Investing in infrastructure. By investing in roads, bridges, public transportation systems, and other infrastructure projects, the government can help to create a more efficient and productive economy.
What is infrastructure ?Infrastructure is the basic physical and organizational structures needed for the operation of a society or enterprise, such as transportation and communication systems, water and power lines, and public institutions including schools, post offices, and hospitals. It can also refer to the set of services, such as sewage treatment plants and police departments, required to sustain a community.
These investments can reduce the cost of transportation for businesses, allowing them to move goods and services more quickly and efficiently. Additionally, infrastructure investments can create jobs in construction and related industries, providing additional economic stimulus. Finally, infrastructure investments can help to attract new businesses to an area, increasing competition
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If the number of consumers in the market for good a increases, what will happen to the equilibrium price and quantity of good a?
The supply will decrease. The increase in supply will, if all else stays the same, lead to a drop there in equilibrium price and a rise in the quantity needed. As the supply shrinks, so will the equilibrium price.
What occurs if a good is produced by both producers at the market equilibrium?Since the balance amount won't be known, the typical price will rise. If both consumers and businesses expect prices to rise soon, the equilibrium price will rise.
In the event that a product's manufacturing cost increases, what happens to the equilibrium quantity and price?As a result, the equilibrium quantity and price of the product market decrease. As a result, when input prices decrease, the entire short - run aggregate moves towards the right, lowering the equilibrium price and increasing the equilibrium quantity.
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candy originally marketed as a smoking cessation aid
PEZ was once only marketed to adults because it was initially designed to aid smokers in quitting their habit. Usually, the early advertising featured racy pinup females in an effort to appeal to an older audience.
What did PEZ candy's initial advertising say?In the 1920s, Edward Haas III created PEZ in Vienna, Austria. The name was derived from the letters in the peppermint-sounding German word pfefferminz. In 1935, Haas erected a plant in Czechoslovakia and first advertised his product to adults as a breath freshener and a substitute for cigarette smoking.
How did PEZ differ from smoking?The sweets were initially packaged in metal tins or foil-wrapped paper rather than dispensers. Haas aimed to develop a tablet computer that would.
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when companies report earnings that are only a few cents below their previous estimates, why do their stock prices go down by so much?
Investors are unsure of whether the company's failure to fulfill expectations was due to coincidence or bad luck or if it was an indication that management was covering up more serious issues.
'What is Stock Price?'
The price at which a share of stock is currently trading on the market is referred to as the stock price.
When shares of a publicly traded firm are issued, their value is assigned a price that, ideally, represents the worth of the company itself. A stock's price will fluctuate in response to a variety of circumstances, such as shifts in the overall economy, shifts in specific industries, political developments, armed conflict, and environmental changes.
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all of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc, is called ?
Personal finance is the term used to describe all financial choices and actions made by a person or family, including budgeting, spending, and saving.
What's the most accurate way to define financial literacy?The capacity to apply information and skills to manage monetary capacity successfully for a life of financial well-being is known as financial literacy. This concept emphasizes the value of ability and discusses knowledge, skills, and changes in one's outlook on life.
Who or what is an entity that exchanges products for services?Individuals or organizations that utilize or consume goods and services are referred to as consumers. Customers are the buyers who make purchases of goods and services in the economy. Customers can be individuals or groups.
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the income tax rate is 30% for year 1 and future years. there are no other temporary or permanent differences. in its december 31, year 2, balance sheet, what amount should tower report as a liability for deferred income taxes?
In its December 31, Year 2 balance sheet, Tower should report the amount of deferred income taxes as a liability.
