Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 3.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers
Answer:
Bond Price = 875.0948 euro rounded off to 875.09 euro
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.038 = 38 euro
Total periods (n)= 23
r or YTM = 0.047 or 4.7%
The formula to calculate the price of the bonds today is attached.
Bond Price = 38 * [( 1 - (1+0.047)^-23) / 0.047] + 1000 / (1+0.047)^23
Bond Price = 875.0948 euro rounded off to 875.09 euro
Related Questions
During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is a. Work in Process150,000 Wages Payable150,000 b. Wages Payable150,000 Work in Process150,000 c. Wages Payable175,000 Work in Process175,000 d. Work in Process175,000 Wages Payable175,000
Answers
Answer:
d. Work in Process 175,000 Wages Payable 175,000
Explanation:
Production Orders and General factory expenses are all manufacturing costs and are included in Work In Process Cost for Inventory Valuation. Since the wages have not been paid yet, a Liability account - Wages Payable has to be credited in total of amount due.
The December 31, 2014 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2015, the following transactions occurred: sales on account $1,500,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written off $36,000; previously written off accounts of $6,000 were collected.A. Journalize the 2015 transactions.B. If the company uses the percentage-of-sales basis to estimate bad debt expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at December 31, 2015?C. If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 8% of accounts receivable, what is the adjusting entry at December 31, 2015?D. Which basis would produce a higher net income for 2015 and by how much?
Answers
Answer:
Barone Company
General Journal for 2015 transactions:
Debit Accounts Receivable $1,500,000
Credit Sales Revenue $1,500,000
To record sales on account.
Debit Sales Returns $50,000
Credit Accounts Receivable $50,000
To record sales returns and allowances.
Debit Cash Account $1,250,000
Credit Accounts Receivable $1,250,000
To record cash collections from customers.
Debit Allowance for Doubtful Accounts $36,000
Credit Accounts Receivable $36,000
To record uncollectible written-off.
Debit Accounts Receivable $6,000
Credit Allowance for Doubtful Accounts $6,000
To reinstate previously written off accounts.
Debit Cash Account $6,000
Credit Accounts Receivable $6,000
To record collection of previous write-off.
Adjusting Entry at December 31, 2015:
B. Using 3% of net sales:
Debit Bad Debt Expense $41,500
Credit Allowance for Doubtful Accounts $41,500
To record bad debt expense.
C. Using 8% of Receivables:
Debit Bad Debt Expense $43,120
Credit Allowance for Doubtful Accounts $43,1`20
To record bad debt expense.
D. 3% of net sales produces a higher net income and by $1,620
Explanation:
1. Accounts Receivable
Beginning balance (debit) = $400,000
Sales 1,500,000
Sales Returns & allowances (50,000)
Cash Collections (1,250,000)
Uncollectible write-off (36,000)
Reinstatement of write-off 6,000
Cash Collection (6,000)
Ending balance $564,000
2. Allowance for Doubtful Accounts
Beginning balance (Credit) $32,000
Uncollectible write-off (36,000)
Reinstatement of write-off 6,000
Balance pre-year adjustment $2,000
Using 3% of net sales
Bad debt expense $41,500
Ending balance (credit) $43,500
Balance pre-year adjustment $2,000
Using 8% of receivable balance
Bad debt expense $43,120
Ending balance (credit) $45,120
3. Allowance for Doubtful Accounts (Ending balance)
3% of net sales = $1,450,000 x 3% = $43,500
8% of receivables = $564,000 x8% = $45,120
If the December 31, 2014 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. The journal entries will be:
