Suppose a firm wants to maintain a specific TIE ratio. It knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio.

a. True
b. False

Answers

Answer 1

Answer:

a. True

Explanation:

TIE means times interest earned, whose formula is provided below:

Times interest earned=EBIT/interest expense

With the above formula, we can determine the EBIT (earnings before interest and tax)

Depending on the company's cost structure, when  the operating costs are added to EBIT, the result would be the company's sales revenue

EBIT=Sales revenue-operating costs

Sales revenue=EBIT+operating costs


Related Questions

Miller owns a personal residence witha fair market value of $308,000 and an outstanding first mortgage of $246,400. Miller gets a secnd mortage on the residence and in return borrows $15,400 to purchase new jet skis. Interest on the $___________ of the first and second mortgage is treated as qualified residence indebtedness.

Answers

Answer: $246,400

Explanation:

Qualified residence indebtedness refers to the mortgage that's taken to purchase or improve on one's main home.

Based on the information given above, the on the $246,400 of the first and second mortgage is treated as qualified residence indebtedness.

A debtor, who owed a company $565, deposited a check in the bank. The bank credited the company’s account by the same account. However, in the company’s checkbook balance, it was credited as $556. What will the adjusting journal entries be?

The company will debit the cash account with $(9,556,547)and(Add,credit,debit)to the accounts receivable account the same amount to rectify the error.

Answers

Answer:

9 and credit

Explanation:

got it correct on edmentum/plato

Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.

Feb. 2 Purchased for cash 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Received dividends of $0.30 per share on Wong Inc. stock.
June 7 Purchased 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Sold 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25 Received dividends of $0.40 per share on Wong Inc. stock.

Answers

Answer:

Yerbury Corp.

Journal Entries:

Feb. 2 Debit Investment in Wong Inc. $106,110

Credit Cash $106,110

To record the purchase of 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.

Mar. 6 Debit Cash $1,590

Credit Dividend Revenue $1,590

To record the receipt of dividends of $0.30 per 5,300 shares on Wong Inc. stock.

June 7 Debit Investment in Wong Inc. $52,125

Credit Cash $52,125

To record the purchase of 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.

July 26 Debit Cash $210,000

Credit Investment in Wong Inc. $124,354

Credit Gain from Investment in Wong Inc. $85,646

To record the sale of 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission.

Sept. 25 Debit Cash $ 520

Credit Dividends revenue $ 520

To record the receipt of dividends of $0.40 per 1,300 shares on Wong Inc. stock.

Explanation:

a) Data and Analysis:

Feb. 2 Investment in Wong Inc. $106,110 Cash $106,110

5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.

Mar. 6 Cash $1,590 Dividend Revenue $1,590

dividends of $0.30 per share on Wong Inc. stock.

June 7 Investment in Wong Inc. $52,125 Cash $52,125

2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.

July 26 Cash $210,000 Investment in Wong Inc. $124,354 Gain from Investment in Wong Inc. $85,646

6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.

Sept. 25 Cash $ 520 Dividends revenue $ 520 dividends of $0.40 per 1,300 shares on Wong Inc. stock.

The specific-factors model is often referred to as the short-run model. Why is this the case and how does it relate to the marginal product of labor (MPL) in each sector and the production possibilities frontier (PPF)?

Answers

Answer:

A short run model is one in which particular means of production such as land, are fixed and cannot be moved between sectors or businesses. There is unrestricted labour movement amongst these different sectors, therefore each market's marginal product of labour is identical. As a result, an economy's overall workforce level is optimal.

Because greater and greater labour inputs are introduced, there are decreasing returns to scale, as well as the marginal product of labour continues to fall. As a result, the PPF curve is indeed concave and slants downward. To achieve full employment, the country can export or import at any time. The United States, for example, both produces and imports oil.

Jennings Co. has total assets of $433.0 million. Its total liabilities are $114.5 million. Its equity is $318 million. Calculate the debt ratio. (Round your answer to 1 decimal place.)

Answers

Answer: 26.4%

Explanation:

The debt ratio is used to show how much of the company's assets is funded by debt.

It is calculated by the formula:

= Total liabilities / Total assets

= 114.5 / 433.0

= 0.2644

= 26.4%

You obtain the following estimates for an AR(2) model of some returns data
yt = 0.803yt−1 + 0.682yt−2 + ut
Where ut is a white noise error process. By examining the characteristic equation, check the estimated model for stationarity.