What amount should tower report as a liability for deferred income taxes?Deferred income taxes are the result of temporary differences between the financial reporting of income taxes and the actual income taxes paid to the government. In this case, Tower is reporting income at a 30% tax rate for Year 1 and future years, but the actual income tax rate may be different.If the actual income tax rate for Year 1 is lower than 30%, Tower will have a deferred tax liability, meaning it will owe more taxes in the future. The amount of the deferred tax liability would be the difference between the financial reporting income tax rate (30%) and the actual income tax rate multiplied by the taxable income for that year.On the other hand, if the actual income tax rate for Year 1 is higher than 30%, Tower will have a deferred tax asset, meaning it will receive a tax refund in the future. The amount of the deferred tax asset would be the difference between the actual income tax rate and the financial reporting income tax rate (30%) multiplied by the taxable income for that year.It is important to note that the deferred tax liability or asset should be based on the enacted tax laws and rates that are expected to be in effect when the deferred taxes are expected to be settled.To learn more about income tax refer:
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a musical instrument manufacturer is considered the best in the industry in terms of human resource management and its excellent supply chain that assures the company will deliver products on time. which macro strategy does this company demonstrate to achieve a sustainable competitive advantage?
Operational excellence is the plan for Niro music to gain a competitive advantage.
Early in the 1970s, Dr. Joseph M. Juran introduced the concept of operational excellence while educating Japanese industry leaders on how to improve quality. It was defined in the United States in the 1980s in reaction to "the crisis" experienced by large, established firms, whose market share was decreasing as a result of high-quality items imported from Japan.
An excellent workplace culture can be fostered using certain strategies and ideas that are part of the operational excellence style of thinking. Each employee must be able to recognise, provide for, and improve the flow of value to a client for there to be operational excellence.
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economics is the study of: a. what is good and what is bad. b. how to make everyone rich. c. trade-offs when making decisions. d. how to make the world most productive.
Economics is the study of trade-offs when making decisions. Scarcity is the main concept in economics.
The study of economics focuses on how we make decisions in the face of scarcity and how those decisions influence our behavior. We must make challenging decisions about how to allocate few resources to suit our needs and wants as people, families, and nations. Economists investigate how these decisions are made in different contexts, assess the results in terms of efficiency, equity, and stability, and look for different ways to organize the economy that can result in greater living standards or a more desired distribution of material well-being.
There are two types of economics
MacroeconomicsMicroeconomicsMicroeconomics: The study of specific markets, such as those for higher education, health care, communications, and pollution permits.
The area of economics known as macroeconomics focuses on how an economy functions as a whole.
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when reconciling a bank account in qbo, where does the value of the register balance come from?
You check the quickly gaining in QuickBooks before commencing any account reconciliation. It is the balance in the bank at the start of the time frame you are considering.
What exactly does reconciling mean?1 a: to reinstate harmony or friendship to resolve or adjudicate (differences) 2: to bring into conformity or harmony 3: to make someone submit to or embrace something unpleasant 4: to verify the accuracy of (a financial account) by comparing it to another.
What do we have to make amends?The accounting procedure of reconciliation makes sure that the real amount spent and the amount reported as leaving an accounts at the conclusion of a fiscal period are the same. Reconciliation is a process that both individuals and organizations use on a regular basis to look for mistakes or fraud.
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the trade of things of value between buyer and seller so that each is better off after the trade is referred to as
The trade of things of value between buyer and seller so that each is better off after the trade is referred to as distribution exchange.
The trade is the business term which is defined as the buying and selling of the products or services. The trade is also known as in simple term as the business of selling products to the consumers, the consumers will be retailer, broker, and customers.
The distribution exchange is the term which is defined as the distribution of the high quantity stocks or products into the market or smaller group of sellers which sell orders for the security purposes and reduce its price.
The distribution exchange is also performed for the buyer products or services instead of money by selling own products to the retailer.
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more and more people are purchasing food from farmers' markets. as a consequence, a market researcher predicts that the number of farmers' markets will increase by 15% each year. if there are 5,992 farmers' markets this year, how many will there be in 5 years?
Consequently, there are 6953.96=6954 farmers' markets after five years.
According to information provided to us, there will be 5992 farmers' markets with a 15% growth rate per six months.
