Answer:
35,000
Explanation:
The contribution margin of each pair sold is ...
$2.00 -1.70 = $0.30
In order to cover the fixed costs, ...
$10500/$0.30 = 35,000
pairs must be sold.
Mason Co. must sell 35,000 pairs of shoelaces to break even.
Green Gusts is a two-year-old company that makes wind turbines. The business owner, Mike, is struggling to compete. Finding enough employees who know how to do the work has been difficult, and Mike believes that his labor costs are too high because he cannot afford to match the prices of his nearest competitors. To help with these problems, Mike hires a new HR manager, Jake. Jake recommends they start by bringing in an industrial engineer. How is this approach to job design most likely to help Green Gusts?
Answer:
c. by simplifying work and increasing output per worker
Explanation:
Since in the question, it is given that the labor cost rising and he is not capable to afford but at the same time he wants to remain in the competition due to which he hires a new HR manager, Jake.
So to overcome this problem the work should be simplified to each and every employee who is working there so that they get to know what actually they have to do that results increase in output per worker
Hence, the correct option is c.
g if 1 British pound can be exchanged for 180 cents of U.S. currency, what fraction should be used to compute the indirect quotation of the exchange rate expressed in British pounds?
Answer: 1/1.8
Explanation:
From the question, we are informed that 1 British pound can be exchanged for 180 cents of U.S. currency. To get the fraction that should be used to compute the indirect quotation of the exchange rate expressed in British pounds, we have to change the 180 cents to dollars first.
Since 100 cents = 1 dollar, 180 cents = 1.8 dollars. Therefore, fraction should be used to compute the indirect quotation of the exchange rate expressed in British pounds will be:
= 1/1.8
On December 20, the company paid cash for equipment, $272,300, subject to a 2% cash discount, and freight on equipment of $11,410. Prepare entries on the books of Concord Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
Dr equipment $ 278,264.00
Cr cash $278,264.00
Explanation:
The amount of cash paid for equipment=$272,300*(1-2%)=$266,854.00
The cash paid for freight on equipment is $11,410
The cash paid on freight would also be debited to the equipment's account since the cost of an asset includes the amount spent bringing it to its present location and condition .
Total cost of equipment =$266,854.00+$11,410.00
Megan and Susan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Megan takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Susan takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.
Megan's opportunity cost of making a pizza is ??
2/3 gallon
5/7 gallon
1 1/2 gallons
1 2/5 gallons
of root beer, and Susan's opportunity cost of making a pizza is ???
2/3 gallon
5/7 gallon
1 1/2 gallons
1 2/5 gallons
of root beer.
Who ?? has an absolute advantage in making pizza, and who ?? has a comparative advantage in making pizza?
If Megan and Susan trade foods with each other who ?? will trade away pizza in exchange for root beer.
The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is ??? of root beer, and the lowest price that makes both roommates better off is ??? of root beer per pizza.
Answer:
See explanation
Explanation:
a) Megan's opportunity cost of making pizza:
It takes Megan 2 hours to make 1 pizza and 3 hours to produce one root beer. If she spends the time used in producing pizza to produce root of beer, in 2 hours she can produce 2/3 gallons of root beer.
Therefore, the opportunity cost of making a pizza for Megan = 2/3 gallon of root beer.
b) Susan's opportunity cost of making a pizza:
It takes Susan 5 hours to make 1 pizza and 7 hours to produce a gallon of root beer. If she spend the time used in making pizza to produce root beer, in 5 hours she can produce 5/7 gallons of root beer.
Therefore, the opportunity cost of making a pizza for Susan = 5/7 gallon of root beer.
c) Megan has an absolute advantage in making pizza because it takes lesser time to make pizza i.e 2 hours, compared to Susan's 5 hours.
Megan has a comparative advantage in making pizza because she has a lower opportunity cost in making pizza i.e 2/3 gallons of root beer, compared to Susan i.e 5/7 gallons of root beer.
d) Since Megan has a comparative advantage in making pizza, she will make pizza and exchange it for root beer that Susan makes.
e) The highest price of pizza in terms of root beer that will make both roommates better off is 5/7 of a gallon of root beer. If the price is higher than this, then Susan would rather make her own pizza instead of trading for pizza that Megan makes.
The lowest price of pizza in terms of root beer that will make both roommates better off is 2/3 gallon of root beer. If the price is lower than this, then Megan would prefer making her own root beer rather than trading for root beer that Susan makes.