Answers

Answer:

AR(2) model is not stationary

Explanation:

Given model  :  Yt = 0.803yt-1   +  0.682yt-2 +  ut  ---- ( 1 )

ut = noise error process

Aim : Check estimated model for stationarity

step 1 : represent the estimated polynomial of the model ( where: ut ∪ N(o,б^2 ) rewrite equation 1

Yt - 0.803yt-1  - 0.682yt-2  = ut  ------- ( 2 )

hence the polynomial can be represented as :

( 1 - 0.803B - 0.682B^2 )Yt = ut

Characteristic of the obtained polynomial can be represented as ;

1 - 0.803λ - 0.682λ^2 - 1 = 0

attached below is the remaining part of the solution

There are three equally-sized distinct subpopulations in Utopolis: unemployed, workers, and retirees. There are four possible social states which result in different utility levels for the three subpopulations:_______.
Social State Unemployed Workers Retirees
A 12 50 10
B 20 20 20
C 15 15 15
D 1 40 1
a. Which social states might plausibly be chosen by the government of Utopolis? And Why?
b. There is a government election in Utopolis with two candidates: a Rawlsian and a Utilitarian candidate. Each candidate promises to enact one of the social states above. If the majority of citizens elect the candidate, which social state will be enacted?

Answers

Answer:

A) social state A and social state D

B) Social state D

Explanation:

A) The social states that might be chosen by the government are

State A  and State D  : Because it has a reasonable number of active worker that are far greater than the unemployed and Retirees and this means that there is a reasonable amount of income  in the social states and the data from other social states looks quite Fraudulent because there is no way the unemployed = workers and also = Retirees

B) The social state that will most likely be enacted is Social state D and this is due to the High ratio of Active workers compared to the unemployed and retirees

Which types of post secondary education are examples of traditional academic education? Check all that apply

A. Associate Degree
B. Apprenticeship
C. Bachelor’s Degree
D. Technical School Degree

Answers

A and C (associates and bachelors)
It’s a and c I think

Fill in the blanks below. Possible options are given in the parentheses after each blank. If American households and firms expect that the economic conditions in the US will become worse in the near future, there will be a real impact on the US economy, in particular on the price level and real output level. However, the Federal Reserve could try to reduce the impact by _______ (buying, selling) bonds. This action will result in a ________ (higher, lower) level of money supply and a ________ (higher, lower) level of interest rate. The effect of this interest rate change is that there will be _______ (more, less) investment and _________ (increased, decreased) real GDP.

Answers

Answer:

Expectation of worse economic condition means it is experiencing recession which expected to become worse in near future. The Fed tends to increase the money supply to induce investment, which bring increase in demand and lead to an increase in real GDP.

The Federal Reserve could try to reduce the impact by buying bonds. This action will result in a higher level of money supply and a lower level of interest rate. The effect of this interest rate change is that there will be more investment and increased real GDP.

Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 11.1%, and its cost of preferred stock is 12.2%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 14.7%. However, if it is necessary to raise new common equity, it will carry a cost of 16.8%. If its current tax rate is 40%, how much higher will Turnbull's weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retianed earnings?

Answers

Answer:

0.75%

Explanation:

In the first place, the weighted average cost of capital is the average cost of finance a firm incurs on aggregate on all its sources of finance a shown by the formula below:

WACC=(weight of equity*cost of equity)+(weight of preferred stock*cost of preferred stock)+(weight of debt*before-tax cost of debt )*(1-tax rate)

Note only debt has tax impact deduction

tax rate=40%

WACC using retained earnings:

WACC=(36%*14.7%)+( 6%* 12.2%)+(58%* 11.1%)*(1-40%)

WACC=9.89%

WACC using new common equity:

cost of new common equity=16.8%

WACC=(36%*16.8%)+( 6%* 12.2%)+(58%* 11.1%)*(1-40%)

WACC=10.64%

increase in WACC=10.64%-9.89%

increase in WACC=0.75%

Jay, a single taxpayer, purchased an annulty to help provide income during his retirement. He paid $36,000 for the annuity that provided a monthly benefit starting at his retirement date for the rest of Jay's life. His life expectancy at the time of his retirement was 180 months. Jay collected 192 payments before he died.
Which of the following is true?
a. Since Jay is no longer working, none of the payments must be included in his gross income.
b. The first $36,000 received is a nontaxable recovery of capital, and all subsequent annuity payments are taxable.
c. If Jay's income is below $25,000, none of the payments he receives are taxable.
d. All of the last 12 payments he received are taxable.