The amount of farmers' markets in five years must be determined.
There are 8185 farmers listed as the beginning value, P0.
15% every year, or 0.015 per year, is the growth rate (r).
We're interested in the number of farmers' markets after five years, or after five and a half times two (six month period).
As a result, there are 10 time periods.
Let's calculate the number of farmers' markets five years from now.
Since there is exponential expansion, there will be more farmers' markets in five years.
[tex]& f(x)=P_0(1+r)^n \\& =5992 *(1+0.015)^{10}[/tex]
=6953.96
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Farmers' markets are becoming increasingly popular places to buy food. If there are 5,992 farmers' markets this year, there will be 12,048.0296 people in 5 years.
The numbers of people that will be in the upcoming 5 years are computed as:
= 5992*(1+15%)^5
= 12,048.0296
Advertising and marketing is a hobby, a set of establishments, and methods for growing, speaking, handing over, and exchanging offerings which have cost for customers, clients, partners, and society at huge. advertising is the method of exploring, creating, and turning in price to meet the needs of a target marketplace in terms of goods and offerings; probably which include a variety of a target audiences; choice of sure attributes or issues to emphasize in marketing; operation of advertising campaigns.
Attendance at trade suggests and public occasions; design of merchandise and packaging appealing to buyers; defining the phrases of sale, which include charge, reductions, guarantee, and go back policy; product placement in media or with human beings believed to persuade the shopping for behavior of others; agreements with shops, wholesale vendors, or resellers; and attempts to create awareness of, loyalty to, and superb emotions about an emblem. marketing is commonly accomplished by way of the seller, usually a store or manufacturer.
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"Blast it!" said David Wilson, president of Teledex Company. "We’ve just lost the bid on the Koopers job by $3,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid. "
Teledex Company manufactures products to customers’ specifications and operates a job order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year:Complex tavble cannot copy
Based on direct staff costs, Pearson Architectural Design allocates studio overhead to Work in Process using a job-order costing system.
What justification exists for applying manufacturing overhead expenses to work in progress?
Based on c. actual hours spent, manufacturing overhead expenses are applied to work in progress. To allocate overhead costs, manufacturing businesses employ their planned overhead rates and the actual number of the overhead driver unit (usually direct labor or machine hours).
How can you tell if manufacturing overhead is being applied correctly or not?
Manufacturing overhead is underapplied and the resulting cost of goods sold is overstated if there is a debit balance. This is the adjusting entry: If the cost of manufacturing has a credit balance, the cost is overused, overstating the quantity of expense of things sold as a result.
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the triple bottom line is economic prosperity, environmental stewardship, and social responsibility. modern companies need to focus on which aspect of the triple bottom line?
Corporate social responsibility is emphasized by the triple bottom line. It prods businesses to take into account both the fixation with profits and social and environmental repercussions.
TBL advises putting equal emphasis on the three Ps: profit, planet, and people. TBL was created by John Elkington as an accounting framework in 1994. Elkington was both a novelist and an entrepreneur. In terms of social, environmental, and economic elements of company, TBL seeks to combine sustainable accounting. All companies want to appear green in the face of mounting societal pressure. But not everyone is willing to forgo financial gain.
The triple bottom line (TBL) approach advocates incorporating economic, environmental, and social goals into financial ones.
TBL also highlights the need of profitability because businesses must pay their employees, operational creditors, and lenders.
Businesses must ensure that the area is clean and that their operations don't negatively impact the environment. TBL highlights the contentious topic of toxic waste disposal. Sustainable trash disposal is significantly more expensive.
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question mode multiple choice question what is the current value of a future amount based on a certain interest rate and a certain time period? notice that the future value is already known. you want to find the current value of that amount.
The current value of a future amount based on a certain interest rate and a certain time period is the future value is already known.
The interest rate is the proportion of the loan which is charged as the interest to the borrower refers to expressed as an annual percentage of the loan outstanding. It is the reduced interest rates encourage people to spend the money on the home improvement.
