Answer:
Direct material price variance $ 21,000 unfavorable
Explanation:
A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.
$
6,5000 pounds should have cost (6500× $12) 78,000
but did cost 99,600
Direct material price variance 21,000 unfavorable
Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories. Assume that all direct materials are placed in the process at the beginning of production.
Answer:
37,000 units
Explanation:
The computation of the total equivalent units for direct material is shown below:
= Transferred to finished goods during the month of July + Ending work in process during the month of July - Inventory in process, July 1
= 37,500 units + 3,500 units - 4,000 units
= 41,000 units - 4,000 units
= 37,000 units
We simply applied the above formula so that the total equivalent units for direct materials could come
In the business gift-giving world, if a company gives a gift to a potential client for the purpose of influencing their behavior in their favor, it is unethical. What are the three criteria and dimensions of evaluating a business gift? Multiple Choice Question
Answer:
Context, culture and content
Explanation:
Gift giving in business is common and also contentious. Business gifts are often for advertising, sales promotion, and marketing communication medium.
These kind of gifts are for the following reasons:
1. In appreciation.
2. In the hopes of creating a positive first impression.
3. Returning a favor or expecting a favor in return for something.
When it comes to considering appropriate business gifts it is helpful for one to think about the content of the gift, the context of the gift, and the culture in which it will be received.
Giving a gift to a potential client for the purpose of influencing their behavior is a form of Bribery.
Cobe Company has already manufactured 25,000 units of Product A at a cost of $15 per unit. The 25,000 units can be sold at this stage for $480,000. Alternatively, the units can be further processed at a $240,000 total additional cost and be converted into 5,400 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $104 and for Product C is $53
Prepare an analysis that shows whether the 21,000 units of Product A should be processed further or not.
Sell as in Process further
Sales
Relevant costs:
Total relevant costs
Income (loss)
Incremental net income (or loss) if processed further
The company should _______________________
Answer:
Incremental income from further processing $534,900
The company should process further
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .
$
Revenue after split-off point
(104×5400) + (53× 11,100) 1,149,900
Revenue at the slit of point
(25,000× $15) (375,000 )
Additional income from further processing 774,900
Further processing cost (240,000)
Incremental income from further processing 534,900
Incremental income from further processing $534,900
The company should process further
Cane Company manufactures two products called Alpha and Beta that sell for $195 and $150, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 123,000 units of each product. Its unit costs for each product at this level of activity are given below
Alpha Beta
Direct materials $40 $15
Direct labor 34 28
Variable manufacturing overhead 22 20
Traceable fixed manufacturing overhead 30 33
Variable selling expenses 27 23
Common fixed expenses 30 25
Total cost per unit $183 $144
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.
1) What contribution margin per pound of raw material is earned by Alpha and Beta?
2) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits?
3) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?
4) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials?
Answer:
Explanation:
Alpha = $195
Beta = $150
total production capacity = 123,000 pounds
raw materials = $5 per pound
Production costs per unit Alpha Beta
direct materials $40 $15
direct labor $34 $28
variable manufacturing overhead $22 $20
fixed manufacturing overhead $30 $33
variable selling expenses $27 $23
common fixed expenses $30 $25
total cost per unit $183 $144
1) What contribution margin per pound of raw material is earned by Alpha and Beta?
Alpha Beta
contribution margin $72 $64
contribution margin per pound $9 $21.33
2) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. How many units of each product should Cane produce to maximize its profits?
Alpha Beta
contribution margin $72 $64
contribution margin per pound $9 $21.33
production (in units) 2,500 75,000
profits $30,000 $450,000
total profits $480,000
3) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?
Alpha Beta
contribution margin $72 $64
contribution margin per pound $9 $21.33
production (in units) 2,500 75,000
contribution margin $180,000 $4,800,000
total contribution margin $4,980,000
4) Assume that Cane's customers would buy a maximum of 95,000 units of Alpha and 75,000 units of Beta. Also, assume that the company's raw material available for production is limited to 245,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials?
If it wants to increase the production of Alpha, it could pay as much as ($195 - $183) / 8 = $1.50 extra per pound if it wants to maximize profits. Maximum price = $6.50 per pound. At this point, marginal revenue = price.
