Answer: a. They should deal directly with retailers, cutting out wholesalers.
Explanation:
When an industry is said to be concentrated, it means that there aren't a lot of competitors in the market. This means that relatively, only a few firms are in control of the sector.
Wholesalers offer then advantage of providing a bridge with the producer and businesses when the number of businesses is too high for the producer to go to each one individually. As this is not the case here, Sondra's company should deal directly with the retailers because there are few of them.
a. Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks
Answer:
Note: Question is incomplete but full question is attached as picture below
a) Expected return = Probability of recession*Return during recession + Probability of normal*Return during normal + Probability of boom*Return during boom
Expected return for stock A = 0.21*0.04 +0.61*0.12 + 0.18*0.30
Expected return for stock A = 0.1356
Expected return for stock A = 13.56%
Expected return for stock B = 0.21*-0.41 + 0.61*0.31 + 0.18*0.54
Expected return for stock B = 0.2002
Expected return for stock B = 20.02%
b) Standard deviation of stock = √{Probability(Recession)*(Rate during recession - expected rate )^2 + Probability(Normal)(Rate during normal - expected return)^2 + Probability(Boom)*(Rate in boom - Expected return)^2}
Standard deviation of stock A = √[(0.21*(0.04-0.1356)^2 + 0.61*(0.12 - 0.1356)^2 + 0.18*(0.30-0.1356)^2)^0.5]
Standard deviation of stock A = 0.0832
Standard deviation of stock A = 8.32
Standard deviation of stock B = √(0.21*(-0.41-0.2002)^2 + 0.61*(0.31 - 0.2002)^2 + 0.18*(0.54-0.2002)^2)^0.5]
Standard deviation of stock B = 0.3260
Standard deviation of stock B = 32.60%
The 2745 people residing in the state of Oz want their yellow brick road repaved. It could be repaved with standard asphalt for a cost of $427957 or with shimmering gold asphalt for $5752665 . The senator that represents Oz in the national legislature argues that the yellow brick road is a national treasure and a tourist attraction. As such, the senator argues that the nation of 4801565 people should pay for the repaving. Round your answer to two decimals for all of the following questions.
Required:
a. What is the cost per person if the national government pays for gold asphalt?
b. What is the cost per person if the state of Oz pays for gold asphalt?
c. What is the cost per person if the state of Oz pays for standard asphalt?
Answer:
a. Cost per person = $1.20 per person
b. Cost per person = $2,095.69 per person
c. Cost per person = $155.90 per person
Explanation:
a. What is the cost per person if the national government pays for gold asphalt?
This can be calculated as follows:
Cost per person = Cost of gold asphalt / Total population of the nation = $5752665 / 4801565 = $1.20 per person
b. What is the cost per person if the state of Oz pays for gold asphalt?
This can be calculated as follows:
Cost per person = Cost of gold asphalt / Total population of the state of Oz = $5752665 / 2745 = $2,095.69 per person
c. What is the cost per person if the state of Oz pays for standard asphalt?
This can be calculated as follows:
Cost per person = Cost of standard asphalt / Total population of the state of Oz = $427957 / 2745 = $155.90 per person
The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and which protects humans from ultraviolet radiation. Output of this substance has been restricted by a licensing system where producers have to bid in the open market for licenses to produce them in specified quantities. This is an example of dealing with externalities by
Answer:
Market mechanism.
Explanation:
Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.
A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.
On the other hand, a negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.
In this scenario, this is an example of dealing with externalities by market mechanism because the producers have to bid in the open market for licenses to produce these substances in specified quantities
Common Law is?
A. The basis of the legal system in the United States, England, and most of Western Europe.
B. Based on a commonly accepted principles that are then legislated as laws.
C. A contract between two people or companies.
D. A complete set of laws based on commonly accepted principles that are enacted as a single code.
Answer:
hope this helps uuuuu.......
Explanation:
D........A complete set...
Increases in profits would let an entrepreneur owner know which of the following
A That increasing price at this point would definitely increase profits.
B That that it is time to consider additional advertising.
C That it would be safe to cut back on advertising and pocket the savings.
D That they may be able to expand their product lines with additional products.
E That they have correctly identified the target markets of their products or services,
F. That consumers like the products and services being offered.
Answer:
A
Explanation:
because it's increasing price at this point or
it would definitely increase
hehe
Parent Co. purchased the entire business of Subsidiary Co. including all its assets and liabilitie:s for $600,000. Below is information related to the two companies:
Parent Subsidiary
Fair value of assets $1,050,000 $800,000
Fair value of liabilities 575,000 300,000
Reported assets 800,000 650,000
Reportedliabilities 500,000 250,000
Net Income for the year 60,000 50,000
How much goodwill did Parent pay for acquiring Subsidiary?