On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,080 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended December 31, 2019, is
Answer: $18
Explanation:
From the question, we are informed that On November 1, 2019, a firm accepted a 5-month, 10 percent note for $1,080 from a customer with an overdue balance.
The accrued interest recorded for this note for the year ended December 31, 2019 goes thus:
The value of notes receivable is $1080, then the interest for 5 months will be:
= ($1080 × 10% ×5)/100 × 12
= $54000/1200
= $45
We are further told that the interest accrued from November 1, 2019 to December 31, 2019. This means that it was for 2 months. The accrued interest will now be:
= $45 × 2/5
= $90/5
= $18
Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2018, Matthew participates in SV’s money purchase pension plan (a defined contribution plan) and in his company’s 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee’s salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee’s 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV’s contribution to the money purchase plan.
a. Assuming Matthew's annual salary is $400,000, what amount will SV contribute to Matthew's money purchase plan? What can Matthew contribute to his 401(k) account in 2010?
b. Assuming Matthew's annual salary is S240,000, what amount will SV contribute to Matthew's money purchase plan? What can Matthew contribute to his 401(k) account in 2010?
c. Assuming Matthew's annual salary is $60,000, what amount will SV contribute to Matthew's money purchase plan? What amount can Matthew contribute to his 401(k) account in 2010?
d. Assume the same facts as c. except that Matthew is 54 years old at the end of 2010. What amount can Matthew contribute to his 401(k) account in 2010?
Answer:
Explanation:
The concept of 401 K plan refers to the taxation saving plan made by contributing a certain amount. An employer donation to his/her 401 K account can span between the range of $16,500 and $22000( for the aged from 50 and above). Also, for an employer and employee, contribution can be make into their 401 K account up to $49000 and $54000 for aged from 50 and above.
a. Assuming Matthew's annual salary is $400,000, what amount will SV contribute to Matthew's money purchase plan? What can Matthew contribute to his 401(k) account in 2010?
Given that;
Matthew is 48 years Old
His annual salary = $400,000
SV contributes 15 percent of an employee’s salary to a retirement account for the employee up to the amount limited by the tax code.
Thus;
15/100 × 400000 = 60000
However; from the tax code rule; people that are not up to age 50 and above are required to contribute $49000. So therefore; the employer will make a contribution of $49000 into Matthew's money purchase plan.
What can Matthew contribute to his 401(k) account in 2010?
He has exhausted his maximum contribution in 2010; as a result of that no contribution will be needed for that year , so he is contributing $0
b. Assuming Matthew's annual salary is $240,000, what amount will SV contribute to Matthew's money purchase plan? What can Matthew contribute to his 401(k) account in 2010?
Given that :
Matthew annual salary is $240,000
The SV contribution is 15% OF Matthew's annual salary = 15 /100 × 240,000= 36000
Since; Matthew is not up to 50 years; the maximum amount that can be deposited into his 401 K account is 49000
Thus;
SV contribution into Matthew's money purchase plan = $49000 -$36000
= $13,000
c. Assuming Matthew's annual salary is $60,000, what amount will SV contribute to Matthew's money purchase plan? What amount can Matthew contribute to his 401(k) account in 2010?
Given that :
Matthew annual salary is $60,000
The SV contribution is 15% OF Matthew's annual salary = 15 /100 × 60,000= 9000
Since; Matthew is not up to 50 years; the maximum amount that can be deposited into his 401 K account is 49000
Thus;
SV contribution into Matthew's money purchase plan = $49000 -$9000
= $40,000
d. Assume the same facts as c. except that Matthew is 54 years old at the end of 2010. What amount can Matthew contribute to his 401(k) account in 2010?
Here it is assumed that Matthew's age is 54 years, so we can say he is older than 50 years. Hence the amount that He can contribute into his 401 (k) account is = Allowed Contribution + Catch up contribution
The catch up contribution is the difference in the 401 (K) amount that can be deposited for people age above 50 and people aged below age 50
= $16500 + ( $54500 - $49000)
= $16500 + $5500
= $22,000
Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $12) $ 180,000 Variable manufacturing costs $ 97,500 Fixed manufacturing costs 21,000 Selling and administrative expenses (all fixed) 36,000 (154,500 ) Operating income $ 25,500 A foreign company whose sales will not affect Lattimer's market offers to buy 5,000 units at $7.50 per unit. In addition to existing costs, selling these units would add a $0.25 selling cost for export fees. Lattimer’s annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a:
Answer:
Effect on income= $3,750 increase
Explanation:
Giving the following information:
Variable manufacturing costs $ 97,500
A foreign company whose sales will not affect Lattimer's market offers to buy 5,000 units at $7.50 per unit.
