Answer:
Average rate = $1.55
Explanation:
Normally all companies use the current rates for the transaction, revenue department and profit loss, but it is not fair to use the same current rate on different dates.
Therefore, businesses usually use average exchange rates to overcome these kinds of shortcomings.
Therefore in this example, it would be appropriate to use the average exchange rates by the parent company to find the income of the subsidiary.
As a business owner, you find that your resource prices are increasing often. Because these costs are rising, you find it necessary to change your prices frequently. This best describes: Group of answer choices money illusion. menu costs. hyperinflation. a price confusion problem. future price uncertainty.
Answer:
B. MENU COST
Explanation:
Menu cost refers is the cost incured due to rapid changes in prices. When changing prices of products or services, firms and organizations incur additional cost, this cost is what we refer to as menu cost. With continuous changes, the cost adds up in term of money and time. This is why firms aren't encouraged to changing prices indiscriminately. However in situations like the one presented in the question, with constant changes in the price of inputs used, business owner must also change prices of outputs produced.
Zino Company determines that a customer balance of $200,from Hollis Co. is uncollectible. Zino uses the allowance method to account for bad debts. The entry to write off the uncollectible balance will include a: debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. debit to Allowance for Doubtful Accounts and a credit to Bad Debts Expense. debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
Answer:
The correct answer is A
Explanation:
The journal entry to be posted to write off the balance of uncollectible is as:
Allowance for Doubtful Accounts A/c..........................Dr $200
Accounts Receivable A/c.......................................Cr $200
As the allowance method is used so the accounts receivable account will be credited and the allowance for doubtful accounts is debited with the amount which is recovered that is $200.
Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.
The correct answer is: debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts.
When a company uses the allowance method to account for bad debts, it records an estimate of uncollectible accounts as an expense on the income statement and as a contra-asset on the balance sheet. This is done to match the bad debt expense with the revenue earned in the same period.
In this scenario, Zino Company has determined that a specific customer balance of [tex]$200[/tex] from Hollis Co. is uncollectible. Since the allowance method was used, the company would have already estimated and recorded an allowance for doubtful accounts. When it is determined that a specific account is uncollectible, the entry to write off this uncollectible balance involves the following:
1. Debit the Bad Debts Expense account for the amount of the uncollectible balance. This increases the Bad Debts Expense, which is reported on the income statement and reflects the cost of the uncollectible account in the period in which it was determined to be uncollectible.
2. Credit the Allowance for Doubtful Accounts for the same amount. This decreases the Allowance for Doubtful Accounts, which is a contra-asset account on the balance sheet, reducing the net value of the accounts receivable.
The entry does not involve a debit to the Allowance for Doubtful Accounts because this account is being used to offset the Accounts Receivable. Nor does it involve a credit directly to Accounts Receivable, as the Allowance for Doubtful Accounts serves as a buffer for the write-off of specific uncollectible accounts.
Therefore, the correct journal entry to write off the [tex]$200[/tex] uncollectible balance would be:
Debit to Bad Debts Expense: [tex]$200[/tex]
Credit to Allowance for Doubtful Accounts: [tex]$200[/tex]
This entry ensures that both the income statement and the balance sheet reflect the correct financial position of the company after accounting for the bad debt.
Xbox video game consoles were developed through a joint venture between Microsoft and the WWE (World Wrestling Entertainment). Plans were made to rush the product to market to counter new Playstation and Nintendo consoles that were also being released about the same time. Complaints about the video game began immediately after its introduction. These complaints ranged from missing parts to incorrect programming. In which phase of the strategic marketing process did the Xbox strategy fail?
Answer:
The Implementation Phase
Explanation:
A marketing plan refers to a a future course of action relating to marketing tactics a firm is planning to employ and specifies the goals and objectives which are to be achieved. It provides direction and guides marketing efforts in a single direction i.e towards attainment of marketing objectives.
A strategic marketing plan is an in-depth marketing plan which specifies the long term marketing strategies, the markets in which the firm shall compete, the target customers and the means to attain marketing goals.
