Consider an industry in which chief executive ocers (CEOs) run rms. There are two types of CEOs: exceptinal and average. There is a fixed supply of 100 exceptional CEOs and an unlimited supply of average CEOs. Any individual capable of being a CEO in this industry is willing to work for a salary of $144,000 per year.
The long-run total cost of a rm that hires an exceptional CEO at
this salary is
CE(Q) =(144 + 1/2Q^2 if Q > 0
0 if Q = 0
where Q is annual output. The long-run total cost for a firm that hires an average CEO for $144,000 per year is CA(Q) = 144 + Q^2 of Q > 0 and 0 otherwise. The market demand curve in this market is D(P) = 7, 200 - 100P. Let n be the number of firms run by average CEOs in the industry.
a) What is the minimum e efficient scale for a firm run by an average CEO? What is the minimum level of long-run average cost for such a firm?
b) What is the long-run equilibrium price in this industry, assuming that it consists of firms with both exceptional and average CEOs?
c) At this price, how much output will a firm with an average CEO produce? How much output will a firm with an exceptional CEO produce?
d) At this price, how much output will be demanded?
e) Using your answers to parts (c) and (d), determine how many firms with average CEOs will be in this industry at a long-run equilibrium.
f) Assuming that firms bid against each other for the services of exceptional CEOs, what would you expect their salaries to be in a long-run competitive equilibrium?
Answers
Answer
The answer and procedures of the exercise are attached in the following 3 images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 3 sheets with the formulas indications.
Related Questions
Johnson Corp. has an 8% required rate of return. It’s considering a project that would provide annual cost savings of $50,000 for 5 years. The most that Johnson would be willing to spend on this project is Present Value PV of an Annuity Year of 1 at 8% of 1 at 8%
1 .926 .9262 .857 1.7833 .794 2.5774 .735 3.3125 .681 3.993A) $165,600.B) $125,910.C)$199,650.D)$34,050.
Answers
Answer:
C)$199,650
Explanation:
The computation of the spending amount is shown below:
= Annual cost savings × PVIFA (8%, 5 years)
where,
Annual cost saving is $50,000
PVIFA = 3.993
Now put these values to the above formula
So, the value would be equal to
= $50,000 × 3.993
= $199,650
Simply we multiply the annual cost saving with the PVIFA so that the true amount can come.
Fitness Bands Corporation gathered the following information: Standard Total Cost Actual Total Cost Direct materials Standard: 2,400 pints at $ 3.50/pint $8,400 Actual: 2,600 pints at $ 6.00/pint $15,600 What is the direct materials price variance?A. $2,500 unfavorable B. $1,750 unfavorable C. $1,750 favorable D. $2,500 favorable
Answers
Answer:
Nono of the answer is correct.
Explanation:
Giving the following information:
Standard Cost: 2,400 pints at $ 3.50/pint $8,400
Actual: 2,600 pints at $ 6.00/pint $15,600
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (3.5 - 6)*2,600= 6,500 unfavorable
Which of the following statements is correct regarding the predictability of analytical procedures in a financial statement auditA Relationships involving only balance sheet accounts tend to be more predictable than relationships involving income statement accounts.
B Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.
Answers
Answer:
The answer is letter B
Explanation:
Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts.
Because analytical procedures are evaluations of financial information made by study of plausible relationships among financial and nonfinancial data using models that range from simple to complex. The reason is that income statement amount is based on transactions over a period of time, but balance sheet amounts are for a moment in time. Moreover, amounts subject to management discretion tend to be less predictable.
Which of the following statements is FALSE?A) As the enterprise value represents the entire value of a firm before the firm pays its debt,to form an appropriate multiple, we divide it by a measure of earnings or cash flows afterinterest payments are made.B) We can compute a firmʹs price-earnings ratio by using either trailing earnings or forwardearnings with the resulting ratio called the trailing price-earnings or forwardprice-earnings.C) It is common practice to use valuation multiples based on a firmʹs enterprise value.D) Using a valuation multiple based on comparables is best viewed as a ʺshortcutʺ to thediscounted cash flow method of valuation.
Answers
Answer:
The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
Explanation:
Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.
