Answer:
The quantity supplied as a function of the price is:
Q= 0.1p-0.02(50)+0.01(100)+0.01(300)-0.1(30)
Q= 0.1p-1+1+3-3
Q=0.1 p
If the price of the good is $16, the quantity supplied is:
Q=0.1 (16)
Q= 1.6 (thousands of units)
The journal entry to record the acquisition of land and a building by issuing common stock
(A) debits Land, Building, and Common Stock.
(B) debits Land and Building and credits Common Stock.
(C) debits Land and credits Common Stock.
(D) debits Common Stock and credits Land and Building.
Answer:
(B) debits Land and Building and credits Common Stock.
Explanation:
As with the acquisition of land and building, there is an increase in asset called land and building and for this the land and building account will be debited.
Further, after this since the assets are acquired in exchange of common stock, there is issue of common stock, which shall be credited, as increase in common stock is credited.
Therefore, assets land and building will be debited and common stock will be credited.
The correct journal entry to record the acquisition of land and a building by issuing common stock is option (B), which debits Land and Building and credits Common Stock.
Explanation:The correct journal entry to record the acquisition of land and a building by issuing common stock is option (B) which debits Land and Building and credits Common Stock.
When a company acquires land and a building by issuing common stock, it increases the assets of Land and Building, which are recorded as debits. At the same time, it increases the liabilities of Common Stock, which is recorded as a credit.
For example, if the company acquires land and a building worth $100,000 by issuing 1,000 shares of common stock at a price of $100 per share, the journal entry would be:
Debit Land $100,000Debit Building $100,000Credit Common Stock $100,000
At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $40. A summary of purchases during the current period follows. During the period, Chen sold 2,800 units.
Units Unit Cost Cost
Beginning Inventory 1,000 $ 40 $ 40,000
Purchase #1 1,800 44 79,200
Purchase #2 800 52 41,600
Purchase #3 1,200 58 69,600
Which of these three inventory costing methods would you choose to:
1. Reflect what is probably the physical flow of goods?
(A) LIFO
(B) FIFO
(C) Average Cost
2. Minimize income taxes for the period?
(A) LIFO
(B) FIFO
(C) Average Cost
3. Report the largest amount of income for the period?
(A) LIFO
(B) FIFO
(C) Average Cost
Answer:
1. Reflect what is probably the physical flow of goods?
(A) LIFO 146200
(B) FIFO 119600
(C) Average Cost 134400
2. Minimize income taxes for the period?
(A) LIFO higuer Cost less tax
(B) FIFO
(C) Average Cost
3. Report the largest amount of income for the period?
(A) LIFO
(B) FIFO lower cost higuer income
(C) Average Cost
Explanation:
FIFO Unit C/Unit C/inventory Cost
Beggining Inve 1000 40 40000 1000 40000
Purchase 1800 44 79200 1800 79200
Purchase 800 52 41600 0 0
Purchase 1200 58 69600 0 0
4800 230400 2800 119200
2800 119200
LIFO Unit C/Unit C/inventory Cost
Beggining Inve 1000 40 40000 0 0
Purchase 1800 44 79200 800 35200
Purchase 800 52 41600 800 41600
Purchase 1200 58 69600 1200 69600
4800 230400 2800 146400
2800 146400
AVERAGE Unit C/Unit C/inventory Cost
Beggining Inve 1000 40 40000 0 0
Purchase 1800 44 79200 0
2800 43 119200
Purchase 800 52 41600 0
3600 45 160800
Purchase 1200 58 69600 0
4800 48 230400 2800 134400
2800 134400
Shelly purchases a leather purse for $400. One can infer that:
A. she paid too much.
B. her reservation price was at least $400.
C. her reservation price was exactly $400.
D. her reservation price was less than $400.
Answer:
B. her reservation price was at least $400.
Explanation:
Reservation price: It shows a limit on a price of purchase and selling of products and service rendering.
In the demand side, this price represents the higher price that the buyer is willing to pay to purchase the goods whereas, on the supply side, this price represents the lower price that the seller is willing to sell the goods.
In this question, the Shelly purchase a leather purse for $400 which means the minimum price would be $400
So, all other options except B are incorrect as option B is the most appropriate.
