Plan 1 has an earnings per share (EPS) of $0.54, Plan 2 has an EPS of $0.92, and Plan 3 has an EPS of $0.90.
To calculate the earnings per share (EPS) for each financing plan, we need to consider the interest expense for the bonds and the preferred stock dividend. Let's calculate the EPS for each plan:Plan 1:Interest expense on bonds = $3,000,000 * 10% = $300,000
Taxable income = Earnings before interest and taxes - Interest expense = $750,000 - $300,000 = $450,000
Taxes = Taxable income * Tax rate = $450,000 * 40% = $180,000
Net income available to common shareholders = Taxable income - Taxes = $450,000 - $180,000 = $270,000
Number of common shares = $5,000,000 / $10 = 500,000
EPS = Net income available to common shareholders / Number of common shares = $270,000 / 500,000 = $0.54 per share
Plan 2:Preferred stock dividend = $2,000,000 * 1% = $20,000
Net income available to common shareholders = Earnings before interest and taxes - Preferred stock dividend - Taxes = $750,000 - $20,000 - ($750,000 * 40%) = $460,000
EPS = Net income available to common shareholders / Number of common shares = $460,000 / 500,000 = $0.92 per share
Plan 3:Net income available to common shareholders = Earnings before interest and taxes - Taxes = $750,000 - ($750,000 * 40%) = $450,000
EPS = Net income available to common shareholders / Number of common shares = $450,000 / 500,000 = $0.90 per share . Therefore, the earnings per share for Plan 1 is $0.54, for Plan 2 is $0.92, and for Plan 3 is $0.90.
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Oriole Company reports the following information (in millions) during a recent year: net sales, $10,094.7; net earnings, $212.5; total assets, ending, $4,640.0; and total assets, beginning, $4,215.0. (a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin
The return on assets (ROA) is 4.8%, the asset turnover is 2.28, and the profit margin is 2.1%.
To calculate the return on assets (ROA), divide the net earnings by the average total assets. The average total assets can be found by adding the beginning and ending total assets and dividing by 2.
1. ROA = Net Earnings / Average Total Assets
ROA = $212.5 / (($4,215.0 + $4,640.0) / 2)
Next, to calculate the asset turnover, divide the net sales by the average total assets.
2. Asset Turnover = Net Sales / Average Total Assets
Asset Turnover = $10,094.7 / (($4,215.0 + $4,640.0) / 2)
Lastly, to calculate the profit margin, divide the net earnings by the net sales.
3. Profit Margin = Net Earnings / Net Sales
Profit Margin = $212.5 / $10,094.7
Now, let's plug in the values and calculate:
1. ROA = $212.5 / (($4,215.0 + $4,640.0) / 2)
ROA = $212.5 / $4,427.5
ROA = 0.048 or 4.8%
2. Asset Turnover = $10,094.7 / (($4,215.0 + $4,640.0) / 2)
Asset Turnover = $10,094.7 / $4,427.5
Asset Turnover = 2.28
3. Profit Margin = $212.5 / $10,094.7
Profit Margin = 0.021 or 2.1%
Therefore, The asset turnover is 2.28, the profit margin is 2.1%, and the return on assets (ROA) is 4.8%.
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Marvyn believes he can succeed in the real estate business because he has control over how much he sells. Marvyn can be described as having a(n) _____ locus of control.
It's important to note that locus of control is a continuum, and individuals may exhibit a combination of internal and external tendencies in different areas of their lives.
Marvyn can be described as having an internal locus of control. The concept of locus of control refers to an individual's belief about the extent to which they have control over events and outcomes in their lives.
People with an internal locus of control believe that their actions and decisions can influence the results they achieve. They tend to attribute their successes or failures to their own abilities, efforts, and choices. In this case, Marvyn believes that his success in the real estate business is determined by his own actions and capabilities, indicating an internal locus of control.
On the other hand, individuals with an external locus of control believe that external factors, such as luck, fate, or powerful others, have a significant influence on their outcomes. They may perceive themselves as being at the mercy of circumstances beyond their control.
It's important to note that locus of control is a continuum, and individuals may exhibit a combination of internal and external tendencies in different areas of their lives.
