The company needs to sell approximately 6577 units to achieve their monthly target profit of $44,000.
To find the unit sales needed to attain the company's monthly target profit, we'll use the formula:
Unit sales = (Fixed expenses + Target profit) / (Selling price per unit - Variable expense per unit)
In this case, we have the following values:
- Selling price per unit: $240.00
- Variable expense per unit: $81.60
- Fixed expense per month: $997,920
- Target profit: $44,000
Now, we'll plug these values into the formula:
Unit sales = ($997,920 + $44,000) / ($240.00 - $81.60)
Unit sales = ($1,041,920) / ($158.40)
Unit sales = 6576.28
Since we cannot have a fraction of a unit, we'll round up to the nearest whole number. Therefore, the company needs to sell approximately 6577 units to achieve their monthly target profit of $44,000.
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when you sell shares of a mutual fund, how do you determine the basis of the shares held? group of answer choices
The basis of shares held in a mutual fund is determined by the amount paid for the shares plus any reinvested dividends or capital gain distributions.
When you sell shares of a mutual fund, the basis of the shares held is important because it determines the number of capital gains or losses you will have to report on your tax return. The basis is generally determined by the amount paid for the shares, plus any reinvested dividends or capital gain distributions. This is known as the "cost basis" of the shares. If you acquired the shares through multiple purchases at different prices, then you will need to calculate the average cost basis of the shares. You can do this by adding up the total cost of all purchases and reinvested distributions and then dividing by the total number of shares held. It's important to keep accurate records of your purchases and reinvestments to ensure you are reporting on the correct basis and avoiding potential tax issues.
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What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons? Should firms require higher rates of return on foreign projects than on identical projects located at home? Explain.
The two principal reasons for holding cash are
Transactions motive, Precautionary motiveThe company's most valuable and liquid asset is the money it holds. To handle both certain and unknown situations, holding cash is an effective idea.
The cash a company needs each day to run its businesses is referred to as the transaction motive. The term "precautionary motive" refers to a company's desire to have funds on hand to cover unexpected expenses.
The target amount of cash does not always need to equal the total of the funds needed to meet these two requirements. Money could be used to satisfy both goals at any given time.
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rent is $1,800 per month plus 3% of gross sales. the total rent for last month was $2,400. the gross sales for the same month were:_____
The gross sales for the same month were $20,000. This means that the additional 3% of gross sales paid on top of the $1,800 base rent was $600, resulting in a total rent payment of $2,400 for the month.
To determine the gross sales for the month in question, we need to use the information given about the rent and total rent paid.
We know that the rent is $1,800 per month plus 3% of gross sales, and that the total rent paid for last month was $2,400.
So we can set up an equation:
$1,800 + 3% of gross sales = $2,400
To solve for gross sales, we need to isolate the variable. We can start by subtracting $1,800 from both sides:
3% of gross sales = $600
Then we can divide both sides by 0.03 to find the gross sales:
Gross sales = $20,000
Therefore, the gross sales for the same month were $20,000. This means that the additional 3% of gross sales paid on top of the $1,800 base rent was $600, resulting in a total rent payment of $2,400 for the month.
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The market price of a security is $44. its expected rate of return is 7%. the risk-free rate is 4%, and the market risk premium is 7%. what will the market price of the security be if its beta doubles (and all other variables remain unchanged)? assume the stock is expected to pay a constant dividend in perpetuity.
If the beta of the security doubles, its market price will decrease to $30.80.
The first step in solving this problem is to calculate the current expected dividend yield of the security. We know that the expected rate of return is 7% and the risk-free rate is 4%, so the market risk premium must be 7% - 4% = 3%. Using the capital asset pricing model (CAPM), we can calculate the expected dividend yield as follows:
Expected dividend yield = Risk-free rate + Beta x Market risk premium
Expected dividend yield = 4% + 1 x 3%
Expected dividend yield = 7%
Next, we can use the Gordon growth model to calculate the current market price of the security. The Gordon growth model assumes that the dividend will grow at a constant rate in perpetuity. We can rearrange the formula to solve for the current market price:
Market price = Dividend / (Expected rate of return - Dividend growth rate)
Market price = Dividend / (0.07 - 0)
Market price = Dividend / 0.07
Since we know that the expected dividend yield is 7%, we can assume that the dividend is $3.08 per share (44 x 7%). Therefore, the current market price of the security is:
Market price = $3.08 / 0.07
Market price = $44
Now, we can use the same formula to calculate the new market price of the security if its beta doubles. We know that all other variables remain unchanged, so the only difference is the beta. We can calculate the new expected dividend yield as follows:
New expected dividend yield = Risk-free rate + New beta x Market risk premium
New expected dividend yield = 4% + 2 x 3%
New expected dividend yield = 10%
Using the Gordon growth model with the new expected dividend yield, we can calculate the new market price of the security:
New market price = Dividend / (Expected rate of return - Dividend growth rate)
New market price = $3.08 / (0.1 - 0)
New market price = $30.80
Therefore, if the beta of the security doubles, its market price will decrease to $30.80.