The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year is $2,000,000. The costcapacity factor for this particular plant technology is 0.67 for capacities ranging from 200,000 gallons per year to 500,000 gallons per year. What is the estimated capital investment for a similar ethanol plant with a capacity of 400,000 gallons per year? Please only fill in the number of your calculated result in the blank, e.g., if the result is $100, fill in "100"; also round to the nearest integer.
Answer:
$2,740,251.24
Explanation:
Applying power sizing technique or an exponential model to determine the cost of new boiler.
This model identify the cost variation along with change in capacity or power of the equipment.
[tex]\frac{C_{A} }{C_{B} } =(\frac{S_{A}}{S_{B}})^{x}[/tex]
Where,
Cb = Cost of new plant
Sa = capacity of new plant
Sb = capacity of old plant
x = cost capacity factor
Therefore,
[tex]\frac{C_{A}}{2,000,000} =(\frac{400,000}{250,000})^{0.67}[/tex]
[tex]C_{A}=2,000,000\times\frac{400,000}{250,000}[/tex]
= 2,000,000 × 1.3701
= $2,740,251.24
Sam has decided to buy a burger and fries at a restaurant, but he is considering whether to buy a drink as well. Suppose the price of a burger is $3.00, fries are $1.50, drinks are $2.00, and a value meal with all three costs $4.99. For Sam, what is the marginal cost of the drink?
Answer:
$.49
Explanation:
In this question we have given
Cost of one burger=$3
Cost of fries=$1.5
Cost of drink=$2
Cost of value meal=$4.99
Therefore, marginal price of drink=cost of value meal-cost of fries and burger
=4.99-3-1.5
=$.49
On January 1, 2018, Green Corporation purchased 20% of the outstanding voting common stock of Gold Company for $300,000. The book value of the acquired shares was $275,000. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2018, Gold reported net income of $125,000 and paid cash dividends of $25,000. What is the carrying value of Green's investment in Gold at December 31, 2018?
Final answer:
The carrying value of Green's investment in Gold at the end of 2018 is calculated by adding the equity income recognized and subtracting both dividends received and amortization of the intangible asset from the initial investment cost, resulting in a carrying value of $315,000.
Explanation:
The carrying value of Green's investment in Gold on December 31, 2018, can be calculated by adding the equity income recognized during the year and subtracting any dividends received from the investment from the initial investment cost. The initial cost of the investment was $300,000. Since Green owns 20% of Gold, they would recognize 20% of Gold's net income, which would be $25,000 ($125,000 x 20%). Additionally, Green would reduce the carrying amount by the dividends received, which amounts to $5,000 ($25,000 x 20%). The excess purchase price over the book value is attributed to an intangible asset, which is amortized over its useful life. This excess amount is $25,000 ($300,000 - $275,000) and the annual amortization expense over five years would be $5,000 ($25,000 / 5).
The calculations for the carrying value are as follows:
Initial investment cost: $300,000Equity income recognized: $25,000Dividends received: ($5,000)Amortization of intangible: ($5,000)Thus, the carrying value at the end of the year is:
$300,000 + $25,000 - $5,000 - $5,000 = $315,000
One of the trade-offs Tesla faces is between safety and the maximum range someone can drive an all-electric car before having to recharge it. For example, adding steel to a car makes it safer but also heavier, which results in fewer mileage between recharges. Assume that this trade-off is consistent with increasing costs of added safety. Draw a hypothetical production possibilities frontier that Tesla engineers face that show this trade-off.
Answer:
A creation conceivable outcomes outskirts demonstrates the most extreme sum that an economy can deliver.
Explanation:
The creation plausibility outskirts is a marginalist model that mirrors the most extreme amounts of merchandise and ventures that a nation or endeavour is fit for delivering in a given period and dependent on certain generation factors and innovative learning. Hence there are three circumstances in the profitable structure of a nation or endeavour:
Inefficient beneficial structure: When it is underneath the PPF, that is, either all assets are not utilized (inactive assets), or the innovation isn't satisfactory. Efficient beneficial structure: It is situated before the fringe or near it. There are no inactive assets and the best innovation is being utilized. Unattainable beneficial structure: It is over the generation potential outcomes. It is hypothetical since no nation or endeavour can deliver past its ability.Brief Exercise 26-4 Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Make Buy Net Income Increase (Decrease) Variable manufacturing costs $ $ $ Fixed manufacturing costs Purchase price Total annual cost $ $ $ The decision should be to the part.