In addition to existing costs, selling these units would add a $0.25 selling cost.
Because it is a special offer, we will not take into account the fixed costs.
Unitary variable manufacturing costs= 97,500/15,000= $6.5 + 0.25= $6.75
Now, we can calculate the effect on income:
Effect on income= 5,000*(7.5 - 6.75)
Effect on income= $3,750 increase
A company performing its long-lived asset impairment testing is reviewing the fair value of equipment. Each of the following valuation techniques may be appropriate for measuring the fair value of the equipment, except the:_______
a. Market approach.
b. Income approach.
c. Cost approach.
d. Net realizable value approach.
Answer:
d. Net realizable value approach.
Explanation:
An impairment usually arises when a company's asset (either intangible or fixed asset) overall future cash-flow ability (fair value) is lesser than its carrying value. This impairment of assets may be as a result of varying consumer demands, recession, damages, inflation or even a change in legal conditions.
For a long-lived asset, if its carrying value exceeds its fair value and isn't really recoverable, there's an impairment loss on the asset.
In the event that, a company performing its long-lived asset impairment testing is reviewing the fair value of equipment. Each of the following valuation techniques may be appropriate for measuring the fair value of the equipment;
1. Market approach: this measures and analyzes whether there's a decline in the market price of the asset.
2. Income approach: this determines if there were any operating or cash-flow losses on the asset.
3. Cost approach: this is an approach used to determine the level of cost associated with purchasing, maintaining and fabricating the asset.
Using college students as the market segment, describe the most relevant reference group(s) and indicate the probable degree of influence on decisions for each of the following:_________.
A) Brand of toothpaste.
B) Purchase of a hybrid car.
C) Purchase of breakfast cereal.
D) Becoming a vegetarian.
E) Choice of a computer tablet such as the iPad.
Answer and Explanation:
A. Toothpaste brand: Toothpaste is a commonly used, inexpensive, and very popular product. These decisions are governed mainly by the reference group such as family , friends or primary group with whom a student has regular face to face experiences. Hence the purchase decision is affected by a low degree of comparison community.
B. Buying a hybrid car: A hybrid car is sometimes described as expensive and luxury products. It's moreover a non-necessity commodity for a college student. These decisions are therefore usually affected by secondary community. And a high degree of control in the comparison community will only inspire a student to buy a car.
C. Buying cereal for breakfast: This is a simple requirement of a lifetime. Therefore, even without consulting any reference group a student can buy such product. Often such transactions are rules by family group control. So it needs a low degree of control.
D. Becoming a vegetarian: It takes a high degree of influence and motivation to become a vegetarian.
Thus the aspirational group influences a student. So they opt for vegetarianism to become part of such a community. Such decision taking involves a high degree of control.
E. Option of a computer tablet like the iPod: these products are a luxury commodity sold at regular prices. Typically refer to their families , friends, magazines before making a purchase student to get an idea about the output and price of these products. These goods are the weak product with a strong brand and a strong purchase is controlled by a strong reference community impact.
im Angel holds a $200,000 portfolio consisting of the following stocks: Stock Investment Beta A $50,000 0.95 B 50,000 0.8 C 50,000 1 D 50,000 1.2 Total $200,000 What is the portfolio's beta
Answer: 0.9875
Explanation:
Portfolio beta is the measure of the volatility of a portfolio or security when it is compared to the market.
From the question, we are informed that an investment of $200,000 was made for four stock types. This means each stock's investment was: ($200,000/4) = $50,000. Therefore a weightage of (100% ÷ 4) = 25% will be assigned to each.
