Jenae's study ignored the fact that only some of her coffee choices had caffeine, even though her co-workers preferred caffeinated coffee. Therefore, Jenae decided to label one type of decaffeinated coffee as having caffeine to see what would happen. As she anticipated, this coffee became more popular with her co-workers, and they claimed that the extra boost of caffeine helped them focus on their work. The growing popularity of the decaffeinated coffee among co-workers, under the false impression that it gave them extra caffeine, is an example of ________.

Answer:

Placebo effect

Explanation:

Placebo effect occurs when an individual starts to show positive response to an inactive substance after being told the substance has powers to cure.

The person's mind subconsciously helps him heal or perform better on the false belief that the substance is effective.

In the given scenario Jeanne labelled decaffeinated coffee as caffeinated coffee. On consumption her co-workers claimed that the extra boost of caffeine helped them focus on their work.

This is a placebo effect.

Answer:

Placebo effect

Explanation:

Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Required: 1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January 2017, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.

The PLM Partnership balance sheet includes the following assets on December 31 of the current year: Basis FMV Cash $ 230,000 $ 230,000 Accounts receivable 0 75,000 Land 70,000 100,000 Total $ 300,000 $ 405,000 Pamela, a 1/3 partner, has an adjusted basis of $100,000 for her partnership interest. If Pamela sells her entire partnership interest to Emma for $135,000 cash, how much capital gain and ordinary income must Pamela recognize from the sale?

During May, Salinger Company accumulated 740 hours of direct labor costs on Job 200 and 900 hours on Job 305. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 200 and $23 per direct labor hour for Job 305.Journalize the entry to record the flow of labor costs into production during May. If an amount box does not require an entry, leave it blank.

Since EBIT is not necessarily indicative of cash flow, many financial analysts adjust the formulation by: a. adding unpaid taxes to EBIT in the TIE formula b. adding unpaid taxes and interest to EBIT in the formula c. adding depreciation to EBIT in the TIE formula d. adding unpaid taxes, interest and depreciation to EBIT in the TIE formula

Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2020. During that time, he earned $76,000 of self-employment income. On April 1, 2020, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $196,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year

Miracle Green Corporation operates two garden supply stores: A and B. The following information relates to store A: Sales revenue$900,000 Variable operating expenses 400,000 Fixed expenses: Traceable to A and controllable by A 275,000 Traceable to A and controllable by others 120,000 A's segment profit margin is: Multiple Choice $505,000. $105,000. $225,000. $500,000. $380,000.

The following information is available for the Lock-Tite Company, which produces special-order security products and uses a job-order costing system.April 30 May 31Inventories Raw materials $ 43,000 $ 43,000 Work in process 9,300 20,900 Finished goods 53,000 33,100Activities and information for May Raw materials purchases (paid with cash) 188,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 12,000 Indirect labor 57,500 Other overhead costs 92,500 Sales (received in cash) 1,600,000 Predetermined overhead rate based on direct labor cost 55%Compute the following amounts for the month of May using T-accounts:1. Cost of direct materials used.2. Cost of direct labor used.3. Cost of goods manufactured4. Cost of goods sold*5. Gross profit.6. Overapplied or underapplied overhead.

Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates the total number of horse stalls in her market to be 5000, owned by a total potential population of 1500. Currently, there are only two competitors in the market, Allison, who has 439 stalls that she cleans, and Sam's Hayfaring Maneger, that cleans 1,450 stalls. The remainder of the stalls are cleaned by their owners rather than by a service. Allison prices her cleaning services at $11 per stall per month and Sam charges $8 for the same service. Allison's sales are derived from 136 customers while Sam's are from 54 customers, meaning that Sam's customers have more stalls on a per capita basis.
1. What is the market penetration rate based on potential customers
2. What is Allison's unit market share (based on stalls cleaned)?
3. What are Allison's monthly revenues?
4. What is Allison's revenue market share?
5. What is Allison's relative market share based on units?