Answer:
differential loss for 14,700
Explanation:
[tex]\left[\begin{array}{cccc}&$Make&$Buy&$Differential&\\$Variable Cost&-73,500&-88,200&-14,700&\\$Fixed cost&-29,400&-29,400&0&\\$Total&-102,900&-117,600&-14,700&\\\end{array}\right][/tex]
We multiply the variable copst per unit by the 14,7000 units
then we add the fixed cost for the total cost for the make option
Then, we multiply the 14,700 by 6 for the buy option and add the unavoidable fixed cost.
In this case, it is not convinient to buy the assembly part as it would incour in a differential loss for 14,700
Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as
a. an increase in current liabilities.
b. an increase in stockholders' equity.
c. a footnote.
d. an increase in current liabilities for the current portion and long-term liabilities for the
long-term portion.
Answer: a footnote
Explanation: Cumulative preferred dividends refers to the dividends that are outstanding from the company's side. The company have the obligation to pay such dividends before any payment is made to the common stockholders of the company.
Although it is an obligation to the company, it is recorded in the footnotes of the balance sheet of the company for the year as it is considered as a secondary information.
Cumulative preferred dividends in arrears should be shown on a corporation's balance sheet as c. a footnote.
Explanation:Cumulative preferred dividends in arrears are typically noted as a footnote on a corporation's balance sheet because they do not qualify as a liability until declared by the board of directors.
A cumulative preferred dividend is a type of dividend that, if omitted, must be paid to shareholders in the future. Dividends in arrears are not considered a liability, as they are not legally due until declared by the corporation's board of directors. Therefore, option a, b and d are incorrect.
While dividends in arrears are not considered liabilities, they offer vital information to both current and potential shareholders, hence, are usually disclosed as a footnote to the financial statements.
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Which of the following is NOT true of a demand curve?
A. It has negative slope.
B. It shows the amount consumers are willing and able to purchase at various prices, holding other factors constant.
C. It relates the price of an item to the quantity demanded of that item.
D. It shows how an increase in price leads to an increase in quantity demanded of a good.
D. it shows how an increase in price leads to an increase in quantity demanded of a good.
The statement which is not true about the demand curve is it shows that an increase in price leads to an increase in the quantity demanded of a good. Thus, the correct answer is D.
What is the Demand curve?The demand curve depicts the relationship between the price of a commodity or service offered and the quantity demanded over time. This shows that demand for goods falls when a rise in the price has been observed.
The factors which affect the demand curve are the price of any product, income earned by the customer, amount of substitute goods, and availability of supply based on expectations of the future.
Therefore, option D increase in price leads to an increase in quantity is the correct answer which is not true about the demand curve.
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he balance shown in the August bank statement of Colt Company was $22,400. After examining the August bank statement and items included with it, the company's accountant found:
Checks outstanding $4,500
NSF check 140
Note collected by bank for the Colt Company 1,500
Deposits outstanding 2,300
Bank service fees 60
What is the amount of cash that should be reported in the balance sheet as of August 31?
A.$20,200
B.$16,700
C.$23,400
D.$15,700
Answer:
A.$20,200
Explanation:
The computation of the cash amount which is to be reported is shown below:
= August bank statement balance - checks outstanding + deposit outstanding
= $22,400 - $4,500 + $2,300
= $20,200
The other items like NSF check, Note collected by the bank for the Colt Company, and Bank service fees are irrelevant. Hence, these are ignored and not be considered in the computation part
When the Fed sells government securities, the banks':
A. reserves will increase and lending will expand causing an increase in the money supply.
B. reserves will decrease and lending will contract causing a decrease in the money supply.
C. reserve requirements will increase and lending will contract causing a decrease in the money supply. D. reserves/deposit ratio will increase and lending will expand causing an increase in the money supply.
Answer:
The correct answer is option B.
