The expected total sales dollars for September's sales budget are $166,400.
To calculate the expected total sales dollars for September's sales budget, we first need to calculate the expected unit sales for September.
August sales = 8,000 units
Expected growth rate = 4%
Expected September sales = August sales x (1 + expected growth rate)
Expected September sales = 8,000 x (1 + 0.04)
Expected September sales = 8,320 units
Now, we can calculate the expected total sales dollars for September's sales budget:
Expected September sales = 8,320 units
Selling price per unit = $20
Expected total sales dollars for September = Expected September sales x Selling price per unit
Expected total sales dollars for September = 8,320 x $20
Expected total sales dollars for September = $166,400
Therefore, the expected total sales dollars for September's sales budget are $166,400.
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On May 1, Swimm Company sold merchandise to Lochte and received a $66,000 (face amount), one-year, non-interest-bearing note. The market rate is 10%. Lochte paid the note in full on its maturity date.
Note: Round answers to the following questions to the nearest whole dollar.
a. Prepare entries for Swimm Company on May 1 and December 31 (year-end adjustment). Amortize the discount on the note receivable using the straight-line method.
On May 1, Swimm Company would make the following entry:
Note receivable $60,000
Discount on note receivable $6,000
Sales $66,000
This entry recognizes the face amount of the note and the discount due to the fact that it is non-interest-bearing.
On December 31, the year-end adjustment would involve amortizing the discount on the note using the straight-line method. The discount of $6,000 would be spread out over the course of the year (12 months). Therefore, the monthly amortization amount would be $6,000 / 12 = $500.
To adjust the entry, Swimm Company would make the following:
Discount on note receivable $500
Interest revenue $500
This entry recognizes the $500 of interest revenue that Swimm Company has earned on the note for the month.
When the note is paid in full on its maturity date, the following entry would be made:
Cash $66,000
Discount on note receivable $6,000
Note receivable $60,000
This entry recognizes the receipt of cash and the reversal of the discount on the note. The note receivable is also removed from the balance sheet.
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used a total lunar eclipse in 1504 to convince the jamaican natives to supply him and his crew food:
In 1504, Christopher Columbus found himself and his crew stranded in Jamaica with dwindling supplies. The native Jamaicans were initially friendly, but as time passed, they became less willing to provide the Spanish with food and resources.
Columbus knew he needed to find a way to convince the Jamaicans to continue helping his crew. He learned that a total lunar eclipse was due to occur and used this knowledge to his advantage.
Columbus gathered the natives and told them that the eclipse was a sign of his god's anger, who would punish them by taking away the moon permanently unless they provided food for his crew. The tactic worked, and the Jamaicans supplied the Spanish with enough food to survive until they were rescued.
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in an oligopolistic market, the optimal decision of whether to raise or lower price will depend on how the manager believes other managers will change
In an oligopolistic market, the optimal decision of whether to raise or lower price will depend on how the manager believes other managers will change their prices.
If a manager believes that their competitors will also raise their prices, then it may be advantageous to raise their own price to maintain their market share and increase profits. On the other hand, if a manager believes that their competitors will lower their prices, then it may be necessary to lower their own price to remain competitive.
The decision ultimately depends on the strategic behavior of the other managers in the market, and a careful analysis of the potential outcomes and reactions of all players is necessary to make the optimal decision.
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On July 1, 2021, Apache Company, a real estate developer, sold a parcel of land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Terms of the sale required a down payment of $150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2022.
How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at the point in time at which it transfers the land to the construction company?
Apache Company will recognize revenue of $1,800,000 for the sale of the land to the construction company. This is calculated by subtracting the book value of the land ($1,200,000) from the selling price of the land ($3,000,000). The down payment of $150,000 is not included in the revenue recognition calculation since it is only a partial payment and not the full consideration for the sale.
On July 1, 2021, Apache Company sold a parcel of land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Assuming that Apache recognizes revenue at the point in time at which it transfers the land to the construction company, the total revenue recognized for the sale (ignoring interest) would be $3,000,000.
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The first thing you must consider in any type of communication is
a. The type of communication
b.
The style of communication
C. The purpose of the communication
d. The timing of communication
If the first thing you must consider in any type of communication is: C. The purpose of the communication.
What is the purpose of the communication?It's crucial to think about the communication's goal before beginning any form of communication. It is easier to guarantee that the message being given is clear and pertinent to the target audience when one is aware of the communication's goal.
