Answer:
A
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
To determine which country has a better technology in production, the opportunity cost has to be calculated. The country with the lower opportunity cost has the better technology
At point B for North Cantina:
The opportunity cost of producing one 4 units of capital good = 10/4 = 2.5 units of consumer goods
The opportunity cost of producing 10 units of consumer good = 4/10 = 0.4 units of capital goods
At point B for South Cantina
The opportunity cost of producing one 4 units of capital good = 8/4 = 2units of consumer goods
The opportunity cost of producing 8 units of consumer good = 4/8 = 0.5 units of capital goods
South Cantina has a lower opportunity cost in the production of capital goods while North Cantina has a lower opportunity cost in the production of consumer goods
The definition of Not Utilizing Staff Talent in the Eight Wastes refers to a. making more than the customer wants or more than you have demand for b. idle time when resources are not being used c. a product that is less than perfect d. not encouraging employee ideas or undermining their efforts e. both b and d
Answer:
d. not encouraging employee ideas or undermining their efforts.
Explanation:
Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.
Hence, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.
The definition of Not Utilizing Staff Talent in the Eight Wastes refers to not encouraging employee ideas or undermining their efforts.
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 7 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 10% per year compounded semiannually, what will be your minimum selling price for the bond
Answer:
$12,341.80
Explanation:
The computation of the minimum selling price for the bond is shown below:
Semi-annual = 10% ÷ 2 = 5%
Semi-annual compounding periods = 7 × 2 = 14
Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% × (1 ÷ 2) = $330
as we know that
Here We assume the selling price be S
The Present worth of the bond = PW of future cash flows
$9,500 = $330 × P/A(5%, 14) + S × P/F(5%, 14)
$9,500 = $330 × 9.898641 + S × 0.505068
$9,500 = $3,266.55 + S × 0.505068
S × 0.505068 = $6,233.45
= $12,341.80
Esquire Comic Book Company had income before tax of $1,800,000 in 2021 before considering the following material items:
1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $420,000. The division generated before-tax income from operations from the beginning of the year through disposal of $660,000.
2. The company incurred restructuring costs of $85,000 during the year.
Required:
Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25% Ignore EPS disclosures.
Answer:
Esquire Comic Book Company
Partial Income Statement
For the year ended December 31, 2021
Income from continuing operations $1,800,000
Income tax expense ($450,000)
Net income from continuing operations $1,350,000
Discontinued operations Gain/Loss
Loss from disposal ($420,000)
Income from discontinued operations $660,000
Income taxes ($60,000) $180,000
Net income $1,530,000
You just received a bonus at your job of $4,000 which you decide to put in a savings account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks get deposited in the banking system. Round your answers to the nearest dollar.The reserve requirement is 18%, how much will your deposit increase the total value of checkable deposits?If the reserve requirement is 7%, how much will your deposit increase the total value of checkable deposits?Decreasing the reserve requirement _____ the money supply.a. Decreasesb. Increases
Answer:
$22,222.22
$57,142.86
INCREASES
Explanation:
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
If $4000 is deposited and reserve requirement is 18%
reserves would increase by $4000 x 0.18 = 4720
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
$4000 / 0.18 = $22,222.22
$4000 / 0.07 = $57,142.86
It can be seen that the higher the reserve requirement, the lower the increase in the total value of checkable deposit
Which of the following choices represents two consumers?
A grass and grasshopper
B.rabbit and dog
C. mushroom and frog
D.turtle and flower
I need help ASAP
Answer:
Option B
Hope it helps..
The choice that represents two types of customers is B.rabbit and dog.
What kind of customers are rabbits and dogs?Rabbits are a type of customer that will not pay very much for the goods they buy. They prefer cheap things.
Dogs on the other hand, are easier to negotiate with to make profits because they usually accept a price as it is.
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Categorize the statements according to whether they promote economic growth or inhibit economic growth. Promote economic growth Inhibit economic growth clear laws regarding the transfer of property from one person to another the creation of a price floor on sugar the enforcement of trademarks A nation's central bank declares it will print money to pay for government expenditure. the development of regulations that make creating small businesses difficult a corrupt government the use of competitive markets to allocate goods and services
Answer:
Categorization of Statements
Promotion of Economic Growth:
- clear laws regarding the transfer of property from one person to another
- the enforcement of trademarks
- A nation's central bank declares it will print money to pay for government expenditure.