A) S200,000.
B) $150,000.
C) $300,000
D) $100,000.
Answer:
Option D ($100,000) is the correct choice.
Explanation:
Given:
Fair value of Assets,
= $800,000
Fair value of liabilities,
= $300,000
Consideration amount,
= $600,000
Now,
The net assets of subsidiary will be:
= [tex]Assets \ fair \ value-Liabilities \ fair \ value[/tex]
= [tex]800000-300000[/tex]
= [tex]500000[/tex]
hence,
The goodwill will be:
= [tex]Consideration \ amount-Net \ assets \ of \ subsidiary[/tex]
= [tex]600000-500000[/tex]
= [tex]100000[/tex] ($)
The following is a summary of information presented on the financial statements of a company on December 31, 2025. Account 2025 2024 Net Sales Revenue $601,000 $504,000 Cost of Goods Sold 456,000 405,000 Gross Profit 145,000 99,000 Selling Expenses 51,000 54,000 Net Income Before Income Tax Expense 94,000 45,000 Income Tax Expense 39,000 23,000 Net Income $55,000 $22,000 With respect to gross profit, a horizontal analysis reveals ________. (Round your answer to two decimal places.)
Answer:
Changes in gross profit from 2024 to 2025 = Gross profit of 2025 - Gross profit of 2024
Changes in gross profit from 2024 to 2025 = $145,000 - $99,000
Changes in gross profit from 2024 to 2025 = $46,000
Horizontal analysis formula:
% change in gross profit = Change in parameter/Base year parameter * 100%
% change in gross profit = $46,000/$99,000 * 100
% change in gross profit = 46.46464646464646%
% change in gross profit = 46.46%
With respect to gross profit, a horizontal analysis reveals a 46.46% increase in gross profit from 2024 to 2025.
Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute break-even point in units if the new machine is purchased.
Answer:
See nelow
Explanation:
New fixed cost = $260,000 + $11,400 = $271,400
New variable cost = $24 - $3.5 = $20.5
New contribution margin = $50 - $20.5 = $29.5
Break even unit
= Fixed cost / Contribution margin
=$271,400 / 29.5
= 9,200 units
Therefore, break even points in dollars
= Break even unit × Sales per unit
= 9,200 units × $50
= $460,000
concord corporation purchased a new machine on may 1, 2012 for $559200. at the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $26400. the company has recorded monthly depreciation using the straight-line method. on march 1, 2021, the machine was sold for $71400. what schold be the loss regognized from the sale of the machine
Answer:
$17,160
Explanation:
According to the scenario, computation of the given data are as follows,
Purchase price = $559,200
Useful life = 10 years or 120 months
Salvage value = $26,400
Total time in months(May1,2012 - Mar1,2021) = 106 months
So, depreciation cost = ($559,200 - $26,400) ÷ 120 = $4,440 per month
So, total depreciation cost for 106 months = $4,440 × 106 = $470,640
Book value = Purchase price - depreciation
= $559,200 - $470,640
= $88,560
Hence, Loss = Book value - sold value
= $88,560 - $71,400
= $17,160
what are good ways to start earning money
Answer:
Explanation:
Sell your gently used clothes. ...
Trade in old phones, electronics for cash. ...
Drive for Uber, Lyft. ...
Make deliveries for Amazon, Uber Eats. ...
Become a dog walker or dog sitter. ...
Get a babysitting gig. ...
Find work as a housesitter. ...
Sell unused gift cards.
The steady growth line best supports which conclusion about the economy
represented in the graph?
A.The economy as a whole continues to grow between each
business cycle.
O B. The economy is weak and will likely enter a depression in the next
business cycle.
C. The economy has more pronounced peaks than valleys in each
business cycle.
D. The economy does not show a consistent pattern in its business
cycles.
Answer:
A.The economy as a whole continues to grow between each business cycle.
Explanation:
The steady growth line best supports the conclusion about the economy
represented in the graph is that "The economy as a whole continues to grow between each business cycle."
The above statement is true because the production output of the firm continues to rise with time. As time goes on in the business cycle of the firm, the firm continues to grow, which is evident in the increase in the level of production.
Sergey bought two shares of a stock at $22 each in early January 2018. At the end of a year he earned $2 dividend on each one. By year-end 2018 the price had risen to $22.50. In early January (after the holidays) he bought another share at that price. At year-end 2019 the price was $22.80 and the dividend of $2 a share was again paid out. What was the dollar weighted return on his investment?
