Answer:
The correct answer is the option C: Because the effect of compounding allows growth to build upon previous growth.
Explanation:
To begin with, the term of "Compounding" in economics refers to the situation in which an assets' earnings are reinvested to generate more additional earnings over the pass of time and therefore that in an economy when there is a small growth the investors take advantage of the effect that the compounding has over the situation and use it in order to generate more earning in the future and that is why that the the effect of compounding allows growth to build only upon previous growth.
43) An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? A) $5776 B) $9626 C) $11,551 D) $13,476
Answer:
PV= $9,626.49
Explanation:
Giving the following information:
Cash flow= $1,500
Interest rate= 9%
Number of years= 10
First, we will determine the future value, using the following formulas:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {1,500*[(1.09^10) - 1]} / 0.09
FV= $22,789.395
Now, the present value:
PV=FV/(1+i)^n
PV= 22,789.395/(1.09^10)
PV= $9,626.49
A rich aunt has promised you $ 5 comma 000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3 % larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 6 %, what is her promise worth today?
Answer:
PV= $45,642.73
Explanation:
Giving the following information:
Cash flow= 5,000
Number of years= 20
Interest rate= 6%
Growth rate= 3%
First, we need to calculate the future value of the aunts' generosity. We will incorporate the growth rate to the interest rate.
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.09^20) - 1]} / 0.09
FV= $255,800.60
Now, the present value:
PV= FV/(1+i)^n
PV= 255,800.6/1.09^20
PV= $45,642.73
Ferkil Corporation manufacturers a single product that has a selling price of $100 per unit. Fixed expenses total $225,000 per year, and the company must sell 5,000 units to break even. If the company has a target profit of $67,500, sales in units must be:
Answer:
Break-even point in units= 6,500 units
Explanation:
Giving the following information:
Selling price per unit= $100
Fixed expenses total $225,000 per year
Break-even point= 5,000
Desired profit= $67,500
First, we need to calculate the contribution margin per unit:
Break-even point in units= fixed costs/ contribution margin per unit
5,000= 225,000 / contribution margin per unit
contribution margin per unit= 225,000/5,000
contribution margin per unit= $45
Now, we can determine the number of units to be sold:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (225,000 + 67,500) / 45
Break-even point in units= 6,500 units
The information presented here represents selected data from the December 31, 2016, balance sheets and income statements for the year then ended for three firms:
Firm A Firm B Firm C
Total assets, 12/31/16 $417,000 $536,000 $316,000
Total liabilities, 12/31/16 216,000 144,000 _____
Paid-in capital, 12/31/16 75,000 _____ 37,000
Retained earnings, 12/31/16 _____ 307,000 _____
Net income for 2016 _____ 85,000 117,000
Dividends declared and paid during 2016 44,000 9,000 66,000
Retained earnings, 1/1/16 76,000 _____ 44,000
Required:
Calculate the missing amounts for each firm.
Answer:
Firm A Firm B Firm C
Total assets, 12/31/16 $417,000 $536,000 $316,000
Total liabilities, 12/31/16 216,000 144,000 $184,000
Paid-in capital, 12/31/16 75,000 $85,000 37,000
Retained earnings, 12/31/16 $126,000 307,000 $95,000
Net income for 2016 $94,000 85,000 117,000
Dividends declared and 44,000 9,000 66,000
paid during 2016
Retained earnings, 1/1/16 76,000 $231,000 44,000
Explanation:
Firm A Firm B Firm C
Total assets, 12/31/16 $417,000 $536,000 $316,000
Total liabilities, 12/31/16 216,000 144,000 _____
Paid-in capital, 12/31/16 75,000 _____ 37,000
Retained earnings, 12/31/16 _____ 307,000 _____
Net income for 2016 _____ 85,000 117,000
Dividends declared and 44,000 9,000 66,000
paid during 2016
Retained earnings, 1/1/16 76,000 _____ 44,000
we can use the following two basic formulas to determine the missing amounts:
ending balance retained earnings = beginning balance + net income - dividends paid
paid in capital = assets - liabilities - retained earnings
firm A:
417,000 - 216,000 - 75,000 = 126,000
126,000 + 44,000 - 76,000 = 94,000
firm B:
536,000 - 144,000 - 307,000 = 85,000
307,000 - 85,000 + 9,000 = 231,000
firm C:
44,000 + 117,000 - 66,000 = 95,000
316,000 - 37,000 - 95,000 = 184,000
A customer buys 100 shares of ABC at $30 as the initial transaction in a new margin account. Subsequently, ABC rises to $40 per share in the market. What is the account's equity after the change in market value
Answer:
Account's Equity:
Investment in ABC = $4,000 ($40 x 100)
This is made up of initial investment of $3,000 and Unrealized Gain of $1,000 ($10 x 100) for the appreciation in market value.
