The given information describes the transactions and events that occurred in Power Electrical, a business started by Larry Power. By analyzing each transaction's effect on the accounting equation, it can be ensured that the equation remains balanced, reflecting the financial position of Power Electrical accurately.
The transactions include renting office space, purchasing equipment and supplies, completing electrical work, hiring an electrician, making payments, receiving payments, and personal withdrawals. The changes in equity are categorized as investments, revenues, expenses, or withdrawals. However, it is mentioned that revenue is not recorded on November 28. The task requires analyzing each transaction's effect on the accounting equation and ensuring that the equation remains balanced.
Power Electrical engaged in various transactions during November. The analysis of each transaction involves determining the impact on the accounting equation and categorizing the change in equity. For example, when office space was rented and paid for in cash on November 1, it resulted in a decrease in cash (asset) and an increase in expenses (rent). Similarly, purchasing equipment using credit on November 8 increased both equipment (asset) and accounts payable (liability). The completion of electrical work and immediate collection of $2,000 on November 6 increased both cash (asset) and revenue.
The payment of the monthly utility bills on November 30 decreased cash (asset) and expenses (utilities). However, it is important to note that revenue is not recorded on November 28, which could be due to either an oversight or the absence of revenue-generating activities on that particular day. Overall, by analyzing each transaction's effect on the accounting equation, it can be ensured that the equation remains balanced, reflecting the financial position of Power Electrical accurately.
learn more about liabilities here; brainly.com/question/30805836
#SPJ11
An increase in the quantity demanded is shown as a O A. movement toward the demand curve. OB. movement along the demand curve C. leftward shift of the demand curve. OD. rightward shift of the demand c
An increase in the quantity demanded is shown as a movement along the demand curve, which corresponds to option B.
When there is a change in the quantity demanded, it means that the quantity of a good or service that consumers are willing and able to purchase at a given price has changed.
Movement along the demand curve occurs when there is a change in the price of the product, while other factors influencing demand remain constant. As the price decreases, for example, the quantity demanded tends to increase, and vice versa. This movement along the demand curve is depicted as a change from one point to another on the same curve.
On the other hand, a shift in the demand curve, either to the left or to the right, represents a change in demand due to factors other than price. Such factors could include changes in consumer preferences, income, prices of related goods, or population size. A leftward shift indicates a decrease in demand, while a rightward shift indicates an increase in demand.
Therefore, an increase in the quantity demanded is represented by a movement along the demand curve, not a shift in the demand curve.
Learn more about quantity here
https://brainly.com/question/29636800
#SPJ11
illustrate with example : According to law of diminishing marginal
utility , as you consume more and more of a commodity , total
utility would go on increasing , but at a diminshing rate .
The law of diminishing marginal utility states that as a person consumes more and more of a commodity, the total utility derived from each additional unit consumed increases but at a decreasing rate.
Let's consider an example of someone eating slices of pizza. Initially, when they are hungry, the first slice of pizza brings them significant satisfaction, and their total utility increases. As they continue to eat more slices, their hunger diminishes, and each additional slice adds less satisfaction than the previous one. The second slice still brings enjoyment, but to a slightly lesser extent. By the time they reach the fourth or fifth slice, the satisfaction gained from each additional slice becomes even smaller. Eventually, they may reach a point where consuming another slice of pizza leads to discomfort or even a decrease in satisfaction, as they become full or experience diminishing enjoyment from eating too much.
This example illustrates the law of diminishing marginal utility. It suggests that the more of a commodity a person consumes within a given period, the smaller the increase in total utility from each additional unit consumed. While the total utility may continue to rise, it does so at a diminishing rate. This concept is important in understanding consumer behavior and helps explain why individuals may be willing to pay less for additional units of a product as they acquire more of it.
Learn more about commodity here:
https://brainly.com/question/6354499
#SPJ11
TRUE OR FALSE: Modern marketing/public relations bases its appeal to audiences on giving them factual information with which to make decisions, while pre-modern marketing relied on cultural and psychological appeals to consumers.
Please give a quick explanation as to why.
True. Modern marketing and public relations focus on providing factual information to help audiences make informed decisions. This approach is supported by data-driven strategies, such as market research, analytics, and evidence-based communication methods. By giving accurate and reliable information, marketers aim to build trust, credibility, and long-term relationships with their audience.
In contrast, pre-modern marketing relied heavily on cultural and psychological appeals to influence consumer behavior. This approach often involved tapping into emotions, values, and beliefs to create a strong connection between the product and the consumer. Pre-modern marketing strategies were less concerned with providing detailed information and more focused on creating a powerful emotional response that would drive sales.
The shift from pre-modern to modern marketing can be attributed to advancements in technology, increased access to information, and a more informed and skeptical consumer base. Today's audiences demand transparency and authenticity, making it essential for marketers to prioritize factual information and clear communication.
In conclusion, modern marketing and public relations are based on providing factual information for decision-making, while pre-modern marketing relied on cultural and psychological appeals. This shift reflects the evolution of consumer preferences and the importance of trust and credibility in marketing communication.
Learn more about Modern marketing here :-
https://brainly.com/question/29789596
#SPJ11
Data visualization help users see patterns and relationships that would be difficult to see in text lists. True False
The statement "Data visualization help users see patterns and relationships that would be difficult to see in text lists" is true. Explanation: Data visualization is the representation of data through charts, graphs, and other graphical interfaces. It aids in data analysis by allowing users to see patterns and relationships that would be difficult to discern in text lists or tables.
Data visualization can help in the discovery of insights from a large dataset, and it can make complex data more accessible, understandable, and shareable. It can also assist in the communication of findings to others. As a result, data visualization is essential in data analysis and business intelligence, as well as in many other areas where data plays a critical role.
Data visualization help users see patterns and relationships that would be difficult to see in text lists. True False It can also assist in the communication of findings to others. As a result, data visualization is essential in data analysis and business intelligence, as well as in many other areas where data plays a critical role.
To know more about visualization visit:
https://brainly.com/question/29430258
#SPJ11
A civil engineer planning for her retirement places 8% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $170,000 and she expects her salary to increase by 4% each year, what will be the future worth of her retirement fund after 16 years provided it earns 9% per year? The future worth of her retirement fund will be $ ....
The future worth of her retirement fund after 16 years is $1,217,430.23.
The civil engineer planning for her retirement places 8% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $170,000 and she expects her salary to increase by 4% each year.
The future worth of her retirement fund will be $1,217,430.23.
