Answer:
Shandra Corporation
The amount which Shandra Corporation will report as foreign exchange gain in net income for the quarter ended June 30 is:
$5,240
Explanation:
Price of goods = 131,000 pounds
Delivery and payment date = April 20
On February 20, the spot rate for call option on 131,000 pounds = $1.37
Cost of the option = $1,310
The spot rate on April 20 = $1.42
The foreign exchange gain or loss to be reported in net income for the quarter ended June 30 = $0.05 ($1.42 - $1.37
Total gain = ($0.05 * 131,000) - $1,310
= $6,550 - $1,310
= $5,240
b) With this call option, which gives Shandra the right to buy the underlying asset, Shandra hedges his contract to purchase goods from a foreign supplier, and therefore, profits when the spot rate increases from $1.37 on February 20 to $1.42 on April 20. The profit made is reduced by the cost of the call option.
You have graduated from college but unfortunately have $39,000 in outstanding loans. The loans require payments of $3,435 per year, which covers interest and principal repayment (that is, the loan has the same basic features as a mortgage). If the interest rate is 4 percent, how long will it take you to repay the debt
Answer:
15.44 years
Explanation:
Using both excel rate function and financial calculator, the time taken to repay the debt can be computed thus:
Excel rate function:
=nper(rate,pmt,-pv,fv)
rate= interest rate=4%
pmt=yearly payment=c
pv=loan oustanding=-39000
fv=the balance after all payments should be zero=0
=nper(4%,3435,-39000,0)= 15.44 years
Financial calculate
PMT= 3435
RATE=4
PV=-39000
FV=0
CPT N=15.44 years
This means a payment of $3,435 per year for 15 years and $ 1,511.40 ($3,435*0.44) in the sixteenth year
The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received a $9,000 cash contribution from the owner. Mar. 2 Paid the first month's rent of $600. Mar. 3 Purchased equipment by paying $4,000 cash and executing a note payable for $5,000. Mar. 4 Purchased office supplies for $600 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. What is the balance in Accounts Receivable
Answer:
$2,000
Explanation:
Calculation for What is the balance in Accounts Receivable
Credit sales $10,000
Less : Collection ($8,000)
Account receivable $2,000
Therefore the balance in Accounts Receivable will be $2,000
Betty Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.
April 2 Invested $27,750 cash and equipment valued at $12,920 in the business.
2 Hired an administrative assistant at a salary of $305 per week payable monthly.
3 Purchased supplies on account $673. (Debit an asset account.)
7 Paid office rent of $574 for the month.
11 Completed a tax assignment and billed client $1,188 for services rendered. (Use Service Revenue account.)
12 Received $3,207 advance on a management consulting engagement.
17 Received cash of $2,354 for services completed for Ferengi Co.
21 Paid insurance expense $105. 30 Paid administrative assistant $1,220 for the month.
30 A count of supplies indicated that $113 of supplies had been used.
30 Purchased a new computer for $7,092 with personal funds. (The computer will be used exclusively for business purposes.)
Required:
Journalize the transactions in the general journal.
