Answer: C. the expected sales is exactly equal to expected demand;
Explanation:
The newsvendor model refers to the mathematical model that is used in the determination of optimal inventory levels. This model is characterized by uncertain demand and fixed prices for a good that's perishable e.g newspapers.
In this model, there can be a high profit only in a scenario whereby the demand and the supply is met. Therefore, if the profit maximizing quantity were ordered, the expected sales is exactly equal to expected demand.
Megan Corp. recognizes revenue over time to account for long-term contracts. At the date the contract is signed, the price is $600,000 and the expected costs to complete the contract are $400,000. The following information is available:
Year 1 Year 2 Year 3 Costs incurred to date $200,000 $350,000 $500,000 Estimated costs to complete 200,000 150,000 0 Progress billings 200,000 200,000 200.000
What is the amount of gross profit or loss that is recognized in year 2?
a. $30,000 loss
b. $40,000 gross profit
c. $150,000 loss
d. $200,000 gross profit
Answer:
a. $30,000 loss
Explanation:
Calculation to determine What is the amount of gross profit or loss that is recognized in year 2
First step is to calculate the Year 1 Cost to cost ratio using this formula
Year 1 Cost to cost ratio = 200,000 / ( Costs incurred + Cost to complete)
Let plug in the formula
Year 1 Cost to cost ratio= 200,000 / (200,000 + 200,000)
Year 1 Cost to cost ratio= 50%
Second step is to calculate the Gross profit or loss using this formula
Gross profit/Loss = 50% * ( Price - estimated cost to complete)
Let plug in the formula
Gross profit/Loss= 50% ( 600,000 - 400,000)
Gross profit/Loss= $100,000
Third step is to calculate the Year 2 Cost to cost ratio
Using this formula
Year 2 Cost to cost ratio = 350,000 / ( Costs incurred + Cost to complete)
Let plug in the formula
Year 2 Cost to cost ratio = 350,000 / (350,000 + 150,000)
Year 2 Cost to cost ratio = 350,000 / 500,000
Year 2 Cost to cost ratio = 70%
Now let calculate the gross profit or loss using this formula
Gross profit = 70% * ( Price - estimated cost to complete) - Previous Gross
Let plug in the formula
Gross profit= 70% ( 500,000 - 400,000) - 100,000
Gross profit= -$30,000
Gross Loss of $30,000 in Year 2
Ricky is not in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods.
Answer:
The options are
A) as small as possible; all
B) equal; all
C) equal; normal
D) maximized; all
The answer is B) equal; all
Ricky not being in a consumer equilibrium and he considering the prices prices of goods means he allocated all his income in such a way that entails his marginal utility per dollar spent is equal for all goods.
This is to ensure that he cuts cost and maximizes his spending power.
The Buckle, Inc., operates 420 stores in 41 states, selling brand name apparel like Lucky jeans and Fossil belts and watches. Some of the items included in its 2010 statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement or use (NA) if the item does not appear on the statement.
1. Purchase of investments.
2. Proceeds from issuance of stock.
3. Purchase of property and equipment.
4. Depreciation.
5. Accounts payable (decrease).
6. Inventories (increase).
Answer and Explanation:
The classification is as follows;
1. investing activities (I) - cash outflow
2. financing activities (F) section - cash inflow
3. investing activities (I) - cash outflow
4. operating activities (O) - cash inflow
5. operating activities (O) - cash outflow
6. operating activities (O) - cash outflow
In this way it should be distributed
Hence, the above should be the answer and the same should be relevant
The Gardner Company expects sales for October of $247,000. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $67,500. What is the amount of cash expected to be collected in October
Answer: $74100
Explanation:
Based on the information given, the amount of cash expected to be collected in October will be calculated thus:
October, credit sales will be:
= 60% x $247000
= $148200
Since the amount that'll be collected in October will be 50% of the credit sales. This will be:
= 50% × $148200
= $74100
Ai biết câu trả lời thì giúp mình với
Respass Corporation has provided the following data concerning an investment project that it is considering:
Initial investment $160,000
Annual cash flow $54,000 per year
Salvage value at the end of the project $11,000
Expected life of the project 4 years
Discount rate 15%
The net present value of the project is closest to:____.
A) $67,000.
B) $160,516.
