Answer:
C) It is a vertical line at $600 billion of GDP
Explanation:
Aggregate supply is the total value of goods and services that companies established in a country are willing to produce and sell for each price level over a given period of time. It is therefore the sum of the supply curves of each firm.
Potential GDP, in turn, is the value of all final goods and services produced by an economy over a given period of time when all factors of production (capital and labor) are being tapped. It is the maximum production point of an economy. In this example, the potential GDP is 600 billion.
In the long run, an increase in the general price level does not affect aggregate production. Thus the aggregate supply curve of an economy represents the sum of all supply in a situation in which all factors of production are employed. This makes the vertical aggregate supply curve at 600 billion.
By shutting down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previously earned profits. C. stops receiving revenue but continues to pay variable costs. D. avoids its sunk costs as well as its variable costs. g
Answer:
option A
Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.
.
Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.
.
Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.
.
Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.
A cement manufacturer has supplied the following data: Tons of cement produced and sold 225,000 Sales revenue $ 1,035,000 Variable manufacturing expense $ 421,000 Fixed manufacturing expense $ 280,000 Variable selling and administrative expense $ 29,000 Fixed selling and administrative expense $ 220,000 Net operating income $ 85,000 What is the company's unit contribution margin?
Answer: $2.6
Explanation: As we know that, contribution is the difference between the selling price and the variable cost. Thus, contribution margin is the per unit contribution so it will be computed as follows -
[tex]contribution\:margin\:=\frac{\:selling\:price-variable\:cost}{total\:unit\:sales}[/tex]
[tex]contribution\:margin\:=\frac{\:1,035,000-\left ( 421,000+29,000 \right )}{225,000}[/tex]
$2.6
The unit contribution margin is calculated by subtracting the combined variable expenses per unit from the sales revenue per unit. For the given cement manufacturer, the unit contribution margin is $2.60 per ton.
To find the unit contribution margin, we have:
Sales revenue: $1,035,000Variable manufacturing expense: $421,000Variable selling and administrative expenses: $29,000Tons of cement produced and sold: 225,000 tonsThe combined variable expenses are the sum of the variable manufacturing expense and the variable selling and administrative expense, which equals $421,000 + $29,000 = $450,000.
Now, we calculate the revenue per unit:
Sales revenue / Quantity = $1,035,000 / 225,000 tons = $4.60 per ton
Next, calculate the variable cost per unit:
Combined variable expenses / Quantity = $450,000 / 225,000 tons = $2.00 per ton
Then, the unit contribution margin is calculated as:
Revenue per unit - Variable cost per unit = $4.60 - $2.00 = $2.60 per ton
The projected benefit obligation (PBO) is best described as thea. Present value of benefits accrued to date based on future salary levels.b. Present value of benefits accrued to date based on current salary levels.c. Increase in retroactive benefits at the date of the amendment of the plan.d. Amount of the adjustment necessary to reflect the difference between actual and estimated actuarial returns.
Answer: the correct answer is a. Present value of benefits accrued to date based on future salary levels.
Explanation: The actuarial formula used to calculate the Projected Benefit Obligation takes into account future increases in pension contributions that would take place as the employee's salary increases. For a company the PBO is an estimate of the pension liability.
A company desires to sell a sufficient quantity of products to earn a profit of $400000. If the unit sales price is $16, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $400000?
Answer:
300,000 units
Explanation:
In the given question we need to calculate break even point with given profit, i.e. Fixed cost + desired profit = $800,000 + $400,000 = $1,200,000
Contribution per unit = Selling price - Variable cost = $16 - $12 = $4
Break Even Point with profit in units = (Fixed Cost + Profit)/Contribution per unit
= $1,200,000/$4 = 300,000 units.
Total units to be sold = 300,000 units.
To find the number of units needed to earn a net income of $400000, use the formula: Profit = (Unit Sales Price - Unit Variable Cost) x Quantity - Total Fixed Costs.