Crane Company prepared a fixed budget of 40000 direct labor hours, with estimated overhead costs of $200000 for variable overhead and $90000 for fixed overhead. Crane then prepared a flexible budget at 37000 labor hours. How much is total overhead costs at this level of activity?
Answers
Answer:
$275,000
Explanation:
The computation of the total overhead cost is shown below:
= Variable overhead cost + fixed overhead cost
where,
Variable overhead cost equals to
= (Total estimated overhead cost ÷ fixed direct labor hour hours) × flexible budget labor hours
= ($200,000 ÷ 40,000) × 37,000
= $185,000
And, the fixed overhead is $90,000
ow put these values to the above formula
So, the value would be equal to
= $185,000 + $90,000
= $275,000
Melvin receives stock as a gift from his uncle. No gift tax is paid. The adjusted basis of the stock is $30,000 and the fair market value is $38,000. Melvin trades the stock for bonds with a fair market value of $35,000 and $3,000 cash. What is his recognized gain and the basis for the bonds?
Answers
Melvin's recognized gain from trading the stock is $8,000, and the basis for the bonds he received is $35,000.
Melvin's recognized gain is calculated by determining the difference between the fair market value of the stock traded ($38,000) and the basis of the stock ($30,000). Therefore, Melvin's recognized gain is:
Fair Market Value of Stock - Adjusted Basis
($38,000 - $30,000) = $8,000
Since Melvin received $3,000 cash and bonds valued at $35,000, the total value he received is $38,000.
For the basis of the bonds, the basis will be the same as the stock's adjusted basis plus recognized gain minus cash received:
Adjusted Basis of Stock + Recognized Gain - Cash Received
($30,000 + $8,000) - $3,000 = $35,000
Therefore, Melvin's recognized gain is $8,000, and the basis for the bonds is $35,000.
The following income statement is for X Company and its only two products - A and B:
Total Product A Product B
Sales $174,760 $85,650 $89,110
Variable Costs 96,836 51,390 45,446
Contribution margin $77,924 $34,260 $43,664
Fixed costs:
Avoidable 71,970 24,600 47,370
Unavoidable 31,500 5,270 26,230
Profit $-25,546 $4,390 $-29,936
Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be
Answers
Answer: The answer is $4,390
Explanation:
Product A. Product B. Total
$ $ $
Sales. 85,650. 89,110. 174,760
Less: Variable cost. (51,390) (45,446) (96,836)
------------ ----------- ------------
Contribution. 34,260. 43,664. 77,924
Less : Fixed cost
Avoidable. (24600) (47,370) (71,970)
Unavoidable. (5,270) (26,230) (31,500)
---------- ----------- ----------
Net Profit/ Loss. 4,390 profit. ( 29,936) loss (25,546) loss
Note The statement shows clearly that on the present budget, the product B shows a loss of $29,936 and this is the reason while X company is considering dropping it. Since it drop product B then X company new profit will be $4,390
Consider the case of Yellow Duck Distribution Company: Yellow Duck Distribution Company is expected to generate $180,000,000 in net income over the next year. Yellow Duck Distribution has forecasted a capital budget of $83,000,000, and it wishes to maintain its current capital structure of 70% debt and 30% equity. If the company follows a strict residual dividend policy and makes distributions in the form of dividends, what is its expected dividend payout ratio for this year?
A. 81.86%
B. 64.63%
C. 86.17%
D. 73.24%
Answers
Answer:
C. 86.17%
Explanation:
The computation of the expected dividend payout ratio is shown below:
Expected dividend pay out ratio = 100 - {(capital budget × equity ratio) ÷ (net income} × 100
= 100 - {($83,000,000 × 30%) ÷ ($180,000,000} × 100
= 100 - (24,900,000 ÷ $180,000,000) × 100
= 100 - 13.83%
= 86.17%
All other information which is given is not relevant. Hence, ignored it
The expected dividend payout ratio for Yellow Duck Distribution Company is calculated by deducting the equity portion of the capital budget from net income and then dividing by net income to find the ratio. The payout ratio comes to 86.17%, making option C the correct answer.
