Anthony's Bees is an Internet e-tailer that sells equipment to aspiring beekeepers. A complete starter kit in this competitive market sells for $900. Anthony's total costs are given by TC -30°, where Q is the number of starter kits he sells each month. The corresponding marginal cost of producing beehives is MC = 90°
a. What is Anthony's marginal revenue from selling another starter kit? MRES
b. How many starter kits should Anthony sell each year in order to maximize his profits? starter kits
c. How much profit will Anthony earn at this output level? Profit=$
d. Suppose Anthony is producing the quantity indicated in part b. If he decides to produce one more starter kit, what will his new profit be? Profit = $
e. The marginal revenue of producing one more starter kit
Answers
Answer:
a. $900
b. 10 starter kits
c. $6,000
d. $5,907
e. $900
Explanation:
THE CORRECT QUESTION FORMAT IS AS FOLLOWS;
Anthony's Bees is an Internet e-tailer that sells equipment to aspiring beekeepers. A complete starter kit in this competitive market sells for $900. Anthony's total costs are given by TC =[tex]3Q^{3}[/tex], where Q is the number of starter kits he sells each month. The corresponding marginal cost of producing beehives is MC = [tex]9Q^{2}[/tex]
a. What is Anthony's marginal revenue from selling another starter kit? MRES
b. How many starter kits should Anthony sell each year in order to maximize his profits? starter kits
c. How much profit will Anthony earn at this output level? Profit=$
d. Suppose Anthony is producing the quantity indicated in part b. If he decides to produce one more starter kit, what will his new profit be? Profit = $
e. The marginal revenue of producing one more starter kit
Solution is as follows;
a. From the question, we can identify that Anthony is a price taker and not a price decider. What this means is that he sell at industry determined price. Thus, selling an additional unit will give him a revenue equal to price ,so Marginal Revenue=$900
b. For a perfectly competitive firm, there will be an increase in output as long as Price >Marginal Cost or Price=Marginal Cost to maximize profit.
Thus;
we set
Marginal Cost=Price
[tex]9Q^{2}[/tex]=900
[tex]Q^{2}[/tex]=100
Q=10 starter kits
Hence, for Anthony to maximize his starter kits, he should sell 10 starter kits each year.
c. Total Cost(TC) =[tex]3Q^{3}[/tex]=3*[tex]10^{2}[/tex]=$3000
Total Revenue(TR) =P*Q=900*10=$9000
Profit= Total Revenue(TR) - Total Cost(TC) =9000-3000=$6000
d. If Anthony produces one extra unit of output.
His new quantity becomes Q=11
Total Cost(TC)=[tex]3Q^{3}[/tex]= 3 × [tex]11^{3}[/tex]=$3993
Total Revenue(TR) = P*Q= 900*11=$9900
Profit=TR-TC=9900-3993=$5907
Producing an additional unit of output will lead to a decrease in his output
e. The marginal revenue of producing an additional starter kit will be revenue at Q =11 minus revenue at Q=10
That is 9900-9000 = 900
This is same as the price of the starter kit i.e MR = P
Answer:
e. The marginal revenue of producing one more starter kit is 9900-9000 = 900
Hence, the marginal revenue is equal to the price of the starter kit i.e MR = P
Explanation:
find attached solution
Related Questions
Phoebe, a sales representative, is so excited during her sales presentation that she does not hear the customer's question correctly. She gives a brief, inappropriate answer, and continues with her presentation. Phoebe's behavior in this scenario reflects the operation of _____.
Answers
Answer:
Selective Perception
Explanation:
Selective perception refers to a psychological state wherein, an individual perceives and comprehends only that information he/she finds desirable, thereby ignoring the rest of the information during communication.
So, any of the viewpoints or ideas which appear conflicting to one's own are ignored and discarded under such a psychological state.
In the given case, Phoebe got excited during her presentation that she missed out upon hearing customer's questions. In such a state of excitement, her mind only perceived what she desired, thereby ignoring anything which appeared undesirable.
So post providing inappropriate answers, she went on with her presentation , i.e she got carried away in excitement. Such psychological state indicates the operation of selective perception.
g A review of Parson Corporation's accounting records found that at a volume of 146,000 units, the variable and fixed cost per unit amounted to $8 and $5, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 138,200 units?
Answers
Answer:
The total cost is $1,796,600
Explanation:
Fixed costs are costs that do not change with the change in the volume of good or service sols, but under certain circumstances, when the fixed cost is a direct cost, it can vary on a per unit basis.
Variable costs are costs that change with the change of the volume of goods or service.
Total number of units = 138,200
variable cost per unit = $8
Total variable cost = 8 × 138,200 = 1,105,600
Fixed cost per unit = $5
Total fixed cost = 5 × 138,200 = 691,000
Total cost = 1,105,600 + 691,000 = $1,796,600
An American-style call option with six months to maturity has a strike price of $35. The underlying stock now sells for $43. The call premium is $12.
a) What is the intrinsic value of the call?
b) What is the time value of the call?
c) If the company unexpectedly announces it will pay its first-ever dividend 3 months from today, you would expect that the value of the call would increase, decrease, or remain unchanged?
