Answer:
The first is a $2,370,000 note payable which matures June 30, 2023.
The second is a $5,580,000 bond issue which matures September 30, 2024.
annual sinking fund payments of $2,570,000 in each of the years 2022 through 2026.
Year Amount of long term debt Working
2021 $0
2022 $2,570,000
2023 $4,940,000 = $2,570,000 + $2,370,000
2024 $8,150,000 = $,2,570,000 + $5,580,000
2025 $2,570,000
2026 $2,570,000
Long term debt is debt that must be paid in a period of time longer than one year. Debts that are due in less than one year are classified as current debts or liabilities. That is why there is no long term debt for 2021 (current year).
Assume the M&M with corporate taxes. The corporate tax rate is 40%. Your firm is currently unlevered with 100% equity. As of now, the value of the firm’s equity is $400K, and the firm’s cost of capital is 10%. Assume that your firm can borrow at 4% from a bank.Suppose that you decided to lever up by reducing equity and increasing debt. As the result, your firm now has $250K in debt. Your firm plans to maintain this debt amount forever. What is the present value of the interest tax shield?A. $40KB. $160KC. $80KD. $100K
Answer:
D. $100 K
Explanation:
Data provided
Debt = $250 K
Corporate tax rate = 40%
Corporate tax rate
The computation of present value of the interest tax shield is shown below:-
Present value of the interest tax shield = Debt × Corporate tax rate
= $250 K × 40%
= $100 K
Therefore for computing the present value of the interest tax shield we simply multiply the debt with corporate tax rate.
Stephanie is a 40 percent partner in the SKY Partnership. During the current tax year, the partnership reported ordinary income of $210,000 before payment of guaranteed payments and distributions to partners. The partnership paid guaranteed payments to partners Stephanie, Kirsten, and Yule of $30,000 each ($90,000 total). How much will Stephanie's adjusted gross income increase as a result of the above items?
A. $88,000
B. $48,000
C. $78,000
D. $66,000
Answer:
The answer is Option B.
$48000
Explanation:
Guaranteed payment $30,000.00
Balance distribution [($210000-$90000)*40%] $48,000.00
Stephanie's adjusted gross income $78,000.00
Less : Guaranteed Payment every year $30,000.00
Increase in Stephanie's adjusted gross income $48,000.00
A process currently services an average of 43 customers per day. Observations in recent weeks show that its utilization is about 90 percent, allowing for just a 10 percent capacity cushion. If demand is expected to be 70 percent of the current level in five years and management wants to have a capacity cushion of just 8 percent, what capacity requirement should be planned?
Answer:
The correct answer is 31 customers per day.
Explanation:
Consider the current capacity requirement as = x
Management wants to have a capacity cushion = 8%.
So the utilization is required = 100% - 8% = 92%
A process of currently services an average of 43 customers per day and utilization is 90%.
Expected Demand=70%= 70 ÷ 100 = 0.70
Current utilization = 90% = 0.90
Let Capacity requirement = X
Capacity requirement ÷ required utilization = Expected Demand rate × current service rate ÷ current utilization rate
X ÷ 0.92 = 0.70 × 43 ÷ 0.90
X = 0.70 × 43 ÷ 0.90 × 0.92
= 30.76 or 31
Needed capacity requirement is 31 customer per day.
You manage a risky portfolio with an expected rate of return of 21% and a standard deviation of 32%. The T-bill rate is 8%. Your client chooses to invest 65% of a portfolio in your fund and 35% in a T-bill money market fund. What are the investment proportions of your client’s overall portfolio, including the position in T-bills?
Answer: Treasury Bills - 35%
Stock A - 17.55%
Stock B - 23.4%
Stock C - 24.05%
Explanation:
Hello.
The question was a tad incomplete so I attached the relevant portion from a similar question as a guide.
The client already has 35% invested in T- bills so that would be the T- bill proportion.
Now we need the proportions of the other 3 stocks.