- the use of competitive markets to allocate goods and services
Inhibition of Economic Growth:
- the creation of a price floor on sugar
- the development of regulations that make creating small businesses difficult
- a corrupt government
Explanation:
Economic growth can be increased by the reduction of the borrowing costs and interest rates and encouraging consumer spending and business investments.
The factors that inhibit economic growth also create market inefficiencies. They include lack of basic infrastructure, healthcare, and education, capital flight and economic uncertainties, ageing population, political instability, and rampant corruption.
Pension data for David Emerson Enterprises include the following:_______.
($ in millions)
Discount rate, 12%
Projected benefit obligation, January 1 $ 350
Projected benefit obligation, December 31 485
Accumulated benefit obligation, January 1 320
Accumulated benefit obligation, December 31 435
Cash contributions to pension fund, December 31 170
Benefit payments to retirees, December 31 58
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Service cost million
Answer:
$151 million
Explanation:
Calculation to determine the service cost component of pension expense for the year ended December 31.
Projected benefit obligation, December 31 $485 million
Add Benefit payments to retirees, December 31 $58 million
Less Interest cost ($42 million)
(350*12%)
Less Projected benefit obligation, January 1 ($350 million)
Service cost $151 million
Therefore the service cost component of pension expense for the year ended December 31 will be $151 million
Decision Making: Stormcenter A decision is a choice made from among available alternatives. Decision making is the process of identifying and choosing alternative courses of action. This activity is important because managers need to know how to make effective decisions, sometimes quickly. The goal of this activity is to provide you with problem-solving skills when it comes to issues related to decision making. A storm is on track for a possible hit on a major city and the government has set up a command center to monitor it and make decisions. There is some disagreement between government officials on whether or not an evacuation of the city should be ordered. There is limited time to make a decision and things get quite heated at the storm center. How is the team handling the situation? How would you? At the beginning of the video, Ava does not properly follow the third step of the formal decision-making process. What did she do wrong?
Answer:
The team should take the matter very seriously as the storm effects is unpredictable.
I would take decision to inform the residents of the city about the storm and its intensity. The plans should be made in case if the storm get wild, the relocation can be made with ease.
Ava should discuss all the concerns with the team and she should encourage the team to gather ideas.
Explanation:
The government has the responsibility of the entire city. In case of natural disasters the government is held responsible for not taking the immediate precautionary measures. To avoid the circumstances of heavy disaster in the city, the team should take decisions with and consider all the risks which may affect the city.
A standard measure of leverage is the debt/equity ratio. According to conventional wisdom among financial analysts, a high debt/equity ratio indicates a high risk of insolvency or ultimate bankruptcy; conversely, a low debt/equity ratio indicates that the company is relatively solvent and able to meet its long-term obligations. Please see PowerPoints 59 and 60 in chapter 3 (copied below). In the case of Apple, their debt/equity ratio actually increased from 2002 to 2020. In other words, Apple carries more debt today relative to its equity than it did in 2002. However, very few people would argue that Apple is a riskier company today than in 2002. Please make an argument, supported by data, for why Apple is at least as solvent today as it was in 2002, despite its much higher debt/equity ratio. The argument should not just be supported by data, but you also need to provide either an additional keen insight (addressed to an accounting/finance professional) or do an excellent job explaining the concept to an audience member who is not an accounting/finance professional.
To whom did you address the answer above, to a professional or non-professional?
Answer:
There are three main reasons why Apple is a less risky company in 2020 than it was in 2020:
Apple is sitting on an enormous amount of cash. Apple has over 39 billion in cash, which is a very good amount to meet interest payments and dividend payments, making it very unlikely for the company to become unsolvent in the near future.Apple has a very high market capitalization, which is the total monetary value of the company stock. In fact, Apple is the number one company in the world by market capitalization, with 2.0 trillion dollars of market cap.The value of the stock of Apple has gone up substantially since 2002, sitting currently at 121 USD per share. This represents public confidence in the company from investors, and since Apple has good fundamentals, it is unlikely that the price of the stock will go down substantially in the near future.
A company purchased a new pizza oven for $12,676. It will work for 5 years and has no salvage value. The tax rate is 41%, and annual revenues are constant at $7,192. For financial reporting, the straight-line depreciation method is used, but for tax purposes depreciation is 35% of original cost in years 1 and 2 and the remaining 30% in Year 3. For this question ignore all expenses other than depreciation. What is the tax payable for year one?