Answer:
Date Account Details Debit Credit
April 2 Cash $ 27,750
Equipment $12,290
Owner's Capital $40,670
Date Account Details Debit Credit
April 2 Entry not required till payment
Date Account Details Debit Credit
April 3 Supplies $673
Accounts Payable $673
Date Account Details Debit Credit
April 7 Rent expense $574
Cash $574
Date Account Details Debit Credit
April 11 Accounts Receivables $1,188
Service Revenue $1,188
Date Account Details Debit Credit
April 12 Cash $3,207
Unearned revenue $3,207
Date Account Details Debit Credit
April 17 Cash $2,354
Service Revenue $2,354
Date Account Details Debit Credit
April 21 Insurance expense $105
Cash $105
Date Account Details Debit Credit
April 30 Salaries expense $1,220
Cash $1,220
Date Account Details Debit Credit
April 30 Supplies expense $113
Supplies $113
Date Account Details Debit Credit
April 30 Equipment $7,092
Owner's Capital $7,092
d. E contributes $82,000 in cash to the business to receive a 22 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital balances
Answer:
After E makes this investment, the individual capital balances are:
A = $29,073
B = $87,218
C = $58,145
D = $116,291
E = $82,000
Total = $327,727
Explanation:
a) Data and Calculations:
E's capital contribution = $82,000 for 22%
Total capital after E's admission = $372,727 ($82,000/22%)
Old profits and losses sharing ratio:
A, 10 percent; B, 30 percent; C, 20 percent; and D, 40
New profits and losses sharing ratio and new capital balances
A = 10% of 78% = 7.8% 7.8% of $372,727 = $29,073
B = 30% of 78% = 23.4% 23.4% of $372,727 = $87,218
C = 20% of 78% = 15.6% 15.6% of $372,727 = $58,145
D = 40% of 78% = 31.2% 31.2% of $372,727 = $116,291
E = 22% 22% of $372,727 = $82,000
Total = 100% $327,727
b) The capital of the partnership will total $327,727 while individual partnerships will have their capital accounts adjusted in line with the new profit sharing ratio and capital.
A country has constant opportunity cost of production. If they devote all of their resources to the production of blankets they can produce a total of 284 per week. If they devote all of their resources to the production of t-shirts they can produce a total of 612 shirts per week. What is the opportunity cost of producing 1 blanket
Answer:
2.15 shirts
Explanation:
Opportunity cost or implicit is the cost of the next best option forgone when one alternative is chosen over other alternatives
By producing one more blanket, the country would be forgoing the opportunity to produce one more shirt.
opportunity cost of producing 1 blanket = 612 shirts / 284 = 2.15 shirts
What should you do if you determine the root cause and find that it is out of your control?
a. Nothing. Once you determine the root cause, your work is done whether it is in your control or not.
b. Use a different analysis tool
c. Quit
d. Go back up to the previous question and see if you have control over that response
Answer:
The correct answer is the option A: Nothing. Once you determine the root cause, your work is done whether it is in your control or not.
Explanation:
To begin with, the question is related to what is called "Root Cause Analysis" known in the management field as a process by which the managers tend to identify what cause a problem by looking deeply into the root of it thanks to an excesive analysis done by a team. It is necessesary to clarify that the main purpose of this method is just to identify the problems' root and from there to come out with solutions regarding the situation if able, but it is not the point of the analysis to take action or to implement those solutions. So therefore that if the situation turns to be out of the control of the person responsible for the analysis then there is nothing he could do because his job has already been done.
Longmire & Sons made sales on credit to Alderman Sports totaling $500,000 on April 18. The cost of the goods sold is $400,000. Longmire estimates 3% of its sales to Alderman may be returned. On May 22, $9,000 worth of goods (with a cost of $7,200) are returned by Alderman. Assume Longmire uses a perpetual inventory system.
Required:
Prepare the related journal entries for Longmire & Sons.
Answer:
April 18
Dr Account receivable 500,000
Cr Cash 500,000
April 18
Dr Cost of goods sold 400,000
Cr Merchandize inventory 400,000
May 22
Dr Sales return and allowance 9,000
Cr Account receivable 9,000
May 22
Dr Merchandize inventory 7,200
Cr Cost of goods sold 7,200
Explanation:
Preparation of the related journal entries for Longmire & Sons.
