Answer: A. 2.05 B. 5.10 C. 0
Explanation: Payback period can be defined as the period under which the profits or savings in an investment can recover the initial outlay invested in that investment. In simple words we can say that it is the time required by an investment to pay for itself.
Pay back period is computed as follows :-
[tex]=\:payback\:period=\frac{\:Initial\:cash\:outlay}{cash\:inflows}[/tex]
therefore,
A. [tex]=\:payback\:period=\frac{1450}{705}[/tex]=2.05years
B.[tex]=\:payback\:period=\frac{3600}{705}[/tex]=5.10years
C.[tex]=\:payback\:period=\frac{5800}{705}[/tex]=0
The payback period for an initial cost of $1,450 is approximately 2.06 years. For an initial cost of $3,600, it is about 5.11 years. For an initial cost of $5,800, the project never pays back within the 8-year period.
Explanation:The payback period is the time it takes for a project to recover its initial investment. To calculate it, you divide the initial investment by the annual cash inflows. For the first scenario with the initial cost of $1,450, the payback period is $1450/$705 = 2.06 years. For the second scenario with the initial cost of $3,600, the payback period is $3600/$705 = 5.11 years. Lastly, for the scenario with the initial cost of $5,800, since the project only provides cash inflows for eight years and the payback period is over 8 years, the project never pays back, so the answer is 0.
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What step is NOT likely to reduce possible attacks to an organization: Select one: a. Restart the Active Directory database b. Install anti-spyware software c. Install a firewall d. Ensure all patches for the operating system and applications are installed
Answer:
The correct answer would be option A, Restart the active directory database.
Explanation:
When there is an attack on organizational data or information systems, there are many measures that need to be taken to avoid such attacks to make sure that these attacks don't happen again and to check that all systems are working correctly or not. So in this regard, option A is the most appropriate one, because restarting a database will not help in reducing the possible attacks to an organizational data or information systems. Anti virus spyware, installing firewall and ensuring the working of all patches for an operating system and application are more important tasks to do in such situation.
Answer
Correct option is (a). An organization needs to be prepared in order to avoid a possible cyber attack. Though a number of steps are involved in preventing such an attack, restarting the active directory database is not one of them.
Explanation
A Cyber attack can be defined in the most simple manner as an attempt to gain access to a computer system illegally with the motive to cause harm. Cyber attacks can compromise data and may lead to several Cyber crimes such as information and identity theft.
Active directory is a Microsoft technology. It is used to manage computers and other devices on a network. Its purpose is to authorize and authenticate all users and computers. Restarting an active directory database is not going to prevent cyber attacks as it will not stop skeleton key malware from attacking and gaining control of the system.
Both large, as well as small companies, face threats of a cyber attack. A successful cyber attack can cause huge damages to an organization. These attacks can cause financial loss and legal consequences for the company.
In order to prevent these from happening the companies need to be prepared in advance to prevent these attacks from being successful.
Further Explanation
There are a number of steps that the companies can take to be prepared. These steps are mentioned as follows:
The companies can keep a firewall for their internet connection. They need to use anti-spyware and antivirus software. These software should be regularly updated. The employees should be trained and educated in cyber security. The hardware of the company should be protected from outsiders.The company data should be backed up and saved in more than one place. The wi-fi network should be secured and hidden. The operating system and applications should be regularly updated and all patches and new software updates should be installed. The employees should have individual user accounts and should be discouraged from sharing passwords. Employee access to data and information should be limited.Learn More
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Keywords
Cyber attack, Cyber security, Malware, Anti spyware, Computer systems, Companies' security, Organizational security, data and information.
A country has reached a level of economic development where the manufacturing of both semidurable and nondurable consumer goods has just begun. Also, the goods demanded relate to equipment and supplies to support manufacturing. In which stage of Rostow's five-stage model of economic growth does the country fit?
Final answer:
The country fits into the second stage of Rostow's model, known as the preconditions for take-off, where it begins to move toward industrialization and the economy starts to demand more supplies for manufacturing.
Explanation:
The country in question, which has begun manufacturing both semidurable and nondurable consumer goods and demands equipment and supplies to support manufacturing, fits into the second stage of Rostow's five-stage model of economic growth. This stage is known as the preconditions for take-off. At this level, the society is transitioning from an agrarian economy to one that begins to embrace industrialization. Infrastructure improvements and an increase in productivity in agriculture are typical, paving the way for more industrial activities. Investment in manufacturing industries drives the demand for equipment and supplies.
Rostow's model shows how economies evolve from a traditional society with a predominance of agriculture to a stage of high mass consumption with a diversified economy. Each stage represents increasing levels of economic output, urbanization, and improvements in the standard of living. As a country progresses through these stages, it witnesses significant structural changes across various sectors of the economy.
Which of the items is most likely to be a complement to coffee?
decaf coffee
tea
creamer
baked beans
Out of the given options, creamer is the most appropriate complement to coffee as it is specifically designed to be added to coffee to enhance its flavor and texture.
Explanation:The question asks which of the items is most likely to be a complement to coffee: decaf coffee, tea, creamer, or baked beans. In this context, a complement refers to something that is often used together with or adds value to another product. While decaf coffee and tea are alternative forms of beverages, and baked beans are a food item not typically associated with coffee, creamer stands out as the most appropriate complement. Creamer is specifically designed to be added to coffee to enhance its flavor, texture, and overall drinking experience. Therefore, out of the listed options, creamer is the most logical choice as a complement to coffee, fulfilling the role of making the coffee more enjoyable to drink for many people.