The portfolio beta will now be:
= (25% × 0.95) + (25% × 0.8) + (25% × 1) + (25% × 1.2)
= (0.25 × 0.95) + (0.25 × 0.8) + (0.25 × 1) + (0.25 × 1.2)
= 0.2375 + 0.2 + 0.25 + 0.3
= 0.9875
The portfolio's beta is 0.9875
Hazel Morrison, a mutual fund manager, has a $40 million portfolio with a beta of 1.00. The risk-free rate is 4.25%, and the market risk premium is 6.00%. Hazel expects to receive an additional $60 million, which she plans to invest in additional stocks. After investing the additional funds, she wants the fund's required and expected return to be 13.00%. What must the average beta of the new stocks be to achieve the target required rate of return? a. 2.04 b. 1.68 c. 1.85 d. 1.76 e. 1.94
Answer:
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Explanation:
In order to calculate the average beta of the new stocks to achieve the target required rate of return we would have to calculate the following:
average beta of the new stocks = (Required Beta-(portfolio /total fund) *old beta)/(additional portfolio/total fund)
To calculate the Required Beta we would have to use the formula of Required rate of return as follows:
Required rate of return=Risk free return + (market risk premium)*beta
0.13=0.0425+(0.06*Required Beta)
Required Beta = (0.13-0.0425)/0.06
Required Beta = 1.45
Therefore, average beta of the new stocks =(1.45-($40/$100) *1)/($60/$100)
average beta of the new stocks =1.05/0.6
average beta of the new stocks =1.75
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Current trends indicate that, due to the emerging economies, the world is moving _____ an economic system that is more favorable for international business.
Answer: closer to
Explanation:
Emerging economies also referred to as developing countries or emerging markets are countries which are investing in more in their productive capacity ans are also gradually moving away from agriculture as it main occupation and there is increase in industrialization.
Due to emerging markets, the world is moving closer to an economic system that is more favorable for international business. There are more quality goods produced by nations and advancement in technology has also helped the economy.
Darell Hair Stylists's adjusted trial balance and statement of owner's equity follow.
Balance
Account Balance Debit Credit
Cash $1,000
Accounts Receivable 900
Office Supplies 600
Equipment 19,700
Accumulated Depreciation - Equipment $2,000
Accounts Payable 900
Interest Payable 550
Notes Payable 3,400
Common Stock 10,650
Dividends 700
Service Revenue 14,100
Rent Expense 5,200
Supplies Expense 100
Depreciation Expense - Equipment 2,000
Interest Expense 1,400
Total $31,600 $31,600
Daniel Hair Stylists Statement of Retained Earnings Year Ended December 31, 2018
Retained Earnings, January 1, 2018 $0
Net Income for the year 5,400
5,400
Dividends (700)
Retained Earnings, December 31, 2018 $4,700
Required:
Prepare Darell's unclassifed balance sheet at December 31, 2018.
Answer:
Total Assets = Total Liabilities and Stockholder's Equity = $20,200
Explanation:
An unclassified balance sheet is a type of balance sheet that does not present assets and liabilities under different categories. It only presents all assets in order of liquidity and liabilities in order of the shortness of their terms.
This can be prepared for this question as follows:
Darell Hair Stylists
Unclassifed Balance Sheet
At December 31, 2018
Particulars Amount ($)
Cash 1,000
Accounts Receivable 900
Office Supplies 600
Equipment 19,700
Accumulated Dep. - Equipment (2,000)
Total Assets 20,200
Accounts Payable 900
Interest Payable 550
Notes Payable 3,400
Common Stock 10,650
Retained Earnings, Dec. 31, 2018 4,700
Total Liabilities and Stockholder's Equity 20,200
Since Total Assets and Total Liabilities and Stockholder's Equity as it is normally required, that indicates that the unclasified balance sheet has been prepared accurately.
On your way home from Super Groceries, your car breaks down. It is a hot summer day and you have nobody to call. With little time before the food spoils, you decide to prioritize what to carry on the walk home. You choose to take three items with you. Since you will need all five items today, you will replace the two abandoned items at the corner store near your house, Convenient Grocers.The table below contains the prices you paid for each good at Super Groceries and the prices you will need to pay at Conveniant Grocers to replace the goods Which three items should you save? Place them in the bin. Leave the rest of the items unplaced Items that you save item Super Grocers Convenient Groceries eggs $3.65 $4.25turkey $3.60 $2.75milk $2.75 $5.15vegetables $4.00 $3.00fruits $2.75 $3.60
Answer:
Which three items should you save?
eggs, milk and fruits
Explanation:
Item Super Convenient Difference
Grocers Groceries in price
eggs $3.65 $4.25 -$0.60
turkey $3.60 $2.75 $0.85
milk $2.75 $5.15 -$2.40
vegetables $4.00 $3.00 $1.00
fruits $2.75 $3.60 -$0.85
you should take with you the three items that cost more in the Convenient Groceries store near your house: eggs, milk and fruits
if you purchase the turkey and the vegetables in the Convenient Groceries store you will pay less money than what you paid in the Super Grocers store.