Explanation:The company's desired profit can be calculated using the formula:
Profit = (Unit Sales Price - Unit Variable Cost) x Quantity - Total Fixed Costs
Substitute the given values:
Profit = ($16 - $12) x Quantity - $800000 = $400000Solve for Quantity to find out how many units must be sold to earn a net income of $400000.
Chile and Argentina each produce jellybeans and peanut butter, using labor as their only resource. Each country has 1,000 hours of labor. In Chile, an hour produces a pound of jellybeans and 2 hours produce a pound of peanut butter. In Argentina, an hour produces a pound of jellybeans and 3 hours produces a pound of peanut butter. When they do not trade with each other, Chile consumes 600 pounds of jellybeans and 200 pounds of peanut butter, and Argentina consumes 400 pounds of jellybeans and 200 pounds of peanut butter. Which country has an absolute advantage in jellybean production?
Answer: Neither country have a absolute advantage in jellybean production.
Explanation:
Absolute Advantage: A country has a absolute advantage in producing a commodity if the production of that commodity requires less labor hours than the country.
In this question, neither country is having absolute advantage in jellybean production because in both the countries labor hour requirement in producing a pound of jellybean is 1 hour.
Therefore, labor hour requirement is same in both countries, so, neither country is having absolute advantage in jellybean production.
Dollar Shave Club is an ecommerce start-up that delivers razors to its subscribers by mail. By doing this, Dollar Shave Club is using a(n) _____ to disrupt an existing market.A. innovation ecosystem B. architectural innovation C. business model innovation D. incremental innovation
Your question asks what innovation Dollar Shave Club is using to disrupt the existing market they're currently in.
Answer: C. Business model innovationThe reason why answer choice "C. Business model innovation" would be the correct answer is because this is what Dollar Shave Club is doing to get business.
With their business model, they're showing customers that even though there are many other shaving brands out there, they should choose them because of what they're offering to its customers.
Their business model is a $5 monthly subscription that sends the customer a package of shaving goods, while other shaving companies aren't doing what they're doing.
With their subscription, they're showing customers that they should choose their business out of the other shaving businesses out there.
I hope this helps!Best regards,MasterInvestorDollar Shave Club used business model innovation to disrupt the existing razor market by providing a subscription-based service. This approach, which leveraged technology and a new business model, is part of a larger trend that has reshaped various industries, such as storage and transportation.
Explanation:Dollar Shave Club is employing a business model innovation to disrupt the pre-existing market. This innovative approach involves providing a subscription-based service that delivers razors to consumers. This is a disruptive type of innovation because Dollar Shave Club rethought the traditional retail model of selling razors, instead offering convenient, direct-to-consumer mail delivery.
This is part of a larger trend of businesses leveraging technologies and new business models to reshape markets and industries. Other examples include the use of cloud-based storage platforms which eliminated the need for physical portable storage, and the impact of ride-sharing services on the taxi industry.
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A school PTA wants to rent a dunking tank for its annual school fundraising carnival. The cost is $85.00 for the first three hours and then $19.50 for each additional hour or part thereof. How long can the tank be rented if up to $185 is budgeted for this expense?
Answer:
it can be rented for 8 hours
Explanation:
From the available amount we are discounting the starting value:
185 -85 first three hours 100
We are left with $100 for the extra hours
100/19.5 = 5 additional hours
so the total hours would be the first three plus five additional for a total of eight hours.
Englehart, Inc. reports the following operating results for the month of August: Sales $450,000 (units 5,000); variable costs $280,000; and fixed costs $115,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs. 2. Reduce variable costs to 60% of sales. 3. Reduce fixed costs by $15,000. Compute the net income to be earned under each alternative.