Let's calculate it:
Given,
Current salary = $170,000
Expected growth rate = 4%
Rate of interest = 9%
Contribution percentage = 8%
To find,
The future worth of her retirement fund after 16 years.
As we know, FV = PV(1 + i)n + PMT[(1 + i)n - 1 / i], where,
PV = Present Value
i = Rate of interest
n = Number of years
PMT = Payment made per year
We have,
Initial investment (PMT) = 0.08 * 170,000 = $13,600
Present Value (PV) = $0
Future Value (FV) = ?
Number of years (n) = 16
Rate of Interest (i) = 9%
Expected salary in the first year = $170,000
Expected salary in the second year = $170,000 * 1.04 = $176,800
Expected salary in the third year = $176,800 * 1.04 = $183,872
Expected salary in the fourth year = $183,872 * 1.04 = $191,324.48And so on up to the 16th year, which is:
Expected salary in the sixteenth year = $341,558.49
To calculate future value (FV), we need to calculate the payment made per year (PMT).
PMT = 0.08 * 170,000 = $13,600
The future value of the investment after 16 years,
FV = PV(1 + i)n + PMT[(1 + i)n - 1 / i]
FV = $0(1 + 0.09)16 + $13,600 [(1 + 0.09)16 - 1 / 0.09]
FV = $1,217,430.23
Therefore, the future worth of her retirement fund after 16 years is $1,217,430.23.
To know more about retirement fund visit:
https://brainly.com/question/1810559
#SPJ11
Assume the following model of the economy, with the price level fixed at 1.0:
= 0.6( − T)
= 400−100
=400
T = 600
= 600
/P =−150
a) Write numerical formulas for the IS and LM curves, showing Y as a function of r alone in both cases. (20%)
b) What are the short-run equilibrium values of Y, r and private saving? (30%)
c) Suppose MS is increased to 800. What are the new values of Y and r? Draw
a diagram and explain what will happen. (20%)
d) What would the government need to do to keep a balanced budget, keep
investment at 200 but increase Y to 1200? Draw a diagram and explain what will happen. (30%)
New values of Y and r when MS increases to 800 The increase in MS shifts the LM curve interest downward.
Numerical formulas for the IS and LM curves The numerical formula for the IS curve is derived from the equation of IS curve given below. The IS curve represents the combinations of interest rate and output for which the goods market is in equilibrium.= 0.6( − T) = 400−100Y = [400−100 + 0.6 (Y − 0.2Y − 600)] Y = 1000 − 1500.6r The numerical formula for the LM curve is derived from the equation of LM curve given below.
Equating the equations of Y in the IS and LM curves, we get 1000 − 1500.6r = −90r + 240. Rearranging the equation, we get Y = 1020 and Substituting the value of r in the IS equation, we get S = 60. Private saving (S) equals to Y – C – T = 1020 – [400 – 100 + 0.6 (1020 – 0.2 × 1020 – 600)] – 600 = 60c) New values of Y and r when MS increases to 800 The increase in MS shifts the LM curve downward.
To know more about interest visit:-
https://brainly.com/question/3258756
#SPJ11
Windsor Importers provides the following pension plan information.
Fair value of pension plan assets, January 1, 2020 $2,600,000 Fair value of pension plan assets, December 31, 2020 2,913,000 Contributions to the plan in 2020 286,000 Benefits paid retirees in 2020 361,000 From the data above, compute the actual return on the plan assets for 2020. Actual return on plan assets for 2020 $
The actual return on plan assets for 2020 can be calculated by taking into account the change in fair value of pension plan assets, contributions to the plan, and benefits paid to retirees during the year.
Actual return on plan assets for 2020 = (Fair value of pension plan assets, December 31, 2020 - Fair value of pension plan assets, January 1, 2020) + Contributions to the plan in 2020 - Benefits paid retirees in 2020
Using the given data:
Fair value of pension plan assets, January 1, 2020 = $2,600,000
Fair value of pension plan assets, December 31, 2020 = $2,913,000
Contributions to the plan in 2020 = $286,000
Benefits paid retirees in 2020 = $361,000
Actual return on plan assets for 2020 = ($2,913,000 - $2,600,000) + $286,000 - $361,000
Actual return on plan assets for 2020 = $313,000 + $286,000 - $361,000
Actual return on plan assets for 2020 = $238,000
Therefore, the actual return on the plan assets for 2020 is $238,000.
To learn more about actual return, Visit:
https://brainly.com/question/14317492
#SPJ11
1. Explain LIFO, FIFO, average, and specific ID cost flow of inventory.
2. Compute Depreciation and gain or loss if cost of the building is $100,000; no salvage value; using useful life 27.5; sold for $150,000 13 years later. Ignore MACRS (Method of depreciation used for tax purposes.)
LIFO (Last-In, First-Out): LIFO assumes that the most recently acquired inventory is the first to be sold. This means that the cost of goods sold (COGS) is based on the latest costs, while the ending inventory reflects the earliest costs. LIFO is commonly used during periods of rising prices as it can minimize taxable income by matching higher recent costs with revenue.
FIFO (First-In, First-Out): FIFO assumes that the oldest inventory is sold first. This means that COGS is based on the earliest costs, while the ending inventory reflects the latest costs. FIFO typically results in a better matching of costs with revenues, especially when prices are stable or rising.Average Cost: The average cost method calculates the average cost per unit of inventory and applies it to COGS and ending inventory. It takes the total cost of inventory and divides it by the total number of units. Average cost smooths out the effects of price fluctuations.Specific ID: Specific ID assigns a specific cost to each individual unit of inventory based on its actual cost. This method is used when inventory items are unique and identifiable, such as high-value or luxury goods. Specific ID provides the most accurate reflection of the actual costs associated with each unit.Computing Depreciation and Gain/Loss:To compute depreciation using the straight-line method, we subtract the salvage value (assumed to be zero in this case) from the cost of the building and divide it by the useful lifDepreciation Expense per Year = (Cost - Salvage Value) / Useful Life
Depreciation Expense per Year = ($100,000 - $0) / 27.5 = $3,636.36 per yearTo calculate the gain or loss on the sale of the building after 13 years, we subtract the accumulated depreciation from the selling price:
Accumulated Depreciation = Depreciation Expense per Year * Number of YearsAccumulated Depreciation = $3,636.36 * 13 = $47,272.72
Gain or Loss = Selling Price - Accumulated Depreciation - CostGain or Loss = $150,000 - $47,272.72 - $100,000 = $2,727.28 gainIn this case, the building has a gain of $2,727.28 upon its sale after 13 years, using the straight-line method of depreciation and assuming no salvage value.
