Answer:
This is a group that can be defined by its high cohesiviness and low performance norms.
Explanation:
In this case, the new leader must focus on solving this problem that already exists where team members have high cohesion, but who have a low performance with regard to compliance with internal rules and procedures.
The ideal in this case would be for the leader to review the set of company policies and standards and seek to establish new rules and procedures for living and working together.
Having a cohesive team is not a weakness for an organization, the ideal is to know how to exploit the potential of each member of that team, so that each one delivers to the company an effective job that contributes to the achievement of the objectives and organizational goals.
The manager can also invest in training, redesigning the layout of work and tasks, setting deadlines for completing activities, delivering warnings to ward off inappropriate behavior during working hours, etc.
A corporation has operating income of $75,000. What is its taxable income if it receives a $20,000 dividend from another corporation in which it has the following ownership?
a. 10% is:
b. 65% is:
c. 90% is:
Answer:
Taxable income is $ 85000, $82000, and $75000
Explanation:
Given operating income = $75000
The dividend received from other corporations = $20000
Dividend received is taxable as, if the percentage of ownership is less than 20 percent then the deduction is 50 percent. If between 20 percent to 80 percent then 65 percent deduction. If more than 80 percent then 100 percent deduction.
a.10 percent ownership.
Taxable income = 75000 + 20000(1 – 50%) = 85000
b.65 percent ownership.
Taxable income = 75000 + 20000(1 – 65%) = 82000
c.90 percent ownership.
Taxable income = 75000 + 20000(1 – 100%) = 75000
Today you purchase a $600 face-value, 8% coupon bond for $600. This bond matures over 10 years. What is the value of the cash flow in year 5?
Answer:
the value of the cash flow in year 5 is -$48
Explanation:
Cash flow in year 5 include a capital repayment and interest expense.This can be determined by constructing an amortization schedule from the data given.
The first step in constructing the amortization schedule is to find the Yield to Maturity.
Pv = -$600
Pmt = $600 × 8% = $48
P/yr = 1
N = 10
Fv = $600
YTM = ?
Using a Financial Calculator the Yield to Maturity is 8%.
then to determine the cash flow for year 5, we need the coupon amount (interest) and the amount of capital repayment.
Coupon $48
Capital $0
Total $48
Therefore the cash flow in year 5 is -$48.
Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Cuenca Company is considering the purchase of new equipment that will speed up the process for producing flash drives. The equipment will cost $7,200,000 and have a life of 5 years with no expected salvage value. The expected cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $8,000,000 $6,000,000 2 8,000,000 6,000,000 3 8,000,000 6,000,000 4 8,000,000 6,000,000 5 8,000,000 6,000,000 Kathy Shorts is evaluating an investment in an information system that will save $240,000 per year. She estimates that the system will last 10 years. The system will cost $1,248,000. Her company's cost of capital is 10%. Elmo Enterprises just announced that a new plant would be built in Helper, Utah. Elmo told its stockholders that the plant has an expected life of 15 years and an expected IRR equal to 25%. The cost of building the plant is expected to be $2,880,000. Required: 1. Calculate the IRR for Cuenca Company. The company's cost of capital is 16%. Round your answer to the nearest percent
Answer:
1. Calculate the IRR for Cuenca Company. The company's cost of capital is 16%.
12%Explanation:
Cuenca Company
Equipment cost $7,200,000
useful life 5 years, no salvage value
Year Cash Cash Net cash flows
revenues expenses
0 $7,200,000 -$7,200,000
1 $8,000,000 $6,000,000 $2,000,000
2 $8,000,000 $6,000,000 $2,000,000
3 $8,000,000 $6,000,000 $2,000,000
4 $8,000,000 $6,000,000 $2,000,000
5 $8,000,000 $6,000,000 $2,000,000
using a financial calculator, the internal rate of return (IRR) = 12.05% = 12%
The IRR for Cuenca Company is 12%.
