Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Baker. Labor costs will go from $1.90 to $2.40 per unit. In addition, their material costs have fallen from $6.82 to $5.82. Assume all period costs as reported on Baldwin's Income Statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product Baker would need to be sold next round to break even on the product?

A.759

B.874

C.1,047

D.848

Answer:

Letter A is correct. Face morale and motivation problems.

Explanation:

A company with a high degree of formalization is a company with a vertical organizational structure. Vertical management is represented by a classic business structure, based on the principle of top-down authority and command and a fixed organization chart.

Being an inflexible organizational model, there are some disadvantages, such as difficulty in interaction between areas and teams, communication failure due to communication noise, which can lead to the creation of moral conflicts and also the lack of motivation of employees, which due to Organizational rigidity is not so active in the process of contributing ideas and suggestions to organizational objectives, as decision making is centralized and concentrated at the top of the hierarchy.

Answer:

a) EOQ = 494 units

b) Annual Holding cost = $988

c) Annual order cost = $988

Explanation:

See images to get the explanation and computation:

a) EOQ = 494 units

b) Annual Holding cost = $988

c) Annual order cost = $988

A cost is the worth of money that has been expended to produce something or provide a service and is therefore no longer available for use in production, research, retail, and accounting. In the case of an acquisition cost, the money spent on the acquisition is considered the cost.

Fixed and variable costs are the two main categories of expenses incurred by enterprises. Variable costs change with output, whereas fixed costs do not. Overhead costs are another name for fixed expenses. They must be paid whether a company produces 100 or 1,000 widgets.

A cost is an outlay needed to create, market, or prepare an item for regular usage. In other terms, it's the cost incurred to produce a good, buy inventories, sell goods, or prepare equipment for use in a commercial activity.

Any system for allocating expenses to a business component is known as costing. Costing is frequently used to establish costs for customers, distribution channels, employees, regions, products, product lines, processes, subsidiaries, and whole businesses.

Learn more about cost, here

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Answer:

d-193,806

Explanation:

Please see attachment

Based on Chester's turnover rate and the additional cost of recruiting, the total recruiting cost for Chester would be D. $193,806.

The total recruiting cost for Chester can be found by the formula:
= (Recruiting base spending + Current year spending + Additional spending) x Number of employees next year

Number of employees next year:

= Current employee number x Turnover rate

= 468 x 6.3%

= 29.484

Recruiting cost is:

= (1,000 + 5,000 + 500) x 29.484

= $193,806

In conclusion, option D is correct.

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Answer:

Project A should be accepted as it has less payback period

Explanation:

In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:

For Project A

In year 0 = $1,000

In year 1 = $600

In year 2 = $300

In year 3 = $200

In year 4 = $100

In year 5 = $500

If we sum the first 2 year cash inflows than it would be $900

Now we deduct the $900 from the $1,000 , so the amount would be $100 as if we added the third year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $200

So, the payback period equal to

= 2 years + $100 ÷ $200

= 2.5 years

For Project B

In year 0 = $10,000

In year 1 = $5,000

In year 2 = $3,000

In year 3 = $3,000

In year 4 = $3,000

In year 5 = $3,000

If we sum the first 2 year cash inflows than it would be $8,000

Now we deduct the $8,000 from the $10,000 , so the amount would be $2,000 as if we added the third year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $3,000

So, the payback period equal to

= 2 years + $2,000 ÷ $3,000

= 2.67 years

For Project C

In year 0 = $5,000

In year 1 = $1,000

In year 2 = $1,000

In year 3 = $2,000

In year 4 = $2,000

In year 5 = $2,000

If we sum the first 3 year cash inflows than it would be $4,000

Now we deduct the $4,000 from the $5,000 , so the amount would be $1,000 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it

And, the next year cash inflow is $2,000

So, the payback period equal to

= 3 years + $1,000 ÷ $2,000

= 3.5 years

So, Project A should be accepted as it has less payback period

Project A and B have payback periods within the required 3 years, while Project C has a payback period exceeding 3 years, therefore only projects A and B would be accepted.

To calculate the payback period for each project, we must assess how long it takes for the initial investment to be recovered through the project's cash inflows. The payback period is the length of time required to recover the cost of an investment.

For Project A:

Year 1: Inflow of $600, remaining balance is $400 (1000-600).

Year 2: Inflow of $300, remaining balance is $100 (400-300).

Year 3: Inflow of $200, the remaining balance is recovered and the payback period is within 3 years.