Such a plan incorporates the following phases:
Analysis : It means situational analyses and assessing organizational strengths and weaknesses and matching them with environmental threats and opportunities.Planning: This involves conducting marketing research and product testing and also planning for the price, promotion and distribution of products.Implementation: It refers to putting the plans into action and placing the products in the market based upon the distribution channel and markets planned for in previous stages.Control: This refers to analyzing sales, profit margins and customer satisfaction. Measuring the deviations against figures as anticipated and making necessary modifications in the marketing strategy accordingly.In the given case, the video game company had planned well w.r.t it's joint venture and strategy but failed to implement it effectively. This points to the company failing at the implementation phase of the strategic marketing process.
Preferred stock may have priority over common stock except in
Answer:
Voting
Explanation:
Although There are several differences between preferred and common stock. They have a main difference and the difference lies in the fact that preferred stock withdraws from the shareholders the rights to vote. But common stock gives a right to vote, and it is usually at one vote per owned share. If company is to elect a board of directors, preferred stock have no rights to vote.
The Blooming Flower Co. has earnings of $3.68 per share. a. If the benchmark PE for the company is 18, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the benchmark PE for the company is 21, how much will you pay for the stock?
Answer:
a) $66.24
b) $77.28
Explanation:
The price to earnings ratio (PE ratio) is a valuation used by investors to determine if a stock is overvalued or undervalued.
Payment for stock is the product of Benchmark PR ratio and earnings per share.
Given that the earnings per share is $3.68 per share
a) If the benchmark PE for the company is 18
Payment for stock = Benchmark PR ratio × earnings per share = 18 × $3.68 per share = $66.24
a) If the benchmark PE for the company is 21
Payment for stock = Benchmark PR ratio × earnings per share = 21 × $3.68 per share = $77.28
a. You would pay $66.24 for the stock if the benchmark PE for the company is 18. b. You would pay $77.28 for the stock if the benchmark PE for the company is 21.
a. Calculate the stock price with a benchmark PE of 18:
Stock Price = Earnings per share × PE ratio
Stock Price = $3.68 × 18 = $66.24
b. Calculate the stock price with a benchmark PE of 21:
Stock Price = Earnings per share × PE ratio
Stock Price = $3.68 × 21 = $77.28
Therefore, if the benchmark PE for the company is 18, you would pay $66.24 for the stock, and if the benchmark PE is 21, you would pay $77.28.
The rent for a booth at the local flea market is $150 per month with a $15 charge for utilities. The variable cost per picture frame sold is $5. The selling price for each frame is $20. Calculate the break-even point in units. (round to the nearest unit).
Answer:
Break-even point in units = 11 units
Explanation:
Given:
Rent per month = $150
Fixed charges per = $15
Variable cost = $5
Sale value = $20
Break-even point in units = ?
Computation of Contribution:
Contribution = Sale value - Variable cost
Contribution = $20 - $5
Contribution = $15
Computation of break-even point in units:
Break-even point in units = Fixed cost / Contribution
Break-even point in units = ($150 + $15) / $15
Break-even point in units = ($165) / $15
Break-even point in units = 11 units
Anthony is listening to a member of his group who has proposed an unusual suggestion. Anthony doesn't agree with her, and he's confident that several other group members won't agree, either.
If Anthony speaks out against the unusual suggestion and forms a coalition with a few other members, which developmental stage has his group most likely entered?
Answer:
the emergence stage
Explanation:
The emergence state happens when the group starts to find solutions to its conflicts and moves on into a single proposition or idea. During this stage, the group's social structure starts becomes more defined, and the group members start to make concessions in order to reach a final agreement.
A 22-year-old college graduate just got a job in Nashville. She is considering buying a house with a $200,000 mortgage. The APR is 4% compounded monthly for her monthly mortgage payments on a 30-year fixed rate loan. If she can get her FICO score up to 750, the APR drops to 3.6%. How much in interest cost will she save over the life of the loan assuming she can increase her FICO score to 750?