Explanation:Considering the case of Yellow Duck Distribution Company and its expected net income and capital budget, to find its expected dividend payout ratio under a strict residual dividend policy it is necessary to perform a calculation. The company needs to finance its capital budget proportionally with debt and equity according to its capital structure. With a capital budget of $83,000,000 and a 30% equity target, the equity portion of the capital budget would be 30% of $83,000,000, equal to $24,900,000. Since the company generates $180,000,000 in net income and will use $24,900,000 of this for capital budget financing, the amount available for dividends is the residual, in this case, $180,000,000 - $24,900,000 = $155,100,000. To calculate the dividend payout ratio, we divide the dividends by the net income: $155,100,000 / $180,000,000 = 86.17%. Therefore, option C is the correct answer.
Cyra is a musician who is contracted to perform for Vanta Blue, a local pub. Vanta Blue pays her an advance as part of the contract. But Cyra never shows up to perform at Vanta Blue. Vanta Blue sues Cyra for breach of contract and to request an order that Cyra carry out her contractual obligation. Which of the following remedies is most likely to be sought by Vanta Blue in this caseA. specific performanceB. substantial performanceC. tender performanceD. injunctionE. condition subsequent
Answers
Answer:
Specific performance.
Explanation:
In this case, Vanta Blue even pay upfront although Cyra end up not showing up. Cyra is suppose to perform as it is dealed.
A sole proprietorship:
A. provides limited liability for its owner.
B. involves significant legal costs during the formation process.
C. has an unlimited life.
D. has its profits taxed as personal income.
E. can generally raise significant capital from nonowner sources.
Answers
Answer:
D. has its profits taxed as personal income.
Explanation:
Characteristics of a sole proprietorship :
1. It Is Owned by one person
2. The onwer has an unlimited liability.
3. It doesn't usually have an unlimited life. It usually ends with the death of the owner.
4. Profits are taxed as personal income.
5. It is very easy to form. It requires little legal cost.
In the decision support system (DSS) environment, a__________is responsible for supplying information on what a model does, what data inputs it accepts, how the model's output should be interpreted, and what assumptions go into creating and using the model.
Answers
Answer:
The correct answer is: Model Builder
Explanation:
A Model Builder is an application useful to create and edit models. It is a visual programming language for workflows that combine sequences (input) that become feeds for a different tool (output), being used as data stored. This application can also be used along with other programming languages such as Python.
Imagine an economic debate among five presidential candidates. At the time of the debate, the government announces that the economy has entered a recession. Assuming each candidate makes one statement about the economy, can you tell whether he or she is a classical or a Keynesian economist?
Answers
Presidential candidates can be understood as aligning more with Keynesian or Classical Economics based on their views on government intervention in the economy in response to a recession. Keynesians support active measures such as tax cuts or increased government spending, while Classical Economists favor letting the market adjust naturally.
Explanation:In understanding whether a presidential candidate aligns with Classical or Keynesian Economics, it's crucial to pay attention to their respective views on government intervention in the economy. Keynesian Economists, as developed by John Maynard Keynes, believe in periods of recession, the government should intervene through expansionary fiscal policies that would stimulate consumption and investment, thereby shifting the aggregate demand curve to the right. These measures could include tax cuts or direct increases in government spending.
On the other hand, Classical Economists advocate for a self-regulating economy where markets freely adjust to periods of highs and lows without government intervention. If a candidate supports robust government intervention to combat the recession such as boosting aggregate demand via increased government spending or tax cuts, they are more in line with Keynesian Economics. If they oppose this and advocate for minimal intervention, let the economy self-regulate and adjust naturally, they tend closer to Classical Economics.
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A presidential candidate's response to a recession could potentially indicate whether they lean more towards Keynesian economics (favoring government intervention) or classical economics (advocating minimal intervention). Metrics could include mention of tax cuts, government spending, or managing aggregate demand.
Explanation:Yes, it is possible to infer whether a presidential candidate is a classical or a Keynesian economist based on their responses to economic issues such as a recession.
A Keynesian economist typically believes that government intervention can help stabilize the economy during a recession by managing aggregate demand.