Based on the information given the related journal entries for Longmire & Sons will be :
April 18
Dr Account receivable 500,000
Cr Cash 500,000
(Being to record credit sales)
April 18
Dr Cost of goods sold 400,000
Cr Merchandize inventory 400,000
(Being to Record cost of goods sold)
May 22
Dr Sales return and allowance 9,000
Cr Account receivable 9,000
(Being to record goods return)
May 22
Dr Merchandize inventory 7,200
Cr Cost of goods sold 7,200
(Being to Record cost of goods return)
Assume General Electric Company reports the following footnote in its 10-K report. December 31 (In millions) 2016 2015 Raw materials and work in process $ 5,527 $ 5,042 Finished goods 5,152 4,806 Unbilled shipments 333 402 11,012 10,250 Less revaluation to LIFO (697) (661) $10,315 $ 9,589 The company reports its inventories using the LIFO inventory costing method. Assume GE has a 35% income tax rate. As of the 2016 year-end, how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory
Answer:
$ 244 million
Explanation:
Calculation for how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory
Tax rate Amount (In millions)
LIFO $ 10,315.00 35% =$ 3,610.25
FIFO $ 11,012.00 35% =$ 3,854.20
Savings in taxes $ (697.00) $ (243.95)
Hence,
Savings in taxes=$ 3,610.25 million-$ 3,854.20 million
Savings in taxes=($243.95 million)
Savings in taxes=($ 244 million) Approximately
Therefore the amount that GE saved in taxes by choosing LIFO over FIFO method for costing inventory will be $ 244 million
I'M'Cool Co. paid a dividend of $5.25 on its common stock yesterday. The company's dividends are expected to grow at a constant rate of 8.5% indefinitely. If the required rate of return on this stock is 15.5%, compute the current value per share of I'M'Cool Co. stock. Group of answer choices $43.90 $76.43 $56.23 $81.38
Answer:
$81.38
Explanation:
The share price formula using the constant dividend growth model is provided below:
share price=expected dividend/( required rate of return-constant dividend growth rate)
the share price is the unknown
expected dividend=last dividend*(1+constant dividend growth rate)
last dividend=$5.25
constant dividend growth rate=8.5%
expected dividend=$5.25*(1+8.5%)=$5.69625
required rate of return=15.5%
share price=$5.69625 /(15.5%-8.5%)
share price=$5.69625 /7.00% =$81.38
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X, and is the price of good Y, which is related to good X. Using the midpoint method, if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8, the cross price elasticity of demand is about:_________
Answer:
Quantity demanded is -0.4
Explanation:
Quantity demanded is -0.4 if the prices decline from $8 to $10. The cross price elasticity is the change in quantity demanded for the goods when the price of other goods changes. The price change can be minor and the quantity demanded change can be high.
You are writing a report on the effectiveness of upper-management meetings in your company. Your first step is to determine whether to conduct an interview, carry out an observation, or administer a survey. You decide to observe one or two meetings to obtain primary data. You arrive late for the first meeting and walk into the room unannounced. What observation rule should you have followed
Answer:
Arrive early and obtain permission to observe
Explanation:
As a profession it is important to plan in advance also it is needed to demonstrate yourself in terms of an attitude and behavior this includes the organizing of the task and aimed to delivered the work by maintaining the high quality in order to meet out the objectives. In order to work effectively it is very significant to be on time.
In the given case, you have to arrive early so that you can give the brief introduction of yourself that obtain the permission for observing and shows the professionalism
Adidea Corp. regularly buys merchandise from vendors. It just purchased 1,000 units on credit from one of its vendors. How will the company record this transaction?
The company will record the purchase as a debit to the inventory account and a credit to the ________ account.
Answer:
Vendor's account/ accounts payable
Explanation:
Merchandise is an asset to the company. An increase in assets is debited to that particular merchandise or inventory account.
Since the merchandise was bought on credit, liabilities will increase. An increase in liabilities is credited to the specific vendor's account who supplied the goods on credit.
Requirement Assume that all supplies purchased were used in operations in the year of purchase. Rental payments pertain to rental space used in the year of payment. 1. Prepare an income statement for for and under both the cash and the accrual basis of accounting. 2. Compute operating cash flow for both years under cash and accrual bases.
Question Completion:
You are provided the following information for the Del Campo Consulting Associates.