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project. Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
Cash flows of the project
Cash flow in year 0 = $-7,200,000Cash flow in year 1 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 2 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 3 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 4 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 5 = $8,000,000 - $6,000,000 = $2 millionThe IRR can be determined using a financial calculator, the IRR is 12%.
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ZNet co. is a web based retail company. The company reports the following for the past year. The company's CEO believes that sales for next year will increase by 10% and both profit margin and the level of average invested assets will be the same as for the past year
1. Compute return on investment for 20172. Compute profit margin for 20173. If the CEO's forecast is correct, what will return on investment equal for 2018?4. If the CEO's forecast is correct, what will investment turnover equal for 2018?
Answer:
1. 17%
2. 42.5%
3. $2,748,900
4. 44%
Explanation:
1. Return on Investment for 2017
= [tex]\frac{Operating Income}{Average Invested Assets}[/tex]
= [tex]\frac{2,499,000}{14,700,000}[/tex]
= 17%
2. Profit Margin 2017
= [tex]\frac{Operating Income}{Sales}[/tex]
= [tex]\frac{2,499,000}{5,880,000}[/tex]
= 42.50%
3. Should the sales increase by 10% in 2018 then the new sales figure will be;
= $5,880,000 + ($5,880,000 *10%)
= $6,468,000
Profit = Sales * Profit Margin
= 6,468,000 * 42.5%
= $2,748,900
Return on Investment for 2018
= [tex]\frac{Operating Income}{Average Invested Assets}[/tex]
= [tex]\frac{2,748,900}{14,700,000}[/tex]
= 18.7%
4. Investment turnover equal for 2018
= [tex]\frac{ Sales}{Average Invested Assets}[/tex]
= [tex]\frac{6,468,000}{14,700,000}[/tex]
= 44%
Kerch Co. had beginning net fixed assets of $216,510, ending net fixed assets of $211,680, and depreciation of $40,435. During the year, the company sold fixed assets with a book value of $7,966. How much did the company purchase in new fixed assets?
Answer:
$43,571
Explanation:
The computation of the purchase in a new fixed asset is shown below:
Beginning net fixed assets $216,510
Less: depreciation expenses -$40,435
Net fixed assets -$176,075
Less: book value of sold assets -$7,966
Net fixed assets $168,109
Closing net fixed assets $211,680
purchases of net assets during the year $43,571 ($211,680 - $168,109)
We simply applied the above format
For each situation, list the assumption, principle, or constraint that has been violated, if any.
A) East Lake Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain.
B) Hilo Company is in its fifth year of operation and has yet to issue financial statements.
C) Gomez, Inc. is carrying inventory at its original cost of $100,000. Inventory has a fair value of $110,000.
D) Bly Hospital Supply Corporation reports only current assets and current liabilities on its balance sheet. Equipment and bonds payable are reported as current assets and current liabilities, respectively. Liquidation of the company is unlikely debited the "Computers" account.
E) Chieu Company has inventory on hand that cost $400,000. Chieu reports inventory on its balance sheet at its current fair value of $425,000.
F) Toxy Syles, president of Classic Music Company, bought a computer for her personal use. She paid for the computer by using company funds debited the "Computers" account.
A. Going concern assumption
B. Periodically Assumption
C. Historial Cost Principle
D. Revenue Recognition Principle
E. Economic Entity Assumption
F. No Violation
Ansewer:
E i think
Explanation:
The following situations are correctly matched with the assumption, principle:
Revenue Recognition Principle: Before the sale but at the conclusion of the production cycle, East Lake Company records revenue. It is uncertain what the product will cost and how much can be sold.Periodically Assumption: Despite being in its fifth year of operation, Hilo Company has not yet released financial results.No Violation: Gomez, Inc. is holding goods at its $100,000 original cost. The fair value of the inventory is $110,000.Going concern assumption: On its balance statement, Bly Hospital Supply Corporation only lists current assets and current liabilities. Current assets and current liabilities are the amounts that are stated for equipment and bonds payable, respectively. It's doubtful that the "Computers" account would be debited during firm liquidation.Historial Cost Principle: Bly Hospital Supply Corporation only lists current assets and current liabilities on its balance sheet. The quantities for equipment and bonds payable are indicated as current assets and current liabilities, respectively. The "Computers" account would probably not be debited during corporate dissolution.Economic Entity Assumption: Toxy Syles, president of Classic Music Company, bought a computer for her personal use. She paid for the computer by using company funds and debited from the "Computers" account.What is the Going concern assumption?According to the going concern principle, any organization's operations will continue for the foreseeable future. According to the guiding principle, every choice made by a company should be made with its continued operation in mind rather than its eventual closure.