A. $2,535 $3,169
B. $4,657 $2,748
C. $2,748 $2,535
Answer:
straight line depreciation rate = $12,676 / 5 = $2,535.20
financial reporting income = $7,192 - $2,535.20 = $4,657 x 41% = $1,909
Accelerated depreciation = $12,676 x 35% = $4,437
taxable income = $7,192 - $4,437 = $2,755 x 41% = $1,130
tax expense for year 1 = $1,130
deferred tax liability for year 1 = $1,909 - $1,130 = $779
financial reporting income = $4,657
taxable income = $2,755
A company making tires for bikes is concerned about the exact width of their cyclocross tires. The company has a lower specification limit of 19.930 mm and an upper specification limit of 20.070 mm. The standard deviation is 0.18 mm and the mean is 20.000 mm. b. The company now wants to reduce its defect probability and run a "six-sigma process." To what level would they have to reduce the standard deviation in the process to meet this target? (Round the answer to 5 decimal places.)
Answer:
Missing word "a. What is the process capability index for the process?"
a. Cpk = Min[USL-μ/3σ, μ-LSL/3σ]
Cpk = Min[(20.070-20)/(3*0.18) ,(20-19.930)/(3*0.18]
Cpk = Min[0.1296, 0.1296]
Hence, process capability index is 0.1296
b. 2 = Min[USL-μ/3σ, μ-LSL/3σ]
2 = Min[(20.070-20)/(3*σ) ,(20-19.930)/(3*σ]
2 = Min[(0.07/3*σ, 0.07/3*σ)]
= Min[0.07/6, 0.07/6]
σ = 0.07/6
σ = 0.0117
Hence, reduced standard deviation level is 0.0117
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities, X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively. X has an expected rate of return of 0.14 and variance of 0.01, and Y has an expected rate of return of 0.10 and a variance of 0.0081. What would be the dollar values of your positions in X and Y, respectively, if you decide to hold 40% of your money in the risky portfolio and 60% in T-bills
Answer:
The answer is "[tex]x=\$240 \ and \ y= \$160[/tex]"
Explanation:
Total amount[tex]= \$1000[/tex]
when [tex]40\%[/tex] a risky portfolio [tex]= 0.4 \times \$1000=\$400[/tex]
calculating the risky portfolio value on [tex](\$400)[/tex]
When [tex]60\%[/tex] consist of x
[tex]\to \$400 \times 0.6\\\\\to \$240[/tex]
When [tex]40\%[/tex] consist of y
[tex]\to \$400 \times 0.4\\\\\to \$160[/tex]
So, the dollar value in [tex]x=\$240 \ and \ y= \$160[/tex]
The rational rule of consumption is to consume more today if the: marginal benefit of a dollar of consumption today is greater than (or equal to) the marginal benefit of spending a dollar plus interest in the future. price of consumption today exceeds the dollar-plus-interest in the future. marginal benefit of a dollar of consumption today is less than the marginal benefit of spending a dollar plus interest in the future. real interest rate in the future is expected to be higher than the real interest rate today.
Answer:
marginal benefit of a dollar of consumption today is greater than (or equal to) the marginal benefit of spending a dollar plus interest in the future.
Explanation:
A rational consumer should consume more today when the marginal benefit of a dollar of consumption today is greater than (or equal to) the marginal benefit of spending a dollar plus interest in the future.
A rational consumer should continue to consume up until the point where the marginal benefit of a dollar of consumption today is equal to the marginal benefit of spending a dollar plus interest in the future
If the marginal benefit of a dollar of consumption today is less than the marginal benefit of spending a dollar plus interest in the future, a rational consumer should postpone consumption until the future.
Two constant growth stocks are in equilibrium, have the same price, and have the same required rate of return. Which of the following statements is CORRECT? a. The two stocks must have the same dividend per share. b. If one stock has a lower dividend yield, then it must also have a lower dividend growth rate. c. None of the above. d. The two stocks must have the same dividend growth rate. e. If one stock has a lower dividend yield, then it must also have a higher dividend growth rate.
Answer:
e. If one stock has a lower dividend yield, then it must also have a higher dividend growth rate.
Explanation:
Rate of return can be defined as the percentage of interest or dividends earned on money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
Two constant growth stocks are in equilibrium, have the same price, and have the same required rate of return. Thus, if one stock has a lower dividend yield, then it must also have a higher dividend growth rate and vice-versa.
Answer:
e. If one stock has a lower dividend yield, then it must also have a higher dividend growth rate.