A group of friends are creating a new mobile paper shredding company that will go to businesses or organizations to shred their sensitive papers in bulk. You are advising them as to the type of business entity to choose. They have a number of partners, but their primary goals are to avoid personal liability and double taxation. They want to pay each of the partners based on their contribution to the success of the company, which is NOT equal to their percentage ownership. You advise them to accomplish this by forming a(n):
Answer: A Limited Liability Company (LLC)
Explanation:
A Limited Liability Company (LLC) is known to be a company whose members are not limited in number and not responsible for its debt, liabilities and losses individually. This company is characterized by tax advantage because the company cannot be taxed as a company but its members. Thus, double taxation is been avoided because the members pay individual’s income tax after the business profits have been shared between them.
An LLC would be the best business entity choice for the paper shredding company, providing limited liability and tax benefits while allowing customized partner pay structures.
Explanation:An LLC (Limited Liability Company) would be the most suitable business entity for the friends' paper shredding company. An LLC offers limited personal liability for the partners while avoiding double taxation.
With an LLC, the partners can structure their pay based on their contribution to the company's success, which doesn't have to align with their percentage ownership.
Shana continues to buy a necessary medicine even though prices for the medicine rise sharply. Shana's behavior shows howa. the passage of time affects elasticityb. the law of demand eliminates elasticityc. luxury goods are not subject to elasticityd. demand for necessities is inelastic
Answer:
The correct answer is d. Demand for necessities is inelastic.
Explanation:
The price elasticity of demand is measured by the percentual change in quantity of a good divided by the percentual change in the price of the same good. Mathematically:
ε = [tex]\frac{dQ/Q}{dP/P}[/tex]
Where ε represents the price elasticity of demand, Q represents the quantity demanded of a good, P represents the price of the good, dQ represents the variation of the quantity demanded of that good and dP represents the variation of the price of the good.
When the quantity of a good changes less than proportionally than the change in price of the good, it means that the elasticity is inelastic.
Mathematically:
[tex]\frac{dQ}{Q}[/tex] < [tex]\frac{dP}{P}[/tex] ⇒ ε < 1
We can conclude that even though the price of Shana's medicine rises sharply, the fact that she continues to buy it shows no variation in the quantity demanded, therefore the demand for necessities is inelastic.
Shana's behavior shows that the demand for necessities is inelastic. Even when prices rise, she continues to buy the necessary medicine because the demand for such important items is less sensitive to price changes. This is a common pattern seen in inelastic products where despite price increases, the demand remains relatively stable.
Explanation:Shana's behavior demonstrates that demand for necessities is inelastic. A necessity like medicine typically has a high degree of inelasticity, which means that the demand doesn't dramatically reduce, even as the price rises. This can be compared to other inelastic products such as cigarettes, where even a 10% price increase only leads to a 3% drop in demand.
In situations where demand is inelastic, producers can pass increased costs onto consumers, such as taxes or price hikes, because demand is less sensitive to price changes. Thus, despite the sharp rise in medicine prices, Shana continues to buy because it is a necessity.
The concept of price elasticity of demand is used in economic studies to understand how fluctuations in price affect consumer demand. In this scenario, Shana's behavior is akin to highly inelastic demands seen in life-saving drugs and gasoline where there are no close substitutes.
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Two processes can be used for producing a polymer that reduces friction loss in engines. Process K will have a first cost of $160,000, an operating cost of $7000 per quarter, and a salvage value of $40,000 after its 2-year life. Process L will have a first cost of $210,000, an operating cost of $5000 per quarter, and a $26,000 salvage value after its 4-year life. Which process should be selected on the basis of a present worth analysis at an interest rate of 8% per year, compounded quarterly?
Answer:
Process L will be selected because their NPV is better than Process K
Explanation:
Process K will have a year 0 investment of -$160,000.00
Then during 8 quarter a cost of 7,000 present value of -$51,278.37
Lastly, a salvage value of 40,000 at the end PV of $34,293.55
Net present value of Process K -$176.984,82
at 8% per year with quarterly compound
Process L will have a year 0 investment of -$210,000.00
Then during 16 quarter a cost of 5,000 PV of -$36,627.41
26000 salvage value at the end of the period: pv $19110.76
Net present value of Process L -$154.261,82
at 8% per year with quarterly compound
The gross domestic product (GDP) of the United States is defined as the________ all ________________________________ in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2015.
A) Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 27, 2015. Calculo imports the calculator into the United States on May 18, 2015.
The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2015.
B) Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 9, 2015. It sells the table to a college student on December 24.
C) Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2015. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2015. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.)
D) Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 14, 2015. It sells the hamburger to a customer that same day.
Answer:
The correct answers are B and D, as in both options the goods are produced in the United States. Although option B refers to a Swedish company, it doesn't matter were does the company comes from when referring to the GDP. Option C refers to a product that is not for final consumers.
The gross domestic product (GDP) of the United States is defined as the market value of all the goods and services produced for final demand in the territory of the United States in a given period of time.
Explanation:
In macroeconomics, the gross domestic product (GDP) is a macroeconomic magnitude that expresses the monetary value of the production of goods and services of final demand of a country or region during a given period, usually one year.
Answer:
B) Sofaland, a swedish fourniture company, produce corn syrup at a plant in lowa on September 25
As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $8000 Variable cost per occupied room per night $ 25 Revenue per occupied room per night $ 75 SHOW YOUR WORK TO RECEIVE CREDIT. a. Write the expression for total cost per month. Assume 30 days per month. b. Write the expression for total revenue per month. c. If there are 12 guest rooms available, can they break even? What percentage of rooms would need to be occupied, on average, to break even?