Explanation:
When the Federal reserve bank sells government securities, the banks will purchase them and pay back fed. This payment is made out of banks' reserves. This causes the reserves to decrease.
As reserves decline, the banks will be able to provide fewer loans. Consequently, this decrease in lending will further cause the money supply to decrease.
If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the accounta. Common Stock will be credited for $140,000.b. Paid-in Capital in Excess of Par Value will be credited for $20,000.c. Paid-in Capital in Excess of Par Value will be credited for $120,000.d. Cash will be debited for $120,000.
Answer:
Paid-in Capital in Excess of Par Value will be credited for $120,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $140,000
To common stock (4,000 shares × $5) = $20,000
To Paid-in Capital in Excess of Par Value $120,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
"You plan on saving money for retirement in 30 years (t=30) at which time, you wish to have saved $1,000,000. In order to do this, you plan on depositing $10,000 into the bank for 10 years starting next year (last $10,000 deposit at t=10). And then deposit $x every year after that until your retirement day (last deposit of $x at t=30). If the interest rate is 6% per annum, what is the $x you must deposit?"
Answer:
X= $15,692.9393
Explanation:
Giving the following information:
Number of years= 30
Final value= 1,000,000
First, deposit $10000 for ten years (last deposit at t=10).
After ten years, you deposit X for 20 years until t=30.
i= 6%
First, we need to calculate the final value in t=10. We are going to use the following formula:
FV= {A*[(1+i)^t-1]}/i
FV= {10000*[(1.06^10)-1]}/0.06= $131807.9494
We can calculate the amount of money to input every year. We need to isolate A:
A= (FV*i)/[(1+i)^n-1]
First, we need to calculate the final value of the $131807.9494
FV= PV*[(1+i)^n]
FV= 131807.9494*1.06)^20= 422725.95
We need (1000000-4227725.95) $577274.05 to reache $1000000
A= (FV*i)/[(1+i)^n-1]
A= (577274.05*0.06)/[(1.06^20)-1]= 15692.9393
X= $15,692.9393
Stiller Corporation incurred fixed manufacturing costs of $12,000 during 2011. Other information for 2011 includes: The budgeted denominator level is 2,000 units. Units produced total 1,500 units. Units sold total 1,200 units. Beginning inventory was zero. The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold. Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total:
Answer:
Cost of Goods Sold will contain 9,600 of the fixed manufacturing cost
Explanation:
actual fixed cost 12,000
Under absorption cost, the produced units will take the complete manufacturing cost
total manufacturing cost / produced units
12,000 / 1,500 units = 8
Then, we multiply by the amount of units sold to know how much of the manufacturing cost were recognize during the period
1,200 x 8 = 9,600
The rest, will be capitalized into inventory.
Which of the following events could decrease the cost of money? Check all that apply.
(A) Inflation increases
(B) The federal deficit decreases
(C) The Federal Reserve purchases Treasury securities held by banks
(D) The Federal Reserve sells Treasury securities to banks
The events that can decrease the cost of money are when the federal deficit decreases and when the Federal Reserve purchases Treasury securities held by banks. The cost of money, or interest rate, decreases when there's more money available for loans. Inflation or the Federal Reserve selling Treasury securities can increase the cost of money.
Explanation:The cost of money, often referred to as the interest rate, can be influenced by many different components of the economy. The specified events that could decrease the cost of money are: (B) The Federal deficit decreases, and (C) The Federal Reserve purchases Treasury securities held by banks.
(B) When the federal deficit decreases, it means the government is borrowing less money. As a result, the supply of money available for loans increases, which can decrease the interest rates.
(C) When the Federal Reserve purchases securities from banks, it essentially gives those institutions more money to loan out. With an increased supply of money available for loans, the cost of borrowing (interest rates) can decrease.
On the other hand, if inflation increases or if the Federal Reserve sells Treasury securities to banks, this could increase the cost of money.
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Total stockholders' equity represents
a. a claim to specific assets contributed by the owners.
b. the maximum amount that can be borrowed by the enterprise.
c. a claim against a portion of the total assets of an enterprise.
d. only the amount of earnings that have been retained in the business.
Answer: Option C
Explanation: In simple words, the amount of assets that remain in the business after all liabilities have been met is called the stockholders equity. These are the funds available in the company on which the common stockholders have their right.
