Answer:
$9802
Explanation:
The total return is the sum of the dividend value and the increase in share value:
return per share = $0.70 +($35.26 -32.58) = $3.38
Then the return on 2900 shares is . . .
2900 × $3.38 = $9802
Tactical decisions define Group of answer choices the day-to-day activities of the organization. the goals and plans of the organization. the domain of operations managers, who are close to the customer. the steps taken to achieve the goals and objectives.
Answer:
E. the steps taken to achieve the goals and objectives.
Explanation:
Tactical decisions are the decisions made by the mid-level management in an organization, in a bid to implement the strategic plans of the director-general of the organization. These decisions are made and implemented within a short period of time. Some tactical decisions include;
1. Structuring of workforce
2. Purchase of items and resources
3. Marketing strategies
4. Allocation of jobs to employees.
When these decisions are made by the middle-level management, they are under obligation to answer to the directors of the organization as to how these decisions were implemented.
Firm A's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 15 units or higher. Firm A incurs a 25% annual holding cost. What is Firm A's annual ordering costs if it orders at a quantity of 28 units?
Answer:
Annual ordering cost=$32.142
Explanation:
Annual ordering cost = Annual demand/order quantity × ordering cost per order
Annual demand = 15 × 12 = 180 units
Kindly note that there are 12 months in year.
Annual Ordering cost = 180/28 × $5= $32.142
Annual ordering cost=$32.142
Production estimates for July are as follows:
Estimated inventory (units), July 1 725
Desired inventory (units), July 31 1, 200
Expected sales volume (units), July 7,500
For each unit produced four hours of direct labor is required. The labor rate per hour is $15. The number of direct labor hours required for July production is:_________
Answer:
31,900
Explanation:
For the computation of the number of direct labor hours required for July production first we need to find out the production in units which is shown below:-
Production in units = Expected sales in Units + Ending Inventory - Beginning inventory
= 7,500 + 1,200 - 725
= 7,975
Total direct labor hours required = Production in units × Hours per unit
= 7,975 × 4
= 31,900
We simply applied the above formulas
On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $203,433.00 with an accumulated depreciation of $183,089.70. Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $18,308.97. What is the amount of the gain or loss on this transaction
Answer:
loss= $2,035.33
Explanation:
Giving the following information:
Purchasing price= $203,433.00
Accumulated depreciation= $183,089.70.
The company found a company that is willing to buy the equipment for $18,308.97.
The gain or loss from selling an asset depends on the book value. If the selling price is higher than the book value, the company gain from the sale.
Book value= purchasing price - accumulated depreciation
Book value= 203,433 - 183,089.7= 20,343.3
Gain/loss= 18,307.97 - 20,343.3= $2,035.33 loss
You are considering purchasing a stock that currently sells for $50. The expected price of the stock in a year is $45, and during the coming year a $2 dividend is expected to be paid. The risk-free rate is 5% and the market return is 10%. The stock has a beta of 0.85. What is the holding period return of the stock
Answer:
The holding period return of the stock is - 6 % or - 6.0%
Explanation:
Solution
Given that:
You are thinking of purchasing a stock that currently sells for= $50
The expected price of the stock =$45
Dividend expected to be paid =$2
Risk free rate = 5%
Market return = 10%
Stock (beta) = 0.85
We will now find the holding period return of the stock which is given below:
The formula for calculating the holding period return of a stock is given as,
= The Expected price in a year + Dividend earned during the year – Purchase Price / Purchase Price
We recall that:
The Purchase Price = $ 50
Expected price in a year = $ 45
Dividend earned during the year = $ 2
Now,
By Applying the above values in the formula we have the holding period return of the stock as :
= [45 + 2 – 50] / 50
= - 3 / 50
= - 0.0600 = - 6.00 %
= - 6.0 % ( when rounded off to one decimal place )
Therefore, the Holding period return of the stock is - 6 % or - 6.0%
A business is considering a cash outlay of $880,000 for the purchase of land, which it intends to lease for $200,000 per year. If alternative investments are available that yield a 15 percent return, the opportunity cost of the purchase of the land is
Answer:
132000$
Explanation:
880000 *0,15=132000
A business is considering a cash outlay of $880,000 for the purchase of land, which it intends to lease for $200,000 per year. If alternative investments are available that yield a 15 percent return, the opportunity cost of the purchase of the land is $132,000.