Explanation:
The account's equity is the share in ownership rights of the customer in the margin account. According to investopedia.com, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products. The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."
Identify the account used by businesses to record the transfer of assets from a business to its stockholders: Multiple Choice The Common stock account. An expense account. A liability account. A revenue account. The Dividends account.
Answer:
Common stock
Explanation:
The common stock has the credit balance which is shown in the liabilities side of the balance sheet
While transferring the assets from business to it stockholders we used the common stock account as it includes the capital of the company, preferred stock, common stock, etc
Therefore the first option is correct
Turner Inc. produces two products P1 and P2. The company has provided you with the following information. Assume that the current sales volume of P1 and P2 reflects the long run sales mix of the firm.
P1 P2
Selling price per unit $30 $60
Variable cost per unit $10 $30
Numberof units sold 9,000 6,000
Total fixed costs $240,000
Select ALL statements that are true. All numbers in the answer choices are rounded off to 2 decimals. Breakeven volume in units is rounded off to the next higher integer.
A. 40% of Turner's revenue comes from P2
B. The operating leverage for Turner now is 0.47
C. Turner makes a contribution of $0. 57 per dollar of revenue, on the average.
D. Turner will breakeven when it reaches a revenue of $420,000.
E. The breakeven volume for Turner is 9,334 units
Answer:
B. The operating leverage for Turner now is 0.47 ⇒ TRUE
operating leverage = fixed costs / total costs = $240,000 / $510,000 = 0.47
C. Turner makes a contribution of $0. 57 per dollar of revenue, on the average. ⇒ TRUE
total contribution margin = ($20 x 9,000) + ($30 x 6,000) = $180,000 + $180,000 = $360,000
total revenue = $630,000
contribution margin per $ of revenue = $360,000 / $630,000 = $0.57
D. Turner will break even when it reaches a revenue of $420,000. ⇒ TRUE
break even point in $ = (6,000 x $30) + (4,000 x $60) = $180,000 + $240,000 = $420,000
Explanation:
A. 40% of Turner's revenue comes from P2 ⇒ FALSE
total revenue = $270,000 + $360,000 = $630,000
revenue from P2 = $360,000, which represents 57.14% of total revenue
E. The breakeven volume for Turner is 9,334 units ⇒ FALSE
in order to calculate break even point, we can prepare a bundle of products = 3P1 + 2P2
contribution margin per bundle = $120
break even point = $240,000 / $120 = 2,000 bundles
6,000 P1 and 4,000 P2
At Mattel, a marketing information system stores data on regional sales activities, promotional costs, and international inventory levels. These data are examples of external sources.
Answer:
It is false.
Explanation:
At Mattel, a marketing information system stores data on regional sales activities, promotional costs, and international inventory levels. These data are not examples of external sources but are internal sources.
Internal sources of market information are informations that are gotten from within the company such as regional sales activities, promotional costs, and international inventory.
However, the external sources of information are informations that are gotten outside of the company such as survey from customers, competitors etc.
Coronado Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $162,702. The company estimated that the machine would have a salvage value of $17,802 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 21,000 hours. Year-end is December 31.
