Managers should not rely on absorption costing when actual sales are less than estimated sales. In this situation, absorption costing can lead to overpricing of products and ultimately result in lower profits.
The fact that absorption costing assumes that fixed overhead costs are directly related to the volume of production, is not always the case. Therefore, when actual sales are less than estimated sales, fixed overhead costs are not fully absorbed, leading to overpricing of products.
In such a scenario, managers may want to consider using variable costing instead, which only includes variable costs in the calculation of product costs and can provide a more accurate representation of the cost of production.
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The University of Michigan studies explored how leadership functioned in
A) Organizations
B) Follower interactions
C) Dyadic relationships
D) Small groups
E) Political environments
Answer: (A) Organizations
The University of Michigan studies primarily explored how leadership functioned in organizations, with a focus on understanding how leaders impacted employee productivity, job satisfaction, and overall organizational performance.
It investigated the behaviors, characteristics, and effectiveness of leaders within organizational settings. The research aimed to understand the relationship between leadership and various factors that influence the performance and success of organizations.
Leadership Models- A series of studies on leadership styles were done in Michigan University, starting in the 1950s. Under the general direction of Rensis Likert, the focus of the studies was to determine the various principles and methods of leadership that led to employee productivity and job satisfaction. Two types of leadership behaviors were recognized:
Employee Orientation (stress on human-relations aspect, employees are viewed as human beings with personal needs, wants and desires)Production Orientation (stress on the technical and production aspects of the job, employees are viewed as the channel of getting the work done).Based on above two behaviors, studies found out that, Leaders with an employee orientation showed genuine concern for interpersonal relations. Those with a production orientation focused on the task or technical aspects of the job.
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Q1.Assume that you have attended an interview for the post of Accountant in Sohar Aluminum Company S.A.O.C. The first round of the interview is written test and the following questions has been asked in the test. Being an interviewee how will you answer the question? What did you understand about conceptual frame work for Accounting? What is the purpose of conceptual frame work? Write overview and History of conceptual framework for Accounting. (7 marks) Q2. Download the statement of position and statement of financial performance of any company and identify the values of flowing elements from the downloaded statement for the vears
Q1. As an interviewee, I would answer the question about the conceptual framework for accounting by stating that it is a set of principles, concepts, and guidelines that provide a framework for the preparation and presentation of financial statements.
The purpose of the conceptual framework is to ensure that financial statements are relevant, reliable, comparable, and understandable to users. Regarding the overview and history of the conceptual framework for accounting, I would explain that it was first developed by the International Accounting Standards Board (IASB) in 1989 and has since undergone several revisions. The framework sets out the objectives of financial reporting. Q2. Unfortunately, as an AI language model, I cannot download statements or identify specific values from them. However, I can explain that the statement of financial position (also known as the balance sheet) reports a company's assets, liabilities, and equity at a specific point in time.
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A stock currently sells for 50 and can rise by 6 or fall by 4for each of the next two periods. The risk free rate of interest is0 per period. The value of a call option with strike price of 48is
The value of a call option with a strike price of 48 is approximately 1.33.
Based on the information provided, we can calculate the expected value of the stock at the end of the two periods.
If the stock rises by 6 in the first period and then by 6 again in the second period, its value would be 62. If it falls by 4 in the first period and then rises by 6 in the second period, its value would be 52. If it falls by 4 in both periods, its value would be 42.
Using these values, we can calculate the expected value of the stock at the end of two periods as follows:
Expected value = (1/3) x 62 + (1/3) x 52 + (1/3) x 42 = 52
Now, let's calculate the value of the call option with a strike price of 48. If the stock rises to 52, the call option would be worth 4. If the stock falls to 46 or lower, the call option would be worthless.
Therefore, the value of the call option can be calculated as follows:
Value of call option = (1/3) x 4 + (2/3) x 0 = 1.33
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the optimal outcome in the example of al and bob in the video, in which both magicians keep their promises and each earns $10,000, is:
The optimal outcome in the example of Al and Bob in the video, in which both magicians keep their promises and each earns $10,000, is known as the "pareto optimal" or "pareto efficient" outcome.
This means that it is the most efficient allocation of resources, in which neither party can be made better off without making the other party worse off. In this scenario, both magicians have fulfilled their obligations and received the maximum benefit without causing harm to the other party.
The pareto optimal outcome is an important concept in economics and game theory, as it represents a state of maximum efficiency and fairness in the allocation of resources.
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Demand has a slope of -0.4. It is also known that when the price is 70, 115 pieces are sold.
a) What is the demand function? State it in the form P = function of Q (ie P = f (Q))
b) What is the demand function of the form: Q = function of P (ie Q = f (P))
c) Plot the demand function P = f (Q) where the point in question is
marked and the intersection with the P-axis is also marked.