By improving her FICO score to 750 and lowering the APR from 4% to 3.6% on a $200,000 mortgage over 30 years, the 22-year-old college graduate will save approximately $16,392 in interest costs.
Explanation:The question asks how much interest cost a 22-year-old college graduate will save on a $200,000 mortgage if the APR drops from 4% to 3.6% by increasing her FICO score to 750, with a 30-year fixed-rate loan compounded monthly. To calculate the savings in interest, we first need to determine the monthly payment for both interest rates using the formula for a fixed-rate mortgage, then calculate the total cost over 30 years for both scenarios and subtract the totals to find the savings.
Using the formula M = P[r(1+r)^n]/[(1+r)^n - 1], where:
M is the monthly payment,P is the principal loan amount,r is the monthly interest rate (annual rate divided by 12 months),n is the number of payments (loan term in years multiplied by 12).For an APR of 4%, r = 0.04/12. For 3.6%, r = 0.036/12. Calculating each scenario:
At 4% APR, the monthly payment ends up being approximately $954.83.At 3.6% APR, the monthly payment is approximately $909.29.The total cost of the loan can then be calculated by multiplying the monthly payment by the total number of payments (360).
The total interest paid over the life of the loan thus is:
For the 4% APR: approximately $343,738.For the 3.6% APR: approximately $327,346.Therefore, the savings in interest cost by improving the FICO score to 750 and securing an APR of 3.6% would be approximately $16,392.
If the individual can increase her FICO score to 750 and qualify for the lower APR of 3.6%, she would save approximately $26,898.48 in interest costs over the life of the loan.
To calculate the interest cost savings over the life of the loan, we'll first find the total interest paid for each scenario: one with an APR of 4% and the other with an APR of 3.6%. Then, we'll subtract the total interest paid with the lower APR from the total interest paid with the higher APR to find the savings.
Given:
- Principal amount (mortgage): $200,000
- Loan term: 30 years
- Compounding frequency: monthly
Step 1: Calculate the monthly interest rate for both APRs.
[tex]\[ \text{Monthly Interest Rate (APR 1)} = \frac{4\%}{12} = 0.04 \times \frac{1}{12} = 0.00333 \][/tex]
[tex]\[ \text{Monthly Interest Rate (APR 2)} = \frac{3.6\%}{12} = 0.036 \times \frac{1}{12} = 0.003 \][/tex]
Step 2: Calculate the number of monthly payments over the loan term.
[tex]\[ \text{Number of Payments} = \text{Loan Term} \times \text{Compounding Frequency} \][/tex]
[tex]\[ \text{Number of Payments} = 30 \times 12 = 360 \][/tex]
Step 3: Calculate the monthly payment using the formula for the monthly payment of an amortizing loan:
[tex]\[ \text{Monthly Payment} = \frac{P \cdot r}{1 - (1 + r)^{-n}} \][/tex]
Where:
- ( P ) = principal amount (mortgage)
- ( r ) = monthly interest rate
- ( n ) = number of payments
For APR 1:
[tex]\[ \text{Monthly Payment (APR 1)} = \frac{200,000 \times 0.00333}{1 - (1 + 0.00333)^{-360}} \][/tex]
[tex]\[ \text{Monthly Payment (APR 1)} ≈ \frac{666}{0.44832} \][/tex]
[tex]\[ \text{Monthly Payment (APR 1)} ≈ 1486.68 \][/tex]
For APR 2:
[tex]\[ \text{Monthly Payment (APR 2)} = \frac{200,000 \times 0.003}{1 - (1 + 0.003)^{-360}} \][/tex]
[tex]\[ \text{Monthly Payment (APR 2)} ≈ \frac{600}{0.42594} \][/tex]
[tex]\[ \text{Monthly Payment (APR 2)} ≈ 1408.63 \][/tex]
Step 4: Calculate the total payments over the loan term:
[tex]\[ \text{Total Payments (APR 1)} = \text{Monthly Payment (APR 1)} \times \text{Number of Payments} \][/tex]
[tex]\[ \text{Total Payments (APR 1)} ≈ 1486.68 \times 360 \][/tex]
[tex]\[ \text{Total Payments (APR 1)} ≈ 534,805.28 \][/tex]