C) $516.
D) $(5,776).
Answer:
45,811.70Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-160,000
Cash flow in year 1 - 3 = $54,000
Cash flow in year 4 = 11,000
I = 15
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
roles of competition policy authorities in south Africa
Answer:
I hope you understand please follow me
Which one of the following items is not generally used in preparing a statement of cash flows? Group of answer choices Adjusted trial balance Comparative balance sheets Current income statement Additional information
Answer:
Adjusted trial balance
Explanation:
In financial accounting, statement of cash flow can be regarded as a financial statement which give details of how changes that occur in balance sheet accounts as well as income have effect on cash as well as cash equivalents, it also helps in breaking down of analysis to operating as well as investing and other financing activities.
It should be noted that the following items are generally used in preparing a statement of cash flows;
✓Comparative balance sheets
✓Current income statement
✓Additional information
ou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is - 3,
while group 2’s is - 5. Your marginal cost of producing the product is $40.
a. Determine your optimal markups and prices under third-degree price
discrimination.
b. Identify the conditions under which third-degree price discrimination
enhances profits
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Are executive pay levels unreasonable? Why or why not
Answer:
In my opinion, some corporate salaries for high-ranking executives are excessively high for the functions that these people have in these companies and the impact that their work has on their economy and on the well-being of society as a whole.
It is that, although we live in a capitalist, free and democratic society in which everyone has the right to earn the sum of money that their employer is willing to pay, the truth is that in certain cases (or in most cases ) Said salaries are not justified based on the contributions that said executives make in their day-to-day work.
Line Corporation's balance sheet showed the following amounts for their liability and stockholders' equity accounts: Current Liabilities, $5,000; Bonds Payable, $1,500; Lease Obligations, $2,000; and Deferred Income Taxes, $300. Total stockholders' equity was $6,000. The debt-to-equity ratio is
Answer:
1.47
Explanation:
Debt to equity ratio = Debt / Equity
Debt to equity ratio = (Current liabilities + Bonds payable + Lease obligations + Deferred income taxes) / Total stockholder's equity
Debt to equity ratio = ($5,000 + $1,500 + $2,000 + $300) / $6,000
Debt to equity ratio = $8,800 / $6,000
Debt to equity ratio = 1.47
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,000 of direct materials and used $3,500 of direct labor. The job was not finished by the end of September, but needed an additional $2,500 of direct materials in October and additional direct labor of $6,000 to finish the job. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October
Answer:
the amount of job costs added to Work in Process Inventory during October is $20,500
Explanation:
The computation of the amount of job costs added to Work in Process Inventory during October is shown below;
= Direct material + direct labor + overhead applied
= $2,500 + $6,000 + 200% of $6,000
= $2,500 + $6,000 + $12,000
= $20,500
Hence, the amount of job costs added to Work in Process Inventory during October is $20,500
The table shows Robinson Crusoe's production possibilities.
If Crusoe increases production of berries from 84.0 pounds to 104.0 pounds and production is efficient, his opportunity cost of producing 1 pound of berries is 1.3 pound of fish.
Crusoe's opportunity cost of producing an extra pound of berries____as he produces more berries
A. increases.
B. decreases.
C. sometimes increases and sometimes decreases.
D. does not change.
Possibility Berries (pounds) Fish (pounds)
A 0 144.0
B 16.0 140.0
C 30.0 132.0
D 42.0 120.0
E 52.0 104.0
F 84.0 84.0
G 60.0 60.0
H 66.0 32.0
I 70.0 0
Answer:
increases
Explanation:
A company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by:
Answer:
C. II and III
Explanation:
These are the options for the question
I Filing
II Coordination
III Qualification
A. I only
B. II only
C. II and III
D. I, II, III
The Securities and Exchange Commission (SEC) can be regarded as an oversight agency of U.S. government, which responsible for regulation of securities markets as well as protection of investors. civil actions can be taken by SEC against lawbreakers, they aworks hand in hand along with Justice Department on criminal cases. For a company to register under them , there must be Coordination and Qualification. It should be noted that company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by Coordination and Qualification
Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results. Budgeted Actual Sales $ 300 per unit $ 435,000 Variable expenses $ 120 per unit $ 172,000 Fixed expenses (total) $ 125,000 $ 122,000 Units produced and sold 1,200 1,400 List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
LEWIS Co.
