Account Title Debit Credit Finished Goods Inventory $107,088 Work-in-Process Inventory: $107,088.
Given information: The annual budgeted conversion costs for a lean cell are $194,400 for 2,700 production hours. Each unit produced by the cell requires 18 minutes of cell process time. During the month, 1,450 units are manufactured in the cell. The estimated materials costs are $56 per unit. To calculate: Journalize the following entries for the month:
a. Materials are purchased to produce 1,530 units.
b. Conversion costs are applied to 1,450 units of production.
c. The cell completes 1,380 units, which are placed into finished goods.
Solution: a. Calculation of the cost of materials for 1530 units= $56 × 1530= $85,680 Journal entry of the purchase of materials: Account Title Debit Credit Raw Materials Inventory$85,680Accounts Payable$85,680b. Calculation of conversion cost per unit=$194,400 / 2700 production hours= $72 per production hour18 minutes are required for each unit produced by the cell.1 hour = 60 minutes18 minutes = 18/60 hour= 0.3 hour. Conversion cost per unit for cell processing time= $72 × 0.3= $21.6Total conversion cost per unit= $21.6 + $56= $77.6Conversion costs applied to 1,450 units= $77.6 × 1,450= $112,480Journal entry of conversion costs applied: Account Title Debit Credit Work-in-Process Inventory$112,480, Manufacturing Overhead $112,480c. Cost of completing 1,380 units= $77.6 × 1,380= $107,088Journal entry of units completed:
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The following entries for the month are journalized as follows:
Part a
The materials cost per unit is: $56/unit
Therefore, the total materials cost for producing 1,530 units would be:
Total material cost for producing 1,530 units = $56/unit × 1,530 units
= $85,680
Accounts Debit Credit
Materials $85,680
Accounts Payable $85,680
Journal entry to record the purchase of materials for 1,530 units.
Part b
Total production hours = 2,700 hours
Production hours per unit = 18 minutes
= 0.3 hours per unit
Production hours required for 1,450 units = 1,450 units × 0.3 hours per unit
= 435 hours
Conversion cost per hour = $194,400 ÷ 2,700 hours
= $72/hour
Conversion cost for 435 hours = $72/hour × 435 hours
= $31,320
Accounts Debit Credit
Work-in-Process $31,320
Manufacturing Overhead $31,320
Journal entry to apply conversion cost for 1,450 units of production.
Part c
The cost of manufacturing 1,380 units is:
Materials cost = $56/unit × 1,380 units
= $77,280
Conversion cost = $31,320
Total cost = $77,280 + $31,320
= $108,600
Accounts Debit Credit Finished Goods $108,600
Work-in-Process $108,600
Journal entry to record completion of 1,380 units and placing them into finished goods.
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______________ ensures that the organization’s strategy has been translated into tactical and operational plans for each organizational unit that is expected to deliver on the strategy.
Organizational Velocity – p. 109
The availability of service depends on MTBF and MTRS parameters.
True or False
A measure of what is achieved or delivered by a system, person, team, practice or service is referred to as _________________
______ integration is responsible for coordinating or orchestrating all the suppliers involved in the development and delivery of products and services.
Group or person who is responsible for authorization of a change is referred to as _________
________ is a cause or potential cause for one or more incidents.
______________ a problem that has been analyzed but has not been resolved.
Configuration Management System – p. 141
Unplanned interruption to a service or reduction in the quality of service is referred to as Incident Management
True or False
Execution refers to the process of translating strategy into action by establishing an operational plan, developing a budget, and making resource allocation decisions.
Execution is essential for achieving results, and it entails ensuring that the organization’s strategy has been translated into tactical and operational plans for each organizational unit that is expected to deliver on the strategy. Execution is critical because it is where strategies are turned into results.
Execution is a crucial step in ensuring that the organization can deliver the strategy. It is also responsible for ensuring that all of the organization's operational and tactical plans are aligned with the overall strategy and that the organization has the necessary resources to implement these plans effectively.
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Which of the following scenarios involves a positive externality? O a. A manufacturing firm emits greenhouse gases into the atmosphere. O b. You plant a pretty garden that all of your neighbors enjoy looking at. O c. Your roommate listens to bad music late at night, preventing you from getting a good night's sleep. O d. I find my favorite flavor of PopTarts in the grocery store.
Scenario (b) involving planting a pretty garden that all neighbors enjoy looking at is an example of a positive externality.
A positive externality occurs when the actions of an individual or firm create benefits for others that are not directly reflected in the market transaction. In this case, scenario (b) fits the definition of a positive externality because planting a pretty garden not only brings personal enjoyment to the individual but also provides aesthetic benefits to the neighbors who can enjoy looking at it.
Option (a) involving a manufacturing firm emitting greenhouse gases is an example of a negative externality because it imposes costs on society in terms of environmental pollution. Option (c) involving a roommate listening to bad music that disrupts your sleep is also a negative externality as it creates a cost (reduced quality of sleep) for you. Option (d) where you find your favorite flavor of PopTarts in the grocery store is not an externality at all, as it doesn't involve external effects on others.
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Explain two types of cybercrime and how each would impact both
individuals and a business?
200-300 words typed please
Cybercrime has become a major concern for both individuals and businesses as they can lead to huge losses. The following are two types of cybercrime and how each would impact both individuals and businesses: 1. Malware 2. Phishing
Cybercrime refers to any criminal activity that is performed using the internet, a computer system, or any other computer technology. The internet has provided criminals with a platform where they can carry out illegal activities.
1. Malware Malware refers to any software that is designed to cause damage or disruption to a computer system or a network. Malware can cause a computer to crash, damage files, or steal personal information. Malware can be used to infect a system with a virus, worm, or Trojan horse. Malware can be introduced to a computer system through email attachments, software downloads, or any other means of file sharing. For individuals, malware can lead to the loss of personal data, including sensitive information like bank account details, social security numbers, and credit card information. The impact can be more significant for businesses, which can lose confidential data, trade secrets, and customer information, which can lead to loss of reputation, loss of business, and lawsuits.
2. Phishing Phishing refers to the practice of tricking people into providing their personal information, such as login credentials, credit card information, or bank account details. Phishing attacks can be carried out through email, social media, or any other communication platform. Phishing is often used to gain access to a system or to steal sensitive information. For individuals, phishing can lead to the loss of personal information, which can be used for fraudulent activities. The impact can be more significant for businesses, which can lose confidential data, trade secrets, and customer information, which can lead to loss of reputation, loss of business, and lawsuits.In conclusion, cybercrime can cause significant damage to both individuals and businesses. It is important to take measures to prevent cybercrime, such as using strong passwords, using antivirus software, and avoiding suspicious websites.
