Answer:
The correct answer is option D.
Explanation:
The American government provides subsidies to its farmers. These subsidies reduce the cost of production for the farmers and they are able to produce more at a lower price.
As a result, the consumers prefer agricultural products from the US, since they are cheaper than the domestically produced products in the developing countries.
Since their goods are not sold as much, the domestic producers are left with surplus and have to sell their products at a lower price.
That is why developing countries want the US government to reduce agricultural subsidies.
You recently were hired as a front line debt collection agent for a debt collection service in Michigan. Your boss assigns you to a fairly new client. That client shares with you several items: account ledgers showing overdue balances, checks that "bounced" or were returned for insufficient funds, and a list of dates of purchases. Most of the purchases were made more than 6 years ago. Michigan has a six year statute of limitations for the collection of debt, meaning that after six years, one cannot successfully bring a lawsuit to recover old debt. You talk to your boss who instructs you to go ahead and contact the debtors with the standard letter that offers to settle the outstanding debt for 75% of the amount owed. The letter also indicated that failure to either accept the settlement offer within 20 days, or pay off the full amount after day 20 but before day 45, would result in the filing of a lawsuit to collect the debt. As a new collection agent, you know that the Fair Debt Collection Practices Act governs behavior in the industry. Explain why this requested behavior may violate the act.
The requested behaviour may violate the act because the Act forbids debt collectors from using unfair or abusive methods to collect debts. The request of this debt collection agency is unjust because Michigan has a six-year statute of limitations on debt collection.
What is the debt collection?Debt collection is a regulated activity that occurs when a creditor hires an outside company to recover past-due payments.
The given requested behaviour of asking the client to “either accept the settlement offer within 20 days, or pay off the full amount after day 20 but before day 45, failing to do so will result in the filing of a lawsuit to collect the debt” violates the Fair Debt Collection Practices Act.
This happened because the Act prohibits debt collectors from using unfair or abusive language to collect the debt.
Therefore, The debt collection agency's request is unjust because Michigan has a six-year statute of limitations on debt collection.
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Marvin Corporation has the following information reported on the balance sheet as of December 31, 2017 Common Stock, $10 par value (authornized 20,000 shares) $90,000 Treasury Stock (6,000 shares) $30,000 Based on the information above, how many shares of common stock are outstanding? O A. 9,000. B. 6,000. O C. 3,000 O D. 60,000 Click to select your answer O Type here to search
Answer:
How many shares of common stock are outstanding?C. 3,000
Explanation:
Treasury stock, are those that the company repurchase from the market and keep it in the company, in this case the company keep the shares in the accounting and the shares could be reissued in the future.
The company issued 9,000 shares, it is reflected in the Common Stock account, $90.000 / $10 = 9,000.
Then in the Treasury Stock account are registered the shares that the company repurchases from the market, these are, 6,000 shares.
Finally the total Common Shares outstanding are 3,000.
HR Industries (HRI) has a beta of 1.8, while LR Industries' (LRI) beta is 0.6. The risk-free rate is 5.5%, and the required rate of return on a stock with a beta of 1 is 12.5%. The expected rate of inflation built into rRF falls by 1.5 percentage points, the real risk-free rate remains constant, the required return on the market falls to 10.5%, and all betas remain constant. After all of these changes, what will be the difference (in percentage points) in the required returns for HRI and LRI? A. 3.8% B. 0.9% C. 1.5% D. 2.4% E. 3.5%
Answer:
None of above options are correct. 7.8% .
Explanation:
Rf = 5.5% - 1.5% = 4%
Rhri = 4% + 1.8*(10.5% - 4%) = 15.7%
Rlri = 4% + 0.6*(10.5% - 4%) = 7.9%
Difference = 15.7% - 7.9% = 7.8%
The difference (in percentage points) in the required returns for HRI and LRI is 7.8%
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
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.
Director independence and non-interlocking directorships are desirable traits of top-ranked boards. What does this mean?
O Directors can serve on the board of directors of other related companies.
O Directors are free of all ties to the CEO and the company.
O The CEO can serve as a director on the other director boards.
O Top managers cannot be on the board of directors.