A. Journalize the 2015 transactions.
Debit Accounts Receivable $1,500,000
Credit Sales Revenue $1,500,000
(To record credit sales)
Debit Sales Returns and Allowances $50,000
Credit Accounts Receivable $50,000
(To record credit to customers)
Debit Cash $1,250,000
Credit Accounts Receivable $1,250,000
(To records collection of receivables)
Debit Allowance for Doubtful Accounts $36,000
Credit Accounts Receivable $36,000
(To record write of specific account)
Debit Accounts Receivable $6,000
Credit Allowance for Doubtful Accounts $6,000
(To record written off accounts)
Debit Cash Account $6,000
Credit Accounts Receivable $6,000
(To record collection of previous write-off)
B. Preparation of the journal entry using the percentage-of-sales basis
Percentage-of-sales basis:
Sales revenue $1,500,000
Less: Sales Returns and Allowances $50,000
Net Sales $1,450,000
($1,500,000-$50,000)
Bad debt percentage 3%
Bad debt provision $43,500
(3%×$1,450,000)
Journal entry
Dec. 31
Debit Bad Debt Expense $43,500
Credit Allowance for Doubtful Account $43,500
C. Preparation of the journal entry using the percentage of receivables basis
Percentage of receivables basis
Account receivable
Dr Cr
$400,000 $50,000
$1,500,000 $1,250,000
$6,000 $36,000
$6.000
Bal. $564,000
Allowance for Doubtful Accounts
Dr Cr
$36,000 $32,000
$6,000
Bal. $2,000
Required balance $45,120
($564,000 × .08)
Less Balance before adjustment $2,000
Adjustment required $43,120
($45,120-$2,000)
Journal entry
Dec. 31
Debit Bad Debt Expense $43,120
Credit Allowance for Doubtful Account $43,120
D. Calculation to determine the basis that would produce a higher net income for 2015 and by how much?
Percentage-of-sales basis $43,500
(3%×$1,450,000)
Percentage of receivables basis $43,120
[($564,000 × .08) -$2,000]
Difference $380
Percentage-of-sales basis will produce a higher net income for 2015 by $380
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Assume the same data as in Problem 2 for the cost to make a Widget. What if we could sell the widgets we make for $50 to other customers. We receive a special order for 1,000 more widgets but that customer wants to just pay $30. It would not affect our current orders or our fixed costs and we have plenty of plant capacity.
Answers
Answer:
Effect on income= number of units soldünitary contribution margin
Explanation:
Giving the following information:
We receive a special order for 1,000 more widgets but that customer wants to just pay $30.
We weren't provided with enough information regarding variable costs. But, I can provide a small example and formulas.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Variable cost per unit (materials, labor, variable overhead)= $28
To calculate the effect on income, we need to use the following formula:
Effect on income= number of units soldünitary contribution margin
Effect on income= 1,000*(30 - 28)
Effect on income= $2,000 increase
Creighton Construction ordered $200,000 worth of steel beams for a new project. The invoice listed trade discounts of 30/20/15. The Net Price = $95,200
A. True
B. False
Answers
Answer:
A. True
Explanation:
The trade discounts of 30/20/15 indicate that the discounts are deducted one after the other from the list price.
First, you calculate the price after the 30% discount from $200,000:
200,000*(1-0.3)=200,000*0.7= $140,000
Now, you have to calculate the new value after the 20% discount from $140,000:
140,000*(1-0.2)=140,000*0.8= $112,000
Then, you have to calculate the new value after the 15% discount from $1112,000:
112,000*(1-0.15)=112,000*0.85=$95,200
According to this, the Net Price is $95,200 and the statement is true.
________ capital can be defined as the difference between the market value and book value of a firm, or a measure of its intangible assets.
Answers
Answer:
Intellectual
Explanation:
Intellectual capital refers to the capital in which the intangible assets should be considered with respect to the relationship, relative capital invested in the company
Therefore in the given case it is a measure of an intangible assets and shows the difference between the market value and the book value of a firm
The Cash account of Gate City Security Systems reported a balance of $2,530 at December 31, 2018. There were outstanding checks totaling $ 500 and a December 31 deposit in transit of $ 400. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $3,120. Included in the bank balance was a collection of $ 500 on account from Jane Lindsey, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $ 10 of interest revenue that Gate City earned on its bank balance.
Requried:
Prepare Gate City's bank reconciliation at December 31.