The current value of a future amount based on a certain interest rate and a certain time period the future value is already known is the value of a future amount at the present time which is found by applying compound interest over a specified period of time.
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highjinks, incorporated, has provided the following budgeted data: what is the company's margin of safety as a percentage of sales? multiple choice
18,334 units will need to be sold by the company. Any expense with a changeable amount is a variable expense. Among the varied costs are those for food, transportation, and entertainment.
What do variable costs entail?Rent, mortgage payments, and auto payments are examples of fixed expenses that typically cost the same each month. In contrast, variable expenses are those that vary from month to month (dining out, medical expenses, groceries, or anything you buy from a store).
We start by calculating the desired operating income.
Sales times 5% of operating income.
(20,000 * 100) * 5% = $100,000
Using the equation below, we will now calculate the amount backwards:
Operating Income = Sales - Variable Expense - Fixed Expense.
sold units divided by 100 minus 70 equals 100,000 plus 450,000.
Units sold multiplied by (100 - 70) to get 550,000.
550,000 sold units / 30 is 18,333.3333
18,334 units will need to be sold by the company.
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Full Question = Highjinks, Inc., has provided the following budgeted data:
Sales 20,000 units
Selling price $100 per unit
Variable expense $70 per unit
Fixed expense $450,000
How many units would the company have to sell in order to have a net operating income equal to 5% of total sales dollars?
ms. penser resides in the city of lanock, tennessee. she owns 100% of the stock of psw incorporated, which is incorporated under tennessee law and conducts business in six different local jurisdictions in tennessee. 1. how many taxpayers are identified in the above statement of facts? numerical answer only please, no decimals.
She is the sole shareholder of PSW Inc., a Tennessee-based company with locations in six distinct municipal governments.
What is a stakeholder, and give an example?
Any number of people who are interested in or impacted by the project may be considered stakeholders. An owner or shareholder, for example, could be considered a stakeholder. Stakeholders include, among others, customers, suppliers, bondholders, vendors, and employees. Shareholders are a type of stakeholder. Stakeholders are any people or organisations that are impacted by a project, initiative, policy, or organisation, whether positively or negatively. They could be internal (employees employed by your business) or external (people outside of your organisation).
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do you think managing hospitality and tourism organizations is different than managing manufacturing organizations and why?
Organizations that engage in hospitality, travel, media, sports, health care and entertainment are service-providing organizations whereas While manufacturing operations focus on producing goods and storing them at a warehouse before delivering them to customers.
While manufacturing operations focus on producing goods and storing them at a warehouse before delivering them to customers, service-providing operations facilitate simultaneous production and consumption of services.First, manufacturing organizations produce physical, tangible goods that can be stored in inventory before they are needed. By contrast, service organizations produce intangible products that cannot be produced ahead of time.There are five main differences between service and manufacturing organizations: the tangibility of their output; production on demand or for inventory; customer-specific production; labor-intensive or automated operations; and the need for a physical production location.
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on december 1, year 1, clark co. entered into a 5-year operating lease for office space at a monthly rental of $60,000. on the same date, clark paid the lessor the following amounts: first month's rent $ 60,000 last month's rent 60,000 security deposit (refundable at lease expiration) 80,000 installation of new walls and offices 360,000 what should be clark's year 1 total lease-related expense for the office space?
Clark's year 1 total lease-related expense for the office space is $66,000. Therefore option B is correct.
What is operating lease?An operating lease is a legal arrangement that authorizes the use of property without taking possession. These leases let companies use the asset without having to pay the hefty costs incurred by purchasing it.
The company leasing the asset is referred to as the lessee, and the company lending it out under a lease is referred to as the lessor. The tenancy agreement and associated documentation specify the obligations of each party, but roughly speaking, the lessee is liable for keeping the asset to keep it in operating mode, minus any expected deterioration or damage.