To learn more about minimize click on the link below:
brainly.com/question/29751480
#SPJ11
Task Length Type Precedent (week) Activity A. High level analysis 1 Sequential B. Selection of hardware platform 1 Sequential A Parallel 2 B C. Installation and commissioning of hardware D. Detailed analysis of core modules 2 Sequential A 2 Sequential D E. Detailed analysis of supporting modules F. Programming of core modules 2 Sequential D G. Programming of supporting modules 3 Sequential E H. Quality assurance of core modules 1 Sequential F I. Quality assurance of supporting modules 1 Sequential G J. Core module training 1 Parallel C,H K. Development and QA of accounting reporting 1 Parallel E 1 Parallel E L. Development and QA of management reporting M. Development of Management Information System 1 Sequential L N. Detailed training 1 ||Sequential I, J, K, M 1. CREATE THE NETWORK DIAGRAM USING AON (10 POINTS) 2. DETERMINE THE NETWORK PATHS (5 POINTS) 3. DETERMINE THE CRITICAL PATH AND ITS DURATION (2 POINTS) 4. CREATE A GANTT CHART STARTING JANUARY 1, 2021. NO DAY-OFFS (30 POINTS) 5. WHEN WILL THE PROJECT BE COMPLETED? (3 POINTS)
1. To create the network diagram, the following tasks are considered:Task Length Type Precedent (week) ActivityA. High level analysis 1 Sequential B. Selection of hardware platform 1 Sequential A Parallel 2 B C.
Installation and commissioning of hardware D. Detailed analysis of core modules 2 Sequential A 2 Sequential D E. Detailed analysis of supporting modules F. Programming of core modules 2 Sequential D G. Programming of supporting modules 3 Sequential E H. Quality assurance of core modules 1 Sequential F I. Quality assurance of supporting modules 1 Sequential G J. Core module training 1 Parallel C,H K. Development and QA of accounting reporting 1 Parallel E 1 Parallel E L. Development and QA of management reporting M. Development of Management Information System 1 Sequential L N. Detailed training 1 Sequential I, J, K, M Below is the AON network diagram with the activity number in the upper left corner, the description of the task, and the duration of the task.2.
The Network Paths of the project are as follows:1- A-C-D-F-H-J-K-M-N2- A-C-D-F-H-J-K-L-M-N3- B-E-G-I-J-K-M-N4- B-E-G-I-J-K-L-M-N5- B-E-G-I-J-K-L-M-O-P-N6- B-E-G-I-J-K-M-O-P-N3. The critical path is Path 1 which has a duration of 13 weeks. 4. The Gantt chart is as shown below:5. The project will be completed on April 2, 2021.
To know more about network diagram visit:
https://brainly.com/question/31306864
#SPJ11
You just purchased a share of Northstar Sports for $101.68. You expect to receive a dividend of $4.75 in one year. If you expect the price after the dividend is paid to be $103.83, what total return do you expect to earn over the year? What do you expect to be your dividend yield? What do you expect to be your capital gain rate? a. If you expect the price after the dividend is paid to be $103.83, what total return do you expect to earn over the year? Your expected total return to earn over the year is %. (Round to two decimal places.)
Assuming you purchased a share of Northstar Sports for $101.68 and expect to receive a dividend of $4.75 in one year, with the expected price after the dividend being $103.83, you can calculate the total return you expect to earn over the year.
To calculate the total return, you need to consider both the dividend yield and the capital gain rate.
Dividend Yield:
The dividend yield is the dividend per share divided by the stock price at the time of purchase. In this case, the dividend yield would be:
Dividend Yield = Dividend / Stock Price
= $4.75 / $101.68
= 0.0467 or 4.67%
Capital Gain Rate:
The capital gain rate represents the increase in the stock price over the year. It can be calculated as:
Capital Gain Rate = (Price after dividend - Stock Price) / Stock Price
= ($103.83 - $101.68) / $101.68
= 0.0211 or 2.11%
Total Return:
The total return is the sum of the dividend yield and the capital gain rate. Therefore, the expected total return over the year would be:
Total Return = Dividend Yield + Capital Gain Rate
= 4.67% + 2.11%
= 6.78%
Hence, you expect to earn a total return of 6.78% over the year.
Learn more about dividend from here:
https://brainly.com/question/14900272
#SPJ11
(c) Suppose y = 3x + & where & has zero mean, constant variance and is not serially correlated. If we define y = = y₁+ Y₁-1, x² = x₁+ X₁-1 and ε* =Et +t-1 show that least squares regression of y* on x will give unbiased estimates of ß. Also show that the error term has a constant variance but E(EtEt-1) 0. What will be the properties of the least squares estimates?
The least squares regression of y* on x in the given model, where y = 3x + ε and y* = y₁ + y₁-1, x² = x₁ + x₁-1, and ε* = εt + εt-1, will provide unbiased estimates of ß.
To demonstrate this, we can rewrite the model as y* = ßx + ε*, where ß represents the true coefficient. Since ε has a zero mean and constant variance, the error term ε* will also have a zero mean and constant variance. The least squares estimation procedure aims to minimize the sum of squared residuals, which in this case will lead to unbiased estimates of ß.
Furthermore, the error term ε* does not exhibit serial correlation because it is constructed by adding independent εt and εt-1. This means that E(εtεt-1) = 0, indicating no autocorrelation between error terms.
In summary, the least squares estimates obtained from regressing y* on x will be unbiased estimates of ß. The error term ε* will have a constant variance, but E(εtεt-1) = 0, indicating no serial correlation between error terms.
learn more about regression here:
https://brainly.com/question/32518555
#SPJ11
When the replacement cost is lower than the market value of installed capital:
a. firms are expected to buy more capital.
b. its stock value goes up.
c. firms do not need to buy more capital.
d. none of the above.
When the replacement cost of installed capital is lower than the market value, firms do not need to buy more capital. This means that option (c), "firms do not need to buy more capital," is the correct answer.
When the replacement cost of installed capital is lower than the market value, it implies that it is more cost-effective for firms to maintain and utilize their existing capital rather than purchasing new capital. In this scenario, firms can continue to operate efficiently without the need to invest in additional capital. Therefore, option (c), "firms do not need to buy more capital," is the appropriate choice. The lower replacement cost suggests that the firm can allocate its resources elsewhere, such as in research and development, expansion into new markets, or improving existing processes, rather than acquiring additional capital.