Compute the depreciation expense under the following methods. Each of the following should be considered unrelated
a. Straight Line Method for 2017
b. Sum-of-the-years'-digits for 2018
c. Double-declining-balance for 2018
Answer:
a. Straight Line Method for 2017
depreciation expense per year = ($162,702 - $17,802) / 5 years = $28,980
depreciation expense (August to December 2017) = $28,980 x 5/12 = $12,075
b. Sum-of-the-years'-digits for 2018
depreciation expense year 1 = 5/15 x $144,900 = $60,375 / 12 months = $5,031.25 per month
depreciation expense year 2 = 4/15 x $144,900 = $48,300 / 12 months = $4,025
depreciation expense January 2018 - July 2018 = $5,031.25 x 7 = $35,218.75
depreciation expense August 2018 - December 2012 = $4,025 x 5 = $20,125
depreciation expense 2018 = $35,218.75 + $20,125 = $55,343.75
c. Double-declining-balance for 2018
depreciation expense year 1 = 2 x 1/5 x $162,702 = $65,080.80 / 12 months = $5,423.40 per month
depreciation expense year 2 = 2 x 1/5 x $97,621.20 = $39,048.48 / 12 months = $3,254.04
depreciation expense January 2018 - July 2018 = $5,423.40 x 7 = $37,963.80
depreciation expense August 2018 - December 2012 = $3,254.04 x 5 = $16,270.20
depreciation expense 2018 = $37,963.80 + $16,270.20 = $54,234
Indicate whether the scenarios would result in an increase, a decrease, or no change in the long-run aggregate supply (LRAS) curve for a hypothetical economy. Each label may be used more than once.
The mandatory retirement age is abolished.
The economy's main export is candy.
Candy from this country increases in popularity around the world.
Since candy has become an international sensation, factories double the number of candy-making machines.
The top candy companies choose to relocate their means of production to other countries around the world.
Answer:
The mandatory retirement age is abolished.
This will result in an Increase in the long-run aggregate supply (LRAS) curve because it means that companies in the economy now have a larger workforce to choose from. This will reduce the cost of labor and lead to more goods being supplied.The economy's main export is candy. Candy from this country increases in popularity around the world.
No effect on long-run aggregate supply (LRAS) curve because this deals with demand.Since candy has become an international sensation, factories double the number of candy-making machines.
Factories are now producing more candy due to having more candy-making machines. This will result in an Increase in the long-run aggregate supply (LRAS) curve.The top candy companies choose to relocate their means of production to other countries around the world.
The companies are still supplying candy to the world, however they are doing it from other countries. This supply coming from the hypothetical economy will therefore reduce. This will result in a Decrease in the long-run aggregate supply (LRAS) curve.Pauline's Pecan Pies collected the following production information relating to November's baking operations:
Physical Unit Direct Material Conversion Cost
Beginning work in process. 209,000
Ending work in process 159,000 65% 80%
Units started during the month 10.25000
Requirements:
Complete the first two steps in the process costing procedure:
a. Summarize the flow of physical units.
b. Compute output in terms of equivalent units.
Answer:
Pecan Pies
Pauline
a. Summary of the flow of physical units:
Beginning Work in process = 209,000
Started during month = 1,025,000
less ending work in process 159,000
Units completed in month = 1,075,000
b. Computation of output in terms of equivalent units:
Units completed:
Physical Direct Conversion
Unit Material Cost
Determination of equivalent units:
less ending work in process 159,000 103,350 (65%) 127,200 (80%)
Units produced 1,075,000 1,075,000 (100%) 1,075,000 (100%)
Explanation:
Data:
Physical Direct Conversion
Unit Material Cost
Beginning work in process 209,000
Ending work in process 159,000 65% 80%
Units started during the month 1,025,000
Total units in production 1,234,000 103,350 127,200
Determination of equivalent units:
less ending work in process 159,000 103,350 127,200
Units produced 1,075,000 1,075,000 1,075,000
a) The equivalent unit is the product of the class of unit in production multiplied by the percentage of completion. This forms the basis for allocating cost between a product's costs and the ending work in process. Calculating the equivalent units helps to determine accurate costs of units completed.