Answers
Answer:
a) $8
b) $4
c) Decrease
Explanation:
Background.
A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.
a) the Intrinsic value of the option is the market price minus the strike price.
Intrinsic Value = Market Price - Strike price
= $43 - $35
= $8 per share.
It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.
b) To calculate the time value, we subtract the intrinsic value from the call premium
= Call Premium - Intrinsic value
= $12 - $8
= $4
c) The call option has 6 months to maturity and the dividends are to come in 3 months. Share prices usually drop after a dividend has been paid so because the call option matures in 6 months, the price of the call option will DECREASE owing to the Expected drop in stock price.
1 5.8 % 2 6.4 % 3 7.1 % 4 7.3 % 5 7.4 % What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?
Answers
Answer:
$877.54 ( $1,000/[(1.064)(1.071))
Explanation:
Amex Corporation invests excess cash to purchase $25,000 in corporate bonds on March 30, 2018. In addition to the $25,000, Amex also paid a brokerage fee of $1,000. Amex intends to hold the bonds until maturity and has the ability to do so. When the bonds mature on March 30, 2020, Amex plans to use the cash for its business expansion. Which of the following is included in the journal entry on March 30, 2018?
Answers
Answer:
C) a debit to Held-to-Maturity Debt Investments for $26,000
Explanation:
The journal entry should be:
Dr Held-to-maturity debt investments 26,000
Cr Cash 26,000
Since Amex Corporation is planning to hold the bonds until maturity, it must record the total investment (bonds' price plus brokerage fees) as held to maturity securities.
Investment in securities are generally classified as either:
Held-to-maturity : the company will hold them until they mature, does not plan to sell them. Are reported as non-current assets. Held for trading Available for saleThe Copper Mountain Group, a private equity firm headquartered in Boulder, Colorado borrows GBP 5,000,000 for one year at 7.375% interests a. What is the dollar cost of this debt if the pound depreciates from $2.0260/GBP to $ 1.9460/GBP? b. What is the dollar cost of this debt if the pound appreciates from $2.0260/GBP to $ 2.1640/GBP?
Answers
Answer:
Pound depreciates from $2.0260/GBP to $ 1.9460/GBP
Amount borrowed = 5,000,000*2.026 =$10,130,000
Payment after 1 year = 5,000,000*1.07375*1.946 = $10,447,587.5
Dollar cost = (10,447,587.5/10,130,000 - 1)*100 = 3.135%
Pound appreciates from $2.0260/GBP to $ 2.1640/GBP
Amount borrowed = 5,000,000*2.026 =$10,130,000
Payment after 1 year = 5,000,000*1.07375*2.164 = $11,617,975
Dollar cost = (11,617,975/10,130,000 - 1)*100 = 14.688%
(a) The dollar cost of the debt is $10,445,125 if the pound depreciates to $1.9460/GBP, and (b) $11,617,375 if the pound appreciates to $2.1640/GBP.
Calculating the Dollar Cost of Debt:
Let's calculate the dollar cost of a debt taken by The Copper Mountain Group considering the fluctuation in the exchange rates.
Scenario a: Pound Depreciates from $2.0260/GBP to $1.9460/GBP
Initial Borrowing:
Amount borrowed in GBP: £5,000,000Exchange rate at borrowing: $2.0260/GBPAmount in USD when borrowed: £5,000,000 * $2.0260/GBP = $10,130,000Interest Calculation:
Interest rate: 7.375%Interest amount in GBP: £5,000,000 * 0.07375 = £368,750Total amount to be repaid in GBP: £5,000,000 + £368,750 = £5,368,750Repayment:
Exchange rate at repayment: $1.9460/GBPAmount in USD to repay: £5,368,750 * $1.9460/GBP = $10,445,125Scenario b: Pound Appreciates from $2.0260/GBP to $2.1640/GBP
Initial Borrowing:
Amount borrowed in GBP: £5,000,000Exchange rate at borrowing: $2.0260/GBPAmount in USD when borrowed: £5,000,000 * $2.0260/GBP = $10,130,000Interest Calculation:
Interest rate: 7.375%Interest amount in GBP: £5,000,000 * 0.07375 = £368,750Total amount to be repaid in GBP: £5,000,000 + £368,750 = £5,368,750Repayment:
Exchange rate at repayment: $2.1640/GBPAmount in USD to repay: £5,368,750 * $2.1640/GBP = $11,617,375Summary of Results:
Depreciation of Pound:
Dollar cost of debt: $10,445,125Appreciation of Pound:
Dollar cost of debt: $11,617,375Which T&D evaluation method involves monitoring and measuring a firm's internal processes, such as operations, and then comparing the data with information from companies that excel in those areas? behavioral change benchmarking return on investment onboarding
Answers
Answer:
The correct answer is Benchmarking.
Explanation:
Benchmarking is a strategy that consists of establishing a benchmark in the market in order to implement best practices within our own organization. This strategy establishes a "model to follow" to adapt to the market and to be able to grow in the short term, for which reason the process or group of processes must be studied in depth in order to determine if it is applicable to our organizational performance.