QS 9-8 Percent of sales method LO P3 Warner Company’s year-end unadjusted trial balance shows accounts receivable of $105,000, allowance for doubtful accounts of $660 (credit), and sales of $340,000. Uncollectibles are estimated to be 1% of sales. Prepare the December 31 year-end adjusting entry for uncollectibles.
Answer:
Bad Debts Expense $ 2740 Debit
Allowance for doubtful accounts $ 2740 Credit
Explanation:
Warner Company
Accounts receivable $105,000,
Allowance for doubtful accounts $660 (credit),
Sales $340,000
Uncollectibles are estimated to be 1% of sales.
Uncollectibles of 1% of sales means that after adjusting entry is passed the uncollectible amount must be $3400 ( 1% of $340,000) .
We have a credit balance of $ 660
The debit balance in the Allowance for doubtful accounts must be $ 3400.
The adjustment will be = $3400- $660= $ 2740
The Adjusting Entry will be
Bad Debts Expense $ 2740 Debit
Allowance for doubtful accounts $ 2740 Credit
Barans Realty Co. pays weekly salaries of $18,000 on Monday for a six-day workweek ending the preceding Saturday. Journalize the necessary adjusting entry at the end of the accounting period, assuming that the period ends on Friday. Round your answers to nearest whole dollar.
Answer:
Barans Realty Co. Journal entry
Dr Salary expenses 15,000
Cr Salary payable 15,000
Explanation:
Since Barans Realty Co. pays weekly salaries of $18,000 on Monday for a six-day workweek ending the preceding Saturday in which we have to as well assume that it ended on friday that means (18,000/6 ×5) will give us 15,000, we have to record it by Debiting salary expenses with 15,000 and Crediting salary payable with the same amount
The key thing to look at is that the period ends on FRIDAY.
If we count from Monday to Friday, that is 5 days apart.
We need to divide to find the daily salary.
18,000 / 6 = $3,000 per day
Multiply to find the total salary expense from Monday to Friday.
3,000 * 5 = $15,000
Now, we can assemble the journal entry.
We will have a salaries expense to debit for $15,000
We will also have a salaries payable to credit for $15,000
18,000 - 15,000 = $3,000 expense for the next accounting period.
Best of Luck!
A dairy produces and sells organic milk. Last year it sold 500,000 gallons of milk at a price of $7 per gallon. For last year, the firm's a. explicit costs were $3.5 million. b. economic profit was $3.5 million. c. total revenue was $3.5 million. d. accounting profit was $3.5 million.
Answer:
. total revenue was $3.5 million.
Explanation:
Total revenue = price x units sold = 500,000 x $7 = $3,500,000
Total explicit cost is the actual cost incurred in production. Total explicit cost includes fixed cost and variable cost.
Accounting profit is total revenue less total explicit cost.
Economic profit is accounting profit less implicit cost or opportunity cost.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
I hope my answer helps you
Consider two nations, Spendia and Savia. The MPC for Spendia is 0.8, and the MPC for Savia is 0.5. Assume that both nations experience an increase in gross investment (I) of $100 million at their existing GDP levels.
a. Considering the multiplier effect, what will be the overall increase in income (Y) for each nation?
b. Now assume that a third nation experiences an increase of $250 million in its income and its gross investment (I) increases by the same amount as Spendia and Savia, which is $100 million.
The expenditures multiplier of this third nation is ________ suggesting an MPC of _________.
Answer:
a. Overall increase in income (Y) for Spendia is $500 million, while overall increase in income (Y) for Savia is $200 million
b. The expenditures multiplier of this third nation is 2.50 suggesting an MPC of 0.6.
Explanation:
a. Considering the multiplier effect, what will be the overall increase in income (Y) for each nation?
For Spendia
MPC = Marginal propensity to consume = 0.8
MPS = Marginal propensity to save = 1 - 0.8 = 0.2
Multiplier = 1 / MPS = 1 / 0.2 = 5
Overall increase in income (Y) for Spendia = Increase in gross investment * Multiplier = $100 million * 5 = $500 million
For Savia
MPC = 0.5
MPS = 1 - 0.5 = 0.5
Multiplier = 1 / MPS = 1 / 0.5 = 2
Overall increase in income (Y) for Savia = Increase in gross investment * Multiplier = $100 million * 2 = $200 million
b. Now assume that a third nation experiences an increase of $250 million in its income and its gross investment (I) increases by the same amount as Spendia and Savia, which is $100 million.