How can you ensure that your telephone calls on the job are productive? Name at least six suggestions.
Answer:
Being productive means to be able to get more things done in a period of time and six suggestions to ensure that your telephone calls on the job are productive are:
-Plan an agenda to handle the call to know what you need to discuss.
-Have a clear goal to accomplish with the call to avoid discussing things that are not relevant to this.
-Avoid small talk that can take a lot of time and doesn't allow to get to the point.
-Limit the duration of the call to get people to focus on the important things.
-Summarize the points of the call to make sure that everyone is on the same page.
-End the call when the goal that was set has been accomplished.
Which of the following terms refers to setting specific measurable goals with each employee and then periodically reviewing the progress made?a) behaviorally anchored rating scale.b) management by objective.c) narrative form technique.d) forced distribution.
Answer:
b) management by objective.
Explanation:
Management by objectives can be defined as an organizational management model whose focus is to improve the performance of the organization as a whole, aligning each company's action plan to achieve previously defined objectives and goals.
This is an information system that allows the organization to compare performance and achievements with objectives, which helps improve management and correct failures.
In this management style, employees are encouraged and motivated to be more committed to the organization, as clearly setting goals and objectives motivates employee participation and contributes to a feeling of inclusion, in addition to improving communication in the organization, which is a essential tool for achieving goals.
When Mayo Clinic conducted its analysis during the 1980s, what two segments of the general environment did it initially focus on?
a. Demographic and economic
b. Sociocultural and demographic
c. Economic and legal
d. Legal and technologicel
e. Technological and sociocultural
Answer:
a. Demographic and Economic .
Explanation:
the analysis looked at the age, gender and occupation of people studied. this is a demographic segment
it also examined the income distribution of those studied. this is an economic segment.
Strategic business units that have a relatively low market share but have the potential to grow are best categorized under _____ in the Boston Consulting Group (BCG) growth-share matrix.
Answer:
The answer is question marks
Explanation:
Boston Consulting Group (BCG) growth-share matrix are grouped into four:
Star
Question mark
Cash cows
Dogs.
Question mark, which is of interest to us in this question requires much closer consideration. They are growing rapidly and as a result consume large amounts of money.They have low market shares but have potential to gain market share and become stars and eventually cash cows when market growth slows At that stage(question marks), they do not generate much cash.
They are a starting point for most businesses.
One of the fastest way to acquire knowledge is to hire individuals or purchase entire companies that have valued knowledge.
A. True
B. False
Answer:
True
Explanation:
Knowledge is something that cannot just be acquired within a day. It requires lots of reading, studying different books, rigorous amount of trainings and carrying out various research to learn something new. All this takes some period of time, maybe months or years because there is a need to perfectly master the field of study.
Therefore one of the fastest ways to acquire knowledge at a fast rate is to hire an individual who is an expert in that field or purchase an entire company that has already gained the knowledge because trying to achieve that on your own is time consuming.
This is an added advantage to the organisation as it helps to increase its growth rate and face any form of competition in the market.
Hence the statement above is true.
For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:
Item Classification
a. Research and development costs _____
b. Depreciation on sewing machines _____
c. Fabric used during production _____
d. Depreciation on office equipment _____
e. Advertising expenses _____
f. Repairs and maintenance costs for sewing machines _____
g. Salary of production quality control supervisor _____
h. Utility costs for office building _____
i. Sales commissions _____
j. Salaries of distribution center personnel _____
k. Wages of sewing machine operators _____
l. Factory janitorial supplies _____
m. Chief financial officer's salary _____
n. Travel costs of media relations employees _____
o. Factory supervisors' salaries _____
p. Oil used to lubricate sewing machines _____
q. Property taxes on factory building and equipment _____
Answer:
a. Research and development costs: Period cost because it is an administrative expenses.
b. Depreciation on sewing machines: Product cost because it is a manufacturing overhead.