Answer:
(A)total cost = 8,000 + 25X
where X is the rooms occupied for the month
(B) revenue = 75X
where X is the rooms occupied for the month
(C)
Explanation:
(A) total cost = fixed cost + variable cost
so total cost = 8,000 + 25X
where X is the rooms occupied
(B) total revenue = total sales
so revenue = 75X
where X is the rooms occupied for the month
(C) Yes they can Break-Even with an average capacity of 44.44%
[tex]\frac{Fixed Cost}{Contribution Margin} = $Break Even Point[/tex]
BEP will be ammount of rooms occupied to cover the fixed cost for the project.
Contribution margin = revenue - variable cost
Contribution = 75 - 25 = 50
Now we solve for BEP
8,000/ 50 = 160
If there are 12 guest room they can have a capacity of 12 * 30 = 360 beds per month
BEP is at 160 so their occupied percentage during the month should be: 160/360 = .44444 = 44.44%
The expression for total cost per month is $8,000 × 30 + $25 × (number of occupied rooms per night) × 30. The expression for total revenue per month is $75 × (number of occupied rooms per night) × 30. To break even, the percentage of rooms that need to be occupied, on average, can be determined by solving an equation.
Explanation:a. The expression for total cost per month can be calculated by multiplying the fixed cost per month by 30 days and adding the variable cost per occupied room per night multiplied by the number of occupied rooms per night multiplied by 30 days.
Total fixed cost per month = $8,000 × 30 = $240,000Total variable cost per month = $25 × (number of occupied rooms per night) × 30Total cost per month = Total fixed cost per month + Total variable cost per monthb. The expression for total revenue per month can be calculated by multiplying the revenue per occupied room per night by the number of occupied rooms per night multiplied by 30 days.
Total revenue per month = $75 × (number of occupied rooms per night) × 30
c. To break even, the total revenue per month needs to equal the total cost per month. Let's assume x represents the percentage of rooms that need to be occupied.
Total revenue per month = Total cost per month
$75 × (0.01x × 12) × 30 = $240,000 + ($25 × (0.01x × 12) × 30)
By solving this equation, we can determine the value of x, which represents the percentage of rooms that need to be occupied, on average, to break even.
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Suppose the supply of I-Pods is QS = 10P, while the demand is QD = 3,000 - 5P. Which of following the statements is true? a. If the market price of an I-Pod is $220, there will be a shortage of I-Pods. b. If the market price of an I-Pod is $220, there will be a surplus of I-Pods. c. If the market price of an I-Pod is $200, there will be a shortage of I-Pods. d. If the market price of an I-Pod is $200, there will be a surplus of I-Pods.
Answer: If the market price of an I-Pod is $220, there will be a surplus of I-Pods.
Explanation:
Given :
[tex]Q_{S}[/tex] = 10×P
[tex]Q_{D}[/tex] = 3,000 - 5×P
The equilibrium will occur where supply is equal to demand
i.e. [tex]Q_{S}[/tex] = [tex]Q_{D}[/tex]
10P = 3000 - 5P
15P = 3000
P = $200
∴The equilibrium price is $200
Hence, If the market price of an I-Pod is $220, there will be a surplus of I-Pods
The correct statement is a. If the market price of an I-Pod is $220, there will be a shortage of I-Pods.
To determine whether there will be a shortage or a surplus of I-Pods at a given price, we need to compare the quantity supplied with the quantity demanded at that price.
First, let's find the quantity demanded (QD) and the quantity supplied (QS) at the market price of $220 using the given equations:
For the demand equation QD = 3,000 - 5P, we substitute P = $220:
QD = 3,000 - 5(220) = 3,000 - 1,100 = 1,900 I-Pods.
For the supply equation QS = 10P, we substitute P = $220:
QS = 10(220) = 2,200 I-Pods.
Now, we compare QD and QS at $220:
QD = 1,900 I-Pods (demanded),
QS = 2,200 I-Pods (supplied).
Since QD < QS at $220, there will be a surplus of I-Pods. The surplus is the excess of quantity supplied over quantity demanded, which is 2,200 - 1,900 = 300 I-Pods.
Next, let's check the market price of $200:
For the demand equation QD = 3,000 - 5P, we substitute P = $200:
QD = 3,000 - 5(200) = 3,000 - 1,000 = 2,000 I-Pods.
For the supply equation QS = 10P, we substitute P = $200:
QS = 10(200) = 2,000 I-Pods.
Now, we compare QD and QS at $200:
QD = 2,000 I-Pods (demanded),
QS = 2,000 I-Pods (supplied).
Since QD = QS at $200, the market for I-Pods is in equilibrium, and there will be neither a shortage nor a surplus of I-Pods.
Therefore, the only true statement among the options is that if the market price of an I-Pod is $220, there will be a shortage of I-Pods. However, this is contradictory to the calculation we performed, which showed a surplus at $220. Let's re-evaluate the calculations:
At $220:
QD = 3,000 - 5(220) = 3,000 - 1,100 = 1,900 I-Pods (demanded),
QS = 10(220) = 2,200 I-Pods (supplied).
Since QD < QS at $220, there will indeed be a surplus, not a shortage. This means that the initial conclusion was incorrect.
At $200:
QD = 3,000 - 5(200) = 3,000 - 1,000 = 2,000 I-Pods (demanded),
QS = 10(200) = 2,000 I-Pods (supplied).
At $200, QD = QS, so the market is in equilibrium.
The correct conclusion is that if the market price of an I-Pod is $220, there will be a surplus of I-Pods, which is not listed among the options. However, since we are to correct inaccuracies and provide the answer based on the given options, we must choose the best possible answer from the ones provided. Given that none of the options correctly describe the situation at $220, we must select the option that is closest to the truth, which is option b: If the market price of an I-Pod is $220, there will be a surplus of I-Pods. This is the closest approximation to the correct calculation, despite the initial incorrect conclusion.
