The one-sample t-test can be used to test if the mean FICO score is more than 720. We calculate a t statistic and compare it to a critical value at a 0.01 significance level. We reject H0 if our statistic is greater than the critical value, concluding that the mean score is greater than 720.
Explanation:In this case, the economist can use a one-sample t-test to determine if the mean FICO score of the population is greater than 720. The null hypothesis (H0) is that the population mean is 720, and the alternative hypothesis (Ha) is that the population mean is greater than 720.
First, we need to calculate the t statistic using the formula: t = (Xbar - μ) / (s/√n), where Xbar is the sample mean (737), μ is the population mean under the null hypothesis (720), s is the sample standard deviation (92), and n is the sample size (100).
After calculating, we would compare this t statistic with the t critical value at α = 0.01 level of significance. If the calculated t is greater than the critical value, then we would reject H0 and conclude that the mean FICO score is greater than 720. If it's less than or equal to the critical value, we would fail to reject H0, meaning we would have insufficient evidence to conclude that the mean score is more than 720.
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Final answer:
To determine if the mean FICO score is greater than 720, a hypothesis test is conducted using the critical value method. The test statistic is calculated and compared to the critical value at the α = 0.01 level of significance. Based on the calculations, the economist cannot conclude that the mean FICO score is greater than 720.
Explanation:
To determine whether the mean FICO score is greater than 720, we can perform a hypothesis test using the critical value method. The null hypothesis (H0) is that the mean FICO score is equal to or less than 720, while the alternative hypothesis (Ha) is that the mean FICO score is greater than 720. Using the given information, we calculate the test statistic as follows:
test statistic = (sample mean - hypothesized mean) / (standard deviation/sqrt (sample size))
Plugging in the values, we get: test statistic = (737 - 720) / (92 / sqrt(100)) = 1.847
Next, we find the critical value at the α = 0.01 level of significance. Since this is a one-tailed test and the sample size is large (n ≥ 30), we can use the normal distribution. The critical value for α = 0.01 is Z = 2.33.
Since the test statistic (1.847) is less than the critical value (2.33), we fail to reject the null hypothesis. Therefore, the economist cannot conclude that the mean FICO score is greater than 720 at the α = 0.01 level of significance.
Suppose that JB Cos. has a capital structure of 76 percent equity, 24 percent debt, and that its before-tax cost of debt is 13 percent while its cost of equity is 17 percent. Assume the appropriate weighted-average tax rate is 25 percent. What will be JB❝s WACC? (Round your answer to 2 decimal places.)
Answer:
0.1526 or 15.26%
Explanation:
Capital percent of equity (We) = 76%
Capital percent of debt (Wd) = 24%
Before-tax cost of debt (Cd)= 13%
Cost of equity(Ce)= 17%
Weighted-average tax rate is (Tx) = 25%
The weighted average cost of capital is given by the following expression:
[tex]WACC= (W_e*C_e) + (W_d*C_d*(1-Tx))[/tex]
Note that this expression accounts for the tax rate deduction.
JB's WACC is:
[tex]WACC= (0.76*0.17) + (0.24*0.13*(1-0.25))\\\\WACC=0.1526 \ or\ 15.26\%[/tex]
Takelmer Industries has a different WACC for each of three types of projects. Low-risk projects have an 8% WACC, average-risk projects a 10% WACC, and high-risk projects a 12% WACC. Which of the following projects do you recommend that the firm accept?
Project Level of Risk IRR
A Low 9.50%
B Average 8.50%
C Average 7.50%
D Low 9.50%
E High 14.50%
F High 17.50%
G Average 11.50%
a. A, B, C, D, and G
b. B, C, E, F, and G
c. A, D, E, F, and G
d. A, B, C, D, E, F, and G
Answer:
c. A, D, E, F, and G
Explanation:
In capital budgeting, the IRR rule says that you accept a project if its Internal rate of return (IRR) is greater than its cost of capital (WACC). Your evaluation of each project should be based on this rule.
For A, IRR of 9.50% is > 8% WACC of low -risk projects , so the firm should accept it.