c. Fabric used during production: Product cost because it is a direct raw material.
d. Depreciation on office equipment Period cost because it is an administrative expense.
e. Advertising expenses: Period cost because it is a sales expenses.
f. Repairs and maintenance costs for sewing machines: Product cost because it is a manufacturing overhead.
g. Salary of production quality control supervisor: Product cost because it is a manufacturing overhead.
h. Utility costs for office building: Period cost because it is an administrative expenses.
i. Sales commissions: Period cost because it is a sales expenses.
j. Salaries of distribution center personnel: Period cost because it is a sales expenses.
k. Wages of sewing machine operators: Product cost because it is a direct labor.
l. Factory janitorial supplies: Product cost because it is a manufacturing overhead.
m. Chief financial officer's salary: Period cost because it is an administrative expenses.
n. Travel costs of media relations employees: Period cost because it is a sales expenses.
o. Factory supervisors' salaries: Product cost because it is a manufacturing overhead.
p. Oil used to lubricate sewing machines: Product cost because it is a manufacturing overhead.
q. Property taxes on factory building and equipment: Product cost because it is a manufacturing overhead.
Explanation:
In Business management, cost can be defined as the amount of money paid in acquiring goods and services as well as the amount spent by the manufacturer in order to produce the goods or provide the service to the consumers. In production, these cost incurred by the manufacturer can be classified into two (2) categories and these are;
1. Product cost: is defined as all the cost incurred during the production or manufacturing of a company's product. Examples of these costs are direct labor cost, direct materials cost, and manufacturing overhead cost.
2. Period cost: is defined as all indirect costs associated with the smooth operation of a business. Examples of these costs are utility bills, rent, office supplies and depreciation, advertising costs etc.
Issues of growth are generally considered in: Multiple Choice neither the short-run nor the long-run frameworks. the short-run framework. the long-run framework. both the short-run and the long-run frameworks.
Answer:
the long-run framework.
Explanation:
In Economics, Growth can be defined as an increase or rise in the level of output and production of goods and services over a specific period of time by a business entity.
Issues of growth are generally considered by economists in the long-run framework because growth itself is a long-run phenomenon in economics.
A long-run growth refers to the continuous and sustained increase in the level of output of goods and services or quantity of production that a business is able to achieve.
Hence, all of the four factors of production affects the level of growth that is being experienced by an individual or organization. These factors are;
1. Capital.
2. Labor.
3. Land.
4. Entrepreneur.
In a nutshell, business owners and economist usually consider the growth of a business as a long-run phenomenon rather than as a short-run phenomenon.
Answer:
the long-run framework.
Explanation:
Cellar Wines has a debt-equity ratio of 0.54, sales of $728,700, net income of $94,900, and total debt of $382,000. What is the return on equity
Answer:
13.42%
Explanation:
Here is an solution to the question below.
Debt equity ratio = 0.54
Sales = $728700
Net income = $94900
Total debt = $382000
Total equity ratio = net income / (total debt/ debt equity ratio)
total debt/ debt equity ratio = 382000/0.54 = 707,407.4
Total equity ratio = 94900/707,407.4
= 0.1342 x 100
= 13.42%
This is the return on equity.
Tom is talking to his friend Bob, who has an interest in Freedom, LLC, about purchasing his LLC interest. Bob's outside basis in Freedom, LLC, is $13,500. This includes his $3,200 one-fourth share of the LLC's debt. Bob's 704(b) capital account is $20,500. If Tom bought Bob's LLC interest for $24,000, what would Tom's outside basis be in Freedom, LLC
Answer:
Tom's outside bases in freedom = $27,200
Explanation:
To find Tom's outside bases in freedom, use the formula:
Tom's outside bases in freedom = Amount paid for interest + share of LLC’s Debt
Where,
Amount paid for interest = $24,000
Share of LLC's debt = $3,200
Therefore, Tom's outside bases in freedom would be:
Tom's outside bases in freedom = Amount paid for interest + share of LLC’s Debt
= $24,000 + $3,200
= $27,200
Tom's outside bases in freedom is $27,200
Consider the case of cell phone service. In England, there are 20 providers of cell phone service. On the other hand, in Cambodia, cell phone service is largely regulated by the government with only one firm as the sole provider of this service. Under these circumstances, it is expected that Choose one: A. England will have higher growth potential than Cambodia. B. England and Cambodia will have similar growth potential. C. England will have lower growth potential than Cambodia.