Three-year Treasury securities currently yield 6%, while 4-year Treasury securities currently yield 6.5%. Assume that the expectations theory holds. What does the market believe the rate will be on 1-year Treasury securities three years from now
Answers
Market expectations indicate that the 1-year Treasury securities rate will be higher than 6.5% in three years.
According to the expectations theory in finance, if the one-year Treasury securities yield is lower than the two-year Treasury securities yield, it suggests expectations of increasing interest rates. Given that the three-year Treasury securities yield 6% and the four-year Treasury securities yield 6.5%, we can infer that the market believes the rate on 1-year Treasury securities three years from now will be higher than 6.5%.
Mr. Etemadi has prepared the following list of statements about service companies and merchandisers.
Identify each statement as true or false:
1. Measuring net income for a merchandiser is conceptually the same as for a service company.
2. For a merchandiser, sales less operating expenses is called gross profit.
3. For a merchandiser, the primary source of revenues is the sale of inventory.
4. Sales salaries and wages is an example of an operating expense.
5. The operating cycle of a merchandiser is the same as that of a service company.
6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained.
7. In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period.
8. A periodic inventory system provides better control over inventories than a perpetual system.
Answers
Answer:
1.True
2.False
3.True
4.True
5.False
6.False
7.True
8.False
Explanation:
1. Measuring net income for a merchandiser is conceptually the same as for a service company.
Net Income = Sales - Expenses
2. For a merchandiser, sales less operating expenses is called gross profit.
Gross Profit = Sales less Cost of Sales
3. For a merchandiser, the primary source of revenues is the sale of inventory.
Merchandiser purchases inventory for resale.
4. Sales salaries and wages is an example of an operating expense.
Operating Expenses are expenses incurred to derive income in primary activities of a company
5. The operating cycle of a merchandiser is the same as that of a service company.
The service company can have client work outstanding at end of year but this differs from that of a merchandiser
6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained.
Detailed records are kept after every sale
7. In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period.
After a given period cost of sales and inventory balances are determined -opposite of perpetual
8. A periodic inventory system provides better control over inventories than a perpetual system.
Perpetual is even better as it keeps track of both inventory and cost of goods sold after every sale
Measuring net income for a merchandiser is conceptually the same as for service. Therefore, it's logically true.
For a merchandiser, sales less operating expenses is called gross profit. This is false.
For a merchandiser, the primary source of revenue is the sale of inventory. This is true.
Sales, salaries, and wages are an example of operating expenses. This is true.
The operating cycle of a merchandiser is the same as that of a service company. This is false.
In a perpetual inventory system, no detailed inventory records of goods on hand are maintained. This is false.
In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period. This is true.
A periodic inventory system provides better control over inventories than a perpetual system. This is false.
It should be noted that net income is the difference between sales and expenses. Gross profit is the sales less cost of sales.
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The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets. However, the Board of Directors of Big Tobacco Co Ltd decided to increase the price by 25% during the month of April. As a manager you noted that price elasticity of demand was 0.8. As a manager Big Tobacco Co Ltd:
A. As a manager Big Tobacco Co Ltd store advise your management of the strategy that could be adopted by your firm to maintain sales.
B. Also, advise your government on recommended interventions in the cigarette market.
Answers
Answer:
Part A. Total sales under the 25% price increase strategy is higher so it must be opted.
Part B. Must intervene by imposing higher taxes on the cigarettes to control its consumption and our future generations.
Explanation:
By using the price elasticity of demand formula, we can calculate the quantity consumption by increasing price by 25%.
The formula is as under:
E = [(Q2 – Q1) / (Q1 + Q2) / 2] / [(P2 – P1) / (P1 + P2) / 2]
Here
Q1 = Consumption before price alteration = 1,000 Packets
Q2 = This is the amount we want to calculate = ?
P1 = It is the initial price which is $6 per packet
P2 = It is 125% of the initial price. So
P2 = P1 * 125% = $7.5 per unit
E = It is price elasticity of Demand which is given in the question and is 0.8. Remember that it is negative.
By putting the values in the Formula, we have:
-0.8 = [(Q2 – 1,000) / (1,000 + Q2) /2] / [(7.5 – 6) / {(6 + 7.5) / 2]
-0.8 = [(Q2 – 1,000) / (500 + 0.5Q2)] / [1.5 / 6.75]
-0.8 * (1.5 / 6.75) = (Q2 - 1,000) / (500 + 0.5Q2)
-0.1777 * (500 + 0.5Q2) = Q2 – 1,000
-88.85 - 0.1777Q2 = Q2 – 1,000
-0.08885Q2 – Q2 = - 1,000 + 88.85
-1.08885Q2 = - 911.15
Q2 = 911.15 / 1.08885 = 837 Packets
Part A.
We will assess which strategy generates higher sales. The strategy that generates higher sales will be adopted.
Sales under $6 per packet pricing:
Total revenue at $6 / packet = 1,000 Packets * $6 per packet = $6,000
Total revenue (TR) at 7.5 price = 837 Packets × $7.5 per packet = $6,277.5
As the total sales under the 25% price increase strategy is higher so it must be opted.
Part B.