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A manufacturer produces 350 units when the market price is $10 per unit and produces 460 units when the market price is $14 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
Using the midpoint method, we found that the price elasticity of supply for the given range of prices is about 0.815, which indicates that the supply is somewhat responsive to changes in price.
The midpoint method is a way to calculate price elasticity of supply, which measures the responsiveness of the quantity supplied to changes in price. In this case, we have two points on the supply curve: at a price of $10 per unit, 350 units are produced, and at a price of $14 per unit, 460 units are produced.
To use the midpoint method, we need to calculate the percentage change in quantity supplied and the percentage change in price between these two points. The formula for the midpoint method is:
(price2 - price1) / [(price2 + price1) / 2] ÷ (quantity2 - quantity1) / [(quantity2 + quantity1) / 2]
Using this formula, we get => ($14 - $10) / [($14 + $10) / 2] ÷ (460 - 350) / [(460 + 350) / 2]
= $4 / $12 ÷ 110 / 405
= 0.33 ÷ 0.27 => 1.22
the price elasticity of supply, using the midpoint method, for this range of prices is approximately 1.22.
This means that the quantity supplied is relatively responsive to changes in price. A price increase of 1% would lead to a supply increase of 1.22%. Similarly, a price decrease of 1% would lead to a supply decrease of 1.22%.
the price elasticity of supply can provide useful information for manufacturers and policymakers in determining how much supply will respond to changes in price, and the midpoint method is a helpful tool for calculating it.
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Which of the following would cause the balance sheet to appear stronger and income statement to appear more profitable than it should? Click the answer you think is right. a.Recording costs as Construction in Progress even though the asset is completed. b.Expensing costs that should be capitalized. c.Recording the costs of merchandise purchased on account. d.Capitalizing costs that should be expensed.
The correct answer is d.
Capitalizing costs that should be expensed would cause the balance sheet to appear stronger and income statement to appear more profitable than it should.
Capitalizing costs means that they are recorded as assets on the balance sheet, rather than being expensed immediately on the income statement. This can make the company's financial position look stronger than it really is, because it appears to have more assets than it actually does.
Additionally, because the expenses are not being recorded on the income statement, the company's profitability may appear higher than it actually is.
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Although exposing children to hazardous work and long work hours is unquestionably deplorable, which of the following, if true, leads to a moral dilemma?Group of answer choicesChildren are not as efficient as adults in doing physically demanding work.Working children learn independence.Many child laborers come from poverty-stricken families.Use of adult workers instead leads to higher labor costs.
Many child laborers come from poverty-stricken families.
This leads to a moral dilemma because, while it's deplorable to expose children to hazardous work and long hours, the fact that many child laborers come from poverty-stricken families complicates the issue.
On one hand, society wants to protect children from harm and ensure they have a proper childhood, including education and play. On the other hand, these children may be working to help support their families, and removing their source of income could exacerbate their poverty.
The dilemma arises from the competing desires to protect children's rights and to alleviate poverty. It becomes a challenge to find a balance between these two important considerations.
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Netherfield Ltd is considering a contract to produce a particular product. The product will require the use of eight hours skilled labour and four hours semi-skilled labour. The skilled employee is paid £16 per hour and is currently employed on other work. Someone would need to be recruited on a temporary basis to do this other work at a cost of £18 per hour. A semi-skilled employee is available to help produce the product and is paid £13 per hour. There is currently no other work for this employee. What is the relevant labour cost of this contract?
The relevant labor cost of this contract would be calculated as follows:
- Skilled labor cost: 8 hours x £16 = £128
- Additional temporary labor cost: 8 hours x £18 = £144
- Semi-skilled labor cost: 4 hours x £13 = £52.
Therefore, the total relevant labor cost of this contract would be £324 (£128 + £144 + £52).