Suppose the real risk-free rate is 2.50% and the future rate of inflation is expected to be constant at 4.10%. What rate of return would you expect on a 5-year Treasury security, assuming the pure expectations theory is valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
Answer: 6.6%
Explanation:
The Pure Expectations Theory believes that the future long term rate is a reflection of future short term rates.
In terms of a 5 Treasury Security then, the rate of return to be expected is the risk free rate adjusted for inflation.
The Treasury Security has no risk but for inflation risk hence this is all that should be catered for.
Rate of Return on 5 year Treasury Security = Real Risk Free Rate + Inflation Rate
= 2.5% + 4.1%
= 6.6%
The real rate is 4.1 percent and the inflation rate is 5.7 percent. What rate would you expect to see on a Treasury bill
Answer:
10%
Explanation:
The rate on a treasury bill is usually the nominal rate.
1 + Nominal rate = (1 + real rate ) x (1 + inflation rate)
(1.041) x (1.057) = 1.10
1.10 - 1 = 0.10 = 10%
Nominal rate = 10%
I hope my answer helps you
A share of BAC common stock has just paid a dividend of $1.00. The market return is 12% and the beta is 1.5. The three month T-bill rate is 4%. The expected long-run growth rate for this stock is 8%. What is the required return for the stock? What is the stock price?
Answer:
Required rate of return= 16%
Stock price= $13.50
Explanation:
A share of BAC common stock just made a dividend payment of $1
Market return is 12%
Beta is 1.5
Risk-free rate is 4%
Growth rate is 8%
The required rate of return for the stock can be calculated as follows
Required rate of return= Risk-free rate+beta×(market rate-risk-free rate)
= 4%+1.5(12%-4%)
= 4%+1.5×8%
= 4%+12
= 16%
The stock price can be calculated as follows
Stock price= dividend for the year/(rate of return-growth rate)
= (1×1.08)/(16/100-8/100)
= 1.08/0.16-0.08
= 1.08/0.08
= $13.50
Hence the required rate of return and the stock price is 16% and $13.50 respectively.
Bobby the Barber is thinking about advertising in the local newspaper since he is idle 45 percent of the time. Currently, customers arrive on average every 40 minutes. What does the arrival rate need to be for Bobby to be busy 85 percent of the time? (Round your intermediate calculations to 3 decimal places and final answer to 2 decimal places.)
Answer: 2.32 people per hour
Explanation:
From the question, we are informed that Bobby the Barber is thinking about advertising in the local newspaper since he is idle 45 percent of the time and that currently, customers arrive on average every 40 minutes.
For Bobby to be busy 85 percent of the time, the arrival time needs to be 2.32 people per hour.
Check the attached file for the solution.
A company owes employee salaries of $16,000 at the end of the year. These salaries will be paid in the following year. What adjusting entry, if any, does the company need to record at the end of the year
Answer:
Wages and Salaries $16,000 (debit)
Wages and Salaries Payable $16,000 (credit)
Explanation:
At the end of the year, the Company has to recognize an Expense : Wages and Salaries and a Liability : Wages and Salaries Payable.
You own a house that costs $300,000 and you are considering leveraging your home. How would three houses that each have $200,000 in mortgage debt make more money than one house that is fully paid
Answer:
You will be able to get more money if you have 3 houses and owe $200,000 on each house simply because you can use the houses to earn extra income.
Imagine two situations:
Situation 1: You own one $300,000 house and earn $100,000 of ordinary income. The bank will lend you money solely based on your income.