For example, if a candidate suggests the use of expansionary fiscal policy, such as tax cuts to stimulate consumption and investment, or direct increases in government spending to boost aggregate demand, they are likely following Keynesian principles.
On the other hand, a classical economist would generally advocate for minimal government intervention, trusting in the natural ability of the market to self-correct.
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An investor wants to determine the safest way to structure a portfolio from several investments. Investment A produces an average annual return of 14% with a variance of 0.025. Investment B produces an average rate of return of 9% with a variance of 0.015. Investment C produces an average rate of return of 8% with a variance of 0.010. Investments A and B have a covariance of 0.00028, and investments A and C have a covariance of -0.006. Investments B and C have a covariance of 0.00125.
a. Suppose the investor wants to achieve at least a 12% return. What is the least risky way of achieving this goal? Round the answers for portfolio investments to one decimal place and portfolio variance to four decimal places. Investment A % B % C % Variance
b. Suppose the investor regards risk minimization as being five times more important than maximizing return. What portfolio would be most appropriate for the investor? Round the answers for portfolio investments to one decimal place and portfolio variance to four decimal places. Investment A % B % C % Variance
Answers
Answer:
If minimizing the risk is important according to the solver report the way of investing is A=41.9% ,B=15.34% and C =42.76%
Explanation:
Please see attachment
Clothing Frontiers began operations on January 1 and engages in the following transactions during the year related to stockholders’ equity. January 1 Issues 600 shares of common stock for $40 per share. April 1 Issues 100 additional shares of common stock for $44 per share.
Required:
a) Record the transactions, assuming Clothing Frontiers has no-par common stock.
b) Record the transactions, assuming Clothing Frontiers has either $1 par value or $1 stated value common stock.
Answers
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $24,000 (600 shares × $40)
To Common Stock $600 (600 shares × $1)
To Additional Paid-in Capital in excess of par - Common Stock $23,400
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
2. Cash A/c Dr $4,400 (100 shares × $44)
To Common Stock $100 (100 shares × $1)
To Additional Paid-in Capital in excess of par - Common Stock $4,300
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
A disadvantage of the fixed-period inventory system is that:
(A) it involves higher ordering costs than the fixed quantity inventory system.
(B) since there is no count of inventory during the review period, a stockout is possible.
(C) additional inventory records are required.
(D) orders usually are for larger quantities. the average inventory level is decreased.
Answers
Answer:
The correct answer is letter "B": since there is no count of inventory during the review period, a stockout is possible.
Explanation:
The fixed-period inventory system, also known as a periodic inventory system, only updates the organization’s inventory balance when an actual physical count of the inventory is necessary. Most companies only carry out a physical inventory count once every quarter or year, being this the reason why this system is called "fixed-period". However, this could lead to a company stockout at an unexpected period when the count was not carried out yet.
The main disadvantage of the fixed-period inventory system is that there is no continuous monitoring of inventory, meaning a stockout (running out of an item in stock) is possible despite the regular review schedule.
Explanation:The main disadvantage of the fixed-period inventory system is option (B), it is that there is no count of inventory during the review period, which means a stockout - a situation where an item is out of stock - is possible. Unlike the fixed quantity system where orders are placed to replenish inventory to a specific level, the fixed-period system operates on a review schedule. With this, inventory levels are not continuously monitored, which may lead to possible shortages, especially if demand unexpectedly increases.
Options (A), (C), and (D) are generally not disadvantages associated with the fixed-period system. The costs, record keeping, and order quantity depend on organization practices and resources and doesn't directly affect the fixed-period nature of the inventory system.