Robert became quite well-to-do as founder and president of Carlson Auto Paint and Supply, Inc. (CAPS). Now, he wants to start a permanent fund to support research directed toward improved sustainability of painted surfaces at his alma mater. He plans to contribute money now so that $200,000 per year can be withdrawn each year forever, beginning in year 7. If the fund earns interest at a rate of 8% per year, how much money must be donated now

Firm C currently has 320,000 shares outstanding with current market value of $33 per share and generates an annual EBIT of $1,500,000. Firm C also has $1 million of debt outstanding. The current cost of equity is 9 percent and the current cost of debt is 6 percent. The firm is considering issuing another $3 million of debt and using the proceeds of the debt issue to repurchase shares (a pure capital structure change). It is estimated that the cost of the new debt will be 7 percent and that the cost of equity will rise to 10 percent with the additional debt. The marginal tax rate is 34 percent. a. What is the current market value of the firm

Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $86,000 and Cost of Goods Sold of $452,000.Included in Inventory (and Accounts Payable) are $13,200 of lenses SLC is holding on consignment.Included in SLC’s Inventory balance are $6,600 of office supplies held in SLC’s warehouse.Excluded from SLC’s Inventory balance are $9,600 of lenses in the warehouse, ready to send to customers on January 2. SLC reported these lenses as sold on December 31, at a price of $18,200.Included in SLC’s Inventory balance are $3,800 of lenses that were damaged in December and will be scrapped in January, with zero realizable value.Required:For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

ABC Industries manufactured 2400 units of its product Huge in the month of April. It incurred a total cost of $132,000 during the month. Out of this $132,000, $45,700 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. It had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor

Jenny, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Jenny expects inflation to be 3% over her working life, and the appropriate risk-free discount rate is 5%. Her personal consumption is equal to 25% of her after-tax earnings, and her combined federal and state marginal tax bracket is 15%. What is the amount of life insurance necessary for Jenny using the Human Life Value method

Esquire Comic Book Company had income before tax of $1,800,000 in 2021 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $420,000. The division generated before-tax income from operations from the beginning of the year through disposal of $660,000.
2. The company incurred restructuring costs of $85,000 during the year.
Required:
Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures.

On August 5, 2021, Carla Vista Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $420 each. The cost of shipping the dining sets amounted to $4300 and was paid for by Carla Vista Furniture. On December 30, 2021, the consignee reported the sale of 20 dining sets at $920 each. The consignee remitted payment for the amount due after deducting a 7% commission, advertising expense of $670, and installation and setup costs of $850. The amount cash received by Carla Vista furniture is

Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 2,000 $ 5 For the current year: Purchase, March 21 5,000 6 Purchase, August 1 3,000 8 Inventory, December 31, current year 4,000 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.

A company using public relations sends information to media outlets such as

newspapers and radio stations. Who decides what information about the

company the outlets will publish?

A. The media outlets

B. The audience for the media outlets

C. The marketer

D. The publicity agency

N it

RideShare offers short-term rentals of vehicles that are kept in small lots in urban neighborhoods with plenty of potential customers. With one lot, it has six cars. The interarrival time of potential demand for this lot from its base of customers is 20 minutes. The average rental period is 4 hours. If a customer checks availability of vehicles in this lot online and finds that they are all rented for the desired time, the customer skips renting and finds alternative arrangements. However, because customers pay a monthly fee to subscribe to this service, RideShare does not want customers to be disappointed too often.

Required:
a. What is the offered load?
b. What is the implied utilization?
c. What is the capacity of the process (rentals per hour)?
d. What is the probability that all eight cars are rented at the same time?

Bonita Industries prepared an aging of its accounts receivable at December 31, 2020 and determined that the amount expected to be collected was $904000. Additional information is available as follows:

Allowance for uncollectible accounts at 1/1/20âcredit balance $101500
Accounts written off as uncollectible during 2020 69500
Accounts receivable at 12/31/20 966500
Uncollectible accounts recovered during 2020 14000

For the year ended December 31, 2020, Bonita's bad debt expense would be:________