2019 2018
Service revenue (accrual basis) $250,000 $185,000
Cash collected from clients 97,000 80,000
Operating expenses:
Salary expense (accrual basis) 12,000 16,500
Purchased supplies for cash 4,000 2,500
Purchased supplies on account 1,000 1,500
Depreciation expense 2,000 2,000
Rent paid in cash 7,000 3,000
Prepaid insurance 5,500 0
Answer:
Del Campo Consulting Associates
Accrual Basis Cash Basis
Income Statements 2019 2018 2019 2018
Service revenue $250,000 $185,000 $97,000 $80,000
Operating Expenses:
Salary expense 12,000 16,500 0 0
Supplies 5,000 4,000 4,000 2,500
Depreciation 2,000 2,000 0 0
Rent 7,000 3,000 7,000 3,000
Prepaid Insurance 0 0 5,500 0
Total operating expenses $26,000 $25,500 $16,500 $5,500
Net income $224,000 $159,500 $80,500 $74,500
2. Compute Operating Cash Flow under cash and accrual basis:
Accrual Basis Cash Basis
Operating Cash Flow 2019 2018 2019 2018
Cash collected from clients $80,500 $74,500 $80,500 $74,500
Purchased supplies (4,000) (2,500) (4,000) (2,500)
Rent paid in cash (7,000) (3,000) (7,000) (3,000)
Prepaid insurance (5,500) (5,500)
Net operating cash flows $64,000 $69,000 $64,000 $69,000
Explanation:
The net income reported the accrual basis and that reported under the cash basis are different. The accrual basis considers all revenue whether actually received or not, the cash basis only considers cash received from clients in each period. However, the net operating cash flows under the two bases are the same. The reason for this is that only actual cash flows are considered under the two bases.
Beta Alpha Psi, the accounting honorary fraternity, held a homecoming party. The fraternity expected attendance of 80 persons and prepared the following budget: Room rental .. $ 170 Food ....... 660 Entertainment .. 570 Decorations ... 210 Total ...... $1,610 After Beta Alpha Psi paid all the bills for the party, the total cost came to $1,885 or $275 over budget. Details are $170 for room rental; $875 for food; $570 for entertainment; and $270 for decorations. Ninety-six persons attended the party. 1. Prepare a performance report for the party that shows how actual costs differed from the budget. That is, include in your report the budgeted amounts, actual amounts, and variances. 2. Suppose the fraternity uses a management-by-exception rule. Which costs deserve further examination
Answer:
Beta Alpha Psi
1. Performance Report for the party:
Budget Actual Variance
Expected attendance (persons) 80 96 16
Room rental .. $ 170 $170 $0
Food ....... 660 875 $215 U
Entertainment .. 570 570 $0
Decorations ... 210 270 $60 U
Total ...... $1,610 $1,885 $275 U
2. The costs that deserve further examination are Food and Decorations. The party overspent on these items.
Explanation:
Since 96 persons attended the party, the food cost should have been = $792 ($660/80 * 96), which is the flexible budget cost. The cost of decorations should have remained $210 unless there were improper estimates of the items required for the decorations and the size of the party venue.
Direct Materials Used in Production
Slapshot Company makes ice hockey sticks. On June 1, Slapshot had $48,000 of materials in inventory. During the month of June, the company purchased $132,000 of materials. On June 30, materials inventory equaled $45,000.
Required:
Calculate the direct materials used in production for the month of June.
Answer:
$135,000
Explanation:
The direct materials used in production for the month of June is computed as;
= Materials inventory at June 1 + Materials purchased during the month of June - Materials inventory at June 30
= $48,000 + $132,000 - $45,000
= $135,000
Therefore, the direct materials used in production for the month of June is $135,000
During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers. What is the total for consolidated cost of goods sold
Answer:
a. $173,000
Explanation:
Missing word "Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records: Alpha Beta Inventory $95,000 $88,000 Sales Revenue 800,000 300,000 Cost of Goods Sold 600,000 180,000 During the current year, Alpha sold inventory to Beta for $100,000."
