to pay for a good or service and the actual price of the good or service. E.g. a consumer is willing to pay $190 for a good but its selling price is $150, so consumer surplus = $40.
Arco Corporation declared a cash dividend on June 2 of $6 per common share. The company has 2,000 shares of common stock authorized, 1,000 shares issued, and 200 in the treasury. The entry to record the declaration of the cash dividend increases a(n)
Answer:
The journal entry to record the dividend declaration is:
June 2, 202x, cash dividends are declared
Dr Retained earnings 4,800
Cr Dividends payable 4,800
The journal entry to record the payment of the dividend would be:
Dr Dividends payable 4,800
Cr Cash 4,800
When we calculate dividends, only outstanding stocks are included in the distribution: total outstanding stocks = issued stocks - treasury stocks = 1,000 - 200 = 800
An agreement between Nike and Adidas to raise prices of the track shoes that each company produces by 50 percent is an example of a collusive agreement, and economists generally agree that:
Answer:
Explanation:
Economists generally agree that this agreement is not in the best interest of society because the price of track shoes is way higher than the marginal cost. Meaning that the company is basically taking advantage of the potential customers since they are profiting massively by overpricing the shoes. The shoes are not worth that price and the companies can easily drop the price and still make a good profit but instead are raising prices and taking advantage of potential customers.
Waterway, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $87,550 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $40,800
2. Machine setups Number of setups 25,750
3. Quality inspections Number of inspections 21,000
$87,550
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total
Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Air United, Inc. manufactures two products: missil
Air United, Inc. manufactures two products: missil
Determine the overhead rate for each activity.
Overhead Rate
Materials handling $
Machine setups $
Quality inspections $
Answer:
Results are below.
Explanation:
Giving the following information:
Activities Cost Drivers Total Cost
Materials handling Number of requisitions $40,800
Machine setups Number of setups 25,750
Quality inspections Number of inspections 21,000
Cost Drivers Instruments Gauges Total
Number of requisitions= 1,050
Number of setups= 485
Number of inspections= 490
We need to use the following formula for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 40,800/1,050= $38.86 per requisition
Machine setups= 25,750/485= $53.1 per setup
Quality inspections= 21,000/490= $42.86 per inspection
Solving for dominant strategies and the Nash equilibrium Suppose Gilberto and Juanita are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Gilberto chooses Right and Juanita chooses Right, Gilberto will receive a payoff of 3, and Juanita will receive a payoff of 7.
Juanita
Left Right
Gilberto
Left 4, 6 6, 8
Right 7, 5 3, 7
The only dominant strategy in this game is for _____ to choose _____ . The outcome reflecting the unique Nash equilibrium in this game is as follows: Gilberto chooses _____ and Juanita chooses ____ .
Answer:
The only dominant strategy in this game is for Juanita to choose left since it is the best response of Juniata irrespective of what Gilberto does.
Gilberto chooses left and Juanita chooses left.
Explanation:
Gilberto appears to know Juniata's left to choose. So Gilberto opts for Left to maximize its return on investment. The technique is superior if the approach gives a participant a greater payout than just about any other player, no matter what any player does.
Therefore, the effect is.
When Juanita chooses his winning approach, it is the safest option for Gilberto to left.