For answer a) P = (Q - 87) / (-0.4); for answer b) Q = -0.4P + 87; for option c) the point (217.5, 0) is the intersection of the demand function with the Q-axis.
a) To find the demand function, we need to use the given information about the slope of demand and the quantity demanded at a specific price point. We can start by using the point-slope formula:
(Q - Q1) = m(P - P1)
where Q1 and P1 are the coordinates of the given point (70, 115), and m is the slope of demand (-0.4). Plugging in the values, we get:
(Q - 115) = -0.4(P - 70)
Simplifying and rearranging, we can solve for Q in terms of P:
Q = -0.4P + 87
So the demand function in the form P = f(Q) is:
P = (Q - 87) / (-0.4)
b) To find the demand function in the form Q = f(P), we just need to solve the above equation for Q:
Q = -0.4P + 87
So the demand function in the form Q = f(P) is:
Q = -0.4P + 87
c) To plot the demand function P = f(Q), we can use the equation we found in part (a):
P = (Q - 87) / (-0.4)
To plot the function, we can start by finding the intercepts. When Q = 0, we have:
P = (0 - 87) / (-0.4) = 217.5
So the point (0, 217.5) is the intersection of the demand function with the P-axis. When P = 0, we can solve for Q:
0 = (Q - 87) / (-0.4)
Q = 217.5
So the point (217.5, 0) is the intersection of the demand function with the Q-axis.
To plot the function, we can use these two points and the slope (-0.4) to draw a straight line passing through both points. The resulting graph should show a downward-sloping demand curve that intersects the P-axis at (0, 217.5) and passes through the point (70, 115).
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the trade-off between equity and efficiency occurs because: a) the efficient allocation of resources is bad for business and industry. b) allocating resources fairly may cause inefficiency. c) to ensure equity everyone must pay more tax. d) efficiency is politically unpopular
The trade-off between equity and efficiency occurs because allocating resources fairly may cause inefficiency. The correct option is b) allocating resources fairly may cause inefficiency.
In other words, if resources are distributed equally, it may not be the most efficient use of those resources. For example, if a company is required to hire a certain number of workers from a certain demographic to ensure equity, it may not be the most efficient decision for the company's productivity. On the other hand, if resources are allocated solely based on efficiency, it may lead to inequality and unfair distribution of resources.
It is important to note that this trade-off is not a black-and-white issue and can vary depending on the specific situation. In some cases, allocating resources fairly may not necessarily cause inefficiency, while in others, efficiency may be prioritized over equity. Ultimately, it is up to policymakers and businesses to find a balance between the two to ensure a fair and efficient allocation of resources. The correct option is b) allocating resources fairly may cause inefficiency.
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One thing economists do to help them understand how the real world works is:
a. make assumptions.
b. ignore the past.
c. try to capture every aspect of the real world in the models they construct.
d. all of the above
Economists use a variety of methods to understand how the real world works, but one important tool they use is making assumptions. The correct option is d.
This may seem counterintuitive, as we often think of assumptions as a bad thing, but in economics, assumptions are necessary to simplify complex situations and make them more manageable. By making assumptions about how people behave, what they want, and what their constraints are, economists can create models that are more realistic and easier to understand.
However, it is important to note that economists do not ignore the past, as option b suggests. In fact, they often look to historical data and events to inform their assumptions and models. By studying past economic trends and events, economists can better understand how the economy has worked in the past and make predictions about how it will behave in the future.
Finally, while economists do strive to capture every aspect of the real world in the models they construct, this is not always possible or even desirable. Models that are too complex can be difficult to understand and may not be very useful in practice. Instead, economists aim to strike a balance between capturing the most important aspects of the real world and creating models that are easy to work with and interpret.
Therefore, the correct answer to the question is d. all of the above.
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Under US GAAP, a contingent liability should ______.
be in the notes to the financial statements if the loss may possibly occur and can be reasonably estimated
not be reported if the loss is remote and unable to be estimated
be reported on the balance sheet if the loss may possibly occur and can be reasonably estimated
be reported on the balance sheet if the loss will probably occur and can be reasonably estimated
Under US GAAP, a contingent liability should be in the notes to the financial statements if the loss may possibly occur and can be reasonably estimated.
What is US GAAP?
US GAAP stands for Generally Accepted Accounting Principles, which are a set of accounting rules and guidelines used to prepare financial statements for publicly traded companies in the United States. GAAP provides a standardized approach to accounting that aims to ensure consistency and accuracy in financial reporting. It is developed and maintained by the Financial Accounting Standards Board (FASB) and covers topics such as revenue recognition, inventory valuation, and expense recognition. Adhering to US GAAP is important for companies to maintain credibility with stakeholders and comply with financial reporting regulations.