Flexible budget performance report
For month ended May 31
Flexible budget Actual results Variances Result
Sales $420,000 $435,000 $15,000 Fav
(1400*$300)
Variable expense $168,000 $172,000 $4,000 Unfav
(1400*$120)
Contr. margin $252,000 $263,000 $11,000 Fav
Fixed cost $125,000 $122,000 $3,000 Fav
Net Income $127,000 $141,000 $14,000 Fav
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Vincenzo Martin and Sasha Boudrakis have started a new firm, The Fan Base. Vincenzo is a well-known marketing guru who advises major league sports franchises on how to maximize the revenue from their teams' brands and logos. Sasha, meanwhile, is mostly silent in the operation. He has invested $2 million to get The Fan Base off the ground, and in return he receives 25% of the firm's annual profits. The Fan Base is organized as a Group of answer choices corporation. limited liability company (LLC). sole proprietorship. general partnership. limited partnership.
Answer: limited partnership
Explanation:
With the description given in the question, the The Fan Base is organized as a limited partnership. A limited partnership has a general partner, whom has an unlimited liability and a limited partner.
A limited partnership is when two or more partners go into business together, and in this case, the limited partners will be liable only up to the amount that they invested in the business.
In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information: ($ in millions) Purchase of treasury bills (considered a cash equivalent) 7.1 Sale of preferred stock 151.1 Gain on sale of land 5.1 Proceeds from sale of land 26.1 Issuance of bonds payable for cash 141.1 Purchase of equipment for cash 31.1 Purchase of GE stock 36.1 Declaration of cash dividends 135.1 Payment of cash dividends declared in previous year 131.1 Purchase of treasury stock 121.1 Payment for the early extinguishment of long-term notes (carrying (book) value: $100 million) 111.1
Required:
1. Prepare the investing activities section of D-Rose's statement of cash flows.
2. Prepare the financing activities section of D-Rose's statement of cash flows. (For all requirements, list any cash outflow with a minus sign. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)
Answer:
D-Rose Distributors
1. Investing Activities Section of D-Rose's Statement of Cash Flows:
$ in millions)
Purchase of treasury bills (considered a cash equivalent) -7.1
Proceeds from sale of land 26.1
Purchase of equipment for cash -31.1
Purchase of GE stock -36.1
Net cash flows from investing activities -$48.2
2. Financing Activities Section of D-Rose's Statement of Cash Flows:
$ in millions)
Sale of preferred stock 151.1
Issuance of bonds payable for cash 141.1
Payment of cash dividends declared in previous year -131.1
Purchase of treasury stock -121.1
Payment for the early extinguishment of long-term
notes (carrying (book) value: $100 million) -111.1
Net cash flows from financing activities -$71.1
Explanation:
a) Data and Calculations:
($ in millions)
Purchase of treasury bills (considered a cash equivalent) 7.1
Sale of preferred stock 151.1
Gain on sale of land 5.1
Proceeds from sale of land 26.1
Issuance of bonds payable for cash 141.1
Purchase of equipment for cash 31.1
Purchase of GE stock 36.1
Declaration of cash dividends 135.1
Payment of cash dividends declared in previous year 131.1
Purchase of treasury stock 121.1
Payment for the early extinguishment of long-term notes (carrying (book) value: $100 million) 111.1
b) In preparing D-Rose's Statement of Cash Flows, the following two items are non-cash items:
i) The gain on sale of land, which will be deducted from the Net Income when the indirect method is used for preparing the operating activities section.
ii) The declaration of cash dividends does not involve any cash flow. It is the payment of dividends that involves a financing activity.
Which of the following is a key consideration in selecting an allocation base?
a. The allocation base should have an indirect association with the cost objective.
b. The allocation base should be difficult to measure.
c. There should be logical association between the allocation base and the incidence of costs.
d. The allocation base should be out of the control of management.
Answer:
C. There should be logical association between the allocation base and the incidence of costs.
Explanation:
We define the allocation base as that quantity through which the overhead cost and be allocated to. This base is usually in the form of a quantity. It could be the kilowatts used in hours, or the machine hours used.