Real world question: There will be times where co-workers will be slack and not pull their weight on the team. How will you handle this if it presents in the future?
Sun-Jun is the executive general manager of a U.S.-based multinational corporation. Marisol is a manager in a similar position but works for an American company that operates only in the U.S. and does not engage in international business. In this context, which business function will be most typically exclusive to Sun-Jun
Answer: A. choosing an appropriate mode for entering a particular foreign country
Explanation:
The options to the question are:
A. choosing an appropriate mode for entering a particular foreign country
B. developing a business strategy
C. marketing a product or service
D. adhering to labor and environmental standards
E. maintaining healthy relations with the U.S. government.
From the question, we are told that Sun-Jun is the executive general manager of a U.S.-based multinational corporation while Marisol is a manager in a similar position but works for an American company that operates only in the U.S. and does not engage in international business.
Since Marisol's company does not engage in international business, while Sun-Jun works in a multinational corporation, this means that the business function will be most typically exclusive to Sun-Jun will be choosing an appropriate mode for entering a particular foreign country.
6.2 Assignment: Intellectual Property 1. Clifford Witter was a dance instructor at the Arthur Murray Dance Studios in Cleveland. As a condition of employment, he signed a contract not to work for a competitor. Subsequently, he was hired by the Fred Astaire Dancing Studios, where he taught the method that he had learned at Arthur Murray. Arthur Murray sued to enforce the noncompete contract. What would be result? What additional information, if any, would you need to know to decide the case? 2. Greenberg worked for Buckingham Wax as its chief chemist, developing chemical formulas for products by testing other companies’ formulas and modifying them. Brite Products bought Buckingham’s goods and resold them under its own name. Greenberg went to work for Brite, where he helped Brite make chemicals substantially similar to the ones it had been buying from Buckingham. Greenberg had never made any written or oral commitment to Buckingham restricting his use of the chemical formulas he developed. May Buckingham stop Greenberg from working for Brite? May it stop him from working on formulas learned while working at Buckingham? Why?
Answer:
The overview of the given circumstances is described in the explanation segment below.
Explanation:
(1)...
Non-compete seems to be a standard procedure in several areas of the globe to safeguard information. There must have been 2 factors for something like a non-competent specified period in exchange, as shown in this scenario:
There's got to have been a state secret that is hidden from the public. Witter uses trade secrets for his previous venture.Neither of the circumstances confirms that realizing as well as trying to teach how and when to start dancing seems to be completely obvious and does not quantity to state secrets. If this were a style of dance that is already recognized mostly to Anthony Murray as well as Witter, therefore the case might have been dissimilar. And while this skill is trained to every learner, it isn't a secret.
Interestingly, Witter doesn't use trade secrets because it is a common experience of dance to learn well how to dance. Haven't broken the non-competition.
(2)...
Buckingham may, if he indeed wishes, promote to prevent Greenberg from operating on such formulations, and even using them for many other businesses, as he created certain formulas although employed at Buckingham. This also acknowledges that all these formulas have been created again for the corporation of Buckingham and therefore any exposure of such formulas to some of its rival businesses directly impacts the company of Buckingham.
They should negotiate through Brite the current landlord of Greenberg, not to require Greenberg to provide it, and that therefore Brite, and in so doing, is indicting the requirements including its Intellectual Property Act. Nevertheless, it seems from either the content of the issue that there was no Non-Disclosure Agreement among Buckingham as well as Greenberg.However although there would have been a long-standing contractual partnership involving Brite & Buckingham, hardly any agreement concerning digital content as well as Trade Secret sharing including non-disclosure had already been concluded.In consideration of it all, it would be very unlikely against Buckingham to just get a judge's order targeting Greenberg as well as Briton to prosecute them or even to prevent themselves from being used formulas established by Greenberg although employed for Buckingham.
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because:
Answer: Monetary policy has a long outside lag.
Explanation:
The options are that:
a. It wants to avoid time inconsistency problems.
b. It takes time for the Central Bank to implement its policy decisions.
c. Monetary policy has a long outside lag.
d. Forecast errors are often rather large.
Monetary policy is the use of interest rate and the supply of money to control the economy. Optimal monetary policy helps to maximizes the welfare of individuals and firms given the frictions that occur in the economic environment.
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because monetary policy has such long outside lags. It has a long outside lag because they mainly affect the investment plans of business and a change in the rate of interest might not really have a full effect on the spending on investment for several years.