Stock A will be,
= 0.65 (proportion of total portfolio in the fund) * 0.27 (proportion of stock in fund)
= 0.1755
= 17.55% of total portfolio
Stock B will be,
= 0.65 (proportion of total portfolio in the fund) * 0.36 (proportion of stock in fund)
= 0.234
= 23.4% of total portfolio
Stock C will be,
= 0.65 (proportion of total portfolio in the fund) * 0.37 (proportion of stock in fund)
= 0.2405
= 24.05% of the total portfolio.
To check the figures we can add them up.
That would be
= 0.35 + 0.2405 + 0.234 + 0.1755
= 1
So those are the correct proportions of your client’s overall portfolio, including the position in T-bills.
Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,000 5,700 5,560 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for July are:
Answer:
The budgeted production of the units for the month of July are 5,175 units
Explanation:
The budgeted production of the units for the month of July is computed as:
Budgeted production units for July = July units + 25% of August units - Ending inventory of June
where
July units is 5,000 units
August units is 5,700
So, 25% will be:
= 5,700 × 25%
= 1,425
Ending inventory of June is 1,250 units
So, putting the units above:
Budgeted production units for July = 5,000 units + 1,425 units - 1,250 units
Budgeted production units for July = 6,425 units - 1,250 units
Budgeted production units for July = 5,175
Lopez Corporation incurred the following costs while manufacturing its product Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers 119,500 Sales commissions Factory supplies used $123,700 Advertising expense $48,000 17,800 28,200 40,600 57,600 62,600 Property taxes on plant 7,700 Delivery expense 26,200 Salaries paid to sales clerks Work in process inventory was $14,600 at January 1 and $17,500 at December 31. Finished goods inventory was $62,700 at January 1 and $50,000 at December 31. Compute cost of goods manufactured. Cost of goods manufactured s Compute cost of goods sold
Answer:
See attached file
Explanation:
A consumer products company wants more creativity in its research and development operations. The company has spent large amounts of money on creativity training sessions that have helped somewhat, but the VP of research and development believes that the fundamental work environment must be altered to foster more creativity.
Describe three conditions (other than training) that this organization should establish to increase the level of creativity in its research and development operations. Briefly explain how each condition might improve creativity.
Answer:
• Diversify the workplace
• Use creativity- and mind-stimulating games
• Use (a) flexible workplace(s)
Explanation:
1. Diversify the workplace
Employees consisting of different types of people, in terms of age, social status, race, gender and ethnicity, can help boost creativity in the workplace. Different backgrounds and experiences from the members will allow for different ideas to flow among the team. Differences will also make the team appreciate each other and make the entire team versatile.
2. Use creativity- and mind-stimulating games
Games that are open ended and not structured can help boost creativity. Each participant will have a different response which will allow more development and inventive ideas. Research can be done through guessing games that stimulate the mind or artistic games such as acting scenes, etc.
3. Use (a) flexible workplace(s)
Office space with air-conditioners and four walls may restrict the amount of creativity and result in the same, dull, exhausted ideas over time. To increase the level of creativity, the team should use different workplaces randomly for a change of scenery. One day spent at a park, the next day could be spent in a laboratory and the next could be spent in a library. Different environments can spark new, fresh ideas that can assist with research and development.
Answer:
Three conditions other than training that this organization should establish to increase the level of creativity in its research and development operations is to:
1. Get new perspectives
2. Create a flexible workplace
3. Provide Incentives for employers
Explanation:
1. Get new perspectives: be open to new ideas, do not reject changes. Ask for a fresh perspective from your employees ans external professional source because that could be the game changer.
2. Create a flexible workplace: Allow your workers to explore remote work as well as regular office work. Try to switch up the work place mechanism a bit then reconvene to brainstorm about the experience.
3. Provide Incentives for employers: A little incentive such as a time out to play, reward for exceptional work and welfare packages every now and then can foster a kindred spirit among colleagues and stimulate creativity.
The Softbank telecommunications and internet corporation prides itself on being a forward-thinking, innovative company. To market its various products, Softbank coordinates many marketing tools such as sales promotions, digital marketing, advertising, public relations campaigns, and even some guerrilla marketing with its corporate and marketing strategic message. What impact does a coordinated message have on Softbank’s target markets?