For Project B:

Year 1: Inflow of $5,000, remaining balance is $5,000 (10000-5000).

Year 2: Inflow of $3,000, remaining balance is $2,000 (5000-3000).

Year 3: Inflow of $3,000, exceeding the remaining balance; thus, the payback period is within 3 years.

For Project C:

Year 1: Inflow of $1,000, remaining balance is $4,000 (5000-1000).

Year 2: Inflow of $1,000, remaining balance is $3,000 (4000-1000).

Year 3: Inflow of $2,000, remaining balance is $1,000 (3000-2000).

It is only by the end of Year 4, with another inflow of $2,000, that the remaining balance is recovered, making the payback period for Project C over 3 years.

Given a required payback period of 3 years, only projects A and B would be accepted as their payback periods are within this timeframe.

To find the net operating income for Year 1 in the Portland Division, we need to determine the margin for Year 1. Given that the margin for Year 2 was 150% of the margin for Year 1, we can solve for the margin of Year 1 and calculate the net operating income.

To find the net operating income for Year 1, we need to determine the margin for Year 1.

We know that the margin for Year 2 was 150% of the margin for Year 1. Let's assume the margin for Year 1 is x.

From the given information, we can write the equation: 1.5x = Margin for Year 2.

Next, we can find the margin for Year 2 by multiplying the turnover and margin.

From the given information, we have: 2 * x = Margin for Year 2.

Solving these equations simultaneously, we get x = 1, and the margin for Year 1 is 1.

Therefore, the net operating income for Year 1 is $192,000 (1 * $192,000 = $192,000).

Answer:

Explanation:

Capital markets are majorly used for long- term fixed assets, making a company use it over for several years , also with maturities greater than one year. On the other hand money markets are short-term markets, so firms using these would be in need of funds for less than a year. Transactions in short-term or marketable securities take place in the money market

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Answer:

$12,500.

Explanation:

Please see attachment.

The maximum employee deferral contribution to Maxine’s SIMPLE account for this year is $6,000.

The maximum employee deferral contribution to Maxine’s SIMPLE account for this year can be calculated using the employer's matching policy. ABC Incorporated matches all employee deferrals 100% up to a 3% contribution. Maxine's annual income is $200,000, so her maximum employee deferral contribution for this year would be 3% of $200,000, which is $6,000.

Answer:

$96.84

Explanation:

The computation of the stock price after three years are shown below:

= (Third-year dividend × growth rate) ÷ (Required rate of return - growth rate)

= ($2.69 × 1.08)  ÷ (11% - 8%)

= ($2.9052) ÷ (3%)

= $96.84

The growth rate equal to

= 1 + growth rate

= 1 + 8%

= 1.08

We simply apply the growth model so that the after three years stock price can be correctly computed

Final answer:

The stock price after three years is calculated using the Dividend Discount Model for a perpetuity, considering the given dividends and expected growth rate, resulting in a value of $96.12.

Explanation:

The question asks to calculate the worth of a stock after three years, given the dividends for the first three years and an expected perpetual growth rate thereafter. The dividends for year 1 are $1.80, year 2 are $2.12, and year 3 are $2.69. After year 3, dividends are expected to grow at a rate of 8% per year indefinitely. The required return for the stock is 11%. To find the stock price after three years, we will use the Dividend Discount Model (DDM) for a perpetuity which considers the dividend growth. The formula for the value of the stock at the end of year 3, which is before applying the growth rate in year 4, is: P3 = D3 * (1 + g) / (r - g), where P3 is the stock price at the end of year 3, D3 is the dividend in year 3, g is the growth rate (8%), and r is the required return (11%). Substituting the given values: P3 = $2.69 * (1 + 0.08) / (0.11 - 0.08) = $2.69 * 1.08 / 0.03 = $96.12. Therefore, the stock should be worth $96.12 after three years.

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

The correct answer is option (a) $250,000.

To calculate Woodward Corporation's current income tax expense or benefit, we need to adjust the pretax book income for the reported differences. Here is the step-by-step calculation:

Assuming the tax rate is 20%, the current income tax expense is calculated as follows:

Therefore, the correct answer is (a) $250,000.