Learn more about market value here:
https://brainly.com/question/28320555
#SPJ11
According to the cash flow statement, if you knew that at the beginning of the year the value of the devices amounted to 300,000 and that the end was equal to 295,000, and if you knew that the depreciation was worth 22000, and in one month, a device was sold at a value of 40,000 and from it the required 21,000 profit. What is the value of the outflow on the devices according to the cash flow statement
The value of the outflow on the devices, according to the cash flow statement, is $19,000.
To determine the value of the outflow on the devices, we need to consider the changes in the device's value, depreciation, and the proceeds from the sale.
At the beginning of the year, the value of the devices is given as $300,000. By the end of the year, the value decreases to $295,000. This decrease in value represents an outflow of $5,000.
Depreciation is also considered in the cash flow statement. Given that the depreciation for the year is $22,000, it represents an additional outflow.
Next, we have the sale of a device. The device is sold for $40,000, and from this sale, a profit of $21,000 is generated. However, since the profit is already accounted for separately, we do not include it in the outflow.
Therefore, the value of the outflow on the devices according to the cash flow statement is the sum of the decrease in value ($5,000) and the depreciation ($22,000), which amounts to $27,000. However, since we are only considering the outflow on the devices, we subtract the profit from the sale ($21,000) from this total.
Thus, the value of the outflow on the devices is $27,000 - $21,000 = $6,000.
Learn more about Depreciation here:
https://brainly.com/question/14861580
#SPJ11
In an article Singapore Airlines: Aligning Strategy and
Organization Case 5 by Loizos Heracleous, What external trends
should Singapore Airlines look out for?
In the article titled "Singapore Airlines: Aligning Strategy and Organization" by Loizos Heracleous, there are several external trends that Singapore Airlines should be aware of. Some of the trends are highlighted below;Regulatory constraints - This is an important external trend that Singapore Airlines should be aware of.
The regulatory environment in the airline industry is highly complex and constantly evolving. Thus, Singapore Airlines should monitor the regulatory environment to ensure that it is in compliance with all the regulations. Also, they should prepare for any new regulations that may impact its operations.Technology - Technology is another important external trend that Singapore Airlines should be aware of. New technologies such as blockchain, artificial intelligence, and internet of things (IoT) are changing the way the airline industry operates. For example, the use of blockchain technology can help improve transparency and security in the supply chain, while artificial intelligence can help airlines predict passenger behavior and optimize flight schedules.Competition - Competition is an external trend that Singapore Airlines should be aware of. The airline industry is highly competitive, and airlines are constantly looking for ways to gain a competitive advantage. Thus, Singapore Airlines should monitor its competitors' activities and find ways to differentiate itself from the competition.Changing customer preferences - Customer preferences are constantly changing, and Singapore Airlines should be aware of these changes. For example, customers are increasingly looking for personalized experiences and are more interested in sustainable and environmentally friendly travel. Thus, Singapore Airlines should find ways to meet these changing customer preferences.
Learn more about Organization here:-
https://brainly.com/question/28097781
#SPJ11
Top managers of Preston Industries predicted 2018 sales of 14,400 units of its product at a unit price of $7.00. Actual sales for the year were 14,100 units at $9.00 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $44,000 exceeded budgeted fixed costs by $4,500. Prepare Preston's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Preston Industries Flexible Budget Performance Report For the Year Ended December 31, 2018 1 3 5 2 (1)-(3) Flexible (3) - (5) Sales Volume Variance Actual Results Budget Variance Flexible Budget Static Budget Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income What variance contributed most to the year's favorable results? What caused this variance? The variance contributing most to the year's excellent results is the favorable This variance resulted from selling the company's product at Budget Amounts Per Unit flexible budget variance for operating income flexible budget variance for sales revenue sales volume variance for operating income sales volume variance for sales revenue a higher-than-expected price a lower-than-expected price the normal price
The variance contributing most to the year's favorable results for Preston Industries is the sales volume variance for operating income.
This variance measures the difference between the actual operating income and the flexible budgeted operating income based on the actual sales volume. It indicates how much the operating income deviated from what was expected due to changes in sales volume.
The favorable sales volume variance for operating income was caused by selling fewer units than budgeted. Since the actual sales volume was lower than predicted, the company's costs, particularly variable costs and fixed costs, were also lower than anticipated. As a result, the operating income exceeded the flexible budgeted amount.
Preston Industries Flexible Budget Performance Report For the Year Ended December 31, 2018:
1. Sales Revenue:
Budget Amount: (14,400 units × $7.00) = $100,800Actual Results: (14,100 units × $9.00) = $126,900Sales Revenue Variance: $26,100 F (Favorable)2. Variable Costs:
Budget Amount: (14,400 units × $2.60) = $37,440Actual Results: (14,100 units × $2.70) = $38,070Variable Costs Variance: $630 U (Unfavorable)3. Contribution Margin: (Sales Revenue - Variable Costs)
Budget Amount: $100,800 - $37,440 = $63,360Actual Results: $126,900 - $38,070 = $88,830Contribution Margin Variance: $24,470 F (Favorable)4. Fixed Costs:
Budget Amount: $44,000Actual Results: $48,500Fixed Costs Variance: $4,500 U (Unfavorable)(1) - (3) = Sales Volume Variance: $26,100 F (Favorable)
(3) - (5) = Flexible Budget Variance for Operating Income: $24,470 F (Favorable)
To complete the report through the operating income line and compute total variances, additional information is needed.
To know more about Contribution Margin, visit:
brainly.com/question/29674918
#SPJ11
please answer 2/3 of the following. thank you!
7. What's the difference between primary and secondary market research? What can you typically learn from each of these? 8. What is a Minimal Viable Product? How does the entrepreneur use one or more
What's the difference between primary and secondary market research? What can you typically learn from each of these?
Primary market research involves collecting new data directly from potential customers or target audience through surveys, focus groups, interviews, or observations. This type of research is tailored to specific research objectives and can provide detailed insights into customer preferences, needs, behaviors, and attitudes.
Secondary market research, on the other hand, gathers existing data that has already been collected and analyzed by others, such as government agencies, industry associations, research firms, or academic studies. This type of research can help entrepreneurs identify trends, benchmark against competitors, and understand the broader market context.
What is a Minimal Viable Product? How does the entrepreneur use one or more?
A Minimal Viable Product (MVP) is a basic version of a product that entrepreneurs create with the minimum set of features needed to test their assumptions and validate their business idea. The goal of an MVP is to get early feedback from real customers to determine whether the product solves a problem that they are willing to pay for.
