Answer:
Absolutely Not, recommend that the office manager invest more time monitoring the productivity of her clerical staff.
Explanation:
As clerical staff know the timings of monitoring. So, at that time they just show her that they are doing their work with dedication. But just after her monitoring, they known that she will not come before 2 hours. So, basically this is the actual problem in this case. Despite the four times monitoring each day, it does not result in higher productivity, instead productivity has declined 30 percent since she assumed the helm one year ago.
The best way to overcome this problem, office manager should not fix their time of monitoring. So that, clerical staff does not know the time when she come for monitoring. This will lead to improvement in the productivity level.
Joann finances her purchase of a $250,000 house with a 7/23 balloon payment mortgage. She pays 30 percent down on her home, and finances the 2% closing costs with the same loan (i.e., add the closing costs to the loan amount). The initial interest rate on this 7/23 mortgage is 4.2 percent. After the initial period, the renewed interest rate is 5.6% for the remaining life of the mortgage loan. Calculate (a) the monthly payment and (b) the interest portion of the first monthly payment, after the 7/23 mortgage loan is renewed.
Answer:
(a) $880.23 and (b) $1526.84
Explanation:
Please see attachment .
Fixed costs are irrelevant in the decision about whether to shut down production in the short run because fixed costs:
A. do not affect, and are not affected by, the quantity the firm produces
B. only charge when production changes
C. only change in the short run
D. affect, and are affected by, the quantity the firm produces
Answer:
A. do not affect, and are not affected by, the quantity the firm produces
Explanation:
In a short run shutdown, regardless of the production of volume or if there is any production at all, fixed costs still have to be paid in full and therefore are irrelevant in the decision about whether to shut down production in the short run.
Thus, the answer is A. do not affect, and are not affected by, the quantity the firm produces.
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $4.6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.9 million. The company wants to build its new manufacturing plant on this land; the plant will cost $12.1 million to build, and the site requires $730,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
Answer:
$17,730,000
Explanation:
The computation of the proper cash flow amount is shown below:
= Land sale value + new manufacturing plant on this land + grading cost before it is suitable for construction
= $4,900,000 + $12,100,000 + $730,000
= $17,730,000
We simply added the land sale value, new manufacturing plant on this land, and the grading cost before it is suitable for construction so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
Farmer Corp. owned 20,000 shares of Eaton Corp. purchased in 2009 for $300,000. On December 15, 2012, Farmer declared a property dividend of all of its Eaton Corp. shares on the basis of one share of Eaton for every 10 shares of Farmer common stock held by its stockholders. The property dividend was distributed on January 15, 2013. On the declaration date, the aggregate market price of the Eaton shares held by Farmer was $500,000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of
Answer:
Debited to Retained Earnings of $500,000.
Explanation:
At the time of declaration of the dividend, the journal entry is recorded which is shown below:
Retained earning A/c Dr $500,000
To Dividend payable A/c $500,000
(Being cash dividend declared)
On the declaration date, the dividend amount is recorded. So while recording we debited the retained earning account and credited the dividend payable account
All other information which is given is not relevant. Hence, ignored it
The Dell Corporation borrowed $ 10,000,000 at 5% interest per year, which must be repaid in equal EOY amounts (including both interest and principal) over the next seven years. How much must Dell repay at the end of each year? How much of the total amount repaid is interest?
Answer:
- Dell must repay $1,728,198.18 at the end of each year.
- $2,097,387.29 out of the total repaid amount is interest expense.
Explanation:
- EOY equal repayment calculation:
We apply the present value formula for annuity to calculate the equal repayment amount Dell needs to make in the next 7 years.
Denote C is equal repayment, PV is present value of the loan which is $10 million, i is interest rate which is 5%, n is the number of repayments which is 7.
We have: C = (PV x i) / [ 1 - (1+i)^-n] => C = (10,000,000 x 5%) / ( 1 -1.05^(-7)) = $1,728,198.18.
- Interest expense calculation:
Total repayment made: 1,728,198.18 x 7 = $12,097,387.29.
Total interest expense = Total repayment made - principal amount = 12,097,387.29 - 10,000,000 = $2,097,387.29
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses straight-line depreciation. Calculate its book value at the end of year 3What is the Book Value?A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of 20,000 machine hours. The company uses units-of-production depreciation and ran the machine 3,000 hours in year 1, 8,000 hours in year 2, and 6,000 hours in year 3.Calculate its book value at the end of year 3.A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses double-declining-balance depreciation.Calculate its book value at the end of year 3.