Answers

Answer:

d. All of the last 12 payments he received are taxable.

Explanation:

In the case when the life expectancy is 180 months and collected 192 payments prior he died

So according to the question, all the 12 payments would be received are taxable

Here the payment that received for 180 months would not be involved in the gross income and the remaining 12 payment would be taxable

Therefore the option d is correct

Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item.

Answers

Answer:

Item           Inventory at the lower-of-cost-or-market

 #1                                    $214.50

 #2                                  $240.00

 #3                                  $266.50

 #4                                   $315.00

 #5                                  $422.50

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See attached pdf file for the complete question.

Also note: See the attached excel file for the determination of the value of inventory by applying the lower-of-cost-or-market rule.

From the attached excel file, we have:

Item           Inventory at the lower-of-cost-or-market

 #1                                    $214.50

 #2                                  $240.00

 #3                                  $266.50

 #4                                   $315.00

 #5                                  $422.50

When making a big decision, there's a six-step process that can help you.
True
False

Answers

True! it is six steps

Answer:True

Explanation:

The standard cost of Product B manufactured by Pharrell Company Includes 3.7 units of direct materials at $6.8 per unit. During June, 26, 600 units of direct materials are purchased at a cost of $6.70 per unit, and 26, 600 units of direct materials are used to produce 7, 100 units of Product B.
(a) Compute the total materials variance and the price and quantity variances.
Total materials variance $
Materials price variance $
Materials quantity variance $
(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.90 and the quantity purchased and used is 27,000 units.
Total materials variance $
Materials price variance $
Materials quantity variance %

Answers

Answer and Explanation:

The computation is shown below;

(a)

Total materials variance:

= ( AQ × AP ) - ( SQ × SP )

= (26600 × $6.70) - (26270 × $6.8)

= $178220 - $178636

= $416 F

Here

= 7100 × 3.7

=26,270

Materials price variance:

= ( AQ × AP ) - ( AQ × SP )

= (26600 × $6.70) - (26600 × $6.8)

= $178220 - $180,880

= $2660 F

Materials quantity variance:

= ( AQ × SP ) - ( SQ × SP )

= (26600 × $6.8) - (26270 × $6.8)

= $180,880- $178636

= $2244 U

(b)

(a) Total materials variance:

= ( AQ × AP ) - ( SQ × SP )

= (27000 × $6.90) - (26270 × $6.8)

= $186300 - $178636

= $7664 U

Here

= 7100 × 3.7

=26,270

Materials price variance:

= ( AQ × AP ) - ( AQ × SP )

= (27000 × $6.90) - (27000 × $6.8)

= $186300 - $183600

= $2700 U

Materials quantity variance:

= ( AQ × SP ) - ( SQ × SP )

= (27000 × $6.8) - (26270 × $6.8)

= $180,880- $178636

= $4964 U

Accounts payable increase $9,000
Accounts receivable increase 4,000
Salaries payable decrease 3,000
Amortization expense 6,000
Cash balance, January 1 22.000
Cash balance, December 31 15,000
Cash paid as dividends 29,000
Cash paid to purchase land 90,000
Cash paid to retire bonds payable at par 60,000
Cash received from issuance of common stock 35,000
Cash received from sale of equipment 17,000
Depreciation expense 29,000
Gain on sale of equipment 4,000
Inventory decrease 13,000
Net income 76,000
Prepaid expenses increase 2,000
Cash Flow statement - indirect method
Cash Flow
Net Income 76,000.00
Gain on Sale of Equipment $(4,000.00)
Depreciation 29,000.00
Amortization Expense 6,000.00 $31,000.00
Adjustments
Decrease in inventory $13,000.00
Gain On sale of equipment (4,000.00)
Decrease In accrued Liability (3,000.00)
Increase in prepaid expenses (2.000.00)
Increase in Accounts Payable 9,000.00 13,000.00
120,000.00
Determine which of the above affects the Investing Activities (IA) and which affects the Financing Activities (FA). Note: Insert IA or FA next to the information above, or fill in the information below.