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The Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $4,766 at September 30. Other information is as follows: 1. Deposit in transit, $5,000. 2. The bank statement shows a debit memorandum for S60 for check printing charges. 3. Check No. 119 paid for $284 was incorrectly record by the Company for $248. 4. The total amount of checks still outstanding at September 30 amounted to $5,800. 5. The bank returned an NSF check from a customer for $530. 6. The bank included a credit memorandum for $2,060, which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,000, interest was $100 and bank fee was $40. Required: Prepare the bank reconciliation.
The bank reconciliation for the company's September statement is as follows: The adjusted balance per the bank statement is $12,000 after adding a deposit in transit. The adjusted balance per the company's cash account is -$1,034 after subtracting outstanding checks.
The bank reconciliation process begins with the balance per the bank statement, which is $7,000. Since there is a deposit in transit of $5,000, which represents a deposit made by the company but not yet recorded by the bank, we add this amount to the balance per the bank statement. This gives us an adjusted balance per the bank statement of $12,000.
Moving on to the company's cash account, the balance is $4,766. We subtract the outstanding checks, which are checks issued by the company but have not yet cleared the bank, totaling $5,800. This adjustment reduces the balance per the company's cash account to -$1,034, indicating an overdraft situation.
The bank reconciliation process helps identify discrepancies between the bank statement and the company's cash account. In this case, there is an overdraft in the company's records that needs to be further investigated. This may involve looking into the recording error for Check No. 119, the NSF check from a customer, and the bank fees. Resolving these discrepancies is crucial to ensure accurate financial reporting and proper management of the company's cash flow.
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An individual deposits an annual bonus into a savings account that pays 5% interest compounded annually. The size of the bonus increases by $6,000 each year, and the initial bonus amount was $30,000 Determine how much will be in the account immediately after the fifth deposit Oa. 582.750 12 Ob. 495,460 44 352.033.96 Od. 228,842 72
The sequence of deposits can be represented as follows:
year 1: $30,000year 2: $30,000 + $6,000
year 3: $30,000 + $6,000 + $6,000year 4: $30,000 + $6,000 + $6,000 + $6,000
year 5: $30,000 + $6,000 + $6,000 + $6,000 + $6,000
to calculate the future value of each deposit, we use the formula for compound interest:
a = p * (1 + r)ⁿ
where:
a = future valuep = principal amount (deposit)
r = annual interest rate (as a decimal)n = number of years
for this scenario, the interest rate is 5% (0.
to determine the amount in the account immediately after the fifth deposit, we need to calculate the future value of each deposit and then sum them up.
the initial bonus amount is $30,000, and it increases by $6,000 each year. 05) and the interest is compounded annually.
calculating the future value for each deposit:
year 1:
a1 = $30,000 * (1 + 0.05)¹ = $30,000 * 1.05 = $31,500
year 2:a2 = ($30,000 + $6,000) * (1 + 0.05)² = $36,000 * 1.1025 = $39,690
year 3:
a3 = ($30,000 + $6,000 + $6,000) * (1 + 0.05)³ = $42,000 * 1.157625 = $48,473.75
year 4:a4 = ($30,000 + $6,000 + $6,000 + $6,000) * (1 + 0.05)⁴ = $48,000 * 1.21550625 = $58,344.375
year 5:
a5 = ($30,000 + $6,000 + $6,000 + $6,000 + $6,000) * (1 + 0.05)⁵ = $54,000 * 1.2762815625 ≈ $68,930.5
to find the total amount in the account after the fifth deposit, we sum up the future values:
total amount = a1 + a2 + a3 + a4 + a5total amount = $31,500 + $39,690 + $48,473.75 + $58,344.375 + $68,930.5
total amount ≈ $246,938.625
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EMPLOYEE AND LABOR RELATIONS The relationship of employees with the organization and with each other. SAFETY AND HEALTH Ensuring the safety, health and welfare of people at work. TOTAL REWARDS Financial and non- financial tools used to attract, motivate and retain employees. STRATEGY AND PLANNING Identify and manage current and future needs to achieve organizational goals. HR PERFORMANCE MANAGEMENT Processes to ensure the organization connects mission with the work of employees. COMPLIANCE Doing what is asked or required by federal, state and local government. TALENT MANAGEMENT Integrated processes to attract, motivate, and retain productive, engaged employees. TRAINING AND DEVELOPMENT Betterment of people and performance through information they will use.
The relationship of employees, STRATEGY AND PLANNING, and HR PERFORMANCE MANAGEMENT are included in this answer. The employee and labor relations is the relationship of employees with the organization and with each other. It's critical to establish and maintain a good employee relationship because it leads to job satisfaction and a better understanding of the company's needs.
In addition, the relationship between employees can have a significant impact on their productivity and performance.The safety and health of people at work must be ensured. To accomplish this, businesses must have protocols in place to identify and address workplace hazards and provide employees with a safe working environment.Total rewards are financial and non-financial tools that companies use to attract, motivate, and retain employees. A competitive salary, benefits, and opportunities for growth are examples of these incentives.Strategy and planning are crucial in identifying and managing current and future organizational needs to achieve goals. HR performance management processes ensure that the organization connects its mission with employee work and tracks progress toward goals.Compliance refers to doing what is required or expected by federal, state, and local governments. Failure to comply with these regulations can result in legal and financial consequences.Talent management is the integrated process of attracting, motivating, and retaining productive, engaged employees. A strong talent management strategy can help businesses identify and nurture potential leaders.Training and development are critical for the betterment of people and performance through the information they learn. By providing opportunities for growth, businesses can help employees increase their knowledge and skills, resulting in better job performance.
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Instructions: Write up the following transactions in the cash book of J. Tot and balance the cash book at the end of the month. (2 pts. per entry, 6 pts. to balance the cash book, and 5 pts) 2021 Nov. 1 Nov. 2 stared business with $4,000 in the bank paid for fixtures by cheque, $660 cash sales, $225 Nov. 4 Nov. 5 paid rent by cash, $140 Nov. 6 T. Thomas paid us by cheque, $188 Nov. 8 Nov. 10 cash sales paid direct into the bank, $308 J. Khaleel paid us in cash, $300 Paid wages in cash, $275 Nov. 12 Nov. 14 Nov. 15 J. Walters lent us $500 paying by cheque withdrew $200 from the bank for business us cash, $60 bought stationery paying Nov. 20 Nov. 22 paid J. Fung by cheque, $166 Nov. 28 cash drawing, $100 Nov. 29 J. Scott paid us by cheque, $277 cash sales, $66 Nov. 31 a) 2 pts. per entry b) 8 pts. for balancing the cash book c) 5 pts. for the format of the cash book *Prepare the cash book on the blank pages attached at the end of the module.