Answer: $130,000
$205,600
$50,000
Explanation:
Depreciation expense using the straight line depreciation method = (Original cost of asset - Salvage value) / useful life
Depreciation expense = ( $400,000 - $40,000) / 4 = $90,000
Net book value for year 1 =$400,000 - $90,000 = $310,000
Net book value for year two = $310,000 - $90,000 = $220,000
Net book value for year 3 = $220,000 - $90,000 = $130,000
Deprecation expense using the unit of production method = [ (Original cost of asset - Salvage value) / total estimated productive capacity] × actual productive use of asset
($400,000 - $40,000) / 20,000 = $18
Depreciation expense for year 1 = $18 × 3000 =$54,000
Net book value for year 1 = $400,000 - $54,000 = $346,000
Depreciation expense for year 2 = $18 × 1800 = $32,400
Net book value for year two = $346,000 - $32,400 = $313,600
Depreciation expense for year 3 = $18 × 6000 = $108,000
Net book value for year three = $313,600 - $108,000 = $205,600
In the double declining method = 2 × (1/number of years ) =2 × (1÷4) = 0.5
Deprecation expense using the double declining method = 0.5 × net book value
Depreciation expense for year 1 = 0.5 × $400,000=$200,000
Net book value for year 1 = $400,000 -$200,000=$200,000
Depreciation expense for year two = $200,000 × 0.5 = $100,000
Net book value for year two = $200,000 - $100,000 = $100,000
Depreciation expense for year 3 = $100,000 × 0.5 =$50,000
Net book value for year three = $100,000 - $50,000 = $50,000
The book value at the end of year 3 using straight-line depreciation is $130,000. Using units-of-production depreciation, it's $94,000, and using double-declining-balance depreciation, it's $50,000.
To calculate the book value of the machine at the end of year 3, we'll address each depreciation method separately.
Straight-Line Depreciation
A machine costs $400,000 with an estimated residual value of $40,000 and an estimated useful life of four years. The annual depreciation expense using the straight-line method is:
Annual Depreciation Expense = (Cost - Residual Value) / Useful Life
Annual Depreciation Expense = ($400,000 - $40,000) / 4 = $90,000
After three years, the total depreciation is:
Total Depreciation = Annual Depreciation Expense * Number of Years
Total Depreciation = $90,000 * 3 = $270,000
The book value at the end of year 3 is:
Book Value = Cost - Total Depreciation
Book Value = $400,000 - $270,000 = $130,000
Units-of-Production Depreciation
A machine costs $400,000 with an estimated residual value of $40,000 and an estimated useful life of 20,000 machine hours. The company uses units-of-production depreciation and ran the machine 3,000 hours in year 1, 8,000 hours in year 2, and 6,000 hours in year 3. The depreciation expense per machine hour is:
Depreciation Expense per Hour = (Cost - Residual Value) / Total Estimated Hours
Depreciation Expense per Hour = ($400,000 - $40,000) / 20,000 = $18
Total hours used in three years is 3,000 + 8,000 + 6,000 = 17,000 hours. The accumulated depreciation is:
Accumulated Depreciation = Depreciation Expense per Hour * Total Hours
Accumulated Depreciation = $18 * 17,000 = $306,000
The book value at the end of year 3 is:
Book Value = Cost - Accumulated Depreciation
Book Value = $400,000 - $306,000 = $94,000
Double-Declining-Balance Depreciation
A machine costs $400,000 with an estimated residual value of $40,000 and an estimated useful life of four years. The depreciation rate for the double-declining-balance method is:
Depreciation Rate = 2 / Useful Life
Depreciation Rate = 2 / 4 = 50%
Year-by-year depreciation calculations:
Year 1: Depreciation = $400,000 * 50% = $200,000; Year-end Book Value = $400,000 - $200,000 = $200,000
Year 2: Depreciation = $200,000 * 50% = $100,000; Year-end Book Value = $200,000 - $100,000 = $100,000
Year 3: Depreciation = $100,000 * 50% = $50,000; Year-end Book Value = $100,000 - $50,000 = $50,000
The book value at the end of year 3 is $50,000.
