Assume the company is considering investing in a new machine that will increase its fixed costs by $42,500 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine.
Answer:
The company should purchase the machine.
Explanation:
Note: The complete question is attached below
Forecasted contribution margin income statement
For the Year Ended December 31
Particulars Amount$
Sales 2,440,000
Variable cost(10,000*185(195-10)) 1,850,000
Contribution margin 590,000
Fixed cost (327,600+42,500) 370,100
Income $219,900
Because the income increase by $57,500 due to the pruchase, the company should purchase the machine
What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?
Answer:
the equity beta of the firm is 1.134
Explanation:
The computation of the equity beta is shown below:
Equity beta is
= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]
= 0.9 × [1 + (1 - 0.35) × 0.4]
= 0 9 × 1.26
= 1.134
Hence, the equity beta of the firm is 1.134
We simply applied the above formula so that the correct value could come
And, the same is to be considered
A snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of their consumers notice the change. A clever intern points out that this is an example of:
Answer:
difference threshold
Explanation:
Difference threshold is use by businesses or effectively reduce cost without affecting their profit margin .
It is the minimum amount of change that is required to make consumers of a product to notice the change 50% of the time.
In the given scenario the snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of their consumers notice the change.
If the current price of a stock is P=40, its β=1.25, and the expected rate of return of the market portfolio is r¯M=0.13, what does CAPM predict for the price of the stock in a year? Use rf=0.05 as the risk-free rate.
Answer:
im sorry
Explanation:
Jordan has the following assets and liabilities:_______. Two cars $10,000 House $200,000 Mortgage $100,000 Cash $1,000 Car loans $3,000 Checking account balance $2,000 Credit card balance $1,000 What is Jordan’s wealth?a. $107,000
b. $213,000
c. $109,000
d. $111,000
Answer:
c $109,000
Explanation:
A person's wealth is calculated by deducting their liabilities from their assets. The value left after the deduction is the person's wealth. In the above case, Jordan's wealth is calculated as;
= Assets [ Two cars + House + Cash balance + Checking account balance ] - Liabilities[ Mortgage - Car loans - Credit card balance ]
= [ $10,000 + $200,000 + $1,000 + $2,000 ] - [$100,000 + $3,000 + $1,000]
= $213,000 - $104,000
= $109,000
Therefore, Jordan's wealth is $109,000
scientific management.
management by objectives (MBO).
the program evaluation and review technique (PERT).
programmed management.
Answer:
im bored soo hi
Explanation:
With a planned volume of 15,000 units, the master budget includes variable costs of $450,000 and fixed costs of $350,000. If the actual volume is 12,000 units, the total costs under flexible budget should be:__________a. $490,000.b. $560,000.c. $650,000.d. $710,000.
Answer:
Total cost= $710,000
Explanation:
Giving the following information:
15,00 units:
Fixed costs= $350,000
Total variable cost= $450,000
First, we need to calculate the unitary variable cost:
Unitary variable cost= 450,000 / 15,000
Unitary variable cost= $30
Now, the total cost for 12,000 units:
Total cost= 350,000 + 30*12,000
Total cost= $710,000
You want to invest $50,000 in a portfolio with a beta of no more than 1.4 and an expected return of 12.4%. Bay Corp. has a beta of 1.2 and an expected return of 11.2%, and City Inc. has a beta of 1.8 and an expected return of 14.8%. The risk-free rate is 4%. You can invest in Bay Corp. and City Inc. How much will you invest in each?
Answer:
Assume the weight to be invested in Bay Corp is x. That means (1 - x) will be the weight for City Inc. The expression for the expected return will be;
(x * 11.2%) + ( (1 - x) * 14.8%) = 12.4%
0.112x + 0.148 - 0.148x = 0.124
-0.036x = -0.024
x = 0.67
Portfolio beta is;
= 0.67 * 1.2 + ( 1 - 0.67) * 1.8
= 1.398 so beta condition is satisfied.
Amount in Bay Corp.;
= 0.67 * 50,000
= $33,500
Amount in City Inc.;
= 50,000 - 33,500
= $16,500
The amounts that will be invested in Bay Corp. and City Inc. will be $33500 and $16500.