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The value of a levered firm is higher than the value of an unlevered firm in the presence of corporate taxes owing to the tax shield benefit of
The value of a levered firm is higher than the value of an unlevered firm in the presence of corporate taxes owing to the tax shield benefit of interest payments.
When a firm has debt (leverage), it is able to deduct interest expenses from its taxable income, reducing its tax liability. This tax shield benefit increases the firm's cash flows, resulting in a higher firm value.
This reduction in taxes is known as the tax shield benefit of debt. The tax shield effectively increases the cash flows available to the levered firm, as it can retain more earnings or distribute higher dividends to shareholders. This increased cash flow translates into higher value for the company.
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which of these economic indicators is most likely to be high during a recession? responses unemployment rate unemployment rate retail sales retail sales per capita personal income per capita personal income gross domestic product
The economic indicator most likely to be high during a recession is the unemployment rate. A recession is characterized by a decline in economic activity, which often leads to job losses and reduced hiring by businesses.
During a recession, the unemployment rate is likely to be high. A recession is characterized by a decline in economic activity, which often leads to job losses and reduced hiring by businesses. As a result, more individuals become unemployed or struggle to find employment, leading to an increase in the unemployment rate. Other economic indicators such as retail sales, per capita personal income, and gross domestic product (GDP) tend to decline during a recession, reflecting the overall contraction in economic activity.
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inflation is always a monetary phenomenon in the long-run"". is this statement true or false? explain using the quantity theory of money.
The statement is true. The Quantity Theory of Money, a fundamental concept in monetary economics, supports the idea that inflation is primarily a monetary phenomenon in the long run.
According to the Quantity Theory of Money, there is a direct relationship between the quantity of money in circulation and the general price level in an economy. The theory can be expressed with the equation of exchange: MV = PQ, where M represents the money supply, V is the velocity of money (how quickly money circulates in the economy), P is the price level, and Q is the quantity of goods and services produced.In the long run, the quantity of goods and services produced (Q) is assumed to be determined by the economy's productive capacity. Therefore, any increase in the money supply (M) without a corresponding increase in production will lead to an increase in the price level (P).In other words, if the money supply grows faster than the economy's capacity to produce goods and services, the excess money will chase the limited quantity of goods, causing inflation. This is because more money is available to bid for the same amount of goods, resulting in higher prices.However, it's important to note that in the short run, other factors like changes in aggregate demand, supply shocks, and market expectations can also impact inflation. Nevertheless, in the long run, the Quantity Theory of Money suggests that sustained inflation is primarily driven by changes in the money supply.
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Dede takes a summer job painting houses. during the summer, she earns an after-tax income of $ and she spends $ on living expenses. what was dede's saving during the summer?
Dede's savings during the summer can be calculated by subtracting her living expenses from her after-tax income.
How can we calculate Dede's savings?To find Dede's savings, we need to subtract her living expenses from her after-tax income. Let's denote Dede's after-tax income as $I$ and her living expenses as $E$. Dede's savings ($S$) can be calculated using the following equation:
\[S = I - E\]
By substituting the given values into the equation, we can determine Dede's savings. It is important to note that the provided information does not include the values of Dede's after-tax income and living expenses. To obtain an actual numerical answer, those values need to be provided.
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Relative to the free-trade outcome, the imposition of the tariff reduces total surplus. What is the dead weight loss resulting from domestic consumers being priced out because of the tariff?
The deadweight loss resulting from domestic consumers being priced out because of the tariff reduces total surplus.
What is the deadweight loss resulting from domestic consumers being priced out due to the tariff?The deadweight loss resulting from domestic consumers being priced out because of the tariff is the economic loss that occurs due to the inefficiency created by the tariff.
When a tariff is imposed, it raises the price of imported goods, making them more expensive for domestic consumers.
As a result, some consumers may choose not to purchase the goods or switch to domestic alternatives.
This reduction in consumption leads to a loss of consumer surplus, which represents the difference between what consumers are willing to pay for a good and what they actually pay.
The deadweight loss represents the loss of overall economic welfare caused by the tariff, as it reduces total surplus, which includes both consumer and producer surplus.
It reflects the inefficiency created by the distortion of market forces caused by the tariff and the resulting decrease in economic activity and welfare.