Under US GAAP, a contingent liability should be reported on the balance sheet if the loss will probably occur and can be reasonably estimated. If the loss is only possible or remote, or it cannot be reasonably estimated, then it should be disclosed in the notes to the financial statements.
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Dillard's Department Store advertises in the Odessa American newspaper almost every week to tell the local residents about sales and special promotions. However, Dillard's has found that a disadvantage of newspaper advertising is that a. it has low geographic selectivity and flexibility b. it often encounters distractions from competing ads and news stories c. it seldom lends itself well to cooperative advertising d. It lacks news value, immediacy, and year-round readership
Dillard's Department Store faces a disadvantage in newspaper advertising due to the fact that it often encounters distractions from competing ads and news stories. The correct option is b.
This means that their advertisements may not receive the desired attention from local residents because they compete with other ads and content for the reader's attention.
One of the main disadvantages of newspaper advertising, as stated in the question, is that it often encounters distractions from competing ads and news stories. This means that there are many other ads and news stories vying for the reader's attention, which can make it difficult for any one ad to stand out.
Additionally, newspapers typically have a short shelf life, so ads may only be seen by a limited audience before they become outdated. The other options listed may also be disadvantages of newspaper advertising, but they do not accurately describe the disadvantage stated in the question.
Therefore, the correct option is b.
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At the end of the year, overhead applied was $42,000,000. The actual overhead was $40,300,000 Closing over/under applied overhead into Cost of Goods Sold would cause net income to:a. increase by $1,700,000.b. decrease by $1,700,000.c. increase by $3,400,000.d. decrease by $3,400,000.
The net income would increase by $1,700,000. (A)
At the end of the year, the overhead applied was $42,000,000, and the actual overhead was $40,300,000. The difference between the applied and actual overhead is $1,700,000 ($42,000,000 - $40,300,000).
This difference is considered over-applied overhead since the applied overhead is greater than the actual overhead.
When closing over-applied overhead into the Cost of Goods Sold, it reduces the COGS, leading to an increase in the net income. Therefore, the net income would increase by $1,700,000. (A)
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all else equal, if the firm continues its production in the same economic environment, the firms accounting profits should______.
If the firm continues its production in the same economic environment, the firm's accounting profits should increase if output is high enough. The answer is d.
Investing in technology that reduces production costs can increase economic profits for a firm, as long as the revenue from the sale of goods exceeds the new, lower cost per unit.
In this case, the company managed to reduce the cost per unit from $2 to $1.85, which means that the company's profit margin per unit increased. Assuming all other factors remain constant, the company's economic profits should increase as a result of the cost reduction.
However, the actual impact on economic profits depends on the level of output. If the firm produces enough units to generate more revenue than the fixed costs, then economic profits will increase. If the firm produces too few units, it may not be able to cover its fixed costs and economic profits may decrease.
The complete question is:
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85. All else equal, if the firm continues its production in the same economic environment, the firm’s economic profits should
a. increase if output is low enough
b. decrease
c. stay the same
d. increase if output is high enough
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if 2/3 (two-thirds) of all units sold are sandals and 1/3 (one-third) are shoes, of the break-even units, how many units of sandals must be sold?
If 2/3 of all units sold are sandals and 1/3 are shoes, then the proportion of sandals to total units sold is 2/3.
Let's say the break-even point is x units sold. Then the number of sandals sold at the break-even point would be (2/3)x, and the number of shoes sold would be (1/3)x.
To find the number of sandals that must be sold at the break-even point, we need to set the revenue from selling sandals equal to the total cost of producing and selling all x units.
Let's say the price of a pair of sandals is $p, and the cost of producing a pair of sandals is $c. Then the revenue from selling a pair of sandals is $p x (2/3), and the cost of producing a pair of sandals is $c x (2/3).
Setting the revenue from selling sandals equal to the total cost, we get:
[tex]$p \times \frac{2}{3}x = c \times x$[/tex]
Solving for x, we get:
[tex]$x = \frac{3c}{2p}$[/tex]
Substituting this expression for x into the formula for the number of sandals sold at the break-even point, we get:
[tex](2/3)x = (2/3) x $\frac{3c}{2p}$ = $\frac{2c}{p}$[/tex]
Therefore, the number of sandals that must be sold at the break-even point is [tex]$\frac{2c}{p}$[/tex].
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ocean shores realty is a registered real estate business that engages in the development and marketing of new homes on the oregon coast. ocean shores must register a branch office to _____ .
Ocean Shores Realty must register a branch office to comply with state regulations and expand their operations.
Registering a branch office allows the business to establish a physical presence in a new location and conduct real estate transactions in that area. This can increase the reach of the business and attract new clients, ultimately leading to increased revenue and growth opportunities.