Let the weight invested in Bay Corp be x.Therefore the weight invested in City Inc. will be 1 - x.
Therefore, the equation to solve the question will be:
( x × 11.2%) + [(1 - x) × 14.8%)] = 12.4%
Open the brackets
0.112x + 0.148 - 0.148x = 0.124
Collect like terms
-0.036x = -0.024
x = -0.024 / 0.036
x = 0.67
The portfolio beta will be:
= 0.67 * 1.2 + ( 1 - 0.67) × 1.8
= 1.398 .
Therefore, the amount invested in Bay Corp will be:
= 0.67 × $50,000
= $33,500
Therefore, the amount in City Inc. will be:
= $50,000 - $33,500
= $16,500
Read related link on:
https://brainly.com/question/18353908
Keynes revolutionized economic theory by changing the explanation for what causes economic growth from aggregate _______ to aggregate _______.
a. demand; supply
b. supply; demand
c. cost; inflation
d. GDP; income
Answer:
b. supply; demand
Explanation:
Before Keynes, classical economists thought that aggregate supply was more important than aggregate demand in determining the overall economic level of a country. This was mainly because of the belief in say's law: the law stated that every offer creates its own deamand.
Keynes changed economics because he stated that demand and supply do not always reach equilibrium, and that demand is often insufficient, and it is the government job to stimulate demand through expansionary monetary and fiscal policy, like lowering interest rates and cutting taxes.
Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B 0 –$ 64,000 –$ 109,000 1 26,500 28,500 2 34,400 33,500 3 28,500 25,500 4 14,500 231,000 What is the payback period for each project?
Answer:
Stenson, Inc.
The payback period for each project is:
Project A = 3 years
Project B = 4 years
Explanation:
a) Data and Calculations:
Year Cash Flow A Cash Flow B
0 –$ 64,000 –$ 109,000
1 26,500 28,500
2 34,400 33,500
3 28,500 25,500
4 14,500 231,000
Total inflow $103,900 $318,500
b) The payback period is the time when the cash outflow is recouped. For project A, the payback period occurs in year 3. For project B, the payback period occurs in year 4. Based on the company's cutoff of three years, Project B may not be accepted even with its large cash inflow in year 4. Therefore, the best decision will be to discount the cash inflows with a suitable rate of interest. This will help Stenson, Inc. to decide between accepting Project A or Project B.
Fiat money:________.a) has no intrinsic value. b) is backed by gold. c) is a medium of exchange but not a unit of account. d) is any close substitute for curren
Answer: a) has no intrinsic value
Explanation:
Fiat currency is money that is used in a country and is regulated by the central bank of that country. Fiat money has no commodity backing it such as gold or silver and has no intrinsic value of its own.
It is instead backed by the full faith and credit of the government of the country that produces it. For instance, the US dollar is backed by the full faith and credit of the US government.
A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Using a 360-day year, what is the amount of accrued interest on December 31, 2015?
Answer:
$267
Explanation:
Calculation for the amount of accrued interest on December 31, 2015
Accrued interest=20,000 x 8% x 60 days/360 days
Accrued interest= $267
Note that November 1, 2015 to December 31, 2015 will gives us 60 days while 360 days represent the number of days in a year
Therefore the amount of accrued interest on December 31, 2015 will be $267
A US Multi National Corporation has a contract for a relatively predictable long-term inflow of Japanese yen. The firm decides to hedge the yen exposure by finding a supplier in Japan and paying for these imports in yen. This hedging strategy is known as ________.
Answer: a natural hedge
Explanation:
Natural hedge is simply a strategy that is used by a company in order to reduce risk and this is done through the investment in the assets that their performance is not positively correlated.
Such companies typically makes revenue in the currency of another country. Since the firm decides to hedge the yen exposure by finding a supplier in Japan and paying for these imports in yen, this hedging strategy is known as natural hedge.
A stock has the following returns over three consecutive years: 85%, 58%, and 128%. What is the arithmetic average?