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If a company made a bank deposit on July 31 that did not appear on the bank statement dated July 31, in preparing the Jule 31 bank reconciliation, the company should:
In preparing the July 31 bank reconciliation, the company should take the following steps:
1. Start with the bank statement balance: Begin by recording the ending balance shown on the bank statement dated July 31.
2. Adjust for deposits in transit: If the company made a bank deposit on July 31 that did not appear on the bank statement, add this amount to the bank statement balance. This adjustment accounts for the fact that the deposit is still in transit and has not yet been recorded by the bank.
3. Adjust for outstanding checks: Identify any outstanding checks, which are checks that the company has issued but have not yet been presented for payment by the recipients. Deduct the total amount of outstanding checks from the adjusted bank statement balance.
4. Compare to the company's records: Compare the adjusted bank statement balance to the company's records of its cash balance. This is typically obtained from the general ledger.
5. Make any necessary adjustments: If there are any differences between the adjusted bank statement balance and the company's cash balance, investigate and identify the reasons for the discrepancies. Adjustments may be required for items such as bank errors, service charges, or unrecorded transactions.
6. Reconcile the balances: Once all adjustments have been made, the final adjusted bank statement balance should match the company's cash balance.
By following these steps, the company can ensure an accurate bank reconciliation and identify any discrepancies that need to be resolved.
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The computer-linked price quotation and trade execution system is called?
The computer-linked price quotation and trade execution system is commonly known as an electronic trading platform (ETP). [ETP] This platform facilitates the real-time display of prices, enables traders to place orders, and executes trades electronically.
An electronic trading platform (ETP) is a computer-based system that connects buyers and sellers in financial markets. It provides traders with access to a wide range of financial instruments, such as stocks, bonds, commodities, and derivatives. The ETP displays real-time price quotations for these instruments, allowing traders to monitor market movements and make informed decisions.
Traders can enter buy or sell orders directly into the system, which matches their orders with corresponding counterparties. Once a trade is executed, the ETP automatically updates the trading records and notifies the involved parties. This system streamlines the trading process, improves efficiency, and reduces the need for manual intervention. ETPs are widely used in various financial markets, including stock exchanges, futures exchanges, and foreign exchange markets, enabling market participants to access liquidity and execute trades swiftly.
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A characteristic of a sole proprietorship is that __________. Multiple Choice it can be created by multiple owners it can be publicly held it is the most expensive business organization to create it is the hardest business organization to create it is not possible to transfer ownership of the organization
Among the options provided, the characteristic of a sole proprietorship is that it is not possible to transfer ownership of the organization.
It can be created by multiple owners: This option is incorrect because a sole proprietorship, by definition, is owned and operated by a single individual. It cannot have multiple owners.
It can be publicly held: This option is incorrect because a sole proprietorship is not publicly held. Publicly held refers to companies whose ownership is distributed among many shareholders and whose shares are traded on a public stock exchange. In a sole proprietorship, the owner maintains full control and ownership of the business.
It is the most expensive business organization to create: This option is incorrect. Compared to other types of business organizations, such as corporations, sole proprietorships are generally the least expensive to create. They have fewer legal requirements and formalities, which reduces the associated costs.
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A(n) ____ system is the methods and procedures for collecting, classifying, summarizing, and reporting a business's financial and operating information. a.fiduciary b.accounting c.auditing d.operations
The correct answer is b. accounting. Accounting is the system that involves collecting, classifying, summarizing, and reporting a business's financial and operating information.
It helps in tracking the financial transactions of a business and provides essential information for decision-making and financial analysis. Accounting plays a crucial role in ensuring the accuracy and reliability of financial information.
It involves recording financial transactions, preparing financial statements, and analyzing financial data to provide insights into the business's financial health. Accounting also helps in meeting legal and regulatory requirements, such as tax reporting and compliance.
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ou invested $40,000 on stock abc and earned 10% last year. you also invested $20,000 on a bond index and earned 5% return last year. you also invested $30,000 on reit and earned 8.5% last year. assuming tax rate and expense ratios are both zero. what is your weighted average return on your total investment last year?
To calculate the weighted average return on your total investment, we need to consider the returns from each investment and their respective weights.