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As a marketing manager plans new products to meet consumer needs, she should
a) study previous new product launches to learn from the pas successes and failures
b) focus entirely on creating a new industry
c) simply copy the new products of her competition
d) utilize technology to create the most advanced products regardless of what the consumer wants
To learn from past product launches' successes and failures, conduct research.
Which component of the marketing mix is used to communicate with customers?Promotion. The communications that take place between a company and a customer are referred to as "promotion" within the context of the marketing mix. The company's messages as well as the messages that customers send to the general public about their experience are all examples of promotion.
The process of transferring products from the seller to the buyer is referred to as what kind of marketing function?One of the four components of the marketing mix is distribution, also known as location. A distributor is a company that is involved in the distribution stage of the value chain. Distribution is the process of making a product or service available to the consumer or business user who needs it.
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explain four ways in which marketing for a rental car company differs from marketing for an automobile dealership.
Renting and buying cars are different businesses. Buying a car emphasizes the product, whereas renting a car emphasizes the service.
Retailers sell goods and services. Both products and services meet customer wants, yet they differ. Retailers sell products and services like optical centers and restaurants.
The best four digital automobile marketing tactics to spread the word about your dealership and boost sales:
Video Marketing: Automotive video content reigns. Before picturing oneself in a new car, many car shoppers need to see and feel it.
Online Review Management: Auto marketers should monitor dealership review sites. If your consumers are happy, serious auto buyers will choose your dealership on these platforms. Online reviews are equally potent as peer recommendations, but they can reach thousands of people.
Creating a user-friendly web experience: Your website should also consider SEO. Keywords in the site and blog text will help you rank better for relevant queries and provide vehicle shoppers with solutions. Your target audience may want "highest gas mileage" or "top luxury autos."
SMS Marketing: Catering to this customer behavior can put you ahead of your competitors, as roughly 80% of Americans own smartphones and most online traffic comes from mobile devices. All text message marketing efforts have an 82% open rate since smartphone consumers spend hours on their phones. SMS marketing lets you reach potential clients on a platform where they actively seek messages.
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the registration of a broker-dealer may be revoked for all of the following reasons except the firm: a effects short sales in non-exempt securities b does not maintain required records c does not file financial reports with the administrator d does not file advertising with the administrator
The correct answer is b) does not maintain required records. Except for the company failing to keep required records, any of the following may result in the cancellation of a broker-registration dealer's.
Companies that engage in stock loan activity could record a "short" position in their books and records, indicating that a stock loan of a security has been made to a client or another broker-dealer.
The Securities and Exchange Commission regulates stock exchanges, brokers and dealers in securities, investment advisers, and mutual funds in an effort to encourage ethical business practises, the public disclosure of crucial market information, and the avoidance of fraud. According to the recordkeeping rules, businesses must keep communications pertaining to their "business as such," which includes trade blotters, asset and liability ledgers, income and expense ledgers, capital account ledgers, customer account ledgers, securities records, order tickets, and trade confirmations.
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suppose the market for white grapes is a perfectly competitive constant cost industry. what is the long run effect of a permanent increase in the demand for white grapes?
The long-term effects of a persistent rise in white grape demand would be an increase in market price and an increase in supply in a fully competitive constant cost sector.
The market price of white grapes will rise along with the demand for them. The increased pricing will encourage current businesses to grow their white grape production while also luring new businesses to the market. The supply of goods and services will rise as more businesses enter the market. The market price will ultimately drop and stabilise at the long-run equilibrium price, where the amount provided and the quantity sought are equal. This happens as a result of the rise in supply. Over time, all businesses will only see typical earnings. Additionally, when market prices rise, businesses will be motivated to expand their production capacities, which will lower the average cost of production.
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can i dispute a debit card charge that i willingly paid for
Customers have the ability to contest credit card charges in some situations, even those involving things they knowingly bought. However, it is unfair to retailers to abuse this power by contesting when it is not necessary because they risk being held liable for the cost of the item plus a refund fee.