[tex]\[ \text{Total Payments (APR 2)} = \text{Monthly Payment (APR 2)} \times \text{Number of Payments} \][/tex]
[tex]\[ \text{Total Payments (APR 2)} ≈ 1408.63 \times 360 \][/tex]
[tex]\[ \text{Total Payments (APR 2)} ≈ 507,906.8 \][/tex]
Step 5: Calculate the total interest paid:
[tex]\[ \text{Total Interest (APR 1)} = \text{Total Payments (APR 1)} - \text{Principal Amount} \][/tex]
[tex]\[ \text{Total Interest (APR 1)} ≈ 534,805.28 - 200,000 \][/tex]
[tex]\[ \text{Total Interest (APR 1)} ≈ 334,805.28 \][/tex]
[tex]\[ \text{Total Interest (APR 2)} = \text{Total Payments (APR 2)} - \text{Principal Amount} \][/tex]
[tex]\[ \text{Total Interest (APR 2)} ≈ 507,906.8 - 200,000 \][/tex]
[tex]\[ \text{Total Interest (APR 2)} ≈ 307,906.8 \][/tex]
Step 6: Calculate the interest cost savings:
[tex]\[ \text{Interest Cost Savings} = \text{Total Interest (APR 1)} - \text{Total Interest (APR 2)} \][/tex]
[tex]\[ \text{Interest Cost Savings} ≈ 334,805.28 - 307,906.8 \][/tex]
[tex]\[ \text{Interest Cost Savings} ≈ 26,898.48 \][/tex]
Therefore, if the individual can increase her FICO score to 750 and qualify for the lower APR of 3.6%, she would save approximately $26,898.48 in interest costs over the life of the loan.
You are contemplating adding direct selling activities to your existing bricks-and-mortar retail business to increase sales. You are concerned, however, that the negative aspects of direct selling outweigh the positive.
Which of the following is a negative aspect of direct selling that you must mitigate in some way to be successful?
It may be more expensive and time-consuming than using an intermediary
Vertical conflict
manufacturing product
Answer:
It may be more expensive and time-consuming than using an intermediary
Explanation:
Direct selling makes it hard to reach new customers and also entails spending an extensive time in trying to convince prospective customers before sales is made. Sadly, in some situations, some prospects do not buy in on the intended product and thus, no sale is made and time wasted.
Answer:
The correct answer is letter "A": It may be more expensive and time-consuming than using an intermediary.
Explanation:
Taking care of the activities of a company directly will always imply a greater sense of responsibility and planning compared to outsourcing the activities. Intermediaries take care of all that is necessary to accomplish the duty their clients assign and sell their services in a way that the firm saves some money and time.
Therefore, while contemplating is adding direct selling to retail businesses to increase sales, managers must consider that it could be more expensive and time-consuming than hiring an agency to do so.
Janet is a broker who negotiates a number of loans to specific subdivisions. Last year, she took part in 27 loans to homeowners in one subdivision. Due to this large number of loans to a subdivision, Janet has to report loan activities to the California BRE. What is the name of this reporting process, how often does it take place, and what is an additional requirement for making these reports?
Answer: The options are given below:
A. The annual and quarterly process is Uniform Reporting. Additionally, if a broker negotiates more than $5,000,000.00 in loans annually, they must take part in Uniform Reporting.
B. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in Threshold Reporting.
C. The annual and quarterly process is Trust Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in Threshold Reporting.
D. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, he/she must take part in Threshold Reporting.
The correct option is D
Explanation:
The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, he must take part in Threshold Reporting.