Without a clear understanding of the communication's goal, the message may be misinterpreted or fail to accomplish its intended goal. As a result the first and most important stage in any sort of communication is to think about its objective.
Therefore the correct option is C.
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Shreya is the chief financial officer for home safe security inc. her company is interested in investing in a facility in indonesia, but she is worried about unpredictable fluctuations in future exchange rates, which could cost her company millions of dollars. one way to ensure against this exchange risk is for shreya to use?
One way for Shreya to ensure against exchange risk is for her to use hedging strategies such as forward contracts, options, or futures contracts.
Financial instruments allow her to lock in a specific exchange rate for a future date, protecting her company from the unpredictability of currency fluctuations. By using these tools, Shreya can mitigate the risk of losing money due to unfavorable exchange rates when investing in the Indonesian facility.
To protect against unpredictable fluctuations in future exchange rates, Shreya, the chief financial officer for Home Safe Security Inc., should consider using a financial instrument called a currency forward contract.
A currency forward contract is an agreement between two parties to exchange a specified amount of one currency for another currency at a predetermined exchange rate on a specified future date.
This will help Shreya lock in an exchange rate today, thus mitigating the risk of exchange rate fluctuations that could potentially cost her company millions of dollars when investing in a facility in Indonesia.
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When Nordstrom department stores launched a website to sell its merchandise to its present customers; it took advantage of a ________ opportunity.A) diversificationB) market format investmentC) market expansionD) market penetrationE) retail format development
When Nordstrom department stores launched a website to sell its merchandise to its present customers, it took advantage of a market expansion opportunity. Option C
Market expansion refers to the process of entering new markets with existing products or services. In this case, Nordstrom expanded its market by offering its products online, thereby reaching customers beyond its physical store locations.
Market expansion is a popular strategy for companies looking to grow and increase their customer base. By entering new markets, companies can tap into new customer segments and increase revenue. It is also a less risky strategy than diversification, which involves developing new products or services for new markets.
Nordstrom's decision to launch a website was a smart move in today's digital age, where consumers are increasingly turning to online shopping. By offering its products online, Nordstrom was able to meet the needs of its existing customers who preferred the convenience of shopping from home. It also allowed Nordstrom to attract new customers who may not have been able to visit its physical stores.
In summary, Nordstrom's launch of a website to sell its merchandise was a market expansion opportunity that allowed the company to tap into a new market and reach customers beyond its physical store locations. By doing so, Nordstrom was able to increase revenue and meet the changing needs of its customers. Option C
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Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $400 per day. To produce 1 shirt per day, the firm must also spend a total of $5 on other inputs-labor, materials, and other capital. For each additional shirt, the firm incurs the same additional cost of $5. The long-run average cost for: 100 shirts is $
The long-run average cost for producing 100 shirts is $9.
The indivisible inputs cost is $400 per day, and the additional cost for each shirt is $5. To produce 100 shirts, you would have the following costs:
Indivisible inputs cost: $400
Additional cost per shirt: $5 x 100 shirts = $500
Total cost for producing 100 shirts: $400 + $500 = $900
Now, finding the long run average cost for producing 100 shirts, simply divide the total cost by the number of shirts:
Long-run average cost = Total cost / Number of shirts
Long-run average cost = $900 / 100 shirts
Long-run average cost = $9 per shirt
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Which of the following types of organizations comparatively requires the lowest levels of investment and control?
A. Joint ventures
B. Franchising
C. Acquisition
D. Greenfield operations
The type of organization that comparatively requires the lowest levels of investment and control is Franchising. Option B is correct.
Franchising is a business model where a franchisee purchases the rights to use a company's brand name, business model, and support systems. This option tends to require lower levels of investment compared to other organization types, such as joint ventures, acquisitions, and greenfield operations, as the franchisee typically bears most of the initial investment costs.
In a franchising arrangement, control is also less centralized compared to other organization types. The franchisor maintains control over the brand and its standards but allows the franchisee to run the day-to-day operations. This allows the franchisor to expand their brand with less direct involvement and investment in each individual location.
In comparison, joint ventures involve two or more companies joining together to create a separate entity, requiring significant investment and shared control. Acquisitions involve one company purchasing another, typically needing a large investment and complete control of the acquired company. Lastly, greenfield operations refer to building a new business or facility from the ground up, which demands high levels of investment and control due to the need to establish a new market presence and infrastructure.
In conclusion, franchising requires the lowest levels of investment and control compared to joint ventures, acquisitions, and greenfield operations. Option B is the correct answer.