What is an opportunity cost rate?When economists talk about a resource's "opportunity cost," they mean the worth of the resource's next-highest-valued alternative usage.
Given
Cost of Land = $880,000
Return = 15%
Lease = $200000
Required to the opportunity cost =?
opportunity cost = cost of land x return rate
opportunity cost = 880,000 x 15 = $132,000
Opportunity cost is crucial for businesses because it helps them decide how to effectively use their limited resources and cash. A corporation can pick which choice gives the highest or most productive return by calculating the opportunity cost of a specific option or options.
Thus, the opportunity cost of the purchase of the land is $132,000.
Learn more about the opportunity cost here:
https://brainly.com/question/13036997
#SPJ2
Lower of Cost or Market Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of $300, a normal profit margin of $35, and a current replacement cost of $250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Black’s ending inventory.
Answer:
$265
Explanation:
The computation of Net realizable value-normal profit margin by using the lower of cost or market rule is shown below:-
Amount per unit = Net realizable value or Ceiling - Normal profit margin
= $300 - $35
= $265
Therefore for computing the amount per unit we simply applied the above formula i.e by deducting the normal profit margin from the net realizable value so that the amount per unit could come
The due diligence process of analyzing and evaluating an existing business ________. Group of answer choices may be just as time consuming as the development of a comprehensive business plan for a start-up helps to determine if the company will generate sufficient cash to pay for itself and leave you with a suitable rate of return on your investment helps to determine what the company's potential for success is All of these
Answer:
All of these.
Explanation:
The due diligence process of analyzing and evaluating an existing business, is the process responsible for revealing the positive and negative aspects of a business.
This process aims to satisfy the buyer and seller by examining the main details of a transaction and ensuring its legality and evaluating most of the facts of the deal.
The agreement must then satisfy the due diligence aspects, so that the two parties involved can price and finalize the transaction effectively.
Therefore, all answer options are correct.
Riviera Township reported the following data for its governmental activities for the year ended June 30, 20X9: Item Amount Cash and cash equivalents $1,000,000 Receivables 300,000 Capital assets 8,500,000 Accumulated depreciation 1,200,000 Accounts payable 400,000 Long-term liabilities 4,000,000 Additional information available is as follows: All of the long-term debt was used to acquire capital assets. Cash of $475,000 is restricted for debt service. 1) Based on the preceding information, on the statement of net assets prepared at June 30, 20X9, what amount should be reported for total net assets?A) $2,425,000B) $4,200,000C) $2,900,000D) $3,625,0002) Based on the preceding information, on the statement of net assets prepared at June 30, 20X9, what amount should be reported for net assets invested in capital assets, net of related debt?A) $4,200,000B) $2,900,000C) $2,825,000D) $3,300,0003) Based on the preceding information, on the statement of net assets prepared at June 30, 20X9, what amount should be reported for net assets, unrestricted?A) $425,000B) $900,000C) $525,000D) $825,000
Answer:
1. B) $4,200,000
2. D) $3,300,000
3. B) $900,000
Explanation:
1. Total net assets = Total assets - Total Liabilities
=(1,000,000+300,000+8,500,000) - (1,200,000 + 400,000 + 4,000,000)
=9,800,000 - 5,600,000
=$4,200,000
2. The amount that should be reported for net assets invested in capital assets, net of related debt is
=(Capital assets- Accumulated Dep) - Long term debt
=(8,500,000 - 1,200,000) - 4,000,000
=7,300,000 - 4,000,000