Explanation:
Because it is the "Correct Answer"
Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $86,000 and Cost of Goods Sold of $452,000.Included in Inventory (and Accounts Payable) are $13,200 of lenses SLC is holding on consignment.Included in SLC’s Inventory balance are $6,600 of office supplies held in SLC’s warehouse.Excluded from SLC’s Inventory balance are $9,600 of lenses in the warehouse, ready to send to customers on January 2. SLC reported these lenses as sold on December 31, at a price of $18,200.Included in SLC’s Inventory balance are $3,800 of lenses that were damaged in December and will be scrapped in January, with zero realizable value.Required:For each item, (a)-(d), prepare the journal entry to correct the balances presently reported. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Seemore Lens Company (SLC)
Journal Entries to correct the balances presently reported:
a) Debit Accounts payable $13,200
Credit Inventory $13,200
To record lenses held on consignment.
b) Debit Office Supplies $6,600
Credit Inventory $6,600
To record office supplies.
c) Debit Inventory $9,600
Credit Cost of goods sold $9,600
To exclude from cost of goods sold lenses in the warehouse for January 2 delivery.
c) Debit Sales Revenue $18,200
Credit Accounts Receivable $18,200
To exclude from sales revenue lenses not yet sold.
d) Debit Cost of goods sold $3,800
Credit Inventory $3,800 (Scrap)
To record the cost of scrap.
Explanation:
a) Data and Analysis:
Reported Inventory = $86,000
Reported Cost of Goods Sold = $452,000
Transactions:
a) Accounts payable $13,200 Inventory $13,200
b) Office Supplies $6,600 Inventory $6,600
c) Inventory $9,600 Cost of goods sold $9,600
c) Sales Revenue $18,200 Accounts Receivable $18,200
d) Cost of goods sold $3,800 Inventory $3,800 (Scrap)
In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information conserning the buses is summarized as follow.
Bus Acquired cost salvage Value Useful Life in Years Depreciation Method
1 1/1/12 $99,100 $7,900 4 Strait-line
2 1/1/12 128,000 11,000 4 Declining- balance
3 1/1/13 66,350 8,800 5 Unit-of-activity
For the declining -balance method, the company uses the double-declining rate. for the units-of-activity method, total miles are expected to be 115,100. Actual miles of use in the first 3 years were: 2013, 23,400; 2014, 32,700; and 2015, 31,900. For Bus #3, calculate depreciation expense per mile under units-of-activity method.(Round answer to 2 decimal places,e.g.$0.50.).
Compute the amount of accumulated depreciation on each bus at December 31, 2014 (Round answers to 0 decimal places, e.g. $2,125.).
2014
BUS 1 $
BUS 2 $
BUS3 $
If bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2012 and 2013? (Round answers to 0 decimal places, e.g.$2,125.).
2012 2013
Depreciation expense $ $
Answer:
1. For Bus #3, calculate depreciation expense per mile under units-of-activity method
Depreciation expense per mile = ((Cost of bus - Salvage value) / Total miles)
= ($66,350 - $8,800) / 115,100 miles
= $0.5 per mile
The depreciation expense per mile is $0.5 per mile.
2. BUS 1
Depreciation for 1 year = (Cost of assets - Residual value) / Useful life
= $99,100−$7,900 / 4 years
= $22,800
Accumulated depreciation = Depreciation for 1 year * 3 years (from 2012 to 2014)
= $22,800 * 3 years
= $68,400
BUS 2
Depreciation rate = (1/4 *100)*2 = 50%
Years Annual Depreciation Accum. depreciation
2012 $64,000(128,000*50%) $64,000
2013 $32,000(128,000-64,000)*50% $96,000
2014 $16,000(128,000-64,000-32,000)*50% $112,000
BUS 3
Accumulated depreciation = Depreciation expense per mile * Total miles of 2013 and 2014
= $0.50 * (23,400 miles +32,700 miles)
= $0.50 * 56,100 miles
= $28,050
3. Depreciation rate = (1/4 *100)*2 = 50%
Years Depreciation Calculation
2012 $48,000 128,000*50%*9/12
2013 $40,000 128,000-40,000*50%
So, the depreciation expense for Bus 2 for 2012 and 2013 is $48,000 and $40,000
Answer 1:
The depreciation expense per mile under units of activity method of Bus=3 :
Depreciation Expense per mile = ((Cost of bus - Salvage value) / Total miles) Depreciation Expense per mile = ($66,350 - $8,800) / 115,100 miles Depreciation Expense per mile= $0.5 per mile
Answer 2: The amount of accumulated depreciation on each bus on December 31, 2014 :
BUS 1Depreciation for 1 year = (Cost of assets - Residual value) / Useful life