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pareto efficiency occurs when responses a no one can achieve greater utility without someone else losing utility.no one can achieve greater utility without someone else losing utility. b everyone can be made better off without hurting anyone.everyone can be made better off without hurting anyone. c the greatest possible good for society has been achieved.the greatest possible good for society has been achieved. d no one feels he or she has paid too much for something just bought.no one feels he or she has paid too much for something just bought.
The correct answer to your question is either option A or B. This concept helps to understand the optimal distribution of resources in society, ensuring the greatest possible good without harming others.
Pareto efficiency is achieved when either no one can achieve greater utility without someone else losing utility (option A), or everyone can be made better off without hurting anyone (option B).
Option C is incorrect because Pareto efficiency is not about achieving the greatest possible good for society, but rather about allocating resources in a way that benefits everyone without harming anyone. Option D is also incorrect because it is not directly related to Pareto efficiency, which is about utility and not just the feeling of having paid too much.
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the acmeville metropolitan bus service currently charges $0.88 for an all-day ticket and is used by an average of 513 riders a day. the bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. they must, therefore, find a way to increase revenues. the bus company is considering increasing the ticket price to $0.99 . the marketing department's studies indicate this price increase would reduce usage to 363 riders per day. calculate the price elasticity of demand using the midpoint method for bus tickets to determine if the bus company should increase price or decrease price to increase revenues. enter your answer as an absolute value and round it to two places after the decimal.
The price elasticity of demand is 2.91, which means that bus ticket demand is elastic.
To calculate the price elasticity of demand for bus tickets using the midpoint method and determine if the bus company should increase or decrease the price to increase revenues, follow these steps:
1. Identify the initial and new prices and quantities:
Initial price (P1) = $0.88
New price (P2) = $0.99
Initial quantity (Q1) = 513 riders
New quantity (Q2) = 363 riders
2. Calculate the percentage change in quantity demanded:
ΔQ = (Q2 - Q1) / [(Q1 + Q2) / 2]
ΔQ = (363 - 513) / [(513 + 363) / 2]
ΔQ = -150 / 438
ΔQ = -0.34247 (or -34.25%)
3. Calculate the percentage change in price:
ΔP = (P2 - P1) / [(P1 + P2) / 2]
ΔP = ($0.99 - $0.88) / [($0.88 + $0.99) / 2]
ΔP = $0.11 / $0.935
ΔP = 0.11765 (or 11.77%)
4. Calculate the price elasticity of demand (E):
E = (ΔQ / ΔP)
E = (-0.34247) / (0.11765)
E = -2.91 (absolute value)
The price elasticity of demand is 2.91, In this case, the bus company should decrease the price to increase revenues, as a price increase would lead to a proportionally larger decrease in the quantity demanded, resulting in lower revenues.
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a firm's marketing philosophy determines how strategic marketing activities are used to achieve: a. efficiency. b. business goals. c. desirable thought patterns. d. customer response.
The correct answer is b. business goals.
A firm's marketing philosophy refers to its underlying approach or mindset towards marketing. It shapes the firm's strategic marketing activities and guides decision-making in achieving its business goals. These goals typically include objectives such as increasing sales, market share, profitability, customer satisfaction.
While efficiency, desirable thought patterns, and customer response are important aspects of marketing, they are more closely related to specific tactics or outcomes of marketing efforts rather than the overall philosophy guiding those efforts.
The marketing philosophy is the broader framework that sets the direction for strategic marketing activities in pursuit of the firm's business goals. In summary, a firm's marketing philosophy is a critical component of its overall strategy.
By aligning its marketing activities with its philosophy and focusing on creating value for its customers, a company can use strategic marketing to achieve its business goals and generate a positive customer response.
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because of the existence of the aggregate demand multiplier, a $10 billion change in expenditure group of answer choices changes the slope of the aggregate demand curve so it is steeper. shifts the aggregate demand curve by more than $10 billion. shifts the aggregate demand curve by $10 billion. changes the slope of the aggregate demand curve so it is less steep. shifts the aggregate demand curve by less than $10 billion.
A $10 billion change in expenditure group shifts the aggregate demand curve by more than $10 billion. This is because of the existence of the aggregate demand multiplier, which magnifies the initial change in expenditure and leads to a larger overall shift in the aggregate demand curve.