The Fed increased the supply of US dollars at an average rate of 6 percent per year over the 1980-2005 period. Based on the theory of production capacity, if the Fed had instead increased the money supply at the rate of 7 percent per year during that period, given other policies: (Select all that apply.)
Answer:
These are the options for the question:
A. The average inflation rate during 1980-2005 would have been one percentage point higher than it actually was in that period.
B. The economy would have enjoyed a much higher level of output in the mid-2000s.
C. The price level in 2005 would have been about 28 percent higher than what it actually reached in that year.
D. The output of the economy in the mid-2000s would not have been very different from the levels it actually reached.
And this is the correct answer:
A. The average inflation rate during 1980-2005 would have been one percentage point higher than it actually was in that period.
Explanation:
According to the production capacity theory, if the money supply is increased, but the quantity of output is not, or is not increased at the same rate, then, inflation will set in.
In this case, the question is telling us that the Fed would have increased the money supply by one percentage point, but output (GDP growth) would have stayed the same.
For this reason, all else being equal, this higher amount of money supply would have simply created more inflation.
There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and watered in wire cages). The free range technique has a much more elastic supply curve than the factory technique. When the demand for eggs falls:________.
a. egg production falls by a smaller percentage in the factory technique than in the free range technique.
b. egg production falls by a larger percentage in the factory technique than in the free range technique.
c. the production using both techniques falls by the same percentage.
d. the factory egg producers supply curve shifts inward.
e. the free range egg producers supply curve shifts inward.
Answer:
a. egg production falls by a smaller percentage in the factory technique than in the free range technique.
Explanation:
Elasticity of supply is defined as the degree of responsiveness of supply to changes in price. Highly elastic supply responds more to change in price than low elastic supply.
In the given scenario where eggs are produced using factory and free range techniques, as demand falls price consumers are willing to pay also falls.
Since factory technique has a lower elasticity of supply, the fall in supply as a result of fall in price will be small.
However the fall in supply of free range will be higher because of its higher elasticity
What are cash flow financing activities
Answer: Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.
Explanation:
Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:
Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.
Prepare a direct materials budget for the second quarter.
Answer and Explanation:
The Preparation of direct materials budget for the second quarter is prepared below:-
Rida, Inc.,
Direct materials budget
For the second quarter
Particulars Amount
Production Unit 240,000
Raw material per unit 0.60
Raw material needed for production 144,000
(240,000 × 0.60)
Add: Desired ending inventory 9,450
(52,500 × 0.6 × 30%)
Total amount 153,450
Less: Beginning inventory ($43,200)
Direct material purchase $110,250
Cost per pound $175
Direct material purchase cost $19,293,750
Therefore to reach at direct material purchase cost we simply multiply the direct material purchase cost with cost per pound.
1 points eBookPrintReferencesItem 7Item 7 1 points Your grandparents would like to establish a trust fund that will pay you and your heirs $180,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.5 percent, how much must your grandparents deposit today
Answer:
$ 5,142,857.14
Explanation:
Calculation for how much must your grandparents deposit today
Using this formula
Amount that grandparents must deposit today = Regular amount / Rate of interest
Let plug in the formula Amount that grandparents must deposit today= 180,000 / 0.035
=$ 5,142,857.14
Therefore the Amount that grandparents must deposit today will be $5,142,857.14
Project A had an initial investment of $4 million, out of which $2 million has already been spent. A new Project B needs $1.5 million to complete and will meet the same objectives as Project A. Which project should you select? You can only pick one. DEVELOP PROJECT CHARTER T&T Question You're managing a software project for a manufacturing company. A new computer, which costs $50,000 including shipping and installation, will speed up the development process and cause a gross savings of $100,000 after one year of purchase of the computer. Assuming an interest rate of 10% per annum, what's the NPV of the savings?
A. $90,000
B. $40,909
C. $45,555
D. $91,110
Answer:
A
Decision: Project A should be selected.
B
NPV =$40,909.09
Explanation
A
Since the two projects would achieve the same objectives, the project with the lowest initial cost should be selected.
Kindly note that the $2 million already spend on project A is not a relevant cash flow because it is sunk cost. Hence, the initial cos outlay of project A will be $2 million which will be spent should the project be undertaken.
Project B on the other hand would cost $1.5 million in initial cost which is $500,000 cheaper than project A.
Decision: Project A should be selected.