For B, IRR of 8.50% is <10% WACC of average -risk projects , so the firm should reject it.
For C, IRR of 7.50% is <10% WACC of average -risk projects , so the firm should also reject it.
For D, IRR of 9.50% is >8% WACC of low -risk projects , so the firm should accept it.
For E, IRR of 14.50% is >12% WACC of high -risk projects , so the firm should accept it.
For F, IRR of 17.50% is >12% WACC of high -risk projects , so the firm should accept it.
For G, IRR of 11.50% is >10% WACC of average -risk projects , so the firm should accept it.
Roland has just received notification from a vendor that his clothing merchandise order has been processed and dispatched. Roland has just received a(n)A. horizontal contractual notice.B. vendor-managed inventory alert.C. advanced shipping notice.D. universal product code report.E. CPFR tag.
Answer:
C. advanced shipping notice.
Explanation:
Advanced shipping notice -
It is a form of document which give the brief information about any pending delivery , is known as the advanced shipping notice .
The use of the ASN is to inform the customers as when the shipping will take place so that the customer gets prepared for the product he or she would be receiving .
Hence , from the question ,
Roland get the Advanced shipping notice from the vendor about his order .
Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the machine and an additional $1,160 to secure it in place. The machine will be used for six years and have a $14,000 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.
Required:
1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.
Answer:
2nd January
Dr Machinery $178,000
Cr Cash $178,000
( to record the purchase of used machine)
3rd January
Dr Machinery $4,000
Cr Cash $4,000
(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).
Explanation:
- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.
- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.
The purchase and installation of the machine requires journal entries for capitalization of the equipment. This includes debiting Equipment and crediting Cash for the purchase cost as well as additional costs for wiring and installation, resulting in a total capitalized cost of $182,000.
Explanation:When recording the purchase of the machine and the subsequent expenses related to readying and installing it, we must capitalize all amounts that are necessary to get the machine ready for use. This includes the purchase price of the machine and costs associated with installation and setup. Below is the journal entry required to capture these transactions:
Dr. Equipment $178,000
Cr. Cash $178,000
This entry records the purchase of the machine, where Equipment is debited for the cash outflow, and Cash is credited.
Dr. Equipment $2,840
Cr. Cash $2,840
This captures the cost to wire electricity to the machine.
Dr. Equipment $1,160
Cr. Cash $1,160
This captures the cost to secure the machine in place.
The machine's total capitalized cost is $178,000 (purchase price) + $2,840 (wiring) + $1,160 (installation) = $182,000.
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Driver Products recently paid its annual dividend of $2, and reported an ROE of 15%. The firm pays out 50% of its earnings as dividends. The stock has a beta of 1.44. The current risk-free rate is 2.5% and the market return is 11%. Assuming that CAPM holds, what is the intrinsic value of this stock?
Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value = [tex]\frac{\textup{D1}}{\textup{(Required return-Growth rate) }}[/tex]
=[tex]\frac{\textup{2}\times(1+0.075)}{\textup{(0.1474-0.075) }}[/tex]
= 29.69 ≈ $29.70
The intrinsic value of the stock is calculated using the Capital Asset Pricing Model (CAPM) to get the cost of equity, and then applying the dividend discount model (DDM) using the calculated growth rate. The growth rate is determined based on the company's Retention Ratio and Return On Equity (ROE). Thereby, the intrinsic value of the stock in question is determined to be approximately $28.57.
Explanation:To calculate the intrinsic value of a stock, we need to first understand the cost of equity which can be calculated using the Capital Asset Pricing Model (CAPM). CAPM is given by the equation: K_e = R_f + β *(R_m - R_f), where K_e is cost of equity, R_f is the risk-free rate, β is the beta, and R_m is the market return. Inserting given values, we find K_e = 0.025 + 1.44*(0.11 - 0.025) = 0.1478 or 14.78%.
A dividend discount model (DDM) can be applied to calculate the intrinsic value of the stock. We know that the firm pays out 50% of its earnings as dividends, which means the retention ratio is also 50%, or 0.5. Since ROE is 15% and the retention ratio is 50%, the firm's growth rate (g) would be 0.15 * 0.5 = 7.5%. DDM formula is P0 = D0*(1+g) / (K_e - g), inserting values, we get P0 = 2*(1+0.075) / (0.1478 - 0.075) = $28.569, which is the intrinsic value of this stock.