Thus, the mention above correctly matched the assumption, and principle.
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Patton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2021, paying $1,410,375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity.*USE T ACCOUNTS
On July 1, 2018, Patton Company should increase its Debt Investments account for the Scott Company bonds by?
For the year ended December 31, 2018, Patton Company should report interest revenue from the Scott Company bonds of?
Answer:
On July 1, 2018, Patton Company should increase its Debt Investments account for the Scott Company bonds by?
I will assume that the bonds were purchased on January 2018 and not January 2021.
The journal entry to record the purchase of the bonds was:
January 1, 2018, investment on bonds
Dr Debt Investment 1,500,000
Cr Cash 1,410,375
Cr Discount on Debt Investment 89,625
the journal entry to record the interests received on July 1, 2018 would be:
Dr Cash 75,000
Dr Discount on Debt Investment 2,570.63
Cr Interest revenue 77,570.63
Discount on Debt Investment = ($1,410,375 x 5.5%) - ($1,500,000 x 5%) = $77,570.63 - $75,000 = $2,570.63
Patton company should increase its Debt investment by $2,570.63 (amortized discount).
For the year ended December 31, 2018, Patton Company should report interest revenue from the Scott Company bonds of?
The journal entry to record accrued interests:
Dr Interest receivable 75,000
Dr Discount on Debt Investment 2,712
Cr Interest revenue 77,712
Discount on Debt Investment = ($1,412,945.63 x 5.5%) - ($1,500,000 x 5%) = $77,712 - $75,000 = $2,712
Total interest revenue for 2018 = $77,570.63 + $77,712 = $155,282.63
If you are using new information in a survey that was not collected during previous surveys, you will be using _______ to gauge customer satisfaction.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Biased data
b) Raw data
c) Available data
d) Peer-reviewed data
And the correct answer is the option B: Raw data.
Explanation:
To begin with, the concept known as "Raw Data" refers to the amount of data that is collected from a source for the very first time in order to be used in an analysis. Therefore that it is this type of data that is also called as "primary data" due to the fact that has not been collected before and that action will implicate more work from the analyzer who is interest in collecting all that new data.
In cases where new information in a survey that was not collected during the previous surveys, the information that will be used will be organic data to gauge customer satisfaction. So, the correct option is B.
Raw information relates to the information that was not collected before for any purposes and is being freshly collected and gathered to use and report in the survey.
Raw data or organic data is self collected data which has been gathered from sources that are yet alien to the general public. A special report has to be created on such data collected.The reliability of an organic data is always under question as the sources used to collect the information are not verified and it becomes difficult to rely on data reported in such surveys.Surveys are created out of raw data only in cases of when any information is not available in the public domain or when the surveyor attempts to portray his or her own studies into surveys.Hence, the correct option is B that when the usage of a new information is being done in order to curb usage of data not used previously, one will be using raw data or organic information to gauge customer satisfaction.
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It is based on perceived characteristics such as style, fashion or peer acceptance.
Answer:
Consumer buying behavior
Explanation:
Due to various factors that affect consumer's purchase decision, crucial among them is emotional factors.Thus, many consumer marketing put more efforts in creating a stimulating discretionary buying behavior through catchy and enticing advertisement to create and increase demand.
Hence, considering that often times consumer goods are discretionary products people may want but don’t necessarily need, such as entertainment services and vacation travel, it can be concluded that CONSUMER BUYING BEHAVIOR is based on perceived characteristics such as style, fashion or peer acceptance.