The government must intervene by increasing the taxes on "injurious to health" products and intervene this way to decrease the consumption of cigarettes as it is not good for health. Higher prices of the cigarettes will act as an obstacle for smokers and as a result they will smoke less cigarettes. This is an ethically correct recommendation.
TB MC Qu. 4-44 Privott, Inc., manufactures ... Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total Labor-related DLHs $ 339,018 7,900 4,500 12,400 Product testing tests 53,247 1,150 1,250 2,400 Order size MHs 478,608 5,500 5,800 11,300 $ 870,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
Answers
Answer:
labour related activity cost per labour hour = $339,018/ 12,400 = $27.34
Product Z9 = $27.34 * 7900 = $215,987
Product N0 = $27.34*4500 = $123,031
Explanation:
Here is the income statement for Windsor, Inc.
WINDSOR, INC.
Income Statement
For the Year Ended December 31, 2017
Sales revenue $420,100
Cost of goods sold 235,100
Gross profit 185,000
Expenses (including $16,100 interest and $21,900 income taxes) 72,500
Net income $ 112,500
Additional information:
1. Common stock outstanding January 1, 2017, was 22,400 shares, and 36,600 shares were outstanding at December 31, 2017.
2. The market price of Windsor stock was $12 in 2017.
3. Cash dividends of $22,600 were paid, $4,600 of which were to preferred stockholders.
Required:
Compute the following measures for 2017. (Round all answers to 2 decimal places, eg. 1.83 or 2.51%)
(a) Earnings per share __________
(b) Price-earnings ratio times
(c) Payout ratio
(d) Times interest earned times
Answers
In a limited partnership, who is automatically authorized to borrow money
Answers
Answer:
Easy pewsy
Explanation:
Get money
Buy Hella designer
In a limited partnership, general partners are automatically authorized to borrow money.
What is a partnership?When two or more two people come up with the objective to manage the operation of a business by making an alliance by sharing capital for investment and profit or loss of the organization. The collaboration is said to be a partnership.
The general partners and limited partners are mainly two types of partners present in a limited partnership. The general partners are in charge of administering the firm and making commercial decisions.
The general partners have the authority to run the partnership and are also automatically authorized to borrow money on its behalf. This means that the general partners can obtain loans or other sources of finance.
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The petty cash fund of $200 for Tomkins Company appeared as follows on December 31, 2014
Cash $50.60
Petty Cash Vouchers
Freight-in $58.40
Postage 40.00
Balloons for a special occasion 20.00
Meals 25.00
1. Prepare the general journal entry to replenish the fund.
2. On December 31, the office manager gives instructions to increase the petty cash fund by $50. Make the appropriate journal entry.
Answers
Answer:
Explanation:
1.
Petty Cash (200-50.6) Dr.$149.4
Cash Cr.$149.4
Freight In Dr. $58.4
Postage Dr.$40
Balloons Expense Dr.$20
Meals Expense Dr.$25
Cash Cr.$143.4
2. Petty Cash Dr.$50
Bank/Cash Cr.$50
Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $950,000 (38,000 units at $25 each). During 2021, 116,000 units were purchased, all at the same price of $30 per unit. 120,000 units were sold during 2021. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements?
Answers
Answer:
The company would report in a disclosure note accompanying its financial statements:
Lifo assigns an amount to cost of goods sold on the income statement that approximates its current cost; it also better matches current costs with revenues in computing gross profit.
Explanation:
Lifo assigns the highest amount to cost of goods sold - yielding the lowest gross profit and net income which also yields a temporary tax advantage by postponing payment of some income tax.
The tax of LIFO method would be $ 42,500 than the tax of FIFO method.
January 1, 2021 Inventory , $950,000 (38,000 units at $25 each)
Purchases 116,000 units $30 per unit = $ 3480,000
Sales 120,000
LIFO Ending Inventory 34,000 units at $ 25 = $ 850,000
LIFO Cost of Goods Sold = $ 3480,000+ $950,000-$ 850,000= $ 3580,000
If FIFO was used the ending Inventory would be 34,000 units at $ 30
= $ 1020,000
And FIFO Cost of Goods Sold = $ 3480,000+ $950,000-$ 1020,000=
$ 3410,000.
There would be difference of $ 170,000 in the LIFO and FIFO Cost of goods sold. The LIFO COGS is $ 170,000 more than FIFO COGS .
That difference would also be in the income LIFO method. The income of LIFO would be $ 170,000 less therefore having ($ 170,000* 25%) $ 42,500 less income tax.
Based on the amounts of inventory and the income tax rate, the LIFO liquidation profit would be $15,000.
What would be the LIFO liquidation profit?First find the COGS:
= (116,000 x 30) + (4,000 x 25)
= $3,580,000
The LIFO liquidation profit is:
= (Sales - COGS) x ( 1 - Tax rate)
= ((120,000 x 30) - 3,580,000) x (1 - 25%)
= $15,000
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Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $2 per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department C. The product costs (per thousand gallons) follow:
Strawberry Vanilla Chocolate
Direct labor (per 1,000 gallons) $ 766 $ 841 $ 1,141
Raw materials (per 1,000 gallons) 816 516 616
Required: .