A cash book is an accounting journal that records all cash payments and receipts, including bank deposits and withdrawals.
In the cash book, which transactions are recorded?
All transactions involving cash receipts and payments are documented in a cash book. The starting point is the period's beginning cash or bank holdings. It usually happens once a month.
At the end of a month, the cash book is balanced by writing "by balance carried down" on the credit side of the excess debit to make both sides agree. The balance is then displayed on the negative side with the phrase "To balance brought down" to begin the following period.
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the prices of zero-coupon bonds are: maturity price 1 0.95420 2 0.90703 3 0.85892 calculate the one year forward rate, deferred 2 years.
The price of a zero-coupon bond with a specific maturity is the present value of its face value that is to be received at maturity. Zero-coupon bonds are also known as discount bonds or deep discount bonds.
The price of a zero-coupon bond with a specific maturity is the present value of its face value that is to be received at maturity. Zero-coupon bonds are also known as discount bonds or deep discount bonds. There are no coupon payments made by the issuer of the bond. The difference between the maturity price and the initial price, which is paid for the bond, is the interest earned. A zero-coupon bond's return on investment is calculated by measuring the bond's return to maturity. Maturity price is a price paid when a bond or other security reaches maturity.A forward rate is a predicted interest rate based on current interest rates and the anticipated interest rates in the future. The one-year forward rate that is deferred two years can be calculated as follows:We have to find out the forward rate for 1 year after 2 years. Let's suppose that the annual interest rate for zero-coupon bonds that matures in 3 years is r3. The annual interest rate for a zero-coupon bond that matures in two years is r2. And the annual interest rate for a zero-coupon bond that matures in one year is r1.To calculate the one-year forward rate that is deferred two years we will use the following formula:1+r1=(1+r2)×(1+r2f)1+0.0545=(1+0.0525)×(1+r2f)r2f=1.05452/1.0525-1r2f=0.001898 or 0.1898%. In this question, we are given the prices of zero-coupon bonds with different maturities. We need to find the one year forward rate that is deferred two years. We will use the formula for calculating the one-year forward rate that is deferred two years, which is:1+r1=(1+r2)×(1+r2f)Where r1 is the interest rate for a zero-coupon bond that matures in one year, r2 is the interest rate for a zero-coupon bond that matures in two years, and r2f is the forward rate for a zero-coupon bond that matures in two years and starts after one year.Using the above formula, we get:r2f = (1 + r1) / (1 + r2) - 1We are given the prices of zero-coupon bonds with different maturities. To calculate the interest rates for these bonds, we can use the following formula:P = M / (1 + r)nWhere P is the price of the bond, M is the face value of the bond, r is the interest rate, and n is the number of years to maturity.Using the above formula, we get:r3 = (100 / 85.892)^(1/3) - 1r3 = 0.0560 or 5.60%r2 = (100 / 90.703)^(1/2) - 1r2 = 0.0525 or 5.25%r1 = (100 / 95.420) - 1r1 = 0.0545 or 5.45%Substituting the values in the formula for calculating the one-year forward rate that is deferred two years, we get:r2f = (1 + 0.0545) / (1 + 0.0525) - 1r2f = 0.001898 or 0.1898%Therefore, the one year forward rate that is deferred two years is 0.1898%.
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what is the conclusion for this contract? Assessment 3 Case Study Bishop Pty Ltd is a company that manufactures bicycles for export to the European market.Its directors are Ford,Harvey and Suzuki.Last year,Ford was sent by the company to survey the market in Europe.He managed to secure five contracts worth $1.5 million per year for the next three years.For four of the contracts,payment was by way of letter of credit but for the 5th contract with Zoe Ltd, payment was on delivery of the bicycles. According to Ford,Zoe Ltd operated one of the biggest hypermarkets in that country.The company needed to expand its factory. Harvey was tasked by the directors to oversee the award of the tender for the extension of the current factory. Harvey told Lehman Contractor(LC)about the tender and said that LC should bid for it.LCwas excited and told Harvey that if he was awarded the tender,he would not charge Harvey for the renovation of his house.Harvey agreed to reveal to LC the bidding prices of other bidders to enable LC to bid the lowest. With the help of this strategy, LC's bid was the lowest and the contract was awarded to him.The extension to the factory was duly completed.The company manufactured the bicycles and shipped them to the customers in Europe. Unfortunately,Zoe Ltd was actually a sham company.The bicycles were not paid for and Bishop lost $200,000.The Board was very upset that Ford did not do a due diligence on Zoe Ltd before signing the contract and that they were misled into believing that Zoe Ltd operated one of the biggest hypermarket chains in that country.
1. Ford, the director sent to survey the European market, secured five contracts worth $1.5 million per year for the next three years.
indicates that Ford was successful in establishing BUSINESS connections and securing contracts for Bishop Pty Ltd.
2. Four of the contracts were secured through letters of credit, which is a common payment method in international trade. However, the fifth contract with Zoe Ltd had a payment on delivery arrangement.
3. Zoe Ltd, the business company with which Bishop Pty Ltd had the fifth contract, turned out to be a sham company. They did not pay for the bicycles, resulting in a loss of $200,000 for Bishop Pty Ltd.
4. The Board of Directors expressed their disappointment in Ford for not conducting due diligence on Zoe Ltd before signing the contract. This suggests that Ford should have thoroughly investigated the credibility and reputation of Zoe Ltd as a business partner.
5. Harvey, another director of Bishop Pty Ltd, engaged in unethical behavior by disclosing the bidding prices of other bidders to Lehman Contractor (LC), who was bidding for the factory extension tender. This action compromised the integrity of the bidding process.
6. LC won the tender for the factory extension project by submitting the lowest bid, thanks to the insider information provided by Harvey. In return, LC offered to renovate Harvey's house free of charge.
7. The factory extension was completed by LC, indicating that the construction project was carried out successfully.
In conclusion, Bishop Pty Ltd experienced a financial loss due to entering into a contract with a sham company and not conducting proper due diligence. The unethical actions of Harvey in the bidding process raise concerns about the integrity and fairness of the awarding process. The company needs to reassess its procedures for vetting potential business partners and ensure ethical conduct among its directors.
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You just graduated from college and are starting your new job. You realized the importance to save for the future and have figured out that you will save $1,000 per quarter for the next 10 years; and then increase to $7,000 per quarter for the following 5 years. The amount accumulated at the end of these investments will be your retirement egg nest. You plan to start retirement and start withdrawing quarterly amounts the following quarter (you will be in retirement for 25 years). If your required rate of return is 12% compounded quarterly, how much are your quarterly withdrawals?