Answer: 10.79%
Explanation:
Based on the information given, the return in year 1 will be:
= (22.5 + 2)/21 - 1
= 1.1136 - 1
= 0.1136
= 11.36%
The return in year 2 will be:
= (22.8 + 2)/22.5 - 1
= 1.1022 - 1
= 0.1022
= 10.22%
Therefore weighted return will be:
= (11.36% + 10.22%)/2
= 21.58%/2
= 10.79%
James, Inc. provides the following data: 2025 2024 Cash $132,000 $121,000 Accounts Receivable, Net 75,000 52,000 Merchandise Inventory 49,000 43,000 Property, Plant, and Equipment, Net 122,000 99,000 For the year ending December 31, 2025: Net Sales Revenue $451,000 Cost of Goods Sold (315,000) Gross Profit $136,000 Calculate the number of days' sales in inventory for 2025. (Use 365 days for any calculations.) A. 56.77 days B. 53.28 days C. 51.41 days D. 123.31 days
Answer:
Option A is correct
Days' sales in inventory= 56.77 days
Explanation:
The days' sales in inventory is the average length if days for which product remain in stock until they are sold. The shorter the days the better.
Days' sales in inventory = (closing stock/cost of goods sold) × 365 days
Days' sales in inventory= 49,000/315,000× 365 days= 56.77 days
Days' sales in inventory= 56.77 days
Magic Corporation manufactures water toys. It plans to grow by producing high-quality water toys that are delivered in a timely manner. There are a number of other manufacturers who produce similar water toys. Magic believes that continuously improving its manufacturing processes and re-engineering processes to downsize and eliminate excess capacity are critical to implementing its strategy. Which of the following best describes Magic's strategy?
A) product differentiation
B) product leadership
C) cost differentiation
D) cost leadership
Answer: D. Cost leadership
Explanation:
Magic's strategy in this case is cost leadership. Cost leadership is when a company produces ita product by using the lowest production cost and therefore has a competitive edge towards its rivals.
In a cost leadership strategy, the cost is reduced and the company therefore makes the least expensive goods in the industry and thus gain marhet share.
Assume that the marginal tax rate is as follows: 10% for $0-$10,000; 15% for $10,000.01-$25,000; 20% for $25,000.01-$50,000; and 25% for $50,000.01 or more. Next, assume a business has an EBIT of $10,100 and an interest expense of $0. What would you expect the average tax rate on the ROA to be
Answer:
e, 10.15%
Explanation:
The computation of the average tax rate on the ROA is shown below
Given that the business has an EBIT of $10,100 and the interest expense is $0
So based on the given options, we can say that the expected average tax rate on the ROA is 10.15%
Therefore, the option e is correct
And, the same would be considered and relevant
:
2. The process of monitoring performance, comparing it with goals and correcting any
significant deviations is known as?
a. Planningser
b. Organizing
c. Leadings
d. Controlling
Answer:
hope this helps
Explanation:
organizing
Drawing on her account at Regional Bank, Samantha writes a check to Isabella, who deposits the check in her saving account at Local Bank. Once the check has cleared, which of the following will occur to the money supply?
a. M1 will increase.
b. there will be no change in M1.
c. M1 will decrease.
d. M2 will increase.
Answer:
b
Explanation:
Assume that you are an intern with the Brayton Company, and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 40%; the next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is 10%, and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming?
Answer:
The firm's WACC will be "8.04%".