The aggregate demand multiplier is a concept in macroeconomics that explains how changes in expenditure by households, businesses, or the government can have a larger impact on the overall economy than the initial change. The multiplier effect occurs because an increase in expenditure leads to an increase in output, which in turn leads to an increase in income for workers and businesses. This increase in income then leads to further increases in expenditure, creating a cycle of economic activity. The size of the multiplier depends on various factors, including the marginal propensity to consume (MPC), which is the proportion of additional income that is spent on consumption. In general, a higher MPC leads to a larger multiplier and a more pronounced shift in the aggregate demand curve. Therefore, a $10 billion change in expenditure group can lead to a larger overall shift in the aggregate demand curve due to the multiplier effect.
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Pleasant Producers currently incur fixed costs of £1,500 per month, and sell their products at £15 each. They incur variable costs of £5 per unit manufactured. They are thinking of moving their production facilities to a new, less expensive building. This move will decrease their fixed costs by £200 per month. What effect will the move have on the number of units Pleasant Producers must sell per month to break even? Select one: а. Pleasant Producers will break even at 15 fewer units sold per month. b. Pleasant Producers will break even at 20 fewer units sold per month. c. Pleasant Producers will have to sell 20 additional units per month to break even. d. Pleasant Producers will have to sell the same number of units as before to break even.
The difference between the old break-even point and the new break-even point is: 150 units - 130 units = 20 units Therefore, the answer is: b. Pleasant Producers will break even at 20 fewer units sold per month.
To determine the effect of moving to a new building on the number of units Pleasant Producers must sell per month to break even, we need to calculate the break-even point before and after the change in fixed costs.
Before the move:
Fixed costs: £1,500 per month
Variable costs: £5 per unit
Selling price: £15 per unit. Contribution margin per unit = Selling price - Variable costs = £15 - £5 = £10 per unit
Break-even point (in units) = Fixed costs / Contribution margin per unit = £1,500 / £10 = 150 units
After the move:
New fixed costs: £1,500 - £200 = £1,300 per month
Break-even point (in units) = New fixed costs / Contribution margin per unit = £1,300 / £10 = 130 units
The difference in the break-even point before and after the move is 150 units - 130 units = 20 units.
Therefore, Pleasant Producers will break even at 20 fewer units sold per month (Option b).
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Several factors explain why a consumer would be reluctant to adopt a new product. for example, a consumer might be reluctant to adopt a new product because of a value barrier, which occurs when?
A value barrier occurs when a consumer perceives the cost of adopting a new product as too high relative to the benefits it offers.
In other words, the consumer does not see the value in the new product and believes that it does not meet their needs or solve their problems. This can be due to a variety of factors such as the price, quality, features, and performance of the new product. Additionally, consumers may be hesitant to adopt new products because of the perceived risk of the unknown. They may feel more comfortable with familiar products that they trust and have used before.
Another factor that may contribute to reluctance is the learning curve associated with a new product. Consumers may be hesitant to invest time and effort into learning how to use a new product, especially if it requires a significant change in behavior or routine. Overall, it is essential for companies to understand and address these barriers to adoption if they want to successfully introduce new products to the market.
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Which of the following are characteristics of the camels ratings? check all that apply. eurozone participant common stock capital adequacy management
The characteristics of the CAMELS rating system that apply are: capital adequacy and management.
CAMELS is an acronym that stands for six key components used by financial regulators to evaluate and rate the overall health and performance of banks and financial institutions. These components are:
1. Capital Adequacy: This evaluates the financial strength and stability of a bank by examining its capital reserves and ability to absorb potential losses. Adequate capital ensures that a bank can withstand financial stress.
2. Asset Quality: This examines the credit risk associated with a bank's assets, such as loans and investments. High-quality assets reduce the likelihood of defaults and losses for the bank.
3. Management: This assesses the effectiveness and efficiency of a bank's management team in controlling risks and maintaining a safe and sound institution.
4. Earnings: This evaluates a bank's profitability, focusing on its ability to generate sufficient income to cover operating expenses, provide for future growth, and maintain adequate capital levels.
5. Liquidity: This measures a bank's ability to meet its short-term obligations and maintain a sufficient level of cash and marketable securities to address unexpected needs.
6. Sensitivity to Market Risk: This evaluates a bank's exposure to market risks, such as interest rate fluctuations and foreign exchange rate movements, and its ability to manage and mitigate these risks effectively.
In summary, the characteristics of the CAMELS rating system that apply to your question are capital adequacy and management. These components are crucial in assessing the overall health and performance of banks and financial institutions.