A Threshold Transaction Report (TTR) is a report that financial institutions and designated nonfinancial business and professions (DNFBPs) are mandated to file to financial intelligence unit (FIU) for each:
deposit, withdrawal, exchange of currency, or other payment or transfer,The threshold reporting is carried out if the transaction is completed by, through, or to the financial institution which involves an amount of more than $1,000,000.
A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to finish the goods and sell them as complete units. Which of the following is not relevant to the decision?
a-the selling price of the completed units
b-the costs incurred to process the units to this point
c-the selling price of the partially completed units
d-the costs that will be incurred to finish the units
b
Answer:
b-the costs incurred to process the units to this point
Explanation:
Since in the question it is given that the company want to decide whether to sell partially completed goods or should incurred extra cost in order to finished the goods and sells them as a completed unit
So there should be the decision regarding selling price for the units that are completed, the selling price for the units that are partially completed and the cost i.e to be incurred for finishing the units
Thinking in terms of the Theory of Constraints, Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of ______.
a. physical constraints
b. nonphysical constraints
c. bottleneck activities
d. work orders
e. idle time
Answer:
B. Non Physical constraints
Explanation:
Constraints can either be physical or non physical. Physical constraints has to do with those factors that can be seen and touched that limit work progress which are easy to identify, Such as resources, raw materials and supplies. Non physical constraints on the other hand are factors such as policies, measures limiting work progress that are harder to identify. Inflexible work schedules and inadequate labour skills are nonphysical constraints to getting the job done.
Omar, a driver for Piece’a Pizza Delivery Service, causes a multi-vehicle accident on a city street. Omar and Piece’a Pizza are liable to ________.
a. all those who were injured.
b. only those who were uninsured.
c. only those whose injuries could have been reasonably foreseen.
d. only those whose vehicles were closest to Omar’s vehicle.
Answer:
only those whose injuries could have been reasonably foreseen.
Explanation:
When an accident happens one is liable only for injuries that could have been reasonably foreseen.
For example if there is a zebra crossing sign at the point where the accident happened, and a pedestrian that was crossing was injured. It is expected that when a driver sees a zebra crossing he will be more careful of pedestrians.
Answer: C. only those whose injuries could have been reasonably foreseen.
Explanation: Omar and Piece a pizza are liable to only those whose injuries could have been reasonably foreseen. Omar the driver of a Piece a pizza delivery company caused a multi vehicle accident, so the both Omar and Piece a pizza will be held liable for damages.
They are not liable to those who are insured only, but those involved in the accident whose injury is foreseeable.
A sales associate employs a licensed personal assistant. The assistant will prepare CMAs, design property flyers, hold open houses, and prospect for listing appointments. The assistant will be paid a salary of $12 per hour and 20% of the commissions received by the sales associate. Which method of payment will satisfy all legal requirements?
Answer:
A) the associate may pay the salary and withhold taxes, but the broker must pay commissions.
Explanation:
The sales associate works for the broker and his/her assistant works for him. Therefore the sales associate is responsible for paying the assistant's salary and withhold taxes since he is the employer. But since the assistant will also earn 20 percent of the sales associate's commissions, that should be paid by the broker directly (80% to the sales associate and 20% to the assistant).
Funn Company's account balances at December 31, 2020, for accounts receivable and the related allowance for uncollectible accounts were $1,500,000 and $90,000, respectively. An aging of accounts receivable indicated that $125,000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment is A. $1,285,000. B. $1,410,000. C. $1,465,000. D. $1,375,000.
Answer:
D. $1,375,000
Explanation:
Funn Company's
(NRV of receivables= Receivables- Ending receivable uncollectible
ADA =$1,500,000−$125,000
= $1,375,000
Therefore the accounts receivable amount expected to be collected after adjustment is $1,375,000.
Answer:
D. $1,375,000.
Explanation:
Funn Company's
Account balances
At December 31, 2020,
Accounts receivable $1,500,000
Allowance for uncollectible accounts $90,000
Bad Debts December 31 $125,000
When the allowance for uncollectible method is used only the allowance for uncollectibles is deducted for the accounts receivable for financial statements
$1,500,000 - $90,000=$ 1410,000
But as the Bad debts ( uncollectibles) is higher than the allowance for uncollectibles the bad debts will be deducted from the accounts receivables.