Percentage of profits Alpha charge to other customers = ($800,000 - $600,000) / $800,000 = 25% of sales
Stock held at year end by beta from the purchases made from Alpha = $100,000 * 40% =$40,000
Profit involved in stock held by beta from the purchases made from Alpha = $40,000 * 25% = $10,000
So, Value of stock of Beta = $88,000 - $10,000 = $78,000
Hence, Total for consolidated inventory = $95,000 + $78,000 = $173,000
The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:
Answer:
Total fixed cost element = $90000
Explanation:
To calculate the fixed maintenance cost, first we will use the high-low method to calculate the element of average variable maintenance cost per machine hour in the average total maintenance cost.
The value of highest activity = 24000 * 9.75 = $234000
The value of lowest activity = 20000 * 10.5 = $210000
Average VC per MH = (234000 - 210000) / (24000 - 20000)
Average VC per MH = $6 per machine hour
Total Average variable cost (24000 MH) = 6 * 24000 = $144000
Total fixed cost element = 234000 - 144000 = $90000
The Package Store hires workers to wrap packages. The store sells this service for $5. The marginal revenue product of this store's fifth worker is $50. The marginal product of the fifth worker is A) 0.01 package. B) 1 package. C) 10 packages. D) indeterminate from this information
Answer: 10 packages
Explanation:
Marginal revenue (MR) is defined as an increase in the revenue that a company makes which is gotten from an additional sale that is made from a unit of output.
The marginal product of the fifth worker will be calculated as:
= Marginal Revenue Product / Price
= 50/5
= 10
On March 15, 2017, Frankel Construction contracted to build a shopping center at a contract price of $240 million. The schedule of expected (which equals actual) cash collections and contract costs follows: Year Cash Collections Cost Incurred 2017 $60 million $30 million 2018 100 million 80 million 2019 80 million 60 million Total $240 million $170 million Calculate the amount of net income for each of the three years 2017 through 2019 using the cost-to-cost method. ($ millions)
Answer: you need to sell 40 million in cars then add 30 million to savings go to a bank an take out a loan up to 500 grand and make sure to pay it back on time for better credit and start taking small increments out of your savings and invest in a company and get a good side job with good benefits for retirement when you age up enough retire and take all the money out of all your accounts and buy a island and build a house with a bunker full of food this does not explain anything to you i am just wasting your time.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below:
Claimjumper Makeover Total
Sales $ 30,000 $70,000 $100,000
Variable expenses 20,000 50,000 70,000
Contribution margin $ 10,000 $ 20,000 30,000
Fixed expenses 24,000
Net operating income $ 6,000
Required:
1. What is the overall contribution margin (CM) ratio for the company?
2. What is the company's overall break-even point in dollar sales?
3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Answer:
See below
Explanation:
1. Overall contribution margin ratio for the company
= (Total contribution margin ÷ Total sales) × 100
= ($30,000 ÷ $100,000) × 100
= 0.3 × 100
= 30%
2. Company's overall break even point in dollar sales
= Fixed cost/Contribution margin ratio
= $24,000 / 0.3
= $80,000
3. Contribution format at break even point.
•Claim jumpover
Sales
$30,000
Less
Variable cost
($20,000)
Contribution margin
$10,000
•Makeover
Sales
$100,000
Less
variable cost
($50,000)
Contribution margin
$50,000
The following cost data relate to the manufacturing activities of Black Diamond Ski Company during 2013:
Manufacturing Overhead Costs:
Property taxes, factory $ 3,000
Utilities, factory $ 5,000
Indirect labor $10,000
Depreciation, factory $24,000
Insurance, factory $ 6,000
Total Actual Manufacturing OH Costs $48,000 Other Costs Incurred: Purchases of raw materials $32,000 Direct labor costs $40,000 The Black Diamond Ski Company used 10,200 machine hours during the period. Inventories: Raw Materials, 1/1/13 $ 8,000 Raw Materials, 12/31/13 $ 7,000 Work in Process, 1/1/13 $ 6,000 Work in Process, 12/31/13 $ 7,500 The company uses normal costing to record product costs. The company budgeted for $52,500 in total overhead costs for the year. The cost driver associated with the overhead is machine hours and the company expected to use 10,500 machine hours.