. Assume that the dollar-Euro exchange rate (E$/€) = 1.1, the U.S. interest rate is 4% and the Euro interest rate is 1%, and that covered interest parity holds. a. How many Euros will an American investor with $1,000 have a year from now? b. What is the forward exchange rate (F$/€) ?
Answer:
1) €918
2) E$/€)= 1.13
Explanation:
1) the dollar-Euro exchange rate (E$/€) if 1.1 means that from one Euro you can buy 1.1 dollars. So if an American investor invests $1,000 today in Euros he will get 1000/1.1= 909.09 Euros. Then if he invests 909.09 euros at an interest rate of 1% he will have (909.09*1.01)=918 euros.
The formula for forward exchange rate is
FWD= Spot price *(1+Interest rate of variable currency *Days/Annual Base)/(1+interest rate of base currency *days/annual base)
In this case the spot price is 1.1, the euro is the base currency and the dollar is the variable currency. The annual base is 365 and the days are also 365 since the we to find 1 year forward rate so days/annual base is 1.
FWD= 1.1*(1.04*1)/(1.01*1)= 1.13
This means that in a one year forward one Euro will cost $1.13
Workplace conflict has increased in the world today because:
Select one:
a.
the workplace is dominated by people whose behavioral styles are compatible.
b.
workers tend to share similar experiences and expectations.
c.
workers have less decision-making latitude.
d.
the workplace has flatter chains of command.
Answer:
The correct answer is letter "C": workers have less decision-making latitude.
Explanation:
Nowadays, most of the decision making is given to high executives. Companies assign that labor to them because it is believed that their level of specialization will allow them to make better decisions. Though, most workers are set aside by doing this generating conflict among organizations since employees' goals are not being taken into consideration.
Final answer:
Workplace conflict has increased due to changes in organizational structures, such as flatter chains of command, which can lead to increased potential for conflict as individuals navigate the dynamics of collaborative work within diverse teams.
Explanation:
The increase in workplace conflict in the world today may be attributed to several underlying factors. Modern work environments often involve flat organizational structures, a shift in management styles towards more collaborative and less hierarchical systems, and the integration of diverse work teams. These changes have led to a decrease in decision-making latitude as individuals adapt to group-based approaches which demand consensus and collective agreement. Furthermore, with the advent of the information age and the increasing demand for employees to engage in more thinking and decision-making tasks, the potential for friction increases when individual autonomy clashes with the necessity for teamwork.
As organizations opt for flatter chains of command, employees are expected to form collegial relationships not only with their co-workers but also with their managers, altering the traditional dynamics and potentially increasing the likelihood of conflict. Nonetheless, while conflict can indicate issues within a team or organization, it also offers opportunities for growth, learning, and innovation if handled constructively. Thus, the correct answer to the question would be option d: the workplace has flatter chains of command.
In each of the following pairs of bonds, select the bond that has the highest duration or effective duration: a. Bond A is a 6% coupon bond, with a 20-year time to maturity selling at par value. Bond B is a 6% coupon bond, with a 20-year time to maturity selling below par value.
Answer:
Please see attachment .
Explanation:
Please see attachment .
A firm must decide whether to make a compo- nent part in-house or to contract it out to an in- dependent supplier.
Manufacturing the part requires a nonrecoverable investment in special- ized assets.
The most efficient suppliers are lo- cated in countries with currencies that many foreign exchange analysts expect to appreciate substantially over the next decade.
What are the pros and cons of (a) manufacturing the compo- nent in-house and (b) outsourcing manufacturing to an independent supplier?
Which option would you recommend? Why?
Answer: Manufacturing in-house gives a guarantee of supply, improved skills in manufacturing and ensures continuity of business.
In house manufacturing may not be comparatively cost effective as there may be other firms who can produce cheaper and may require additional unrecoverable capital expenditure which may be back breaking to the firm.
Outsourcing manufacturing may be cheaper and equally save the company sunk cost in experimentation procedures towards producing a new product.
However outsourcing manufacturing may not guarantee continuous supply due difficulty or competition from the company taken up the outsource contract and firm losses opportunity to diversify into new products which may be beneficial on the long run.
In house manufacturing is a better option for it guarantee continuous supply, it provides shield from shocks of international trade obstacles like currency devaluation or political instability, it provides additional skills and products for diversification, increase turnover and finally continuous existence.