Answers
Answer:
Gate City Security Systems
Bank Reconciliation at December 31, 2018
Book:
Balance , December 31, 2018 $2,530
Add:
Collection from Jane Lindsey $500
Interest revenue $10
Less:
Service charges $20
Adjusted book balance December 31, 2018 $3,020
Bank:
Balance , December 31,2018 $3,120
Add:
Deposit in transit $400
Less:
Outstanding cheque $500
Adjusted bank balance December 31, 2018 $3,020
You short-sell 200 shares of Rock Creek Fly Fishing Co. today at $50 per share. If you want to limit your loss to $2,500, $ Blank 1. Fill in the blank, read surrounding text. is the maximum price per share you should place when you close your position
Answers
Answer:
So, the maximum price per share that should place is $62.5
Explanation:
As per given data
Current Price of stock = $50
Numbers of share = 200 shares
Limit of loss = $2,500
We will use the following formula to calculate the Maximum price of stock
Total Maximum loss possible = [ ( Prefix Price of share - Current price of share ) x Numbers of shares of stock ]
$2,500 = [ ( Prefix Price of share - $50 ) x 200 ]
$2500 / 200 = Prefix Price of share - $50
$12.5 + $50 = Prefix Price of share
$62.5 = Prefix Price of share
Therefore, thee order will be stopped at $62.50
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Adam currently has an awareness level of 80% . While an important product for Andrews, Adam’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Adam loses one-third of its awareness each year, what will Adam’s awareness level be next year?
Answers
Answer:
52.88%
Explanation:
The computation of the awareness level for next year is shown below
But before that we need to find out the ending awareness i.e Y which is
= 80% × (1 - 1 ÷ 3)
= 53.33%
Now awareness after the promotion is
= 53.33% + 26%
= 79.33%
Now the ending awareness i.e (Y +1) is
= 79.33% × 2 ÷ 3
= 52.88%
Hence, the awareness level next year is 52.88%
This exit strategy allows the entrepreneur an opportunity to buy back venture capital stock at cost and an additional premium. a. buyback b. retract clause c. IPO d. exit clause
Answers
Answer:
A. Buyback
Explanation:
The exit strategy that provides the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium is a Buyback
A buyback is when an entrepreneur buys its own shares in the stock market. It is a repurchase and minimizes/decreases the number of shares outstanding, which causes earnings per share to be inflated and, in many cases, the stock value also.
On the first day of the fiscal year, a company issues $65,000, 6%, five-year installment notes that have annual payments of $15,431. The first note payment consists of $3,900 of interest and $11,531 of principal repayment. Journalize the following transactions. Be sure to include the year in the date for both entries. Refer to the Chart of Accounts for exact wording of account titles.
2016
Jan. 1 Installment notes are issued
2017
Jan. 1 First annual note payment is made
Answers
Answer: Please see explanation column for answer.
Explanation:
a) Journal to record issuance of Installment notes
Date Account Debit Credit
Jan. 1, 2016 Cash $65,000
Notes payable $65,000
b) Journal to record First annual note payment
Date Account Debit Credit
Jan. 1, 2017 Interest expense $3,900
Notes payable $11, 531
Cash $15,431
Darin has a tax basis of $7,000 and an at-risk amount of $5,000 in a partnership where he is a 25% owner. The partnership incurred a loss of $40,000 in the current year. How much of the loss will be allocated to Darin and how much will he be able to deduct in the current year assuming he materially participates in the business
Answers
Answer:
Darin will have a $10000 and also he will be able to deduct $5,000.
Explanation:
Solution
Recall that:
Darin tax basis =$7000
Risk amount = $5000
Loss incurred = 40,000 (current year)
Ownership =25%
Now
With regards to his share the loss will be 25% of $40000, that is $10000 and he will be able to deduct only $5000 because of his at-risk amount is this and as per Sec. 465.
Or
40000 * 25% = $10000
He will deduct $5000 from $10000 only
Hence $10,000 of the loss will flow-through to Darin, and he will be able to deduct $5,000.
Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $300,000. Determine Martin’s recognized gain on the transfer and the basis for his stock.
Answers
Answer:
$40,000
Explanation:
We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.
Calcuation
iability on the transfered real estate $300,000
less: adjusted basis value ($260,000)
Gain recognized $40,000
Answer:
Therefore, the gain on the transfer is $40,000
Explanation:
Calculation of Martins gain
Particulars Amount
Liability on the transferred real estate $300,000
Less: adjusted real basis value $260,000
Recognized gain $40,000
Therefore, the gain on the transfer is $40,000
The company had a net income of $248,462, and depreciation expenses were equal to $72,487. What is the firm's cash flow from financing activities?
Answers
Complete Question:
The complete question can be seen the in the attachment at the end of the solution of the question.