The returns on the common stock of Maynard Cosmetic Specialties are quite cyclical. In a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. The probability of a recession is 35 percent while the probability of a boom is 10 percent. What is the standard deviation of the returns on this stock?
Answer: 12.51%
Explanation: Probability of normal = 100 - (35+10)=55%
Expected return = Respective return*Respective Probability
= (22*0.1)+(9*0.55)+(-14*0.35) = 2.25%
When
(a) Return = 22% , Probability = 0.1
[tex]\therefore Probability\times (Return-Expected Return)^2[/tex]
[tex]0.1\times(22-2.25)^2=39.006[/tex]
(b) Return = 9%, Probability = 0.55
[tex]\therefore Probability\times (Return-Expected Return)^2[/tex]
[tex]0.55\times(9-2.25)^2=25.05[/tex]
(b) Return = -14%, Probability = 0.35
[tex]\therefore Probability\times (Return-Expected Return)^2[/tex]
[tex]0.35\times(-14-2.25)^2=92.42[/tex]
Total=156.48%
[tex]Standard deviation= [Total Probability \times (Return-Expected Return)^{2}\div Total probability]^{1/2}[/tex]
Standard deviation = 12.51%
Activity-based costing (ABC) can eliminate cost distortions because ABC systems ________.A) establish a cause-and-effect relationship with the activities performedB) use single cost pool for all overhead costs, thereby enabling simplicityC) use a broad average to allocate all overhead costsD) never consider interactions between different departments in assigning support costs
Answer:
A) establish a cause-and-effect relationship with the activities performed
Explanation:
Activity-based costing (ABC) can eliminate cost distortions because ABC systems establish a cause-and-effect relationship with the activities performed.
Final answer:
Activity-based costing (ABC) reduces cost distortions by establishing a clear cause-and-effect relationship between activities and their associated costs, ensuring a more accurate allocation of overhead.
Explanation:
Activity-based costing (ABC) can eliminate cost distortions because ABC systems establish a cause-and-effect relationship with the activities performed. ABC helps an organization to accurately trace costs to products or services, by identifying the full cost of different activities. It allows for the allocation of indirect costs based on actual consumption rather than a broad average. ABC distinguishes between direct and indirect costs, and employs multiple cost pools to reflect the complexity of different activities, providing a more precise allocation of overhead costs. The allocation bases are tied closely to actual usage or drivers, such as the amount of time spent on a service, resulting in a fairer and more accurate distribution of costs.
Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations follow. Direct materials $ 20 per unit Direct labor $ 28 per unit Overhead costs Variable overhead $ 6 per unit Fixed overhead per year $ 160,000 per year Selling and administrative expenses Variable $ 18 per unit Fixed $ 200,000 per year Units produced and sold 20,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.
Answer:
1. Using Absorption Costing
Income Statement
Sales 20,000 X $216 = $4,320,000
Less: Cost of Goods Sold (Note 1) =($1,240,000)
Gross Margin = $3,080,000
Less: Operating Expenses
Selling and Administrative Expense = ($560,000)
(Note 2)
Net Income = $2,520,000
Note:
Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,0002. Using Variable Statement
Sales 20,000 X $216 = $4,320,000
Less: Variable Costs
Direct Material $20 X 20,000 = ($400,000)
Direct Labor $28 X 20,000 = ($560,000)
Variable Overhead $6 X 20,000 = ($120,000)
Variable Selling Expense $18 X 20,000 = ($360,000)
Contribution Margin = $2,880,000
Less: Fixed Costs
Fixed Overhead = ($160,000)
Fixed Selling & Administrative = ($200,000)
Net Income = $2,520,000
Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.
But Net income is same in both cases.
Sales revenue and total costs were calculated for both absorption costing and variable costing income statements. The absorption costing net income resulted in $2,560,000 whereas the variable costing net income resulted in $2,520,000.
Explanation:The absorption costing income statement includes all manufacturing costs, both variable and fixed, in the calculation of the cost of goods sold whereas the variable costing income statement only includes the variable manufacturing costs in the computation of the cost of goods sold.
Absorption Costing Income Statement Sales revenue = 20,000 units x $216 = $4,320,000. Total Costs = Direct materials + Direct labor + Variable overhead + Fixed overhead + Selling expenses = (20,000 units x $20) + (20,000 units x $28) + (20,000 units x $6) + $160,000 fixed overhead + (20,000 units x $18) + $200,000 fixed selling expenses = $1,760,000. Net Income = Sales revenue - Total Costs = $4,320,000 - $1,760,000 = $2,560,000.Variable Costing Income Statement: Total variable costs = Direct materials + Direct labor + Variable overhead + Variable Selling Expenses = (20,000 units x $20) + (20,000 units x $28) + (20,000 units x $6) + (20,000 units x $18) = $1,440,000. Contribution Margin = Sales revenue - Total variable costs = $4,320,000 - $1,440,000 = $2,880,000. Net Income = Contribution Margin - Total Fixed Costs (overhead and selling) = $2,880,000 - ($160,000 + $200,000) = $2,520,000.Learn more about Absorption and Variable Costing here:https://brainly.com/question/33126015
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You were recently promoted to the head of the machine shop. As you start to look around, you notice that there are many machines on the production floor, but there doesn't seem to be an efficient flow from one machine to another. Plus, the work in progress inventory is stacked up in front of many of the machines. You know that a lot of work in progress inventory is an indication of an inefficient process so you want to understand the movement of the material through the shop so that you can reduce the non-valued-added activities and reduce delay. What would be the best method to use? __________
The best method to understand the movement of material through the machine shop and reduce non-value-added activities and delays is to implement Lean Manufacturing principles.