B
The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 50,000
The NPV of the savings
NPV = 100,000× 1.1^(-1) - 50,000= 40,909.09
NPV =$40,909.09
Expenses payable always treated as current/ fixed assets. Is it true or false?
Answer:
False
Explanation:
This is an example of a current liability and not assets.
To explain this , assets are anything owned as a result of past activities that result into inflow of economic benefits while liabilities are obligation that arose as a result of pat activities that result into outflow of economic benefit.
Current assets or liabilities are expected to be settles within twelve months / a normal operating cycle of the business activities while the non - current are for a longer period.
Expenses payable are liabilities that are current in nature as it is expected to be settled within a business year.
Lauren gathers a group of long-term employees to generate ideas of what elements should be included in the mission statement. Which of the following methods should Lauren use during the group discussion to generate ideas?
a. Networking
b. Staffing
c. Directing
d. Controling
Answer:
d. Controlling
Explanation:
As we know that
There are fives principles of management that include planning, organizing, staffing, directing and controlling
The controlling is the last step of the management principles in which the firm compared its actual performance with the standard one so that if there is an error that needs to be checked and according to that corrective actions are taken
Therefore in the given case, Lauren should add controlling techniques for generating the ideas
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will . The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will . The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment.
Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.
a. Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government
b. Taxing the price of placing a resume or posting a job opening on job-search website
c. Establishing government-run employment agencies to connect unemployed workers to job vacancies
Answer:
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will DECREASE. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will INCREASE. The temporary unemployment resulting from such sectoral shifts in the economy is best described as STRUCTURAL unemployment.
Structural unemployment is a non voluntary type of unemployment and it occurs because the skills of the workers are not the ones needed by the employers. In this case, labor that was used for producing cotton in Texas is no longer needed due to shifts in the world price of cotton.
Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.
c. Establishing government-run employment agencies to connect unemployed workers to job vacancies
your coin collection 51 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2061, assuming they appreciation at annual rate of 4.2 percent
Answer:
FV= $4,520.14
Explanation:
Giving the following information:
Face value= $51
Number of years= 2061 - 1952= 109
Appreciation rate= 4.2%= 0.042
To calculate the future value of the coins, we need to use the following formula:
FV= PV*(1+i)^n
FV= 51*(1.042^109)
FV= $4,520.14
The following control procedures are used in Bunny’s Boutique Shoppe for cash disbursements. For each procedure, explain the weakness in internal control and identify the internal control principle that is violated.
Procedures:
a. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register.
b. The store manager personally approves all payments before she signs and issues checks.
c. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register.
The purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register.
d. After payment, bills are "filed" in a paid invoice folder.
e. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner.
Answer:
a. Principle Violated - Physical Controls
Weakness - The cheques are not stored in a secure area and so can be misused if people who find it have ill minds about it.
b. Principle Violated - Segregation of Duty
Weakness - The approval and payment of bills is done by the same individual. This can give rise to the store manager approving fraudulent payments and then authorizing it herself.
c. Principles Violated - . Establishment of responsibility; Documentation procedures
Weakness - Unauthorized employees making purchases.
Not all employees should have the power to approve purchases for resale.
Weakness - Use of cash instead of checks; no prenumbered invoices.
Checks should be used to disburse the cash so that payment may be cancelled if need be. Also prenumbered invoices should be used so that purchases can be tracked.
d. Principle Violated - Documentation Procedures
Weakness - Filing does not prevent a bill from being paid more than once
Just because the bills are filed does not mean that they won't be paid more than once. A more sophisticated method is needed that reflects when a bill has been paid to prevent it being paid for again.
e. Principle Violated - Independent Internal Verification
Weakness - The bank reconciliation is not independently prepared
The bank reconciliation should not be prepared by the same person who has been in charge of the accounting entries in the company. Someone else should do it to ensure that no fraudulent transactions were recorded.
In the United States cartels or any type of collusion among firms Multiple Choice is in violation of the antitrust laws. is concentrated in monopolistically competitive industries. is quite common in industries that produce nondurable goods. is encouraged by government policy so firms can achieve economies of scale.
Answer:
is in violation of the antitrust laws.
Explanation:
Collusion is when two or more rival firms come together to set prices or quantities to sell in order to maximise profit and disrupt market equilibrium.
Collusion is in violation of anti trust laws and it's illegal in the US.
Collisions and cartels occur more commonly in oligopolies.
I hope my answer helps you