Answer:
Option B. -$182,057
Explanation:
The Cash flow from financing activities can be calculated by using the following formula:
Cash flow from financing activities = Changes in the equity finance
+ Changes in long term borrowings + Changes in short term borrowings
- Interest paid - Dividends paid
Here
Changes in the equity = $175,000 common stock in year 2008
- $125,000 common stock in year 2008 = $50,000
Changes in long term Borrowings = $61,290 - $78,445 = - $17,155
Changes in short term Borrowings = $16,753 - $12,004 = $4749
Interest paid is $0 because interest rate is not given hence we can't calculate it.
Dividends paid = $190,568 Opening Retained Earnings + $248,462 Net Profit for the year - $219,379 Closing Retained Earnings = $219,651
Now, by putting values in the above equations, we have:
Cash flow from financing activities = $50,000 - $17,155 + $4749 - 0 - $219,651 = -$182,057
Rank the steps of the (sandwich) ELISA procedure from first step to last step. Do not overlap any steps.
Answers
Answer and Explanation:
The ELISA refers to the enzyme-linked immunosorbent assay (ELISA) It is used to determine the existence of an antigen in a sample with the help of antibiotics
The ELISA procedure in sequence form is shown below:
1. The capture antibody is added and then clean it
2. Now adding the blocking buffer and then clean it
3. Now add the samples with controls, Hatch it and clean it
4. Add horseradish peroxidase (HRP) conjugated with the antibody, Hatch it and clean it
5. Add Thymidine monophosphate (TMP)
6. And finally, the last step is to record the results
The user of a(n) ________ conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution.
a. Avoiding
b. Accommodating
c. Negotiating
d. Collaborating
Answers
Answer:
d. Collaborating
Explanation:
The user of a collaborating conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution. It is one of the most commonly used conflict resolving styles, reason why it is also referred to as the problem solving style.
Individuals engaging in a collaborating conflict style are usually very cooperative and assertive in the process of resolving the problem.
This ultimately implies that, it usually leads to a peaceful resolution and arguably the best conflict resolving method. Also, individuals participating are availed the best opportunity.
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials $ 38 comma 000 Beginning WIP conversion costs $20,250 Costs of materials added $ 393 comma 100 Costs of conversion added $271,125 WIP beginning (50% for conversion) 20 comma 200 units Units started 120 comma 500 units Units completed and transferred out 106 comma 700 units WIP ending (60% for conversion) 34 comma 000 units What is the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)
Answers
Answer:
$2.79 per unit
Explanation:
Given that :
Beginning WIP direct materials $ 38, 000
Beginning WIP conversion costs $20,250
Costs of materials added $ 393, 100
Costs of conversion added $271,125
WIP beginning (50% for conversion) 20,200 units
Units started 120,500 units
Units completed and transferred out 106,700 units
WIP ending (60% for conversion) 34,000 units
We are to find the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)
Let first calculate the total equivalent units for direct materials which is:
= Units completed and transferred out + WIP ending
= (106,700 + 34000) units
= 140700 units
The cost per equivalent unit for direct materials = Costs of materials added (a)/ equivalent number of unit (b)
The cost per equivalent unit for direct materials = $ 393, 100/140700 unit
The cost per equivalent unit for direct materials = $2.79 per unit
Filling your individualf ederal tax returns would be best described what type of value chain?
Answers
Answer: Government to customer (G2C)
Explanation:
Filing is one of the requirements of any business person to give proper record of what they did in their business and how they delivered to the masses. This is proper for tax clearance and returns. When filing your individual tax returns the value chain is known as government to customer (G2C). This is recommended.
_____ uses an iterative process that repeats the design, development, and testing steps as needed, based on feedback from users.
Answers
Answer: Rapid Application Development (RAD)
Explanation:
Rapid Application Development (RAD) is a method of developing software that tries more to develop a working model first and then adjusts as it receives feedback from users. It essentially is evolving every time because instead of planning for what is needed ahead of time, it simply makes a product and changes it as needed to fit the actual needs of the customers.
Answer: Rapid Application Development
Explanation: got it right on edgen
Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. The working capital is:
Answers
Answer: $59000
Explanation:
The working capital is the capital that a business uses in its daily operations. It should be noted that the working capital is calculated as the difference between the current assets and the current liabilities.