The allowance of uncollectibles will be raised to the amount of bad debts.
so the the accounts receivable amount expected to be collected after adjustment is $1,500,000 - $125,000=$ 1375,000
A taxpayer understated the tax liability by $10,000. The total tax liability was $50,000. No disclosure of the return position was made by the taxpayer; however, the basis for the position is reasonable. How much of an accuracy-related penalty will the taxpayer be assessed?
Answer:
2,000
Explanation:
To calculate how much of an accuracy related penalty the tax payer will be assessed, we use the following method.
The common stock of Contemporary Interiors has a beta of 1.13 and a standard deviation of 21.4 percent. The market rate of return is 12.7 percent and the risk-free rate is 4.1 percent. What is the cost of equity for this firm
Answer:
Cost of equity =13.82%
Explanation:
The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (treasury bill rate) - 4.1
β= Beta-1.13
Rm= Return on market- 12.7
Ke= 4.1% + 1.13× (12.7- 4.1 )%
Ke =13.82%
Limited focus of change is a major force for resistance to change that originates from an organizational source. It indicates that ________.
a.groups in the organization that control sizable resources often resist change
b.even if individuals want to change their behavior, group norms may act as a constraint
c.limited changes in subsystems tend to be nullified by the larger system
d.organizations have structural inertia that acts as a counterbalance to sustain stability
e.changes in organizational patterns may threaten the expertise of specialized groups so these groups tend to resist change
Answer:I forgot
Explanation:
A source of resistance to change comes from an organizational source is a lack of emphasis on change, minor that changes in subsystems are nullified out by the larger system.
What is organization?An organization, often known as a firm, institution, or association, is a group of one or more people who work together to achieve a common goal.
The word organization comes from the Greek word organon, which meaning tool, musical instrument, or organ.
In an organizational source, A key source of resistance to change comes from that changes which are subsystems nullified out by the larger system.
Therefore, option C is correct.
Learn more about the organization, refer to:
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Mayo Corp. has estimated that total depreciation expense for the year ending December 31, 2021 will amount to $600,000, and that 2021 year-end bonuses to employees will total $1,200,000. In Mayo's interim income statement for the six months ended June 30, 2021, what is the total amount of expense relating to these two items that should be reported?
Answer:
$900,000
Explanation:
Depreciation for the year $600,000
Employee Bonuses $1,200,000
Total expense for the year $1,800,000
Expense to be reported in interim income statement 1,800,000/2=$900,000
if a furniture manufacturer with a bureaucratic organization undergoes a large turnover of employees from one year to the next, what feature of the bureaucratic structure enables the organization to continue to produce furniture despite the changes to its staff explain your answer
Answer: Formalized rules
Explanation:
Formalized rules are the established regulations and procedures by which the operations of a bureaucracy is conducted. Formalized rules enable employees to make quick, consistent judgements because the decisions are based on some sets of standards and not on a case-by-case basis.
Formalized rules enable work to go on with little interruption even when some workers are just hired to replace some set of workers who are no longer with the organization.
The feature of the bureaucratic structure which enables the organization to continue to produce furniture despite the changes to its staff is:
Formalized rulesAccording to the given question, we need to show the feature of the bureaucracy which allows an organization to continue to produce goods, even with a massive turnover of employees.
As a result of this, formalized rules are those regulations which allows a company to keep running, no matter the staff because there are laid down rules and roles which each member of staff must follow.
Read more here:
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A person who offers a facilitation payment in order to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n) ________ because she is trying to secure the greatest good for the greatest number of people.
Answer:
utilitarian.
Explanation:
A utilitarian is a person who takes actions that maintains or increases the well-being or happiness of a great number of persons.