Can I contest an unauthorized charge?You get the right as either a customer to contest a credit card transaction, regardless of whether there was an error, a fraudulent payment, or a problem with the products or services rendered. You can challenge credit card charges by phoning the credit card company, and also some credit cards also let you lodge disputes internet or by mail.
How do banks look into issues involving debit cards?Reviewing the transaction is the responsibility of the bank or credit union that issued the card data and determining the veracity of a customer's allegation of fraud. The credit union or the bank may get in touch with the retailer and demand evidence that debit card holder approved the charge.
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a team that achieves high levels of task performance, membership satisfaction and future viability is called a(n)
An effective team is one that excels at task performance, the member satisfaction, and long-term survivability.
Every great organization is built on strong teams. Businesses that lack cohesive teams frequently suffer, whereas organizations with strong teams are more productive and efficient, help to improve quality, and promote project completion. The development of a team where each member provides their unique abilities and skills that contribute to the success of the group is necessary for a business to operate at its best.
Allowing open and honest communication between team members is one of the most crucial team-building techniques you can do.
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which of the dimension of the triple bottom line considers such stakeholders as employees, the local community and other entities that are impacted by the firm's existence?
Social Dimensions considers such stakeholders as employees, the local community and other entities that are impacted by the firm's existence
Social dimensions refer to the various aspects of human society and how people interact with one another. These can include factors such as culture, gender, race, class, and religion, among others. These dimensions help to shape how individuals and groups understand and experience the world around them, and can have a significant impact on how people interact with one another. Understanding social dimensions is important in fields such as sociology, anthropology, and psychology, as well as in many other areas of study and research.
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which of the following statement is true? multiple choice operating leverage refers to a company's ability to increase its sales volume while decreasing its total fixed cost. operating leverage may help a company increase its profitability but it cannot decrease profitability. a company that has only variable cost cannot benefit from operating leverage. to benefit from operating leverage a company must have both fixed and variable costs.
A business with mainly variable costs is unable to take advantage of operating leverage.
What is sales volume?Units sold by your business in a certain reporting period are referred to as sales volume. Depending on the amount of sales volume you want to monitor, this period could be a month, a quarter, or a year. Sales volume is a common metric used by investors to determine whether a business is expanding or declining. Sales volume and sales revenue are two different things. Sales volume describes the quantity of goods sold over a specific time frame, sometimes a quarter or a year. However, sales revenue tracks how much money a business makes over a specific period of time. The number of units of a product that your business sells over the course of a given reporting period is known as the sales volume.To learn more about sales volume refer to:
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central bank money refers to part 2 a. currency held by people plus reserves held by banks. b. the money that the central bank has issued. c. the liabilities of the central bank. d. all of the above. e. a and c only. part 3 central bank money differs from money in general in that excludes
The correct answer is b). money that the government's central bank has printed. In contrast to common money, central bank money does not include checkable deposits.
Paper money is the most significant component of a nation's financial system.. Traveler's checks (issued by non-banks), demand deposits, and other checkable deposits (OCDs), such as NOW accounts at depository institutions and credit union share draught accounts, are also included in the M1 category.
Money that is extremely liquid, such as cash, checkable (demand) deposits, and traveler's checks, is included in the M1 money supply. The M1 money supply adds savings and time deposits, certificates of deposits, and money market funds make up the less liquid M2 money supply.
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Please select Yes/NO and explain briefly:
1. Is it sustainable to think that Emiratis, which make up only about 15 percent of the people in Dubai, can be leading the city as they have been for so long?
2. Integrating 160 different nationalities into one corporation, such as The Emirates Group, has challenges and opportunities. What challenges do you see? What opportunities come from this diverse workforce?
3. Compared with 10 years ago, expatriate employees stay twice as long in Dubai, about five years, before they return to their home country or another foreign location. Do you think more expatriates will stay longer in Dubai as the city continues to develop into a world-class location?