While ________ seems to be a reasonable measure of risk when evaluating a large portfolio, the
________ of an individual security does not explain the size of its average return.
A) volatility, volatility
B) the mean return, standard deviation
C) mode, volatility
D) mode, mean return
Answer:
A) volatility, volatility
Explanation:
Volatility refers to the change in returns as measured with the standard deviation with change in trading price series.
When we evaluate a large portfolio with various kinds of securities and investment, the volatility helps the best to access the risk factor present in it.
Whereas the risk can not be measured through the volatility of an individual security, as there will not be major effect of change in prices, on other securities.
As the volatility factor is in correspondence of other factors, as well.
Another bank is also offering favorable terms, so Rahul decides to take a loan of $18,000 from this bank. He signs the loan contract at 10% compounded daily for three months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.)
Answer:
The total amount that Rahul owes the bank at the end of the loan's term is $18,455.61
Explanation:
Hi, in order to find the total amount that Rahul will owe the bank in 3 months, we need to use the following formula (this is for a compounded daily rate).
[tex]FutureValue=PresentValue(1+\frac{r}{365} )^{\frac{n*365}{12} }[/tex]
Where:
r = compounded rate (in our case, 10% compounded daily)
n = time in months of the loan
PresentValue = $18,000
Everything should look like this.
[tex]FutureValue=18,000(1+\frac{0.10}{365} )^{\frac{3*365}{12} }[/tex]
[tex]FutureValue=18,000(1+0.000273973 )^{91.25 }=18,455.61[/tex]
So, the total amount that Rahul owes the bank at the end of the loan's term is $18,455.61
Best of luck
Which of the following statement is incorrect concerning standard costing and/or variance calculations? A. Price (rate) standards represent the expected cost per unit of input. B. Standards are used at the beginning of the period during to budget and at the end of the period to evaluate performance. C. Variances falling outside of an acceptable range of outcomes do not require investigation. D. A price (rate) variance calculates the difference between what a company paid and what it expected to pay for its production input. E. A favorable quantity (efficiency) variance indicates that a company used less input than allowed for the actual level of output.
Answer:
C. Variances falling outside of an acceptable range of outcomes do not require investigation.
Explanation:
The purpose of any business is to generate profit which is the difference between the revenues and all cost related to business.
In order to define suitable selling price and acceptable cost, all figures are to be set in standard range; any variance outside the standard, even lower or higher, must be investigated then the company can make proper adjustments.
In the end, the right standard is not only achievable but also maximize for the profit set.
So while other statements are true about standard and variance, the statement (C) is totally wrong because it said “Variances falling outside of an acceptable range of outcomes do not require investigation”
Wen, a consumer researcher, is conducting a research on the buying behavior of the Hispanics. As part of her study, she calculates a consumer’s buying power by relating it to the consumer’s income. The consumer attributes that Wen employs in her research can best be described as _____?
Answer:
demographics.
Explanation:
Demographic attributes refer to the particular characteristics common to a particular regional population. In a demographic survey factors such as gender, race, age and income are analyzed.
Demographic data help to understand peculiar characteristics of a given population, through the data it is possible to understand if the individual characteristics of a participant are relevant to configure as a representative sample of the population, in order to assist in the generalization and development of policies and research. Market
During the next three months, Shoemaker, Inc. must meet the following demands for shoes:
month 1, 1000 pairs; month 2, 1500 pairs; month 3, 1800 pairs. It takes 1 hour of labor to produce a pair of shoes. During each of the next three months, the following number of regular-time labor hours are available: month 1, 1000 hours, month 2, 1200 hours, month 3, 1200 hours. Each month, the company can require workers to put in up to 400 hours of overtime. Workers are paid only for the hours they work, and a worker receives $4 per hour for regular-time work and $6 per hour for overtime work. At the end of each month, a holding cost of $1.5 per pair of shoes in incurred. Formulate a min-cost network ow problem (MCNFP) that can be used to minimize the total cost incurred in meeting the demand of the next three months. A formulation requires drawing the appropriate network and determining the cij 's, uij 's, bi 's. How would you modify your answer if demand could be backlogged (all demand must still be met by the end of month 3) at a cost of $20/pair/month?