Situation 2: You own 3 houses and obviously since you only use one, you can rent the other two. Lets suppose that you can rent the two houses at $2,500 each, and after paying all expenses and taxes, you have $2,000 left per month per house. That means that your total income will increase by $48,000 per year and we can add that to your normal salary of $100,000. In order for this situation to be more favorable, your current debt payments must be less than the additional revenue generated by the two houses (less than $48,000 per year). If your final balance is favorable = additional income ($48,000) ≥ current debt payments, that means that you will have more disposable income in order to pay back any additional loans.
Another reason why a bank might favor situation 2, is that in case something goes wrong, e.g. you get fired, it is always easier to sell one or even both extra houses in order to repay your loan.
7. A fast-food chain plans to expand by opening several new restaurants. The chain operates two types of
restaurants, drive-through and full-service. A drive-through restaurant costs RM 100.000 to construct,
requires 5 employees, and has an expected annual revenue of RM 200.000. A full service restaurant
costs RM 150.000 to construct, requires 15 employees, and has an expected annual revenue of RM
500,000. The chain has RM 2,400,000 in capital available for expansion. Labor contracts require that
they hire no more than 210 employees, and licensing restrictions require that they open no more than
20 new restaurants.
(a) How many restaurants of each type should the chain open in order to maximize the expected
revenue? [1 point)
≤
Explanation:
Drive through Full Service
Annual revenue 200,000 500,000
Cost 100,000 150,000
Income 100,000 350,000
Employee 5 15
Income / employee 20,000 23,333.33
Using simultaneous equation ,
Let X represent the drive through service ,and Y represent the full service restaurant
Budget = 100,000x + 150,000y ≤ 2,400,000 (equation 1)
Employer = 5x + 15y ≤ 210 (equation 2)
(Divide equation 1 by 10 ,000)
10x+ 15y ≤ 240 (equation 3)
Using elimination method, multiply equation 2 by -2
10x +15y ≤240
-10x - 30y ≤-420
-15y ≤ -180
y≤ -180/-15
y = 12
substitute y = 12 in equation 3
10x + 15y≤240
10x +180 ≤240
10x≤240-180
10x≤60
x≤6
12 1,800,000 180
6 600,000 30
6 drive through services and 12 full services should be opened.
6 Drive through 12 full service 20
Cost 600,000 1,800,000 2,400,000
Employees 30 180
Net income 600,000 4,200,000
The Wet Dog Surf Company borrows $22,000 for 5 months and will pay $825.00 interest . Calculate Wet Dog's Annual Percentage Interest Rate (APR) (rounded to two decimal places).
Answer:
The answer is 9%
Explanation:
Solution
Given that:
Wet Dog Surf Company borrows= $22,000 for 5 months
Interest =$825.000
Now we have to find Wet Dog's Annual Percentage Interest Rate (APR)
Thus
The interest rate for 5 months is given by:
$825.00/$22,000
=0.0375% or 3.75%
So, APR becomes:
3.75% * 12/5
= 45/5
= 9%
Therefore the Annual Percentage Interest Rate (APR) for We Dog's is 9%
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following?a. The price levelb. The inflation ratec. The quantity of physical capitald. The size of the labor force
Answer:
a. The price levelb. The inflation rate
Explanation:
If the Fed doubles the growth rate of the quantity of money in the economy, the supply of money in the economy would rise. The rise in money supply would increase the price level and inflation level.
Inflation is a persistent rise in the general price levels
I hope my answer helps you
The quantity theory of money provides an easy answer to this question. The rate of inflation will fluctuate in the long run as money growth accelerates.
So, Option B is correct.
The other Options are incorrect as:
Option A is incorrect as The average of current prices over the complete spectrum of goods and services produced in an economy is referred to as the price level.
Option C is incorrect as Physical capital refers to an organization's owned and used assets, such as buildings, machinery, and cars.
Option D is incorrect as The labor force is made up of the number of people who are employed and those who are jobless.
Thus increase in money growth will change the inflation rate.
For more information about the inflation rate refer to the link:
https://brainly.com/question/3473705