Explanation:
The given values are:
Yield of maturity,
= 7.75%
Rate of tax,
= 40%
Next year's dividend,
= $o.65
Growth,
= 6%
Share price,
= $15
Flotation cost,
= 10%
[tex]w_d=45 \ percent[/tex]
[tex]w_s=55 \ percent[/tex]
Now,
= [tex]r_d(1-Rate \ of \ tax)[/tex]
On substituting the values, we get
= [tex]7.75(1-0.40)[/tex]
= [tex]4.65 \ percent[/tex]
The [tex]r_e[/tex] will be:
= [tex]\frac{D1}{p}\times (1-F)+G[/tex]
= [tex]\frac{0.65}{15}\times (1-0.1)+6[/tex]
= [tex]4.81+6[/tex]
= [tex]10.81 \ percent[/tex]
hence,
The firm's WACC will be:
= [tex]w_d(r_d)(1-T)+w_s(r_s)[/tex]
= [tex]0.45\times 4.65+0.55\times 10.81[/tex]
= [tex]2.0925+5.9455[/tex]
= [tex]8.04[/tex]%
Assume a company is going to make an investment of $465,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Product A Option B, Product B $190,000 $150,000 195,000 175,000 65,000 65,000 25,000 85,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank 1 3.4 years Option B, Product B fill in the blank 2 3.8 years B. Which of the two options would you choose based on the payback method
Answer:
3.6 years
3.88 years
Option A would be chosen because it has a lower payback period than option B
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period for option A, Product A
Amount invested = $-465,000
Amount recovered in year 1 = $-465,000 + $190,000 = $-275,000
Amount recovered in year 2 = $-275,000 + $195,000 = $-80,000
Amount recovered in year 3 = $-80,000 + $65,000 = $-15,000
Amount recovered in year 1 = $-15,000 + $25,000 = $10,000
Payback period = 3 years + (15,000) / (25,000) = 3.6 years
Payback period for option b, Product b
Amount invested = $-465,000
Amount recovered in year 1 = $-465,000 + $150,000 = $-315,000
Amount recovered in year 1 = $-315,000 + 175,000 = $-140,000
Amount recovered in year 1 = $-140,000 + 65,000 = $-75,000
Amount recovered in year 1 = $-75,000 + $85,000 = $10,000
Payback period = 3 years + (75,000 / 85,000) = 3.88 years
Option A would be chosen because it has a lower payback period than option B
Consider the following payoff matrix for a game in which two firms attempt to collude under the Bertrand model:
Firm B cuts Firm B colludes
Firm A cuts 6,6 24,8
Firm A colludes 8,24 12,12
Here, the possible options are to retain the collusive price(collude) or to lower the price in attempt to increase the firm's market share (cut). The payoffs are stated in terms of millions of dollars of profits earned per year. What is the Nash equilibrium for this game?
a. Both firms cut prices.
b. Both firms collude.
c. B cuts and A colludes.
d. A cuts and B colludes.
Answer:
A
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
For either firm, the payoff of cutting price is either 6 or 24
For either firm, the payoff of colluding is either 8 or 12
the dominant strategy for both firms is to cut price because it is the best option regardless of what the other firm does as it yields the highest payoffs.
Thus, the Nash equilibrium is to cut price
Olivian Company wants to earn $300,000 in net (after-tax) income next year. Its product is priced at $300 per unit. Product costs include: Direct materials $90.00 Direct labor $66.00 Variable overhead $15.00 Total fixed factory overhead $405,000 Variable selling expense is $12 per unit; fixed selling and administrative expense totals $255,000. Olivian has a tax rate of 40 percent. Required:
Answer: See explanation
Explanation:
Your question isn't complete but I checked online and found the remainder of the question to be:
"Calculate the before-tax profit needed to achieve an after-tax target of $300,000".
The before tax profit will be:
= After tax profit / (1 - Tax rate)
= $300,000 / (1 - 40%)
= $300,000 / (1 - 0.4)
= $300,000 / 0.6
= $500,000
Therefore, the before-tax profit needed to achieve an after-tax target of $300,000 will be $500,000
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $660,000, 42%, and $13,200, respectively. The North Division’s contribution margin and contribution margin ratio are $119,600 and 46%, respectively. The South Division’s segment margin is $64,000. The company has $105,600 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).)
Answer:
The segment income are as follows:
Total Company = $118,800
North Division = $54,800
South Division = $64,000
Explanation:
Note: See the attached excel file for the Segmented Income Statement for Shannon Company.
In the attached excel file, the following notable calculations are done:
North's total sales = $119,600 / 46% = $260,000
South's total sales = $660,000 - $260,000 = $250,000
South's contribution margin = $277,200 - $119,600 = $157,600
Total segment income = Common fixed + Net income = $105,600 + $13,200 = $118,800
From the attached excel file, the segment income are as follows:
Total Company = $118,800
North Division = $54,800
South Division = $64,000
Which of the following situations describes a multiple regression? a.) Using the average salary of a homeowner and the number of bedrooms to predict the listing price and square footage of a home. b.) Using the listing price of a home to predict the annual salary of a homeowner, the number of bedrooms, and the square footage. c.) Using the average salary of a homeowner, the number of bedrooms, and the square footage to predict the listing price of a home. d.) Using the square footage to predict the listing price of a home.
Answer:C. Using the average salary of a homeowner, the number of bedrooms, and the square footage to predict the listing price of a home.
Explanation:
Multiple regression is simply a simple linear regression extension. Multiple regression is used when the researcher wants to forecast the value of a particular variable which is based on the value of other variables which are usually two or more.
With regards to the above question, the situation that describes the multiple regression is option C "Using the average salary of a homeowner, the number of bedrooms, and the square footage to predict the listing price of a home".
There are three variables that are involved which are the average salary of homeowner, the number of bed rooms and also the square feet to predict the listing price of the home.