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Miller Company purchased treasury stock with a cost of $15,000 during the current year.
During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $816,000.
Cash flows from financing activities for the the year total:
a. $811,000 net cash inflow.
b.$5,000 net cash outflow.
c.$781,000 net cash inflow.
d.$796,000 net cash inflow.
Answer:
c.$781,000 net cash inflow.
Explanation:
Cash flow in this situation is given by:
Cash flow = issued bonds payable - treasury stock purchases - paid dividends
Cash flow = $816,000 - $15,000 - $20,000
Cash flow = $781,000
Since the cash flow value is positive, this is a net cash inflow
Therefore, the answer is c.$781,000 net cash inflow.
The cash flows from financing activities for the year after making the necessary adjustments is $781,000. Thus, Option C. is the correct choice.
What do you mean by Cash flow from financing activity?Cash flow from financing activities (CFF) is part of the company's cash flow statement, which shows the total cash flow used to finance the company. Financial transactions include transactions involving debt, equity, and dividends.
Calculation of Cash flow from Financing activities:
[tex]\rm\,Cash \,Flow\, From \,Financing \,Activity= Issue \,of \,Bonds \,Payable -\, Dividend \,Paid - \,Purchase \,of \,Treasury \,Stock\\\\\rm\,Cash \,Flow\, From \,Financing \,Activity= \$816,000 - \$20,000 - \$15,000\\\\\rm\,Cash \,Flow\, From \,Financing \,Activity= \$781,000[/tex]
Hence, Option C. is the correct choice.
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Financial information for Forever 18 includes the following selected data: ($ in millions except share data) 2021 2020 Net income $ 182 $ 164 Dividends on preferred stock $ 34 $ 25 Average shares outstanding (in millions) 200 200 Stock price $ 11.27 $ 10.22 2-a. Calculate the price-earnings ratio in 2020 and 2021.
The price-earnings ratio for Forever 18 in 2020 is 14.7 and in 2021 is 15.2. These ratios were calculated using the provided net income, dividends on preferred stock, average shares outstanding, and stock price.
Explanation:Calculating the price-earnings ratio, also known as the P/E ratio, simply involves taking the market value per share (stock price) and dividing it by the earnings per share (EPS). Here, EPS is calculated as (Net income - Dividends on preferred stock) divided by the Average number of shares outstanding.
So for 2020, the EPS would be ($164 million - $25 million)/200 million = $0.695 per share. Thus, the P/E ratio equals $10.22/$0.695 = 14.7.
For 2021, the EPS would be ($182 million - $34 million)/200 million = $0.74 per share. Therefore, the P/E ratio = $11.27/$0.74 = 15.2.
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On August 1, 1958, first-class postage for a 1-ounce envelope was 4 cents. On August 1, 2007, a first-class stamp for the same envelope cost 41 cents. What was the annual compound increase in the cost of first-class postage during the 49-year period?
Answer:
4.86%
Explanation:
Given that,
First-class postage for a 1-ounce envelope = 4 cents
On August 1, 2007
A first-class stamp for the same envelope cost = 41 cents
Period, n = 49 years
[tex]F=P(1+i)^{n}[/tex]
[tex]41=P(1+i)^{49}[/tex]
[tex]\frac{41}{4}=(1+i)^{49}[/tex]
[tex]10.25\ cents=(1+i)^{49}[/tex]
[tex]1.0486=(1+i)[/tex]
i = 1.0486 - 1
= 0.0486 or 4.86%
Therefore, the interest rate is 4.86%.
The annual compound increase in the cost of first-class postage during the 49-year period was approximately 4.57%.