With perfect price discrimination the monopoly a. charges each customer an amount equal to the monopolist's marginal cost of production. b. eliminates all price discrimination by charging each customer the same price. c. eliminates profits and increases consumer surplus. d. eliminates deadweight loss.
Answer:
Option D, Eliminates the dead-weight loss.
Explanation:
Option D is correct because there is dead-weight loss under monopoly because it produces less as compared to perfect competition. Therefore, a monopolist eliminates this dead-weight loss by producing at the level where the marginal cost curve cuts the marginal revenue curve and charging each consumer their willingness to pay the amount
A company was formed with $60,000 cash contributed by its owners in exchange for common stock. The company borrowed $30,000 from a bank. The company purchased $10,000 of inventory and paid cash for it. The company also purchased $70,000 of equipment by paying $10,000 in cash and issuing a note for the remainder.
Use the information above to answer the following question. What is the amount of the total assets to be reported on the balance sheet?
a. $150,000.
b. $160,000.
c. $90,000.
d. $80,000.
Consider the following hypothetical data for an open economy (in millions):
Assets owned inside the U.S. by U.S. citizens = $140, 000140,000
Assets owned outside the U.S. by U.S. citizens = $23,35723,357
Assets owned outside the U.S. by foreign citizens = $110,000110,000
Assets owned inside the U.S. by foreign citizens = $22,78622,786
The value of the International Investment Position (IIP) of the U.S. is__________ $ nothing million.
Answer: $571 million
Explanation:
International Investment Position (IIP) is an Economic measure that is calculated to see the assets owned by the citizens of a country outside the country versus the assets owned by foreigners in the country in question. It is informally referred to as a nation's Balance Sheet with other countries.
It is calculated by;
Value of the International Investment Position of the US = Assets owned outside the US by the US citizens - Assets owned inside the US for the foreign citizens
= 23,357 - 22,786
= $571 million
Which of the following accounts are normally reported as current liabilities on a classified balance sheet?
a. Accounts Payable and Prepaid Insurance
b. Interest Payable and Interest Receivable
c. Capital Stock and Accounts Payable
d. Income Taxes Payable and Salaries Payable
Answer:
d. Income Taxes Payable and Salaries Payable
Explanation:
Current liabilities are short term obligations of an entity due for repayment within a period of 12 months.
From the options given d. Income Taxes Payable and Salaries Payable both presents current liabilities.
According to the basic quantity equation of money, if price and output fall while velocity increases, then: Group of answer choices
Answer:
The quantity of money will fall as well.
Explanation:
According to the quantity theory of money, money supply (M) and price level (P) in an economy are in direct proportion to one another.
In other words, the percentage change in price level is proportionate to the percentage change in Money Supplied.
The formula is given as:
M*V= P*T
where, V = Velocity of money and T = volume of the transactions.
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Joe was moving from California to Michigan to attend college. Joe answered an advertisement on the web and signed a lease for an apartment without ever seeing the apartment. Joe found the premises filled with an abundance of debris, rats and insects. Also, the plumbing in the apartment was inoperable. These conditions:________
Answer:
Most likely constitute a breach of the implied warranty of habitability.
Explanation:
A warranty of habitability specifies that a property for rent is up to standard, that is it meets basic living and safety standards. This warranty is only implied for leases and rentals of residential properties. Since Joe found the premises filled with an abundance of debris, rats and insects and the plumbing in the apartment inoperable, then this property is not up to standard and therefore constitute a breach of the implied warranty of habitability
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 6,100 Selling price per unit $ 590 Unit cost of goods sold $ 413 Variable selling expense per unit $ 50 Total fixed selling expense $ 125,600 Variable administrative expense per unit $ 28 Total fixed administrative expense $ 207,500 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.
Answer:
Instructions are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
I will assume that there is no beginning nor ending inventory.