Answer
The answer and procedures of the exercise are attached in athe following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $160,000, which includes fixed costs of $50,000 and variable costs of $110,000. The company can buy the part from an outside supplier for $3.00 per unit, and avoid 30% of the fixed costs. If Harvey Automobiles makes the part, how much will its operating income be?
Answer:
$55,000
Explanation:
The computation of the change in operating income is shown below:
= Buying cost - making cost
where,
Buying cost = Cost of producing parts × outside supplier per unit
= 60,000 parts × $3
= $180,000
And, the making cost would be
= Variable cost + fixed cost × given percentage
= $110,000 + $50,000 × 30%
= $110,000 + $15,000
= $125,000
So, the operating income would be
= $180,000 - $125,000
= $55,000
Kelley Co. has $2,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2017, the holders of $500,000 bonds exercised the conversion privilege. On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $112,500. Kelley should record, as a result of this conversion, a
credit of $78,125 to Paid-in Capital in Excess of Par.
Answer:
Explanation:
The journal entry is shown below:
Bonds payable A/c Dr $500,000
Premium on bonds payable A/c Dr $28,125
To Common stock A/c $450,000
To Paid in capital in excess of par A/c $78,125
(Being the conversion of bonds is recorded)
The computation is shown below:
For Premium on bonds payable:
= $500,000 ÷ $2,000,000 × $112,500
= $28,125
For Common stock:
= $500,000 ÷ $1,000 × 30 × $30
= $450,000
And, the remaining balance is credited to paid in capital in excess of par
Final answer:
The present value of a bond is calculated based on the interest payments and principal compared to the discount rate. If the discount rate increases, the present value decreases. The bond's yield or total return factors in interest and capital gains.
Explanation:
When calculating the present value of a simple two-year bond with an interest rate of 8%, we must consider the interest payments and the principal to be received in the future. If the discount rate matches the interest rate (8% in this case), the bond's present value will be equal to its face value because the coupon rate and discount rate cancel each other out. The bond will pay $240 in interest at the end of the first year, and $240 in interest plus the $3,000 principal at the end of the second year. If interest rates rise and the discount rate goes to 11%, the present value of the bond will decrease. The present value of each interest payment and the principal received in the future will be discounted at a higher rate, making them worth less today. The calculations must discount the future cash flows at the new rate of 11% to find the revised present value of the bond. Ultimately, the yield or total return on the bond includes the interest payments and any capital gains (if the bond is sold before maturity at a price different from the purchase price). This yield changes as market interest rates fluctuate, affecting the selling price of bonds on the secondary market.
Torrid Romance Publishers has total receivables of $3,160, which represents 20 days’ sales. Total assets are $73,000. The firm’s operating profit margin is 6.0%. Find the firm's ROA and asset turnover ratio. (Use 365 days in a year. Do not round intermediate calculations. Round the asset turnover ratio to 2 decimal places. Enter the ROA as a percent rounded to 2 decimal places.)
Answer:
4.74%
Explanation:
Data provided in the question:
Total receivables = $3,160
Day's sales in receivables = 20
Total assets = $73,000
Operating profit margin = 6.0%
Now,
Total sales = Total receivables × [365 ÷ Day's sales in receivables ]
= 3,160 × [ 365 ÷ 20 ]
= $57,670
Assets turnover ratio = Total sales ÷ Total assets
= $57,670 ÷ $73,000
= 0.79
Therefore,
ROA = Assets Turnover ratio × Profit margin
= 0.79 × 6.0%
= 4.74%
The standard number of hours that should have been worked for the output attained is 8000 direct labor hours and the actual number of direct labor hours worked was 8300. If the direct labor price variance was $4150 unfavorable, and the standard rate of pay was $9 per direct labor hour, what was the actual rate of pay for direct labor?
A. $9.00 per direct labor hourB. $9.50 per direct labor hourC. $8.50 per direct labor hourD. $7.50 per direct labor hour
Answer:
B. $9.50 per direct labor hour
Explanation:
Expected labor hours (EL) = 8000
Actual labor hours (AL) = 8300
Labor price variance (LV) = $4150 unfavorable
Standard rate (r) = $9 per hour
The expected labor price (LP) is given by
[tex]ELP = AL*r = 8300*9\\ELP = \$74700[/tex]
Since thre is an unfavorable labor price variance, the actual labor price (ALP) is:
[tex]ALP = ELP + LV\\ALP = 74700+4150\\ALP=78850[/tex]
The actual rate of pay is:
[tex]AR = \frac{ALP}{AL} =\frac{78,850}{8300}\\AR=\$9.50[/tex]
The actual rate of pay for direct labor is $9.50 per direct labor hour.