1. If the number of hours of labor per 1,000 gallons is 60 for strawberry, 70 for vanilla, and 100 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation. (Omit the "$" sign in your response.)
Answers
Answer:
$1,702 , $1,497, and $1,957
Explanation:
The computation of the total cost is shown below:
Particulars Strawberry Vanilla Chocolate
Direct Labor $766 $841 $1,141
Direct Material $816 $516 $616
Overhead $120 $140 $200
(60 × 2) (70 × 2) (100 ×2)
Total Cost $1,702 $1,497 $1,957
We simply added the direct labor cost, direct material cost and the overhead cost so that the total cost could come
Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000. If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn
Answers
Answer:
The extra profit earned is $10,000
Explanation:
First, let us lay out the information given;
number of fish caught = 20,000
total variable cost = $5,000
average fixed cost = $1
total fixed cost = average fixed cost × number of fishes
= 20,000 × 1 = $20,000
Total cost = 20,000 + 5,000 = $25,000
Next let us calculate the total amount realized from sales before the price jump;
market price = $3
Total amount from sales = 3 × 20,000 = $60,000
profit made = selling price - cost price
= 60,000 - 25,000 = $35,000
Next let us calculate amount realized after the price jump;
new market price = $3.50
Total amount from new sales = 3.50 × 20,000 = $70,000
Profit = sales revenue - cost = 70,000 - 25,000 = 45,000
Finally to calculate the extra profit made, we will find the difference between new profit after price jump and the first profit made;
extra profit = new profit - old profit
= 45,000 - 35,000 = $10,000
Wine and Roses, Inc., offers a bond with a coupon of 10.0 percent with semiannual payments and a yield to maturity of 11.00 percent. The bonds mature in 9 years. What is the market price of a $1,000 face value bond?
Answers
Answer:
$943.77
Explanation:
We use the present value formula i.e to be shown in the attachment below:
Data provided in the question
Future value = $1,000
Rate of interest = 11% ÷ 2 = 5.5%
NPER = 9 years × 2 = 18 years
PMT = $1,000 × 10% ÷ 2 = $50
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the market price of the bond is $943.77
The business judgment rule is important because it reflects the principle that ________, not _________, have the greatest latitude to run companies.
a. shareholders; company directors
b. managers; company directors
c. shareholders; managers
d. company directors; shareholders
Answers
Final answer:
The business judgment rule illustrates that company directors have the most authority to manage a company, as opposed to shareholders. The answer is option d. This rule underscores directors' decision-making capabilities, which serve shareholder interests.
Explanation:
The business judgment rule is important because it reflects the principle that company directors, not shareholders, have the greatest latitude to run companies. The correct answer to the student's question is d. company directors; shareholders. This principle acknowledges that company directors are chosen for their expertise and ability to make informed decisions on behalf of the company, which in turn, serves the interests of the shareholders, the true owners of the company.
Shareholders typically do not have the necessary information or the incentive to manage the day-to-day operations or nominate board members. As firms grow and their business strategies lead to profitability, reliance on the managers' personal knowledge lessens, while the availability of company information increases, leading outside investors like bondholders and shareholders to provide financial capital more willingly.
The first phase of a comprehensive project risk assessment should be:
To develop reasonable estimates of the impacts on the project of both the identified risks and the proposed solutions.
To assess the specific sources of risk at the outset of the project, including the need to fashion appropriate responses.
To produce a project risk management plan that proactively offers risk mitigation strategies for the project as needed.
To make sure the project is well defined, including all deliverables, statement of work, and project scope.
Answers
The first phase of a comprehensive project risk assessment should be "to make sure the project is well defined, including all deliverables, statement of work, and project scope".
Option: D
Explanation:
A comprehensive risk management framework (RMF) has been established and adopted to better manage the task risks by utilizing a well-defined mechanism in modern changing environment. Many ventures have been studied to determine the reasons of their failure and the risk components.
The RMF composed of six stages; identification of programs, risk analysis, risk evaluation, reaction development, contingency planning, and implementation and control. That procedure must be adapted to the unique circumstances of the task and the agency which undertakes it.
During the ____ phase of team implementation, managers have withdrawn from the daily operations and are counseling teams. Group of answer choices a.tightly formed teams b.start-up c.leader-centered teams d.self-managing teams e.reality and unrest
Answers
During the self-managing teams phase of team implementation, managers have withdrawn from the daily operations and are counseling teams.
Option: D
Explanation:
When business is in the form of start-up than it need huge attention from leading members like manager, employer, team leader, etc. But after training workers, employee and staff regarding their work and duties, the procedure they need to follow, timing, etc, the main leader concentrate more on counsel them, related to obstacles they face while performing their duties.
This is because after training and leasing some time to gain experience in firm, it is understood by manger that the team must have reached to self management, thus concentrating on daily operations is totally a work of team leader. But still when they need guidelines related to new strategies, ongoing improvement, physical and mental issues due to work load, how to remain in pace, etc manger counsel them.
During the performing stage of team development, managers often take a step back to function in a counseling role, indicative of self-managing teams. This stage reflects high levels of team cohesion and autonomy.