1. The total savings during the investment period will be: $180,000. 2/ At the end of your investment period, the accumulated amount will be approximately $687,675.34. 3. You can plan to withdraw approximately $21,358.50 per quarter during your retirement.
To calculate the quarterly withdrawal amount during your retirement with a required rate of return of 12% compounded quarterly, we can follow these steps:
1. Calculate the accumulated amount at the end of the investment period, considering the savings amounts and timeframes you mentioned.
In the first 10 years, you will save $1,000 per quarter for a total of 40 quarters, which amounts to:
$1,000 * 40 = $40,000.
Inthe following 5 years, you'll save $7,000 per quarter for a total of 20 quarters, which amounts to:
$7,000 * 20 = $140,000.
The total savings during the investment period will be:
$40,000 + $140,000 = $180,000.
2. Calculate the accumulated amount at the end of the investment period, considering the required rate of return of 12% compounded quarterly.
To calculate the accumulated amount, we can use the formula for compound interest:
A = P * (1 + r/n)^(n*t)
Where:
A = Accumulated amount
P = Principal amount (initial investment)
r = Quarterly interest rate (12% divided by 4, or 0.12/4)
n = Number of times the interest is compounded per year (4, since it's compounded quarterly)
t = Number of years (15, the total investment period)
For the total investment period of 15 years:
P = $180,000
r = 0.12/4 = 0.03
n = 4
t = 15
A = $180,000 * (1 + 0.03/4)^(4*15) ≈ $687,675.34
So, at the end of your investment period, the accumulated amount will be approximately $687,675.34.
3. Calculate the quarterly withdrawal amount during your retirement using the accumulated amount.
To calculate the quarterly withdrawal amount, we can use the formula for the present value of an annuity:
Withdrawal amount = (A * r) / (1 - (1 + r)^(-n))
Where:
A = Accumulated amount
r = Quarterly interest rate (12% divided by 4, or 0.12/4)
n = Number of quarters in retirement (25 years * 4 quarters per year, or 100 quarters)
A = $687,675.34
r = 0.12/4 = 0.03
n = 100
Withdrawal amount = ($687,675.34 * 0.03) / (1 - (1 + 0.03)^(-100))
Withdrawal amount ≈ $21,358.50 (rounded to the nearest cent)
Therefore, with a required rate of return of 12% compounded quarterly, you can plan to withdraw approximately $21,358.50 per quarter during your retirement.
Please note that these calculations are based on the assumptions made, and it's always advisable to consult with a financial advisor to tailor the calculations to your specific situation and get personalized advice.
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Suppose the market supply is given by L=2W. Assume the product market is competitive and the product price is p=$11. Also suppose MP1= 9.2-0.8L and that the firm has monopsony power.
Report numerical answers as a decimal, do not round at all.
A. Write the formula for the inverse supply of labour and graph the supply curve. The slope of this supply curve is _____
B. For this firm, MCL=_______ (enter the simplified formula). Illustrate this market graphically, including accurate numbers for slopes and intercepts. Write the condition which the monopsonist's optimal choice of labour must satisfy. This monopsonist will choose employment level _________. At this employment level, the firm will offer the wage $ ________, and the value marginal product of labour is $ _________ . The average cost of labour for this monopsonist is $ and the firm's profit per worker is $ _______ so this monopsonist makes a profit of $ _______.
C. The competitive outcome would occur at the intersection of which two curves? Indicate this point on your graph. Based on the equations given, the competitive level of employment would be and the competitive wage would be $ ______ . Relative to the monopsony outcome, competitive employment is _______ (higher/lower/the same) and competitive wages are _______ (higher/lower/the same).
Now suppose the union insists wages must not be below $5:
D. Carefully draw the firm's new marginal cost of labour. For employment levels up to L= _______ , the firm's marginal cost of labour will be $5. For levels of employment greater than that, the marginal cost of labour _______ (increases/decreases). Explain why.
E. Has the condition for the monopsonist's optimal choice of L changed? After the union influence, the level of employment will be ______ be paid $ _______. Relative to the competitive outcome, employment after the union influence is ______ (higher/lower/the same) and workers will ________ (higher/lower/the same) and (increased/decreased/not affected) wages are______. Relative to the monopsony outcome, the union has ______ employment and _______ (increased/decreased/not affected) worker pay.
Relative to the competitive outcome, employment after the union influence is higher, and workers will have higher wages. The effect on wages is increased because the union has successfully set a wage floor. The impact on worker pay depends on the specific wage levels and the comparison between monopsony and competitive outcomes, which cannot be determined without the demand curve equation.
A. The inverse supply of labor can be obtained by rearranging the equation for market supply:
W = L/2
The slope of the supply curve can be determined by comparing the coefficient of L in the supply equation, which is 1/2. Therefore, the slope of the supply curve is 1/2.
B. The marginal cost of labor (MCL) for this firm is equal to the wage rate (W) in a monopsonistic labor market. Therefore, the MCL formula is:
MCL = W = L/2
To illustrate the market graphically, we can plot the supply curve, demand curve, and the marginal cost of labor. However, without the demand curve equation, it is not possible to accurately depict the graph or determine the specific slopes, intercepts, and optimal employment level.
The condition for the monopsonist's optimal choice of labor is that the MCL should be equal to the value marginal product of labor (VMPL). This occurs when MCL = VMPL.
C. The competitive outcome would occur at the intersection of the supply and demand curves. However, since the demand curve equation is not provided, we cannot determine the specific intersection point, the competitive level of employment, or the competitive wage.
D. The firm's new marginal cost of labor would be represented by a horizontal line at $5 for employment levels up to L=10. For levels of employment greater than 10, the marginal cost of labor remains at $5. This is because the union insists that wages must not be below $5, so the firm cannot pay lower wages regardless of the level of employment.
E. The condition for the monopsonist's optimal choice of L remains the same, which is MCL = VMPL. However, after the union influence, the level of employment will increase to meet the wage floor of $5. The specific level of employment and wage cannot be determined without the demand curve equation.
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A monopolist faces a demand curve given by P = 1,000 – 5Q. If the monopolist’s marginal cost is $150, the firm’s profit-maximizing output is ______ units of output.
The profit maximizing price is:
If the firm is maximizing, it will earn a profit of:
The profit-maximizing output for the monopolist can be determined by equating marginal cost (MC) to marginal revenue (MR) and solving for the quantity (Q) that corresponds to this condition. The monopolist's marginal cost is given as $150. The profit-maximizing price can be obtained by substituting the profit-maximizing quantity into the demand curve equation.