REQUIRED:
1) Compute the amount of over-applied or under-applied overhead cost for the year.
2) Determine the cost of goods manufactured for the year.
Answer:
See Below
Explanation:
1.
= Actual manufacturing overhead cost - Budgeted total overhead
Actual manufacturing overhead cost = $48,000
Budgeted total overhead = $52,500
= $48,000 - $52,500
= $4,500
The above is under applied overhead since Budgeted overhead is more than the actual overhead expended.
2. Cost of goods manufactured
Inventories ; raw materials at the beginning
$8,000
Add purchases of raw materials
$32,000
Less direct materials ending
$7,000
Direct materials used
$33,000
Direct labor cost
$40,000
Manufacturing overhead cost
$77,000
Indirect labor
$10,000
Property tax
$3,000
Utilities factory
$3,000
Describe what will happen to total revenue in the following situations: 1. Price decreases and demand is elastic 2. Price decreases and demand is inelastic 3. Price increases and demand is elastic 4. Price increases and demand is inelastic 5. Price increases and demand is unitary elastic 6. Price decreases and demand is perfectly inelastic 7. Price increases and demand is perfectly elastic
Answer:
Total revenue increases
If prices are reduced, demand would increase more than the fall in price and total revenue would increase.
2. Total revenue falls. If price is reduced, there would be little or no change in quantity demanded and as a result total revenue would fall.
3. Total revenue falls. If prices are increased, demand would fall more than the rise in price and total revenue would fall.
4, Total revenue increases. If demand is inelastic and prices are increased, the rise in price would be greater than the fall in demand. As a result, total revenue increases
5. no change in total revenue . a increase in price leads to an equal change in quantity demanded and there would be no change in total revenue
6. fall. If prices decreases, there would be no change in quantity demanded and total revenue would fall
7. total revenue falls to zero. If prices are increased, demand would fall to zero and total revenue would fall
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. If prices are reduced, demand would increase more than the fall in price and total revenue would increase. If prices are increased, demand would fall more than the rise in price and total revenue would fall.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one. If price is increased, there would be little or no change in quantity demanded and total revenue would increase. If price is reduced, total revenue would fall.
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded. If price increases, there would be an equal change in quantity demanded, total revenue would remain the same
Answer:
a. The overall income will drop.
b. The overall income will drop.
c. The overall income will drop.
d. The overall income will rise.
e. The overall income will not change.
f. The overall income will not change.
g. The overall income will not change.
Explanation:
a. If there is an elastic demand for the product and the price goes down, the overall revenue will go down. This is due to the fact that when there is a decrease in price, there is a rise in the amount that is desired. This is due to the fact that customers are sensitive to changes in price and will begin purchasing a greater quantity of the item or service after the price has dropped. Yet, because of the drop in price, there will be a reduction in the overall income that is generated from the sale of the product or service. This is due to the fact that the increase in quantity will not be sufficient to compensate for the reduction in cost that will result from the sale.
b. If there is no change in the level of demand, but the price is decreased, total revenue will likewise go down. This is due to the fact that if there is a fall in price, there will be an increase in the amount that is desired. Unfortunately, the increase in quantity will not be sufficient to compensate for the reduction in price, which will result in a lower overall income. This is due to the fact that the increase in supply will not be sufficient to compensate for the reduction in cost.
c. If there is no significant change in demand, then higher prices will not significantly affect overall income. This is due to the fact that as the price goes up, the amount of the good that is desired will go down. This is due to the fact that customers are sensitive to changes in price and will begin purchasing less of the item or service as the price rises. Even if the rise in price is more than the reduction in quantity desired, the overall income will still fall because of the lower amount of the good or service that is being purchased.