Explanation:To calculate the annual compound increase in cost, we can use the compound interest formula. The formula is:
A = P(1 + r/n)^(nt)
Where:
A is the final amountP is the initial amount (4 cents in 1958)r is the annual interest raten is the number of times interest is compounded per year (1)t is the number of years (49)In this case, the initial amount is 4 cents and the final amount is 41 cents, so we need to solve for r. Rearranging the formula, we get:
r = (A/P)^(1/nt) - 1
Substituting the given values, we have:
r = (41/4)^(1/(1*49)) - 1
Calculating this expression gives us r = 0.0457, or 4.57%.
Therefore, the annual compound increase in the cost of first-class postage during the 49-year period was approximately 4.57%.
Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a
dividend of $2 today and then you sold it for $100. What was your dividend yield and capital
gains yield on the investment?
A) 2%, 2%
B) 0%, 2%
C) 3%, 2%
D) 2%, 0%
Answer:
D) 2%, 0%
Explanation:
Dividend yield is the percentage of the share price that was paid as dividends:
[tex]DY = \frac{dividends}{share \ price}\\DY=\frac{2}{100}=2\%[/tex]
Capital gains yield is the percentage increase in the share price after a period. Since, in this case, the initial and final share price are both $100 there was no capital gains yield, CGY = 0%.
Therefore, the answer is D) 2%, 0%
Given the following information and assuming straight-line depreciation to zero, what is the payback period for this project? The project requires an initial investment of $900,000; has a life of 6 years; produces cost savings of $190,000 per year; has a tax rate of 35 percent; and a discount rate of 9 percent. The fixed assets will be sold for $50,000 at the end of year 6.A) 2.54 yearsB) 3.67 yearsC) 3.93 yearsD) 5.10 yearsE) The project never pays back.
Answer:
E) The project never pays back.
Explanation:
Please see attachment.
You purchase a 30-year, zero-coupon bond for a price of $25. The bond will pay back $100 after
30 years and make no interim payments. The annual compounded return (geometric average
return) on this investment is ________.
A) 4.49%
B) 5.68%
C) 4.02%
D) 4.73%
Answer:
annual compounded return = 4.73 %
so correct option is D) 4.73%
Explanation:
given data
present value = $25
future value = $100
time = 30 year
to find out
annual compounded return
solution
we get here annual compounded return that is express as
annual compounded return = [tex](\frac{FV}{PR} )^{\frac{1}{t}} - 1[/tex] ............1
here t is time period and FV is future value and PV is present value
so put here all value in equation 1 we get
annual compounded return = [tex](\frac{100}{25} )^{\frac{1}{30}} - 1[/tex]
annual compounded return = 0.047294
annual compounded return = 4.73 %
so correct option is D) 4.73%
A Bloomberg researcher is seeking a representative sample (of size N = 50) of Fortune magazine's list of the 500 largest industrial corporations. She randomly decides to begin at company number 4 and then select every 10th company until 50 have been selected. The researcher is using what type of sampling plan?
a. Convenience sampling
b. Stratified sampling
c. Judgment sampling
d. Simple random sampling
e. Systematic sampling
Answer:
b. Stratified sampling
Explanation:
Stratified sampling is a method of sampling that divides the total population into tiers, or strata, and then randomly selects individuals from each tier. Since members of the same tier have similar characteristics, this method is useful to better represent the totality of the population. In this situation, the researcher selects a company from each 10-companies tier within the 500 largest industrial corporations; therefore, stratified sampling was used.
Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $330. Instructions Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2020. Actual warranty costs (inventory) incurred in 2020 were $17,000.
Answer:
Explanation: Journal Entries for the sale.
DR: Bank/Cash. $800,000
CR: Sales. $783,000
CR: Warranty on sales. $17,000
Being sales of 200 color printers at $4,000 per piece.
DR: warranty expense. $330
CR: Warrant on sales. $330
Being actual expense incurred on warranty for year 2020
Answer:
Amount Debit Credit
Cash $800,000
Sales Revenue $800,000
Warranty Expense $17,000
Cash $17,000
Warranty expense $49,000
Warranty liability $49,000
Explanation:
Given:
Price For each copier=$4,000
Number of copiers sold=200
Maintenance cost on each copier during warranty=$330
Actual Warranty cost=$17,000
Required:
Prepare entries.