Consider a market of risk averse decision makers, each with a utility function U=√I Each decision maker has an income of $90,000, but faces the possibility of a catastrophic loss of $50,000 in income. Each decision maker can purchase an insurance policy that fully compensates her for her loss. This insurance policy has a cost of $5,900. Suppose each decision maker potentially has a different probability p of experiencing the loss.a. What is the smallest value of p so that a decision maker purchases insurance? Show your work.b. What would happen to this smallest value of p if the insurance company were to raise the insurance premium from $5,900 to $27,500?
Answer:
Please see attachment .
Explanation:
Please see attachment .
Final answer:
The smallest value of probability p for which a decision maker purchases insurance is found by comparing the expected utility of having insurance versus not having it, based on their utility function and the costs involved. The value of p at which insurance becomes beneficial increases as the cost of the premium increases, suggesting that higher premiums make insurance appealing only to those expecting a higher risk of loss.
Explanation:
Considering a market of risk-averse decision makers, where each has a utility function U=√I and faces a risk of catastrophic loss, we aim to find the smallest value of probability p that makes purchasing insurance worthwhile, and how this value changes with an increase in insurance premium.
Let I represent income and p the probability of experiencing the loss. The expected utility without insurance is E[U_without] = pU($40,000) + (1-p)U($90,000). With insurance costing $5,900, the expected utility becomes E[U_with] = U($84,100). A decision maker will purchase insurance if E[U_with] ≥ E[U_without]. This inequality allows us to solve for the minimum p at which buying insurance becomes beneficial.
If the insurance premium increases to $27,500, resulting in a new insured income of $62,500, the decision makers’ willingness to purchase insurance would be affected due to the significantly higher cost. Generally, as the premium increases, the minimum p at which insurance makes sense increases as well, meaning only those with a higher perceived risk of loss would find the insurance worth its cost.
An increase in the price of oranges would lead to
an increased supply of oranges.
a reduction in the prices of inputs used in orange production.
an increased demand for oranges.
a movement up and to the right along the supply curve for oranges.
Answer:
a movement up and to the right along the supply curve for oranges.
Explanation:
The supply curve exhibits the price and quantity.
Quantity on the x axis that reflects the quantity supplied.
Price on the y axis that reflects the price at which the particular commodity is offered.
Accordingly, when there is increase in prices of orange the y axis will move upward, also as there is increase in price the suppliers would supply more at the price, accordingly x axis will also grow.
Accordingly the supply graph will move upward in the right direction.
An increase in the price of oranges results in a movement up and to the right along the supply curve, indicating a higher quantity supplied at a higher price. Other factors, such as changes in supply or demand, would shift their respective curves. Understanding these distinctions helps in analyzing market behaviors.
An increase in the price of oranges leads to a specific reaction in the market, described by the law of supply and demand. If the price of oranges rises, there will be a movement up and to the right along the supply curve, indicating a higher quantity supplied at a higher price. This movement is caused by producers' motivation to supply more due to the higher potential profit.
Other options listed, such as an increase in supply of oranges or a reduction in input prices, would result in a rightward shift of the supply curve, not merely a movement along it. Similarly, an increase in demand for oranges would shift the demand curve to the right, leading to higher equilibrium prices and quantities.
Key Observations:
An increase in price causes movement along the supply curve.Change in supply (curve shift) is influenced by factors like weather and technology.Change in demand reflects consumer preferences and needs.Horton Industries’ shareholders’ equity included 180 million shares of $1 par common stock and a balance in paid-in capital—excess of par of $1,440 million. Assuming that Horton retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Horton’s total paid-in capital decline if it reacquires 5 million shares at $7.00 per share?
Answer:
$35 million
Explanation:
The computation of the total paid-in capital declined is shown below:
= Number of reacquired shares × per share price
= 5 million shares × $7
= $35 million
We simply multiplied the number of acquired shares with the price of each share so that the correct amount can come.
All other information which is given is not relevant. Hence, ignored it
The loss in efficiency due to market power large or small? Explain. The loss in efficiency due to market power is____________.