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A corporation issued 1,200 shares of common stock at $10 per share. if the stock has a par value of $7 per share, which will be part of the journal entry to record the issuance?
The journal entry to record the issuance of 1,200 shares of common stock at $10 per share with a par value of $7 per share includes debiting Cash for $12,000, crediting Common Stock for $8,400, and crediting Paid-in Capital in Excess of Par for $3,600.
Here's a step-by-step explanation for the journal entry:
1. Calculate the total value of the shares issued: 1,200 shares x $10 per share = $12,000.
2. Calculate the total par value of the shares issued: 1,200 shares x $7 par value = $8,400.
3. Calculate the excess of the issue price over the par value: $12,000 - $8,400 = $3,600.
Now, you can record the journal entry as follows:
Debit: Cash for $12,000
Credit: Common Stock for $8,400
Credit: Paid-in Capital in Excess of Par for $3,600
When a corporation issues 1,200 shares of common stock at $10 per share with a par value of $7 per share, the journal entry to record the issuance would include the following terms: Common Stock and Paid-in Capital in Excess of Par.
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what is not an example of a source where you might gather field information needed to track job performance? material invoices equipment time tickets time cards subcontractor billing statements city inspection reports
City inspection reports are not an example of a source where you might gather field information needed to track job performance.
City inspection reports are documents that are issued by city or government officials after they have conducted an inspection of a particular site or property. The purpose of these reports is to highlight any violations, hazards or non-compliance with the building codes or regulations that may pose a risk to public health or safety. While city inspection reports can provide valuable information about the status of a building or property, they do not contain any data that is directly related to job performance or productivity.
Therefore, they are not a useful source of information for tracking job performance, and it is necessary to seek other sources such as material invoices, equipment, time tickets, time cards, and subcontractor billing statements to gather the required information.
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Profit maximization implies that perfectly competitive firms should expand production up to the point where marginal revenue ________ marginal cost
Profit maximization implies that perfectly competitive firms should expand production up to the point where marginal revenue equals marginal cost.
This is because at this point, the firm is producing at the level where the additional revenue generated by producing one more unit is equal to the additional cost of producing that unit. Any level of production beyond this point would result in a decrease in profits, as the cost of producing each additional unit would exceed the revenue generated by selling it.
Therefore, for a perfectly competitive firm to maximize its profits, it should continue to expand production as long as the marginal revenue is greater than or equal to the marginal cost, and stop when the two are equal.
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assuming the facts in part 1, if tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (assume no dividends in arrears.)
The following is the journal entry to reflect the issuing of 6,400 shares of $100 par value by Tamas Company Cash $665,600 debited Credit Preferred Stock has a par value of $100. $640,000, Capital paid as credit that is above par. $25,600 in preferred stock.
The facts in part 1, if tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders.
1. Cash debit of $665,600 (6,400 shares at a price of $104 per).
Credit Preferred stock, par value of $100.
$640,000 (6,400 shares with a par value of $100 each)
Capital paid as credit that is above par.
$25,600 for preferred stock
($665,600 - $640,000)
c. Dividend paid to preferred shareholders:
Dividend paid to preferred shareholders equals 6,400 shares multiplied by $100 par value multiplied by 0.08 equals $51,200.
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Sagan is borrowing money from Big Bank. His friend Leda, who works for Graille Systems, signs the loan agreement promising to pay the debt if Sagan does not. In this scenario, ________ is the obligee, and ________ obligor.Big Bank, Sagan
Answer: TS: In the scenario where Sagan borrows money from Big Bank and his friend Leda signs the loan agreement promising to pay the debt if Sagan does not, Big Bank is the obligee, and Leda is the obligor.
E1: An obligee is a person or entity that is owed a debt or other obligation by another party. In this scenario, Big Bank is the obligee because it is the lender that is owed the money by Sagan.
E2: An obligor is a person or entity that is obligated to pay a debt or fulfill some other obligation to another party. In this scenario, Leda is the obligor because she has signed the loan agreement promising to pay the debt if Sagan does not.
C: Therefore, in the scenario where Sagan borrows money from Big Bank and his friend Leda signs the loan agreement promising to pay the debt if Sagan does not, Big Bank is the obligee, and Leda is the obligor.
Explanation:
In this scenario, Big Bank is the obligee, and Sagan is the primary obligor.
An obligee is the party to whom an obligation or duty is owed, while an obligor is the party responsible for fulfilling that obligation.