Solution:
Amount Debit Credit
Cash ($4,000*200) $800,000
Sales Revenue ($4,000*200) $800,000
Warranty Expense $17,000
Cash $17,000
Warranty expense[($330*200)-17,000] $49,000
Warranty liability $49,000
Assuming an organization wants to motivate employees through promotions, and assuming enough opportunities for promotions are available, the organization would want toA. increase the overlap from one level to the next.B. reduce its compa-ratio to less than 1.C. implement a broadband pay structure.D. limit the overlap from one pay range to the next.E. use a fixed interval promotion policy.
Answer:
D. Limit the overlap from one pay range to the next.
Nelson Manufacturing has the following data:
Variable costs are 60% of the unit selling price.
The contribution margin ratio is 40%.
The unit contribution margin is $500.
The fixed costs are $500,000.
Which of the following does not express the break-even point?
a. $500,000 ÷ $500 = X
b. $500,000 ÷ .40 = X
c. $500,000 + .40X = X
d. $500,000 + .60X = X
Answer:
c. $500,000 + .40X = X
Explanation:
Please see attachment
The dollar value of the marginal product of labor is the:A.amount of output produced by the first unit of labor hired by a firm.B.extra output that is produced by hiring an additional unit of labor.C.value of the output produced by all the workers in a firm.D.contribution of an additional unit of labor to a firm's revenue.
Answer:
The answer is letter D.
Explanation:
The dollar value of the marginal product of labor is the contribution of an additional unit of labor to a firm's revenue.
Loring Company had the following data for the month:Variable costs per unit:Direct Materials $4Direct Labor 3.20Variable Overhead 1Variable selling expense 0.40Fixed Overhead is $4,000 per month; it is applied to production based on normal activity of 2,000 units. During the month, 2,000 units were produced. Loring started the month with 300 units in beginning inventory, with unit product cost equal to this months unit product cost. A total of 2100 units were sold during the moth at price of $14. Selling & Administrative expense for the month, all fixed totaled $3,600.1. What is operating income under variable costing?2. What is the unit product cost under absorption costing?3.What is operating income under absorption costing?
Answer:
(1) $3,740
(2) $10.20
(3) $3,540
Explanation:
(1) Contribution Margin:
= Revenue - Variable expense
= (2,100 × $14) - (Direct material + Direct labor + variable overhead + variable selling expense)
= $29,400 - ($8,400 + $6,720 + $2,100 + $840)
= $29,400 - $18,060
= $11,340
Total fixed expense = Fixed overhead + Fixed Selling & Administrative expense
= $4,000 + $3,600
= $7,600
Operating income under variable costing:
= Contribution Margin - Total fixed expense
= $11,340 - $7,600
= $3,740
(2) Unit product cost under absorption costing:
= Direct material + Direct labor + Variable overhead + Fixed overhead
= $4 + $3.20 + $1 + (4,000 ÷ 2,000)
= $4 + $3.20 + $1 + $2
= $10.20
(3) Gross margin = Revenue - cost of goods sold
= $29,400 - (2,100 × $10.20)
= $29,400 - $21,420
= $7,980
Total selling and Administrative expense:
= Variable selling + Fixed selling
= $840 + $3,600
= $4,440
Operating income under absorption costing:
= Gross margin - Total selling and Administrative expense
= $7,980 - $4,440
= $3,540
Final answer:
Operating income and unit product cost calculations vary between variable and absorption costing. Variable costing includes only variable costs, while absorption costing also includes fixed production costs in unit product costs.
Explanation:
Understanding the calculation of operating income under different costing methods, specifically variable costing and absorption costing, is essential for analyzing a company's financial performance. Under variable costing, only variable production costs are considered in the cost of goods sold, while fixed overhead is treated as a period expense. On the other hand, under absorption costing, both variable and fixed production costs are included in the cost of goods sold, affecting unit product cost and operating income differently.
Given the Loring Company's situation, we can calculate the operating income under variable costing by subtracting all variable costs (including variable selling expense) and fixed costs from total sales. For absorption costing, we must first determine the unit product cost by adding fixed overhead per unit to the variable costs. Then, we calculate operating income by subtracting cost of goods sold (which includes fixed overhead) and fixed selling and administrative expenses from total sales.