Explanation:The phrase being sought in the question refers to a specific phase of team development in an organizational setting, where managers have stepped back from day-to-day operations to focus more on a counseling role with their teams. According to Tuckman's theory of group development, this describes the characteristics of self-managing teams, which are part of the performing stage. This is the fourth stage in group development, where the team has developed strong cohesion, is more autonomous, and managers typically take on more of an advisory role, having confidence in the team’s ability to direct itself and solve problems efficiently.
This phase contrasts with earlier stages such as the forming, storming, and norming stages, where teams are still developing their relationships, roles, standards, and methods for interaction and task completion. This understanding of team dynamics is valuable in today's workplace, where organizations form teams to respond to rapid changes due to technology, globalization, and other factors. Self-managing teams display the ability to adapt and perform well even under the complexities of modern organizational structures.
Spartan Credit Bank is offering 7.6 percent compounded daily on its savings accounts. You deposit $6,000 today. How much will you have in the account in 5 years, 10 years, 20 years?
Answers
Answer:
FV in 5 years $8,654
FV in 10 years $12,482
FV in 20 years $25,965
Explanation:
Future value is the amount that includes the principal amount invested and interest earned on this amount including the compounding effect.
Formula for Future value is as follow
FV = PV ( 1 + r )^n
Where
PV = Present value = $6,000
r = rate of interest = 7.6%
FV= Future Value
5 years
n = numbers of year = 5
FV = $6,000 (1 + 7.6%)^5 = $8,654
10 years
n = numbers of year = 10
FV = $6,000 (1 + 7.6%)^10 = $12,482
20 years
n = numbers of year = 20
FV = $6,000 (1 + 7.6%)^20 = $25,965
Answer:
5 years = $8777.36
10yeras = $12,828.64
20years = $27,429.01
Explanation:
Future Value(FV) =?
INTEREST RATE= 7.6% daily = (0.076/365)
Present value = $6,000
A) Future value in 5 years
FV = PV ×(1 + r)^n
FV = $6000 × (1 + (0.076/365))^(5×365)
FV = $6000 ×1.462226748225
=$ 8,773.36
B.) 10 years
FV = $6000 × (1 + (0.076/365))^(10×365)
FV = $6000 × 2.138107063225316
FV = $12,828.64
C. 20 years
FV = $6000 × (1 + (0.076/365))^(20×365)
FV = $6000 × 4.5715018138139866
FV = $27,429.01
The Fremont Company uses the weighted-average method in its process costing system. The company recorded 32,500 equivalent units for conversion costs for November in a particular department. There were 6,300 units in the ending work-in-process inventory on November 30, 75% complete with respect to conversion costs. The November 1 work-in-process inventory consisted of 8,300 units, 50% complete with respect to conversion costs. A total of 28,000 units were completed and transferred out of the department during the month. The number of units started during November in the department was:
Answers
The number of units started during November in the department was calculated to be 28,575 units, after accounting for the units completed and transferred out, the ending work-in-process inventory, and the beginning work-in-process inventory, all adjusted for their respective conversion completion percentages.
The student has asked: How many units were started during November in the department?
To solve this, let's use the following formula that works with the weighted-average method in process costing:
Units started = Units completed and transferred out + Ending work-in-process inventory - Beginning work-in-process inventory
Given:
- Units completed and transferred out of the department during the month = 28,000 units
- Ending work-in-process inventory = 6,300 units, 75% complete with respect to conversion costs
- November 1 work-in-process inventory = 8,300 units, 50% complete with respect to conversion costs
We calculate the equivalent units for the beginning inventory: 8,300 units * 50% = 4,150 equivalent units.
Then, we adjust the ending inventory for the percent completion: 6,300 units * 75% = 4,725 equivalent units.
Now we can calculate the number of units started during November:
Units started = 28,000 units (completed and transferred) + 4,725 units (ending inventory adjusted for completion) - 4,150 units (beginning inventory adjusted for completion) = 28,575 units started during November.
This calculation results in a total of 28,575 units being started during the month of November in that department.
Part U16 is used by Mcvean Corporation to make one of its products. A total of 14,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 3.10 Direct labor $ 7.70 Variable manufacturing overhead $ 8.20 Supervisor's salary $ 3.60 Depreciation of special equipment $ 2.00 Allocated general overhead $ 7.20 An outside supplier has offered to make the part and sell it to the company for $25.50 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $26,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:
Answers
Final answer:
To determine the financial advantage or disadvantage of buying part U16 from the outside supplier, compare the costs of producing internally to the cost of purchasing it. Subtract the cost of purchasing from the cost of producing and multiply by the number of units. Add the additional segment margin generated by freeing up space.
Explanation:
To determine the annual financial advantage or disadvantage of buying part U16 from the outside supplier, we need to compare the costs of producing it internally to the cost of purchasing it. The costs of producing internally include direct materials, direct labor, variable manufacturing overhead, supervisor's salary, depreciation of special equipment, and allocated general overhead. These costs sum up to $3.10 + $7.70 + $8.20 + $3.60 + $2.00 + $7.20 = $31.80 per unit.