Complete Question

Woodward Corporation reported pretax book income of $1,000,000. Included in the computation were favorable temporary differences of $200,000, unfavorable temporary differences of $50,000, and favorable permanent differences of $100,000. Compute the company's current income tax expense or benefit.

a) $250,000

b) $240,000

c) $260,000

d) $230,000

Answer:

a. 16.50%

Explanation:

Find the beta as of last year using CAPM;

CAPM ; r = risk free + beta(Market risk premium)

0.125 = 0.03 + beta(0.0475)

Subtract 0.03 from both sides;

0.125-0.03 = 0.0475beta

0.095 = 0.0475beta

Divide both sides by 0.0475;

0.095/0.0475 = beta

beta = 2

Next, use CAPM again to find the new required return with a market risk premium is 4.75%+ 2% = 6.75%

r =  0.03 + 2(0.0675)

r = 0.03 + 0.135

r = 0.165 or 16.5%

Therefore, the new required return is 16.5%

Final answer:

The entries for dividends involve recording the declaration and payment of dividends on June 15 and July 10 for the first dividend, and another declaration on December 15 for the second dividend, accounting for the total shares outstanding at each date including new share issues.

Explanation:

To prepare the journal entries for the dates involving dividends for Swifty Corporation, we need to record the declaration of the dividends and the payment of the dividends.

June 15: Declaration of Cash Dividend

This entry recognizes the declaration of a $1.90 per share dividend to be paid on July 10.

July 10: Payment of Cash Dividend

This entry represents the actual payment of the dividend declared on June 15.

December 15: Declaration of Cash Dividend

Before we record the December dividend, note the increase in shares from the April and December stock issues:

This entry is to record the declaration of a $2.10 per share dividend to stockholders of record on December 31.

Nance Corporation's common stockholders received $42,000 in dividends on December 15, 2017.

The question asks how much Nance Corporation's common stockholders received in dividends on December 15, 2017 after taking into account the preferred stock dividends in arrears. To compute this, we first need to determine the dividend payout for the preferred stocks. Since the corporation has a 6% preferred stock with a par value of $20, the annual dividend per share for the preferred stocks is 6% x $20 = $1.20. Given that 20,000 shares were issued, the total annual dividend for preferred stock is $1.20 x 20,000 shares = $24,000. Taking into account the $24,000 dividends in arrears, we get a total of $24,000 + $24,000 = $48,000 to be paid to preferred stock holders.

Subtracting this from the total cash dividend declared of $90,000, we find that the common stockholders received $90,000 - $48,000 = $42,000 in dividends. The answer is $42,000.

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Answer:

The aftertax salvage value of the machine is D) $10,134

Explanation:

Hi. first, we need to find out the book value of the machine at the selling date, that is 3 years from now, and the book value is as follows.

[tex]BookValue=90,000-90,000*0.3333-90,000*0.4444-90,000*0.1482=6,669[/tex]

Since taxes are based on the profit you make by selling something, our profit is:

[tex]Profit=12,000-6,669=5,331[/tex]

Therefore, our taxes are:

[tex]Taxes=5,331*0.35=1,866[/tex]

So, the after tax salvage value of the machine is the money you received on the sale minus the taxes you have to pay, that is:

Salvage Value of the Machine = $12,000 - $1,866?= $10,134

That is option D)

Best of luck.

Answer:

1) She incurred start-up costs of $2,500.

a) Amount of start up costs immediately expensed?

$2,500, computed as follows:

1 Maximum immediate expense 5000 S 195(b)(1)(ii)

2 Total start-up costs 2500 Given In

problem

3 Phase-out threshold 50000 S 195(b)(1)(ii)

4 Immediate expense phase-out 0 (2-3)

Allowable immediate expense 2500 Lessor of (2)or-(1)-(4)

______________

2) She incurred start-up costs of $41,000

a) Amount of start up cost immediately expensed

$5000, computed as follows:

1 Maximum immediate expense 5000 S 195(b)(1)(ii)

2 Total start-up costs 41000 Given In

problem

3 Phase-out threshold 50000 S 195(b)(1)(ii)

4 Immediate expense phase-out 0 (2-3)

Allowable immediate expense 5000 Lessor of (2)or-(1)-(4)

3) She incurred start-up costs of $51,100.

a) Amount of start up cost immediately expensed

$3900, computed as follows:

1 Maximum immediate expense 5000 S 195(b)(1)(ii)

2 Total start-up costs 51100 Given In

problem

3 Phase-out threshold 50000 S 195(b)(1)(ii)

4 Immediate expense phase-out 1100 (2-3)

Allowable immediate expense 3900 Lessor of (2)or-(1)-(4)

4) She incurred start-up costs of $61,250.(Leave no answer blank. Enter zero if applicable.)