Explanation:The best method to use in order to understand the movement of material through the machine shop and reduce non-value-added activities and delays is to implement Lean Manufacturing principles. Lean Manufacturing focuses on eliminating waste, improving flow, and maximizing value for the customer. By mapping the current state of the production process, identifying bottlenecks and non-value-added activities, and implementing strategies such as cell manufacturing, kanban systems, and continuous improvement, the machine shop can achieve a more efficient flow of material.
Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that you’ve seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Explain your answer.
Explanation:
First of all we need to know the concept of Oligopoly Market. An Oligopoly Market is a firm structure in which many firms are present in the same industry but only few or one or two firms dominate.
So I will take example of Khaadi, which is a brand in Pakistan in the textile industry. There are a lot of other textile companies in there but Khaadi contributes the highest share in the market. The reason that Khaadi fits into the Oligopoly Market structure is its market share and the differentiated products in terms of stitching and sewing. Hand made products of Khaadi gives it an edge.
There are many ads of Khaadi being on aired on the television and the print media. There are a lot of billboards and hoardings of models wearing Khaadi's brand.
The interdependence between Khaadi and other rival firms is, they have both stitched and unstitched variety of fabric, Price range for all the competing firms are almost same but Khaadi has always an edge of being the provider of hand made fabric.
Final answer:
Smartphones, such as those by Apple and Samsung, exemplify an oligopoly due to the control of market share by a few large firms, high barriers to entry, and interdependent pricing and output decisions. They engage in product differentiation and strategic marketing influenced by the actions of their competitors.
Explanation:
A product that demonstrates the oligopolistic market structure is a smartphone, such as those produced by Apple or Samsung. These companies operate in the oligopolistic industry of mobile devices, where a small number of large firms dominate the market share. This industry fits an oligopoly model because there are high barriers to entry, significant market power is concentrated among the few, and there's mutual interdependence in decision-making regarding pricing, output, and marketing strategies.
Oligopolies manifest product differentiation and non-price competition, as seen in the fierce marketing between Apple and Samsung. They use advertising to create distinct brand images and highlight unique features of their products. There can also be instances of price leadership where, for example, if one company introduces a pricing strategy, the other may follow to maintain competitive balance. In the realm of smartphones, this could manifest through similar pricing tiers for flagship models or matching prices for trade-in deals and promotions.
Within the industry, companies are aware of their rivals' actions, leading to strategic business decisions. For example, when Samsung releases a new smartphone with advanced features, Apple must consider this in its product development and marketing strategies. These actions demonstrate the industry's characteristic interdependence, as each firm's strategies are influenced by the others'.
If a security currently worth $12,800 will be worth $16,843.93 seven years in the future, what is the implied interest rate the investor will earn on the security—assuming that no additional deposits or withdrawals are made?
Answer:
The implied interest rate will be 4%
Explanation:
We need to check for the annual rate that generate the interest over the next seven years that makes $12,800 become $16,843.93:
[tex]principal * (1 + rate)^{7} = $future value[/tex]
We replace with our know values
12,800 x (1+rate)^7 = 16,843.93
16,843.93 /12,800 = (1+rate)^7
sq7 (16,843.93/12,800) - 1 = rate
And know we find out the unknow value
rate = 0,03999994 = 0.04 = 4%
First We need to check for the annual rate After that we generate the interest over the next 7 years that makes $12,800 it becomes $16,843.93:
Implied interest rate[tex]principal * (1 + rate)7 = future value[/tex]
Then We replace with our know values:
After that 12,800 x (1+rate)^7 = 16,843.93
Then 16,843.93 /12,800 = [tex](1+rate)^7[/tex]
Now sq7 (16,843.93/12,800) - 1 = rate
And also know we find out the unknow value that is
Then rate = 0,03999994 = 0.04 = 4%
Thus, The implied interest rate will be 4%
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Batista Company management wants to maintain a minimum monthly cash balance of $19,100. At the beginning of April, the cash balance is $22,700, expected cash receipts for April are $245,800, and cash disbursements are expected to be $257,700. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance? Amount to be borrowed to maintain the desired minimum monthly balance
Answer:
The cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question) and the borrowed amount to maintain the desired minimum monthly balance is $9,000.
Explanation:
The steps for computing the borrowed amount to maintain the desired minimum monthly balance is shown below:
Step 1 : Write Beginning Cash balance
Step 2 : Add Cash receipts
Step 3 : Less Cash disbursements
Step 4 : After cash disbursements is calculated
Step 5: Write minimum monthly cash balance
Step 6: Now, deduct Step 4 amount by Step 5 amount to calculate borrowed amount.
So,
After Cash disbursement = Beginning Cash balance + Cash receipts - Cash disbursements
= $22,700 + $245,800 - $257,700
= $10,800
The cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question)
And, the borrowed amount to maintain the desired minimum monthly balance = Monthly cash balance - After cash disbursements
= $19,100 - $10,800
= $9,000
Thus, the cash, if any, must be borrowed to maintain the desired minimum monthly balance is $19,100 (given in the question) and the borrowed amount to maintain the desired minimum monthly balance is $9,000.
Peeler's Smoothie Company has provided the following information: Sales price per unit $6.50 Variable cost per unit $2.00 Fixed costs per month $1,500 Calculate the contribution margin ratio. (Round your answer to two decimal places.)
The contribution margin ratio for Peeler's Smoothie Company is 0.69 or 69%, which means that for each dollar of sales, 69 cents contribute to covering fixed costs and profit.
Explanation:The contribution margin ratio is calculated as the difference between the selling price per unit and the variable cost per unit, divided by the selling price per unit. For Peeler's Smoothie Company, the contribution margin per unit is $6.50 (sales price per unit) - $2.00 (variable cost per unit) = $4.50. To find the contribution margin ratio, we divide the contribution margin per unit by the sales price per unit:
Contribution Margin Ratio = ($4.50 ÷ $6.50) = 0.6923
Rounded to two decimal places, the contribution margin ratio is 0.69 or 69%. This means that for each dollar of sales, the company contributes 69 cents to cover its fixed costs and profit.