Answer:
The stock's arithmetic average is:
90.33%.
Explanation:
a) Data and Calculations:
Returns over three consecutive years:
Year 1 = 85%
Year 2 = 58%
Year 3 = 128%
Total returns = 271%
Average = Total returns divided by number of years
= 271/3
= 90.333
=90.33%
b) The arithmetic average is the total returns divided by the number of years involved. This implies that we find the average or the mean by adding up some pieces of data together and dividing by the number of the pieces of data.
(2-3 statements answer only) I'll give brainliesr.
•What market/s do we consider when it comes to raw materials?
Answer:
factor market
Explanation
Lemme know if I'm wrong :/
The four major expenditure categories of GDP are: Group of answer choices consumption, government purchases, taxes, and investment. consumption, investment, taxes, and net exports. consumption, investment, government purchases, and net exports. consumption, imports, exports, and government purchases. consumption, investment, government purchases, and stocks.
Answer:
consumption, investment, government purchases, and net exports.
Explanation:
The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being.
Basically, the four major expenditure categories of GDP are consumption, investment, government purchases, and net exports.
Charging off the cost of a wastebasket with an estimated useful life of 10 years as an expense of the period when purchased is an example of the application of the
Answer:
E. materiality concept
Explanation:
The materiality concept refers to a concept in which it impacts the decisions of the user if there is any small impact. In other words, any small impact could change the user decisions with respect to the financial statement i.e. relevant and useful
Therefore according to the given situation, the Option E is correct
And all the other options are incorrect
If you decide to take a break and go for a hike in order to focus less consciously on the creative process, which stage is the creative process are you experiencing?
Answer: Incubation
Explanation: In the incubation stage the person moves away from the problem and gives space to the mind to search for a solution. An example is going for a walk to relax your mind a bit and ideas flow better.
The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?a) $60,000.b) $5,000.c) $100,000.d) $55,000.
Answer:
c) $100,000
Explanation:
Number of shares originally issued 60,000
Less: Number of shares reacquired (10,000)
Outstanding number of shares 50,000
Dividends per share declared $2
Total dividends declares $100,000 (50,000 shares * $2)
Gabriella, a single taxpayer, has wage income of $160,000. In addition, she has $7,000 in long-term capital losses, $1,000 in long-term capital gains, $3,000 in short-term capital gains, and $1,000 in short-term losses. What is Gabriella's AGI for 2017?a. $157,000.
b. $160,000.
c. $156,000.
d. $161,000.
Answer:
c. $156,000
Explanation:
Adjusted gross income = Wage income + Long-term capital gains + Short-term capital gains - Long-term capital losses - Short-term losses
Adjusted gross income = $160,000 + $1,000 + $3,000 - $7,000 - $1,000
Adjusted gross income = $156,000
Thus, Gabriella's AGI for 2017 is $156,000
Knowledge Check 01 An unfavorable variance of $5,000 in cost of goods sold is determined by comparing the actual results (10,000 units) and the flexible budget (10,000 units). What type of variance is described?a. Activity variance b. Spending variance c. Revenue variance
Answer:
The correct option is b. Spending variance.
Explanation:
Spending variance can be described as the difference between the actual cost and budgeted cost at the actual activity level.
Since cost of goods sold (COGS) is the direct costs incurred to produce the goods that is sold by a firm, it therefore implies that the amount of variance in cost of goods sold can be determined by comparing the actual results and the flexible budget at the actual activity level or actual units.
Based on the explanation above, the correct option is b. Spending variance. That is, Spending variance is an unfavorable variance of $5,000 in cost of goods sold is determined by comparing the actual results (10,000 units) and the flexible budget (10,000 units).
Investing activities do not include the:
a.Purchase of plant assets.
b.Loaning of money in exchange for notes receivable.
c.Issuance of common stock.
d.Sale of plant assets.
e.Sale of short-term investments other than cash equivalents.
Answer:
c.Issuance of common stock.
Explanation:
Investing activities lead to an increase in business cash flows. Investing involves spending money with the expectation of making higher returns.