In this case, you earned a 10% return on a $40,000 investment in stock ABC, a 5% return on a $20,000 investment in a bond index, and an 8.5% return on a $30,000 investment in a REIT. By calculating the weighted average return, we can determine the overall performance of your total investment. The weighted average return is calculated by multiplying the returns from each investment by their respective weights and then summing them up. The weight represents the proportion of the total investment amount allocated to each investment. In this scenario, the total investment is $90,000, which is the sum of $40,000, $20,000, and $30,000.
Let's calculate the weighted average return:
Investment in Stock ABC:
Return: $40,000 * 10% = $4,000
Investment in Bond Index:
Return: $20,000 * 5% = $1,000
Investment in REIT:
Return: $30,000 * 8.5% = $2,550
Total investment: $40,000 + $20,000 + $30,000 = $90,000
Weighted Average Return:
(($4,000 + $1,000 + $2,550) / $90,000) * 100% = 7.17%
Therefore, the weighted average return on your total investment last year is approximately 7.17%.
The weighted average return provides a comprehensive measure of the overall performance of your investment portfolio, taking into account the returns from each investment and their respective weights. By considering the proportional contribution of each investment to the total portfolio, the weighted average return reflects the effectiveness of your investment decisions. It allows you to evaluate the performance of your portfolio as a whole and assess its relative success compared to other investment options.
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Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $31,590 and variable expenses of $9,477. Product Y45E had sales of $19,550 and variable expenses of $8,798. The fixed expenses of the entire company were $18,000. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:
Multiple Choice
would decrease.
would increase.
could increase or decrease.
would not change
The overall break-even point for the entire company would decrease if the sales mix were to shift toward Product C90B with total dollar sales remaining constant.
This is because Product C90B has a higher contribution margin (sales - variable expenses) compared to Product Y45E. By increasing the proportion of sales from Product C90B, which has higher profitability, the company can cover its fixed expenses more efficiently, resulting in a lower overall break-even point.
When the sales mix shifts towards Product C90B, which has a higher contribution margin, it means that for every dollar of sales from Product C90B, there is a larger contribution to cover the fixed expenses compared to Product Y45E. This is because the contribution margin represents the amount of revenue that contributes towards covering fixed expenses after subtracting variable expenses.
By increasing the proportion of sales from Product C90B while keeping total dollar sales constant, the company can generate a higher overall contribution margin. This increased contribution margin helps offset the fixed expenses more effectively, leading to a lower overall break-even point. Therefore, the break-even point for the entire company would decrease in this scenario.
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Brandon is looking to buy a new car for his luxury pizza delivery business, and he wants to get the best value. He conducts the following value analysis. Which car should Brandon choose? Audi Mercedes $175,000 $500 $98,000 BMW $350,000 $1,000 10 years Purchase Price Annual Fuel Cost Lifetime Lifecycle Cost (10 years) $200 5 years 2.5 years ? ? ? A) Either Mercedes or Audi B) Either BMW or Mercedes C) Mercedes D) BMW E) Aud
Based on the given analysis, Brandon should choose the Mercedes since it has the lowest purchase price and comparable fuel costs.
According to the provided value analysis, the purchase price, annual fuel costs, and lifetime (10-year) lifecycle costs are the key variables for Brandon's high-end pizza delivery service.
The Mercedes is the least expensive option in terms of the buying price at $98,000, followed by the Audi at $175,000 and the BMW at $350,000.
The Mercedes and Audi have the same annual gasoline costs of $500, whereas the BMW has a higher cost of $1,000.
We require the length of each car's ownership period in order to calculate the lifetime lifecycle cost. The lifespans of the Mercedes are 5 years, the Audi is 2.5 years, and the BMW is not specified.
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According to the SPIN questioning system, _____ are used early in a sales call and provide salespeople with leads to develop the buyer's needs and expectations fully.
According to the SPIN questioning system, "Situation" questions are used early in a sales call to provide salespeople with leads to develop the buyer's needs and expectations fully.
The SPIN questioning system, developed by Neil Rackham, is a method used in consultative selling to uncover customer needs and drive effective sales conversations. The acronym SPIN stands for Situation, Problem, Implication, and Need-payoff, representing different types of questions to be asked during the sales process.
Situation questions aim to gather information about the buyer's current situation, existing conditions, and background. These questions help salespeople understand the context in which the buyer operates and identify potential areas of improvement or need.