Absorption costing income statement:
Sales= 6,100*590= 3,599,000
COGS= (6,100*413)= (2,519,300)
Gross profit= 1,079,700
Total selling expense= (6,100*50 + 125,600)= (430,600)
Total administrative expense= (6,100*28 + 207,500)= (378,300)
Net operating income= 270,800
Variable costing income statement:
Sales= 3,599,000
Total variable cost= 6,100*(413 + 50 + 28)= (2,995,100)
Total contribution margin= 603,900
Total fixed selling expense= (125,600)
Total fixed administrative expense= (207,500)
Net operating income= 270,800
Suppose you are a manager at an advertising agency who is eager to utilize Covey’s advice about delegation. Today, you need to work on a presentation for a potential new client. This requires delegating a routine status report about an ongoing advertising campaign to Patricia. You ask Patricia to complete the status report, making her haveresponsibility for its completion. Which of the following are true after you delegate the status report to Patricia? Check all that apply. You should guide Patricia through each step of the assignment to serve as a mentor. Patricia must have authority over the resources and personnel needed to complete the status report. You should help Patricia with the status report, to the extent you have time. Patricia will be held accountable for the results of the assignment. The advertising agency recently reorganized. Patricia now reports to both the regional sales manager and a senior product manager which means there unity of command. Unity of command in matrix organizations. Lower-level employees have the authority to act without first seeking approval for activities in a company. Continue without saving
Answer and Explanation:
In the first situation, the accounting and responsibility is chosen as of the superior assigned the work to the subordinate so there would be accounting and responsibility that the given work should be completed within the prescribed time and under the full responsibility
In the second situation, there is a unity of command but it does not exist in the matrix organization. Here unity of command is reporting to one boss.
In the third situation, decentralization is there as there are the authority to take independent decisions by middle level and lower level employees
The following statements that are true after you delegate the status report to Patricia are:
A. You should guide Patricia through each step of the assignment to serve as a mentor.B. Patricia must have authority over the resources and personnel needed to complete the status report. D. Patricia will be held accountable for the results of the assignment.According to Stephen Covey’s advice about delegation, he stated that when duties or responsibilities are delegated to a person that does not have the capacity to properly handle them, then the output may be disastrous.
Furthermore, Covey also said that when delegating to someone, it is important to give them space to work and not to interfere too much and hold them accountable to the results.
As a result of this, we can see that Patricia is in charge of the routine status report as a part of the ongoing advertisement campaign and she should have not only full authority, but also be held accountable for the outcome of the assignment.
Therefore, the correct answers are options A, B and D
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In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:________
a. safety stock replenishment
b. economic order quantities
c. reorder points
d. fixed order interval
e. blanket ordering
Answer:
it may be fixed order interval because the vendor is restocking every monday only.
When the price increases by 30% and the quantity demanded drops by 10%, the price elasticity of demand is: quizet
Answer:
0.33 inelastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
10% / 30% = 0.33
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one .
Assume the total cost of a college education will be $395,000 when your child enters college in 18 years. You presently have $65,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?
Answer:
8.87%
Explanation:
Calculation for the annual rate of interest you must earn on your investment to cover the cost of your child’s college education
Using this formula
FV = PV(1 + r)t
Based on the information we were told to calculate for annual rate of return, this means we would be Solving for r
r = (FV / PV)1 / t– 1
Where,
FV =$300,000
PV=$65,000
=1 / t =1/18 years
Let plug in the formula
r = ($300,000 / $65,000)1/18– 1
r=(4.6153846)^0.055555 -1
r=1.08867-1
r= 0.0887 *100
r=8.87%
Therefore the annual rate of interest you must earn on your investment to cover the cost of your child’s college education will be 8.87%
Which of the following is a typical complaint of host-country competitors (such as GM, Ford etc) against foreign firms (such as KIA in the US)?a) foreign firms burden the host-country with infrastructure requirements.b) foreign firms lure local workers away from host-country businesses.c) foreign firms do not have to obey host-country law and regulations.d) foreign firms receive financial support from host-country governments.