By registering a branch office, Ocean Shores Realty can also maintain proper licensure and ensure compliance with state laws governing the real estate industry.
Overall, registering a branch office is a crucial step for any real estate business looking to expand their operations and establish a stronger presence in new markets.
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Robs Oy ,a small business that specialises in manufacturing electronic-control equipment, has just received an enquiry from a potential customer for eight identical robotic units. These would be made using Robs’s own labour force and factory capacity. The product specification prepared by the estimating department shows the following:
Material and labour requirements for each robotic unit:
Component X 2 per unit
Component Y 1 per unit
Component Z 4 per unit
Assembly labour 25 hours per unit (but see below)
Inspection labour 6 hours per unit
As part of the costing exercise, the business has collected the following information:
Component X. This item is normally held by the business as it is in constant demand. There are 10 units currently held which were bought for 150€ a unit. The sole supplier of component X has announced a price rise of 20 per cent, effective immediately, for any further supplies. Robs has not yet paid for the items currently held.
Component Y. 25 units are currently held. This component is not normally used by Robs, but the units currently held are because of a cancelled order following the bankruptcy of a customer. The units originally cost the business 4,000€ in total, although Robs has recouped 1,500€ from the liquidator of the bankrupt business. As Robs can see no use for these units (apart from the possible use of some of them in the order now being considered), the finance director proposes to scrap all 25 units (zero proceeds).
Component Z. This is in regular use by Robs. There are none in inventories, but an order is about to be sent to a supplier for 75 units, irrespective of this new proposal. The supplier charges 25€ a unit on small orders but will reduce the price to 20€ a unit for all units on any order over 100 units.
Other items. These are expected to cost 250€ in total.
Assembly labour is currently in short supply in the area and is paid at 10€ an hour. If the order is accepted, all necessary labour will have to be transferred from existing work. As a result, other orders will be lost. It is estimated that for each hour transferred to this contract 38€ will be lost (calculated as lost sales revenue 60€, less materials 12€ and labour 10€). The production director suggests that, owing to a learning process, the time taken to make each unit will reduce, from 25 hours to make the first one, by one hour a unit made. (That is, it will take 25 hours to make the first one, 24 hours to make the second, 23 hours to make the third one and so on.)
Inspection labour can be provided by paying existing personnel overtime which is at a premium of 50 per cent over the standard rate of 12€ an hour.
When the business is working out its contract prices, it normally adds an amount equal to 20€ for each assembly labour hour to cover its general costs (such as rent and electricity). To the resulting total, 40 per cent is normally added as a profit mark-up.
Required:
(a) Prepare an estimate of the minimum price that you would recommend Robs Oy to charge for the proposed contract such that it would be neither better nor worse off as a result.
The minimum price that Robs Oy should charge for the proposed contract is 3,994.27€.
This takes into account the costs of materials, labour, and other expenses, as well as the opportunity cost of losing other orders due to the transfer of labour. It ensures that Robs Oy will break even and not incur any losses or miss out on potential profits.
Material costs:
Component X: 2 units x (150€ x 1.2) = 360€
Component Y: 1 unit x 26.67€ = 26.67€ (total cost of 25 units is irrelevant)
Component Z: 4 units x 20€ = 80€
Labour costs:
Assembly labour: (25+24+23+22+21+20+19+18) hours x 10€ per hour = 1,735€
Lost sales revenue due to transferred labour: 7 units x 38€ per unit = 266€
Inspection labour: 6 hours x (12€ x 1.5) = 108€
Other costs: 250€
Total cost: 2,825.67€
Mark-up:
20€ per hour x (25+24+23+22+21+20+19+18) hours = 3,660€
40% mark-up on total cost + mark-up = 2,825.67€ + 3,660€ x 40% = 3,994.27€
Therefore, the minimum price that Robs Oy should charge for the proposed contract is 3,994.27€.
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why are demographics frequently used by marketers? multiple choice question. to eliminate the need to establish a target market to graphically illustrate a marketing strategy to segment and describe their markets to unify market fragments into a larger market
The correct answer is to segment and describe their markets.
Demographics refer to specific characteristics of a population, such as age, gender, income, education, occupation, and geographic location. Marketers frequently use demographics as a tool to segment and describe their target markets. By understanding the demographic profile of their target audience, marketers can tailor their marketing strategies and messages to effectively reach and engage specific customer segments.
Demographic segmentation helps marketers identify groups of consumers who share similar characteristics and needs. It allows them to create targeted marketing campaigns that resonate with specific demographics, ensuring that their products or services are positioned and promoted in a way that appeals to the intended audience.