In other words, these are the assets which are financed by the owners of the company and no liability is incurred to purchase them.
Hence from the above we can conclude that the correct option is C.
Your current income is $50,000 per year, and you would like to maintain your current standard of living (i.e., your purchasing power) when you retire. If you expect to retire in 30 years and expect inflation to average 3% over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years?
Answer:
it will need income for 121,363.12
Explanation:
We will adjust the 50,000 principal by inflation at 3% per year during 30 years:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 50,000.00
time 30.00
rate 0.03000
[tex]50000 \: (1+ 0.03)^{30} = Amount[/tex]
Amount 121,363.12
An income for 121,363.12 per year in 30 years will have the same purchasing power as 50,000 dollars today.
To maintain your current standard of living when you retire in 30 years with a 3% annual inflation rate, you'll need an annual income of approximately $121,354.
Calculating Future Income Needed to Maintain Purchasing Power
To determine how much annual income you will need in 30 years to maintain your current standard of living given a $50,000 current income and an expected 3% annual inflation rate, follow these steps:
Identify the formula for future value with inflation: FV = PV times (1 + r)^n, where PV is the present value ($50,000), r is the inflation rate (3% or 0.03), and n is the number of years (30).
[tex]Plug in the values: FV = 50000 imes (1 + 0.03)^{30}.[/tex]
[tex]Calculate the result: FV = 50000 times (1.03)^{30} ≈ 50000 times 2.427 ≈ $121,354.[/tex]
So, in 30 years, you will need an annual income of $121,354 to maintain your current purchasing power, considering a consistent inflation rate of 3%.
Most financial advisers suggest that to live comfortably in retirement, you typically need about 70% of your pre-retirement income. However, this calculation helps you understand the equivalent value you'd need to keep the same purchasing power with an adjusted income.
Precious, Inc. is a merchandiser of a single line of golden rings. At the beginning of the day, the shop had 10 rings in its inventory. During the day, 4 new rings were delivered to the shop. By close of business, only 7 rings remained in inventory. The purchase price of each ring from the supplier is $223. In addition, the company pays $5 for shipping and delivery insurance on each ring that they purchase. What is the company’s Gross Profit for the day if it sells each ring for $662?
Answer:
Gross profit=$3038
Explanation:
We need to calculate the gross profit of the day based on the following information:
Beginning inventory= 10 rings
Purcase= 4 rings
Ending inventory= 7 rings
Cost of each ring= $223
Freight and insurance= $5 unit
Unitary cost= 223+5= $228
Total sale in units= 10+4-7= units
Gross profit= (PxQ)-(Unitary cost*Q)
Gross profit= (7*662)-(228*7)=$3038
A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 12 Fixed 5 What is the amount of the gain or loss from the acceptance of the offer?
The acceptance of the special order in this case would result in a loss of $40,000 as the total costs of production for this order would exceed the revenue generated.
Explanation:To calculate the gain or loss from the acceptance of the offer, we first need to determine the total revenue from this special order and the total cost incurred to produce the special order. The total revenue, in this case, would be the price offered by the exporter multiplied by the number of units, that is $15/unit * 20,000 units = $300,000.
The total cost would be the sum of the variable cost and the fixed cost, each multiplied by the number of units. This amounts to ($12/unit variable costs + $5/unit fixed costs) * 20,000 units = $340,000.
Subtracting the total cost from the total revenue will give the gain or loss. So, $300,000 - $340,000 shows a loss of $40,000. Hence, the amount of the loss from the acceptance of the offer is $40,000.
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Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let d = annual demand for a product in units p = price per unit Assume that a firm accepts the following price-demand relationship as being realistic: d = 800 - 10p where p must be between $20 and $70. How many units can the firm sell at the $20 per-unit price? Round your answer to the nearest whole number.
Answer:
The firm will sell 600 units at $20
Explanation:
Giving the following information:
d = annual demand for a product in units
p = price per unit
d = 800 - 10p
p must be between $20 and $70.
Elastic demand
We have to calculate how many units the firm will sell at $20
d=800-10*p=800-10*20= 600 units
Answer:
Explanation:
The firm can sell 800 - (10 * 20) = 600 units at the $20 per-unit price.