By asking Situation questions early in a sales call, salespeople can gather relevant information about the buyer's current circumstances and use it as a foundation to explore further. This enables them to better understand the buyer's needs, challenges, and expectations, allowing for a more personalized and effective sales approach.
Overall, Situation questions serve as a starting point in the SPIN questioning system, providing salespeople with valuable insights to guide the sales conversation and uncover the buyer's needs and expectations fully.
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competitive click-fraud is a computer crime where a competitor or disgruntled employee increases a company’s search advertising costs by repeatedly clicking on the advertiser’s link.
Competitive click-fraud is a computer crime where a competitor or disgruntled employee deliberately increases a company's search advertising costs by repeatedly clicking on the advertiser's link. This fraudulent activity aims to exhaust the advertiser's advertising budget and disrupt their online campaigns.
To prevent and combat competitive click-fraud, companies can take several measures. Firstly, they can employ sophisticated tracking and analytics tools to identify abnormal click patterns and detect potential fraudulent activities. Secondly, they can implement IP blocking techniques to prevent multiple clicks from the same IP address.
Additionally, companies can monitor their advertising campaigns closely and regularly review their ad performance to identify any suspicious click activity. By employing these measures, companies can protect their advertising budgets and ensure that their online campaigns are reaching their intended audience effectively.
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indicate where each of the following income-related items for this company appears on its current year income statement by selecting the appropriate section in the drop down beside each item.
Sales revenue appears in the "Revenue" or "Sales" section, operating expenses are listed in the "Operating Expenses" section, and interest income is recorded in the "Other Income" or "Non-operating Income" section of the income statement.
To indicate where each income-related item appears on a company's income statement, follow these steps:
1. Start by identifying the income-related items mentioned in the question. For example, if the items are sales revenue, operating expenses, and interest income, these are the items we will focus on.
2. The first item, sales revenue, is usually recorded in the "Revenue" or "Sales" section of the income statement. It represents the income generated from selling goods or services.
3. Next, operating expenses are typically listed in the "Operating Expenses" section of the income statement. This includes costs directly related to the company's operations, such as salaries, rent, utilities, and advertising expenses.
4. Lastly, interest income is recorded in the "Other Income" or "Non-operating Income" section of the income statement. This section includes items not directly related to the company's core operations, such as interest earned from investments or loans.
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Sales revenue appears in the "Revenue" or "Sales" section, operating expenses are listed in the "Operating Expenses" section, and interest income is recorded in the "Other Income".
Sales are actions involving the sale of goods or the volume of items sold during a specified time frame. A service that is rendered for a charge is also included in a sale. A "sale" is a time frame in which products are sold for a discounted price.
Sales in broad company operations refer to any exchanges of money or value for the right to possess a good or get a service. Sales, in the context of accounting, refer to the income generated by a corporation via the selling of goods or services.
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what is the most likely reason that a parent-country national who has received proper training not be given an overseas assignment?
The most likely reason that a parent-country national (PCN) who has received proper training not be given an overseas assignment is that the company may prioritize employing local workers in the host country.
What is a Parent Country National (PCN)?A Parent Country National (PCN) is someone who works for a company in a foreign country but comes from the company's home country.
Companies often hire PCNs to work in managerial and technical roles in foreign locations since they already understand the company's culture and values.
As a result, they're usually sent on overseas assignments to the company's locations outside their home country, where they can use their skills and knowledge to aid the organization.
However, the most likely reason that a parent-country national who has received proper training not be given an overseas assignment is that the company may prioritize employing local workers in the host country.
It's sometimes less expensive and more effective to hire a local worker because they already have cultural knowledge and language proficiency.
Therefore, in this scenario, PCNs can't be sent to foreign locations because the organization would instead choose to use local talent.
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Flyer prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. How much is bad debt expense
The bad debt expense can be calculated. In this example, with $10,000 of accounts receivable and an estimated uncollectible percentage of 5%, the bad debt expense is $500.
First, calculate the estimated uncollectible amount by multiplying the accounts receivable by the estimated uncollectible percentage.Therefore, the bad debt expense is $500. This amount represents the portion of accounts receivable that Flyer estimates will not be collected.
In summary, the bad debt expense is calculated by multiplying the accounts receivable by the estimated uncollectible percentage.
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________ are all manufacturing costs that are related to the cost object but cannot be traced to that cost object in an economically feasible way.