Eliminating the need to establish a target market (a) is not a purpose of using demographics. Graphically illustrating a marketing strategy (b) can be done using various tools and techniques, but demographics alone may not be sufficient for this purpose. Unifying market fragments into a larger market (c) does not accurately describe the primary role of demographics in marketing.
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if nike, an american corporation, assembles sneakers in thailand, the value of the labor that goes into the sneaker assembly would:
If Nike, an American corporation, assembles sneakers in Thailand, the value of the labor that goes into the sneaker assembly would be considered a part of Thailand's Gross Domestic Product (GDP).
Gross Domestic Product (GDP) is a measure of the economic output of a country. It is the total value of all goods and services produced within a country's borders during a specified period, usually a year.
GDP is often used as an indicator of a country's economic health, as it reflects the level of economic activity and the standard of living of its citizens.
There are three ways to calculate GDP:
- The production approach: which adds up the value of all goods and services produced in the economy.
- The expenditure approach: which adds up all the spending on goods and services in the economy.
- The income approach: which adds up all the income earned by households and firms in the economy.
GDP is often used as a comparison metric to compare the economic growth of different countries or to track the progress of a country's economy over time. However, GDP has some limitations as it does not account for non-monetary factors such as the quality of life, environmental degradation,
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the decision of which major expenditures and projects a company will invest in is traditionally called .
The decision of which major expenditures and projects a company will invest in is traditionally called capital budgeting.
This financial process involves analyzing various investment opportunities and selecting those that provide the highest potential for profit and value creation. It plays a crucial role in a company's long-term financial success and sustainability.
Capital budgeting involves evaluating different projects based on their estimated cash flows, risks, and returns on investment (ROI). Companies may use various methods, such as net present value (NPV), internal rate of return (IRR), and payback period, to determine the most suitable investments. These tools help decision-makers compare the potential value and profitability of each project, enabling them to allocate resources efficiently.
The primary goal of capital budgeting is to maximize shareholder value by identifying and investing in projects that yield the highest returns relative to their costs and risks. This strategic approach ensures that the company's financial resources are used effectively, contributing to its long-term growth and profitability. By carefully selecting and managing their investments, companies can maintain a competitive advantage in their respective industries and achieve their strategic objectives.
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F is considered as an _____________ factorand q is considered an ___________ factorGroup of answer choicesinternal, externalinternal; internalexternal; internalnone of the choicesexternal; exte
Internal factors are those which are within the control of a company and can be changed by the organization. These factors include strategies, organizational structure, leadership and culture, employee productivity, and marketing and sales initiatives.
External factors are anything outside of the company's control and can include the economy, competition, technology, political environment, and social and demographic changes. These factors can have an impact on the success of the organization, but the organization cannot directly control them.
For example, an organization may be able to control its internal factors, such as its marketing and sales initiatives, but it cannot control external factors such as the economy or competition.
The organization may be able to make changes to its pricing, product offerings, and marketing strategies in response to changes in the external environment, but it cannot control the overall economic conditions or the actions of its competitors. Therefore, internal factors are the primary determinant of a company's success or failure, while external factors are often secondary.
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the following facts pertain to a non-cancelable lease agreement between mooney leasing company and rode company, a lessee. commencement date may 1, 2025. annual lease payment due at the beginning of each year, beginning with may 1, 2025 $20,471.94. bargain purchase option price at end of lease term $4,000. lease term 5 years. economic life of leased equipment 10 years. lessor's cost $65,000. fair value of asset at may 1, 2025. $90,999.99. lessor's implicit rate 8%. lessee's incremental borrowing rate 8%. the collectibility of the lease payments by mooney is probable. discuss the nature of this lease to rode. the nature of this lease to rode is a...
The nature of this lease to Rode is a capital lease. This is because the lease term of 5 years is greater than 75% of the economic life of the leased equipment which is 10 years.
Additionally, the bargain purchase option price of $4,000 at the end of the lease term is lower than the fair value of the asset which is $90,999.99 at the commencement date of the lease. The annual lease payment due at the beginning of each year is also significant, being $20,471.94. Finally, the collectibility of the lease payments by Mooney is probable.
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https://brainly.com/question/17164931#SPJ11Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $90 per unit. Variable expenses are $63 per stove, and fixed expenses associated with the stove total $108,000 per month.
Required:
1. Compute the company’s break-even point in unit sales and in dollar sales.
2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.)
Higher break-even point
Lower break-even point
3. At present, the company is selling 10,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes.
4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month? (Round up your answer to the nearest whole number.)
1) The break-even point in unit sales is 2,400 and the break-even point in dollar sales is $216,000.
2) When the variable expenses per stove increase as a percentage of the selling price, the result will be a higher break-even point.
3) The current monthly net operating income is $180,000, and the proposed changes would result in a monthly net operating income of $181,500.