Depreciation for 1 year = $99,100−$7,900 / 4 years
Depreciation for 1 year = $22,800
Accumulated depreciation = Depreciation for 1 year * 3 years (from 2012 to 2014)
Accumulated Depreciation = $22,800 * 3 years
Accumulated Depreciation= $68,400
BUS 2
Years Annual Depreciation Accum. Depreciation
2012 $64,000(128,000*50%) $64,000
2013 $32,000(128,000-64,000)*50% $96,000
2014 $16,000(128,000-64,000-32,000)*50% $112,000
Note : Depreciation rate = (1/4 *100)*2 = 50%
BUS 3
Accumulated depreciation = Depreciation expense per mile * Total miles of 2013 and 2014
Accumulated depreciation= $0.50 * (23,400 miles +32,700 miles)
Accumulated depreciation= $0.50 * 56,100 miles
Accumulated depreciation= $28,050
Answer 3: The depreciation expense for this bus in 2012 and 2013:
Years Depreciation Calculation
2012 $48,000 128,000*50%*9/12
2013 $40,000 128,000-40,000*50%
Note : Depreciation rate = (1/4 *100)*2 = 50%
Thus, the depreciation expense for Bus 2 for 2012 is $48,000 and 2013 is $40,000.
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Steve and Holly report the following items for 2020: Dividend income $16,000 Interest income 14,000 Itemized deductions (none of the amount resulted from a casualty loss) (26,000) Business capital gains 2,000 Business capital losses (10,000) In calculating their net operating loss, and with respect to the above amounts only, what amount must be added back to taxable income (loss)
Answer: ($4000)
Explanation:
Based on the information given in the question, the amount that must be added back to taxable income (loss) in calculating their net operating loss, will be:
Dividend income = $16000
Add: Interest income = $14000
Add: Business capital gain = $2000
Less: Business loss = $10000
Less: Itemized deduction = $26000
Taxable loss = ($16000 + $14000 + $2000) - ($10000 + $26000)
= $32000 - $36000
= - $4000
Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans? open‑market sale fractional banking reserve ratio money multiplier discount rate Select the charge the Fed levies on banks borrowing funds that would result in the smallest increase in the money supply. two percentage points above the private level one percentage point above the private level the same as the private level one percentage point below the private level two percentage points below the private level
Answer:
Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans?
discount ratethe discount rate is the interest rate that the Federal Reserve System charges banks for the loans it makes. The overnight rate or the federal funds rate is even lower, but it lasts a few hours only.
Select the charge the Fed levies on banks borrowing funds that would result in the smallest increase in the money supply.
two percentage points above the private levelthe higher the interest rate, the lower the increase in the money supply.
Miracle Green Corporation operates two garden supply stores: A and B. The following information relates to store A: Sales revenue$900,000 Variable operating expenses 400,000 Fixed expenses: Traceable to A and controllable by A 275,000 Traceable to A and controllable by others 120,000 A's segment profit margin is: Multiple Choice $505,000. $105,000. $225,000. $500,000. $380,000.
Answer:
A's segment profit margin is $105,000.
Explanation:
To measure the economic performance of the division, we include other items that the divisional manager can not influence but traceable to the division.
Miracle Green Corporation
Calculation of Store A segment profit margin
Sales revenue $900,000
Less operating expenses ($400,000)
Controllable Contribution $500,000
Less Fixed Expenses
Traceable to A and controllable by A ($275,000)
Controllable Profit $225,000
Less Fixed Expenses
Traceable to A and controllable by others ($120,000)
Segment Profit Margin $105,000
Kevin O’Leary suggests that Jenn and Kelley decrease the price of their product by 50% and sell 10 times as many. That is, he predicts if they drop the price of their product from $40 to $20 they will increase their quantity demanded from 6,000 to 60,000. Calculate the price elasticity of demand for Pursecases using the midpoint formula from this information
Answer:
The price elasticity of demand for Pursecases using the midpoint formula from this information is -2.45.