Note that generally in macroeconomics, savings (S) is equal to gross investment (I). Consequently, it is assumed that an increase in gross investment (I) eqauls to an increase in savings (S).
Based on this, we have:
Increase in income (Y) = $250 million
Increase in gross investment (I) = Increase in savings (S) = $100 million
MPS = Increase in savings / Increase in income = $100 / $250 = 0.40
Multiplies = 1 / MPS = 1 / 0.4 = 2.5
MPC = 1 - MPS = 1 - 0.4 = 0.6
Therefore, the expenditures multiplier of this third nation is 2.50 suggesting an MPC of 0.6.
Answer:
500, 5, 200, 2, 2.5, 6
Explanation:
Imagine Fry knew in advance that he would be frozen for 1000 years and wanted to have $9,999,999,999 when he thaws out. How much would Fry need to deposit in his account paying 2% APR compounded quarterly before falling into the cryogenic freezer
Answer:
$21.66
Explanation:
We are to find the present value of $9,999,999,999.
The formula to be used is :
P = FV (1 + r/m) ^-mn
FV = Future value
P = Present value
R = interest rate
N = number of years
M = number of compounding
= $9,999,999,999 ( 1 + 0.02 / 4 ) ^-4000 = $21.66
I hope my answer helps you
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2010, its first year of operations.
1. Use the following information about the company's adjustments to complete a 10- column work sheet for Dylan Delivery Company.
a. Unrecorded depreciation on the trucks at the end of the year is $40,000.
b. An additional $1,000 of salaries must be accrued at year-end.
c. The cost of unused office supplies still available at year-end is $2,000.
2. Prepare the year-end closing entries for Dylan Delivery Company, and determine the capital amount to be reported on its year-end balance sheet.
Account Title Debit Credit
Cash $16,000
Accounts receivable 34,000
Office supplies 5,000
Trucks 350,000
Accumulated depreciation—Trucks $80,000
Land 160,000
Accounts payable 124,000
Salaries payable 5,000
S. Dylan Capital 307,000
S. Dylan withdrawals 34,000
Delivery fees earned 263,000
Depreciation expense—Truck 40,000
Salaries expense 110,000
Office supplies expense 15,000
Repairs expense—trucks 15,000
Totals $779,000 $779,000
Answer:
Dylan Delivery Company
1. 10-Column Worksheet (see attachment)
2. Closing Journal Entries at December 31, 2010:
Date Description Debit Credit
Depreciation expense - Truck 80,000
Salaries Expense 111,000
Office supplies expense 18,000
Repairs expense- trucks 15,000
Income Summary 224,000
To close expenses to the Income Summary.
Date Description Debit Credit
Income Summary 263,000
Delivery fees 263,000
To close revenue to the Income Summary.
Date Description Debit Credit
Net Income 39,000
Retained Earnings 39,000
To close the net income to retained earnings.
2b) Capital to be reported on balance sheet as at December 31, 2010:
S. Dylan Capital $307,000
Retained Earnings 39,000
S. Dylan withdrawals (34,000)
Net Capital $312,000
Explanation:
a) A 10-column worksheet is a tool used by accountants to close the temporary accounts, after necessary adjustments, and then extract a balance sheet. It comprises two columns (debit and credit) for each of the following: Unadjusted Trial Balance, Adjusting Entries, Adjusted Trial Balance, Income Statement, and Balance Sheet.
b) A closing entry is a journal entry that is made at the end of an accounting period to transfer balances from a temporary account to a permanent account. The four basic steps in the closing process are: Closing the revenue accounts—transferring the credit balances in the revenue accounts to a clearing account called Income Summary. Closing the expense accounts—transferring the debit balances in the expense accounts to a clearing account called Income Summary. Extracting a balance between the revenue accounts and the expense accounts, called the net income or loss. Closing the net income or loss to the Retained Earnings.