Answer:
Option (d) is the correct answer to this question.
Explanation:
The nation in which those State members or organizations are involved at the request of the state and/or foreign negotiation.
A foreign country 's government, in which a representative and foreign embassies live while on duty. The diplomat and staff serve their own country's values and policies while being host country guests.
Other options are incorrect because they are not related to the given scenario.
Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $2 today and then you sold it for $101. What was your dividend yield and capital gains on the investment
Answer:
Dividend yield= 2%
Capital gain = 1$
Explanation:
Capital gain is the difference between the cost of the shares when it was purchased and the price now
Capital gains = Price of the share now - cost of the shares
Capital gain = 101- 100 = 1
Capital gain = 1$
Dividend yield is the dividend earned as a proportion of the price of the share
Dividend yield = Dividend/ price × 100 =
Dividend = 2, Price = 101
Dividend yield = 2/101× 100 = 1.98
Dividend yield= 2%
Which of the following is true regarding the effect of a debtor offering to pay a different type of payment, for example, goods instead of money, on a debt for which there is not a dispute over the amount or existence of the debt, and the creditor agrees?
A. A liquidated debt is involved, and there is an accord and satisfaction.
B. A liquidated debt is involved, and there is an accord but no satisfaction.
C. A liquidated debt is involved, and there is not a satisfaction or an accord.
D. An un-liquidated debt is involved, and there is an accord and satisfaction.
E. An un-liquidated debt is involved, and there is an accord but not satisfaction.
Answer:
D. An un-liquidated debt is involved, and there is an accord and satisfaction.
Explanation:
The impact when debtor offers to pay the different type of payment like goods instead of money, non dispute debt arises when the unliquidated debt is involved that means the amount is owed as mentioned in the contract or it is under dispute
Plus it also accord and satisfaction
Therefore the correct option is d.
Suppose the price index was 105 in 2017, 126 in 2018, and the inflation rate was lower between 2018 and 2019 than it was between 2017 and 2018. This means that
Answer:
These are the answers to the question:
a. the price index in 2019 was lower than 126.0.
b. the price index in 2019 was lower than 147.0.
c. the price index in 2019 was lower than 151.2.
d. the inflation rate between 2018 and 2019 was lower than 1.2 percent.
And this is the correct answer:
b. the price index in 2019 was lower than 147.0.
Explanation:
We can see that the price index rose by 21 units from 105 in 2017 to 126 in 2018.
If the inflation rate was lower between 2018 and 2019, it means that the price index rose by less than 21 units during this period.
Because 126 + 21 = 147, we can be certain that the price index in 2019 was lower than 147.
Physical Units Work in process, beginning 0 Completed and transferred out 89000 Work in process, ending 6000 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?
Answer:
Total equivalent units= 95,000 units
Explanation:
Giving the following information:
Work in process, beginning 0
Completed and transferred out 89,000
Work in process, ending 6,000
Materials are added at the beginning of the process.
Because the materials are added at the beginning of the process, the equivalent units are the same as units started and completed.
Total equivalent units= 89,000 + 6,000= 95,000 units
A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced 1,000 units per day, its total cost would be $450, and if it produced 700 units per day, its total cost would be $425. Instructions: Round your answers to 2 decimal places. a. What are the firm's ATC at these three levels of production
Answer:
Explanation:
The average total cost is calculated as the total cost divided by the number of outputs. The firm's ATC at these three levels of production will be:
1. 1,200 units per day at a total cost of $700.