Answer:
Coordinated messages positively changes a customer perception towards a product this is because information about the product is passed through different mediums.
Explanation:
An effective advertising campaign involves the utilization of coordinated messages inorder to advertise a particular product.
An advertising campaign helps to create awareness about the product and achieve a high demand for the product in the market.
The message being passed to the customers must be in a clear and orderly manner so that they can understand better the different features of the product.
Softbank telecommunication and internet corporation market their products through different channels such as sales promotions, digital marketing, advertising, public relations campaigns. This is done inorder to pass a coordinated message about the product to a large number of audience.
_________ focus on employee behaviors, either by comparing the performance of employees to that of other employees or by evaluating each employee in terms of performance standards without reference to others.
Answer:
Behavior-oriented rating methods
Explanation:
Performance appraisal method can be defined as the assessment of an employee level of conduct on the job. It also helps to evaluate employees skills and weaknesses.
Behavior oriented rating methods is a form of appraisal method in which the level of conduct is rated by comparison of the employee performance to that of other employees.
The employee performance appraisal process is essential for organizations to improve the rate of employee productivity which leads to the growth of the organization.
Find the operating cash flow for the year for Harper Brothers Incorporated if they had sales revenue of $300,000,000, cost of goods sold of $140,000,000, sales and administrative costs of $40,000,000, depreciation expense of $65,000,000, and a tax rate of 40%.
Answer:
Operating cash flow for the year for Harper Brothers Incorporated is -$65,000,000
Explanation:
Operating Cash Flow is the total cash generated from operating business, within a specific time period.
The formula here applicable is
Operating Cash Flow= Total Revenue - Total Operating Costs
OCF= TR - TOC
The total revenue is sales revenue of $300million
Total operating cost= $140million + $40million + $65million + Tax amount which is 40% of sales revenue
40% of sales revenue is equal to 40% of $300milion = $120million
So total operating cost = $245,000,000 + $120,000,000 = $365,000,000
OCF= $300,000,000 - $365,000,000 = -$65,000,000
Final answer:
The operating cash flow for Harper Brothers Incorporated is calculated by adjusting the net income for non-cash expenses. The calculation yields an operating cash flow of $176,000,000 for the year.
Explanation:
To determine the operating cash flow for Harper Brothers Incorporated, we need to adjust the net income for non-cash expenses and changes in working capital. However, since we are not provided with changes in working capital, we will focus on the net income adjustment.
Calculating Operating Cash Flow
Start with total sales revenue: $300,000,000.
Subtract the cost of goods sold: $140,000,000.
Subtract sales and administrative costs: $40,000,000.
Add back the depreciation expense: $65,000,000 (since it's a non-cash expense).
Calculate the earnings before tax (EBT): $300M - $140M - $40M + $65M = $185,000,000.
Calculate the tax expense: $185,000,000 * 40% = $74,000,000.
Subtract the tax expense from EBT to get net income: $185M - $74M = $111,000,000.
Add the depreciation expense back to the net income to find the operating cash flow: $111,000,000 + $65,000,000 = $176,000,000.
The operating cash flow for Harper Brothers Incorporated for the year is therefore $176,000,000.
The rule of 70 applies in any growth-rate application. Let’s say you have $3500.00 in savings and you have three alternatives for investing these funds. How many years would it take to double your savings in each of the following three accounts? In all cases, give your answers to two decimals.a. a savings account earning 0.50% interest b. a U.S. Treasury bond earning 3.50% interest c. a stock market mutual fund earning 8.00% interest years years years
Answer:
(a)140 years
(b)20 years
(c)8.75 years
Explanation:
The Rule of 70 is used in accounting to estimate the duration(number of years) it will take for the initial investment (P) to double in value given a particular interest rate (r) and an annual compounding period.