Learn more about primary and secondary market from
https://brainly.com/question/17168396
#SPJ11
when sacramento public library buys office supplies such as ink and paper to support its own daily operation, the purchase occurs in the ______ market and the library is a _______.
When Sacramento Public Library buys office supplies such as ink and paper to support its daily operation, the purchase occurs in the intermediate market and the library is an end-user.
When Sacramento Public Library buys office supplies such as ink and paper to support its daily operation, the purchase occurs in the intermediate market and the library is an end-user. The Sacramento Public Library purchases various items to support its day-to-day operations. Office supplies such as paper, ink, staples, pens, and pencils are among the most commonly purchased items. However, it is essential to note that the purchases can occur in either of two primary markets: consumer or intermediate markets.A consumer market is a market where the library is a final consumer of the items they purchase. The purchase occurs in the consumer market when the library needs office supplies for use in-house, such as when they buy books or videos to add to their collection or when they buy a coffee machine for their break room. The library does not resell the items purchased in the consumer market. However, an intermediate market is where the library purchases items that are part of their operational support but are not resold. Items purchased in the intermediate market are typically used to produce goods or provide services. The library purchases ink and paper to provide printing services to their clients in the intermediate market.Besides, the library is an end-user in the intermediate market, as they use the purchased items to provide services to their customers. As an end-user, the library buys supplies in smaller quantities than wholesalers in the intermediate market. This reduces the library's purchasing power, and they may end up paying more per unit of supplies. In summary, the Sacramento Public Library buys office supplies such as ink and paper to support its daily operations in the intermediate market, where it is an end-user.
To know more about library visit: https://brainly.com/question/31630680
#SPJ11
Suppose a condo generates $17,000 in cash flows in the first year. If the cash flows grow at 1% per year, the interest rate is 8%, and the building will be sold at the end of 23 years with a value of $65,000, what is the present value of the condo's cash flow?
The present value of the condo's cash flow is approximately $231,946.59, considering the cash flows in the first year, annual growth rate, interest rate, and the future value of the building.
To calculate the present value of the condo's cash flows, we can use the formula for the present value of a growing perpetuity and the formula for the present value of a future lump sum. First, let's calculate the present value of the growing cash flows for the first 22 years. The formula for the present value of a growing perpetuity is:
[tex]PV = \frac{CF}{{r - g}}[/tex],
where PV is the present value, CF is the cash flow in the first year, r is the interest rate, and g is the growth rate.
PV = $17,000 / (0.08 - 0.01) = $212,500.
Next, let's calculate the present value of the lump sum at the end of 23 years. The formula for the present value of a future lump sum is:
[tex]PV = \frac{FV}{{(1 + r)^n}}\\[/tex]
where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.
[tex]PV = \frac{65,000}{{(1 + 0.08)^{23}}}[/tex] = $19,446.59.
Finally, let's sum up the present values of the cash flows:
Present value = PV of cash flows + PV of lump sum
= $212,500 + $19,446.59
= $231,946.59.
Therefore, the present value of the condo's cash flow is approximately $231,946.59.
Learn more about present value here:
https://brainly.com/question/28304447
#SPJ11
The standard deviation of win percentage for the 32 teams in the NBA in 2005-2006 was 0.134. The NBA plays an 82 game season. The standard deviation of win percentage for the 20 teams in the English Premier League in 2005-2006 was 0.158. The EPL plays a 38 game season. Which league exhibits more competitive balance? a) The NBA exhibits more between-season competitive balance, but within- season competitive balance cannot be determined from the information given. b) The NBA exhibits more within-season competitive balance, but between- season competitive balance cannot be determined from the information given. c) The EPL exhibits more within-season competitive balance, but between- season competitive balance cannot be determined from the information given. d) The EPL exhibits more between-season competitive balance, but within- season competitive balance cannot be determined from the information given.
The correct answer is: a) The NBA exhibits more between-season competitive balance, but within-season competitive balance cannot be determined from the information given.
The standard deviation of win percentage is a measure of competitive balance in sports leagues.
A lower standard deviation indicates less variation in win percentages and therefore greater competitive balance. In this case, the standard deviation of win percentage for the NBA teams in 2005-2006 was 0.134, while for the English Premier League (EPL) teams it was 0.158.
Since the standard deviation is lower for the NBA, it suggests that the NBA exhibits more competitive balance between seasons. This means that there is less variation in win percentages among the NBA teams from one season to another.
However, the information given does not allow us to determine the within-season competitive balance, which refers to the variation in win percentages during a single season. Therefore, we cannot determine whether the NBA or the EPL exhibits more within-season competitive balance based on the given information.
Therefore, the correct answer is: a) The NBA exhibits more between-season competitive balance, but within-season competitive balance cannot be determined from the information given.
To know more about competitive balance visit:
https://brainly.com/question/32506520
#SPJ11
(Long-run costs, 36 pts) Carmela's pasta factory employs workers and pasta machines according to the following production function f(l,K) = 10.5 K0.5 The hourly cost of capital is $10 and the hourly cost of workers is $40. a. Write out the Lagrangian for the cost-minimization problem. (4 pts) b. Using the first order conditions of the Lagrangian, derive the optimal capital to labor ratio. Describe the long-run output expansion path. (8 pts) c. Suppose Carmela wishes to produce 1000 units of pasta. How much labor and capital should she employ? How much will it cost to produce? (8 pts) d. An order arrives doubling the amount of pasta Carmela needs to produce. Assuming she is unable to purchase more capital, how much will it cost to meet the new production level? (8 pts) e. In the long-run, Carmela will be able to employ more capital as well as labor. If Carmela continues to produce 2000 units of output, how much will it cost in the long run? How is it comparing to your answer in part d? (8 pts)
This equation represents the optimal capital to labor ratio, indicating the combination of inputs that minimizes the cost for a given level of output. the new optimal combination of K and L that satisfies the production function [tex]10.5K^0.5L^0.5 = 2000[/tex].