If the company chooses to buy the part from the outside supplier, it would cost them $25.50 per unit. By subtracting the cost of purchasing from the cost of producing, we can calculate the annual financial advantage or disadvantage. (31.80 - 25.50) multiplied by 14,000 units would give us the answer.
Moreover, by freeing up the space used to produce part U16 internally, the company can generate an additional segment margin of $26,000 per year. So, we need to add this amount to the financial advantage or disadvantage calculated earlier.
At the beginning of 2016, Copland Drugstore purchased a new computer system for $52,000. It is expected to have a five-year life and a $7,000 salvage value. 2.a. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation. (2) Double-declining-balance depreciation.
Answers
Answer:
1) Straight Line Depreciation
($52,000 - $7,000) / 5 ==> $45,000 / 5 = $9,000 (Year 1 to Year 5)
2) Double-declining-balance depreciation.
Rate = 1/5 = 20% x 2 = 40%
Year 1 = $52,000 x 40% => $20,800
Year 2 = (52,000 - 20,800) x 40% => $12,480
Year 3 = (52,000 - 20,800 - 12,480) x 40% => $7,488
Year 4 = (52,000 - 20,800 - 12,480 - 7,488) x 40% => $4,492.8
Year 5 = (52,000 - 20,800 - 12,480 - 7,488 - 4,492.8) x 40% => $2695.68
Depreciation for the computer system using straight-line method is \$9,000 annually. With double-declining-balance, it starts at \$20,800 for the first year and decreases each year as it's applied to the net book value, ensuring the final value doesn't drop below \$7,000 salvage value.
Explanation:To calculate the depreciation of Copland Drugstore's new computer system using straight-line depreciation, we subtract the salvage value from the purchase price and then divide by the useful life. Thus, the yearly depreciation is (\$52,000 - \$7,000) / 5 = \$9,000. Over the 5-year period, the annual depreciation expense will stay constant at \$9,000.
For the double-declining-balance depreciation, we double the straight-line depreciation rate. The straight-line depreciation rate is 1 / 5 (20%), so the double-declining rate is 40%. For the first year, the depreciation is 40% of \$52,000, which equals \$20,800. From the second year onwards, the rate is applied to the net book value of the computer system at the start of each year (purchase cost - accumulated depreciation) until the salvage value is reached.
Year 1:Depreciation: \$20,800
Year 2:Depreciation: 40% of (\$52,000 - \$20,800) = \$12,480
Year 3:Depreciation: 40% of (\$52,000 - \$20,800 - \$12,480) = \$7,488
And so on, adjusting the calculation each year to prevent the book value from falling below the salvage value.
Your aunt is about to retire, and she wants to buy an annuity that will supplement her income by $65,000 per year for 25 years, beginning a year from today. The going rate on such annuities is 6.25%. How much would it cost her to buy such an annuity today
Answers
$811,540.16 would it cost her to buy such an annuity today
Solution:
Given
Annuity that would increase the profits by $65,000 a year over 25 years
The existing premium on these annuities is 6.25 a cent.
N 25
I/YR 6.25%
PMT $65,000
FV $0.00
PV $811,540.16
a. What are the determinants of demand? Instructions: Click the box with a check mark for correct or click a second time to clear the box for incorrect. Income unanswered Price of related goods unanswered A good's own price unanswered Technology unanswered Tastes and preferences unanswered Resource prices unanswered Number of consumers
Answers
Answer:
The correct answers are,
Income
Price of related goods
Tastes and preferences
The other options apart from these answers are either related with the quantity demanded or with the supply.
The determinants of demand are;
Income Price of related goodsTastes and preferencesWhat are determinants of demand?Income, price, tastes and preferences, prices of related goods and services, and expectations are the five key factors that affect demand.
Each of these factors has the potential to move the demand curve for an item or service to the left or right, indicating a change in demand.
Learn more about demand at;
https://brainly.com/question/1222851
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The Sarbanes-Oxley Act of 2002 requires that the key company officials certify the financial statements. Certification means that the company CEO and CFO must sign a statement indicating:
a. they have read the financial statements.
b. they are not aware of any false or misleading statements (or any key omitted disclosures).
c. they believe that the financial statements present an accurate picture of the company's financial condition.
d. All of the above
Answers
Answer:
The correct answer is d. All of the above .
Explanation:
The statement that a financial statement is certified must confirm that management and its chief financial officer guarantee that the information meets the quality and compliance criteria of the US GAAP, this means that they were prepared in accordance with current regulations and faithfully reflect the economic information of the company (all operations
Answer:
D
Explanation:
All of the above
The Sarbanes-Oxley Act of 2002 requires that the key company officials certify the financial statements. Certification means that the company CEO and CFO must sign a statement indicating: they have read the financial statements, they are not aware of any false or misleading statements (or any key omitted disclosures), and they believe that the financial statements present an accurate picture of the company's financial condition.