The pre-tax cost of debt is 11%, preferred stock costs 14%, and equity costs 15%. What is the weighted average cost of capital assuming a tax rate of 40% and a target capital structure of 40% debt, 20% preferred stock, and 40% equity
Answer:
WACC is 11.4%
Explanation:
The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
To calculate the weighted average cost of capital, follow the steps below:
Step 1: Calculate cost of individual source of finance(this is already given)
Cost of Equity= 15%
After-tax cost of debt:
= (1- T) × before-tax cost of debt
= 11%× (1-0.4)= 6.6%
Cost of preferred stock costs= 14%
Step 2 : calculate the proportion or weight of the individual source of finance . (This already given)
Equity = 40%
Debt= 40%
Preferred stock : 20%
Step 3; Work out weighted average cost of capital (WACC)
WACC = ( 15%× 40%) + ( 6.6%× 40%) + (14%× 20%)= 11.4%
WACC is 11.4%
Gomez Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the purchases journal.
July 1 Purchased $20,500 of merchandise on credit from Hector Co., terms n/15.
4 Sold merchandise costing $920 to C. Paul for $1,030 cash.
8 Purchased $660 of office supplies from Zhang Co. on credit, terms n/30.
15 Paid Hector $20,500 cash for the merchandise purchased on July 1.
21 Purchased $1,065 of store supplies on credit from Staples, terms n/30.
22 Sold merchandise costing $2,600 to MicroTran for $3,100 on credit, terms n/30.
23 Purchased office supplies from Depot for $365 cash.
25 Purchased $5,400 of merchandise on credit from Alfredo Co., terms n/30.
27 Paid employee salaries of $2,250 in cash.
Answer:
I prepared an excel spreadsheet because there is not enough room here
On a purchase journal you only record entries regarding purchases, you do not record any payments or other expenses.
At a sales volume of 38,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $752,400. To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 39,000 units
Answer:
The average sales commission per unit at a sales volume of 39,000 units would be $19.8
Explanation:
In order to calculate the average sales commission per unit we would have to calculate the following formula:
average sales commission per unit= Total sales commission/sales volume
According to given data:
Total sales commission=$752,400
sales volume=38,000 units
Therefore, average sales commission per unit=$752,400/38,000 units
average sales commission per unit=$19.8
The average sales commission per unit at a sales volume of 39,000 units would be $19.8
Suppose a consumer has the following utility function defined over the 2 goods X and Y: a. If this consumer originally consumed 10 units of X and 24 units of Y, and if the consumption of X were increased to 12 units, how much Y would be would the consumer be willing to give up and maintain the initial level of satisfaction
Answer:
Y = 22 units (Approx)
Explanation:
Note:
The utility function is not given, the utility function is as follows.
U(X ,Y) = 2X + [tex]16Y^{1/2}[/tex]
So,
U(X ,Y) = 2X + [tex]16Y^{1/2}[/tex]
When X = 10 and Y = 24 units
U(10 ,24) = 2(10) + [tex]16(24)^{1/2}[/tex]
U(10 ,24) = 98.4
U(10 ,24) = 99 Units (Approx)
So,
U(X ,Y) = 2X + [tex]16Y^{1/2}[/tex]
When X = 12 Find Y
99 units = 2(12) + [tex]16Y^{1/2}[/tex]
75 = [tex]16Y^{1/2}[/tex]
Y = 21.97
Y = 22 units (Approx)
An economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out. The marginal propensity to consume is 4/5, and the price level is completely fixed in the short run. To close the expansionary gap, the government would need to spending by $_________ billion.
Answer: reduced by $80 billion
Explanation:
An expansionary gap is when the actual output is more than the potential output. From the question, we are told that an economy is operating with output $400 billion above its natural level, and fiscal policymakers want to close this expansionary gap and that the central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding out.
We are also given the marginal propensity to consume is 4/5, and told that the price level is completely fixed in the short run.
To close the expansionary gap, the government would need to reduce its spending. To solve this, we have to calculate the multiplier. This will be:
Multiplier = 1/(1 - MPC)
= 1/(1 - 4/5)
= 1/1-0.8
= 1/0.2
= 5
Therefore, the government expenditure or spending will be reduced by:
= $400 billion/5
=$80 billion
A corporate bond has 22 years to maturity, a face value of $1,000, a coupon rate of 4.6% and pays interest semiannually. The annual market interest rate for similar bonds is 3.3%.