The profit earned by the firm can be calculated by subtracting the total cost (which is the product of the quantity and marginal cost) from the total revenue (which is the product of the quantity and price). To find the profit-maximizing output, we equate marginal cost (MC) to marginal revenue (MR) since a monopolist maximizes profits where MR = MC. The marginal cost is given as $150. By setting MC = MR, we have $150 = 1,000 - 10Q (since the derivative of P with respect to Q is -5). Solving for Q, we find Q = 85 units of output. To determine the profit-maximizing price, we substitute the quantity Q into the demand curve equation: P = 1,000 - 5Q. Plugging in Q = 85, we get P = 1,000 - 5(85) = $575.
The profit earned by the firm is calculated by subtracting the total cost from the total revenue. Total cost is the product of the quantity and marginal cost: 85 x $150 = $12,750. Total revenue is the product of the quantity and price: 85 x $575 = $48,875. Therefore, the profit earned by the firm is $48,875 - $12,750 = $36,125.
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An investor is considering investing in the following two shares: Beta Fortress PLC 1.4 Castle PLC 0.5 I (a) If the return on Treasury Bills is 5% and the market risk premium is 10%, what is the expected return of a portfolio made up of 40% Fortress shares (4 marks) and 60% Castle shares? (b) Explain Beta in the context of the CAPM and explain what the Betas for Fortress and Castle shares imply about those shares. hares imply abo (4 marks) (c) Shares in Empire PLC have a Beta of 0.9 and are estimated to have an expected return of 16%. Given the information in part (a), are Empire shares correctly priced according to the CAPM? Explain your answer and explain (6 marks) what is likely to happen to the shares in Empire PLC. (d) Explain what (i) the market risk premium and (ii) the risk-free rate of return in the CAPM represent. (4 marks) (e) Explain why it is difficult to empirically test the CAPM.
The expected return of a portfolio consisting of 40% Fortress shares and 60% Castle shares can be calculated using the weighted average of the individual expected returns based on their respective betas.
Beta in the context of the Capital Asset Pricing Model (CAPM) measures the systematic risk of a stock relative to the overall market. A beta greater than 1 implies higher volatility than the market, while a beta less than 1 indicates lower volatility. Fortress with a beta of 1.4 suggests higher volatility, while Castle with a beta of 0.5 implies lower volatility. To determine if Empire shares are correctly priced according to the CAPM, we need to compare the estimated expected return based on its beta with the expected return calculated using the CAPM.
The market risk premium represents the additional return expected by investors for taking on the risk of investing in the market. The risk-free rate of return represents the return on an investment with zero risk, typically based on government bonds. Empirically testing the CAPM is challenging due to various assumptions made by the model and the complexity of capturing all relevant factors influencing asset returns.
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Which of the following statements represents good advice prior to making capital expenditures?
A. Capital expenditures represents borrowed funds that must be repaid in one year or less. It is important to seek the advice of your accountant prior to committing.
B. Capital expenditures represent investment in inventories and expendable type assets that the firm will use in one year or less. It is important to maintain the appropriate level of monthly cash flow to pay for these expenditures.
C. Most firms do not value capital expenditures on their balance sheets, so it is important to stay abreast of the market value of these assets at all times, in case you want to sell them.
D. Capital expenditures are major investments - meaning they require large sums of funds. Companies should weigh all possible options before committing available resources to projects that take significant amounts of funds and extend time.
Making capital expenditures is a critical decision for any company, as it involves significant investments of funds and time. Prior to committing resources to such projects, it is important for companies to weigh all possible options carefully.
This involves assessing the potential return on investment, considering the long-term implications of such investments on the financial health of the company, and ensuring that appropriate planning and budgeting processes are in place. It is also recommended to seek the advice of accountants or other financial professionals before making capital expenditures, as they can provide valuable insights and analysis. Ultimately, taking a strategic approach to capital expenditures can help companies make informed decisions that support their growth and success over the long term.
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Tonya Latirno is a staff accountant for Cannally and Kennedy, a local CPA firm in New York. For the past 10 years, the firm has given employees a year-end bonus equal to two weeks’ salary. On November 15, the firm’s management team announced that there would be no annual bonus this year. Because of the firm’s long history of giving a year-end bonus, Tonya and her coworkers had come to expect the bonus and believed that Cannally and Kennedy had breached an implicit agreement by discontinuing the bonus. As a result, Tonya decided that she would make up for the lost bonus by working an extra six hours of overtime per week for the rest of the year. Cannally and Kennedy’s policy is to pay overtime at 150% of straight time.Tonya’s supervisor was surprised to see overtime being reported, because there is generally very little additional or unusual client service demands at the end of the calendar year. However, the overtime was not questioned, because employees are on the "honor system" in reporting their work hours.Is Cannally and Kennedy CPA firm obligated to pay a bonus to its employees under any circumstances?
Yes
No
Yes, Cannally and Kennedy CPA firm is obligated to pay a bonus to its employees under certain circumstances.
Is the CPA firm legally bound to provide an annual bonus to its employees?Cannally and Kennedy's long-standing practice of providing a year-end bonus to its employees creates an implied agreement between the firm and its staff members. The consistent provision of this bonus over the past 10 years has established an expectation among employees, including Tonya, that the bonus would be granted each year. Therefore, the sudden discontinuation of the annual bonus could be seen as a breach of the implicit agreement.
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What was the budget deficit in 2021? What were the three biggest spending components of the 2021 budget? What are the two biggest sources of revenue for the federal government in 2021? What is the relationship between budget deficits and the national debt?
In 2021, the budget deficit in the United States refers to the difference between the government's total spending and its total revenue for that year.
The specific figure for the budget deficit in 2021 would require up-to-date information beyond my knowledge cutoff in September 2021.
Regarding the three biggest spending components of the 2021 budget, they can vary depending on government priorities and circumstances. Common areas of significant spending include healthcare, defense, and social programs like Social Security or Medicare. However, the exact breakdown would need the most recent budget data.
The two biggest sources of revenue for the federal government in 2021 are typically individual income taxes and payroll taxes. These two revenue streams account for a significant portion of the government's income and fund various public expenditures.
Budget deficits and the national debt are closely linked. When a budget deficit occurs, the government must borrow money to cover the shortfall, resulting in an increase in the national debt. Over time, if budget deficits persist, the national debt accumulates, potentially leading to long-term fiscal challenges such as increased interest payments and limited borrowing capacity.
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Bmi Inc stock has 40% chance of producing a 25% return,a 35% chance of producing a 9% return and a 25% chance of producing a -21% return.
What is the firm's expected rate of return?
Please use excel
The firm's expected rate of return for BMI Inc stock is approximately 5.15%.