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Western Wear Clothing issues 3,000 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming the issue price is $11 per share, record the issuance of common stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answers
Answer:
The journal entry for the issuance of the common stock is shown below:
Explanation:
Cash A/c.............................................Dr $33,000
Common Stock A/c........................Cr $30
Paid in Capital A/c...........................Cr $32,970
Working Notes:
Cash = Number of shares × Issue Price
= 3,000 × $11
= $33,000
Common Stock = Number of Shares × Par Value
= 3,000 × $0.01
= $30
Paid in Capital = Cash - Common stock
= $33,000 - 30
= $32,970
The appropriate journal entry to record the transaction is: Debit Cash $33,000; Credit Common Stock $30; Credit Paid in Capital $32,970
Journal entryBased on the information given the journal entry to record the transaction is:
Western Wear Clothing journal entry
Debit Cash $33,000
(3,000 × $11)
Credit Common Stock $30
(3,000 × $0.01)
Credit Paid in Capital $32,970
( $33,000 - $30)
Inconclusion the appropriate journal entry to record the transaction is: Debit Cash $33,000; Credit Common Stock $30; Credit Paid in Capital $32,970.
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A restaurant chain hires two new restaurant managers. One manager is a woman, and one is a man. Both candidates are equally qualified for their positions. The restaurant chain owner wanted to save money and so he offered the job to the woman at a salary $10,000 lower than what he offered the man. This is a violation of The Equal Pay Act of 1963. Which entity, if notified, could enforce the Equal Pay Act of 1963 on behalf of these employees?a. Chamber of Commerce b. Small Business c. Administration d. Equal Employment Opportunity e. Commission
Answers
Answer:
The answer is letter A. Chamber of Commerce
Explanation:
Because the chamber of commerce opposes pay discrimination and supports equal employment opportunity and strong enforcement of the Equal Pay Act of 1963 and the Title VII of the Civil Rights Act of 1964.
Answer:
The correct answer is letter "D": Equal Employment Opportunity Commission.
Explanation:
President John F. Kennedy (1917-1963) signed the Equal Pay Act of 1963 (EPA) to ban any type of discrimination on gender-based salaries. The U.S. enforces the EPA through the Equal Employment Opportunity Commission (EEOC) which is the largest federal agency responsible for enforcing civil rights laws in the workplace regarding discrimination on grounds of race, color, religion, gender, age, national origin or sexual orientation.
Assume the standard deviation of the U.S. market portfolio is 18.2%, the standard deviation of the non-U.S. portion of the world portfolio is 17.1%, and the correlation between the U.S. and non-U.S. market portfolios is .47. Suppose you invest 25% of your money in the U.S. stock market and the other 75% in the non-U.S. portfolio. What is the standard deviation of your portfolio?
a) 16.7% b) 15.5% c) 17.1% d) 18.6%
Answers
Answer:
b) 15.5%
Explanation:
Let U.S. market portfolio be represented by variable "U"
And let Non- U.S. market portfolio be represented by variable "N"
σP = SQRT [ w²U*σ²U + w²N*σ²N + 2*wS* wN*σU*σN*correl. ]
whereby,
w= weight of...
σ² = variance of...
σP=SQRT[0.25²*0.182² + 0.75²*0.171² + 2*0.25* 0.75* 0.182* 0.171* 0.47 ]
σP = SQRT[ 0.002070+ 0.0164 + 0.005485]
= SQRT(0.023955)
= 0.15477 or 15.5%
= As a percentage, the standard deviation of your portfolio is 15.5%
Herman, who is not a dependent, states he wishes to claim EITC this year for his 35-year-old dependent child. Both reside in the U.S. Herman states that the child lives with him, is not married, is disabled, and has not worked during the year. What should Herman's Tax Professional do to determine if the child can qualify Herman for EITC? Enter Herman's child on his return and identify him as a disabled qualifying child. Advise the client of the tax definition of disabled, and apply sound judgment and common sense to see if the definition is met. Ask for proof of the child's income. Explain to Herman that a 35-year-old child is too old to be a qualifying child for EITC
Answers
Answer:
Herman's tax professional should "Advise the client of the tax definition of disabled, and apply sound judgment and common sense to see if the definition is met."
Explanation:
Earned Income Tax Credit (EITC) is a refundable tax credit that can be earned by low and middle income workers, especially those who have children.
According to EITC guidelines, a parent can claim EITC on behalf of a disabled child and there is no age limit for such a child to quality for EITC. However;
• The child must be totally and permanently disabled such that he cannot work or engage in any activity to earn income.
• A doctor's report has to be provided to confirm that the child is permanently disabled.