=$3,300,000
3. The amount that should be reported for net assets, unrestricted is
=Total Net assets - Net of related debt
=4,200,000 - 3,300,000
=$900,000
The following information for the past year for the Blaine Corporation has been provided:Fixed costs:Manufacturing$ 125, 000$125,000Marketing24,00024,000Administrative20,00020,000Variable costs: Manufacturing $ 110,000$110,000 Marketing 30,00030,000 Administrative 34,00034,000 During the year, the company produced and sold 60,00060,000 units of product at a selling price of $ 12.40$12.40 per unit. There was no beginning inventory of the product at the beginning of the year.What is the contribution margin ratio for Blaine Corporation (round to 1 decimal)?A. 70.470.4 %B. 53.953.9 %C. 22.722.7 %D. 76.676.6 %
Answer:
D. 76.6 %
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
First Calculate the Contribution
Contribution = Sales - Variable Costs
= (60,000 units × $ 12.40) - ($110,000+$30,000+$34,000)
= $744,000 - $174,000
= $570,000
Then Calculate Contribution Margin Ratio
Contribution Margin Ratio = $570,000 / $744,000 × 100
= 76.61290
= 76.6 % ( 1 decimal)
According to the Phillips curve, policymakers could reduce both the inflation rate and the unemployment rate by Group of answer choices increasing the money supply. raising taxes. increasing government expenditures None of the other answers is correct
Answer:
None of the other answers is correct.
Explanation:
Williams A. Phillips was a notable economist born in New Zealand. Phillips wrote a famous article titled "The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957" published in 1958 by Economica. In the article, he used data for the United Kingdom (U.K) to illustrate on a graph, a negative or inverse relationship between the rate of change of employee wages in the U.K and the unemployment rate in the United Kingdom (U.K).
Consequently, using the Phillips curve it is practically impossible for policymakers to reduce both the inflation rate and the unemployment rate because as the inflation rate decreases; the unemployment rate increases and vice-versa.
However, according to the Phillips curve, policymakers can reduce inflation and increase unemployment if aggregate demand is contracted.
Stuart tells his student government representative at his college to propose rent controls on local rental housing as a way to help students afford rental housing. Maria disagrees with Stuart, saying rent controls will make students worse off. Who is correct and why
Answer:
Both are correct in part. Rent controls will be better for the students who are able to find housing at the reduced price but worse for students as a whole because there will be a shortage of rental housing, a lower future supply, and the quality will deteriorate.
Explanation:
Rent control involves use of price regimes such as price floor and price ceiling to control the cost of rent by the government.
Price ceiling is the maximum price allowed for rent while price floor is the minimum amount a property is allowed to be rented out.
The aim of rent control is to make housing cost cheap for everyone.
So both Stuart and Maria are correct. Rent control will make housing affordable for the students.
However when unfavourable rent ceiling is imposed by government, suppliers always aim to make profit and will refuse to give property out for rent. Resulting in shortage of rental housing, a lower future supply, and the quality will deteriorate.
Will Jones, LIP is a small CPA firm that focuses primarily on preparing tax returns for small businesses.
The company pays a $403 annual fee plus $11 per tax return for a license to use Mega Tax software.
1a. What is the company's total annual cost for the Mega Tax software, if 332 returns are filed?
b. If 424 returns are filed?
c. If 522 returns are filed?
2a. What is the company's cost per return for the Mega Tax software, if 332 returns are filed?
b. If 424 returns are filed?
c. If 522 returns are filed?