Required:
a. What is the price of the bond Intro A bond has an annual coupon rate of 3.4%, a face value of $1,000, a price of $883.61, and matures in 10 years.
b. What is the bond's YTM?
c. What is the current yield?
Answer:
a. The answer is: $1,008.40
b. The bond's YTM is 3.343%
c. The current yield is 3.826%
Explanation:
a. Bond price formula: ∑(C* / (1+YTM)[tex]n[/tex] )
The price of the bond Intro A with i=1,2...10 is:
∑($1,000 x 3.4% / (1 + 3.3%)[tex]i[/tex] ) = $1,008.40
b. The price of the corporate bond which has 22 years to maturity is: $1,202.20
Given that the bond is trading at par value, the bond's YTM is:
[Annual Interest Payment + ((Face Value – Current Price) / (Years to Maturity))] / ( ( Face Value + Current Price ) / 2 )
= [$1,000 x 4.6% + (($1,000 - $1,202.20) / 22)] / (($1,000 + $1,202.20) /2)
= 3.343%
c. The bond's current yield is:
Annual Interest Payment / Current Price = $46 / $1,202.2 = 3.826%
A manager creates a policy document that lists the policy name, identifying information, and the operational policy. When she gets to the section marked "roles and responsibilities," she is uncertain if she should include the names of the individuals assigned to the roles and responsibilities, but decides ultimately that she will because these individuals were newly appointed and have played an active role in reviewing and providing feedback on the policy. Which of the following statements is an accurate assessment of this manager’s choice to include the names of the individuals?a. the manager made the right choice to include the names of the individuals in the policy because it is highly unlikely that newly appointed employees will leave the company anytime soon. b. the manager should have postponed her decision to include the names until after she consulted the hr department. c. the manager should not have included the names because even though they were newly appointed, individuals join and leave and the company. d. the manager should have waited to include the individuals' names until she received verification that their contracts would be renewed.
Answer:
C
Explanation:
the manager should not have included the names because even though they were newly appointed, individuals join and leave and the company.
The manager made a mistake including the names of the individuals assigned to the roles and responsibilities, because these individuals were newly appointed and although they have played an active role in reviewing and providing feedback on the policy people join companies at anytime and also have the choice of leaving whenever they want.
A company reported $18,000.00 of net income for 20X6, $24,000.00 for 20X7, and $26,000.00 for 20X8. The percentage change in net income from 20X6 to 20X7 was A. 8.33 percent. B. 30.00 percent.
Answer:
The percentage change in net income = 33.33%
Explanation:
Let us establish a formula for calculating the percentage change in net income.
Generally when calculating percentage change, the formula used is:
[tex]\frac{final - initial}{initial} * 100[/tex]
where:
final = income for 20X7 = $24,000
Initial = income for 20X6 = $18,000
∴ % change = [tex]\frac{24,000-18000}{18000} *100[/tex]
[tex]=\frac{6000}{18000} *100\\= 0.3333 * 100[/tex]
= 33.33%
Debbie and Alan open a web-based bookstore together. They have been friends for so long that they start their business on a handshake after discussing how they will share both work and profits or losses from the business. Have Debbie and Alan formed a real partnership given that they have signed no written partnership agreement?
Answer:
Yes
Explanation:
Debbie and Alan have formed a real partnership even though they have signed no written partnership agreement because partnership does not require legal Documentation.
Many partnerships are formed naturally because the people who are involved in the business share similar goals, so their partnerships don't need formation documents to exist.
A project analysis using the net present value method indicates that the present value of cash inflows is $120,000, and the total amount of investment required at the start of the project is $100,000. Which of the following statements best describes the results of the project analysis?
a. The project should be rejected because the actual rate of return expected from the project is less than the minimum desired rate of return.
b. The project should be accepted because the actual rate of return expected from the project is more than the minimum desired rate of return.
c. The project should be rejected because the actual rate of return expected from the project is more than the minimum desired rate of return.
d. The project should be accepted because the actual rate of return expected from the project is less than the minimum desired rate of return.
Answer:
The answer is B.