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a pollution charge gives a profit-maximizing firm an incentive to reduce its emissions with what condition? group of answer choices the government will provide the means or method for the reduction. that they will benefit from subsidies or related rewards if they are successful. that the marginal cost of reducing the emissions is less than the tax. that the opportunity cost of reducing the emissions is less than the tax.
A pollution charge provides a profit-maximizing firm with an incentive to reduce its emissions when the marginal cost of reducing emissions is less than the tax imposed(c).
A pollution charge is a type of environmental policy that aims to reduce pollution by placing a tax on emissions. By imposing a tax on each unit of pollution emitted, firms are incentivized to reduce their emissions as it becomes more expensive to pollute.
However, whether or not this incentive is effective in reducing emissions depends on the cost of reducing emissions. If the marginal cost of reducing emissions is higher than the tax imposed, firms will not have an incentive to reduce their emissions.
Conversely, if the marginal cost of reducing emissions is lower than the tax imposed, firms will have an incentive to reduce their emissions in order to avoid paying the tax. Therefore, for a pollution charge to be effective in reducing emissions, the tax must be set at a level where the cost of reducing emissions is less than the tax imposed(c).
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Kirkland Theater sells season tickets for six events at a price of $72. For the 2019 season, 3,030 season tickets were sold.
Required:
a-1. Use the horizontal model to show the effect of the sale of the season tickets. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Kirkland Theater earned $36,360 in revenue from the sale of season tickets in the 2019 season.
The sale of the season tickets increases the assets (cash) by $218,160 and increases the season ticket liability by the same amount, indicating an obligation to provide the events to the ticket holders. There is no effect on the equity.
a-2. Determine the amount of revenue earned by the Kirkland Theater for the 2019 season from the sale of the season tickets.
The amount of revenue earned by Kirkland Theater from the sale of season tickets can be calculated as follows:
Revenue = Total sale of season tickets / Number of events
Revenue = $218,160 / 6
Revenue = $36,360.
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Consider Two Firms Competing To Sell A Homogeneous Product By Setting Price. The Inverse Demand Curve Is Given By P = 50 − 2Q. If Each Firm's Cost Function Is Ci(Qi) = 6Qi, Then Consumer Surplus In This Market Is $225 $484 $516 Not Enough Info
Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 50 − 2Q. If each firm's cost function is Ci(Qi) = 6Qi, then consumer surplus in this market is
$225
$484
$516
Not enough info
The consumer surplus in this competitive market to sell a homogenous product is $484.
To determine the consumer surplus in this market with two firms competing to sell a homogeneous product, given the inverse demand curve P = 50 - 2Q and the cost function Ci(Qi) = 6Qi, follow these steps:
1. First, find the total quantity in the market, Q. Since both firms have the same cost function, they will produce equal quantities. Therefore, the total quantity Q = Q1 + Q2.
2. Calculate each firm's marginal cost (MC), which is the derivative of the cost function with respect to quantity. MC = d(Ci(Qi))/dQi = 6.
3. In a competitive market, firms set prices equal to their marginal cost. Therefore, P = MC = 6.
4. Substitute the price into the inverse demand curve to find the total quantity: 6 = 50 - 2Q, which implies Q = 22.
5. Calculate the consumer surplus. Consumer surplus is the area under the demand curve, above the price line, and up to the quantity sold. It can be represented as a triangle with base Q = 22 and height (50 - 6) = 44.
6. Use the formula for the area of a triangle: (1/2) * base * height = (1/2) * 22 * 44 = 484.
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reports on the current consumer price index are released every
Reports on the current consumer price index are released every month.
The consumer price index (CPI) is a measure of the average change in prices over time of goods and services consumed by households. These reports provide important information about inflation and the overall state of the economy. They are used by policymakers, economists, and businesses to make decisions about monetary policy, investments, and pricing strategies. The Central bank pays very close attention to this figure in its role of maintaining price stability.
Reports on the current consumer price index are released every .
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The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 114,000 fans. Assume the stadium sells out all six home games before the season begins, and the athletic department collects $102.6 million in ticket sales. Required: What is the average price per season ticket and average price per individual game ticket sold?
The average price of ticket would be $102.6 million divided by 19,000, which equals $5,400.The average price per individual game ticket sold would be $102.6 million divided by 684,000, which equals $150.