$0, computed as follows:

1 Maximum immediate expense 5000 S 195(b)(1)(ii)

2 Total start-up costs 61250 Given In

problem

3 Phase-out threshold 50000 S 195(b)(1)(ii)

4 Immediate expense phase-out 11250 (2-3)

Allowable immediate expense 0 Lessor of (2)or-(1)-(4)

5) How would you answer parts (a) through (d) if she formed a partnership or a corporation and she incurred the same amount of organizational expenditures rather than start-up costs (how much of the organizational expenditures would be immediately deductible)?

Answer:

The answers would be the same if these were organizational expenditures instead ofstart-up costs.Note, however, that organizational expenditures only apply tocorporations and partnerships and do not apply to businesses organized as soleproprietorships

Explanation:

Hope you got it :)

Juliette can immediately expense $4,200 for scenario a, $5,000 for scenario b, $1,200 for scenario c, and $0 for scenario d. If the costs were part of organizational expenses rather than start-up costs, the same principles apply.

The amount Juliette can immediately expense for her start-up costs is determined under the U.S. tax code 195, which allows a business to expense the first $5,000 of start-up costs in the year the business starts, but this $5,000 amount is reduced by the amount by which the start-up expenditures exceed $50,000.

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Final answer:

The fixed overhead costs of making the component are $6000.

Explanation:

To determine the fixed overhead costs of making the component, we need to compare the cost of making the component with the cost of buying it externally. The total cost of making the component includes direct materials, direct labor, variable overhead, and fixed overhead. We are given that the direct materials cost is $24000, direct labor cost is $6000, and the variable overhead cost is $3000. The fixed overhead cost can be calculated by subtracting the sum of the other costs from the cost of purchasing the component externally:

Fixed Overhead = Cost of Purchasing Externally - (Direct Materials + Direct Labor + Variable Overhead)

Fixed Overhead = $39000 - ($24000 + $6000 + $3000)

Fixed Overhead = $39000 - $33000

Fixed Overhead = $6000

Fixed overhead cost of making component: $6,000. Total cost of making equals external purchase cost at $39,000.

To find the fixed overhead costs of making the component, we need to determine the total cost of making the component and compare it with the cost of purchasing externally.

Given:

- Direct Materials: $24,000

- Direct Labor: $6,000

- Variable Overhead: $3,000

- Fixed Overhead: ?

- External purchase cost for 1000 units: $39,000

- Unavoidable fixed costs if purchased externally: $2,000

Step-by-Step Calculation:

1. Total Cost of Making Internally:

  - Total Variable Cost = Direct Materials + Direct Labor + Variable Overhead

  - Total Variable Cost = $24,000 + $6,000 + $3,000 = $33,000

  - Total Cost of Making = Total Variable Cost + Fixed Overhead

  - Total Cost of Making = $33,000 + Fixed Overhead

2. Total Cost of Purchasing Externally:

  - External purchase cost = $39,000

3. Equating Costs to Determine Fixed Overhead:

  - The company is indifferent between making or buying, meaning the costs are equal.

  - Set the total cost of making equal to the external purchase cost and solve for Fixed Overhead:

[tex]\[ $33,000 + \text{Fixed Overhead} = $39,000 \][/tex]

[tex]\[ \text{Fixed Overhead} = $39,000 - $33,000 \][/tex]

[tex]\[ \text{Fixed Overhead} = $6,000 \][/tex]

Answer:

The fixed overhead costs of making the component are $6,000.

Answer:

a. $395,000

Explanation:

Since the depreciating method is practiced in a straight-line basis, the equation for the value of the building as a function of the time in years (V(t)) is:

[tex]V(t) = -kt + C[/tex]

Where k is the yearly depreciation rate of $15,000 per year and C is the initial cost.

For t = 25 years, V(t) = $20,000. Thus:

[tex]V(t) = -15,000t + C\\V(25) = 20,000 = -15,000*25 +C\\C= 20,000 + 15,000*25\\C= 395,000[/tex]

The original cost of the building was $395,000

Answer:

B. 30.0%

Explanation:

Sales ratio = Fixed Assets\ Full Capacity Sales

Target FA\Sales ratio = 100 000 000/250 000 000*75%=0.3

B. 30.0%  The correct answer is B.

Answer:

4.375%

Explanation:

The formula to compute the dividend yield for common stock is shown below:

= Dividend per share  ÷ Market price per share

= $0.70 per share ÷ $16 per share

= 4.375%

It shows a relationship between the dividend per share and the market price per share so that the accurate amount of dividend yield can come.