The firm can sell 800 - (10 * 70) = 50 units at the $70 per-unit price.
The supply of seats for a psychology class at 10 a.m. is the same as the supply of seats for the same class at 2pm LO5 MO1 There is a surplus of seats for the class at 2 p.m. and there is a shortage of seats in the 10 a.m. class. If tuition does not vary by time of day, it follows that the demand for the 10 a.m. class is __________ the demand for the 2 p.m. class, ceteris paribus.
Answer:
The demand for 10 a.m. class is higher than the demand for the 2 p.m. class.
Explanation:
The supply of seats for the psychology class at 10 a.m is the same as the class at 2 a.m. But there is a surplus of seats at 2 a.m class and shortage of seats at 2 p.m class.
Other things being constant this implies that more students are attending the 10 a.m class than the 2 p.m. class. This shows that the demand for the 10 a.m class is comparatively higher than the demand for the 2 p.m. class.
This causes a surplus of seats at 2 p.m and shortage of seats at 10 a.m.
The following information pertains to Alpha Computing at the end of 2015:
Assets $972,500
Liabilities $450,000
Net Income $237,500
Common Stock $370,000
Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2015.
What amount of dividends did the company pay in 2015?
Answer:
Dividens paid in 2015: $85.000
Explanation:
TOTAL ASSETS 972.500
TOTAL LIABILITIES 450.000
Common Stock $ 370.000
Retained Earnings $ 152.500
TOTAL EQUITY $ 522.500
Retained Earnings Report
Opening retained earnings $ 0
Add: Net Income $ 237.500
Subtotal $ 237.500
Less: Dividens -$ 85.000
Total $ 152.500
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 16 percent, 11 percent, −1 percent, 6 percent, and 11 percent. Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 23 percent, −6 percent, 6 percent, and 11 percent.
Calculate the variances and the standard deviations for Cherry and Straw. (Do not round intermediate calculations. Enter your variance as a decimal rounded to 5 decimal places. Enter your standard deviation as a percent rounded to 2 decimal places.)
Final answer:
The variances for Cherry Jalopies, Inc., and Straw Construction Company are calculated as 0.002368 and 0.008300, respectively, while the standard deviations are computed as 4.87% for Cherry Jalopies, Inc. and 9.11% for Straw Construction Company.
Explanation:
The student in question is seeking to calculate the variances and standard deviations for Cherry Jalopies, Inc., and Straw Construction Company's stock returns over five years. To calculate the variance, we first compute the average return for each company and then find the differences between each year's return and the average, square those differences, sum them, and then divide by the number of data points minus one. To find the standard deviation, we take the square root of the variance.
For Cherry Jalopies, Inc.:
Calculate the average return: (16% + 11% - 1% + 6% + 11%) / 5 = 8.6%Calculate each year's deviation from the average, square it, and sum: ((16-8.6)^2 + (11-8.6)^2 + (-1-8.6)^2 + (6-8.6)^2 + (11-8.6)^2) / 4Compute the variance: = 0.002368Compute the standard deviation by taking the square root of the variance: = 4.87%For Straw Construction Company:
Calculate the average return: (16% + 23% - 6% + 6% + 11%) / 5 = 10%Calculate each year's deviation from the average, square it, and sum: ((16-10)^2 + (23-10)^2 + (-6-10)^2 + (6-10)^2 + (11-10)^2) / 4Compute the variance: = 0.008300Compute the standard deviation by taking the square root of the variance: = 9.11%Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cooks' time. Vincent cake bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour.
Which cook has absolute advantage in baking cakes?
Which cook has the comparative advantage in baking cakes?
Which cook has the absolute advantage in making pizzas?
Which cook has the comparative advantage in making pizzas?
Jean has an absolute advantage in both baking cakes and making pizzas. Vincent has a comparative advantage in baking cakes, while Jean has a comparative advantage in making pizzas.
Absolute and Comparative Advantage
To determine which cook has the absolute and comparative advantages in baking cakes and making pizzas, we first need to review their hourly production capabilities.
Vincent can bake 1010 cakes or make 55 pizzas.
Jean can bake 1212 cakes or make 88 pizzas.