The Formula for the Rule of 70 is:
[tex]\text{Number of Years to Double}=\frac{70}{\text{Annual Rate of Return}}[/tex]
(a)Savings account earning 0.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{0.5}=140 years[/tex]
(b)A U.S. Treasury bond earning 3.50% interest
[tex]\text{Number of Years to Double}=\frac{70}{3.5}=20 years[/tex]
(c)A stock market mutual fund earning 8.00% interest
[tex]\text{Number of Years to Double}=\frac{70}{8}=8.75 years[/tex]
There are ten firms in an industry. Five of the firms each have a market share of 12 percent and five of the firms each have a market share of 8 percent. The Herfindahl index is Group of answer choices 1,000. 1,040. 100. 920. none of the above
Answer:
1,040
Explanation:
The Herfindahl index is an index that is used to measure the size of firms in relation to the industry and it also shows the level of competition among the firms in the industry. The Herfindahl index is also known as Herfindahl–Hirschman Index (HHI).
The Herfindahl index is calculated by summing the square of the market share of all firms in the industry. For this question, it can be calculated as follows:
Herfindahl index = (12^2 * 5) + (8^2 * 5) = 720 + 320 = 1,040.
A company has employed two workers A and B whose productivities are 20units and 15units respectively. The wage for A is k12 whilst B's is k8. Are these two employees optimally employed?
Answer:
No they are not optimally employed
Explanation:
When comparing two employees to see if they are optimally employed we will look at the ratio of their productivity and the ratio of their wages.
Ideally the ratio of their wages should be above the ratio of their productivity for them to be optimally employed.
Productivity ratio of A and B= 15 ÷ 20= 0.75
Wage ratio of A and B= 8 ÷ 12= 0.6666
Wage ratio is less than productivity ratio so the employees are not optimally employed.
Exercise 15-2 On January 1, 2017, Klosterman Company issued $420,000, 12%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds.
Answer:
The journal entry to record the bond issuance is shown below:
Explanation:
The journal entry to record the bond issuance is as:
Cash A/c.............................................Dr $420,000
Bonds Payable A/c......................Cr $420,000
Being the bonds issued
As the bonds are issued by the company so cash is coming into the business, which is an asset and any increase in asset is debited. Therefore, the cash account is debited. And cash is received against the bonds payable, so the account of bonds payable is credited.
onas is the only history tutor in his town. He has three potential customers. Xavier is willingto pay $70 for tutoring, Yasha is willing to pay $50 and Zander is willing to pay $25. SupposeJonas has to charge the same price to each of his customers, and each student he tutors costshim $15 (which mostly consists of the opportunity cost of his time). What price will Jonasset, and what will be the consumer surplus, producer surplus, and deadweight loss? AssumeJonas has no fixed costs to operate his tutoring bu
;
Answer:
a. $25
b. & c. $45, $25, $0
Explanation:
a. To charge the same price to each of his customers, Jonas will charge the least amount= $25 (offered by Zander)
b. Consumer surplus
I) For Xavier = $70 - $25 = $45
II) For Yasha = $50 - $25 = $25
III) For Zander = $25 - $25 = $0
c. Producer Surplus
I) For Xavier = $70 - $25 = $45
II) For Yasha = $50 - $25 = $25
III) For Zander = $25 - $25 = $0
Robin waited before she bought voice over the Internet protocol (VOIP) phone service. Several friends were the first to use VOIP but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) ________________ in this product category.
Full question:
Robin waited before she bough voice over the Internet protocol (VOIP) phone service. Several friend were the first to use VOIP but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n)___________ in this product category.
A. Innovator
B. Laggard
C. Late majority
D. Early majority
E. Early adopter
Answer:
Robin is a(n) Early adopter in this product category.
Explanation:The title early adopter relates to a self or business that practices a new good, change, or technology ere others. Firms rely on early adopters to contribute feedback about product needs and to satisfy the cost of the product's analysis and improvement.
They’re usually termed as "lighthouse customers" because they work as a beam of light for the excess of the population to comprehend, which will take the technology or product mainstream. Early adopters obtain freakish admittance to a conceivably profitable new goods or technology.