Marketing Inc. offers to create a campaign to increase N'Ice Creamery, Inc.'s online business. N'Ice agrees to pay for the service.
These parties have :
a. no contract.
b. an express contract.
c. an implied contract.
d. a quasi contract.
Answer:
B) express contract
Explanation:
A contract exist when there is an OFFER and ACCEPTANCE. Marketing Inc made an offer, while N'Ice Creamery made an acceptance. This is an agreement with clear terms of service and payment, their discussion is binding because they have stated their conditions. Payment will be made once service is done.
After documenting the client's prescribed internal control, the auditors will often perform a walk-through of each transaction cycle.
An objective of a walk-through is to:A. Verify that the controls have been implemented (placed in operation).B. Replace tests of controls.C. Evaluate the major strengths and weaknesses in the client's internal control.D. Identify weaknesses to be communicated to management in the management letter.
Answer:
A. Verify that the controls have been implemented (placed in operation).
Explanation:
The companies should have a fair policy of internal controls. It should basically have a policy which regulates and monitors all the transactions of each individual. It shall certainly be developed so that the work of one individual is monitored by the other automatically.
When the documentation is done, of such policies and controls by the auditor, he shall satisfy himself by counter checking that the procedures and practices laid are implemented properly.
So that there are no loop holes, and the management shall be held responsible for any procedure documented and not followed practically.
The main objective of a walk-through during an audit is to verify that the internal controls have been implemented and are in operation. It helps auditors confirm that procedures are not just documented but also effective in practice, fulfilling a key aspect of quality audits.
Explanation:The objective of performing a walk-through of each transaction cycle after documenting the client's prescribed internal control is primarily A. Verify that the controls have been implemented (placed in operation). This process involves auditors tracing transactions through the accounting system to understand and observe the application of the client's internal control procedures. During a walk-through, auditors assert that the controls are not only formally documented but are being actually followed in day-to-day operations.
It's essential for auditors to observe the control environment in action to ensure that the documented controls align with practical application. This is distinct from the duties of replacing tests of controls or evaluating all strengths and weaknesses in the client’s systems. While they may identify weaknesses, the primary goal is to verify implementation. Furthermore, during a quality audit, it is key to confirm that the organization's quality system is adequately documented and the established procedures are generating effective and consistent results.
A well-executed walk-through reassures that the quality standards, documented in policies and procedures, are not only in place but are also being adhered to and effective in practice. It also ensures the organization is well-prepared for external audits, including those by regulatory agencies such as the FDA in the case of certain industries.
Moon Bakery Company is considering automated baking equipment that costs $500,000 installed and would replace the present hand-made production method. The present equipment has a zero book and salvage value. The new equipment will not increase revenues but will reduce operating costs from a current level of $600,000 to $300,000 per The depreciation of the new equipment will be $73,000 per year. What are the annual incremental net cash flows? Assume a marginal tax rate of 40 percent.
Answer:
$209,200
Explanation:
Please see attachment
Edward Dorsey is a part-time employee, and during the biweekly pay period he earned $395. In addition, he is being paid a bonus of $300 along with his regular pay. If Dorsey is single and claims two withholding allowances, how much would be deducted from his pay for FIT? (There are two ways to determine his deduction—do not use table for percentage method.)
A) Wage Bracket Table _____________$
B) Percentage Method ______________$
Answer
The answer and procedures of the exercise are attached in the following image.
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.
Which of the following is the main intent of the service delivery system matrix?
A) It illustrates the continuum of interaction between marketing and operations.
B) It illustrates the strategic choices in service delivery system design.
C) It illustrates the interaction between customer wants/needs and the service recovery plan.
D) It illustrates the complexity and customization required of provider-routed processes.
Answer:
The answer is letter C
Explanation:
It illustrates the interaction between customer wants/needs and the service recovery plan.