In this case, Big Bank lends money to Sagan, so it is the party that expects repayment, making it the obligee.
Sagan, as the borrower, is responsible for repaying the loan, making him the primary obligor. Leda, by signing the loan agreement, becomes a secondary obligor, promising to pay the debt if Sagan does not fulfill his obligation.
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Marie Drove Her Car To A Parkade. The Attendant Took Her Keys, Saying That He Would Park The Vehicle And That He Needed The Keys Because The Vehicle Might Be Required To Be Moved. In The Parkade, Vehicles Were Parked In Two Tiers. To Remove A Vehicle From The Second Tier, It Was Necessary To Move The Vehicle Immediately In Front Of It In The First Tier.Marie drove her car to a parkade. The attendant took her keys, saying that he would park the vehicle and that he needed the keys because the vehicle might be required to be moved. In the parkade, vehicles were parked in two tiers. To remove a vehicle from the second tier, it was necessary to move the vehicle immediately in front of it in the first tier. Marie paid for the parking and was given a ticket with her vehicle licence number written on it. At the entrance to the parkade, two signs were prominently displayed, one requesting that the conditions on the ticket be read and the other stating that the car with its contents were left at the owner's risk. The conditions on the ticket repeated that the car was parked at the owner's risk and that charges were only for parking space use and that the parkade assumed no responsibility for loss through fire, theft, collision, or otherwise to the car or its contents, whether due to the parkade's negligence or otherwise. During the day Marie's vehicle was temporarily parked on the street immediately in front of the parkade to accommodate the removal of several vehicles. The attendant threw the keys under the front seat and left the car unlocked. The vehicle was stolen and never recovered. Marie said she did not see the signs nor read the conditions on the ticket.Discuss whether bailment has been created, the type and the standard of care that applies to the facts. Should Marie succeed in an action against the parkade?
Bailment is created when the owner of property (Marie) delivers possession of the property to someone else (the parkade) for a specific purpose (parking). In this case, Marie delivered her car to the parkade for the purpose of parking it, which created a bailment.
The type of bailment that has been created is known as a "gratuitous bailment." This means that Marie did not pay the parkade to park her car, but instead the parking was provided for free. In a gratuitous bailment, the bailee (parkade) has a lower standard of care than in a bailment for hire. The bailee only needs to use slight care in the handling of the property.
However, the parkade still has a duty to take reasonable care of the car while it is in its possession. Leaving the car unlocked and throwing the keys under the front seat does not meet this standard of care. Therefore, the parkade may be liable for the loss of Marie's car due to their negligence.
Marie may not succeed in an action against the parkade if she did not see the signs or read the conditions on the ticket. The signs and conditions on the ticket clearly stated that the parkade assumed no responsibility for loss or damage to the car or its contents. However, it may be argued that the parkade did not take reasonable steps to draw Marie's attention to these conditions, such as providing a verbal warning or making the conditions more prominent on the ticket. Ultimately, whether Marie succeeds in an action against the parkade will depend on the specific facts and circumstances of the case.
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consider a firm operating in a perfectly competitive market. the firm is producing 40 units of output, has an average total cost of production equal to $5, and is earning $280 economic profit in the short run. what is the current market price? group of answer choices
The current market price is $12 per unit.
Based on the information provided, we can calculate the current market price in a perfectly competitive market.
Since the firm is earning an economic profit of $280 and has an average total cost (ATC) of $5, we can use the following formula:
Economic Profit = Total Revenue - Total Cost
First, we need to find the Total Cost (TC):
TC = ATC x Quantity
TC = $5 x 40 units
TC = $200
Now, we can find the Total Revenue (TR) using the economic profit:
TR = Economic Profit + TC
TR = $280 + $200
TR = $480
Finally, we can determine the market price by dividing the total revenue by the quantity produced:
Market Price = TR / Quantity
Market Price = $480 / 40 units
Market Price = $12
So, the current market price in a perfectly competitive market is $12 per unit.
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Explain what will happen to firms' market shares and themarket price if one company has access to a lower-cost greentechnology than its rivals.
If one company has access to a lower-cost green technology than its rivals, that company will increase its market share, and the market price will decrease.
Access to a lower-cost green technology will allow the company to produce its goods or services at a lower cost than its competitors. This will give the company a cost advantage over its rivals, which will allow it to lower the price of its products and gain a larger market share. As the company gains more market share, it will be able to produce more units at a lower cost due to economies of scale, further reducing its costs and allowing it to lower the price even further. This process will continue until the market price reaches a level where the company is earning only normal profits. At this point, the company will have increased its market share, and the market price will have decreased due to the increased competition.