Some investing activities include
1. Purchase or acquisition of assets to be used in the production process.
2. Sale of business assets
3. Acquisition or sale of other business
Issuing of common stocks is not considered an investment option. Common shares are issued when companies need to raise additional capital. Issuance of common shares is a financing activity.
Colleges often rely heavily on raising money for an "annual fund" to support operations. Alumni are typically solicited for donations to the annual fund. Studies suggest that the graduate’s annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, positive, linear relationship between these variables. In the studies described:
Answer: size of alum's donation to the annual fund is the response variable
Explanation:
Considering the annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, then the study indicated that the size of alum's donation to the annual fund is the response variable
please help its due in 2 hours time will give all my points
"Explain how the development of money over time has helped to improve the way in which monetary transactions are conducted" 6 MARK QUESTION
Explanation:
First money ever made was just coins and it differed in worth compared to today. In the present, money is not only a physical object but it also an imaginary value on our bank accounts and cards. Having in mind that monetary transactions are all-in-all deposits, withdrawals and exchanges, its way easier to conduct those with not having to give and recieve money in physical form, but being, able to do it all while just transfering the numbers from one to another account. Bankers have less responsibility due to not having to stock all the money in safes and secure boxes, but just checking if all the numbers are adding up. So, shall we say, the development of money over time has improved the way in which monetary transactions are conducted because this way, it's safer, faster and much more trustworthy.
Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR?
WACC: 12.25%
Cash flows -
Year 0: - $850
Year 1: $300
Year 2: $320
Year 3: $340
Year 4: $360
Answer:
MIRR = 17%
Explanation:
The computation of the MIRR of a project is shown below:
Year Cash flows ( in $)
0 -850
1 300
2 320
3 340
4 360
WACC 12.25%
MIRR 17%
We simply applied the MIRR over the excel
We simply applied the attached formula so that the correct percentage could come
And, the same is to be considered
Assume that the risk-free rate is 4% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 1.9
Answer:
24.9%
Explanation:
Risk free rate is 4%
Required return on the market is 11%
Beta is 1.9
Therefore the required rate of return on a stock can be calculated as follows
= 4% + 1.9×11
= 4% + 20.9
= 24.9%
Hence the required rate of return on a stick is 24.9%
Trevor Ang holds a $400,000 portfolio consisting of the following stocks:
Stock Investment Beta
A $100,000 1.40
B $70,000 1.60
C $30,000 1.10
D $200,000 1.00
Total $400,000
What is the portfolio's beta?
Answer:
Portfolio beta = 1.2125
Explanation:
The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,
Portfolio Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
w is the weight of each stock
Portfolio Beta = 100000/400000 * 1.4 + 70000/400000 * 1.6 +
30000/400000 * 1.1 + 200000/400000 * 1
Portfolio beta = 1.2125
Which phrase best completes the diagram? Business banks Retail banks ? Accept deposits to checking accounts Make home mortgage loans A. Provide credit and debit cards O B. Offer certificate of deposit investments O C. Require car titles as collateral O D. Provide cash management services
The phase that best explains the diagram is that it best provides cash management services. Thus option D is correct.
what is a management service?The management service is a practice of outsourcing responsibilities for maintenance and the needs for the arrangement and processes and functions it involves the reduction in budgetary expenditure. The diagram shows us the business and retail bank that accepts deposits and makes home mortgages.
Find out more information about the diagram.
brainly.com/question/12903285
Answer: D
Explanation: I just took the test
Select the correct answer.
Restaurant supply companies handle deliveries of foods and goods to restaurants.
ОА.
True
OB.
False
Answer:
True
Explanation:
I took the test and this is the right answer. :-)
When evaluating an investment, the MNC should consider the ____________ cash flows generated by the project.
a. total
b. variable
c. incremental
d. fixed
Answer: c. Incremental
Explanation:
Simply put incremental cashflow is the additional cashflow that accrues to a company when it takes on a new project. The Multinational company should therefore consider this when they are accepting a project.
If the new project has a positive incremental cashflow, it will add to the cashflows of the company and so should be initiated as opposed to those with negative incremental cashflows.