People prefer to be in a good governance, so if Dubai keeps growing into a world-class metropolis, expatriates may even consider relocating there permanently.
How long do foreigners reside in Dubai?
In its most recent analysis, the specialized recruiter Robert Half found that, as a result of new regulations and activities aimed at assisting foreigners, the average length of stay for expats has climbed from three years to roughly eight to ten years.
Dubai has a large expat population; why?
With more than 200,000 new arrivals each year, Dubai draws expats from all over the world. While some may find the expense of lodging to be prohibitive, the abundance of appealing housing options, excellent wages, and cheap taxes encourage many people to relocate to Dubai and experience the expat way of life.
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why do the current us depreciation methods vastly simplify the accounting that is required in real company situations?
The current US depreciation methods are designed to simplify the accounting required in real-world company situations but may not accurately reflect the actual depreciation of an asset in a real-world company situation.
The current US depreciation methods such as the Modified Accelerated Cost Recovery System (MACRS) and the straight-line method, are designed to simplify the accounting that is required in real-world company situations by assuming that assets lose value at a consistent rate over time and this rate can be estimated using predetermined schedules.
This simplification allows companies to easily estimate the depreciation expense they will incur each year, which can be used to calculate net income and other financial metrics.
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frontier corporation sells units for $54, has unit variable costs of $27, and fixed costs of $124,000. if frontier sells 10,000 units, what is its degree of operating leverage?
Degree of operating leverage (DOL) is a measure of how much a company's operatin
It is calculated by dividing the percentage change in EBIT by the percentage change in revenue.g income (EBIT) will change in response to a change in revenue.
To calculate DOL for Frontier Corporation, we first need to determine the company's operating income (EBIT) at a sales volume of 10,000 units. We can do this by subtracting the company's variable costs and fixed costs from its revenue:
EBIT = Revenue - Variable Costs - Fixed Costs
EBIT = $54 x 10,000 - $27 x 10,000 - $124,000 = $210,000
Next, we need to calculate the percentage change in EBIT if sales volume changes by 1%. To do this, we can use the following formula:
DOL = (percentage change in EBIT / percentage change in revenue)
Let's say that the company's sales volume increases by 1%, from 10,000 units to 10,100 units.
New Revenue = 10,100 units * $54/unit = $546,400
New EBIT = $546,400 - $27 x 10,100 - $124,000 = $210,300
Percentage change in EBIT = (New EBIT - Old EBIT) / Old EBIT = ($210,300 - $210,000) / $210,000 = 0.0014
Percentage change in revenue = (New Revenue - Old Revenue) / Old Revenue = ($546,400 - $540,000) / $540,000 = 0.0111
DOL = (0.0014 / 0.0111) = 0.1257
Therefore, the degree of operating leverage for Frontier Corporation is 0.1257, meaning that a 1% change in revenue results in a 0.1257% change in operating income. A lower DOL indicates that a company has less risk, as its operating income is less sensitive to changes in revenue.
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Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor hours to be 50,000. During February, Morrow has 4,200 direct labor hours and 8,000 machine hours. What is the predetermined overhead rate?1. $12. 40 per direct labor hour2. $3. 44 per machine hour3. $147. 62 per direct labor hour4. $77. 50 per machine hour
$15.50 per hour of direct work The price of an item is determined using standard costing. In this method, a product's actual direct expenses are added to a typical overhead rate.
Describe a typical costing system.?By assigning costs to commodities by the materials, labour, and overhead required in their production, normal costing is a method of cost allocation. Using three separate cost criteria, it is a method for determining the price of a product that is being produced.
What is the case with regular costing?In a typical costing method, the only costs that are utilised to calculate unit cost are the true cost of inventory items, direct material, and overhead. Unit costs are calculated using a typical costing system that includes anticipated raw costs, estimated direct labour, and real overhead.
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