It should be able to show to a logical extent how the cost object used the resources to which it is assigned
The spot and 30-day forward rates ($/SF) for the Swiss franc are $.3075 (1.0695) and $.3120(1.0885), respectively. The franc is said to be selling at a forward: a. Premium of 16.88%. b. Premium of 17.56%. c. Discount of 6.39%. d. Discount of 15.10%. e. Discount of 17.31
Answer:
b. Premium of 17.56%.
Explanation:
The computation is shown below:
Given that
Spot price = $0.3075
Forward rate = $0.3120
Now
Forward premium or discount is
= [(Forward rate - Spot rate) ÷ Spot rate] × (12 ÷ months) × 100
= [0.3120-0.3075) ÷ 0.3075 ] × (12 ÷ 1) × 100
= (.0045 ÷ 0.3075) × 12 ÷ 1 × 100
= 17.556 %
= 17.56 %
Hence, the Option B Premium of 17.56% is correct
Ripka Company has 20,000 units in inventory that had a production cost of $4 per unit. These units cannot be sold through normal channels due to a significant technology change. These units could be reworked at a total cost of $30,000 and sold for $35,000. Another alternative is to sell the units to a junk dealer for $10,500. The relevant cost for Ripka to consider in making its decision is Select one: a. $110,000 for reworking the units b. $30,000 for reworking the units c. $80,000 of original product costs d. $35,000 for selling the units to the junk dealer
Answer:
Ripka Company
The relevant cost for Ripka to consider in making its decision is:
b. $30,000 for reworking the units
Explanation:
a) Data and Calculations:
Inventory = 20,000 units
Production cost already incurred = $4 per unit
Total production cost = $80,000 (20,000 * $4)
Total Cost of Reworking the units = $30,000
Sales revenue after rework = $35,000
Alternative sales revenue without reworking = $10,500
b) Relevant cost is the avoidable cost. The cost that can be avoided in this instance is the cost of reworking the units, amounting to $30,000.
Dawn's bridal boutique is having a sale on evening dresses. The increase in consumer surplus comes from the benefit of the lower prices to a. both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices. b. only new customers who enter the market because of the lower prices. c. only existing customers who now get lower prices on the gowns they were already planning to purchase. d. Consumer surplus does not increase; it decreases.
Answer:
The answer is "Option a".
Explanation:
Dawn's bridal shop does have an evening gowns sale. The rise in consumer surplus is attributable to the fact that both existing customers now also have cheaper prices on the robes which previously planned to buy, as well as the new customers who enter the market due to lower prices even as advantages are identical but the prices are cheaper on the same robe. The current product and existing consumers are able t benefit from market sales, thereby increasing the excess of the new and current consumers.
U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 98,000 19,980 Labor (hours) 20,600 15,600 Raw materials (currency) $ 19,950 19,750 (FC) Capital equipment (hours) 59,250 5,600 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) c. Calculate raw material productivity figures (units/$ where $1
Answer:
a. Productivity = Sales /Labour Hour
U.S
Productivity = 98000 units/20600 hours
Productivity = 4.76
LDC
Productivity = 19980 units/15600 hours
Productivity = 1.28
Capital Productivity = Sales / Capital Equipment (Hours)
U.S
Capital Productivity = 98000 units/59250 hours
Capital Productivity = 1.65
LDC
Capital Productivity = 19980 units/5600 hours
Capital Productivity = 3.57
b. Multi-factor Productivity = Total Output (Sales) / (Labour Hours + Capital Equipment Hours)
U.S
Multi-factor Productivity = 98000 units/(20600+59250)
Multi-factor Productivity = 98000 units / 79850 hours
Multi-factor Productivity = 1.23
LDC
Multi-factor Productivity = 19980 units / (15600+5600)
Multi-factor Productivity = 19980 units / 21200 hours
Multi-factor Productivity = 0.94
c. Raw Material Productivity = Sales / Raw Materials Currency
U.S
Raw Material Productivity = 98000 units/$19950
Raw Material Productivity = 4.91
LDC
Raw Material Productivity = 19980 units / (19750 /10)
Raw Material Productivity = 19980 units / $1975
Raw Material Productivity = 10.12
What is the present value of a perpetuity of $20,000 per month, if the first cash flow will be received exactly nine months from now, and the stated rate is 12% APR compounded monthly
Answer:
$1,828,679.65
Explanation:
The computation of the present value of the perpetuity is shown below;
The Present value of the perpetuity is
But before that as on the start of the perpetuity is determined using the formula,
= Perpetuity Amount ÷ Monthly rate
= $20,000 ÷ 1%
= $2,000,000
Now
Present value today is
= Present value of perpetuity as on the start of the perpetuity ÷ (1 + Monthly rate)^Months
= $2,000,000 ÷ (1 + 1%)^9
= $2,000,000 ÷ 1.093685273
= $1,828,679.65
Use the cost information below for Ruiz Inc. to determine the total manufacturing costs incurred during the year: Work in Process, January 1 $ 52,400 Work in Process, December 31 38,200 Direct materials used $ 13,700 Total factory overhead 6,700 Direct labor used 27,700 Multiple Choice
Answer:
$48,100
Explanation:
Computation of total manufacturing cost incurred during the year is seen below;
Direct materials used
$13,700
Direct labor used
$27,700
Total factory overhead
$6,700
Total manufacturing cost incurred
$48,100
Therefore, the total manufacturing cost incurred during the year is $48,100
When a perfectly competitive firm decides to shut down, Group of answer choices marginal cost is above average variable cost.