Answer:
This means that Directors are free of all ties to the CEO and the company.
Explanation:
Director Independence means a director on the board of directors of an organization should have no ties or links to the organization or any member of that organization.
Non-interlocking directorship means that a director in a firm should not be a director, or part of the management team, in another competing firm.
Top-ranked boards would prefer to avoid interlocking directorship when appointing a board member, and also that an independent director selected to be part of the board, has no previous ties to the company or any of its employees.
The International Trade Union Confederation's main objectives include all of the following except:A) Consolidate and merge international unionsB) Facilitate consultation between international unionsC) Improve communication between international unionsD) Improve cooperation between international unions
Answer:
A. Consolidate and merge international unions.
Modern economic growth:
Multiple Choice:
has been experienced by all countries around the world.
makes a country's output per person rise at a compounded rate.
refers to the phenomenon when a country's total output rises.
started occurring during the time of the Roman Empire.
Answer:
Makes a country's output per person rise at a compounded rate.
Explanation:
Modern economic growth has led to compound rate of financial development, or the compound development rate, and the output per person which is measured by GDP per capita. Modern Economic growth has made numerous changes and has helped to improve the output ratio per person. This implies that the speed of development is being doubled by a base that incorporates past GDP development, with substantial impacts after some time.
Bellingham Company produced 4,200 units of product that required 7 standard direct labor hours per unit. The standard variable overhead cost per unit is $2.70 per direct labor hour. The actual variable factory overhead was $77,470. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer:
$1,910 unfavorable
Explanation:
The computation of the variable factory overhead controllable variance is shown below:
= Standard variable factory overhead - Actual variable factory overhead
where,
Standard variable factory overhead equals to
= 4,200 units × 7 standard hours per unit × $2.70 per hour
= $79,380
And, the other items values would remain the same
Now put these values to the above formula
So, the value would be equal to
= $79,380 - $77,470
= $1,910 unfavorable
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
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
You have been asked to use the sales comparison approach to determine the market value of a single-family residence that is in a high crime area. The house has 2 bathrooms and a pool. To perform your analysis you have obtained the following comparables:
Comparable 1: Located in a low crime area with 2 bathrooms and no pool. Recently sold for $170,000.
Comparable 2: Located in a low crime area with 3 bathrooms and no pool. Recently sold for $185,000.
Comparable 3: Located in a high crime area with 3 bathrooms and no pool. Recently sold for $135,000.
Comparable 4: Located in a low crime area with 2 bathrooms and a pool. Recently sold for $180,000.
What is the value of the subject property?
a. $120,000b. $130,000c. $135,000d. $140,000e. None of the above(show work)
Answer:
The correct answer is A that is $120,000.
Explanation:
The value of one or single bathroom is computed as:
Value of single bathroom = Category 2 cost - Category 1 cost
= $185,000 - $170,000
= $15,000
The value of the subject property is computed as:
Value of the subject property = Category 3 cost - Value of single bathroom
= $135,000 - $15,000
= $120,000
Galt Industries has just issued a callable, $1000 par value, five-year, 6% coupon bond with semiannual coupon payments. The bond can be called at par in three years or anytime thereafter on a coupon payment date. If the bond is currently trading for $978.94, then its yield to maturity is closest to:
Answer:
6.50%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $978.94
Face value = $1,000
PMT = 1,000 × 6% ÷ 2 = $30
NPER = 5 years × 2 = 10 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 6.50%
Peter cappelli's argument about the skills gap stresses that companies should restructure the way they think about the _______ step of the strategic human resource management process
Answer:
In relation to the skills gap, Peter Cappelli argues that companies should restructure the way they think about the "recruitment and selection" step of the strategic human resource management process
Explanation:
The skill gap is a gap that exists between the on-the-job skills an employer expects an employee to have and the skills the employee actually has.
According to Peter Cappelli, organizations should consider changing the way they approach recruiting and selecting new employees.
He argues that there are qualified candidates with relevant skill sets, that organizations do not find due to certain strict recruitment and selection requirements.