Indirect manufacturing costs are all manufacturing costs that are related to the cost object but cannot be traced to that cost object in an economically feasible way.
Indirect manufacturing costs refer to the expenses incurred during the production process that cannot be directly assigned to a specific product or cost object. These costs are typically associated with the overall production facility or the manufacturing process as a whole.
Examples of indirect manufacturing costs include factory utilities, maintenance expenses, supervisor salaries, and depreciation of manufacturing equipment. Unlike direct costs, which can be easily traced to a specific product, indirect manufacturing costs are allocated to various products or cost objects based on predetermined allocation methods, such as the proportion of direct labor or machine hours.
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In the context of codes of ethics, the Johnson & Johnson Credo has guided the company profitably through a number of crises. This is considered the best-known code because it:
Question 6 options:
carefully refrains from allowing whistle-blowing.
allows employees to choose the kind of moral and ethical principles they wish to follow.
focuses on ethnocentrism and moral absolutism.
carefully refrains from overpromising financial rewards.
The statement "allows employees to choose the kind of moral and ethical principles they wish to follow" best describes the reason why the Johnson & Johnson Credo is considered the best-known code in the context of codes of ethics.
The Johnson & Johnson Credo is a well-known and highly regarded code of ethics that has guided the company through various crises.
One of the reasons for its prominence is its emphasis on empowering employees to make ethical decisions based on their own moral and ethical principles.
The Credo does not impose a rigid set of rules but rather encourages employees to act in a responsible and ethical manner, taking into account the interests of customers, employees, and the community.
By allowing employees to choose their own moral and ethical principles, the Johnson & Johnson Credo recognizes the diversity of perspectives and values among individuals.
It promotes a culture of integrity, trust, and personal accountability, enabling employees to make ethical decisions aligned with their own beliefs.
This approach fosters a sense of ownership and commitment to ethical behavior, which has contributed to the company's ability to navigate crises and maintain its profitability.
In summary, the Johnson & Johnson Credo is considered the best-known code because it empowers employees to choose their moral and ethical principles, promoting a culture of integrity and personal accountability within the company.
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which of the following is needed to compute the news vendor's solution? question 3 options: a) the amount of leftover b) the lost sales quantity c) the sales quantity d) the historical demand data
To compute the news vendor's solution, the needed information is option d) the historical demand data .
The news vendor's problem is a classic inventory management problem where a vendor must decide how much inventory to order for a single period to meet uncertain demand. The objective is to balance the trade-off between carrying excess inventory (which incurs holding costs) and facing stockouts (which result in lost sales and potential customer dissatisfaction). To solve this problem, historical demand data is crucial. The vendor needs to analyze the past demand patterns to understand the variability and distribution of demand. By examining historical data, the vendor can estimate the demand distribution parameters, such as mean and standard deviation, which are essential for determining the optimal order quantity.
Using statistical techniques, such as probability distributions and decision models, the vendor can compute the news vendor's solution. This solution aims to maximize the expected profit or minimize the expected cost by finding the order quantity that balances the expected lost sales and holding costs.
While options a) the amount of leftover and b) the lost sales quantity are related to the news vendor's problem, they are outcomes rather than inputs required to compute the solution. The leftover amount is the excess inventory that remains at the end of the period, and lost sales quantity represents the demand that could not be fulfilled due to insufficient inventory. These values are determined based on the chosen order quantity and the actual demand realization. However, historical demand data is the foundation for making an informed decision and computing the optimal order quantity in the news vendor's problem.
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a company charting its profits notices that the relationship between the number of units sold, x, and the profit, p, is linear. if 190 units sold results in $1140 profit and 240 units sold results in $3940 profit, write the profit function for this company.
If the relationship between the number of units sold and the profit, is linear and if 190 units sold results in $1140 profit while 240 units sold results in $3940 profit, the profit function for this company is:
p(x) = 56x - 9500
To write the profit function, we need to determine the equation of the line that represents the relationship between the number of units sold, x, and the profit, p.
We can use the two given data points (190 units sold, $1140 profit) and (240 units sold, $3940 profit) to find the slope and y-intercept of the line.