Explanation:
From the question, we have:
New quantity demanded = 60,000
Old quantity demanded = 6,000
New price = $20
Old price = $40
The formula for calculating the price elasticity of demand is as follows:
Price elasticity of demand = Percentage change in quantity demanded /
Percentage change in price ................ (1)
Where, based on the midpoint formula, we have:
Percentage change in quantity demanded = {(New quantity demanded - Old
quantity demanded) / [(New quantity demanded + Old quantity demanded) /
2]} * 100 = {(60,000 - 6,000) / [(60,000 + 6,000) / 2]} * 100 = 163.636363636364%
Percentage change in price = {(New price - Old price) / [(New price + Old
price) / 2]} * 100 = {(20 - 40) / [(20 + 40) / 2]} * 100 = -66.6666666666667%
Substituting the values into equation (1), we have:
Price elasticity of demand = 163.636363636364% / -66.6666666666667% = -2.45454545454546
Rounding to 2 decimal places, we have:
Price elasticity of demand = -2.45
Therefore, the price elasticity of demand for Pursecases using the midpoint formula from this information is -2.45.
When The price elasticity of demand for Purchase then we are using the midpoint formula from this information is: -2.45.
Elasticity of demandAccording to the Elasticity of demand, are refers to the degree within the change in demand and also when there is a little change in another economic factor, like price or income.
Then New quantity demanded is = 60,000Old quantity demanded is = 6,000
After that New price are = $20
Then Old price is = $40
When The Price elasticity of demand is = Percentage change in quantity demanded / percentage change in price are
Percentage change in quantity demanded = * 100
= * 100
= 163.636363636364%[/tex]
Percentage change in price
= * 100
= * 100 = -66.6666666666667%[/tex]
Then Substituting the values into equation (1), we have:
Price elasticity of demand is =163.636363636364% [tex]-66.6666666666667% = -2.45454545454546[/tex}
Then the Price elasticity of demand is = -2.45
Thus, the value elasticity of demand for Purchase using the midpoint formula from this information is -2.45.
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A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 185 pounds of M and 210 pounds of O. The price of M was $0.03 per pound and the actual price of O was $0.10.
Material Standard Quantity (lbs) Standard Cost/lb. Total Cost
O 0 $0.10 $0
H 125 0.08 10.00
M 75 0.02
1.50 200 $11.50
Is the material mix variance favorable or unfavorable
Answer:
The material mix variance unfavorable.
Explanation:
This can be determined using the following 3 steps:
Step 1: Calculation of the total Standard Cost of Actual Mix of the 3 materials
Standard Cost of Actual Mix of material O = Units of material O used * Standard cost of material O = 210 * $0.10 = $21
Standard Cost of Actual Mix of material H = Units of material H used * Standard cost of material H = 0 * $0.08 = $0
Standard Cost of Actual Mix of material M = Units of material M used * Standard cost of material M = 185 * $0.02 = $3.79
Total Standard Cost of Actual Mix of the three materials = Standard Cost of Actual Mix of material O + Standard Cost of Actual Mix of material H + Standard Cost of Actual Mix of material M = $21 + $0 + $3.79 = $24.70
Step 2: Calculation of the total Standard Cost of Standard Mix of the 3 materials
Standard Cost of Standard Mix of material O = Standard Units of material O * Standard cost of material O = 0 * $0.10 = $0
Standard Cost of Standard Mix of material H = Standard Units of material H * Standard cost of material H = 125 * $0.08 = $10
Standard Cost of Standard Mix of material M = Standard Units of material M * Standard cost of material M = 75 * $0.02 = $1.50
Standard Cost of Standard Mix of the three materials = Standard Cost of Standard Mix of material O + Standard Cost of Standard Mix of material H + Standard Cost of Standard Mix of material M = $0 + $10 + $1.50 = $11.50
Step 3: Calculation of material mix variance
Material mix variance = Total Standard Cost of Actual Mix of the three materials - Standard Cost of Standard Mix of the three materials = $24.70 - $11.50 = $13.20
Since the Total Standard Cost of Actual Mix of the three materials is greater than Standard Cost of Standard Mix of the three materials (i.e. by $13.20), this implies that the material mix variance unfavorable.
Officials from the City of Galveston and State of Texas gathered to celebrate the start of a beach restoration project that involves dumping sand and adding antierosion structures. The first cost of the project is $30 million with annual maintenance estimated at $340,000. If the restored/expanded beaches attract visitors who will spend $6.2 million per year, what is the conventional B/C ratio at the social discount rate of 8% per year
Answer:
The conventional B/C ratio is 1.83.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Officials from the City of Galveston and State of Texas gathered to celebrate the start of a beach restoration project that involves dumping sand and adding antierosion structures. The first cost of the project is $30 million with annual maintenance estimated at $340,000. If the restored/expanded beaches attract visitors who will spend $6.2 million per year, what is the conventional B/C ratio at the social discount rate of 8% per year. Assume the State wants to recover the investment in 20 years.