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 − 25Q and the marginal cost of providing wireless services to the area is $1 per minute. What is the optimal two-part price that you would suggest to Verizon?
Final answer:
The optimal two-part price that I would suggest to Verizon is $400 per minute for calling services.
Explanation:
In order to determine the optimal two-part price that Verizon should set for calling services, we need to consider the inverse demand function and the marginal cost. The inverse demand function is given by P = 100 - 25Q, where P is the price and Q is the quantity demanded. The marginal cost of providing wireless services is $1 per minute.
To find the optimal two-part price, we need to find the quantity at which marginal revenue equals marginal cost. Marginal revenue is the derivative of the inverse demand function. So, taking the derivative of P = 100 - 25Q, we get dP/dQ = -25.
Setting dP/dQ equal to the marginal cost of $1, we have -25 = 1. Solving for Q, we find Q = 24. Substituting this value of Q into the inverse demand function, we can find the price P = 100 - 25(24) = $400.
Therefore, the optimal two-part price that I would suggest to Verizon is $400 per minute for calling services.
When the unemployment rate is at a steady state: Group of answer choices the number of people finding jobs exceeds the number of people losing jobs. the number of people losing jobs exceeds the number of people finding jobs. no hiring or firings are occurring. the number of people finding jobs equals the number of people losing jobs.
Answer:
The number of people finding jobs equals the number of people losing jobs.
Explanation:
Unemployment rate can be defined as the percentage of unemployed workers that are present in the the labor force. The Labor force of a country comprises of both employed and unemployed individuals that are present in the country. Unemployment rate can also be described as the percentage of the total workforce of a country that is yet to be gainfully employed.
High unemployment rate poses an adverse effect on the economy, it leads to an increase in crime rate this is due to the fact that unemployed individuals have no source of income to take care of their respective families and as such have to turn to the life of crime inorder to earn money.
Bonita uses the periodic inventory system. For the current month, the beginning inventory consisted of 7300 units that cost $12.00 each. During the month, the company made two purchases: 3100 units at $13.00 each and 12000 units at $13.50 each. Bonita also sold 13100 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month
Answer:
$169,514
Explanation:
[(7,300 × $12) + (3,100 × $13) + (12,000 × $13.50] ÷(7,300 + 3,100 + 12,000)
=87,600+40,300+162,000÷22,400
=289,900÷22,400
=$12.94
Hence;
$12.94 × 13,100 = $169,514
Therefore using the average cost method, the amount of cost of goods sold for the month will be 169,514
Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The firm is considering a new project that has initial costs of $350,000 and annual perpetual cash flows of $60,000. How many new shares must be issued to fund the new project
Answer:
Extra shares required is 1,314,975
Explanation:
Outstanding shares of a firm are those shares that have already been issued to the general public and finds have been received by the company in exchange.
Current price per share = (Total value of shares ÷ Number of shares) ÷ Discount rate
Current price per share= (400,000 ÷ 250,000) ÷ 0.16
Current price per share= $10
Value of firm with project= Initial cost + {(Value of outstanding stock + Annual Perpetual cash flow) ÷ Discount rate}
Value of firm with project= -350,000+ {(400,000+ 60,000)÷0.16}
Value of firm with project= $2,525,000
New price per share= 2,525,000 ÷ 250,000= $10.10
Extra amount needed for project= 2,525,000 - 400,000= 2,152,000
Extra shares required= (2,152,000 ÷ $10.10)÷ 0.16
Extra shares required= 1,314,975
On September 1, Year 1, the Central Illinois University ticket office sold $1,800,000 worth of season basketball tickets. Ten home games will be played: four games will be played during Year 1 and six games will be played during Year 2. What is the adjusted balance in Deferred Revenue account at December 31, Year 1?
Answer:
The adjusted balance in Deferred Revenue at the end of year 1 is $1,080,000.
Explanation:
Deferred revenue is also known as unearned revenue which means that income is received but not earned. In accrual basis accounting, we record revenues only after we deliver the goods or perform the services.