All other information which is given is not relevant. Hence, ignored it

Answer:

Henry's maximum amount defer in public plan  is = $25000.

Explanation:

given data

age = 51

compensation = $72,000

normal retirement age = 62

unused deferrals totaling =  $21,000

to find out

How much can Henry defer into his 457(b) public plan for 2019

solution

we know that as per plan 457(b) is an Employer sponsored

and tax favored retirement savings account

so here in 2019 Employees can contribute = upto  $19000

and

Employees over age  = 50

he can  contribute additional  = $6000

and making maximum contribution limit = $25000

so here

Henry's maximum amount defer in public plan  is = $25000

Answer:

6.75%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

This is correct Present value = $976.87

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 6.5% = $65

NPER = 15 years

The formula is shown below:  

= Rate(NPER,PMT,-PV,FV,type)  

The present value come in negative  

So, after solving this,  the answer would be 6.75%

Answer:

Stock Y has overvalued and Stock Z as undervalued

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For Stock Y

= 4.85% + 1.40 × 7.35%

= 4.85% + 10.29%

= 15.14%

For Stock Z

= 4.85% + 0.85 × 7.35%

= 4.85% + 6.2475%

= 11.0975%

The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is applied in the answer

As we see the expected return of both the stock So, Stock Y has overvalued and Stock Z as undervalued

Answer:

1.  Interest coverage ratio=8.33

2. debt stockholder ratio=0.624

3. debt ratio=0.21

Explanation:

Leverage ratio is a financial tool used to determine a company's level of debt and it's ability to handle debt without going bankrupt.

1. Consider the interest coverage ratio formula;

interest coverage ratio=operating income/interest expense

where;

operating income=$260,000

interest expense= $31,200

replacing;

interest coverage ratio=260,000/31,200=8.33

2. Consider the debt to equity ratio formula;

debt to equity ratio=debt/stockholder equity

where;

debt=interest expense=$31,200

stockholder equity= $50,000

replacing;

debt stockholder ratio=31,200/50,000=0.624

3. Consider the debt ratio formula;

debt ratio=debt/assets

where;

debt=interest expense=$31,200

average assets=(beginning asset balance+ending asset balance)/2

average assets=(115,000+180,000)/2=$147,500

replacing;

debt ratio=31,200/147,500=0.21

The leverage ratio for Doug's Boat Shop, Inc. is calculated by dividing the average assets of $147,500 by the average common stockholders' equity of $50,000, resulting in a leverage ratio of 2.95.

The leverage ratio is calculated by dividing the total average assets by the average common stockholders' equity. The average assets can be found by taking the average of beginning and ending assets. In this example, the balance of the beginning asset is $115,000, and the balance of the ending asset is $180,000, so the average asset is (115,000 + 180,000) / 2 = $147,500.

Given the average common stockholders' equity during the year was $50,000, the leverage ratio would be $147,500 / $50,000 = 2.95.

After rounding to two decimal places, the leverage ratio for Doug's Boat Shop, Inc. is 2.95.

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Answer:

Consider the following calculations

Explanation:

a.) Under cumulative voting scenario,

Total number of votes available = Common Shares Outstanding × No of directors

                                            = 15 x 5 million

                                            = 75 million

As there are six candidates for the five board positions, the five candidates with highest number of votes will be elected to the board and the candidate with the least total votes will not be elected.

Minimum votes needed to ensure election =1/6 x 75 million + 1 vote to break any ties

                                                              = 12,500,001 votes

If one candidate receives 12,500,001 votes, the leftover is total 62,499,999 votes.

No matter how these votes are spread over the remaining 5 director candidates, it is impossible for each of the 5 to receive more than 12,500,001. This would require more than 5 × 12,500,001 votes, or more than the remaining 62,499,999 votes.

b.) Now, in case of straight voting,

Vote on board of directors occurs one director at a time.

=> Number of votes eligible for each director = Number of Shares Outstanding = 15,000,000

Minimum number of votes needed to ensure election is through simple majority i.e. = 15,000,000/2 + 1 = 7,500,001 votes

In cumulative voting, 5 votes are needed to ensure the election of one board member. In straight voting, 7.5 million votes are needed to ensure the election of one board member.

a. In cumulative voting, the minimum number of votes needed to ensure election of one member to the board is equal to the number of seats available. Since there are five seats on the board, the firm needs at least 5 votes to ensure the election of one member.

b. In straight voting, the minimum number of votes needed to ensure election of one member to the board is equal to half of the total number of shares plus one. In this case, half of 15 million is 7.5 million, and when we add one, we get 7.5 million + 1 = 7.5 million votes.