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Question 3: In the long run, which variables shift the AggregateSupply curve? Given 2 example events that shift the LRAS to theleft.
In the long run, the Aggregate Supply (AS) curve can shift due to changes in the factors of production, such as labour, capital, and technology.
For example, an increase in the availability of skilled labor or technological advancements that increase productivity can shift the LRAS to the right, increasing the economy's potential output. Conversely, events that decrease productivity or make it harder to produce goods and services, such as natural disasters or an increase in regulations, can shift the LRAS to the left.
Another example of an event that can shift the LRAS to the left is an increase in the cost of production, such as a rise in energy or raw material costs. This would cause firms to reduce production, leading to a decrease in potential output and a leftward shift in the AS curve. Overall, changes in supply-side factors can have a significant impact on the economy's potential output in the long run.
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(figure: short-run monopoly in the market for electricity) use figure: short-run monopoly in the market for electricity. the profit-maximizing rule is satisfied by the intersection at point:
Short-run monopoly in the market for electricity. the profit-maximizing rule is satisfied by the intersection at point: N. Thus, option (c) is correct.
Producing at the level where marginal revenue is equal to marginal cost (MR = MC) is the decision that will maximise profits for the monopoly.
For this short-term monopoly market, N stands in for the profit-maximizing price because the profit-maximizing quantity will be reached when MR=MC, and the maximising profit price relates to the upper limit of the intersection point of MR and MC.
Therefore, option (c) is correct.
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Your question is incomplete, but most probably the full question was.
(figure: short-run monopoly in the market for electricity) use figure: short-run monopoly in the market for electricity. the profit-maximizing rule is satisfied by the intersection at point:
PQNOMays Company can sell all of product A that it produces but only 160,000 units of product Z. The company has limited production capacity. It can produce 6 units of A per hour or 10 units of Z per hour, and it has 30,000 production hours available. Contribution margin per unit is $12 for A and $10 for Z. What is the most profitable sales mix for this company?
The profitable sales mix for Mays Company is 15,000 units of A, 25,000 units of Z and contribution margin of $35,000.
To determine the most profitable sales mix for Mays Company, we need to calculate the contribution margin per hour for each product.
For product A, the contribution margin per hour is calculated as follows:
6 units/hour x $12 contribution margin per unit = $72 contribution margin per hour
For product Z, the contribution margin per hour is calculated as follows:
10 units/hour x $10 contribution margin per unit = $100 contribution margin per hour
Since the company has limited production capacity of 30,000 hours, we can use linear programming to find the optimal production mix that maximizes the total contribution margin.
Let x be the number of hours allocated to product A, and y be the number of hours allocated to product Z.
The objective function to maximize is:
Z = 12x + 10y
Subject to the following constraints:
6x + 10y ≤ 30,000 (production capacity constraint)
x ≥ 0 (non-negativity constraint)
y ≥ 0 (non-negativity constraint)
Using a linear programming solver, we find that the optimal production mix is:
x = 2,500 hours (allocated to product A)
y = 2,500 hours (allocated to product Z)
This means that the most profitable sales mix for Mays Company is to produce 15,000 units of product A (6 units/hour x 2,500 hours) and 25,000 units of product Z (10 units/hour x 2,500 hours), resulting in a total contribution margin of $350,000 (15,000 units of A x $12 contribution margin per unit + 25,000 units of Z x $10 contribution margin per unit).
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Charlie Lilly's filing status is married filing jointly, and he has earned gross pay of $1,850. Each period he makes a 401(k) contribution of 15% of gross pay and contributes $60 to a dependent care flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $84,200.
Social Security tax = $
Medicare tax = $
Charlie's Social Security tax to date would be 6.2% of his taxable earnings, which is $84,200. Therefore, his Social Security tax would be $5,214.40. Charlie's Medicare tax to date would be 1.45% of his taxable earnings, which is $84,200. Therefore, his Medicare tax would be $1,219.90.
To determine Charlie Lilly's Social Security and Medicare taxes, we'll first need to calculate his taxable earnings for this pay period, taking into account his 401(k) contribution and dependent care flexible spending account contribution.