Total tickets sold for the season = Seating capacity × Number of home games
Total tickets sold = 114,000 fans × 6 home games = 684,000 tickets
Total ticket sales = $102.6 million
Average price per season ticket (for all 6 games) = Total ticket sales ÷ Total tickets sold
Average price per season ticket = $102,600,000 ÷ 684,000 = $150
Average price per individual game ticket = Average price per season ticket ÷ Number of home games
Average price per individual game ticket = $150 ÷ 6 = $25
So, the average price per season ticket is $150, and the average price per individual game ticket sold is $25.
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A coffee shop attempts to hire a worker during a labour short- age. It knows that, if it posts a wage of $w per hour, then it can hire a worker to work for L= 5w 1/3 hours. The coffee shop cannot post a wage below the minimum wage of $16 per hour but it also cannot hire the worker for over 45 hours. The shop chooses the quality k of its beans and takes as given the standard price of a latte p. All together, total profits are pVkl – wl – k which the coffee shop maximises by choosing its wage and coffee quality. a) (7 points) Formally write the constrained maximisation problem, as- sociated Lagrangian, and first order conditions. b) (3 points) Under what circumstances will hiring the worker full time, i.e. l= 45, yield a valid critical point? c) (3 points) When will offering the minimum wage yield a valid critical point?
The first order condition for the given question is ∂L/∂l = pVk - w - λ1 + λ2 = 0, under the condition that it can hire a worker to work for L= 5w 1/3 hours.
This is considered as a constrained optimization problem where the coffee shop wants to maximize its profits by choosing its wage and coffee quality while taking into account certain constraints .
Maximize pVkl - wl - k
Subject to L <= 45
[tex]L > = 5w^{(1/3)}[/tex]
w >= 16
Here
p = standard price of a latte,
V = volume of lattes sold,
k = quality of beans used,
w = wage per hour,
L = number of hours worked by the worker
The associated Lagrangian function is
L = pVkl - wl - k + λ1(45 - L) + λ2([tex]L - 5w^{(1/3)}[/tex]) + λ3(w - 16)
Here
λ1, λ2, and λ3 = Lagrange multipliers
Then first-order conditions for this problem are:
∂L/∂w = -l + [tex](5/3)w^{(-2/3)}[/tex] λ2+ λ3 = 0
∂L/∂k = -1 + pVlλ1 = 0
∂L/∂l = pVk - w - λ1 + λ2 = 0
Hiring the worker full time will yield a valid critical point if it satisfies all constraints such as minimum wage and maximum hours of work. Offering the minimum wage will yield a valid critical point if it satisfies all constraints such as maximum hours of work.
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samsung is comparing the price, features, and durability of their galaxy tablet to the industry leader, the apple ipad. according to how we use the term in this class, they are currently using:
The term Samsung is currently using to compare the price, features, and durability of their Galaxy tablet to the industry leader, the Apple iPad, is benchmarking.
Benchmarking is a process in which a company compares its products, processes, or performance against those of its competitors or industry leaders. It involves analyzing and evaluating various aspects such as price, features, quality, and performance to identify areas for improvement and gain a competitive advantage.
In this case, Samsung is benchmarking its Galaxy tablet against the Apple iPad. By comparing the price, features, and durability of their product to the industry leader, Samsung aims to assess its strengths and weaknesses and identify areas where it can match or surpass the iPad's offerings.
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The directors of Red Pink Sdn Bhd, a business which makes only one product,
have been reviewing the following summarized profit and loss account for the
quarter just ended.
Sales (60,000 units) RM4,800,000
Direct material cost RM1,680,000
Direct Labour cost RM 960,000
Production Overhead RM1,040,000
Administration overhead RM 720,000
Selling Overhead RM 480,000 (RM4,880,000)
Loss (RM 80,000)
Additional information
(1) The production overhead includes variable production overhead at
RM4.00 per unit. Administration overhead and selling overhead are fully
fixed.
Required:
a. Contribution per unit and contribution sales ratio c/s ratio. (2 marks)
b. The break-even point in units and value. (2marks)
c. The following alternative proposals have been put forward to improve profits in
the current quarter. Determine the target profit expected and break-even point
(to the nearest unit of product) for each of the following alternative proposals
separately:
(i) Reduce selling price by 10% , expecting sales volume to increase by 40%
(4 marks)
(ii) Reduce fixed cost by 5% (4 marks)
(iii) Increase wage rate by 25%, expecting production and sales volume to increase
by 20%
(4 marks)
(iv) Introduce cost reduction programme to reduce prime cost by RM4 per unit.