In this case, the $1,800,000 is received for 10 home games which means that per game we received 1,800,000/10 = 180,000.
Since only 4 games were played during the year, the revenue earned at the end of year 1 is: 180,000*4= 720,000
The remaining 6 games will be played in year 2 but we have already received the payment of games, so it will be considered as a Deferred Revenue. The amount of Deferred Revenue at the end of year 1 is:
⇒ 180,000*6 = 1,080,000
At end of Year 1, only 40% of the total basketball season games have been played so this proportion of the ticket revenue can be recognized. The remaining 60% of the ticket revenue ($1,080,000 from $1,800,000 paid) remains in the Deferred Revenue account, treated as a liability until the services (games) are fully delivered in Year 2.
Explanation:The Deferred Revenue account represents money that has been received, but for which the goods or services have not yet been delivered, hence it is treated as a liability. In this case, the Central Illinois University has sold $1,800,000 worth of season basketball tickets, with four games being played during Year 1, and six games in Year 2. At the end of Year 1, only 40% (4 out of 10) of the games would have been played.
The revenue recognized in Year 1 should therefore be 40% of $1,800,000, which equals $720,000. The remaining 60%, or $1,080,000 should be the adjusted balance in the Deferred Revenue account at the end of Year 1 (December 31, Year 1). So, the answer is $1,080,000.
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The R.C.Willey furniture store has a sale for Memorial day weekend that if you purchase products that come over $499 a 60" TV can be purchased for only $300. This sales practice is known as ________.
Answer:
The correct answer is letter "C": bundling.
Explanation:
Bundling sales refers to marketing strategies by which one good is sold along with others usually offering the second at a discount price. The objective of this approach is to increase the company's sales moreover when a purchase has already taken place. Stores also use this practice to free items stored for long periods in their inventory.
The sales practice described in the question is known as a loss leader.
A loss leader is a product sold at a low price (at or below its market cost) to stimulate other profitable sales. In this case, the R.C.Willey furniture store offers a 60" TV for only $300 if the customer purchases other products totaling over $499.
This encourages customers to spend more on other items in order to qualify for the deeply discounted TV.For example, if a customer buys a sofa and a dining table for $500, they can then purchase the 60" TV at $300, which is a significant discount from its usual price. This strategy boosts overall sales and can increase customer traffic to the store.Required information P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance January 1, Year 1 $ 32,566 End of Year 1 $ 1,792 $ 1,661 $ 131 32,435 End of Year 2 ? ? ? 32,297 End of Year 3 ? ? 145 ? End of Year 4 ? 1,640 ? 32,000
Answer:
Find attached complete schedule
Explanation:
Find attached bond amortization schedule.
In the preparing the schedule I divide $1792 first coupon interest by the face value of the bond of $32,000 ,I got 6% semiannual coupon rate
I divided the interest expense of $1661 by the carrying value at the beginning of year one of $32,566,I got 5.10% semiannual yield
What is a consequence of ending a performance appraisal interview on a negative note? Both the supervisor and employee may develop deflated egos. The supervisor who conducted the interview may develop a deflated ego. The employee whose performance was appraised may develop a deflated ego. None of these
Answer:
The correct answer is letter "C": The employee whose performance was appraised may develop a deflated ego.
Explanation:
Appraisal interviews are conducted to discuss the performance of employees. The company sets a standard of how the duties of workers must be developed and employees are evaluated based on those guidelines. The closer the employee method or woking is to the company's standards, the possibilities of scoring higher increase.
However, not all employees end up with a good score after appraisals. Those who are provided with negative notes typically develop a deflated ego since their performance was qualified as lacking. Managers must follow up on these workers to make sure they are not discouraged and that they accomplish the objectives their roles demand.