A. large because virtually every firm has at least some market power.
B. large because almost every industry is a monopoly with firms that have substantial market power.
C. small because almost every industry is perfectly competitive with firms that have no market power.
D. small because even firms without market power are economically inefficient.
Answer:
The answer is small because the firms with the market power of substantial are rare.
Explanation:
The loss in the efficiency is because of the market power which is small as the firms with the essential or substantial market power are rare in the market.
The firms with the power substantial market are the monopoly firms and these firms are very rare. Some competition exists in firms in the market but this competition limit the power of the market by decreasing the dead weight loss and keeping the cost closer to the marginal cost. So, it will result in loss in efficiency.
Note: The correct answer or option is missing. So, providing the correct statement.
A company's old machine, which cost $45,000 and had accumulated depreciation of $34,500, was traded in on a new machine of like purpose having an estimated 20-year life with an invoice price of $55,000. The company also paid $48,000 cash, along with its old machine to acquire the new machine. The value of new machine should be recorded at:
Answer:
Total Value of New Machine = $58500
Explanation:
given data
old machine cost = $45,000
accumulated depreciation = $34,500
invoice price = $55,000
cash paid = $48,000
to find out
new machine should be recorded
solution
we get here first value of Old Machine after Depreciation is
value of Old Machine after Depreciation = Old Machine Value-Depreciation .............1
put here value
value of Old Machine after Depreciation = $45,000 - $34,500
value of Old Machine after Depreciation = $10500
and
Total Value of New Machine = Cash Paid + Balance Value of Old Machine .......2
Total Value of New Machine = $48,000 + $10500
Total Value of New Machine = $58500
Which one of the following is true about risk and return?A) Riskier assets will, on average, earn lower returns.B) The reward for bearing risk is known as the standard deviation.C) Based on historical data, there is no reward for bearing risk.D) An increase in the risk of an investment will result in a decreased risk premium.E) In general, the higher the expected return, the higher the risk.
Answer:
E) In general, the higher the expected return, the higher the risk.
Explanation:
In order to attract potential investors, investments that bear a higher risk must offer a higher expected return. This is known as the risk-return tradeoff principle. Abiding by that same logic, investments with lower associated risk tend to offer lower expected returns since they are a "safe bet".
Therefore, the answer is E) In general, the higher the expected return, the higher the risk.
A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels to discuss their markets and kept notes with phrases such as "Must act together with the Korean makers in order to reap success," and "Extremely confidential. Must not distribute." The result was that the LCD screen producers were able to command high prices for their products, prices that were non-negotiable. Which of the following statements is correct about their conduct?
a. The manufacturers had engaged in a per se violation of antitrust laws.
b. The manufacturers violated the Sherman Act.
c. The manufacturers violated the Clayton Act.
d. both a and b
e. all of the above
Answer: a. The manufacturers had engaged in a per se violation of antitrust laws.
Explanation: The Sherman and Clayton Acts would apply to US companies. The group of manufacturers of LCD screens were not specified as US companies. But by virtue of the fact of colluding with Korean makers they would have per se been violating the the Monopoly Regulation and Fair Trade Act (MRFTA) of Korea.
Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $200,000 $30,000 February 220,000 36,000 March 250,000 38,000 Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.
Instructions
(a) Prepare a schedule of expected collections from customers for March.
(b) Prepare a schedule of expected payments for direct materials for March
Answer
The answer and procedures of the exercise are attached in the folllowing image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
The schedule of expected collections from customers for March is $219,900 and the schedule of expected payments for direct materials for March is $37,400.
Schedule of expected collections from customersa.Schedule of expected cash collection
Cash sales $75,000
($250,000×30%)
Collection from credit sales
January $50,400
($200,000×70%×36%)
February $77,000
($220,000×70%×50%)
March $17,500
($250,000×70%×10%)
Toatl cash collection $219,900
b. Schedule of expected payment for direct materials
Cash purchases $19,000
($38,000×50%)
Payment for credit sales
January $10,800
($36,000×50%×60%)
February $7,600
($38,000×50%×40%)
Total cash payment $37,400
Inconclusion the schedule of expected collections from customers for March is $219,900 and the schedule of expected payments for direct materials for March is $37,400.