d. If there is no change in the level of demand, a rise in price will lead to an increase in total income. This is due to the fact that if the price goes higher, the quantity needed will go down, but not by an amount that is sufficient to compensate for the price going up. As a consequence, there will be an increase in total income as a direct consequence of the price rise.
e. if the demand is unitary elastic and the price goes up, the overall revenue won't change but it will stay the same. This is due to the fact that whenever there is a rise in price, there is a corresponding fall in the number of goods that are desired. As a consequence, there will be no change in overall income as a result of the rise in price since it will be balanced out by the drop in quantity.
f. If there is no change in the level of demand, regardless of whether the price goes up or down, overall revenue will stay the same. This is due to the fact that even if prices go down, consumers will still want the same amount of the good or service. Thus, there will be no change in overall income as a consequence of the fall in price since this will be balanced out by the demand for the same amount.
g. If there is no change in demand despite a rise in price, businesses will get the same amount of revenue overall. This is due to the fact that once the price is raised, customers will no longer purchase any of the product or service. Because of this, there will be no change in overall income as a consequence of the rise in price since there will be no change in the amount that is required.
Matrix Inc. calculates cost for an equivalent unit of production using both the weighted-average and the FIFO methods.
Data for July:
Work-in-process inventory, July 1 (36,000 units):
Direct materials (100% completed) $122,400
Conversion (50% completed) 76,800
Balance in work in process inventory, July 1 $199,200
Units started during July 90,000
Units completed and transferred 102,000
Work-in-process inventory, July 31:
Direct materials (100% completed) 24,000
Conversion (50% completed)
Cost incurred during July:
Direct materials $180,000
Conversion costs 288,000
Cost per equivalent unit for conversion under the FIFO method is calculated to be:__________
(please provide step by step solution for further understanding)
a) $2.40.
b) $3.20.
c) $3.00.
d) $3.10.
e) $2.00.
Answer:
c) $3.00
Explanation:
The FIFO method assumes that the cost of the Beginning Work In Process will automatically go towards the completed units, because the units that were incomplete for the previous period are the first to be completed in the current period. Thus, we are only interested in the current costs instead of getting a weighted average (combining the cost of last year in beginning inventory and the cost of the current period).
Step 1
Calculate the equivalent units
To finish Beginning work in Process (36,000 x 50%) = 18,000
Started and Completed (102,000 - 36,000) x 100% = 66,000
Ending Work In Process (24,000 x 50%) = 12,000
Equivalent units of production for conversion Costs = 96,000
Step 2
Determine the Conversion Costs for the Current period
Conversion Costs incurred = $288,000
Step 3
Determine the Cost per equivalent unit for conversion costs
Cost per equivalent unit = Total Cost ÷ Total Equivalent units
therefore,
Cost per equivalent unit = $288,000 ÷ 96,000 = $3.00
Joanna is a Master Sergeant in the U.S. Air Force. In June of 2019, her duty station changed from Offutt Air Force Base in Nebraska to Lackland Air Force Base in Texas. She drove 918 miles and spent $1,300 to move her household items. Joanna also incurred costs of $880 when she sold her home in her former city. Included on her Form W-2, in box 12, is code P for $1,484. Joanna's moving expenses adjustment is
Answer:
$1,300
Explanation:
Based on the information given we were told that She drove 918 miles in which spent the amount of $1,300 to move all her household items which simply means that her moving expenses adjustment will be the amount of $1,300 which was the amount spent to move her household items from Nebraska to Texas.
Therefore Joanna's moving expenses adjustment is $1,300.
Suppose you win $1 million in a lottery and your winnings are scheduled to be paid as follows: $400000 at the end of one year, $400000 at the end of two years, and $200000 at the end of three years. If the interest rate is 5 percent, what is the present discounted value of your winnings
Answer:
The present discounted value of the winnings is $916,531.69.