Explanation of the answers is now given as follows:
From the question, we have:
First cost = $30 million, or $30,000,0000
Estimated annual maintenance cost = $340,000
Expected annual revenue = Amount to spend per year by the visitors = $6.2 million, or 6,200,000
r = social discount rate per year = 8%, or 0.08
n = number of recover the investment years = 20
Incorporating the formula for calculating the present value of an ordinary annuity, we have:
B = Present worth of annual revenue = Estimated annual revenue * ((1 - (1 / (1 + r))^n) / r) = $6,200,000 * ((1 - (1 / (1 + 0.08))^20) / 0.08) = $60,872,513.93
C = Present worth of cost = First cost + (Estimated annual maintenance cost * ((1 - (1 / (1 + r))^n) / r)) = $30,000,0000 + ($340,000 * ((1 - (1 / (1 + 0.08))^20) / 0.08)) = $33,338,170.12
B/C ratio = B / C = $60,872,513.93 / $33,338,170.12 = 1.83
Therefore, the conventional B/C ratio is 1.83.
Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 2,000 $ 5 For the current year: Purchase, March 21 5,000 6 Purchase, August 1 3,000 8 Inventory, December 31, current year 4,000 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods.
Answer:
Total unit sold = Opening balance + Purhase in march + Purchase in August - Closing balance
Total unit sold = 2000 + 5000 +3000 - 4000
Total unit sold = 6000 units
1. FIFO method:
So total cost of goods sold is (2000*$5) + (4000*$6)= $34,000
Ending inventory value is (1000*$6) + (3000*$8) = $30,000
2. LIFO method:
So total value of goods sold is (3000*$8) + (3000*$6) = $42,000
Ending inventory value is (2000*6) + (2000*$5) = $22,000
3. Average cost of inventory:
Opening inventory (2000* $5) + Purchase on Mar.21 (5000*$6) + Purchase on August 1 (3000*$8) = $64,000
Total units = 2000 + 5000 + 3000
Total units = 10,000
Average cost is $64,000/10,000 (units) = $6.40 per unit
So, Cost of goods sold is 6000*$6.40 = $38,400
Ending Inventory value is 4000*$6.40 = $25,600
A pharmaceutical company in Belgium decides to expand into additional markets. It conducts research and decides to focus on marketing and delivering its products to Hungary and the Czech Republic. In order to be successful, the company recognizes it must translate its marketing, product instructions, and packaging into the local languages. In addition, the company decides to partner with local advertising companies to make sure its marketing and advertising is customized to fit the preferences of the local markets. The pharmaceutical company has chosen to use which type of marketing strategy to expand globally?
a. centralization strat
b. localization strat
c. standardization strat
Answer:
C) standardization strategy
Explanation:
standardization strategy can be regarded as one whereby a business owner or firm give same treatment to the whole world as if it's just one market that have just small meaningful variation It's base on an assumption that needs of people can be met with a product.
Proprietary technology is technology that is a. widely used because it is easy to learn. b. widely used because the government subsidizes its use. c. not widely used because people could, but have not, taken the time to learn how to apply it. d. not widely used because it is known or controlled only by the company that discovered it.
Answer:
d. not widely used because it is known or controlled only by the company that discovered it.
Explanation:
Technology can be defined as a branch of knowledge which typically involves the process of applying, creating and managing practical or scientific knowledge to solve problems and improve human life. Technologies are applied to many fields in the world such as medicine, information technology, cybersecurity, engineering, environmental etc.
Proprietary technology is peculiar to a particular company.
Proprietary technology is technology that is not widely used because it is known or controlled only by the company that discovered it.
While implementing an affirmative action plan, an employer is expected to do all of the following except:establish objectives that can be met by applying good faith efforts.set quotas for the underrepresented groups, and ensure they are met even if it is necessary to hire a less qualified candidate.make all employment decisions in a nondiscriminatory manner.ensure that hiring objectives do not establish a floor or a ceiling for employment of certain groups.
Answer:
set quotas for the underrepresented groups, and ensure they are met even if it is necessary to hire a less qualified candidate.