ATC = Total cost/output
ATC = $700/1200
ATC = $0.58
2. If the firm produced 1,000 units per day, its total cost would be $450.
ATC = Total cost/output
ATC = $450/1000
ATC = $0.45
3. If it produced 700 units per day, its total cost would be $425.
ATC = Total cost/output
ATC = $425/700
ATC = $0.61
clarissa wants to fund a growing perpetuity that will pay $5000 per year to a local museum, starting next year. She wants the annual amount paid to the museum to grow by 5% per year. Given that the interest rate is 8%, how much does she need to fun this perpetuity
Answer:
$166,666.67
Explanation:
Clarissa wants to take charge of finding a growing perpetuity that will pay a total amount of $5,000 per year to a local museum
She wants the annual amount paid to the museum to grow by 5% per year
= 5/100
= 0.05
The interest rate is 8%
= 8/100
= 0.08
Therefore, the amount used to fund the perpetuity can be calculated as follows
Pvo= $5,000/(0.08-0.05)
= $5,000/0.03
= $166,666.67
Hence Clarissa needs $166,666.67 to fund the perpetuity.
The Department of Housing and Urban Development (HUD) would like to test the hypothesis that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000. The following data summarizes the sample statistics for house sizes, in square feet, for both years. Assume that the population variances are equal.
2000 2010
Sample mean 2,180 2,390
Sample size 15 12
Sample standard deviation 300 320
If Population 1 is defined as homes built in 2000 and Population 2 is defined as homes built in 2010, which one of the following statements is true?
A. Because the
95
%
confidence interval includes zero, HUD cannot conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
B. Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
C. Because the
95
%
confidence interval includes zero, HUD can conclude that the average size of a newly constructed house in 2010 is equal to the average size of a newly constructed house in 2000.
D. Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is not different from the average size of a newly constructed house in 2000.
Answer:
B. Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
Explanation:
Here,
Null and alternative hypotheses are:
H0: u1 = u2
H1: u1 ≠ u2
Calculate test statistics:
[tex] t = \frac{x'1 - x'2}{\sqrt{\frac{(n_1 - 1) (\sigma_1)^2 + (n_2 - 1)(\sigma_2)^2}{n_1 + n_2 - 2} * (\frac{1}{n_1} + \frac{1}{n_2})}} [/tex]
[tex] = \frac{2180 - 2390}{\sqrt{\frac{(14)(300)^2 + (11)(320)^2)}{15 +12 - 2} * (\frac{1}{15} + \frac{1}{12})}} [/tex]
[tex] = \frac{-210}{\sqrt{\frac{(1260000) + (1126400)}{25} * (0.15)}} [/tex]
[tex] t = -1.7549 [/tex]
At 95% confidence interval, find t observed:
Significance level = 100% - 95% = 5% = 0.05
Degrees of freedom = 15 + 12 - 2 = 25
[tex] t_o = t_\alpha_/_2_, _d_f = t_0_._0_5_/_2_, _2_5 = t_0_._0_2_5, _2_5 = 2.06 [/tex]
T calculated = -1.76
T observed(critical) = -2.06
Since t calculated is bigger than t critical, reject null hypothesis H0.
Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
The company XOXO is specialized in producing treadmills. The company allocates manufacturing overhead based on direct labor hours. XOXO estimated a total of $4,600 of manufacturing overhead that can be dispatched on all jobs. Moreover, the total direct labor hours that has been recorder during the period raises up to 460 hours. Job 12 consists of 30 sets of treadmills. The company’s records show that the following direct costs were requisitioned for Job 12: • Electronic parts: 40 units at $20 per unit • Plastic: 10 kilograms at $10 per kilogram • Labor hours: 60 hours at $25 per hour Requirement: 1. Calculate the predetermined manufacturing overhead (MOH) rate.
Answer:
Predetermined manufacturing overhead rate= $10 per direct labor hour
Explanation:
Giving the following information:
The company allocates manufacturing overhead based on direct labor hours.
Estimated a total overhead= $4,600
Direct labor hours= 460
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 4,600/460= $10 per direct labor hour
If P represents the price of goods and services measured in money, then 1/P is the value of money measured in terms of goods and services True False
Answer:
The answer is True
Explanation:
There is an inverse relationship between the price level and value of money (also known as purchasing power). An increase in the price level is the same as an decrease in the value of money.
As the price level decreases money is able to buy more goods and services and as the price level increases, money is able to buy less goods and services. inflation decrease the value of money or consumers' purchasing power.