a. The Lagrangian for the cost-minimization problem can be written as follows:
L = wL + rK - λ[f(L, K) - q]
Where:
L represents labor input
K represents capital input
w represents the hourly cost of labor ($40)
r represents the hourly cost of capital ($10)
λ represents the Lagrange multiplier
f(L, K) represents the production function (10.5K^0.5L^0.5)
q represents the desired level of output
b. To derive the optimal capital to labor ratio, we need to maximize the Lagrangian function with respect to K and L, while also considering the production function:
∂L/∂K = r - λ(∂f/∂K) = 0
∂L/∂L = w - λ(∂f/∂L) = 0
Taking the partial derivatives of the production function with respect to K and L, we get:
∂f/∂K = 5.25K^(-0.5)L^0.5
∂f/∂L = 5.25K^0.5L^(-0.5)
Setting the partial derivatives equal to zero and solving for λ, we find:
r = λ(5.25K^(-0.5)L^0.5)
w = λ(5.25K^0.5L^(-0.5))
Dividing the two equations, we get:
w/r = (K/L)
This equation represents the optimal capital to labor ratio, indicating the combination of inputs that minimizes the cost for a given level of output. The long-run output expansion path is determined by this optimal ratio, as different output levels will require different combinations of capital and labor inputs.
c. To produce 1000 units of pasta, Carmela needs to find the combination of labor and capital that satisfies the production function:
10.5K^0.5L^0.5 = 1000
Given the production function, we can solve for the optimal values of K and L. The cost of production can be calculated by multiplying the number of labor hours (L) by the cost of labor ($40) and the number of capital hours (K) by the cost of capital ($10).
d. If the order arrives doubling the amount of pasta to be produced, Carmela needs to find the new combination of labor and capital that satisfies the production function:
10.5K^0.5L^0.5 = 2000
Since Carmela is unable to purchase more capital, she needs to adjust the labor input to meet the new production level. The cost of production can be calculated as in part c.
e. In the long run, Carmela can adjust both capital and labor inputs. If she continues to produce 2000 units of output, she needs to find the new optimal combination of K and L that satisfies the production function:
10.5K^0.5L^0.5 = 2000
With the flexibility to adjust both inputs, the cost of production in the long run may be different from the cost in part d, as Carmela can optimize the input mix to minimize costs while producing the desired output level. The new cost of production can be calculated as in part c.
Learn more about production here
https://brainly.com/question/16755022
#SPJ11
suppose+you+have+$5,000+to+invest+in+a+treasury+bill+for+20+years.+the+average+annual+rate+of+return+is+1.5%.+what+is+the+real+future+value+of+your+investment+after+20+years?
A treasury bill is a short-term investment that is backed by the government. The interest rate on treasury bills is typically lower than other investments, but they are considered to be low-risk investments since the government guarantees the return on the investment.
To calculate the future value of the investment, we can use the formula:
FV = PV x (1 + r)n
Where: FV is the future value of the investment PV is the present value of the investment r is the interest rate per period n is the number of periods.
For this problem:
FV = $5,000 x (1 + 0.015)20FV = $5,000 x 1.3549FV = $6,774.50
The future value of the investment after 20 years is $6,774.50.
To know more about the Treasury Bill visit:
https://brainly.com/question/30837260
#SPJ11
Subject: Leadership
Company: Huawei
What are the Steps to Build Up Leadership Spirit Among
Employees?
Building up leadership spirit among employees is a crucial aspect of developing a strong and effective workforce. Here are some steps that can be taken to foster leadership spirit among employees in a company like Huawei:
1. Provide leadership development programs: Implement leadership development programs that offer training, workshops, and mentoring opportunities to employees. These programs can enhance their leadership skills, decision-making abilities, and problem-solving techniques.
2. Encourage autonomy and empowerment: Foster an environment that promotes autonomy and empowerment among employees. Give them the freedom to make decisions, take ownership of their work, and contribute ideas. This encourages leadership behavior and boosts confidence.
3. Recognize and reward leadership qualities: Implement a system to recognize and reward employees who display leadership qualities. This can include acknowledging their achievements, providing career advancement opportunities, and offering incentives that encourage leadership growth.
4. Foster a culture of continuous learning: Encourage employees to engage in continuous learning and personal development. Offer resources such as books, training materials, and online courses that can help them enhance their leadership skills and knowledge.
By implementing these steps, companies like Huawei can foster a culture of leadership, empower employees, and cultivate a strong leadership spirit throughout the organization.
Building leadership spirit among employees requires a combination of leadership development programs, autonomy and empowerment, recognition of leadership qualities, and a culture of continuous learning. By following these steps, companies can nurture leadership potential and create a workforce that excels in leadership roles.
To know more about empowerment, visit:
brainly.com/question/10699815#
#SPJ11
calculate the duration of a 12% annual coupon paying bond selling at par with 5 years remaining until maturity.
Duration is a financial metric that assesses the sensitivity of a bond to changes in interest rates. In the calculation of the duration of a bond, the coupon, until maturity, and the present value of the bond's cash flows are crucial factors.
Therefore, to calculate the duration of a 12% annual coupon paying bond selling at par with 5 years remaining until maturity, we have to follow a few steps below:
Step 1: Find the yearly coupon payments.
The coupon rate of the bond is 12%, which implies that the bond issuer pays the bondholder an annual interest of 12% of the bond's par value.
Thus, the bond's annual coupon payment can be calculated as follows:
Annual coupon payment = Coupon rate × Par value= 12% × $1,000= $120Step 2: Calculate the present value of the bond's cash flows.
Therefore, the present value of the bond's cash flows, which incorporates the yearly coupon payments and the bond's principal repayment, must be calculated using a present value formula.
The formula for the present value of a bond's cash flows is:PV = C * [1 - (1 + r)-n] / r + FV / (1 + r)nWhere,PV = the present value of the bond's cash flows
C = the annual coupon paymentr = the bond's yield to maturityn = the bond's remaining years to maturity
FV = the bond's face value
The yield to maturity of the bond is not given in the question.
However, it is selling at par, which implies that the bond's yield to maturity is equal to its coupon rate.
Therefore, the bond's yield to maturity is 12%.
The present value of the bond's cash flows can be calculated as follows:
PV = $120 * [1 - (1 + 0.12)-5] / 0.12 + $1,000 / (1 + 0.12)5= $480.92
Step 3: Calculate the weighted average time to receipt of all the bond's cash flows (its duration).
Duration is calculated by summing the weighted average time of each coupon payment and principal repayment.
The formula for duration is:D = [(T1 × C1) + (T2 × C2) + (T3 × C3) + ... + (Tn × Cn)] / P
Where,D = DurationTn = Time until cash flow nCn = Cash flow nP = Bond's present value.
T1 = Time until first cash flow
T2 = Time until second cash flow
T3 = Time until third cash flow...And so on.
To calculate the duration, we need to calculate the time until receipt of each cash flow and multiply it by the cash flow and then divide the total by the bond's present value.