Answer and Explanation:
1. The computation of the total annual cost in each case is shown below:
Total annual cost = Annual fee + license per tax return × number of returns filed
a. For 332 returns
= $403 + $11 × $332
= $403 + $3,652
= $4,055
b. For 424 returns
= $403 + $11 × $424
= $403 + $4,664
= $5,067
c. For 522 returns
= $403 + $11 × $522
= $403 + $5,742
= $6,145
2. Now the cost per return is
Cost per return = Total annual cost ÷ number of returns filed
a. For 332 returns
= $4,055 ÷ 332 retunrs
= $12.21
b. For 424 returns
= $5,067 ÷ 424 returns
= $11.95
c. . For 522 returns
= $6,145 ÷ 522 returns
= $11.77
Q4) An investment offers a total return of 12.8 percent over the coming year. Janice thinks the total real return on this investment will be only 7 percent. What does Janice believe the approximate inflation rate will be over the next year
Answer:
inflation rate= 5.8%
Explanation:
Giving the following information:
An investment offers a total return of 12.8 percent over the coming year. Janice thinks the total real return on this investment will be only 7 percent.
The real return on investment includes the effect on inflation.
Real rate of return= total return - inflation rate
0.07=0.128 - inflation rate
inflation rate= 0.058= 5.8%
Your uncle lends you $2,000 less $100 (interest at 5 percent), and you receive $1,900. Use the APR formula to find the true annual percentage rate. Assume you repay the entire loan in one year
Answer:
APR =5.263%
Explanation:
Computation of the true annual percentage rate
Using the APR formula to find the true annual percentage rate
APR=(2 × n × I) / [P × (N + 1)]
Hence;
APR= (2 × 1 × $100) / [$1,900 × (1 + 1)]
APR=$200/($1,900×2)
APR=$200/$3,800
APR= 0.05263 ×100
APR =5.263%
Therefore the true annual percentage rate using the APR formula will be 5.263%
XYZ Company makes 400 widgets. The variable costs are $35.60 per unit and fixed costs are $30.00 per unit; however, $21.40 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $44.00 per unit?
Answer:
increase in income of $80
Explanation:
Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.
Note : The fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.
Analysis of Costs and Savings
Purchase Price (400 widgets × $44.00) = ($17,600)
Savings :
Variable Costs ($35.60 × 400 widgets) = $14,240
Fixed Cost ( $8.60 × 400 widgets) = $3,440
Net Income effect = $80
Conclusion :
The effect on net income if the company instead buys the widgets is an increase in income of $80
The opening balance of Company A is 25,000, and the repayment is scheduled for 1,000 per month at an annual interest rate of 5%. Use the average debt balance to calculate the interest payment. The closing balance of debt at the end of the month is _____ and the interest payment is _____.
Answer:
Closing balance of debt at the end of the month = $24,000
Interest payment = $102.08
Explanation:
The computation of closing balance of debt at the end of the month and the interest payment is shown below:-
Closing balance of debt at the end of the month = Opening balance of company A - Scheduled Repayment per month
= $25,000 - $1,000
= $24,000
Interest payment = Average Debt × Annual interest rate × 12 months
= (($25,000 + $24,000) ÷ 2) × 0.05 ÷ 12 months
= $102.08
Therefore we have applied the above formulas.
Garden Corporation uses cost-plus pricing with a 30% mark-up. The company is currently selling 12,000 units at $21.45 per unit. Each unit has a variable cost of $11.50. In addition, the company incurs $60,000 in fixed costs annually. If demand falls to 10,000 units, how much will the company have to charge per unit in order to earn the same annual profit
Answer:
$23.44
Explanation:
The computation of profit charge per unit for earning same annual profit is shown below:
Given that
No of Units Sold = 12,000
Sale Price of each Unit = $21.45
Variable Cost = 11.50
So,
Contribution Per Unit is
= Selling price per unit - variable cost per unit
= $21.45 - $11.50
= $9.95
So,
Total Contribution is
= 12,000 units × $9.95
= $119,400
And,
Fixed Costs for the year is $60,000
So, the Profit for the year is
= Contribution margin - fixed cost
= $119,400 - $60,000
= $59,400
Now If the demand for the product falls to 10,000 Unit
So we assume Number of units expected to be sold is10,000
Since Variable cost Per Unit is 11.50
So, the Total Variable Cost is
= 10,000 units × $11.50
= $115,000
And,
Fixed Cost per annum $60,000
Expected Profit $59,400
So, the total amount is
= $115,000 + $60,000 + $59,400
= $234,400
So, the price per unit charged is
= $234,400 ÷ 10,000 units
= $23.44
Mica, a minor, signs a contract to pay National Health Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is Group of answer choices
Answer:
Ratification
Explanation:
Since in the question, it is given that the mica who is a minor signed a contract regarding 24 months monthly fee for the national health club
Now after six months she or he is reaching her majority age and she or he continues to take the facilities of the club so this act we called as ratification as this a valid contract between the mica and the health club because he or she reaches the age of majority
Cash flows of two mutually exclusive projects are as follows. Project A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Project B has initial cost of $120,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life. Assume the interest rate is 10% per year. Which of the following statements is true?