Spend RM400,000 on advertising and expect sales volume to increase by 10%.
(4 marks)
a) The contribution sales ratio is -320.5%. b) The Break-even point is RM69,920.
a) Contribution per unit = (Sales price per unit - Variable cost per unit)
Sales price per unit = (RM4,800,000/60,000 units) = RM80
Variable cost per unit = (Direct material cost + Direct labor cost + Variable production overhead) = (RM1,680,000 + RM960,000 + RM4.00) = RM2,644
Contribution per unit = (RM80 - RM2,644) = -RM2,564
Contribution sales ratio = (Contribution per unit / Sales price per unit) x 100%
Contribution sales ratio = (-RM2,564 / RM80) x 100% = -320.5%
b) Break-even point (in units) = (Fixed costs / Contribution per unit)
Fixed costs = (Production overhead + Administration overhead + Selling overhead) = (RM1,040,000 + RM720,000 + RM480,000) = RM2,240,000
Break-even point (in units) = (RM2,240,000 / -RM2,564) = 874 units
Break-even point (in value) = (Break-even point in units x Sales price per unit) = (874 x RM80) = RM69,920
c) (i) New selling price = (RM80 - 10%) = RM72
New expected sales volume = (60,000 units x 40%) = 24,000 units
Target profit = (Fixed costs + Desired profit) = (RM2,240,000 + RM76,000) = RM2,316,000
Break-even point (in units) = (Fixed costs / Contribution per unit) = (RM2,240,000 / (RM72 - RM2,644)) = 32,500 units
(ii) New fixed costs = (Fixed costs - 5%) = (RM2,240,000 - RM112,000) = RM2,128,000
Target profit = (Fixed costs + Desired profit) = (RM2,128,000 + RM80,000) = RM2,208,000
Break-even point (in units) = (Fixed costs / Contribution per unit) = (RM2,128,000 / -RM2,564) = 828 units
(iii) New wage rate = (Direct labor cost + 25%) = (RM960,000 + RM240,000) = RM1,200,000
New expected sales volume = (60,000 units x 20%) = 12,000 units
Target profit = (Fixed costs + Desired profit) = (RM2,240,000 + RM100,000) = RM2,340,000
Break-even point (in units) = (Fixed costs / Contribution per unit) = (RM2,240,000 / (RM80 - RM2,884)) = 28,000 units
(iv) New prime cost = (Direct material cost + Direct labor cost - RM4.00) = (RM1,680,000 + RM960,000 - RM4.00) = RM2,639,996
New expected sales volume = (60,000 units x 10%) = 6,000 units
New sales price per unit = (Sales value + Advertising cost) / New expected sales volume = (RM4,800,000 + RM400,000) / 6,000 units = RM867
Target profit = (Fixed costs + Desired profit) = (RM2,240,000 + RM160,000) = RM2,400,000
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in negotiating a management contract, which party prefers a long-term contract and which party prefers a short-term contract? why?
In negotiating a management contract, the manager typically prefers a long-term contract, while the client or company may prefer a short-term contract. The manager prefers a long-term contract because it provides job stability, a steady income, and more time to achieve desired results.
In negotiating a management contract, it really depends on the specific circumstances and the goals of each party involved.
However, generally speaking, the party offering the management services would prefer a long-term contract as it provides a stable and consistent source of income for their business.
On the other hand, the party receiving the management services may prefer a short-term contract as it allows for greater flexibility and the ability to reassess and renegotiate the terms of the contract more frequently.
Ultimately, the decision on the length of the contract should be based on the specific needs and goals of both parties.
The client or company may prefer a short-term contract to minimize risk, evaluate the manager's performance, and maintain flexibility in case of changing business needs or goals.
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Discuss any THREE (3) costs and THREE (3) benefits of operating
business as a corporation.
Higher Startup Costs: Setting up a corporation involves higher startup costs than setting up a sole proprietorship or a partnership. This is because a corporation requires legal documentation, registration fees, and filing fees.
Compliance Costs: Corporations are required to comply with strict legal and regulatory requirements, which can be costly. These requirements include filing annual reports, holding annual meetings, and maintaining corporate records. Double Taxation: One of the biggest costs of operating a business as a corporation is double taxation.
This means that the corporation is taxed on its profits, and then the shareholders are taxed on their dividends. This can result in higher taxes for both the corporation and the shareholders.
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______is the approved version of the project budget, including how much money is expected to be spent and when; the cost baseline will be compared to actual project results for monitoring and controlling purposes.