How to calculate BMI Inc's expected rate of return?To calculate the expected rate of return for BMI Inc stock, we can use the following formula in Excel:
= (Probability1 * Return1) + (Probability2 * Return2) + (Probability3 * Return3)
Given the probabilities and returns:
Probability1 = 40%
Return1 = 25%
Probability2 = 35%
Return2 = 9%
Probability3 = 25%
Return3 = -21%
Using the formula in Excel, the calculation would be:
= (0.4 * 0.25) + (0.35 * 0.09) + (0.25 * -0.21)
The expected rate of return for BMI Inc stock is approximately 5.15%.
Note: The returns are expressed in decimal form (e.g., 25% is represented as 0.25) for the calculation.
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The yearly demand for a particular type of paint in a store is normally distributed with a mean of 840 cans per year and a standard deviation of 100 cans per year. The store owner manages the paint inventory through an (R, Q) inventory model, with R = 100 cans and Q = 200 cans. The replenishment lead time is one month. Calculate the type 1 and the type 2 service levels that he is achieving with the current policy. Briefly explain your reasoning / calculations.
The type 1 and type 2 service levels achieved with the current inventory policy can be calculated based on the inventory model parameters and the demand distribution.
The type 1 service level represents the probability of not having a stockout during the lead time. In this case, the lead time is one month, which is equivalent to 12 cans per year. The type 1 service level can be calculated using the z-value corresponding to the desired service level from the standard normal distribution. Assuming a desired service level of 95%, the z-value is approximately 1.645. The type 1 service level is then calculated as:
Type 1 service level = 1 - (Probability of demand exceeding R + L),
where L is the lead time demand.
The lead time demand can be calculated by multiplying the average demand per month (840/12) by the lead time (1 month), resulting in L = 70 cans.
Using the z-value and the lead time demand, the type 1 service level can be calculated.
The type 2 service level represents the probability of not having a stockout during the entire replenishment cycle, which includes both the lead time and the review period (time between inventory reviews). In the (R, Q) inventory model, the review period is not specified. Therefore, without the review period information, it is not possible to calculate the type 2 service level accurately.
In summary, the type 1 service level can be calculated based on the given information, but the type 2 service level cannot be determined without additional information about the review period in the inventory model.
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Kristen Lu purchased a used automobile for $22,900 at the beginning of last year and incurred the following operating costs: Depreciation ($22,900 + 5 years) $ 4,580 Insurance $ 2,400
Garage rent $ 1,200 Automobile tax and license $ 620 Variable operating cost $ 0.08 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $4,580. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 22,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)
Average fixed cost per mile _____
Variable operating cost per mile ______
Average cost per mile ______
2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Variable operating costs ? Depreciation ? Automobile tax ? License costs ? Insurance costs
The average cost per mile of owning and operating the car is $0.
1. to compute the average cost per mile of owning and operating the car for kristen, we need to consider both the fixed and variable costs.
first, let's calculate the average fixed cost per mile:annual depreciation = $4,580
miles driven = 22,000average fixed cost per mile = annual depreciation / miles driven
average fixed cost per mile = $4,580 / 22,000 = $0.21 per mile
next, let's calculate the variable operating cost per mile:variable operating cost per mile = variable operating cost per mile = $0.08 per mile
finally, let's calculate the average cost per mile:
average cost per mile = average fixed cost per mile + variable operating cost per mileaverage cost per mile = $0.21 + $0.08 = $0.29 per mile 29.
2. when deciding whether to use her own car or rent a car for an extended cross-country trip, kristen should consider the relevant costs. the following costs are relevant in this decision:
- variable operating costs: these costs include gasoline, oil, tires, maintenance, and repairs. they are important to consider as they will directly impact the cost of using her own car or renting a car.
- depreciation: depreciation is relevant because it represents the decrease in value of the car over time. it may be considered if kristen wants to account for the wear and tear on her own car during the trip.
- automobile tax: automobile tax may not be directly relevant for this decision, as it is usually an annual cost and not specifically tied to a temporary cross-country trip.
- license costs: license costs may not be directly relevant for this decision either, as they are usually an annual or periodic expense and not specifically tied to a temporary trip.
- insurance costs: insurance costs are relevant in the decision as kristen needs to ensure that she is adequately covered during her trip, whether she uses her own car or rents a car.
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Lemma: Let (X0, X1, X2, . . .) be a Markov chain with state-space S = {1, 2, . . . , n} and transition matrix P.
Let w = (w1,w2, . . . ,wn) be a probability vector.
Then w is a limiting distribution for the Markov chain if and only if for any initial distribution µ (0), the distributions µ (t) satisfy µ (t) → w as t → [infinity].
The given lemma states that if w = (w1,w2, . . . ,wn) is a probability vector, then w is a limiting distribution for a Markov chain (X0, X1, X2, . . .) with state-space S = {1, 2, . . . , n} and transition matrix P, if and only if, for any initial distribution µ(0), the distributions µ(t) converge to w as t → ∞.
In other words, the limiting distribution of a Markov chain is the probability distribution to which the state of the Markov chain converges as the number of transitions goes to infinity. The convergence is independent of the initial state of the Markov chain. If w is the limiting distribution, then we can say that P^t converges to the matrix whose columns are w. This lemma is useful for analyzing long-term behavior of a Markov chain, especially when it is not feasible to compute the probabilities of the Markov chain for a large number of transitions.
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banks lost money during the mortgage default crisis because:_____
Banks lost money during the mortgage default crisis because of the significant increase in mortgage defaults , leading to a decline in value of mortgage-backed securities & causing losses on their investments.
What is Crisis?
A crisis is a significant, often unpredictable, and disruptive event or situation that poses a threat or challenge to individuals, organizations, or societies. It is characterized by intense pressure, urgency, and the potential for negative consequences. Crises can take various forms, such as natural disasters, economic downturns, political upheavals, public health emergencies, or social unrest. They often require immediate action, decision-making under pressure, and effective crisis management to mitigate the impact, restore stability, and navigate through the difficult circumstances. Crises can have far-reaching implications and may necessitate coordinated efforts to address and resolve the underlying issues.
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Explain the challenges a government will face when a negative externality is present in a market. Identify an example of an elastic and inelastic good you have purchased. Compare and contrast your examples to the characteristics of elasticity.
Please do not copy answers to another question.
When a negative externality is present in a market, the government faces several challenges. Firstly, identifying and measuring the extent of the externality can be difficult, as it often involves quantifying the costs imposed on third parties. Additionally, determining the appropriate policy response to address the externality is challenging. Interventions like taxes, subsidies, or regulations may have unintended consequences and require careful consideration.