A. Two projects have different life cycle
B. Project A should be selected.
C. The present worth of project A is -$143,252.17.
D. The present worth of project B is -$109,842.22.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Project A:
Costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year.
Project B:
The initial cost of $120,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life.
Assume the interest rate is 10% per year.
Both projects present a 3-year life cycle.
To determine which option is correct, we need to calculate the net present value using the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Project A:
Cf1= 30,000/1.10= 27,272.73
Cf2= 30,000/1.10^2= 24,793.39
Cf3= 45,000/1.10^3= 33,809.17
Total= 85,875.29
NPV= -80,000 + 85,875.29= 5,875.29
Because the net present value is positive, Project A should be accepted.
Project B doesn't provide income, therefore it shouldn't be accepted.
In its first year of operations, Roma Company reports the following. Earned revenues of $47,000 ($39,000 cash received from customers). Incurred expenses of $26,500 ($20,950 cash paid toward them). Prepaid $7,250 cash for costs that will not be expensed until next year. Compute the company’s first-year net income under both the cash basis and the accrual basis of accounting.
Answer:
Net Income
Cash basis $10,800
Accrual basis $20,500
Explanation:
Computation of Roma company’s first-year net income under both the cash basis and the accrual basis of accounting will be:
Cash basis Accrual basis
Revenue $39,000 $47,000
Expenses $28,200 $26,500
Net Income $10,800 $20,500
Cash paid $20,950
Add Prepaid cash $7,250
=$28,200
Therefore first-year net income cash basis will e $10,800 and accrual basis will be $20,500
Six years ago, James Corporation sold a $100 million bond issue to expand its facilities. Each debenture has a $1,000 par value, an original maturity of 20 years (there are now 14 years left to maturity), and an annual coupon rate of 11.5% with semiannual payments. If you require a 14% return, what price would you pay today for a James bond?
Answer:
Price of Bonds=$848.286
Explanation:
The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate
Value of Bond = PV of interest + PV of RV
The value of bond for James Corporation can be worked out as follows:
Step 1
PV of interest payments
PV = A × (1+r)^(-n)/r
A- semiannual interest payment, n-number of periods, r- semi annul yield
A-semi- annul interest payment:
=11.5%× 1,000× 1/2 = 75
r-semi-Annual yield = 14%/2 = 7%
n-Maturity period =1 4 × 2= 28
PV of interest payment:
=57.5 × (1- (1+0.07)^(-28)/0.07)
= 697.88
Step 2
PV of Redemption Value
= 1,000 × (1.07)^(-28) = 150.40
Step 3
Price of bond
=697.88 + 150.40
=$848.286
Prepare the journal entry to record Autumn Company’s issuance of 78,000 shares of no-par value common stock assuming the shares:
a. Sell for $32 cash per share.
b. Are exchanged for land valued at $2,496,000.
Answer:
A Journal entry was recorded for Autumn Company which is given below.