From the question, we are told that
Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. Therefore, the working capital will be:
= $199,000 - $140,000
= $59,000
Matt is passionate about Hollister. It is the only place he'll buy his clothes. He hasn't shopped anywhere else in the last few years and will often write positive reviews on his blog about Hollister's merchandise. From a strictly marketing perspective, Matt's positive reviews reflect
Answers
Answer:
Bias
Explanation:
Bias is a preference towards something do to ignorance. he is being biased becuase he never goes to other stores to see if they are better
Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio? a. 1.48 b. 1.63 c. 1.34 d. 1.41 e. 1.55
Answers
Answer:
C. 1.34
Explanation:
Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio?
To calculate the ratio:
stock price at the end of last year was $33.50 divided by value per share of $25.00
= 33.50/25.0
= 1.34
On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest.
Required:
Complete the necessary journal entry
Answers
Answer:
A Journal entry for Brooks Incorporation on January 1, 2019 which is shown below
Explanation:
Solution
Given that:
JOURNAL ENTRY FOR BROOKS INCORPORATION
Date General Journal Debit Credit
Jan 01 2019 Cash 90000
Notes Payable 90000
Thus
A Journal entry was recorded for Brooks Incorporation.
Here, the cash of $90,000 was recorded at the debit side of the Journal.
While the notes payable of $90,000 was also recorded on the credit side
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.60 15,000 units Sprockets 0.20 50,000 units Additional information about the company follows:
a. Hubs require $39 in direct materials per unit, and Sprockets require $18.
b. The direct labor wage rate is $12 per hour.
c. Hubs are more complex to manufacture than Sprockets and they require special equipment.
d. The ABC system has the following activity cost pools:
Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 28,980 140 112 252 Special processing (machine-hours) $ 92,000 4,600 0 4,600 General factory (organization-sustaining) $ 89,000 NA NA NA
Required:
1. Compute the activity rate for each activity cost pool.
2. Determine the unit product cost of each product according to the ABC system. (Round intermediate calculations and final answers to 2 decimal places.)
Answers
Answer:
Fogerty Company
1. Computation of the activity rate for each activity cost pool:
a. Machine setups = Total machine setups overhead costs/total machine setups
= $28,980/252 = $115 per machine set up
b. Special processing = Total special processing overhead costs/total machine hours
= $92,000/4,600 = $20 per machine hour
c. General factory = $89,000/65,000 = $1.369 per unit produced
2. Determination of the unit product cost of each product using ABC system:
Hubs Sprockets
Total production costs $825,640 $1,101,340
Units produced 15,000 50,000
Unit product cost = $55.04 $22.03
Explanation:
a) Data and Calculations:
Activity Cost Pool Overhead Hubs Sprockets Total
(Activity Measure) Costs
Machine setups
(number of setups) $ 28,980 140 112 252
Special processing
(machine-hours) $ 92,000 4,600 0 4,600
General factory
(organization-sustaining) $ 89,000 NA NA NA
Direct labor-hours per unit 0.60 0.20
Total units produced 15,000 50,000 65,000
Direct materials required per unit $39 $18
Direct labor wage rate per hour $12 $12
b) Total direct labor-hours 9,000 10,000 19,000
c) Activity rate for each activity cost pool:
1. Machine setups = Total machine setups overhead costs/total machine setups
= $28,980/252 = $115 per machine set up
2. Special processing = Total special processing overhead costs/total machine hours
= $92,000/4,600 = $20 per machine hour
3. General factory = Total general factory overhead costs divided by total units produced
= $89,000/65,000 = $1.3692 per unit produced
d) Overhead Allocation:
Hubs Sprockets Total
Machine setups $16,100 $12,880 $28,980
Special processing 96,000 0 96,000
General factory 20,540 68,460 89,000
Total overhead costs $132,640 $81,340 $213,980
e) Total costs per product
Hubs Sprockets Total
Direct materials costs $585,000 $900,000 $1,485,000
Direct labor costs $108,000 $120,000 $228,000
Total overhead costs $132,640 $81,340 $213,980
Total production costs $825,640 $1,101,340 $1,926,980
Units produced 15,000 50,000
Unit product cost = $55.04 $22.03
f) Activity based costing system (ABC) is a costing technique that accumulates according to activity pools and allocates costs based on the activities carried out. For example, the general factory overhead costs, could be allocated based on direct labour hours, machine hours, or total units of production. It calculates the allocation rate based on the accepted activity pool.
If Push Company owned 51 percent of the outstanding common stock of Shove Company, which method would be appropriate for financial reporting purposes?