He believes that if organizations restructure their recruitment processes, become less picky and reduce the use of certain screening softwares that filter out such qualified candidates, then there will be less complaints about the skills gap.
Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. Which of the following accurately describes the effect of an investment tax credit? Check all that apply.
A. Trade balance increases Exchange rate decreases
B. Real interest rate increases National saving increases
C. Net capital outflow decreases Domestic investment decreases True or False:
D. As a result of the investment tax credit, exports to other countries decrease. True False
Answer:A. Trade balance increases Exchange rate decreases
C. False
D. False
Explanation:
A subsidy on domestic investment will encourage more investment from the populace as the cost of investment will reduce which invariably means more goods are produce, export increase, trade balance increases and exchange rate decrease.
The real Interest rate will equally fall due to the subsidy and domestic investment increases.
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?
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.
In the life cycle theory of consumption, the motive to save is:A.To be able to open a business.B.To become wealthy.C.To leave a large endowment for one's children.D.To build a family dynasty.E.To afford to retire.
Answer: To afford to retire
Explanation: The life cycle theory was established by Modigliani in 1957. This theory states that a rational individual manages its expenses with the motive of saving sufficient amount till his or her retirement.
As per this theory, the individual consumes almost same amount of income which leads to the situation of borrowing in times of low income and savings in times of high income.
However the minor differences leads to savings high than borrowings in times of low income the individual significant lowers his or her capital expenditure.
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
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
High-Tech Computer Services provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 300 customers and earned $60,000 in revenue. The individual business segment provided services to 400 customers and earned $35,000 in revenue. The variable costs for the corporate and individual business segments amounted to $33,000 and $25,000, respectively. In addition, the fixed costs of the company amounted to $8,000. Calculate the contribution margin from each corporate customer. (Round your answer to the nearest cent.)
A) $5.00
B) $25.00
C) $90.00
D) $63.33
Answer:
C) $90.00
Explanation:
Solution:
Contribution Margin per customer = Revenues per customer - Variable Expenses per customer
Revenues per customer = 60,000 / 300 = 200
Variable Expenses per customer = 33,000 / 300 = 110
Contribution Margin per customer = 200 - 110
= $90.00
Therefore Correct Answer = Option C (Contribution Margin from each corporate customer = $90.00
Answer:
c $90.00
Explanation:
Contribution Margin per customer = Revenues per customer - Variable Expenses per customer
On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Please see attachment
Explanation:
The attachment necessary journal of the given information . The attachment aims to present the necessary journal entry about On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest.
Answer:
Explanation:
DR Machinery (asset) 90000
CR loan (liability) 9000.
machinery purchased on loan
DR instalment payable 22500
DR Interest expense 4500
CR Bank 27000
loan instalment and interest expense payment
interest calculation = 90000 × 5/100 = 4500
DR instalment payable 22500
DR Interest expense 3375
CR Bank 25875
loan instalment and interest expense payment
interest calculation = (90000 - 22500)× 5/100 = 3375
DR instalment payable 22500
DR Interest expense 2250
CR Bank 24750
loan instalment and interest expense payment
interest calculation = (90000 - 22500 - 22500)× 5/100 = 2250
DR instalment payable 22500
DR Interest expense 1125
CR Bank 23625
loan instalment and interest expense payment
interest calculation = (90000 - 22500 - 22500 - 22500)× 5/100 = 1125
Lisa Laskowski Company reports the following information at the fiscal year end of December 31, 2017:Common Stock, $0.10 par value per share $88 millionPaid-in Capital in Excess of Par Common $500 millionRetained Earnings $700 millionTotal Stockholders' Equity $1,288 millionWhat was the average selling price for the common stock issued? (Round your final answer to the nearest cent.)A. $0.57 per share.B.$0.80 per share.C.$0.10 per share.D. $0.67 per share.