Explanation:
Solution
(A) Journal Entry:
No Account and Explanation Debit Credit
a Cash (78000*32) 2496000
Common Stock 2496000
(To record issued common stock)
(B) Journal Entry:
No Account and Explanation Debit Credit
b Land 2496000
Common Stock 2496000
(To record issued common stock)
Mann, Inc., which owes Doran Co. $1,200,000 in notes payable with accrued interest of $108,000, is in financial difficulty. To settle the debt, Doran agrees to accept from Mann equipment with a fair value of $1,140,000, an original cost of $1,680,000, and accumulated depreciation of $390,000.
Instructions
(a) Compute the gain or loss to Mann on the settlement of the debt.
(b) Compute the gain or loss to Mann on the transfer of the equipment.
(c) Prepare the journal entry on Mann’s book to record the settlement of this debt.
(d) Prepare the journal entry on Doran’s books to record the settlement of the receivable.
Answer:
A. $168,000
B.$150,000
C.Dr Notes Payable1,200,000
Dr Interest Payable 108,000
Dr Accumulated Depreciation 390,000
Dr Loss on Disposal of Equipment 150,000
Cr Equipment 1,680,000
D.Dr Equipment 1,140,000
Dr Allowance for Doubtful Accounts 168,000
Cr Notes Receivable1,200,000
Cr Interest Receivable 108 ,000
Explanation:
Mann, Inc.,
(a)Computation of the gain or loss to Mann on the settlement of the debt will be:
Note payable$1,200,000
Add Interest payable108,000
Carrying amount of debt 1,308,000
Less Fair value of equipment (1,140,000)
Gain on restructuring of debt$ 168,000
(b)Computation of the gain or loss to Mann on the transfer of the equipment will be:
Cost$1,680,000
Less Accumulated depreciation (390,000)
Book value1,290,000
Less Fair value of plant assets (1,140,000)
Loss on disposal of equipment$ 150,000
(c) The Journal urnal entry on Mann’s book to record the settlement of this debt will be:
Dr Notes Payable1,200,000
Dr Interest Payable 108,000
Dr Accumulated Depreciation 390,000
Dr Loss on Disposal of Equipment 150,000
Cr Equipment 1,680,000
Cr Gain on Restructuring of Debt 168,000
(d) The journal entry on Doran’s books to record the settlement of the receivable will be:
Dr Equipment 1,140,000
Dr Allowance for Doubtful Accounts 168,000
Cr Notes Receivable1,200,000
Cr Interest Receivable 108 ,000
Motorzone offers replacement parts for old Volkswagen Beetles. The company calculates shipping charges based on shipping parts from Boston, even though some parts actually ship from St. Louis. Motorzone most likely practices ________ pricing.
Answer:
basing-point
Explanation:
Basing point pricing is a system used to establish prices in which the business charges a fixed amount for the product and an additional charge for the shipping that is determined according to the customer's distance from a certain place that is called the basing point. According to this, the answer is that Motorzone most likely practices basing-point pricing because they establish the shipping charges based on a pre-determined location even though some products are not in this place.
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. This firm is earning $5.50 on every $50 invested by its founders.
a. What is its percentage rate of return? 11 percent.
b. Is the firm earning an economic profit? Yes If so, how large? 6 percent.
c. Will this industry see entry or exit? Entry
d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
Answer: The answers are given below
Explanation:
a. What is its percentage rate of return?
From the question, we are told that the firm is earning $5.50 on every $50 invested by its founders. The percentage of return will now be:
= $5.50/$50 × 100%
= 0.11 × 100%
= 11%
b. Is the firm earning an economic profit? If so, how large?
The economic profit will be the difference that exists between the percentage of return which is 11% and the normal rate of profit which is 5%. This will be:
= 11% - 5%
= 6%
The firm is earning economic profit of 6%.
c. Will this industry see entry or exit?
There will be entry into the industry. This is because the percentage of return which is 11% is greater than the normal rate of profit which is 5%.
d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
The rate of return earned by firms in this industry once the industry reaches long-run equilibrium will be 5% which is the normal rate of profit in the economy.