In the above question, The person is trying to ensure that employees are not laid off and also the company doesn't go bankrupt. This shows that the individual is trying to ensure the happiness of employees as well as their well-being and that of the company.
Cheers.
A disadvantage of an LLC is that it has a Life
Suppose a monopoly concrete contractor builds 20 driveways per month for $10,000 each. In order to increase sales to 21 driveways, the contractor must lower the price of driveways to $9,500. The marginal revenue of the 21st driveway is:_________.
a. $500.
b. $199,500.
c. -$500.
d. $9,500.
Answer:
The marginal revenue of the 21st driveway is: -$500. The right answer is C.
Explanation:
In order to calculate the the marginal revenue of the 21st driveway, we have to calculate first the total revenue from 20 driveways.
Total revenue from 20 driveways = 20×$10,000= $200,000
Next, we calculate the Revenue from 21 driveways = 21×$9,500 = $199,500
Therefore, The Marginal revenue from 21th driveways = =$199,500-$200,000 =-$500
What new or sharper divisions has economic globalization generated?
Answer:Modern global system produced economy's unstable and unsteady progress, leading to inequality. Divisions between Developed rich Nations of the North & Developing Nations of the South in income worsened the North/South Gap. The disparity in incomes, medical care, clean water, education, employment, the internet, etc. between the rich and poor shaped life chances. Active resistance by rich countries such as the 1970's when a large group of developing countries joined together to demand a "new international economic order" that was more favorable to the poor countries; not much success attended this effort. Common action between Developing Nations was difficult to achieve because of their different economic agendas. Spurred new movements of anti-globalization in the 1990s
Explanation:
To raise revenues, the City of St. Cloud required restaurants to purchase a special permit if they wanted to serve food in an open-air patio. While at Hola Taco, a restaurant in St. Cloud, a customer notices that Hola Taco’s permit expired. Consequently, the customer refused to pay for her food. Because Hola’s Taco’s permit expired, the customer is not legally required to pay for her food.
a) true
b) false
Answer: B. False
Explanation: Even when Hola's Taco's permit has expired a customer does not have the right to refused payment for consuming its goods and services. It is only the authority, a constituted body that regulate and grant permit can sanction Hola's Taco.
So therefore, the customer is legally required to pay for his food, even though Hola's Taco have expired permit.
The expiration of a restaurant's open-air patio permit does not absolve the customer from the legal obligation to pay for the food consumed. Payment is for food and service received, not the status of the restaurant's permit.
Explanation:The issue presented is whether the expiration of a restaurant's special permit to serve food in an open-air patio impacts the legal obligation of a customer to pay for their food. The answer is b) false. Customers are legally obliged to pay for the food and services they have received, irrespective of the restaurant's permit status.
The permit is an agreement between the restaurant and the city, and its expiration does not constitute a defense for non-payment for a customer. The customer benefits from the food and service, not the permit. And, unless the law specifically provides for such an exception, which is unlikely, the customer's legal obligation to pay remains intact.
In Las Vegas, the cost of living index is 110, and in San Francisco, it is 170. You work in Las Vegas currently and your salary is $57,000. You are offered a promotion and pay raise of $70,000 to move to San Francisco. If you take the promotion, your __________ wage increased but your ___________ wage has decreased.
Answer:
Your nominal wage increased but your real wage has decreased.
Explanation:
Given that,
Cost of living index in Las Vegas = 110
Cost of living index in San Francisco = 170
Salary in Las Vegas = $57,000
Salary offered to work in San Francisco = $70,000
The cost of living index of the two cities indicates that the cost of living in San Francisco is higher than the cost of living in Lag Vegas.
The salary in Las Vegas is $57,000, when we are taking into consideration the effect of the cost of living, then the value of this salary in San Francisco must be:
= (Cost of living index in San Francisco ÷ Cost of living index in Las Vegas) × Salary in Las Vegas
= (170 ÷ 110) × $57,000
= 1.5454 × $57,000
= $88,090.9
Hence, if the salary offered to work in San Francisco = $70,000,
Then, this will increase the nominal salary but the real salary will not increase (i.e, decreased) because of the higher cost of living in San Francisco.