Answer:
Aveerage selling of common stock is $0.67 per share
Explanation:
GIVEN DATA:
Common stock - par value is $0.10/ share
Retained earning is $700 million
common stock $88 million
paid in capital = $500
sum of stock holder equity $1288 million
Total capital paid is = (88 + 500) million = $588 million
therefore
Average selling price is[tex]= \frac{588}{880} = $0.67[/tex]per share
where [tex][ \frac{88}{0.1} = 880][/tex]
So, Aveerage selling of common stock is $0.67 per share
Yakov orders 40 cases of mescal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug. 3. Charles, a U.S. citizen, pays $1,500 for a laptop he orders from Microell (a U.S. company).Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year.Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Amount (Dollars)Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP)
Answer:
Please see attachment
Explanation:
Please see attachment
Here is the completed table:
Amount (in dollars)
Consumption $5,100.00
Investment 0
Government spending 0
Export $1,000
Import $-3,600
Net export $-2,600
GDP $2500
What is the value of GDP?
Gross domestic product is the sum of final goods and services produced in an economy in a given period.
GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable goods + Investment spending + Government spending + Net export
Net export = exports – imports
Consumption spending = $1500 + ($90 x 40) = $5,100Export = (200 x $5) = $1,000Import = ($90 x 40) = $-3,600 Net export = $-3600 + $1000 = $-2,600GDP = $5100 - 2600 = $2,500To learn more about GDP, please check: https://brainly.com/question/15225458
You have a portfolio with the following: Stock Number of Shares Price Expected Return W 525 $43 10% X 780 29 15 Y 435 94 11 Z 680 51 14 What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
The expected return of your portfolio = 12.42%
Explanation:
At first we have to determine the weight for each of the stock by multiplying number of shares by stock price.
W = 525 x $43 = $22,575
X = 780 x $29 = $22,620
Y = 435 x $94 = $40,890
Z = 680 x $51 = $34,680
Total = $120,765
Stock Capital Weight(W) Expected Return(R) W x R
W $22,575 (22,575/120,765)=0.1869 10 1.8693
X $22,620 (22,620/120,765)=0.1873 15 2.8095
Y $40,890 (40,890/120,765)=0.3386 11 3.7246
Z $34,680 (34,680/120,765)=0.2872 14 4.0208
= 12.42%
To calculate the expected return of a portfolio, multiply the number of shares of each stock by its price and its expected return. Sum up the products for all the stocks and divide by the total number of shares in the portfolio. The expected return of the portfolio is $6.11.
Explanation:To calculate the expected return of a portfolio, you need to multiply the number of shares of each stock by its price and its expected return. Then, sum up the products for all the stocks and divide by the total number of shares in the portfolio. In this case:
Expected return of stock W = 525 * $43 * 0.10 = $2,272.50
Expected return of stock X = 780 * $29 * 0.15 = $3,441
Expected return of stock Y = 435 * $94 * 0.11 = $4,670.10
Expected return of stock Z = 680 * $51 * 0.14 = $4,394.40
The total expected return of the portfolio is the sum of the expected returns of each stock, which is $2,272.50 + $3,441 + $4,670.10 + $4,394.40 = $14,778.00. Finally, divide the total expected return by the total number of shares in the portfolio:
Total number of shares = 525 + 780 + 435 + 680 = 2,420
Expected return of the portfolio = $14,778.00 / 2,420 = $6.11
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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
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.
.
When calculating your return on investment you should ignore:A) paper gains.B) losses you avoided by not buying a stock that has since decreased in price.C) dividends that have been declared on a stock you own if you have not yet received the dividend.D) paper capital losses.E) fees you are charged in the process of purchasing a security.
Answer:
B) losses you avoided by not buying a stock that has since decreased in price
Explanation:
If a stock has not been bought, there has not been a transaction involving that particular stock. Even though, in theory, you may have avoided losses by not buying a stock that has decreased in price, there hasn't been any actual gain or loss on investment related to that stock since there was no investment.
Since all other alternatives present valid parameters when calculating return on investment, the answer is B).
Fisher Co. acquired all of the outstanding preferred shares for $148,000 and 60% of the common stock for $1,281,000. Fisher believed that one of Bast's buildings, with a twelve-year life, was undervalued on the company's financial records by $70,000. Required: What is the amount of goodwill to be recognized from this purchase?