Answers
Answer:
Consolidation
Explanation:
Holding method is required for the parent company for financial reporting if the parent company owns 51 percent of more outstanding common stock in the subsidiary.
Here consolidate refers to the combining of total assets and liabilities of two or more entities into one so that it could be maintained as a one firm
Therefore for financial reporting consolidation is appropriate
What is the nominal interest rate (k) of a 5-year U.S. Treasury bond with a real risk-free rate of interest of 1% and inflation expected to be at 3.5% per year
Answers
Answer:
The nominal interest rate is 4.50%
Explanation:
Nominal interest=real interest rate+inflation rate
The real interest rate is the return earned by an investor without considering the inflation rate in the economy which is 1%
inflation rate is the movement in prices of goods and services in the economy i.e 3.5%
nominal interest rate=1%+3.5%
nominal interest rate=4.5%
A corporation produces a single product and has the following cost structure
Number of units produced each year 7000
Variable costs per unit
Direct materials 51
Direct labor 12
Variable manufacturing overhead 2
Variable selling and administrative expense 5
Fixed costs per year
Fixed manufacturing overhead.. 441000
Fixed selling expense 112000
The absorption costing unit product cost is:______.
A) $149 per unit
B) $65 per unit
C) $63 per unit
D) $128 per unit
Answers
Answer:
D) $128 per unit
Explanation:
The computation of the unit product cost using the absorption costing is shown below:
= Direct materials per unit + direct labor per unit + Variable manufacturing overhead per unit + fixed manufacturing overhead per unit
= $51 + $12 + $2 + ($441,000 ÷ 7,000 units)
= $128
We simply added the direct material, direct labor, variable manufacturing overhead per unit, and the fixed manufacturing overhead per unit
Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.
a) true
b) false
Answers
Answer:
a) true
Explanation:
When we are talking about building brand equity, we are talking about increasing our customers' perception and value of our brand or company's name. Building brand equity emphasizes the brand itself over any specific product or service that our company offers. E.g. Rolls Royce is the most luxurious car manufacturer in the world, and they built brand equity upon luxury in all its vehicles, not one specific car.
In this case, Travelwell is emphasizing a characteristic that should apply to all its product line, not just one specific type of luggage.
What is the largest single influence on the movement toward uniformity in the global youth market?
A. mass media
B. education
C. work
D. travel
E. religion
Answers
Answer:
The correct answer is the option A: Mass media.
Explanation:
To begin with, nowadays the mass media has increased in the world in a huge and dramatically number. It is possible now, for everyone to start a production of content that will be in the social medias and will affect definitily to everyone involved in the content and furthermore, the youth is now more conected than ever and the use of those medias are more common and easy for them so they see each other very affected by the use of it and all of the content that is in those medias. That is why that the largerest single influence on the movement toward uniformity in the global youth market is mass media.
To develop compensation systems for workers, managers should: use all the information available about the workers regardless of the cost of obtaining the information use all the information available only if managers have a concern about the performance of workers. not use any information available if workers are paid efficiency wages. None of the above
Answers
Answer:
The correct answer is A
Explanation:
Performance and compensation go hand in hand. To know design a compensation system that takes into account all the information about one's workers is to create suitable compensation for that company.
For instance, the manager should know whether it is non-financial rewards that its management want. Sometimes, staff don't care about official cars, and fantastic health insurances. They just want a great take-home package.
The manager must know this information at all costs. To ignore is to risk the loss of staff, valuable time and even position in the industry.
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Intricate Wiring Corp., based in Ohio, creates a brand new high-tech product. The demand for the product in the United States is high but very low or non-existent elsewhere. The company decides not to locate manufacturing facilities elsewhere and will simply meet the small foreign demand via exports. The theory that best explains the company's policy is
Answers
Answer:a. product life cycle theory.
Explanation:
The Product Life Cycle Theory was created to explain the International trade pattern of a new product. The theory attempts to show that when a product is first invented, its demand and production inputs such as capital and labor, come from the area it was invented in. As the product starts getting more recognised and it's demand increases elsewhere, it will start to export and then continue until it starts manufacturing in other areas to feed the demand of those areas as well.
Intricate Wiring Corp's new high-tech product is following this theory because it has just started out and so its demand is based in its country of origin being the United States. For as long as this is the case, the company should focus on producing in the United States until demand picks up substantially enough to produce elsewhere.