Explanation:
Cost of investment was $100,000
Present value of all the cash inflows = $120,000
Profit = $20,000 ($120,000 - $100,000)
Since the present value of all the cash inflows is greater than the initial cost of investment, the capital project should be accepted because the firm will be better off and shareholders' wealth will be increased.
The expected rate of return for the project is $20,000/$100,000
0.2 or 20%
Eight months ago, you purchased 400 shares of Winston stock at a price of $46.40 a share. The company pays quarterly difidents of $1.05 a share. Today, you sold all of your shares for $48.30 a share. What is your total percentage return on this investment
Answer:
Percentage return on investment= 8.62 %
Explanation:
Return on investment is the amount that an investor gains after investing in a particular business venture. Percentage return on investment is calculated as gain from a business venture divided by the initial investment.
Percentage return on investment= (Gain ÷ Initial investment) * 100
Gain on share price= 48.30 - 46.40 = $1.90
Gain from dividend= 2 * 1.05= $2.10
Total gain = 1.90 + 2.10 = $4
Therefore
Percentage return on investment= (4 ÷ 46.40) * 100
Percentage return on investment= 8.62 %
So the gain on initial investment of the 400 shares is 8.62%
Answer:
The total percentage return on this investment is 8.62%
Explanation:
Given the initial investment is 400 shares * 46.40 = $18,560 and the purchase of those shares were "eight month ago"
The company pays quarterly dividends of $1/05 per share. So, that in between 8 month, these are 2 Quarters
Thus Dividend amount= 400 * 1.05 * 2 Quarters= $840
Capital gains= Sales value - Purchase price
= 400 * 48.30 - 18,560
= 19,320 - 18,560
= $760
Therefore total percentage return on this investment will be derived by (Dividend + Capital) / Initial Investment * 100
= (840 + 760)/18560 * 100
= 8.62%
Consider the simple leisure model in which the individual chooses between leisure (L) and money income (M). The marginal utility of leisure (MUL) is 15 and the marginal utility of money (MUM) is 3. At the optimum, the wage rate:_______
a. $45
b. $0.20
c. $5
d. $15
Answer:
Wage rate is $5
Explanation:
The marginal utility of money=marginal utility of leisure/wage rate
When the formula is rearranged,wage rate is given thus:
wage rate=marginal utility of leisure/marginal utility of money
wage rate=15/3
wage rate =$5
In other words, the correct option is C,wage rate is $5
Option D would have been correct if the requirement was to calculate marinal utility of leisure
A well-known industrial firm has issued $1,000 bonds that carry a 4% coupon interest rate paid semiannually. The bonds mature 20 years from now, at which time the industrial firm will redeem them from $1,000 plus the terminal semiannual interest payment. From the financial pages of your newspaper you learn that the bonds may be purchased for $715 each ($710 for the bond plus a $5 sales commission). What nominal annual rate of return would you receive if you purchased the bond now and held it to maturity 20 years from now
Answer:
5.59%
Explanation:
$1,000 bonds carrying a 4% coupon rate, semiannual coupon $20, matures in 20 years
if you purchase the bonds at $715, the nominal annual rate of return = coupon payments / bond price = ($20 + $20) / $715 = $40 / $715 = 5.59%
The nominal annual rate of return is calculated by dividing the revenue generated by an investment by the cost of the investment.
A Project Engineer at the Michigan office is excited about an engineering software change to improve the reliability of the central processing unit. Unfortunately, the change involves some conflicting proprietary rights due to the Chief Designer's past work ties to Bridgeway's major competitor. Even though the Project Engineer was warned of this issue, she really wants to be the first to market with this change. There may be future financial rewards for her and the company that may be too good to pass up. As the Chief Liaison Officer, should you suggest the Project Engineer go forward with this engineering change
Answer:
9 76
Explanation:
9
A portfolio consists of $13,600 in Stock M and $19,400 invested in Stock N. The expected return on these stocks is 8.10 percent and 11.70 percent, respectively. What is the expected return on the portfolio
Answer:
Portfolio return is 10.22%
Explanation:
The expected return of a portfolio is the function of the weighted average of the individual stock returns that form up the portfolio. The formula to calculate the expected return of the portfolio is as follows,
Portfolio Return = wA * rA + wB * rB + ... + wN * rN
Where,
w is the weightage of each asset/stock in the portfolior is the return of each stockThe weightage of each stock can be calculated by dividing the investment in the stock by the total investment in the portfolio.