Ms. Aura is a psychic. The demand for her services is given by Q= 2,000 –10P, where Qis the number of one-hour sessions per year and Pis the price of each session. Her marginal revenue is MR= 200 –0.2Q. Ms. Aura’s operation has no fixed costs, but she incurs a cost of $150 per session (going to the client’s house).a.What is Ms. Aura’s yearly profit?Find the number of sessions that Ms. Aura will provide by equating the marginal revenue to the marginal cost of a session: setting MR = MC yields 200 –0.2Q = 150 which solves as Q = 250. The price that would generate demand for 250 sessions is $175 as 2,000 –10(175) = 250. Thus, her annual profit is 175(250) –150(250) = $6,250 per year.
Marigold Corp. sells radios for $50 per unit. The fixed costs are $545000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $35000 and variable costs will be 50% of the selling price. The new break-even point in units is:
The new break-even point in units is: $23,200
Solution:
Given,
Marigold Corp. sells radios for $50 per unit
Fixed costs = $545000
Variable costs = 60%
As a consequence of the modern electronic facilities, the fixed costs are projected to rise by $35,000 and the variable costs would be 50% of the purchase price.
Now,
The new break-even point in units is:
= $545000 + $35000
= $580,000
=> 580,000/25 = $23,200
A cap and trade system: 1. was used in nineteenth-century England to limit coal consumption. 2. encourages fair trade by limiting the amount of many vegetables that can be imported from Mexico. 3. reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases. 4. exempts Chinese imports from Food and Drug Administration regulations.
Answer:
reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases.
Explanation:
Cap and trade reduce emissions, such as those from power plants, by setting a limit on pollution and creating a market. ... It's a system designed to reduce pollution in our atmosphere. The cap on greenhouse gas emissions that drive global warming is a firm limit on pollution.
Today, cap and trade is used or being developed in all parts of the world. For example, European countries have operated a cap-and-trade program since 2005. Several Chinese cities and provinces have had carbon caps since 2013, and the government is working toward a national program.
the market-based pollution control system in which the government sets an overall limit on how much of a pollutant is acceptable from an entire industry or country and issues vouchers to pollute to each company; individual companies are then free to trade these vouchers.
Answer: 3. Reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases.
Explanation:
The Cap and Trade system is a policy that seeks to reduce the emission of gases to the environment to the barest minimum.
There is a standard or cap which companies are expected to adhere to. Noncompliance to these standards attracts fines. It is a measure that seeks to combat global warming.
Trading ensures that companies who are able to cut down on their emissions can have extra allowances or revenue which can be sold to other companies.
A local kayak outfitter has been looking over the latest data from the Census, which reported that income in the area where the outfitter is based has increased by 20%. If the outfitter then tells you that her sales increased by 10%, what would be the income elasticity of demand and how would you interpret it
Answer:
The income elasticity of demand is 0.5
The Outfitter's products are a normal good and a necessity as the YED is positive and between 0 and 1 respectively.
Explanation:
Income elasticity of demand (YED) measures the responsiveness of demand for a product to changes in income of the people. It traces how changes in income bring about a change in demand for a product. The formula for YED is,
YED = % Change in Quantity demanded / %Change in Income
YED = 10% / 20% = 0.5
The income elasticity of demand for the outfitter is a positive 0.5 which represents that the outfitters products are a normal good as the YED is positive and an increase in income bring about an increase in demand.
Moreover, am income elasticity of demand between 0 and 1 represents goods which are considered to be a necessity and the demand for these goods rises at a lower percentage than the change in income. As, the YED for the outfitter is 0.5, it is a necessity.
Answer:
a)
Income elasticity of demand = 0.5.
b)
it implies that a change in income by a given percentage would produce a 50% change in the quantity of demand.
Explanation:
The income elasticity of demand measures the degree of responsiveness of demand for a product to a change in the consumer income.