Answers

Answer:

a. The items that affect Investing Activities (IA) are as follows:

Cash paid to purchase land 90,000

Cash received from sale of equipment 17,000

b. The items that affect Financing Activities (FA) are as follows:

Cash paid as dividends 29,000

Cash paid to retire bonds payable at par 60,000

Cash received from issuance of common stock 35,000

Explanation:

Using the items that affect the Investing Activities (IA) and the Financing Activities (FA) in the answer above, the indirect cash flow statements can be completed as follows:

Cash Flow statement - indirect method

For the Year Ended December 31, ...

Details                                                                    $                        $    

Net Income                                                     76,000.00

Gain on Sale of Equipment                            (4,000.00)

Depreciation                                                   29,000.00

Amortization Expense                                     6,000.00  

Adjustments

Decrease in inventory                                    13,000.00

Gain On sale of equipment                           (4,000.00)

Decrease In accrued Liability                        (3,000.00)

Increase in prepaid expenses                       (2.000.00)

Increase in Accounts Payable                       9,000.00  

Cash flows from operating activities                                      120,000.00

Investing Activities (IA)

Cash paid to purchase land                       (90,000.00)

Cash received from sale of equipment       17,000.00  

Cash flows from investing activities                                        73,000.00

Financing Activities (FA)

Cash paid as dividends                              (29,000.00)

Cash paid to retire bonds payable at par (60,000.00)

Cash from common stock issued                35,000.00

Cash flows from financing activities                                       54,000.00  

Net cash outflows for the year                                               (7,000.00)

Cash balance, January 1                                                          22,000.00

Cash balance, December 31                                                    15,000.00

(ASAP!!!!)
Go over the bank statement and answer the questions in detail. Use information
from the statement to support your answers.

1. This bank statement is most likely for what kind of account? Provide at least two
pieces of evidence from the statement that explain why.

Answers

1. Credit account and Store accounts

Answer:

1.credit card; credit line and payment due date are shown

2.about $2243; credit available less the pending transaction

3.use more than one account; ask for a credit line increase

4.a finance charge is added; credit rating will be negatively impacted

Explanation:

1.

Deposit accounts do not have a "Payment Due Date", so this indicates a loan account of some sort. The listing of transactions with different descriptions suggests the account is used to pay a variety of creditors. The lines "credit line" and "credit available" further suggest this is a credit-card or line-of-credit type of account.

2.

The "total credit available' is a good starting indication of the additional amount the account owner can spend. There are some caveats. One is that there is a pending transaction, which will reduce the available limit when it is paid. Another is that using the maximum available credit will negatively impact the owner's credit score.

That score is maximized if the percentage of available credit used is below some amount (about 10%). A 30% utilization rate is a suggested maximum for maintaining a good credit score.

3.

Several options may be open:

the medical biller may allow payment over time

this account owner may have enough for the payment in all accounts together. (They payment may be split among different available accounts.)

this account owner can ask the credit line be raised

4.

Failure to make a payment will cause ...

a finance charge to be added to the account

(possibly) a late-payment charge to be added to the account

a "failure to pay as agreed" notice to credit reporting agencies

available credit to be reduced (possibly to zero)

The details of the consequences of a missed payment are in the account terms and conditions provided by the bank.

Compute the Work-in-Process transferred to the finished goods warehouse on April 30 using the following information:

Work-In-Process Inventory, April 30 $175
Direct material purchased during April 150
Work-In-Process Inventory, April 1 200
Direct labor costs incurred 300
Manufacturing overhead costs 250
Direct materials used in production 125

a. $1,170.
b. $1,035.
c. $1,120.
d. $985

Answers

Answer:

$700

Explanation:

The computation of work-in-progress transferred to the finished goods is given below:

We know that  

= Work-In-Process inventory, April 1 + Direct materials used in production + Direct labor costs incurred + Manufacturing overhead costs - Work-In-Process Inventory, April 30

= $200 + $125 + $300 + $250 - $175

= $700

Hence, this is a correct answer

You are a CEO of a tech company in California and you will be presenting to a group of technology professionals in a country of your choice; prepare a short audience profile of your audience and their needs. Conduct research to learn about your country and expectations of your audience in that country.

Answers

Answer:

The audience will be professional from various tech companies and organization that uses technology.

Explanation:

The audience will be IT experts from various organization who will have detailed knowledge of technological advancements in the world. As a CEO, I should have deep and extensive knowledge about the technology and should be able to answer the questions raised by the audience.

Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years.
The investment costs $56,100 and has an estimated $7,500 salvage value.
Assume Peng requires a 5% return on its investments.
Compute the net present value of this investment.
(FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative amounts should be indicated by a minus sign.)
Cash Flow Select Chart Amount X PV Factor = Present Value
Annual cash flow Present Value of an Annuity of 1 ? X 2.7232 ?
Residual value Present Value of 1 $ 7,500 X 0.8638 = $ 6,479
Present value of cash inflows ?
Immediate cash outflows

Answers

Answer:

3482.12

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = net income + depreciation = 16,200 + 3300 = 35,700

($56,100 - $7500) / 3 = 16,200

Cash flow in year 0 = 56,100

cash flow in year 1 and 2 = 35700

cash flow in year 3 = 35,700 + 7500

i = 5%

NPV =

Tesla, founded in 2003, is a company that specializes in electric power technology. The firm sells its powertrain components to other car companies. At the same time, it is selling a high-performance electric Roadster and the Model S and Model X luxury cars. The company is serving two customers at the same time, both with a focused differentiation strategy: high-end car buyers and car manufacturers with electric cars in their portfolio. This has a potential conflict, creating potential competitors for the end-user businesses who have deeper pockets and a wider reach, which could slow our growth to car buyers. However, your founder, Elon Musk, believes that electric cars should be available for everyone.

Required:
Analyze the situation. Which strategy do you think Tesla should pursue moving forward to align with Mr. Musk’s goals?

Answers

Answer:

Choose to continue selling both cars as well as the technology to competitors

Explanation:

Based on the information given since Elon is of the believes that electric cars should be made available for everyone which means that the strategy I think Tesla should pursue moving forward in order to align with Mr. Musk’s goals is to CHOOSE TO CONTINUE SELLING BOTH CARS AND THE TECHNOLOGY TO COMPETITORS in order to put an end to any conflict creating potential competitors for the end-user that may arise which may likely slow the company growth to car buyers.

The World Trade Organization (WTO): __________

a. includes all of the same countries that signed the Uruguay Round
b. has emerged as the world's most powerful institution for reducing trade barriers and opening markets
c. does not yet have an effective dispute settlement procedure but will before the year 2005
d. is controlled by the United States
e. includes China and Russia among its members

Answers

Answer:

B , E are correct.

Explanation:

World Trade Organisation is an international organisation - that regulates, supervises, attempts to liberalise & world trade.

So, it is the world's most powerful institution for reducing trade barriers and opening markets.

It has 164 member countries. China and Russia are the members, which joined on 11 dec 2001 & 22 Aug 2012 respect.

'A' is false, as many countries joined after the preliminary Uruguay Round. Its an inter governmental  organisation, is not controlled by any single government (like US)

Mustafa manufacturing company began operations on january 1. During the year, it started and completed 3, 000 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs:

Raw materials purchased and used—$6,200.
Wages of production workers—$7,400.
Salaries of administrative and sales personnel—$3,000.
Depreciation on manufacturing equipment—$4,400.
Depreciation on administrative equipment—$2,200.

Required
a. Determine the total product cost for the year.
b. Determine the total cost of the ending inventory.
c. Determine the total of cost of goods sold.

Answers

Answer and Explanation:

The computation is shown below;

a. The total product cost is  

Raw materials purchased and used  $6,200

Wages of production workers $7,400

 Depreciation on manufacturing equipment $4,400

Total Product Cost  $18,000

b. The total cost of the Inventory is  

Units Completed = 3,000 units  

Units Sold = 2,400 units  

SO, the Units in ending inventory units is 600 units

Now the  Total cost of the Inventory is

= $18,000 × [600 ÷ 3,000 ]

= $3600

c. The total cost of goods sold is  

= $18,000 × [2,400 ÷ 3,000 ]

= $14,400

You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. After completing your review, you list the following three items for discussion with your superior: An investment of $30,000 is included in current assets. Management has indicated that it has no intention of liquidating the investment in 2022. A $100,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10 equal annual installments with the first installment due on March 31, 2022. Deferred revenue of $60,000 is included as a current liability even though only two-thirds will be recognized as revenue in 2022, and the other one-third in 2023.

Required:
Determine the appropriate classification of each of these items.