Ginny currently earns a (real or nominal) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of sparkling water is $2.50 per gallon; in this case, Ginny (real or nominal) wage, in terms of the amount of sparkling water she can buy with her paycheck, is gallons of sparkling water per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a (real or nominal) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's (real or nominal) wage is than both the worker and employer expected when they agreed to the wage.
Ginny and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 5%, not 4%. For example, suppose the price of apple juice rose from $2.00 per gallon to $2.10 per gallon. This means that between 2012 and 2013, Ginny's nominal wage by___________ % , and her real wage by approximately____________ .
Answer:
since we are using this year as our base year, Ginny's real and nominal wage is $12 per hour
price of sparkling water $2.50 per gallon
Ginny can buy 4.8 gallons of sparkling water per hour of work
If the price level turns out to be higher than expected, a worker's real wage is LOWER than both the worker and employer expected when they agreed to the wage.
Ginny and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 5%, not 4%. This means that between 2012 and 2013, Ginny's nominal wage INCREASED by 4%, and her real wage by DECREASED BY approximately 0.92%.
Ginny's real wage in 2013 = $12.48 / 1.05 = $11.89
it decreased by ($11.89 - $12) / $12 = -0.92%
Yosko Company expects to sell 2 comma 000 units of finished product in January and 2 comma 150 units in February. The company has 260 units on hand on January 1 and desires to have an ending inventory equal to 40% of the next month's sales. March sales are expected to be 2 comma 270 units. Prepare Yosko's production budget for January and February.
Answer:
Production budget
January 2,600 units
February 2,198 units
Explanation:
The sales budget is adjusted for the projected opening and closing inventories unit to arrive at the production budget:
The production budget can be determined using the formula below
Production budget = Sales budget + closing inventory- opening inventory
January production budget
Sales budget = 2,000 units
Closing inventory = 40% × February sales = 40% × 2,150
Opening inventory = 260 units
Production budget for January = 2000 + (40% × 2,150) - 260= 2,600 units
February production budget
Sales budget = 2,150
Opening inventory = January closing inventory = 860 units
Closing inventory = 40% × March sales= 40% × 2,270
Production budget fro February = 2,150 + (40% × 2,270) - 860= 2,198 units
Production budget
January 2,600 units
February 2,198 units
Cretically analyse the difference and the point of convergence between floor inspection and functional inspection
Answer and Explanation:
The connection between Floor and Function Inspection is that these two techniques are used to eliminate and identify defective raw materials prior to the development of the same. Quality is the key priority for both processes, where standards are reviewed and evaluated to ensure that the operation continues correctly.
The distinction between the two is that in Floor Inspection the system inspects the material in process doe the machine or at the time of production to ensure that each and every machine or floor is working effectively. It is to make share the material processing costs don't go out or it could easily be found by hand and defect.
The Functional Inspection, on the other hand, will have the key feature tested which the product is supposed to perform. For instance, if the same has the right speed and output, the electric motor could be tested up. It doesn't inform us about the variability throughout all parts but gives us an overall view of the satisfaction that comes from investigating the same commodity.
Mr. Thano, age 47, withdrew $22,000 from his employer-sponsored qualified retirement plan to pay for his daughter's wedding. Compute the tax cost of the withdrawal if Mr. Thano has a 24% marginal tax rate on ordinary income. Tax Cost is_____
Answer:
$7,480
Explanation:
Mr Thano withdrew $22,000 at the age of 47
Marginal Tax rate= 24%
At the age of 47 means that the withdraw was made prematurely. Immature withdrawal of retirement plans means withdrawal made before the age of 60-65 years depending on the Country Policy
Hence, Tax Cost = 24% * 22,000
Tax cost = 5,280.
In addition, Mr Thano will be charge premature withdrawal cost of 10% as well
10% * 22000 = 2,200.
In total, the tax cost on the withdrawal of $22,000 is = $5,280 + $2,200 = $7,480