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Answer:

The ending cash balance on the month ended June 30 cash budget: $54,200

Explanation:

Ending cash balance = Beginning cash balance + Cash flow in - Cash flow out

In the company:

Cash flow in = Cash receipts from sales = $415,000

Cash flow out = Cash payments for purchases + Cash payments for salaries + Other cash expenses + Cash repayment of bank loan = $270,000 + $95,400 + $57,400 + $32,400 = $455,200

Ending cash balance = $94,400 + $415,000 - $455,200 = $54,200

Note: Depreciation is a non-cash accounting expense, so it doesn't involve cash flow.

Answer:

decreased by 4.5%

Explanation:

A family consumes: 10 pizzas, 7 pairs of jeans, and 20 gallons of milk.

In 2016, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon.

The family's total cost of living in 2016 is:

[tex]C_{2016} = 10*\$10 +7*\$40 +20*\$3\\C_{2016} = \$440[/tex]

In 2017, pizzas cost $8 each, jeans cost $40 per pair, and milk cost $3 per gallon.

The family's total cost of living in 2017 is:

[tex]C_{2017} = 10*\$8 +7*\$40 +20*\$3\\C_{2016} = \$420[/tex]

The change, in percentage, of a typical family's cost of living is:

[tex]R=\frac{C_{2017}-C_{2016}}{C_{2016}} \\R=\frac{420-440}{440} \\R=0.045\ or\ 4.5\%[/tex]

The cost of living decreased by 4.5%

The present value of a $1,000,000 lottery prize that pays out $50,000 annually for 20 years, taking into account a 4.25% interest rate, is approximately $577,462.86.

The present value of the lottery prize can be calculated using the formula for the present value of an ordinary annuity. An annuity is a series of equal payments made at regular intervals. The formula for the present value of an ordinary annuity takes into account the periodic payment amount, the interest rate, and the number of payment periods.

In this case, the lottery payout is an annuity with a yearly payment of $50,000, the interest rate is 4.25% (expressed as 0.0425 as a decimal), and there are 20 payment periods.

So, the formula to calculate the present value of the annuity is as follows: PV = Pmt * [(1 - (1 + r)^-n) / r]

Where:

Substituting the given values into the formula:

PV = $50,000 * [(1 - (1 + 0.0425)^-20) / 0.0425]

When you calculate the expression inside the brackets first and then multiply by $50,000, you get a present value of approximately $577,462.86.

This means that the $1,000,000 lottery prize, paid out as $50,000 per year for 20 years and discounted at an interest rate of 4.25%, is roughly worth $577,462.86 in today's dollars.

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Answer:

C. Disciplinary action without punishment

Explanation:

The act of giving a worker time off to rethink and re-adequate his course of action without suspending payments is called disciplinary action without punishment, which is an effective form of positive reinforcement and usually accompanied by reminders, recommendations and discussions between the employee and the administration.

Answer:

1. $2,200 Favorable ; $4,600 Unfavorable

2. $1,500 Unfavorable ; $2,500 Favorable

Explanation:

1. Material price variance:

= Actual quantity × Standard cost per unit-Actual cost

= (11,000 × $2.30) - ($2.10 × 11,000 )

= $2,200 Favorable

Material quantity variance:

= (Standard quantity × Standard cost per unit) - (Actual quantity × Standard cost per unit )

= (1,500 × 6 × $2.30) - (11,000 × $2.30)

= $4,600 Unfavorable

2. Labor rate variance:

= (Actual hours × Standard rate) - Actual labor paid

= (500 × $10) - $6,500

= $1,500 Unfavorable

Labor efficiency variance:

= (Standard hours × Standard rate) - (Actual hours × Standard rate )

= (1,500 × 0.50 × $10) - (500 × $10)

= $2,500 Favorable

Answer:

- $13,580

Explanation:

The preparation of the cash budget for August month is shown below:

Cash on Hand on August 1                $8,800

Add: August cash collections            $548,400

Total cash available                            $557,200

Less: Total cash payments                - $563,380

Ending cash balance                          - $6,180

Less: Minimum cash balance             - $7,400

Borrowed amount                              - $13,580