Explanation:
The present discounted values of each of the payment can be calculated using the present value formula as follows:
PV = FV / (1 + r)^n ...................... (1)
Where;
PV = Present discounted value of payment at the end of specified year(s)
FV = Future value or the scheduled amount
r = interest rate
n = year in which the payment is scheduled to be paid
Using equation (1), we have:
PV of payment at the end of one year = $400000 / (1 + 5%)^1 = $380,952.38
PV of payment at the end of two years = $400000 / (1 + 5%)^2 = $362,811.79
PV of payment at the end of three years = $200000 / (1 + 5%)^3 = $172,767.52
The present discounted value of the winnings can now be calculated as the additions of the 3 PVs above as follows:
PV of the winnings = PV of payment at the end of one year + PV of payment at the end of two years + PV of payment at the end of three years = $380,952.38 + $362,811.79 + $172,767.52 = $916,531.69
Therefore, the present discounted value of the winnings is $916,531.69.
How large is my target market?
are capital markets also organisational markets?
Answer:A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.[6] Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments.[a] Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.
Modern capital markets are almost invariably hosted on computer-based electronic trading platforms; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. As an example, in the United States, any American citizen with an internet connection can create an account with TreasuryDirect and use it to buy bonds in the primary market, though sales to individuals form only a tiny fraction of the total volume of bonds sold. Various private companies provide browser-based platforms that allow individuals to buy shares and sometimes even bonds in the secondary markets. There are many thousands of such systems, most serving only small parts of the overall capital markets. Entities hosting the systems include stock exchanges, investment banks, and government departments. Physically, the systems are hosted all over the world, though they tend to be concentrated in financial centres like London, New York, and Hong Kong.
Explanation:
please i need more it has to be 90 secs PLSSSSSS i need help i hate this class its college prep i beg you
passion is a docter has to be 90 sec pls
Answer:
what is the question?
Explanation:
5. Microeconomics and macroeconomics Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics Macroeconomics The effect of government regulation on a monopolist's production decisions The effects of the Internet on the pricing of used cars The effect of federal government spending on the national unemployment rate
Answer:
Microeconomics
Microeconomics
Macroeconomics
Explanation:
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources
Microeconomics: The effect of government regulation on a monopolist's production decisions.
Microeconomics: The effects of the Internet on the pricing of used cars.
Macroeconomics: The effect of federal government spending on the national unemployment rate.
The effect of government regulation on a monopolist's production decisions: This topic would likely be studied in microeconomics. Microeconomics analyzes the behavior of individual firms, and the impact of government regulation on a monopolist's production decisions falls within this domain. The study would explore how government policies and regulations influence the production output, pricing strategies, and market behavior of a monopolist.
The effects of the Internet on the pricing of used cars: This topic would also be studied in microeconomics. The Internet's impact on the pricing of used cars relates to how individual buyers and sellers interact in a specific market. Microeconomics would investigate how the availability of online platforms, increased access to information, and changes in buyer-seller dynamics affect the pricing decisions of used cars.
The effect of federal government spending on the national unemployment rate: This topic would be studied in macroeconomics. Macroeconomics focuses on the overall economy and aggregates like national income, employment, and inflation. The effect of federal government spending on the national unemployment rate is a macroeconomic question that looks at how government expenditures, such as infrastructure projects or stimulus packages, can influence the overall level of unemployment in the country.
To know more about macroeconomics here
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Someone offers to buy your old Ford F-150 truck for 4 equal annual payments, beginning 2 years from today. If you think that the present value of your Ford Truck is only $9,000 and you assume the interest rate is 10%, which one of the below would be the minimum annual payment that youâ d be willing to accept? $2,839.24 $3,435.48 $3,123.16 $2,250
Answer:
$3,123.16
Explanation:
The computation of the minimum annual payment is as follows:
Given that
RATE = 10%
NPER = 10%
PV = $9,000 × (1 + 0.1) = $9,900
FV = $0
The formula is shown below:
= PMT(RATE,NPER,-PV,FV,TYPE)
After applying the above formula, the monthly payment is $3,123.16