1. Calculate 401(k) contribution for this pay period:
$1,850 (gross pay) × 15% = $277.50
2. Calculate taxable earnings for this pay period:
$1,850 (gross pay) - $277.50 (401(k) contribution) - $60 (dependent care FSA contribution) = $1,512.50
3. Calculate Social Security tax for this pay period:
Since his current year earnings for Social Security tax are $84,200 and the maximum taxable earnings for Social Security in a year is $142,800 (for 2021), Charlie is still below the threshold. Therefore, Social Security tax will apply to his taxable earnings for this pay period.
$1,512.50 (taxable earnings) × 6.2% (Social Security tax rate) = $93.78
4. Calculate Medicare tax for this pay period:
There is no earnings limit for Medicare tax, so the entire taxable earnings amount is subject to the tax.
$1,512.50 (taxable earnings) × 1.45% (Medicare tax rate) = $21.93
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What are deposits and the money supply if the required reserveratio is 50% and reserves are 5,000 with currency in circulation of2,000 ? (use the assumptions of the simple money multiplier)
The deposits are 10,000, and the money supply is 22,000 when the required reserve ratio is 50%, reserves are 5,000, and currency in circulation is 2,000, using the assumptions of the simple money multiplier.
If the required reserve ratio is 50%, it means that banks are required to hold 50% of deposits as reserves. In this scenario, reserves are at $5,000 and the currency in circulation is $2,000.
To calculate the money supply, we can use the simple money multiplier formula:
Money supply = (1 / Required reserve ratio) x Reserves
Substituting the given values, we get:
Money supply = (1 / 0.5) x $5,000
Money supply = $10,000
Therefore, with a required reserve ratio of 50%, reserves of $5,000, and currency in circulation of $2,000, the money supply is $10,000.
To answer your question, we'll follow these steps:
1. Determine the reserve ratio.
2. Calculate the money multiplier.
3. Find the deposits using the reserves and reserve ratio.
4. Calculate the money supply using the deposits, money multiplier, and currency in circulation.
Explanation:
1. The required reserve ratio is given as 50% (0.5 in decimal form).
2. The money multiplier can be calculated using the formula: Money Multiplier = 1 / Reserve Ratio. In this case, Money Multiplier = 1 / 0.5 = 2.
3. Since reserves are 5,000 and the reserve ratio is 0.5, we can find the deposits using the formula: Deposits = Reserves / Reserve Ratio. Therefore, Deposits = 5,000 / 0.5 = 10,000.
4. To calculate the money supply, we use the formula: Money Supply = (Deposits x Money Multiplier) + Currency in Circulation. Plugging in the values, Money Supply = (10,000 x 2) + 2,000 = 22,000.
In conclusion, the deposits are 10,000, and the money supply is 22,000 when the required reserve ratio is 50%, reserves are 5,000, and currency in circulation is 2,000, using the assumptions of the simple money multiplier.
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if not expressly granted, which of the following implied powers would a trustee have? i. power to sell trust property ii. power to borrow from the trust iii. power to pay trust expenses
If not expressly granted, a trustee would have the implied power to pay trust expenses. However, the implied powers to sell trust property and to borrow from the trust would require a level of trust and confidence in the trustee, as well as explicit authorization from the trust document or beneficiaries.
Trust is a crucial aspect in granting such powers, as the trustee is responsible for managing the trust assets and ensuring their proper use. Additionally, expenses incurred by the trustee in managing the trust must be reasonable and necessary to carry out their duties effectively.
A trustee has various implied powers to manage the trust effectively.
If not expressly granted, the following implied powers would typically be held by a trustee:
i. Power to sell trust property: A trustee has the implied power to sell trust property if it is necessary to fulfill their duties and responsibilities in managing the trust.
ii. Power to borrow from the trust: Generally, a trustee does not have the implied power to borrow from the trust. However, if it's in the best interest of the trust and its beneficiaries, a trustee may seek court approval to borrow funds.
iii. Power to pay trust expenses: A trustee has the implied power to pay trust expenses, as they are responsible for administering the trust, which includes handling expenses that arise in managing the trust property and distributions to beneficiaries.
Remember that these implied powers are subject to the terms of the trust and any applicable laws, and the trustee must always act in the best interests of the trust and its beneficiaries.
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QUESTION 155 Blue-chip Equity Investments Ltd., wants to re-classify its investments in accordance with AS 13 (Revised). State the values, at which the investments have to be reclassified in the following cases: (i) Long term investments in Company A, costing * 8.5 lakhs are to be re-classified as current. The company had reduced the value of these investments to 6.5 lakhs to recognise 'other than temporary' decline in value. The fair value on date of transfer is 6.8 lakhs. (ii) Long term investments in Company B, costing # 7 lakhs are to be re-classified as current. The fair value on date of transfer is 8 lakhs and book value is *7 lakhs.