__________ is when vendors ship merchandise prepackaged in the quantity required for each store to the distribution center.A. Traditional shippingB. Vertical merchandisingC. Combination warehousingD. Cross-dockingE. Horizontal merchandising
Answer:
D. Cross - docking
Explanation:
Cross - docking -
It is the method by which unloading of the materials takes place from the any car or semi - trailer trucks and then loading the respective materials directly into the rail cars , trailers , trucks , having very little or no storage between them , is known as cross - docking .
From the question , the correct term for the given statement is cross - docking .
Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay period show that employees earned wages totaling $53,000 but that employee income taxes totaling $7,600 and FICA taxes totaling $2,775 were withheld from this amount. The net pay was directly deposited into the employees’ bank accounts. Assume Lightning Electronics also must pay $280 of unemployment taxes for this pay period. Prepare the journal entry or entries that Lightning would use to record the payroll. Include both employee and employer taxes. (If no entry is required for a transactio
Final answer:
To record the payroll, Lightning Electronics would debit Wages Expense for total wages, credit withholdings for income and FICA taxes, and credit Cash for net pay. They would also record the employer's payroll taxes including their share of FICA and unemployment taxes as additional payroll expenses.
Explanation:
When Lightning Electronics is recording its payroll, it should make the following journal entries to account for the wages, employee withholdings, employer taxes, and net pay:
Debit Wages Expense for the total wages ($53,000).Credit Employee Income Taxes Payable for the total income taxes withheld ($7,600).Credit FICA Taxes Payable for the total FICA taxes withheld ($2,775).Credit Cash for the amount of net pay deposited to employees' bank accounts ($42,625).Debit Payroll Tax Expense for the total employer payroll taxes (FICA and unemployment taxes).Credit FICA Taxes Payable for the employer's share of FICA taxes ($2,775).Credit Unemployment Taxes Payable for the unemployment taxes ($280).The employer is responsible for matching the employee's FICA tax contribution and for paying additional employer taxes like the unemployment tax. The net pay represents the money you have left when your paycheck makes its way to you after all required taxes are taken out.
Economists normally assume that the goal of a firm is to:
(i) sell as much of its product as possible.
(ii) set the price of the product as high as possible.
(iii) maximize profit.
Answer:
(iii) maximize profit.
Explanation:
(i) Selling as much as possible is not always a viable business model, regardless of how much it sells, a firm might not perform well if it is selling its products at a low profit margin or even at a loss.
(ii) Setting an extremely high price for a product may decrease demand and open up opportunities for competitors to enter the market selling at a lower price; an optimal equilibrium price is preferable to the highest possible price.
(iii) According to economists, this should be the main goal of a firm. Be it by reducing costs or increasing revenue, maximizing profits should be the aim of a business.
Further From Center has 10,700 shares of common stock outstanding at a price of $41 per share. It also has 240 shares of preferred stock outstanding at a price of $92 per share. There are 570 bonds outstanding that have a coupon rate of 6 percent paid semiannually. The bonds mature in 22 years, have a face value of $1,000, and sell at 104.5 percent of par. What is the capital structure weight of the preferred stock?
Answer:
capital structure weight is = 0.349
Explanation:
Given data:
Number of share 10,700
per share price is $41
number of share of stock is 240
per share price of preferred stock is $92
number of bonds 570
coupon rate is 6% paid semiannually
mutuarity life of bonds is 22 year
face value of bonds is $1000
selling price 104.5% per par
common stock [tex]= 10,700 \times $41 = 438,700[/tex]
Preferred stock [tex]= 240\times 92 = 222,080[/tex]
Bonds [tex]= 570\times 1000\times 1.045 = 595,650[/tex]
Total amount = 438,700 + 222,080+595,650 = 1,256,430
capital structure weight is [tex]= \frac{438,700}{1,256,430} = 0.349[/tex]
In 2011, none of Jarrod’s friends owned a North Face jacket and Jarrod did not have a strong preference for North Face jackets. In 2012, many of Jarrod’s friends owned a North Face jacket, and Jarrod did have a strong preference for North Face jackets. The change in Jarrod’s preferences from 2011 to 2012 can be best explained by the __________ effect.winterbandwagonswitchingduopolistsocial
Answer:
bandwagon
Explanation:
Bandwagon effect -
It is the psychological method by which people tries to copy or do the same work , just by looking other people doing the same , regardless of their own thinking , behaviours and beliefs , is known as bandwagon effect .