Answer:
price is below average variable cost
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
firms should shutdown when price is less than average variable cost and exit when price is less than average total cost
The Tuck Shop began the current month with inventory costing $10,000, then purchased inventory at a cost of $35,000. The perpetual inventory system indicates that inventory costing $30,000 was sold during the month for $40,000. If an inventory count shows that inventory costing $14,500 is actually on hand at month-end, what amount of shrinkage occurred during the month
Answer:
$500 shrinkage
Explanation:
Calculation to determine the amount of shrinkage occurred during the month
Using this formula
Shrinkage=Ending inventory-Actual count
Let plug in the formula
Ending inventory=$10,000 + $35,000 - $30,000 Ending inventory= $15,000
Shrinkage=$15,000 - $14,500
Shrinkage= $500
Therefore the amount of shrinkage occurred during the month is $500
What is the reason AD is downward sloping ? what causes AD to shift? Define OKun's law
subject Macroeconomics, please please help...
Answer:
Increased spending power.
Explanation:
At a lower price level, consumers are likely to have higher disposable income and therefore spend more.
behavior of viettel's customer
Answer:
Some behaviors of viettel's customer are:-
Complex buying behavior.Dissonance-reducing buying behavior.Habitual buying behavior.Variety seeking behavior.Molly, a company mediator, had agreed to help Martin and Samir. The two men had been in constant conflict ever since they became co-managers of the marketing department two months ago, and this conflict was starting to impact all parts of the department. To begin, Molly asked both men to take a conflict style assessment. After receiving the assessments back from Samir and Martin, Molly began her analysis to determine the preferred conflict style of each. Samir's assessment showed that it was typical for him be willing to give up some of his own needs, as long as the other party was willing to do the same in order to find a workable solution. He was not one to be overly aggressive, but could stand his ground when needed. According to the assessment, Samir's preferred conflict style is __________.
Answer: accommodating
Explanation:
Based on the information given in the question, according to the assessment, Samir's preferred conflict style is accommodating.
Accommodating style is when one puts the need of the other party before theirs such that the person allows the other party win and get it done their way.
In such scenarios, one believes that taking too much time arguing isn't worth it. Since Samir's assessment showed that it was typical for him be willing to give up some of his own needs, as long as the other party was willing to do the same in order to find a workable solution, then he's using accommodating style.
In 1982-84 dollars, the real average hourly wage rate in 2005 was $8.18 and in 2006 , it was $8.24 . In 2005 , the CPI was 195.3 and in 2006 , the CPI was 201.6 . Calculate the nominal wage rate in 2005 and in 2006 .
Answer:
the nominal wage rate in 2005 and in 2006 is 15.98 and 16.61 respectively
Explanation:
The computation of the nominal wage rate in 2005 and in 2006 is shown below:
For the year 2005
= $8.18 × $195.3 ÷ 100
= 15.98
And, for the year 2006
= $8.24 × 201.60 ÷ 100
= 16.61
In this way it should be calculated
hence, the nominal wage rate in 2005 and in 2006 is 15.98 and 16.61 respectively