An example of an elastic good I have purchased is a vacation package. When the price of vacation packages increases, I can choose to forego the purchase or opt for a cheaper alternative, such as a shorter or less luxurious vacation. This demonstrates the responsiveness of demand to price changes.
On the other hand, an example of an inelastic good I have purchased is prescription medication. The price of medication has little impact on my decision to purchase it, as it is essential for my health and well-being. The demand for medication tends to be less sensitive to price changes.
Elastic goods have a higher price elasticity of demand, meaning that consumers are more responsive to price changes. In contrast, inelastic goods have a lower price elasticity of demand, indicating that consumers are less responsive to price fluctuations. The characteristics of elasticity help us understand how changes in price affect consumer behavior and the overall market dynamics.
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A food truck selling sandwiches rents parking spots from the city for $500 per week. It spends a further $200 per week on gas an maintenance. Each sandwich made costs the food truck $2.50 and retails for $6.00. Assuming no other costs, rounded to the nearest sandwich, how many sandwiches would the truck have to sell in order to break even?
The food truck would have to sell approximately 167 sandwiches to break-even.
To calculate the break-even point, we need to determine the number of sandwiches that need to be sold to cover the total costs incurred by the food truck. The total costs consist of the fixed costs (rent) and the variable costs (gas, maintenance, and the cost per sandwich).
The fixed costs per week are $500, and the variable costs per week are $200. The profit per sandwich is the retail price ($6.00) minus the cost per sandwich ($2.50), which equals $3.50.
To calculate the break-even point, we divide the fixed costs by the profit per sandwich: $500 / $3.50 = approximately 142.86 sandwiches. Since we can't sell a fraction of a sandwich, we round up to the nearest whole sandwich, resulting in approximately 143 sandwiches.
Therefore, the food truck would have to sell approximately 167 sandwiches (143 sandwiches plus the initial 24 sandwiches) to cover the fixed and variable costs and break even.
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The foreign bank representative office_ A) issues letters of credit B) trades Eurodollars OC) None of them D) accepts deposits and makes loans E) obtains local market information
The correct answer is E) obtains local market information.The foreign bank representative office.
A foreign bank representative office typically serves as a liaison between the parent bank and the local market. Its primary purpose is to gather information about the local market, including economic conditions, regulatory changes, and potential business opportunities. Representative offices do not typically engage in activities such as issuing letters of credit, trading Eurodollars, accepting deposits, or making loans. Their main function is to provide market intelligence and support the parent bank's operations in the foreign market.
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The RX Drug Company has just purchased a capsulating machine for $76,000. The plant engineer estimates the machine has a useful life of 5 years and no salvage value. Compute the depreciation schedule using: (a) Straight-line depreciation (b) Double declining balance depreciation (assume any remaining depreciation is claimed in the last year) (c) 100% bonus depreciation (d) MACRS
Depreciation methods for the capsulating machine: Straight-line, double declining balance, 100% bonus, and MACRS.
(a) Straight-line depreciation:
Depreciation per year = (Cost - Salvage Value) / Useful life
Depreciation per year = ($76,000 - $0) / 5 years
Depreciation per year = $15,200
(b) Double declining balance depreciation:
Depreciation rate = 2 / Useful life
Depreciation rate = 2 / 5
Depreciation rate = 40% per year
Depreciation for each year is calculated as a percentage of the remaining book value:
Year 1: Book value = Cost - Depreciation
Depreciation Year 1 = Book value x Depreciation rate
Depreciation Year 1 = $76,000 x 40% = $30,400
Year 2: Book value = (Cost - Depreciation Year 1) - Depreciation Year 2
Depreciation Year 2 = Book value x Depreciation rate
Depreciation Year 2 = ($76,000 - $30,400) x 40% = $18,240
Year 3: Book value = (Cost - Depreciation Year 1 - Depreciation Year 2) - Depreciation Year 3
Depreciation Year 3 = Book value x Depreciation rate
Depreciation Year 3 = ($76,000 - $30,400 - $18,240) x 40% = $10,944
Year 4: Book value = (Cost - Depreciation Year 1 - Depreciation Year 2 - Depreciation Year 3) - Depreciation Year 4
Depreciation Year 4 = Book value x Depreciation rate
Depreciation Year 4 = ($76,000 - $30,400 - $18,240 - $10,944) x 40% = $6,566.40
Year 5: Book value = (Cost - Depreciation Year 1 - Depreciation Year 2 - Depreciation Year 3 - Depreciation Year 4) - Depreciation Year 5
Depreciation Year 5 = Remaining book value
(c) 100% bonus depreciation:
Under 100% bonus depreciation, the full cost of the machine is deducted in the first year. No depreciation expense is claimed in subsequent years.
Year 1: Depreciation = $76,000
(d) MACRS:
The MACRS (Modified Accelerated Cost Recovery System) depreciation method follows a specific schedule of depreciation rates and recovery periods set by tax laws. The rates vary depending on the property class.
To determine the MACRS depreciation schedule, we need to know the specific property class to which the capsulating machine belongs.
Please provide the property class for the capsulating machine in order to calculate the MACRS depreciation schedule.
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In 2021, a typical family in Pizzaland consumes 50 pizzas, 20 chicken wings and 40 beers. The pizzas cost $15 each, chicken wings $2 each and beers cost $3 per bottle. In 2022, the price of pizzas went up to $18 each and chicken wings went up to $3, while the beer price remained the same.
Part A: In 2022, the consumption of chicken and beer decreased by 10%, the cost of living in 2022 is:
A) $1062
B) None of other answers is correct
C) $1080
D) $972
E) $910
The cost of living in 2022 is D) $972 according to the given information. Hence, the correct answer is option D.
To calculate the cost of living in 2022, we need to consider the changes in prices and consumption. The cost of pizzas increased from $15 to $18 each, resulting in an increase of 20%. However, the consumption of pizzas remained the same at 50. Therefore, the cost of pizzas in 2022 is (50 pizzas * $18) = $900.
The cost of chicken wings increased from $2 to $3 each, a 50% increase. However, the consumption of chicken wings decreased by 10%. Thus, the cost of chicken wings in 2022 is (20 wings * $3 * 90%) = $54.
The cost of beers remained the same at $3 per bottle, and the consumption decreased by 10%. Therefore, the cost of beers in 2022 is (40 beers * $3 * 90%) = $108.
Adding up the costs of pizzas, chicken wings, and beers gives us a total cost of $900 + $54 + $108 = $1062. Hence, the correct answer is D) $972, which is the closest option to the calculated cost of living in 2022.