Answers

Answer:

Champion Cleaning

Appropriate Classifications:

Long-term assets:

Investment of $30,000

Current liabilities:

Short-term note payable $10,000

Short-term deferred revenue $40,000

Long-term liabilities:

Long-term note payable $90,000

Long-term deferred revenue $20,000

Explanation:

a) Data and Analysis:

Investment of $30,000 = long-term asset

Note payable:

Short-term note payable = $10,000 ($100,000/10)

Long-term note payable = $90,000 ($100,000/10 * 9)

Deferred Revenue:

Short-term deferred revenue = $40,000 ($60,000 * 2/3)

Long-term deferred revenue = $20,000 ($60,000 * 1/3)

1. Construct the project network, given the activity precedence information provided.

Activity Immediate Predecessors
A -
B -
C B
D A
E B
F B
G D, E
H F

2. Construct the project network, given the activity precedence information provided.

Activity Immediate Predecessors
A -
B -
C A, B
D B
E B
F C, D, E
G E

Answers

Answer:

SO like basically yopujust gea

Explanation:

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and mookies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods. Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 20%, the quantity of frizzles sold decreases by 22% and the quantity of mookies sold increases by 7%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together.

Complete the first column of the following table by computing the cross-price elasticity between guppy gummies and raskels, and then between guppy gummies and mookies.

Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Guppy Gummies
Raskels
Mookies

Answers

Answer:

1.1 substitutes do not market together

-0.35 complements market together

Explanation:

1.1

-0.35

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

Substitute goods are goods that can be used in place of another good.

if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Cross price elasticity = percentage change in quantity demanded of good A / percentage change in the price of good B

Frizzles = -22% / -20% = 1.1

Mookies = 7 / -20 = -0.35

Keynesian economics:__________

a. focuses on the long run rather than the short run.
b. stresses the importance of savings to increase investment and long-run aggregate supply.
c. emphasizes that the economy is inherently stable and self-correcting.
d. maintains that prices and wages are fully flexible.
e. focuses on spending, or aggregate demand, as the fundamental factor in the economy.

Answers

Answer:

The correct answer is the option E: focuses on spending, or aggregate demand, as the fundamental factor in the economy.

Explanation:

To begin with, in the economics field the Keynesian theory was developed by John Keynes after the Great Depression in 1929 due to the fact that by then the economics area was conducted by neoliberal economists and it lead to the situation in which they found themself then so Keynes proposed the intervention of the government as more important for the economy and focusing primarily in the spending of this one with the purpose of creating more jobs and therefore the people will increase the demand because they would have money now.

Which are examples of long-term goals? Select all that apply.

o joining a club or a team

o participating in a competition

o becoming fluent in another language

o saving for retirement

o writing a book

o getting a specific grade in a class

Answers

Answer:

d

Explanation:

Which individuals is exempt from licensure under Florida statute 475?

Answers

Answer:

Explanation:

The plumber must first be licensed under F.S. 475, Part II. Persons appointed by a court of law to perform real estate services are exempt from real estate licensing requirements when employed by government agencies, railroads, rural electric cooperatives, or public utilities.

A machine with a book value of $250,400 has an estimated six-year life. A proposal is offered to sell the old machine for $215,300 and replace it with a new machine at a cost of $283,100. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $50,900 to $40,700.

Required:
a. Prepare a differential analysis dated February 18 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2).
b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)?

Answers

Answer:

A.Continue with Old Machine (Alt. 1) $305,400

Replace Old Machine (Alt. 2) $312,000

Differential effect on net income (Alt. 2) $6,600

B. Continue with the old machine (Alternative 1

Explanation:

a. Preparation of a differential analysis dated February 18 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2).

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) February 18

Continue with Old Machine (Alt. 1) Replace Old Machine (Alt. 2) Differential effect on net income (Alt. 2)

Revenues:

Proceeds from sale of old machine $0 $215,300 $215,300

Costs:

Purchase price $0 –$283,100 –$283,100

Direct labor (6 years) –$305,400 -$244,200 $61,200

($50,900*6years=$305,400)

($40,700*6years=$244,200)

Income (Loss) –$305,400 –$312,000 –$6,600

B. Based on the above differential analysis

The company should continue with the old machine (Alternative 1) .

Write about why it is important for world leaders to make just decisions for their people and to treat neighboring countries with respect.

Answers

Answer: Approaches to authority and decision making are not the only ways in which cultures differ, but they are arguably the most important in the leadership context. ... (For a more general treatment of cultural differences, take a look at my May 2014 ... with companies in those countries, you might have noticed that a lot of people ...

Explanation:

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