Based on this information:
1. correct answer is option a. Jean - Jean can bake more cakes per hour (1212) compared to Vincent (1010).
2. correct answer is option c. Jean - Jean can make more pizzas per hour (88) compared to Vincent (55).
3. We calculate the opportunity cost:
Vincent: 1 cake = 55 pizzas divided by 1010 cakes ≈ 0.0545 pizzas per cake
Jean: 1 cake = 88 pizzas divided by 1212 cakes ≈ 0.0726 pizzas per cake
correct answer is option a. Vincent - Vincent has the lower opportunity cost in baking cakes (0.0545 < 0.0726).
4. We calculate the opportunity cost:
Vincent: 1 pizza = 1010 cakes divided by 55 pizzas ≈ 18.36 cakes per pizza
Jean: 1 pizza = 1212 cakes divided by 88 pizzas ≈ 13.77 cakes per pizza
correct answer is option c. Jean - Jean has the lower opportunity cost in making pizzas (13.77 < 18.36).
Complete question-
Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cooks' time. Vincent can bake 1010 cakes or make 55 pizzas in an hour. Jean can bake 1212 cakes or make 88 pizzas in an hour. Please answer the four questions.
1. Which cook has the absolute advantage in baking cakes?
a. Jean
b. Neither
c. Vincent
2. Which cook has the absolute advantage in making pizzas?
a. Neither
b. Vincent
c. Jean
3. Which cook has the comparative advantage in baking cakes?
a. Vincent
b. Jean
c. Neither
4. Which cook has the comparative advantage in making pizzas?
a. Vincent
b. Neither
c. Jean
Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category.Data Amount ($)Delivery expense to customers via UPS 8Salaries of salespeople 3Chipset (the set of chips on the phone's motherboards) 58Exterior case for phone 9Assembly-line worker;s wages 9Technical custumer support hotline 6Depreciation on plant and equipment 75Rearrangement of production process 5Salaries of scientist 14
Answer:
Delivery expense to customers via UPS = 8 - Distribution
Salaries of salespeople = $3 - Marketing
Chip set (the set of chips on the phone's motherboards) = $58 - Direct Materials
Exterior case for phone = $9 - Direct Materials
Assembly-line worker;s wages = $9 - Direct Labor
Technical customer support hotline = $6 - Customer Service
Depreciation on plant and equipment = $75 - Manufacturing Overhead
Rearrangement of production process = $5 - Design
Salaries of scientist = $14 - R & D
Total cost for each value chain category
Direct Labor: $9
Direct Materials: $9 + $58 = $67
Manufacturing Overhead: $75
Customer Service: $6
Design: $5
R & D: $14
Marketing: $3
Distribution: $8
Final answer:
The costs can be classified into different categories in the value chain based on their place. The categories include Production, Delivery, Sales, and Support. Each category can be further broken down into subcategories such as Direct Materials, Direct Labor, and Manufacturing Overhead. More information is needed to calculate the total cost for each value chain category.
Explanation:
The costs mentioned in the question can be classified into different categories based on their place in the value chain. The different categories are: Production, Delivery, Sales, and Support. Within the production category, the costs can be further classified as: Direct Materials, Direct Labor, and Manufacturing Overhead.
Based on the given data, the costs can be classified as follows:
Delivery expense to customers via UPS: falls under the Delivery categorySalaries of salespeople: falls under the Sales categoryChipset: falls under the Production category, in the Direct Materials subcategoryExterior case for the phone: falls under the Production category, in the Direct Materials subcategoryAssembly-line worker's wages: falls under the Production category, in the Direct Labor subcategoryTechnical customer support hotline: falls under the Support categoryDepreciation on plant and equipment: falls under the Production category, in the Manufacturing Overhead subcategoryRearrangement of production process: falls under the Production category, in the Manufacturing Overhead subcategorySalaries of scientists: falls under the Production category, in the Manufacturing Overhead subcategoryTo calculate the total cost for each value chain category, you would need more information about the costs. The total cost is the sum of all costs within a particular category.
There are two teams of students: team A with 3 sophomores, 8 juniors and 13 seniors; and team B with 5 sophomores, 7 juniors and 6 seniors. Suppose we pick one student from each team at random. Find the probability that both students are of the same type (that is, both sophomores, or both juniors, etc).