Answer:
$ 659000
Explanation:
Please see attachment
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $531,250 Cost of goods sold 280,000 Gross margin $251,250 Selling and administrative expense 195,500 Operating income $55,750 Less: Income taxes (@ 40%) 22,300 Net income $33,450 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. Required: For East Mullett Manufacturing, calculate the following: 1. Average operating assets $ 2. Margin (round to two decimal places) % 3. Turnover (round to two decimal places) 4. Return on investment (round to one decimal place)
Final answer:
The average operating assets are $425,000, the Margin is 10.49%, the Turnover is 1.25, and the Return on Investment is 13.1%.
Explanation:
To calculate the average operating assets for East Mullett Manufacturing, we take the sum of the operating assets at the beginning and end of the year and divide by two. Therefore, the average operating assets = (Operating Assets Beginning of Year + Operating Assets End of Year) / 2 = ($390,000 + $460,000) / 2 = $425,000.
To find the Margin, divide the operating income by sales and multiply by 100 to get a percentage: Margin = (Operating Income / Sales) × 100 = ($55,750 / $531,250) × 100 = 10.49%.
The Turnover, or asset turnover ratio, is calculated by dividing sales by average operating assets: Turnover = Sales / Average Operating Assets = $531,250 / $425,000 = 1.25.
Lastly, the Return on Investment (ROI) is determined by multiplying margin by turnover: ROI = Margin × Turnover = 10.49% × 1.25 = 13.11%. Since ROI is expressed as a percentage, we leave it as is, so it's 13.1% when rounded to one decimal place.
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
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.
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
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
Plato Industries' projected sales for the first six months of 2012 are given below:
Jan. $250,000 April $300,000 Feb. $340,000 May $350,000 Mar. $280,000 June $380,000
20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 30% are collected in the second month following the sale.
Cost of goods sold is 85% of sales. Purchases are made in the month prior to the sales, and payments for purchases are made in the month of the sale.
Total other cash expenses are $70,000/month.
The company's cash balance as of February 28, 2012 will be $10,000.
Excess cash will be used to retire shortminusterm borrowing (if any).
Plato has no short term borrowing as of February 28, 2012. Ignore any interest on shortminusterm borrowing.
The company must have a minimum cash balance of $40,000 at the beginning of each month.
What is Plato Industries' total cash receipts for April 2012?
A. $326,000
B. $340,000
C. $302,000
D. $300,000
Answer:
help
Explanation:
Answer:
The answer is C. $302,000.
Explanation:
We have the given information that:
+ Cash's receipt is only from sales and;
+ 20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 30% are collected in the second month following the sale.
=> Cash receipt in April 2012 = 20% * Sales of April 2012 + 50% * Sales of Mar 2012 + 30% * Sales of Feb 2012 = 20% * 300,000 + 50% * 280,000 + 30% * 340,000 = $302,000
=> So, the right choice is C. $302,000
The following information is from the annual financial statements of Nancy Company.
2013 2012 2011
Net sales $357,000 $278,000 $325,000
Account receivable, net (year-end) 52,900 49,700 46,400
What is the accounts receivable turnover ratio for 2012?
Answer:
5.79 times
Explanation:
The computation of the Accounts receivable turnover ratio
= Credit sales ÷ average accounts receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($46,400 + $49,700) ÷ 2
= $48,050
And, the net credit sale is $278,000
Now put these values to the above formula
So, the answer would be equal to
= $278,000 ÷ $48,050
= 5.79 times
Gerald orders 1,000 cupcakes from Haddock Bakers for a Christmas Eve party. However, Haddock fails to deliver the cupcakes as per the schedule mentioned in the contract, and does not send any notification to Gerald. Gerald orders the cupcakes from Marlene's Cakes that evening. This is an example of which of the following?A. Writ of replevinB. Sue for specific performanceC. Cover of a sales contractD. Seek adjustment
Answer:
The correct answer is letter "C": Cover of a sales contract.
Explanation:
A cover of a sales contract in law refers to the actions a buyer carries out to diminish the damages to his or her business because of a breach in a contract agreed with a seller. Initially, the buyer and the seller agreed in the transfer of goods or services but the seller fails. So, to avoid loses, the buyer sets a series of actions to continue with his business as if the breach has never happened.