If a change in consumer income by a given percentage produces a less than a proportionate change in quantity demand , the income elasticity of demand is inelastic . It is elastic if the reverse is the case
Income elasticity of demand =
=% change in demand/ % change in income
=10%/20%
= 0.5.
it implies that a change in income by a given percentage would produce a 50% change in the quantity of demand. For example, if income decreases by 100%, the quantity demand will decrease by just 50%
At least six months before the Summer Olympic Games in Atlanta, Georgia, Stafford Fontenot and four others agreed to sell Cajun food at the games and began making preparations. On May 19, the group (calling themselves "Prairie Cajun Seafood Catering of Louisiana") applied for a business license from the county health department. Later, Ted Norris sold a mobile kitchen to them for $40,000. They gave Norris an $8,000 check drawn on the "Prairie Cajun Seafood Catering of Louisiana" account and two promissory notes, one for $12,000 and the other for $20,000. The notes, which were dated June 12, listed only Fontenot "d/b/a Prairie Cajun Seafood" as the maker (d/b/a is an abbreviation for "doing business as"). On July 31, Fontenot and his friends signed a partnership agreement, which listed specific percentages of profits and losses. They drove the mobile kitchen to Atlanta, but business was "disastrous." When the notes were not paid, Norris filed a suit in a Louisiana state court against Fontenot, seeking payment. (See Formation and Operation.) a. The first group will discuss the elements of a partnership and determine whether a partnership exists among Fontenot and the others. b. The second group will determine who can be held liable on the notes and why.
Answer:
See the explanation for the answer.
Explanation:
To be considered a partnership, a business relationship must meet the following criteria;
1, the parties must have consented to form a partnership and to share in business's profits and losses.
2. The parties must jointly own the ventures
3. The parties must have equal right to manage the operation.
a)
Here, several months before the Olympics, F and his friends agree to sell Cajun food in Atlanta and applied for a license as a group. Although, a written partnership agreement was not sign until a couple of months later. F and his friends had a oral agreement to form an association and to work together towards a common goal until they bought the mobile kitchen. The written agreement contains specific divisions of profits and losses. Thus, a partnership existed between F and his friends.
(b) In signing the notes to buy the kitchen, N received an $8,000 check drawn on "C food" account and two promissory notes as well as P as the maker. which is partnership firm of F and his friends. F was acting on behave of this partnership in this deal. Therefore, partnership is liable on the notes.
The first day of work for Prevosti Farms and Sugarhouse for all employees is February 4, 2019. February 8 is the end of the first pay period and includes work completed during the week of February 4–8. Compute the employee gross pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. The other hourly employees receive overtime pay when they work more than 35 hours in one week. Joel Schwartz has made $5,000 in case sales at a 3 percent commission rate during the 2/9 pay period. Joel Schwartz's sales are subject to commissions for the 2/22 pay period of $7,500. Remember that the employees are paid biweekly. Note that the first pay period comprises only one week of work, but the pay frequency for federal income tax purposes is biweekly.
To compute employee gross pay for Prevosti Farms and Sugarhouse, consider the standard workweek for all employees except Mary, who works 20 hours per week and receives overtime for any additional hours. Calculate regular pay for hourly employees based on standard and overtime hours. Compute Joel Schwartz's commission pay separately from employee gross pay.
Explanation:To compute employee gross pay for Prevosti Farms and Sugarhouse, we need to consider the standard workweek for all employees, except Mary Shangraw. The standard workweek is 35 hours, and any hours worked beyond that are considered overtime. For Mary Shangraw, who works 20 hours per week, any time worked past 20 hours is considered overtime. The first pay period starts on February 4, 2019, and ends on February 8, 2019. Joel Schwartz's sales commissions are calculated separately from the employee gross pay.
Let's start by calculating the regular pay for the hourly employees (excluding Mary). The regular pay is calculated by multiplying the number of regular hours worked (up to 35) by the hourly rate. The overtime pay is calculated by multiplying the number of overtime hours (if any) by 1.5 times the hourly rate. To calculate Mary's pay, we will multiply her regular hours worked (up to 20) by the hourly rate and any overtime hours by 1.5 times the hourly rate. To calculate Joel Schwartz's pay, we will multiply his total sales for the pay period by the commission rate.
Once we have calculated the regular pay, overtime pay (if applicable), and commission pay for each employee, we can sum them to get the total employee gross pay for the pay period.
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