First, let's find the slope (m) using the formula:
m = (change in y) / (change in x)
m = (3940 - 1140) / (240 - 190)
m = 2800 / 50
m = 56
Now, let's find the y-intercept (b) using the slope-intercept form of a line (y = mx + b). We can use one of the given data points:
1140 = 56(190) + b
1140 = 10640 + b
b = 1140 - 10640
b = -9500
Therefore, the profit function for this company is:
p(x) = 56x - 9500
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A company reports the following:
Income before income tax expense $3,987,900
Interest expense 189,000
Determine the times interest earned. Round to one decimal place.
The distance between the buildings is approximately equal to 2c ≈ 2(15.242) = 30.484, which is approximately equal to 40 meters. Therefore, the correct answer is A. 40 Meters.
The 40 degree angle formed when Sari turns towards Building B is an acute angle with the adjacent side as 20m and the opposite side as x. Thus, we can use the trigonometric ratio, tangent which is opposite side divided by adjacent side to find x, tan(40°) = x / 20 x = 20 tan(40°)This gives us x = 15.259 m, which is the height of Building B. Similarly, we can use the distance Sari measured to Building B to find the length of Building B by using the same ratio, tan(50°) = 25 / y, y = 25/tan(50°).This gives us y = 20.192 m. Now that we have the height of Building B and the length of Building B, we can calculate the hypotenuse of the right triangle formed by Buildings A and B using the Pythagorean theorem, c² = a² + b²where a = 15.259 m and b = 20.192 m, c² = 232.216 Hence, c ≈ 15.242 meters.
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when aggregate demand exceeds aggregate income, the real interest rate must rise to achieve equality between aggregate demand and aggregate income.
When aggregate demand exceeds aggregate income, the real interest rate must rise.
When aggregate demand surpasses aggregate income, it creates a situation where there is an excess demand for goods and services in the economy. This imbalance between demand and income leads to upward pressure on prices. To restore equilibrium between aggregate demand and aggregate income, the real interest rate must rise.
An increase in the real interest rate affects the cost of borrowing and incentivizes individuals and businesses to reduce their spending and investment. As the real interest rate rises, borrowing becomes more expensive, leading to decreased consumption and investment expenditure. This reduction in spending helps to align aggregate demand with aggregate income.
Higher interest rates also encourage saving, as individuals are rewarded with greater returns on their savings. Increased saving leads to a decrease in consumption expenditure, which helps to reduce the excess demand in the economy. Ultimately, this adjustment in spending patterns helps to restore equilibrium between aggregate demand and aggregate income.
In summary, when aggregate demand exceeds aggregate income, the real interest rate must rise to counterbalance the excess demand and bring about equality between aggregate demand and aggregate income.
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a decrease in stock prices alters the consumption function by: select one: a. increasing the mpc. b. decreasing the mpc. c. increasing the constant term. d. decreasing the constant term.
When there is a decrease in stock prices, the consumption function is altered by decreasing the constant term. Option D.
What is the consumption function?A consumption function is a statistical formula that identifies the relationship between total consumption in an economy and total disposable income.
The consumption function determines the relationship between the amount of income that an individual or a group has and the amount of money that they spend.
It is usually expressed in the form of a mathematical formula: C = a + bY where C is consumption, Y is disposable income, a is autonomous consumption, and b is the marginal propensity to consume (MPC).
How do stock prices affect the consumption function?When stock prices decline, individuals who hold stock lose wealth. Therefore, their disposable income and consumption decrease as a result.
As a result, the consumption function is altered when there is a decline in stock prices. This decrease in stock prices alters the consumption function by decreasing the constant term.
Hence, the right answer is option D. Decreasing the constant term.
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Identify and compute total discretionary fixed costs and total committed fixed costs from the followiing list prepared by the accounting supervisor for Kasay Building Supply:
_________________________________________________________
Advertising $21,000 Discretionary
Depreciation 48,000 Committed fixed cost
Health insurance for the company’s employees 24,000 Discretionary
Management salaries 87,500 Committed fixed cost
Payment on long-term debt 48,500 Committed fixed cost
Property tax 30,000 Committed fixed cost
Grounds maintenance 7,000 Discretionary
Office remodeling 24,000 Discretionary
Research and development 45,000 Discretionary
The overall discretionary fixed expenses for Kasay Building Supply amount to $121,000.