4) 11,212 stoves would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month.
The Break-even PointThe break-even point is the point at which a company's revenues equal its costs. In this case, the break-even point in unit sales is calculated as follows:
Fixed expenses ÷ Contribution margin per unit$108,000 ÷ ($90 - $63) = 2,400This means that Outback Outfitters needs to sell 2,400 stoves per month to cover all its costs and break even. The break-even point in dollar sales can be calculated by multiplying the break-even point in unit sales by the selling price:
2,400 x $90 = $216,000So, Outback Outfitters needs to generate $216,000 in sales revenue to break even.
The Variable ExpensesThe break-even point is calculated by dividing the fixed expenses by the contribution margin per unit. The contribution margin is the selling price minus the variable expenses per unit. If the variable expenses per unit increase as a percentage of the selling price, the contribution margin per unit will decrease, and the break-even point will increase. This is because each unit sold will generate less profit to cover the fixed expenses, requiring more units to be sold to break even.
Income StatementsTo prepare two contribution format income statements, we need to calculate the contribution margin per unit and the total contribution margin for each scenario. Under present operating conditions:
Contribution margin per unit = Selling price - Variable expenses per unit
$90 - $63 = $27
Total contribution margin = Contribution margin per unit x Number of units sold
$27 x 10,000 = $270,000
Total revenue = Selling price x Number of units sold
$90 x 10,000 = $900,000
Total expenses = Fixed expenses + Variable expenses
$108,000 + ($63 x 10,000) = $738,000
Net operating income = Total revenue - Total expenses
$900,000 - $738,000 = $162,000
After proposed changes:
Contribution margin per unit = Selling price - Variable expenses per unit
$81 - $55.80 = $25.20
Total contribution margin = Contribution margin per unit x Number of units sold
$25.20 x 12,500 = $315,000
Total revenue = Selling price x Number of units sold
$81 x 12,500 = $1,012,500
Total expenses = Fixed expenses + Variable expenses
$108,000 + ($55.80 x 12,500) = $872,500
Net operating income = Total revenue - Total expenses
$1,012,500 - $872,500 = $140,000
So, the current monthly net operating income is $180,000, and the proposed changes would result in a monthly net operating income of $181,500.
Number of StovesTo calculate the number of stoves that would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month, we can use the following formula:
(Number of units sold x Contribution margin per unit) - Fixed expenses = Net operating incomeSince we know the contribution margin per unit after the proposed changes ($25.20) and the fixed expenses ($108,000), we can rearrange the formula to solve for the number of units sold:
Number of units sold = (Net operating income + Fixed expenses) ÷ Contribution margin per unitPlugging in the values, we get:
Number of units sold = ($71,000 + $108,000) ÷ $25.20Number of units sold = 11,212 (rounded up)Learn more about break-even point: https://brainly.com/question/21137380
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_____ include(s) nonmonetary incentives and rewards, such as new learning and developmental opportunities, enriched and challenging work, job security, and recognition. a. Relational returns b. Broadbanding c. External equity systems d. Pay compression
A. Relational returns include nonmonetary incentives and rewards, such as new learning and developmental opportunities, enriched and challenging work, job security, and recognition.
The term that includes nonmonetary incentives and rewards, such as new learning and developmental opportunities, enriched and challenging work, job security, and recognition is: a. Relational returns.
This study focus on searches of compensation, company culture and relational returns toward employee engagement at campuses in Indonesia. The methodology used were by distributing questionnaires, lab tests, simulations, tabulation of events, as well as interview techniques. Statistical measuring instrument used was STATA 15. The study population was lecturers of 20 educational institutions in Indonesia. Total respondents were 150 people use the calculation Slovin was nonprobability purposive sampling. The result of this research is the compensation, company culture and relational returns have positive significant impacts toward employee engagement which was direct to the keys of organization performance over all.
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On page 298, of the textbook it mentioned the term "moral hazard." What does this term mean? A) This means that the U.S. government has a moral duty and a responsibility to always bailout failing U.S. financial institutions. If they don't, then they are being immoral. B) This is a slippery slope. If the government actually does bailout failing U.S. financial institutions, then they might be reckless in the future and take more unnecessary risk because they know the government will be there to save them the next time they fail. C) This term promotes the idea that "greed is good and that greed is right." It is greed that pushes humanity forward and creates progress. Therefore, society needs to accept a certain amount of moral hazard or greed as a fact of life. D) It means "chill out" or don't worry be happy.
B) Moral hazard refers to the situation where one party, often protected from risk or consequences, engages in reckless behavior or takes on more risk because they know another party will bear the negative consequences. In the context of government bailouts, financial institutions may become more reckless in their practices, knowing that the government will intervene and save them if they fail.