Answer:
sopomores= 0.0397
juniors= 0.1481
seniors= 0.2063
Explanation:
Giving the following information:
There are two teams of students:
Team A with 3 sophomores, 8 juniors, and 13 seniors. Total of 24 students.
Team B with 5 sophomores, 7 juniors, and 6 seniors. Total of 18 students.
First, we need to calculate the probability of selecting any student on each team:
Team A:
sophomores=3/21= 0.1428
juniros= 8/21= 0.3809
senors= 13/21= 0.619
Team B:
sopomores= 5/18= 0.2778
juniors= 7/18= 0.3889
seniors= 6/18= 0.3333
Now, we can calculate the probability of selecting the same type of students:
sopomores= 0.1428*0.2778= 0.0397
juniors= 0.3809*0.3889= 0.1481
seniors= 0.619*0.3333= 0.2063
The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost $ 61,000 Contributions to pension plan 111,000 Benefits paid to retirees 156,000 Plan assets (fair value), January 1 643,000 Plan assets (fair value), December 31 750,000 Actual return on plan assets 152,000 PBO, January 1 910,000 PBO, December 31 906,000 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year?
Answer:
The pension expense for the year is $94,130
Explanation:
The computation of the pension expense is shown below:
= Service cost + Interest cost - expected return of plant
where,
Service cost = $61,000
Interest cost = PBO, January 1 × discount rate
= $910,000 × 10%
= $91,000
Expected return on plant asset = Plan assets (fair value), January 1 × Long-term expected return on plan assets
= $643,000 × 9%
= $57,870
Now put these values to the above formula
So, the value would equal to
= $61,000 + $91,000 - $57,870
= $94,130
The static budget, at the beginning of the month, for Onyx Décor Company, follows: Static budget: Sales volume: 1,100 units; Sales price: $70.00 per unit Variable costs: $32.00 per unit; Fixed costs: $38,000 per month Operating income: $3,800 Actual results, at the end of the month, follows: Actual results: Sales volume: 980 units; Sales price: $75.00 per unit Variable costs: $35.00 per unit; Fixed costs: $34,200 per month Operating income: $5,000 Calculate the flexible budget variance for sales revenue.
Answer:
The flexible budget variance for sales revenue are 30 Units.
Explanation:
It means that with this cost structure the company still could have lower sales until 950 Units and still keep the result forecasted in the Budget.
Variance
BDGT - REAL - REAL
Sales 1.100 - 980 - 950
Unit $70 - $75 - $75
Cost $32 - $35 - $35
==============================
$41.800 $39.200 $38.000
Fixed -$38.000 -$34.200 -$34.200
Result $3.800 $5.000 $3.800
Stone Beauty, Inc. is a merchandiser of stone ornaments. The company sold 7 comma 500 units during the year. The company has provided the following information: Sales Revenue $ 554 comma 000 Purchases (excluding freight in) 304 comma 000 Selling and Administrative Expenses 66 comma 000 Freight In 13 comma 000 Beginning Merchandise Inventory 44 comma 000 Ending Merchandise Inventory 43 comma 000 What is the cost of goods available for sale for the year?
Answer:
Cost of goods available for sale 344,000
Cost of goods sold 301,000
Explanation:
cost of goods available for sale :
Is the sum of all tehcost that the firm could have sold during the period.
Is the sum of beginning inventory (goods from prior periods) and the purchase done in the period
beginning inventory + purchase
beginnning inventory 44,000
purchase = 304,000
Cost of goods available for sale 344,000
Then, cost of goods available for sale - ending inventory = COGS
344,000 - 43,000 = 301,000 COGS
Answer:
The cost of goods available for sale for the year is $317,000
Explanation:
The computation of the cost of goods available for sale for the year is shown below by applying the formula:
= Beginning Merchandise Inventory + Purchases (excluding freight in) + Freight In - Ending Merchandise Inventory
= $44,000 + $304,000 + $13,000 - $43,000
= $317,000
The remaining items which are given in the question are not be considered in the computation part because the items are used for computing the net income, not for cost of goods available for sale for the year