We must first determine the costs classified as committed fixed costs and discretionary fixed costs in order to calculate the overall committed fixed costs and discretionary fixed costs for Kasay Building Supply.
The costs from the above list that are classified as discretionary include:
1. Publicity - $21,000
2. Employee health care insurance costs $24,000.
3. Grounds upkeep: $7,000.
4. $24,000 for office remodeling
5. $45,000 for research & development
The total discretionary fixed costs come to $121,000 when these sums are added together.
However, the expenses classified as committed fixed expenses are as follows:
Depreciation is worth $48,000.
2. $87,500 in management salaries
3. $48,500 in long-term debt repayment
4. A $30k property tax
The sum of these figures equals $214,000 for the committed fixed costs overall.
Consequently, the Kasay Building's overall discretionary fixed expenses.
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A car loan of $46,700 is amortized over 8 years by equal monthly payments at 29% compounded monthly. What is the monthly payment and outstanding principal balance after 40 payments? Round to the nearest cent. A. $544.34 and $28,478.06 B. $545.66 and $18,153.12 C. $486.46 and $27,241.67 D. $545.66 and $28,546.88
Correct option is B. $545.66 and $18,153.12The monthly payment for the car loan is $545.66, and the outstanding principal balance after 40 payments is $18,153.12.
Monthly Payment Calculation,To calculate the monthly payment, we can use the formula for the monthly payment on an amortized loan:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M = Monthly payment
P = Principal amount of the loan ($46,700)
r = Monthly interest rate (29% divided by 12 months, or 0.29/12)
n = Total number of payments (8 years multiplied by 12 months, or 8 * 12)
Plugging in the values, we get:
M = [tex]46700 * (0.29/12 * (1 + 0.29/12)^(^8^*^1^2^)) / ((1 + 0.29/12)^(^8^*^1^2^) - 1)[/tex]
After evaluating the expression, the monthly payment comes out to be approximately $545.66.
Outstanding Principal Balance after 40 Payments
To calculate the outstanding principal balance after 40 payments, we need to determine the remaining principal amount after 40 months of payments. We can use an amortization formula to calculate this value:
B = P * ((1 + r)^n - (1 + r)^m) / ((1 + r)^n - 1)
Where:
B = Outstanding principal balance after m payments
P = Principal amount of the loan ($46,700)
r = Monthly interest rate (29% divided by 12 months, or 0.29/12)
n = Total number of payments (8 years multiplied by 12 months, or 8 * 12)
m = Number of payments made (40)
Plugging in the values, we get:
B = [tex]46700 * ((1 + 0.29/12)^(^8^*^1^2^) - (1 + 0.29/12)^4^0) / ((1 + 0.29/12)^(^8^*^1^2^) - 1)[/tex]
After evaluating the expression, the outstanding principal balance after 40 payments comes out to be approximately $18,153.12.
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Market failures refer to those situations where the sellers are not producing as much as the buyers are wanting to buy. Group of answer choices FALSE TRUE
Market failures refer to situations where the market fails to allocate resources efficiently, resulting in an imbalance between the quantity demanded by buyers and the quantity supplied by sellers. Answer is true.
This statement is TRUE. Market failures can occur due to various reasons, such as externalities, lack of competition, incomplete information, and public goods. These factors can lead to inefficiencies in resource allocation and prevent the market from reaching an equilibrium where supply matches demand.
For example, if a producer is not aware of the negative impact their production process has on the environment (an externality), they may not take the necessary steps to reduce pollution. As a result, the quantity supplied may be less than what buyers are demanding, leading to a market failure.
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Marginal revenue is equal to price for a perfectly competitive firm because?
The explanation for why marginal revenue is equal to price for a perfectly competitive firm lies in the nature of the market structure. In a perfectly competitive market, there are numerous buyers and sellers, and no individual firm has the ability to influence the market price.
When a perfectly competitive firm increases its production and sells additional units, it is able to sell them at the prevailing market price. Therefore, the marginal revenue generated from selling each additional unit is equal to the market price. This is because the firm is a price taker, meaning it has no control over the price and must accept it as given.
For example, let's say the market price for a product is $10. If a perfectly competitive firm sells one more unit, it will receive an additional $10 in revenue, which is equal to the market price. Similarly, if the firm sells two more units, it will receive $20 in additional revenue, again equal to the market price.
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