Suppose there are 1.000 identical firms producing diamonds. Let the total cost function for each firm be given by C(q, w) = q2 + wq, where q is the firm's output level and w Ls the wage rate of diamond cutters. If w = 10, what will be the firm's (short-run) supply curve? What is the industry's supply curve? How many diamonds will be produced at a price of $20 each? How many more diamonds would be produced at a price of $21? Suppose the wage of diamond cutters depend on the total quantity of diamonds produced. and suppose the form of this relationship is given by w = 0.002Q where Q represents total industry output, which is 1,000 times the output of the typical firm. In this situation, show that the firm's marginal cost (and short-run supply) curve depend on Q. What is the industry supply curve (in the long-run)? How much will be produced at a price of $20? How much more will be produced at a price of $21? What do you conclude about he shape of the short-run supply curve?
Answers
Answer:
For the price of $20 = $3,333.33
For the price of $21 = $3,500
Kindly go through the explanation for the other answers required.
Explanation:
(a)
C = q2 +wq = q2 + 10q
Firm's short run supply curve is its marginal cost (MC) schedule.
MC = dC / dq = 2q + 10
So, supply curve is: p = 2q + 10
Or,
q = (p - 10) / 2 = 0.5p - 5
Total industry supply, Q = 1,000 x q = 500p - 5,000
p = (Q + 5,000) / 500 [Industry supply curve]
When p = 20, Q = 500 x 20 - 5,000 = 5,000 [Number of diamonds supplied]
When p = 21, Q = 500 x 21 - 5,000 = 5,500
So, when P = 21, 500 more diamonds will be supplied.
(b)
(i)
If w = 0.002Q then
w = 0.002 x (1000q) [Since Q = 1000q]
w = 2q
C = q2 +wq = q2 + (2q)q = 3q2
So, MC = dC / dq = 6q
MC = 6 x (Q / 1000)
So, MC depends on Q.
(ii)
Long run supply schedule is when price = MC
p = 6q = 6 x (Q / 1000)
p = 3Q / 500 [Long run industry supply schedule]
(iii) When p = 20, Q = p x (500/3) = 20 x 500 / 3 = 3,333.33
(iv) When p = 21, Q = p x (500 / 3) = 21 x 500 / 3 = 3,500
(v) Short run supply curve is the positive part of MC.
p = 6q
Therefore, the SR supply curve is a straight line from origin, sloping upwards.
Final answer:
Explanation of short-run and long-run supply curves in Economics.
Explanation:
(a)
C = q2 +wq = q2 + 10q
Firm's short run supply curve is its marginal cost (MC) schedule.
MC = dC / dq = 2q + 10
So, supply curve is: p = 2q + 10
Or
q = (p - 10) / 2 = 0.5p - 5
Total industry supply, Q = 1,000 x q = 500p - 5,000
p = (Q + 5,000) / 500 [Industry supply curve]
When p = 20, Q = 500 x 20 - 5,000 = 5,000 [Number of diamonds supplied]
When p = 21, Q = 500 x 21 - 5,000 = 5,500
So, when P = 21, 500 more diamonds will be supplied.
(b)
(i)
If w = 0.002Q then
w = 0.002 x (1000q) [Since Q = 1000q]
w = 2q
C = q2 +wq = q2 + (2q)q = 3q2
So, MC = dC / dq = 6q
MC = 6 x (Q / 1000)
So, MC depends on Q.
(ii)
Long run supply schedule is when price = MC
p = 6q = 6 x (Q / 1000)
p = 3Q / 500 [Long run industry supply schedule]
(iii) When p = 20, Q = p x (500/3) = 20 x 500 / 3 = 3,333.33
(iv) When p = 21, Q = p x (500 / 3) = 21 x 500 / 3 = 3,500
(v) Short run supply curve is the positive part of MC.
p = 6q
Therefore, the SR supply curve is a straight line from origin, sloping upwards
Pepsi and Mountain Dew products sponsored a contest giving away a Lamborghini sports car worth $215,000. The probability of winning from a single bottle purchase was 0.0000084. What is the expected payoff value given that the payoff is $0 from a loss
Answers
Answer:
1.806
Explanation:
The computation of expected payoff value is shown below:
= Worth of sports car × probability of winning from a single bottle purchase + payoff from a loss × (1 - probability of winning from a single bottle purchase)
= $215,000 × 0.0000084 + 0 × (1 - 0.0000084)
= 1.806 + 0
= 1.806
We simply applied the above formula to determine the expected payoff value
The expected payoff value of the contest with a winning probability of 0.0000084 for a prize of $215,000 is $1.80 per bottle purchased. Since purchasing a bottle likely costs more, this would result in a loss over time.
Explanation:The student is asking about the expected value of participating in a contest where the probability of winning from a single bottle purchase is 0.0000084, and the prize is a Lamborghini sports car worth $215,000. To calculate the expected payoff value, we use the formula for expected value (EV):
EV = (Probability of Winning) × (Value of Prize) + (Probability of Losing) × (Value of Non-Winning)
Since the value of not winning is $0, the formula simplifies to:
EV = (Chance of Winning) × (Value of Prize)
Therefore:
EV = 0.0000084 × $215,000
EV = $1.80
This means that with the given probability, the expected payoff value is $1.80 per bottle purchased. However, since a bottle likely costs more than $1.80, over time, participants are expected to lose money on average, should they repeatedly enter the contest. This is an example of the house having an advantage.