Herman's tax professional must therefore carefully explain these requirements to Herman, and also apply sound judgement and common sense to see if Herman's child meets the requirements.
Herman's Tax Professional should explain the tax definition of disabled to assess if Herman's 35-year-old child can be considered a disabled qualifying child for EITC, despite their age. The professional needs to verify that the child meets all IRS criteria, including residency and financial dependency status.
Explanation:Herman, who is not a dependent, inquires about claiming the Earned Income Tax Credit (EITC) for his 35-year-old dependent child, who is disabled and has not worked during the year. Given these circumstances, Herman's Tax Professional should first advise Herman of the tax definition of disabled and assess if the child meets this definition. Although at first glance, it may appear that a 35-year-old child is too old to qualify for EITC, the IRS allows exceptions for disabled qualifying children regardless of their age, provided they meet other requirements such as living with the taxpayer in the United States for more than half the tax year and not providing over half of their own support.
Therefore, the tax professional should not outright dismiss the claim but instead, systematically evaluate the child's situation against the IRS criteria for a qualifying child for EITC purposes. Proof of the child's income, or lack thereof, may also be required to confirm they did not have earnings that would disqualify them from being considered a dependent for the purposes of claiming the EITC.
.
A firm’s profit margin is 5 percent, its debt/assets ratio is 56 percent, and its dividend payout ratio is 40 percent.
If the firm is operating at less than full capacity.
Then sales could increase to some extent without the need for external funds, but if it is operating at full capacity with respect to all assets, including fixed assets, then any positive growth in sales will require external financing.
Would this be True or False and why?
Answers
Answer:
The given statement is FALSE.
Explanation:
It will only be till sustainable growth rate that the firm will not require external financing. The debt /ratio demands resources to sustain the operation, which are not powered by the profit margin.
For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth or expansion. These undistributed profits are referred to
1. ascurrent assets.
2. owners' equity.
3. retained earnings.
4. dividends payable
Answers
Answer:
3. retained earnings.
Explanation:
When a company earns profit, taxes are deducted to find the net profit or net earnings. From these, it pays dividends at a certain dividend payout ratio; which is usually dividends/ net profit. Whatever remains is reinvested back into the company for funding potential profitable projects and other expansions and are referred to as retained earnings. This gives the retention rate which is basically (1 - payout ratio).
Service level is:A) the probability of stocking out.B) the probability of not stocking out.C) something that should be minimized in retail.D) calculated as the cost of a shortage divided by (the cost of shortage + the cost of overage) for single-period models.E) B and D
Answers
Answer:
E) B and D
Explanation:
Service levels are basically the term used to calculate the measures performance of the system. There are goals set, and the service level defines the percentage for which the goals shall be achieved.
The probability that the stock will not be less as compared to the level required.
The formula for calculating the service level is the cost of shortage divided by the total cost of shortage along with the total cost associated with the overage. This is because even keeping excess will be expensive.
One element in preparing a financial plan for a client is to determine the appropriate type and amount of life insurance. If a client is conservative, 30 years old, and married with 2 young children, whose income is unpredictable, the IA may recommend what type of life insurance policy?
Answers
Answer:
Permanent Life Insurance Policy
Explanation:
Permanent Life Insurance Policy is a flexible insurance policy that allows policy holders to borrow from their insurance policy (policy loan). Furthermore, withdrawal up to the total premium amount paid into the policy is allowed.
Tamara Tools, Inc. wishes to earn a 30% return on its $100,000 investment in equipment used to produce T-squares for carpenters. Based on estimated sales of 20,000 T-square tools next year, the costs per unit would be as follows:Variable cost$15.00Fixed selling and administrative costs2.00Fixed manufacturing cost3.00At how much per unit should T-squares be priced for sale?A. $21.50B. $20.00C. $16.50D. $15.00
Answers
Answer:
A. $21.50
Explanation:
The computation of the per unit price is shown below:
= (Total cost + expected profit) ÷ (number of units sold)
where,
Total cost equal to
= (Variable cost per unit + Fixed selling and administrative costs per unit + Fixed manufacturing cost per unit) × (number of units sold)
= ($15 + $2 + $3) × 20,000
= $400,000
The expected profit would be
= $100,000 × 30%
= $30,000
And, the number of units sold is 20,000
Now put these values to the above formula
So, the per unit would equal to
= ($400,000 + $30,000) ÷ (20,000)
= $21.50
Quality of working life programs were implemented largely to deal with problems associated with:A. Job control unionismB. Worker dissatisfactionC. Management favoritism and biasD. Poor communication between management and labor
Answers
Answer:
B. Worker dissatisfaction
Explanation:
There are several reasons for job dissatisfaction, some of them include poor environment, poor management, unethical acts sometimes.