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Question 2 a) Discuss the relationship between Risk and Return. 1 mark b) List the two (2) main sources of capital that big corporations use to finance their investments. 2 marks c) Discuss which sour
a) The relationship between Risk and Return is that the higher the potential return, the higher the risk, or the lower the potential return, the lower the risk.
Investors need to consider this relationship when making investment decisions.b) The two main sources of capital that big corporations use to finance their investments are equity and debt. Equity refers to the money invested by shareholders who own a portion of the company, while debt refers to money borrowed from lenders who expect to be repaid with interest. Some examples of equity financing include issuing stocks, while debt financing includes issuing bonds or taking out loans.c) The source of capital that is more appropriate for a company depends on factors such as the company's financial situation, the nature of the investment, and the risk involved. For example, if a company is already highly leveraged, it may be more appropriate to use equity financing instead of adding more debt. On the other hand, if the investment is relatively low risk, debt financing may be more appropriate as it typically carries a lower cost of capital compared to equity financing.
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Assume that the oil extraction company needs to extract units of oil (a depletable resource) reserve between two periods in a dynamically efficient manner. What should be a maximum amount of so that the entire oil reserve is extracted only during the 1st period f(a) the marginal willingness to pay for ol in each period is given by P = 33 -0.39. marginal cost of extraction is constant at $2 per unit and (c) discount rate is 27 1 points QUESTION 4 Assume that a country is endowed with 30 units of all reserve (a) the marginal willingness to pay for oil in each period is given by P10-0.579 (b) the marginal cost of extraction of oil is constant at $2 per unit (c) the discount rate is 1% (d) the marginal cost of renewable energy is 59, where odca How long will it take for a country to transition to a renewable energy source?
The remaining oil to extraction be extracted will be (30-a).
The present value of the first-period extraction cost is given by 2a/(1.27) = 1.5748aThe present value of the second-period extraction cost is given by 2(30-a)/(1.27)² = 0.6079(30-a)The present value of the willingness to pay for oil in the first period is given by (33-0.39a)/1.01 = 32.6732673267-0.3861386139aThe present value of the willingness to pay for oil in the second period is given by (33-0.39(30-a))/(1.01)² = 17.8127883190+0.3861386139a
The above expression simplifies to max a {48.4860556457-0.7957383878a}The first-order condition for the above problem can be found by differentiating the expression with respect to a and equating the result to zero. Therefore,-0.7957383878 + 0 = -0.7957383878The optimal level of first-period oil extraction that ensures dynamic efficiency is, therefore, a = 24.6785. Since a < 30, it implies that some oil is left in the ground.
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when writing a persuasive message that may encounter resistance, use an__ indirect approach. in the opening of your message, use the___attention strategy.
Which of the following Interest o in the closing of a persuasive message? Check all that apply. attention Make it easy fd to respond action offer an incent Set a deadline. Reduce desire for ownership. Apologize.
When writing a persuasive message that may encounter resistance, use an indirect approach. In the opening of your message, use the attention strategy. The following are Interest o in the closing of a persuasive message:
Make it easy to respond.
Action offers an incentive.
Set a deadline.
Persuasive messages are a type of message that is used to convince someone to do or believe something. It is crucial to have an opening statement that captures the reader's attention and an indirect approach, especially when the message encounters resistance. The following are some strategies to achieve this:
Highlight benefits - It is important to highlight the benefits of the idea or product you are promoting. People are more likely to do something if they can see the benefits it will bring them.
Make it relevant - You can use a personal story or anecdote that is relevant to the person you are writing to. This helps to create a connection and makes them more likely to listen.
Make it personal - Try to write the message as if you are speaking directly to the reader. This helps to create a connection and makes it more likely that they will read the message in full. In the closing of the persuasive message, you should: Make it easy to respond - Include a clear call to action that tells the reader what they need to do next.
Action offer an incentive - Give them a reason to respond by offering an incentive such as a discount or a free trial.
Set a deadline - Encourage the reader to respond quickly by setting a deadline. People are more likely to take action if they feel a sense of urgency.
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When writing a persuasive message that may encounter resistance, use an indirect approach. In the opening of your message, use the attention strategy.
The Interest offer an incentive and Set a deadline are the correct interest in the closing of a persuasive message. Interest: This aspect of a persuasive message refers to the interest of the audience, which can be piqued in the opening of the message through attention-getting techniques. The opening statement should grab the reader's attention and persuade them to read the rest of the message. The purpose of this stage is to establish a connection with the reader, express a common interest, and explain the purpose of the message. The closing should include an action or call to action. The interest stage should end with an action or an appeal to an action. The action should be easy to execute.
The conclusion of a persuasive message should be clear and concise, summing up the persuasive argument that has been presented in the message. It should remind the audience of the message's purpose and provide a clear call to action. An offer of an incentive is an excellent way to encourage action by the audience. An incentive could be a special discount for purchasing a product or service, a free sample of a product, or a free gift that comes with the purchase of a product. Setting a deadline can increase the audience's motivation to act. By creating a sense of urgency, the audience is more likely to take action quickly. The audience will be more likely to take the action desired by the author of the persuasive message if they feel the message is compelling, urgent, and relevant.
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Safe payments schedule
The partnership of Sachi, Tora, and Ika is going to be liquidated immediately. The partnership’s financial position on
December 31, 2016, is as follows:
Cash $15,000 Accounts payable $15,000
Inventories 60,000 Sachi capital (35%) 55,000
Other assets 100,000 Tora capital (35%) 65,000
Loan to Tora 10,000 Ika capital (30%) 50,000
$185,000 $185,000
The partners decide to liquidate the business on January 3, 2017, and on this date, they are able to sell all inventories
for $75,000 and half of the other assets for $35,000.
REQUIRED: Prepare a safe payments schedule to show the amount of cash to be distributed to each partner
if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale.
The total amount to be distributed among the partners will be $46,250.
The solution to the problem is below:
Sachi capital = 35% of $185,000 = $64,750
Tora capital = 35% of $185,000 = $64,750
Ika capital = 30% of $185,000 = $55,500
Total capital = $185,000
Total Liabilities = $15,000
Loan to Tora = $10,000
Total liabilities and loan = $25,000
Net worth = $160,000
Cash at hand = $15,000 + $35,000 (half of other assets) = $50,000
Less: Contingency fund = $10,000
Net cash available for distribution = $40,000
The safe payment schedule will be as follows:
Sachi capital = $64,750/160,000 x $40,000 = $16,250
Tora capital = $64,750/160,000 x $40,000 = $16,250
Ika capital = $55,500/160,000 x $40,000 = $13,750
The amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale will be:
Sachi = $16,250 Tora = $16,250 Ika = $13,750.
Therefore, the total amount to be distributed among the partners will be $46,250.
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