Answer:
c.) Using the average salary of a homeowner, the number of bedrooms, and the square footage to predict the listing price of a home.
Explanation:
Got it right on the test.
Conduct a meeting with the client about negotiating. please write a conversation or scenario?
The correct answer to this open question is the following.
Conduct a meeting with the client about negotiating.
I choose to write about the scenario.
In this meeting with my client, I am going to provide him with important tools to improve his negotiation skills so he can get better deals for his company.
I would create the scenario in which I will be the other part he is about to negotiate with. For this to happen, I am going to explain some basic principles about negotiation and put a series of examples so he can grasp the most important ideas.
Secondly, I am going to share a handbook, or better said, a manual with important key principles of negotiation that could serve him as a guide so he can feel more confident during the negotiation process.
Finally, we are going to have at least thirty minutes to practice a real-life negotiation scenario. It is going to be something basic but real so my client can face some adversity since the beginning of the negotiation process so he can have a good idea of the importance of being fully prepared before entering the negotiating table.
6. In the year 1980, the median price for a house in New Hampshire was $95,000. By the year 2000, the median house value has appreciated to $133,300. What was the annual growth rate between 1980 and 2000 (state as a percent to one decimal place)
Answer: 1.7%
Explanation:
You can use the RATE function on Excel to calculate this.
Number of periods = 2000 - 1980 = 20
Payment = 0 as this is not a payment expression
Present value = -95000. Present value should be in decimals.
Future value = 133,300
The formula will return a value of 1.7% as shown in the attachment.
Current Attempt in Progress Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $187,990, net annual cash flows $39,500, and present value factor of cash inflows for 10 years is 5.02 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made. Net present value $enter the net present value in dollars The investment select an option be made.
Answer:
$10,300
the investment should be made because the NPV is positive
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV = present value of the cash flows - Cost of the asset
present value of the cash flows = ($39,500 x 10) x (5.02/10) = 198290
NPV = 198290 - $187,990 = $10,300
The NPV is positive. this means that the investment is profitable. So, the investment should be made
is a single research suitable for all research studies
Answer:
No, for some studies and most studies, multiple efforts should go in for accurate data...
Explanation:
ina Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $20,500 and $11,400 (original cost of $42,000 less accumulated depreciation of $30,600), respectively. To equalize market values of the exchanged assets, China Inn paid $8,700 in cash to Midwest Chicken. 1. At what amount did China Inn record the delivery truck
Answer:
1. $29,200
2. $9,100
Explanation:
1. Calculation to determine At what amount did China Inn record the delivery truck
Using this formula
Delivery truck amount=Fair value of the delivery truck+Cash paid
Let plug in the formula
Delivery truck amount=$20,500 + $8,700
Delivery truck amount=$29,200
Therefore The amount that China Inn record the delivery truck is $29,200
2. Calculation to determine How much gain or loss did China Inn recognize on the exchange
Using this formula
Gain of Exchange=Fair value of the delivery truck-Book value
Let plug in the formula
Gain of Exchange =$20,500- $11,400
Gain of Exchange=$9,100
Therefore The amount of gain or loss that China Inn recognize on the exchange is $9,100
The daily output at a plant manufacturing desks is approximated by the function f(L,K)=30K7/10L4/5 desks where L is the size of the labor force measured in hundreds of worker-hours and K is the daily capital investment in thousands of dollars. If the plant manager has a daily budget of $14,000 and the average wage of an employee is $11.50 per hour, what combination of worker-hours (to the nearest hundred) and capital expenditures (to the nearest thousand) will yield maximum daily production?
Answer: Hello your function is poorly written below is the properly written function f( L,K ) = 30K^(7/10) L^(4/5)
answer : K = $7000 , L = 600 hours
Explanation:
Given Function = f( L,K ) = 30K^(7/10) L^(4/5)
L = size of labor in workers-hours
K = daily capital investment
Daily budget = $14000
average wage of employee = $11.5
Determine the combinations and capital expenditure that would yield max daily production
we will apply the relation below
K^(7/10) = L^(4/5)
K^(7/10) ≈ L^(8/10) ( where L = 14000 - k )
K^(7/10) = ( 14000 - k )^(8/10 )
when we resolve the above equation
K = $7000
L = 7000 / 11.5 ≈ 608 workers
Who makes it rain every summer
Answer:
Tlaloc
Aztec rain god.
Explanation:
Air that is warmer is able to evaporate more water into the atmosphere. An air mass with more water vapor available to precipitate will naturally create more precipitation. While this is not the only reason, it is the primary reason for greater rainfall in the Triad during the summer months.