The term "moral hazard" refers to the possibility that individuals or institutions may take on more risk because they are protected from the consequences of their actions. In the context of the financial industry, if the government bails out failing financial institutions, those institutions may feel less inclined to take appropriate precautions and manage risk effectively, because they know that they will be saved by the government if they fail.
This can create a dangerous cycle of risky behavior and government bailouts, leading to instability in the financial system. Therefore, it is important to balance the need for government intervention to prevent systemic risk with the need to ensure that institutions take responsibility for their own actions and manage risk appropriately.
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A proxy beta is:
A.the average beta of firms that are only engaged in the proposed new line of business.
B.the industry average beta that is used in lieu of the firm's beta because the firm has not existed long enough to have a beta calculated.
C. the beta used when the firm has a great deal of business risk.
D.None of these answers is correct.
A proxy beta is (B) the industry average beta that is used in lieu of the firm's beta because the firm has not existed long enough to have a beta calculated.
A proxy beta is the industry average beta that is used in place of a firm's beta because the firm has not existed long enough to have a beta calculated. This method is often used for new firms or firms that have recently entered a new line of business. The proxy beta is a useful tool in estimating the expected rate of return on an investment and assessing the risk associated with it.
Option B is answer.
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the purpose of enterprise resource planning is to support planning and execution systems and the decisions they drive throughout your company. group startstrue or false
The statement "the purpose of enterprise resource planning is to support planning and execution systems and the decisions they drive throughout your company. group starts" is true.
The purpose of Enterprise Resource Planning (ERP) is to support planning and execution systems and the decisions they drive throughout a company. ERP is a software system that integrates various departments and functions across an organization into a single system.
This allows data to be shared across the organization in real-time, which helps to streamline business processes and improve decision-making.
ERP systems typically include modules for various business functions, such as accounting, human resources, supply chain management, inventory management, and customer relationship management.
By integrating these functions into a single system, ERP helps to eliminate data silos and improve communication and collaboration across departments. The result is a more efficient and effective organization that can respond quickly to changing business needs.
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is a cash basis taxpayer. in 2021, she paid state income taxes of $5,000. in early 2022, she filed her 2021 state income tax return and received a $500 refund. which of the following statements is true
The true statement is The taxpayer can claim a deduction for the $5,000 paid in state income taxes in 2021, but will have to report the $500 refund as income in 2022.
As a cash basis taxpayer in 2021, the individual paid state income taxes of $5,000. In early 2022, she filed her 2021 state income tax return and received a $500 refund.
As a cash basis taxpayer, the individual deducts expenses in the year they are paid. So, she can deduct the $5,000 state income tax payment in 2021.
However, when she receives the $500 refund in 2022, it becomes taxable income in that year, since it represents a return of the previously deducted amount.
In summary, the taxpayer claims a $5,000 deduction in 2021 and reports a $500 income in 2022.
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which accurately explains the difference between the stock market and the commodity market? responses goods are traded in the stock market while services are traded in the commodity market. goods are traded in the stock market while services are traded in the commodity market. ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. equity is bought and sold in the stock market while debt is bought and sold in the commodity market. equity is bought and sold in the stock market while debt is bought and sold in the commodity market. brokers are used in the stock market while person-to-person trading is used in the commodity market.
The most accurate explanation of the difference between the stock market and the commodity market is that ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market.
In the stock market, equity is bought and sold, while debt is bought and sold in the commodity market. Additionally, brokers are commonly used in the stock market, whereas person-to-person trading is more prevalent in the commodity market.
The difference between the stock market and the commodity market is that ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market. In the stock market, investors buy and sell shares of companies, whereas, in the commodity market, they trade contracts for physical or future delivery of raw materials like oil, gold, and agricultural products.
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Inthe open-economy macroeconomic model, if for some reason foreign citizens want to purchase more U.S. goods and services at each exchange rate, then a. the demand for dollars in the market for foreign-currency exchange b. the demand for dollars in the market for foreign-currency exchange shifts left. c. the supply of doll ars in the market for foreign-currency exchange shifts right. d. the supply of doll ars in the market for foreign-currency exchange shifts left. shifts right.
In the open-economy macroeconomic model, when foreign citizens want to purchase more U.S. goods and services at each exchange rate, the demand for dollars in the market for foreign-currency exchange shifts right.
In an open-economy, foreign citizens need to convert their currency into U.S. dollars to buy U.S. goods and services. When the demand for these goods and services increases, the demand for U.S. dollars in the foreign-currency exchange market also increases.
This leads to a rightward shift in the demand curve for dollars. As a result, the value of the U.S. dollar may appreciate, making it more expensive for foreign citizens to buy U.S. goods and services.