At Children's Hospital in Denver, good attendance is encouraged by recognizing staff members who have not missed work in the previous three months. At three-month intervals, at staff meetings, the names of those who have not missed work that quarter are announced. These employees are given ribbons of excellence, perfect attendance pins, prizes, tote bags, alarm clocks, gift certificates or movie tickets. As an added incentive, the person with the longest record of perfect attendance is allowed to choose first from the list of "gifts." This is an example of how ________ are used in association with the _________ theory. A. Rewards; Reinforcement B. Instruments; Expectancy C. Satisfiers; Equity D. Objectives; Goal-setting E. Hygiene factors; Herzberg's
Answer:
his is an example of how rewards are used in association with the reinforcement theory
Explanation:
The reinforcement theory is the process of adjust the behavior of a person or a group by giving them a punishment or a reward for a specific decision or action according to the desired results.
In this case, the employees are recognized by their good behavior when they avoid missing days for a three months period. They receive a visible recognition and some gifts; these rewards show a positive reinforcement according to the reinforcement theory
The Children's Hospital in Denver's recognition program for staff with perfect attendance aligns with Reinforcement theory as it uses rewards to positively reinforce the desired behavior.
Explanation:The Children's Hospital in Denver's strategy of recognizing and rewarding staff members who have perfect attendance is an example of the use of rewards in association with Reinforcement theory. This motivational strategy is designed to increase the likelihood of the desired behavior - good attendance - by providing positive reinforcement. The hospital acknowledges employees with various prizes and the opportunity to choose from these rewards, with the individual who has the longest record of perfect attendance getting the privilege to select first. This technique aligns with the principles of reinforcement theory which suggests that behavior followed by positive consequences is likely to be repeated.
Smarton Company is in the process of preparing its budgeted income statement. It has determined its estimated gross margin to be $90,000. The company also expects to incur selling and administrative expenses of $30,000 and interest expense of $12,000. What would be Smarton's budgeted net income? A) $48,000 B) $60,000 C) $30,000 D) $18,000
Answer:
A) $48,000
Explanation:
[tex]$$$Gross Margin$$$- S&A expenses$$$Equals to Operative Income[/tex]
Then:
[tex]$$$Operative Income $$$- Interest Expense$$$Net Income[/tex]
Assuming there is no tax rate
[tex]90,000 - 30,000 - 12,000 = 48,000[/tex]
48,000 would be the net income
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company�s discount rate is 17%. After careful study, Oakmont estimated the following costs and revenues for the new product:
Cost of equipment needed $ 275,000
Working capital needed $ 86,000
Overhaul of the equipment in two years $ 10,000
Salvage value of the equipment in four years $ 13,000
Annual revenues and costs:
Sales revenues $ 420,000
Variable expenses $ 205,000
Fixed out-of-pocket operating costs $ 87,000
When the project concludes in four years the working capital will be released for investment elsewhere within the company.
Calculate the net present value of this investment opportunity.
Answer:
NPV = 35,660.291
Explanation:
NPV = PV of cash flow + PV at project end - investment - overhaul
.17 discount rate
275,000
86,000
Investment 361,000
420,000
-205,000
-87,000
128,000 net cash flow
PV of cash flow
[tex]C * \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
[tex]128,000 \times \frac{1-(1.17)^{-4} }{0.17} = PV\\[/tex]
PV = 351,134.081
overhaul
-10,000 overhaul in year 2
[tex]\frac{Nominal}{(1 + rate)^{time} } = PV[/tex]
[tex]\frac{-10,000}{(1.17)^{2} } = PV[/tex]
PV -7305.14
At end of project
+86,000 working capital
+13,000 salvage value
99,000 at project end
PV at project end
[tex]\frac{Nominal}{(1 + rate)^{time} } = PV[/tex]
[tex]\frac{99,000}{(1.17)^{4} } = PV[/tex]
PV = 52831.35
NPV = PV of cash flow + PV at project end - investment - overhaul
NPV = 351,134.081 + 52831.35 - 361,000 -7305.14
NPV = 35,660.291
The Net Present Value (NPV) of the Oakmont Company to manufacture and sell a product for four years period will be around $35,660 for such an investment opportunity.
How to calculate Net Present Value?From the given information, we can assume that;
Total investment is computed as $361,000
The Present Value of Net Cash Flow at $128,000 will be computed as,
[tex]\rm PV\ of\ Cash\ Flow= C[\dfrac {1-(1+r)^t}{Discount\ Rate}] \\\\\rm PV\ of\ Cash\ Flow=128000[\dfrac{1-(1.17)^-^4}{0.17}]\\\\\rm PV\ of\ Cash\ Flow= \$35134[/tex]
Now, the overhaul will be computed as -7,305
Finally, Present Value at project-end;
[tex]\rm Present\ Value\ at\ Project-end = \dfrac{Nominal\ Value}{(1+rate)^t}\\\\\rm Present\ Value\ at\ Project-end = \dfrac{99000}{1.17^4}\\\\\rm Present\ Value\ at\ Project-end = \$52831[/tex]
Now the Net Present Value for the firm will be computed using the computed values, by applying them in the given formula;
[tex]\rm Net\ Present\ Value = PV\ of\ Cash\ Flow + PV\ at\ Project End - Investment - Overhaul\\\\\rm Net\ Present\ Value = 351134+52831-361000-7305\\\\\rm Net\ Present\ Value = \$35660[/tex]
Hence, the net present value for the firm for such investment opportunity over a period of four years will be $35,660.