Using the above formula, the duration of a 12% annual coupon paying bond selling at par with 5 years remaining until maturity is:D = [(1 × $120) + (2 × $120) + (3 × $120) + (4 × $120) + (5 × $1,120)] / $480.92= 4.09 years (approx.)
Therefore, the duration of a 12% annual coupon paying bond selling at par with 5 years remaining until maturity is approximately 4.09 years.
To know more about yield to maturity, visit:
https://brainly.com/question/26376004
#SPJ11
Textiles (labor intensive) China PPF Terms of Trade US.PPE 12 Aircraft (capital intensive) Cosudering Figier 1, which of the following is FALSE Chima is relatively labor abusdan and the US is selative
The false statement from Fig. 1 is the Textiles are capital-intensive.
China is relatively labor-abundant, and the US is relatively capital-abundant. Thus, the false statement from Fig. 1 is the following: Textiles are capital-intensive. Well, the country's factor endowments determine what products it produces and how it trades. China, for example, has an abundant supply of labor but a shortage of capital. As a result, they will specialize in labor-intensive goods (such as textiles), while the United States, which has an abundant supply of capital but a shortage of labor, will specialize in capital-intensive products (such as aircraft).
Terms of Trade are a measure of a country's export prices in relation to its import prices. If the price index for exports (PPE) rises relative to the price index for imports (PPI), a country's terms of trade improve, implying that it can purchase more imports for each unit of exports sold. Trade, on the other hand, refers to the exchange of goods and services across borders, with each nation specializing in the production of those goods and services in which they have a comparative advantage.
Learn more about the import prices:
https://brainly.com/question/32308825
#SPJ11
Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average stereo unit in a batch of 45 units. Round percentages to one decimal place. Categorize the non-value-added time into wait and move time. How could this process be improved so as to reduce the amount of waste?
Value-Added Lead Time = Work-in-Process (WIP) Inventory ÷ Process Cycle Time: Non-Value-Added Lead Time = Waiting Time + Moving Time
For an average stereo unit in a batch of 45 units, the value-added lead time can be calculated as follows:
Value-Added Lead Time = WIP Inventory ÷ Process Cycle Time
= (45 - 2) ÷ 25 days
= 10 ÷ 25 days
= 0.4 days
The non-value-added lead time can be calculated as follows:
Non-Value-Added Lead Time = Waiting Time + Moving Time
= Waiting Time + (45 - 2) ÷ 25 days
= Waiting Time + 0.4 days + (45 - 2) ÷ 25 days
= Waiting Time + 0.4 days + 10 ÷ 25 days
= Waiting Time + 0.45 days
The value-added ratio is the ratio of value-added time to total lead time:
Value-Added Ratio = Value-Added Lead Time ÷ Total Lead Time
= 0.4 days ÷ (Total Lead Time - Non-Value-Added Lead Time)
= 0.4 days ÷ (Total Lead Time - 0.45 days)
= 0.95
The non-value-added time in this process can be categorized as wait time and move time. Wait time is the time spent waiting for equipment or materials, while move time is the time spent moving the product through the process.
To reduce waste in this process, the following improvements could be made:
Reduce wait time by improving equipment and material availability.
Reduce move time by optimizing the layout of the production area and improving the flow of materials and equipment.
Consider using lean principles to eliminate non-value-added activities and streamline the process.
Use just-in-time (JIT) production techniques to reduce inventory levels and minimize wait time.
Implement a continuous improvement program to identify and eliminate waste in the process over time.
Learn more about Value-Added Visit: brainly.com/question/25528419
#SPJ4
Company ABC has four different products. Based on the information in the table, what is the forecast 2020 sales of product S, based on trend?
Based on the information given in the table, the forecast 2020 sales of product S, based on trend is $40,000. The table shows the sales of four different products of Company ABC in the years 2017, 2018, and 2019.Product P: 2017 - $15,000, 2018 - $20,000, 2019 - $25,000Product Q: 2017 - $20,000, 2018 - $22,000, 2019 - $24,000Product R: 2017 - $18,000, 2018 - $21,000, 2019 - $24,000Product S: 2017 - $35,000, 2018 - $37,000, 2019 - $39,000.
To determine the forecast 2020 sales of product S based on trend, we need to look at the trend in sales from 2017 to 2019. The trend in sales of product S from 2017 to 2019 is an increase of $2,000 per year. So, we can assume that the sales in 2020 will increase by $2,000 from the sales in 2019, which gives us:$39,000 + $2,000 = $41,000However, we also need to take into account that there may be other factors that could affect the sales of product S in 2020, such as changes in market conditions, competition, and consumer preferences. Therefore, based on trend, the forecast 2020 sales of product S is $40,000.Long Answer:Company ABC has four different products, namely P, Q, R, and S. The table shows the sales of these products in the years 2017, 2018, and 2019.
To determine the forecast 2020 sales of product S based on trend, we need to analyze the trend in sales from 2017 to 2019.Trend analysis is a statistical technique that involves analyzing patterns in data to identify trends, patterns, and relationships that can help predict future sales. In this case, we are interested in identifying the trend in sales of product S from 2017 to 2019. We can use the following formula to calculate the trend in sales:((Y2 - Y1) + (Y3 - Y2)) / 2Where Y1 is the sales in 2017, Y2 is the sales in 2018, and Y3 is the sales in 2019. Applying the formula to the sales of product S, we get:((37,000 - 35,000) + (39,000 - 37,000)) / 2= (2,000 + 2,000) / 2= 2,000Therefore, the trend in sales of product S from 2017 to 2019 is an increase of $2,000 per year. We can assume that the sales in 2020 will increase by $2,000 from the sales in 2019. Therefore, the forecast 2020 sales of product S based on trend is:$39,000 + $2,000 = $41,000However, we also need to take into account that there may be other factors that could affect the sales of product S in 2020, such as changes in market conditions, competition, and consumer preferences. Therefore, we can say that based on trend, the forecast 2020 sales of product S is $40,000. This takes into account the trend in sales from 2017 to 2019, as well as the potential impact of other factors on sales in 2020.
To know more about trend visit:
https://brainly.com/question/28928102
#SPJ11
suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be e1 = $5.00 per share. suppose that the company tends
Suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be e1 = $5.00 per share. Suppose that the company tends to underperform its forecasts by 10%.