Explanation:
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
While implementing an affirmative action plan, an employer is expected to do all of the following;
I. Establish objectives that can be met by applying good faith efforts.
II. Make all employment decisions in a nondiscriminatory manner.
III. Ensure that hiring objectives do not establish a floor or a ceiling for employment of certain groups.
Activity Expected Costs Expected Activity Handling materials $ 625,000 100,000 parts Inspecting product 900,000 1,500 batches Processing purchase orders 105,000 700 orders Paying suppliers 175,000 500 invoices Insuring the factory 300,000 40,000 square feet Designing packaging 75,000 2 models Required: 1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January 2017, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate.
Answer and Explanation:
The computation is shown below:
1. Plant wide overhead rate = Budgeted Overheads ÷ Budgeted Activity.
where,
Budgeted Overheads :
Handling materials 625,000
Inspecting product 900,000
Processing purchase orders 105,000
Paying suppliers 175,000
Insuring the factory 300,000
Designing packaging 75,000
Total Cost 2,180,000
And, the budgeted activity is 125,000
So, Plant wide overhead rate is
= Budgeted Overheads ÷ Budgeted Activity.
= $2,180,000/125,000
= $17.44 per direct labor hour
Now Assignment of Overheads
As Deluxe model required 2,500 direct labor hours
So, Deluxe model = 2,500 × $17.44
= $43,600
As Basic model required 6,000 direct labor hours
So, Basic model = 6,000 × $17.44
= $104,640
Apartments is a ​-unit apartment complex. When the apartments are​ 90% occupied, monthly operating costs total $220,040. When occupancy dips to​ 80%, monthly operating costs fall to $215,480. The owner of the apartment complex is worried because many of the apartment residents work at a nearby manufacturing plant that has just announced it will close in three months. The apartment owner fears that occupancy of her apartments will drop to 55​% if residents lose their jobs and move away. Assuming the same relevant​ range, what can the owner expect her operating costs to be if occupancy falls to ​55%?
Answer:
Missing word "Use the high-low method to determine operating cost equation y=$_____, x + $ = ____"
Cost on (800*90%)=720 units is 220,040
Cost on (800*80%) = 640 Units is 215,480
Variable cost per unit = Changes in total cost/High activity-low activity = 4560 / 80 = $57 per unit
Fixed cost = Total cost - Variable cost = 220,040 - (720*$57) = 220,040 - 41,040 = $179000
Cost equation:
Total cost = Fixed cost + Variable cost per unit
Y = 179000 + 57X
Y = 179000 + (57*440)
Y = $204,080
Jessica Adams is 21 years old and has just graduated from college. In considering the retirement investing options available at her new job, she is thinking about the long term effects of inflation. Explain the effect of long term inflation on meeting retirement financial planning goals. If long term inflation is expected to average 4% per year and you expect a long term investment of 7% per year- what is Jessica's long term expected real rate of return (adjusted for inflation)
Answer:
The summary as per the given query is summarized in the explanation section below..
Explanation:
The given values are:
The nominal rate of return,
= 7%
i.e.,
= 0.07
Inflation,
= 4%
i.e.,
= 0.04
Lengthy-term inflation would lessen the return on investment that lowers the net return as long-term investments are made.It can also aim to obtain a higher return that will comfortably exceed the rate of inflation and therefore is beneficial towards diminishing the average return.Now,
The rate of return will be:
= [tex](\frac{1+ nominal \ rate \ of \ return}{1+Inflation}) -1[/tex]
On substituting the values, we get
= [tex](\frac{1+0.06}{1+0.04} )-1[/tex]
= [tex](\frac{1.07}{1.04} )-1[/tex]
= [tex]1.028846-1[/tex]
= [tex]2.8846 \ percent[/tex]
Therefore it isn't able to measure the average return rate because the quantity of years for its expenditure.
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 40,000 shares of common stock for cash. Paul also had 6,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Paul also had 420, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $270,000 with a 40% tax rate. Common shareholders received $1.20 per share dividends after preferred dividends were paid in 2021.
Required: Compute basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
Answer:
Basic EPS = [$270,000 - (6% * $100 * 6,000)] / [100,000 + 40,000 * 3/12]
Basic EPS = [$270,000 - $36,000] / 35,000
Basic EPS = $234,000 / 35,000
Basic EPS = 6.685714285714286
Basic EPS = 6.69
Diluted EPS = [$270,000 + ($420,00*8%*60%)] / [100000 + 40,000 * 3/12 + (420*30) + (6,000*3)]
Diluted EPS = [$270,000 + $2,016] / [35,000 + 12600 + 18,000]
Diluted EPS = $272,016 / 65,600
Diluted EPS = 4.146585365853659
Diluted EPS = $4.15