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In an economy with a population of 100 million persons, 40 million hold civilian jobs and 9 million are not working but are looking for a job. The number of persons in the civilian labor force is_______
Answer:
49 million people are the civilian labor force.
Explanation:
In order to solve this you just have to remember that the civilian labor force is the number of people that are currently working, or actively looking for a job in the last 4 weeks, which are the unemployed, this does not count for the retired people, students or people that are not actively looking for a job, this means that 40 million of people working plus the 9 million of people actively looking for a job, the civilian labor force will be 49 million people.
Castillo Corporation has provided you with the following budgeted income statement for one of its products:
Sales revenue $ 700,000
Variable costs (430,000)
Contribution margin $ 270,000
Fixed costs (310,000)
Operating loss $(40,000)
Castillo has just encountered environmental problems with the product and will be forced to drop the product line altogether. Castillo will be able to eliminate 60% of the fixed costs. What will be the impact on operating income of the company
Final answer:
Discontinuing the product line will improve Castillo Corporation's operating income by $146,000, accounting for the 60% reduction in fixed costs, changing an initial operating loss to a gain.
Explanation:
The impact on Castillo Corporation's operating income following the discontinuation of the product line with environmental issues can be calculated by considering the elimination of 60% of the fixed costs on the operating loss. Initially, the company has an operating loss of $40,000. Since the company can eliminate 60% of its fixed costs of $310,000, the total fixed costs reduction would be:
0.60 x $310,000 = $186,000.
By eliminating $186,000 of the fixed costs, the new operating loss will decrease by that amount, resulting in:
Initial operating loss: $(40,000)
Reduction in fixed costs: $186,000
New operating loss: $(40,000) + $186,000 = $146,000 gain in operating income.
Hence, discontinuing the product line will improve Castillo Corporation's operating income by $146,000, transitioning from a loss to a gain.
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $37,000 and variable expenses of $9,250. Product Y45E had sales of $29,700 and variable expenses of $16,335. The fixed expenses of the entire company were $22,000. 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:
Answer:
The BEP will decrease, which is good.
The reason is that C90B has a better profit margin than Y45E so if the sales shift toward C90B the Contribution mix margin ratio will be higher and it will be easy to pay fixed cost and make a gain
Explanation:
C90B
sales 37,000
variable expenses 9,250
contribution margin 27,750
CM 0.75
Y45E
sales 29,700
variable expenses 16,335
contribution 13,365
CM 0.45
To calculate the overall break-even point for the entire company, consider the sales mix and the contribution margin of each product. Adjust the calculation based on the change in sales mix towards Product C90B.
Explanation:The break-even point is the point at which total revenue equals total costs and there is neither profit nor loss. To calculate the overall break-even point for the entire company, we need to consider the sales mix and the contribution margin of each product. The contribution margin is the difference between sales revenue and variable expenses.
We can use the following formula to calculate the overall break-even point:
Break-even point = Fixed expenses / Weighted average contribution margin
In this case, the weighted average contribution margin is determined by the sales mix. Since the total dollar sales remain constant, a shift in the sales mix towards Product C90B means the sales of Product Y45E will decrease proportionately. By calculating the contribution margin for each product and adjusting for the change in sales mix, we can determine the new overall break-even point for the entire company.
If potential GDP is equal to $600 billion, what does the long-run aggregate supply curve look like?A) It is a horizontal line at $600 billion of GDP.B) It is a vertical line at a level of GDP below $600 billion.C) It is a vertical line at $600 billion of GDP.D) It is a vertical line at a level of GDP above $600 billion.
Answer:
C) It is a vertical line at $600 billion of GDP
Explanation:
Aggregate supply is the total value of goods and services that companies established in a country are willing to produce and sell for each price level over a given period of time. It is therefore the sum of the supply curves of each firm.
Potential GDP, in turn, is the value of all final goods and services produced by an economy over a given period of time when all factors of production (capital and labor) are being tapped. It is the maximum production point of an economy. In this example, the potential GDP is 600 billion.
In the long run, an increase in the general price level does not affect aggregate production. Thus the aggregate supply curve of an economy represents the sum of all supply in a situation in which all factors of production are employed. This makes the vertical aggregate supply curve at 600 billion.
Which of the following is characteristic of members from high-performing teams?
A. They view conflict as unhealthy and counterproductive.
B. They approach work with a judgmental mind-set.
C. They openly discuss the set of values, norms, and goals they share.
D. They make fewer work-related and supportive statements than other groups.
E. They meet infrequently, preferring to work as individual units.
Answer: option C
Explanation:
option A= high performing team members view conflict as an opportunity for new ideas they openly discuss conflicts and resolve them maturely.
option B = for high performance members need to have an open mind.
option D = open communication for work related and supportive statement is important.
option E = frequent meetings with each other and team work spirit are essentials of high performance.
thus option C is the right answer.
Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.70 per MH. The company had budgeted its fixed manufacturing overhead cost at $69,000 for the month. During the month, the actual total variable manufacturing overhead was $66,710 and the actual total fixed manufacturing overhead was $74,000. The actual level of activity for the period was 6,400 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?
The total of the fixed manufacturing overhead budget variance and variable overhead rate variance for Bartoletti Fabrication Corporation is -$9,630, indicating unfavorable variances in both categories.
Understanding Variance Analysis
In the context of Bartoletti Fabrication Corporation, variance analysis involves comparing the standard costs to actual costs and calculating the differences or variances. These variances can be categorized into fixed manufacturing overhead budget variance and variable overhead rate variance. To compute these:
The fixed overhead budget variance is the difference between the budgeted fixed overhead and the actual fixed overhead. In this case: $69,000 (budgeted) - $74,000 (actual) = -$5,000 (unfavorable).