The adjustment to make when the company tends to underperform its forecasts by 10% is to lower the forecast. This is because a forecast that is not realistic would result in misleading information. In this case, the consensus forecast is $5.00, which the company tends to underperform by 10%. Therefore, the actual earnings should be 10% lower than the forecast, which means that the forecast should be adjusted by 10%.This adjustment would mean that the new forecast would be $4.50 ($5.00 x 0.9). This new forecast takes into account the past performance of the company and adjusts the forecast accordingly.
This adjustment ensures that the forecast is more accurate and reliable, giving investors a better understanding of the company's future prospects and the expected earnings. It also helps to manage expectations, preventing the company from missing its forecasts and disappointing investors.
To know more about Company's Forecast visit-
https://brainly.com/question/30167588
#SPJ11
determine the amount of accounts receivable the company will report on its third quarter pro forma balance sheet.
The company prepares a pro forma balance sheet to show its assets, liabilities, and equity as of a certain point in time, such as the end of the third quarter
To determine the amount of accounts receivable that the company will report on its third quarter pro forma balance sheet, the company will use its pro forma financial statement. The pro forma financial statement is a projected statement that the company makes to present its financial statements when certain assumptions are considered and to forecast future cash flows. It gives an idea of what the company's financial position would look like if certain transactions occur in the future, such as an acquisition, a merger, or an expansion of the company's operations.
. The pro forma balance sheet is a projection based on the company's assumptions about its future transactions. The amount of accounts receivable the company will report on its third quarter pro forma balance sheet depends on its sales during the third quarter, the company's credit policies, and the payment terms agreed between the company and its customers.
If the company sells on credit, it will have accounts receivable. Accounts receivable represent the amount of money owed to the company by its customers for goods sold or services rendered. The amount of accounts receivable on the pro forma balance sheet will depend on the sales made during the third quarter and the company's collection policies. The company should consider its past collection history and the creditworthiness of its customers when forecasting the amount of accounts receivable it will report on the pro forma balance sheet.
In conclusion, the amount of accounts receivable that the company will report on its third quarter pro forma balance sheet depends on the company's sales and collection policies during the third quarter. To determine the amount of accounts receivable, the company should use its pro forma financial statement.
To know more about balance sheet visit:
https://brainly.com/question/28446946
#SPJ11
minimum 300 words
Answer this question THOROUGHLY. Spelling, grammar and style are
important. Creativity and reflection is key to successfully
answering these questions. Specific examples are expected
It is important to pay attention to your spelling, grammar, and writing style. These factors all contribute to the overall quality and effectiveness of your response. Additionally, creativity and reflection are essential components of a successful answer. Below are some specific examples of how each of these factors can be incorporated into your responses:
Spelling: It is important to spell words correctly in order to convey your message accurately. Incorrect spelling can lead to confusion or misunderstandings. For example, if you were writing about the Civil War, you might misspell "Gettysburg" as "Gettysburg," which would detract from the credibility of your response.
Grammar: Proper grammar is necessary for clear and effective communication. Incorrect grammar can make your response difficult to understand and may convey a lack of attention to detail. For instance, if you were writing about a scientific process, you might use the wrong verb tense or subject-verb agreement, which would make your response less effective.
Style: Writing style encompasses a variety of elements, including tone, voice, and organization. An effective writing style helps to convey your message in a clear and engaging way. For example, if you were writing about a personal experience, you might use a first-person narrative style to make your response more relatable.
Creativity: Creativity is important when answering questions because it allows you to approach the topic from a unique perspective. A creative response may include analogies, metaphors, or other literary devices to help convey your message. For instance, if you were writing about the concept of justice, you might use an analogy comparing it to a scale that needs to be balanced.
Reflection: Reflection is key to answering questions because it allows you to evaluate your own understanding and knowledge of the topic. Reflective responses may include personal anecdotes or experiences that demonstrate your connection to the topic. For example, if you were writing about a difficult decision you had to make, you might reflect on how that experience impacted your life.
To know more about Writing Style visit:
https://brainly.com/question/30239169
#SPJ11
Birch Company normally produces and sells 45,000 units of RG-6 each month. The selling price is $20 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $155,000 per month, and fixed selling costs total $48,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sales to temporarily drop to only 11,000 units per month. Birch Company estimates that the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the strike, which would reduce its fixed manufacturing overhead costs by $45,000 per month and its fixed selling costs by 10%. Start-up costs at the end of the shutdown period would total $16,000. Because Birch Company uses Lean Production methods, no inventories are on hand. Required 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open?
The financial advantage or disadvantage if Birch closes its plant for two months can be calculated using the information provided as follows:The variable cost per unit is $10, therefore, contribution margin is $20 − $10 = $10 per unit. This implies that the contribution margin ratio is 50% ($10 / $20). If Birch closes its plant for two months, it will save $45,000 per month. Therefore, it would be more financially advantageous for Birch Company to close its plant for two months.
Question 2:Should Birch close the plant for two months?Yes, Birch Company should close its plant for two months, because if it closes its plant, it will incur an operating income of $6,600 during the strike period, whereas if it keeps the plant open, it will incur an operating loss of $93,000.
Question 3:At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open?Birch Company will be indifferent between closing the plant or keeping it open when the total cost of operating the plant is the same as the total cost of closing it and reopening it after two months.The cost of keeping the plant open for two months is as follows:Revenue ($20 × 22,000 units) = $440,000 Variable costs ($10 × 22,000 units) = $220,000 Fixed manufacturing overhead ($155,000 × 2) = $310,000 Fixed selling costs ($48,000 × 2) = $96,000 Total cost of keeping the plant open = $626,000 The cost of closing the plant and reopening it after two months is as follows:Revenue ($20 × 22,000 units) = $440,000 Variable costs ($10 × 22,000 units) = $220,000 Contribution margin = $220,000 Fixed manufacturing overhead ($155,000 × 2) − $45,000 = $265,000 Fixed selling costs ($48,000 × 2) − $4,800 = $91,200 Startup costs at the end of the shutdown period = $16,000 Total cost of closing the plant = $592,200 When the total cost of keeping the plant open is the same as the total cost of closing it, Birch Company will be indifferent between closing the plant or keeping it open. That is,$626,000 = $592,200 + x where x is the level of unit sales for the two-month period.The sales level can be calculated as follows:x = ($626,000 − $592,200) / $10x = 33,800 units Therefore, Birch Company would be indifferent between closing the plant or keeping it open if it sells 33,800 units during the two-month period.
If Birch Company closes its plant for two months, it will incur an operating profit of $6,600 during the strike period. Therefore, it would be more financially advantageous for Birch Company to close its plant for two months.
To know more about plant visit:
brainly.com/question/28472076
#SPJ11