However, the increased demand for dollars could also encourage U.S. exporters to supply more dollars to the market, potentially offsetting some of the currency appreciation.
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James realizes a few years later that he has several competitors, and he would like to have an advantage over them. James is interested in the idea of merging with one of his competitors. Cite your sources and Laws. a. Explain to James what it means to merge with another company in the chosen state.b. Then identify and explain the steps that he and the other party would need to take to merge their businesses together - remember to cite the laws from your chosen state.c. James was able to convince Mike, a competitor, to merge their companies together, explain to James what three separate groups of professionals are recommended to be consulted to assist him with this merger. What are their purposes?
Consulting with these three groups of professionals can help ensure that James is able to navigate the merger process successfully and create a stronger, more competitive business.
a. Merging with another company in any state generally means combining two separate businesses into one entity. This involves pooling resources, personnel, and intellectual property in order to create a larger, more competitive business. Depending on the state, there may be specific laws and regulations that govern the process of merging, including requirements for filing paperwork, obtaining approvals, and notifying shareholders and other stakeholders.
b. In the United States, the specific steps required to merge two companies together can vary depending on the state in which the businesses are located. Generally, the process involves several key steps, including:
Negotiating and drafting a merger agreement: This document outlines the terms of the merger, including the rights and responsibilities of both parties, the valuation of the companies, and any other key details.
Obtaining approval from shareholders and other stakeholders: Depending on the state and the size of the companies involved, there may be specific requirements for obtaining approval from shareholders and other stakeholders before the merger can proceed.
Filing paperwork with the state: In most cases, the merging companies will need to file paperwork with the state in order to officially register the new entity.
Complying with tax and regulatory requirements: Depending on the nature of the businesses and the states in which they operate, there may be specific tax and regulatory requirements that the companies will need to comply with as part of the merger process.
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5. Documenting Information
In Western culture, when you borrow ideas and words from other sources, you must cite them properly. Well-documented data from solid sources will help reinforce your professional credibility. Familiarize yourself with the kinds of materials and sources you need to document in business writing. Also, develop good research habits, and be aware of when and how to use quotations.
Complete the following sentence.
1. It is important to document report data properly in order to (establish good relationships / deter legal investigations of libel / instruct the reader where to find further informatio)
2. For which of the following must you give credit when writing a report?
Any facts, statistics, graphs, and drawings that are not common knowledge
Any facts, statistics, graphs, and drawings that are in the public domain
Your original ideas, opinions, examples, or theories
Consider the scenario, and then answer the question.
After taking extensive notes for a report you are writing, you are having a hard time organizing your various sources.
3. What are strategies you can use when creating effective note cards? Check all that apply.
Put the original source material aside when summarizing or paraphrasing.
Exclude all publication information.
Record all minor ideas from various sources on one note card.
Include all publication information.
Consider the scenario, and then answer the question.
Sean is worried about plagiarism in a report he is writing for his manager. He needs to paraphrase several passages in the report.
4. What advice would you give him?
Write your own version while carefully following the original.
Write your own version without looking at the original.
Skim the original material to comprehend its full meaning.
1. It is important to document report data properly in order to establish good relationships, deter legal investigations of libel, and instruct the reader where to find further information.
2. When writing a report, you must give credit for any facts, statistics, graphs, and drawings that are not common knowledge.
3. Strategies for creating effective note cards include:
- Put the original source material aside when summarizing or paraphrasing.
- Include all publication information.
Please note that excluding all publication information and recording all minor ideas from various sources on one note card are not effective strategies.
4. To avoid plagiarism in a report, advise Sean to:
- Skim the original material to comprehend its full meaning.
- Write his own version without looking at the original.
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if the firm's bonds earn a return of 10%, then what would be your estimate of rs using the over-own-bond-yield-plus-judgmental-risk-premium approach? round your answer to two decimal places. (hint: use the midpoint of the risk premium range.) %
Using the over-own-bond-yield-plus-judgmental-risk-premium approach, the estimate of rs can be calculated by adding the judgmental risk premium to the yield of the firm's own bonds.
The over-own-bond-yield-plus-judgmental-risk-premium approach is a method used to estimate the required rate of return (rs) for a company's common stock. This approach involves adding a risk premium to the yield of the firm's own bonds. The risk premium is based on the perceived riskiness of the stock compared to the bonds, and it is typically determined based on the analyst's judgment.
In this case, if the firm's bonds earn a return of 10%, and assuming a midpoint of the risk premium range, say 4%, then the estimate of rs would be 14% (10% + 4%). This means that investors would require a 14% return on the firm's common stock to compensate for the additional risk compared to the firm's own bonds.
Therefore, the estimate of rs using the over-own-bond-yield-plus-judgmental-risk-premium approach would be 14% (rounded to two decimal places).
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