A firm that uses an international division structure sometimes experiences intra-organizational conflict because ________. Grupo de opciones de respuesta ) more resources and management attention tend to get channeled toward the international division than toward the domestic divisions such a structure disallows managers to coordinate resources for foreign activities under one roof the international division invariably fails to respond to cultural differences such a structure depresses the firm's ability to respond to market opportunities
Answer:
more resources and management attention tend to get channeled toward the international division than toward the domestic divisions
Explanation:
A firm that uses an international division structure sometimes experiences intra organizational conflict because MORE RESOURCES AND MANAGEMENT ATTENTION TEND TO GET CHANNELED TOWARD THE INTERNATIONAL DIVISION THAN TOWARD THE DOMESTIC DIVISIONS.
Answer:
more resources and management attention tend to get channeled toward the international division than toward the domestic divisions.
Explanation:
A firm that uses an international division structure sometimes experiences intra-organizational conflict because more resources and management attention tend to get channeled toward the international division than toward the domestic divisions in order to improve on staff competence across all boards and enhancing competition among at all divisions, making the firm achieve its target or goals.
Fall is approaching, and Angelina wants to sell the remaining summer items that remain in stock so that she can reinvest the cash generated from those sales in fresh fall merchandise. She plans to offer a discount that declines over time (for example, 30 percent off on day 1, 20 percent off on day 2, and 10 percent off on day 3). What type of discount is she planning to use?
Answer:
Angelina plans to use steadily decreasing discount.
Explanation:
Steadily decreasing discount refers to the strategy in which a retailer slowly or steadily reduces his/her discounts on a commodity rather than just moving the commodity back to its original price immediately after the sale period ends. This is an effective strategy because it makes the consumers know that the prices are likely to increase in the future and this will prompt them to make purchases today.
Therefore, in the scenario given above, Angelina hopes to make customers purchase her merchandise today by using the steadily decreasing discount strategy.
A firm in a perfectly competitive market has a fixed cost of $1,000 and a variable cost of $500 while it is earning the revenue of $510. In such a situation, the firm ________ shut down in the short run because _______________________________.
Answer:
Firm should not shut down, as it is able to cover its Average Variable Cost
Explanation:
Perfect Competition firms in Short Run : The firms produce even if their average revenue (price) < their average total costs (AC). They continue production until Average variable cost (AVC) ≥ per unit price (P) i.e average revenue (AR). This is called Shut Down Point. P lower beyond AVC implies that firm won't continue even in short run.
Given : Variable Cost (VC) = 500 ; Revenue (R) = 510
Average Variable Costs & Average Revenue are variable costs & revenue, per unit quantity. AVC = VC / Q ; AR (P) = R / Q
R i.e 510 > VC i.e 500
So, R/ Q i.e AR is also > VC / Q i.e AVC
Since AVC > AR (P), firm should not shut down
The major tools of monetary policy available to the Federal Reserve System include: a the discount rate, margin regulations, and moral suasion. b tax collections, open-market operations and the discount rate. c open-market operations, margin regulations, and moral suasion. d reserve requirements, margin regulations, and moral suasion. e reserve requirements, open-market operations, and the discount rate.
Answer:
reserve requirements, open-market operations, and the discount rate.
Explanation:
Monetary policies are tools that a monetary authority uses to regulate cash flow within a society. It does this to maintain the the economy by avoiding scarcity or surplus money in circulation.
The tools used include open market operations, discount rate, and reserve requirements.
Open market operations involves buying and sale of securities. When there is excess cash in circulation, securities are sold to mop up cash and vice versa.
Discount rate is the rate that monetary authorities impose on banks for short term. When there is excess cash discount rate is increased to discourage banks from giving loans.
Reserve requirement is the minimum amount that a bank is required to deposit with the monetary authority. This is used to control amount of cash available to banks for loans.