Hyu Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 52,400 labor-hours. The estimated variable manufacturing overhead was $2.82 per labor-hour and the estimated total fixed manufacturing overhead was $1,196,840. The actual labor-hours for the year turned out to be 53,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows:
Fabric $58,300
Polyester filling 30,000
Lumber 58,800
Glue 9,950
The materials purchased during April on account are summarized from the receiving reports as follows:
Fabric $820,000
Polyester filling 315,000
Lumber 555,000
Glue 80,000
Materials were requisitioned to individual jobs as follows:
Fabric Polyester Filling Lumber Glue Total
Job 601 $190,000 $66,200 $118,500 $374,700
Job 602 365,000 152,100 219,300 736,400
Job 603 255,000 101,700 196,200 552,900
Factory overhead-indirect materials $83,600 83,600
Total $810,000 $320,000 $534,000 $83,600 $1,747,600
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank.

A recent national survey found that high school students watched an average (mean) of 6.8 DVDs per month with a population standard deviation of 1.8 DVDs. The distribution of DVDs watched per month follows the normal distribution. A random sample of 36 college students revealed that the mean number of DVDs watched last month was 6.2. At the .05 significance level, can we conclude that college students watch fewer DVDs a month than high school students?
value:
10.00 points
Required information
a. State the null hypothesis and the alternate hypothesis.
b. State the decision rule.
c. Compute the value of the test statistic. (Negative amount should be indicated by a minus sign.Round your answer to 1 decimal place.)
d. What is your decision regarding H0?
e. What is the p-value? (Round your answer to 4 decimal places.)

A standard measure of leverage is the debt/equity ratio. According to conventional wisdom among financial analysts, a high debt/equity ratio indicates a high risk of insolvency or ultimate bankruptcy; conversely, a low debt/equity ratio indicates that the company is relatively solvent and able to meet its long-term obligations. Please see PowerPoints 59 and 60 in chapter 3 (copied below). In the case of Apple, their debt/equity ratio actually increased from 2002 to 2020. In other words, Apple carries more debt today relative to its equity than it did in 2002. However, very few people would argue that Apple is a riskier company today than in 2002. Please make an argument, supported by data, for why Apple is at least as solvent today as it was in 2002, despite its much higher debt/equity ratio. The argument should not just be supported by data, but you also need to provide either an additional keen insight (addressed to an accounting/finance professional) or do an excellent job explaining the concept to an audience member who is not an accounting/finance professional.
To whom did you address the answer above, to a professional or non-professional?

Which of the following choices represents two consumers?
A grass and grasshopper
B.rabbit and dog
C. mushroom and frog
D.turtle and flower


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A pharmaceutical company in Belgium decides to expand into additional markets. It conducts research and decides to focus on marketing and delivering its products to Hungary and the Czech Republic. In order to be successful, the company recognizes it must translate its marketing, product instructions, and packaging into the local languages. In addition, the company decides to partner with local advertising companies to make sure its marketing and advertising is customized to fit the preferences of the local markets. The pharmaceutical company has chosen to use which type of marketing strategy to expand globally?
a. centralization strat
b. localization strat
c. standardization strat

The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.00 $50 Normal economy 1.00 43 Recession 0.50 34 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 4%.

You are given the following information about equipment that is required for your business. Assume that the equipment will be replaced as it wears out and that straight-line depreciation to zero is used for each. The required return is 15% and ignore taxes. Machine A has an initial cost of $200,000, an operating cost per year of $15,000, and an expected life of 8 years. Machine B has an initial cost of $300,000, an operating cost per year of $17,500, and an expected life of 10 years. How does the equivalent annual cost of Machine A compare to that of Machine B

Steve and Holly report the following items for 2020: Dividend income $16,000 Interest income 14,000 Itemized deductions (none of the amount resulted from a casualty loss) (26,000) Business capital gains 2,000 Business capital losses (10,000) In calculating their net operating loss, and with respect to the above amounts only, what amount must be added back to taxable income (loss)

Classify each of the following based on the macroeconomic definitions of saving and investment.

a. Crystal purchases stock in Pherk, a pharmaceutical company.
b. Brian purchases a new condominium in Dallas.
c. Alyssa purchases new ovens for her cupcake-baking business.
d. Tim purchases a certificate of deposit at his bank.

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