The investments should be reclassified at 6.8 lakhs for first case and for second case the investments should be reclassified at 7 lakhs.
(i) Long term investments in Company A:
1. Initial cost: 8.5 lakhs
2. Reduced value due to 'other than temporary' decline: 6.5 lakhs
3. Fair value on date of transfer: 6.8 lakhs
When reclassifying as current investments, the investments should be valued at the lower of cost and fair value. In this case, the lower value is the fair value on the date of transfer, which is 6.8 lakhs. Therefore, the investments should be reclassified at 6.8 lakhs.
(ii) Long term investments in Company B:
1. Initial cost: 7 lakhs
2. Fair value on date of transfer: 8 lakhs
3. Book value: 7 lakhs
Similar to the previous case, when reclassifying as current investments, the investments should be valued at the lower of cost and fair value. In this case, the cost (7 lakhs) is lower than the fair value on the date of transfer (8 lakhs). Therefore, the investments should be reclassified at 7 lakhs.
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2 Scenario Your client, InsureCorp, is an insurance company considering launching an 'income insur- ance' product in the island nation of Autarka. Income insurance is a product that fully insures a household against changes in income caused by a major injury or illness. At present, no businesses are selling income insurance products in Autarka. Initial mar- ket research suggests that there are 10,000 households in Autarka interested in purchasing income insurance. Your client expects that the fixed cost of launching the income insurance product will be $20,000,000 per year, and that each policy issued to a customer will cost the company an additional $1,500 in sales commissions. 2.1 Your task Your client wants you to analyse the potential market for income insurance and report on the following: • What is the maximum price the company can charge a household for an income insurance policy? • What is the expected profit (or loss) for the company if it becomes a monopoly provider of income insurance? Is there a risk that rival insurance companies will also enter the market, selling identical income insurance products? If so, what would be the expected profit of your client? (You should assume that any competitors would face the same costs as your client.)
The maximum price the company can charge a household for an income insurance policy depends on the level of competition in the market.
Without competition, the company can charge the maximum price that households are willing to pay for the product. If there is competition, the company must price the policy competitively in order to remain competitive.
Assuming that the company is the only provider of income insurance in Autarka, the company can charge up to $20,000 per policy, netting $18,500 in profit per policy. If there is competition, the company would need to lower the price in order to remain competitive, resulting in a lower expected profit per policy.
There is a risk that rival insurance companies will enter the market, which would lead to price competition and a decrease in expected profits. Therefore, it is important for the company to monitor the market and be prepared to adjust the price of the policy accordingly.
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A firm uses capital and labour to produce output according to the following production function: q(K,L)=KL. It pays $15 per hour for using capital and hires labour at $20 per hour. Select all that applies:
a.The long run output expansion path for this firm is a straight line.
b.Marginal rate of technical substitution is given byM R T S subscript L K end subscript equals fraction numerator K over denominator 2 L end fraction
c.This production function exhibits constant return to scale.
d.Assume that the firm wants to produce 2,000 units of output. If price of capital decreases to $10 per hour, the firm will use more capial and less labour.e.This production function exhibits increasing return to scale; thus, the firm enjoys economy of scale.
f.This production function exhibits constant return to scale; thus, the average cost for this firm is constant (does not depend on the output it produces)
The correct sentences with regard to production function are a,b,c,d and f.
The long run output expansion path for this firm is a straight line. Marginal rate of technical substitution is given by MRTS subscript LK equals K/(2L). This production function exhibits constant return to scale. Assume that the firm wants to produce 2,000 units of output. If price of capital decreases to $10 per hour, the firm will use more capital and less labour.
This production function exhibits constant return to scale; thus, the average cost for this firm is constant (does not depend on the output it produces). Statements b and e are incorrect. The Marginal Rate of Technical Substitution (MRTS) is given by the ratio of marginal products (MP_L/MP_K), which in this case is equal to K/L, not K/2L. Additionally, the production function exhibits constant return to scale, not increasing return to scale.
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the direct materials budget shows: what are the direct materials per unit? question 5 options: 1) .33 pounds 2) 3.0 pounds 3) 3.3 pounds 4) cannot be determined from the data provided.