The term "cost baseline" is the approved version of the project budget, including how much money is expected to be spent and when. The cost baseline will be compared to actual project results for monitoring and controlling purposes.
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Assume that an economy has the following data:
RGDP in 2018: $1,800 million
RGDP in 2019: $1,760 million
Nominal GDP in 2018: $1,810 million
Nominal GDP in 2019: $1,750 million
Potential RGDP for 2019: $1,800 million
Over the 2018-19 period deflation was ________ percent, resulting in a GDP gap of ________ in 2019. According to the AD-AS model, this is likely to have occurred as a result of ________.
Group of answer choices
1.12 percent; $40 million; an energy price shock.
2.22 percent; $40 million; weakening of the domestic currency.
2.22 percent; $40 million; falls in stock market prices.
1.12 percent; $40 million; large falls in property prices.
3.31 percent; $40 million; large falls in property prices.
2.27 percent; $40 million; weakening of the domestic currency.
2.27 percent; $40 million; falls in stock market prices.
3.31 percent; $40 million; an energy price shock.
Over the 2018-19 period, deflation was 2.27 percent, resulting in a GDP gap of $40 million in 2019. According to the AD-AS model, this is likely to have occurred as a result of falls in stock market prices. Therefore, the correct option is option 7.
First, we need to calculate the deflation rate and the GDP gap for 2019. Then, we will analyze the possible cause according to the AD-AS model.
1: Calculate the deflation rate.
Deflation rate = [(Nominal GDP in 2018 / RGDP in 2018) - (Nominal GDP in 2019 / RGDP in 2019)] / (Nominal GDP in 2018 / RGDP in 2018) * 100
Deflation rate = [($1,810 million / $1,800 million) - ($1,750 million / $1,760 million)] / ($1,810 million / $1,800 million) * 100
Deflation rate ≈ 2.27%
2: Calculate the GDP gap.
GDP gap = Potential RGDP for 2019 - RGDP in 2019
GDP gap = $1,800 million - $1,760 million
GDP gap = $40 million
3: Analyze the cause according to the AD-AS model.
Considering the given answer choices and the calculated values, the best fitting option is:
2.27 percent; $40 million; falls in stock market prices which correspond to option 7.
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explain the statement given
invest in yourself- the best boat you can have your own talent you know i mean it's they can't they can't take it away from you they inflation can't take it from you taxes can't take it from you so i i when i talk to students i see these students and i tell them you know you're a million dollar asset I would pay you a hundred thousand dollars the mbas for 10 of the earnings for the rest of your life so that makes you a million dollar asset now if you can do something and increase that value 50 if you can learn to communicate better verbally you're written in written form and you become 50 more that's 500 000 just by improving yourself i mean not nobody can take that away from you and and so i urge everybody you know when i talk to them in high school about this and and colleges just develop develop the habits you've got the brain power you've got the energy but develop the habits of success
The statement emphasizes the importance of investing in oneself by developing one's talents and skills. The key terms to consider are "SUCCESS", "HABITS", and "ENERGY".
To explain the statement, it suggests that by investing time and effort into developing one's abilities and talents, an individual can increase their value as a person and professional. This investment is a form of self-improvement that cannot be taken away by external factors such as inflation or taxes.
The statement encourages students to consider themselves as million-dollar assets, and by improving themselves, they can increase their worth even more. For instance, if someone can learn to communicate better, they could potentially increase their value by 50%, resulting in a significant gain.
In order to achieve success, it is important to develop habits that contribute to personal and professional growth. The statement highlights the fact that individuals have the brain power and energy required to develop these habits, and by doing so, they will be investing in themselves and their future success.
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data (billions of dollars) consumption (c) 13,321.4 investment (i) 3,368.0 exports (x) 2,350.2 imports (m) 2,928.6 net exports of goods and services government purchases (g) 3,374.4 gross domestic product (gdp)
To calculate GDP, we can use the equation:
GDP = C + I + G + (X-M)
Plugging in the given values:
GDP = 13,321.4 + 3,368.0 + 3,374.4 + (2,350.2 - 2,928.6)
GDP = 17,485.4 - 578.4
GDP = 16,907.0 billion dollars
The gross domestic product (GDP) is the total monetary value of all final goods and services produced within a country's borders in a specific time period.
The given values provide the consumption (C), investment (I), government purchases (G), exports (X), and imports (M). By plugging these values into the GDP formula, we can calculate the GDP of the country.
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