All of cases lead to worker dissatisfaction, so in order to remove the dissatisfaction in workers the quality of working life has to be improved which provides for better working lifestyle to workers. And this ultimately results in the satisfaction among workers towards the work culture they are offered.
Thus, in the current circumstance the work culture is improved and accordingly implemented so that to erase the worker's dissatisfaction.
Jensen Automotive produces alternators for American-made cars. They generally use a static budget with the following costs based on 8,000 units per month: Indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000. If Jensen wanted to create a flexible budget for 9,000 units, what value would they record for variable costs?
A : $70,875
B : $52,875
C : $66,375
D : $91,125
Answers
Answer:
The correct answer is C.
Explanation:
Giving the following information:
They generally use a static budget with the following costs based on 8,000 units per month: Indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000.
Unitary variable costs= (22,000 + 25,000 + 12,000)/8,000= 59,000/8,000= 7.375
Units= 9,000
Total variable cost= 9,000*7.375= 66,375
The first step in the project control process for measuring and evaluating project performance is to ch13 Select one: a. Determine the project objectives. b. Determine the project deliverables. c. Analyze the project budget. d. Set a baseline plan e. Review the project priority matrix.
Answers
Answer:
The correct answer is (D)
Explanation:
One of the most significant perspectives to be considered in connection is to frame a benchmark plan. Execution estimation and target-setting are essential to the development procedure, however a pattern plan is basic and is considered as an initial step. While numerous private companies can run themselves easily without target-setting, however every organisation must have a plan and a way to execute those plan.
Carrie, age 55, is an employee of Rocket, Inc. (Rocket). Rocket sponsors a SEP IRA and would like to contribute the maximum amount to Carrie’s account for the plan year. If Carrie earns $14,000 per year from Rocket, what is the maximum contribution Rocket can make on her behalf to the SEP IRA?
A. $3,400.
B. $3,500.
C. $3,500 plus a catch up of $6,000.
D. $53,000.
Answers
Answer:
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Explanation:
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Assume material A calls out material B. Material A has a stock quantity of 20. Material A has a demand for 100 due on 7/2 and there is an order for 80 with a due date of 7/2 and start date of 6/25. What is the requirement date that will be generated for product B
_____(Enter your answer as a date in the format M/DD; eg 8/1 or 7/12)
Answers
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The requirement date for material B depends on the lead time for its production and availability. If the lead time is negligible, then material B would be required by 6/25 to meet the demand for material A due on 7/2.
Explanation:The requirement date for material B is determined by the need date of material A and any lead time required for material B to be produced, transported, and made ready for use in producing material A. Given that material A has a demand of 100 units due on 7/2 and there is an order for 80 units with the same due date of 7/2 and a start date of 6/25, we must consider the lead time necessary for the procurement or production of material B. If the lead time is not provided, it is impossible to accurately determine the requirement date for material B. However, if we assume that material B is readily available or the lead time is negligible, material B would theoretically be required by the start date of the order for material A, which is 6/25.
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Atlas Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,000 were put into production. Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000, and selling and administrative costs totaled $396,000. The company manufactured 8,400 television sets during the month. Assume that there were no beginning or ending work in process balances. What was the total product cost for last month?
Answers
Answer:
$1,925,000
Explanation:
Given that,
Direct Material = $550,000
Direct Labor = $880,000
Over Head = $495,000
selling and administrative costs = $396,000
Television sets manufactured during the month = 8,400
Total product cost for last month:
= Direct Material + Direct Labor + Over Head
= $550,000 + $880,000 + $495,000
= $1,925,000