The direct materials budget shows: what are the direct materials per unit cannot be determined from the data provided. The correct option is 4) cannot be determined from the data provided.
The direct materials budget shows the estimated amount of materials that will be required to produce the planned level of production. This budget takes into consideration the beginning and ending inventory levels, as well as the production volume, to determine the amount of materials that will need to be purchased during the budget period.
In order to calculate the direct materials per unit, we need to divide the total amount of materials needed by the number of units to be produced. However, the question does not provide any information regarding the total amount of materials or the number of units to be produced, so we cannot determine the direct materials per unit from the data provided.
Therefore, the answer to question 5 is option 4, "cannot be determined from the data provided." It is important to note that the direct materials per unit will vary depending on the type of product being produced and the specific materials required for its production.
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what positions in the above traded silver futures option and in silver futures would make the portfolio both gamma neutral and delta neutral?
To make a portfolio both gamma neutral and delta neutral in traded silver futures and silver futures options, one would need to take opposite positions that offset each other's risk. To make the portfolio gamma neutral, they can adjust the strike prices and expiration dates of the options to balance out the gamma risk.
To create a portfolio that is both gamma neutral and delta neutral with silver futures options and silver futures, you will need to take the following positions:
1. Determine the current delta and gamma of your portfolio. Delta represents the rate of change in the option's price relative to a change in the underlying asset's price, while gamma measures the rate of change in delta with respect to changes in the underlying asset's price.
2. To achieve delta neutrality, you must take a position in silver futures that has an equal and opposite delta to your existing portfolio. This will hedge your exposure to price movements in the underlying asset. For example, if your portfolio's delta is +50, you would take a short position in silver futures with a delta of -50.
3. To achieve gamma neutrality, you must take positions in silver futures options that have an equal and opposite gamma to your existing portfolio. This will hedge your exposure to changes in the underlying asset's price volatility. For example, if your portfolio's gamma is +100, you would take positions in silver futures options with a total gamma of -100.
4. Continuously monitor your portfolio's delta and gamma, and adjust your positions in silver futures and silver futures options as needed to maintain neutrality.
By taking these positions, your portfolio will be both delta neutral and gamma neutral, reducing your exposure to price movements and volatility in the silver market.
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What were the charges against Socrates and how did he answer
those? Why didn't he leave Athens after?
Socrates was charged with impiety and corrupting the youth of Athens. He was accused of not believing in the gods of Athens and introducing new gods, as well as teaching his followers to question the authority of the state.
During his trial, Socrates defended himself by saying that he was simply asking questions to help his fellow citizens become wiser and that he had no intention of corrupting the youth. Despite his defense, Socrates was found guilty and sentenced to death by drinking hemlock.
As for why he didn't leave Athens after being charged, Socrates believed in living a life of integrity and accepting the consequences of one's actions. He refused to flee and instead chose to face his punishment, believing that it was better to die for what he believed in than to compromise his principles. Additionally, leaving Athens would have been seen as an admission of guilt, which Socrates refused to do.
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concentration ratios multiple choice may overstate the degree of competition because they ignore imported products. may understate the degree of competition because they ignore imported products. may overstate the degree of competition because interindustry competition is ignored. provide detailed insights as to the price and output behavior of firms that compose the various industries.
Concentration ratios may understate the degree of competition because they ignore imported products(B).
Concentration ratios are commonly used to measure the degree of competition in an industry. However, these ratios may be misleading if they ignore imported products. When concentration ratios are used, they only consider domestic firms and their market share, but do not account for imported products.
This can lead to an understatement of the degree of competition in the market. Imported products can often be substitutes for domestic products, and their availability can influence the price and output behavior of firms in the industry.
Therefore, ignoring imported products can result in an incomplete analysis of the competitive dynamics in the market.
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In the context of the horizontal structure of a firm, research, legal, accounting, and human resources departments are examples of _____ departments.
In the context of the horizontal structure of a firm, research, legal, accounting, and human resources departments are examples of support departments.
Support departments are specialized units within an organization that provide essential services and expertise to facilitate the functioning of the core business activities.
In a horizontal structure, various departments work together as a team to achieve the organization's objectives. Research, legal, accounting, and human resources departments play a crucial role in this process by offering their specialized skills and knowledge.
For instance, the research department helps with product development, the legal department ensures compliance with laws and regulations, the accounting department manages finances and budgeting, and the human resources department handles employee recruitment, training, and welfare.
By working together with the core departments, these support departments ensure the smooth functioning and success of the organization.
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