Total investment - portfolio = 13600 + 19400 = $33000
Portfolio Return = 13600/33000 * 0.0810 + 19400/33000 * 0.1170
Portfolio Return = 0.10216 or 10.216% rounded off to 10.22%
A customer is short 100 shares of PDQ stock at $62 per share. The stock goes up to $67 and the customer covers the position. If, 30 days later, the customer decides to re-establish this short position when the market for PDQ is $65, what will the sale proceeds be
Answer:
$60 per share
Explanation:
Given the transaction above, the customer intend to take a loss and then reestablish the position.
Thus, going by "wash sale" rule, the loss deduction is disallowed in a situation where by the position is reestablished within 30 days of the date the loss was generated.
Hence, In this case the customer initially sold short the stock at $62. The stock was later repurchased at $67, for a $5 loss per share which equate to $500 loss on 100 shares.
Again, the customer sold short another 100 shares exactly 30 days later at $65 (to avoid the "wash sale" rule, the position cannot be reestablished until the 31st day). This made the $500 loss to be disallowed.
At this point, the $5 per share loss will be deducted from the sale proceeds of $65, for a new sale proceeds of $60.
Hence, this ensures the taking of the loss until this short position is covered.
For what purpose should the passive voice be used? a. To strengthen most business writing b. To de-emphasize bad news c. To emphasize the doer of the action d. To lengthen the message
Answer:
The correct answer is the option A: To strengthen most business writing.
Explanation:
To begin with, the passive voice is the name given to a grammatical voice construction in where the person who is doing the action is given less importance than the action itself who pass to be the main subject of the construction. Therefore that in business writing it turns out to be very helpful to use passive voice due to the fact that the managers or writers try to give more importance in the strategies, the plans, the numbers, etc and no in the person or the gruop itself but in the results for example.
The manufacturing cost of Calico Industries for three months of the year are provided below: Total Cost Production (units) April $121,800 282,100 May 82,500 163,400 June 99,900 235,900 Using the high-low method, the variable cost per unit and the total fixed costs are
Total Cost
Production (units)
April $121,800 282,100
May 82,500 163,400
June 99,900 235,900
Using the high-low method, the variable cost per unit and the total fixed costs are
$0.33 per unit and $28,707
$0.59 per unit and $14,354
$3.30 per unit and $2,871
$5.94 per unit and $2,871
Answer:
The correct answer is A.
Explanation:
Giving the following information:
April $121,800 282,100
May 82,500 163,400
June 99,900 235,900
To calculate the variable and fixed costs under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (121,800 - 82,500) / (282,100 - 163,400)
Variable cost per unit= $0.33
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 121,800 - (0.33*282,100)
Fixed costs= $28,707
An access control strategy that gives a user or group of users only those powers which are absolutely essential to do the job required is called the: a. principle of least privilege. b. principle of user control. c. principle of essential power. d. group level rule.
Answer:
A. principle of least privilege
Explanation:
According to The Principle of Least Privilege, a subject should be given only those privileges that are essential for it to complete its task. The principle works by giving just enough access to perform the required job. It dictates that users be assigned the least set of privileges they need to do their jobs, according to their roles. The principle aids in the creation of protective systems.
Record adjusting journal entries 100 of the following for year ended December 31
Assume no other adjusting entries are made during the year
Salaries Payable.: At year-end, salaries expense of $24,000 has been incurred by the company, but is not yet paid to employees.
Interest Payable: At its December 31 year-end, the company owes $675 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
Interest Payable: At its December 31 year-end, the company holds a mortgage payable that has incurred $1,300 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.
Answer:
Salaries Payable :
Salaries Expense $24,000 (debit)
Salaries Payable $24,000 (credit)
Interest Payable:
Interest Expense $675 (debit)
Interest Payable $675 (credit)
Interest Payable:
Interest Expense $1,300 (debit)
Interest Payable $1,300 (credit)
Explanation:
When an amount is incurred but is deferred to another period for payment, a liability is recognized.
A liability is a present legal obligation arising from a past event, the settlement of which will result in outflow of economic benefits (Cash) from the entity.