It is also known as herd mentality , which simply means , copying things of that other people are doing , this phenomena is observed during the bull markets .
Hence , from the given example in the question , the correct term is bandwagon effect .
Jarrod's increased preference for North Face jackets in 2012 is best accounted for by the bandwagon effect, which is influenced by a desire to conform to social trends or norms.
Explanation:The change in Jarrod’s preferences from 2011 to 2012 can be best explained by the bandwagon effect. The bandwagon effect can be characterized by the tendency of individuals to do or believe things because many other people do or believe the same. It is often used in the context of consumer behavior and is a well-known concept in social psychology. For instance, when Jarrod saw many of his friends owning North Face jackets in 2012, he might have felt an amplified desire to own one as well to fit in with his peer group. This desire for conformity could have led to a strong preference for North Face jackets, thereby illustrating the influence of the bandwagon effect.
Learn more about Bandwagon Effect here:https://brainly.com/question/34612602
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You have been hired by the No Hassle Collection Agency to provide economic advice. The owner of the agency tells you that No Hassle's only variable input is the number of collection agents. The hourly wage for collection agents is $40.00. The marginal revenue product curve for collection agents reaches its maximum at five workers with a marginal revenue product of $34.00. What advice would you give this firm?
A. Shut down immediately, as the firm is not able to cover all of its variable costs.
B. Produce as much as possible so as to maximize the difference between the wage paid to collection agents and their marginal revenue product.
C. Hire five collection agents so as to minimize the amount of money the firm will lose.
D. Increase the wage rate paid to collection agents so that their marginal revenue product will increase.
Answer:
A. Shut down immediately, as the firm is not able to cover all of its variable costs.
Explanation:
Unfortunately, the company contribution is negative. Even at maximum revenue it cannot cover the variable cost needed to produce this revenue. Therefore, is not possible to make a gross profit to afford the rest of the cost. Currently, the company has their fixed cost and the loss from operations.
If it shut down, it will stop the loss from operations and only leave the fixed cost.
Rihanna Company is considering purchasing new equipment for $507,300. It is expected that the equipment will produce net annual cash flows of $57,000 over its 10-year useful life. Annual depreciation will be $50,730. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.)
Answer:
8.9 years
Explanation:
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $263,000
And, the annual net cash flow is $57,000
Now put these values to the above formula
So, the value would equal to
= ($507,300) ÷ ($57,000)
= 8.9 years
The depreciation expense is ignored
Final answer:
The cash payback period for Rihanna Company's new equipment, with an initial cost of $507,300 and net annual cash flows of $57,000, is approximately 8.9 years.
Explanation:
To compute the cash payback period, we need to determine how long it will take for the equipment to generate enough cash flow to cover its cost. Here, we have an initial investment of $507,300 and annual net cash flows of $57,000.
The calculation is straightforward: divide the initial investment by the annual cash flow:
Payback Period = Initial Investment / Annual Cash Flows
Payback Period = $507,300 / $57,000
Payback Period ≈ 8.9 years
We round the result to one decimal place, which gives us a cash payback period of 8.9 years.
Larimore Company prepares bank reconciliations that adjust to the correct balance of cash, based on the following: Outstanding checks $ 177 Note collected for Larimore by bank 550 Bank service charges 27 Check written for $98 incorrectly recorded in books at $89; check cleared the bank for $98 9 NSF check 82 Unadjusted book balance 3,299 Deposits in transit 192Determine the adjusted cash balance.
Answer:-
$3,731
Explanation:
The computation of the adjusted cash balance is shown below:
= Unadjusted book balance + Note collected for Larimore by bank - Bank service charges - correctly amount recorded - NSF checks
= $3,299 + $550 - $27 - $9 - $82
= $3,731
The correctly amount would be
= $98 - $89
= $9
All other transactions are related to the bank balance. So, we do not consider it