The variable overhead rate variance is calculated by comparing the standard cost allocated using machine hours to the actual variable overhead costs. The standard variable overhead cost would be the actual machine hours (6,400 MHs) times the standard rate ($9.70 per MH), which equals $62,080. So the variance is: $62,080 (standard) - $66,710 (actual) = -$4,630 (unfavorable).
The total of the fixed overhead budget variance and variable overhead rate variance is: -$5,000 (fixed) - $4,630 (variable) = -$9,630 (total variance).
The total of the variable overhead rate and fixed manufacturing overhead budget variances can be calculated by determining the variable overhead rate variance and the fixed manufacturing overhead budget variance.
Total variable overhead rate is calculated by dividing the actual variable manufacturing overhead by the actual machine-hours. This gives $66,710 / 6,400 MHs = $10.42 per MH. The variable overhead rate variance can be calculated as ($10.42 - $9.70) x 6,400 MHs = $465.60 favorable. The fixed manufacturing overhead budget variance is calculated as the difference between the actual fixed cost and the budgeted fixed cost, resulting in $74,000 - $69,000 = $5,000 unfavorable.
Oprah just inherited a house with a market value of $100 comma 000, and she does not expect the market value to change. Each year, she will pay $750 for utilities and $5 comma 000 in taxes. She can earn 4 percent interest on money in a bank account. Her cost of living in the house for the year is $
Answer:
9,750 Cost of living per year
Explanation:
100,000
750 utilities
5,000 taxes
100,000 x 0.04 = 4,000 Opportunity cost
9,750 Cost of living per year
We have to include the interest yiled, becuse if she decides to leave, it will sale and receive that cash on interest.
This is an opportunity cost.
The cost of living in the house for the year is $9,750.
Explanation:The cost of living in the house for the year can be calculated as the sum of the utilities and taxes paid plus the opportunity cost of the interest that could have been earned on the money spent on the house. Here's the calculation:
Cost of living = Utilities + Taxes + Opportunity cost of interest
= $750 + $5,000 + (0.04 * $100,000)
= $750 + $5,000 + $4,000
= $9,750
Therefore, Oprah's cost of living in the house for the year is $9,750.
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Crystal Corporation produces a single product. The company's variable costing income statement for the month of May appears below: Crystal Corporation Income Statement For the month ended May 31 Sales ($22 per unit) $3,850,000 Variable expenses: Variable cost of goods sold 2,450,000 Variable selling expense 350,000 Total variable expenses 2,800,000 Contribution margin 1,050,000 Fixed expenses: Fixed manufacturing overhead 650,000 Fixed selling and administrative 175,000 Total fixed expenses 825,000 Net operating income $225,000 The company produced 130,000 units in May and the beginning inventory consisted of 90,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. Under absorption costing, for May the company would report a
Answer:
Sales 3,850,000.00
Variable 3,325,000.00 (175,000 x 19)
Gross Profit 525,000.00
S&A 525,000.00
Net Income -
Explanation:
Under aborption cost, the company will include the fixed cost as part of the unit cost.
3850000 / 22 = 175,000 sold units
Variable cost 2,450,000 / 175,000 = 14
650,000 fixed will be distribute among the 130,000 units produced
650,000/130,000 = 5
Absorption cost
14 + 5 = 19
Selling and administrative will be placed as expenses.
your friend has $5,000 and asked for your recommendation about placing her money in a financial institution. Based on what you learned in this module, what factors would you ask her about before making your recommendation? Which type of financial institution and type of account might you suggest?
Explanation:
If my friend wants to invest her $5000 and asks recommendations from me, then the main question i ask from her would be how much risk she is ready to take. There are different investment opportunities depending upon the level of risk a person is willing to take. If my friend would like to go safe and doesn't need any risk in her investment, then i would recommend her to buy Treasury Bills for long term investment. There would be no risk involved. Secondly i may ask her to put her money in the saving account to enjoy interest money while keeping the principal amount safe. Thirdly i may ask her to invest in real estate for long term. Again the risk would be minimal. But if she wants to take risks, i would ask her to invest in the short term stocks and keep an eye on the movement of the stocks to get profit. Secondly i may ask her to invest in the foreign exchange market, in currencies or in commodities to get benefits on the rule of high risk high return.
So these are some recommendations for her on the basis of the risk she wants to take.
The following information is available for Payton Incorporated. At the end of the year, the market price of its common stock is $550 per share. Earnings per share totaled $100 and dividends per share in the amount of $15 were paid during the year. The dividend yield is:
Answer:
Dividends yield 2.72%
Explanation:
dividends yield formula:
[tex]\frac{annual\: dividends}{share \:price} \times 100 = dividends\: yield[/tex]
dividends 15
market price 550
The earning per share are not relevant for calculation.
15/550 = 0.027272727
Dividend yield 2.72%
This means that if an investor purchase the share at current price and the dividends remains at the same value, his investment will yield 2.72% per year
To calculate the price per share of stock in Babble, Inc., we need to determine the present value of the expected future profits and dividends. Using a 15% interest rate, we can calculate the present value of each year's profit and add them together. Next, we sum up the present values of the profits and divide it by the number of shares (200) to get the price per share. In this case, the price per share would be approximately $72,857.
Explanation:To calculate the price per share of stock in Babble, Inc., we need to determine the present value of the expected future profits and dividends. Using a 15% interest rate, we can calculate the present value of each year's profit and add them together. In this case, the present value of $15 million, $20 million, and $25 million is $5.59 million, $4.81 million, and $4.17 million, respectively.
Next, we sum up the present values of the profits and divide it by the number of shares (200) to get the price per share. In this case, the sum is $14.57 million, so the price per share would be approximately $72,857.