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Carlos purchased an apartment building on November 16, 2017, for $3,000,000. Determine the cost recovery for 2017.a. $9,630b. $11,910c. $13,950d. $22,740e. None of the above
Answer:
e. None of the above
Explanation:
Statement showing Computations
Paticulars Amount
Cost of building 3,000,000.00
Cost recovery deduction 3,000,000 *.00455
the cost recovery for 2017 is 13,650.00
GDP: Is It Counted and Where? For each of the following items, write one of the following in the space provided: C if the item is counted as consumption spending, T if the item is counted as investment spending, G if the item is counted as government spending, NX if the item is counted as net exports, and NC if the item is not counted in GDP. 1. You spend $7.00 to attend a movie. __ 2. A family pays a contractor $100,000 for a house he built for them this year. __ 3. A family pays $75,000 for a house built three years ago. __ 4. An accountant pays a tailor $175 to sew a suit for her. __ 5. The government increases its defense expenditures by $1,000,000,000. __ 6. The government makes a $300 Social Security payment to a retired person. __ 7. You buy General Motors Corp. stock for $1,000 in the stock market. __ 8. At the end of a year, a flour-milling firm finds that its inventories of grain and flour are $10,000 above the amounts of its inventories at the beginning of the year. __ 9. A homemaker works hard caring for her spouse and two children. __ 10. Ford Motor Co. buys new auto-making robots. __ 11. You pay $300 a month to rent an apartment. __ 12. Apple Computer Co. builds a new factory in the United States. __ 13. R.J. Reynolds Co. buys control of Nabisco. __ 14. You buy a new Toyota that was made in Japan. __ 15. You pay tuition to attend college. __ We count only the final retail price of a new good or service in GDP. Why? A purely financial transaction will not be counted in GDP. Why? When a homeowner does home-improvement work, the value of the labor is not counted in GDP. Why?
Answer:
Check the following solutions.
Explanation:
(1) C
Money spent for movie ticket is personal consumption.
(2) I
Purchase of new residential house is included in GDP under fixed residential investment.
(3) NC
Purchase of used good is not counted (to avoid double counting).
(4) C
Money spent for suit is personal consumption.
(5) G
Defense spending is included in government purchase of goods and services.
(6) NC
Social security, being a transfer payment, is excluded from GDP.
(7) NC
Purchase of stocks is excluded from GDP.
(8) I
Unintended inventory is included under Gross private domestic investment.
(9) NC
Unpaid services are excluded from GDP since market value cannot be precisely computed.
(10) I
The robots are physical capital for Ford's business.
(11) C
Rental payment is personal consumption.
(12) I
Building new factory is fixed non-residential business investment.
(13) NC
Transfer of corporate ownership is excluded from GDP.
(14) NX
Purchase of Japanese car is an Import, included under NX.
(15) C
Tuition payment is personal consumption.
If unions help workers secure pension benefits, so that those workers are less dependent on government social assistance after their retirement, then
a. the for-profit unionized industries will be less productive.
b. the for-profit unionized industries will be harmed.
c. the union is economically harmful.
d. the union is economically beneficial.
Answer:
The correct answer is (D)
Explanation:
Employees and staff elect few people to represent them; individual elected members form a union. The central role of the union is to work for the collective benefit of employees and staff. They are the ones who negotiate to gain a fair outcome through cooperative debate. They discuss everything from a retirement plan to a holiday package.
Unions that help workers secure pension benefits contribute to decreasing workers' dependence on government social assistance, which could lead to economic benefits by reducing government burdens and reallocating funds. The correct answer is d. the union is economically beneficial.
The question at hand explores the relationship between unions and their economic impact, particularly related to pension benefits and dependence on government social assistance after retirement.
If unions help workers secure pension benefits so that these workers are less dependent on government social assistance after their retirement, the implication is that workers will have a more secure financial foundation upon which to sustain themselves. Therefore, rather than being economically harmful, unions in this case could be considered economically beneficial.
By ensuring that workers have the necessary resources for retirement, unions contribute to reducing the long-term financial burden on government social assistance programs. This can have a positive economic effect by potentially reducing taxes or reallocating government spending to other areas of need.
Moreover, the assumption that unionized industries will be less productive or harmed is not necessarily a given and indeed is a separate issue from the discussion of union impact on pension benefits and government assistance.
In conclusion, the most likely answer to the student's question would be that the union is economically beneficial.