Answer:
(1) net income 72,000
(2) net income 65,000
(3) net income 70,000
Explanation:
sales 450,000 - 280,000 = 170,000 contribution
contribution / sales = CMR = .37777777 = 17/45
(1)
Δincrease in sales x CMR = Δoperating income
10% of 450,000 x 17/45 = Δoperating income
17,000 = Δoperating income
previous t income + Δoperating income = new net income
55,000 + 17,000 = 72,000
(2)
varible cost = 60% of sales
then CMR= sales - 60% of sales = 40%
Sales x CMR - fixed cost = net income
450,000 x .4 - 115,000 = 65,000
(3)
↓fixed cost = 15,000
previous t income + ↓fixed cost = new net income
55,000 + 15,000 = 70,000
Shannon purchases reams of copy paper for $1.75 and sells them for $4.25. Her business is all on the internet, so she works from home and has minimal business expenses. She pays shipping costs of $1.18 per ream. She has one other employee that she pays $1,200 per month plus a commission of 8% of sales revenue. What is Shannon’s unit contribution margin?
Answer:
The contribution margin per unit is 0.98$
Explanation:
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
4.25 revenue
1.75 copo paper
1.18 shipping cost
.34 sales commision
3.27 total variable cost
Contribution 4.25 - 3.27 = 0.98
The contribution margin per unit is 0.98$ This is what is left after paying the variable cost.
The manufacturer of eComputers, an economy-priced computer, recently completed the design for a new laptop model. eComputer’s top management would like some assistance in pricing the new laptop. Two market research firms were contacted and asked to prepare a pricing strategy. Marketing-Gets-Results tested the new eComputers laptop with 50 randomly selected consumers who indicated they plan to purchase a laptop within the next year. The second marketing research firm, called Marketing-Reaps-Profits, test-marketed the new eComputers laptop with 200 current laptop owners. Which of the marketing research companies' test results will be more useful
Answer: Marketing-reaps-profits
Explanation: Among the two firms, the second one named marketing reaps will be more useful to e computers manufacturers than marketing get results. As marketing reaps has tested the new computers on 200 users as compared to marketing get results with 50 the sample size of the reaps is greater than marketing get resulting in narrowing of confidence intervals and more precise and close to reality results.
Which of the following best illustrates the free rider problem?A. Since no one owns elephants and elephants are valued for their hide, meat and ivory, elephants can be hunted to extinction.B. For every purchase of a $30 fare card, you are entitled to five free bus rides.C. If your neighbors professionally landscape their front yards, it is likely that the market value of your property will increase.D. All three homeowners in a quiet cul-de-sac have expressed the desirability of security lighting in the common parking area. One of the homeowners installs the lighting and asks you to contribute toward the cost. You choose not to contribute.
Answer: Option (D) is correct.
Explanation:
The free rider problem arises when the burden of a shared product transfer on one person, since both are enjoying the utilities derived from that product.
Other person refuses to pay for the shared product's burden and having a free ride.
In this question, there are three home owners and all of them are interested for fixing a security lighting in the parking lot.
Since, one of the homeowners installed that lights and asked others to pay for the product as they are also getting utilities from the security lightning.
But they refuses to contribute towards cost of security lightning in the parking lot. Hence, they are free riders.
The free rider problem is best illustrated by the homeowner who benefits from the security lighting installed by another homeowner in their shared parking area but refuses to contribute to its cost. A free rider benefits from a public good without contributing to its provision, which can lead to unfair distribution of costs. This, in turn, may discourage the provision of public goods.
Explanation:The option that best illustrates the free rider problem is 'D. All three homeowners in a quiet cul-de-sac have expressed the desirability of security lighting in the common parking area. One of the homeowners installs the lighting and asks you to contribute toward the cost. You choose not to contribute.'
A free rider is a person who benefits from a public good or service without contributing to its cost. This concept often applies to services or goods provided by governments or communities, but anyone can be a free rider when not contributing to a shared cause. In the example, the person who chooses not to contribute to the cost of the security lighting but still benefits from its presence is a free rider. This phenomenon can lead to the unfair distribution of costs and benefits, and may deter the provision of public goods and services.
To further explain, in common goods situations such as forests, fisheries, or air quality, where the goods are not excludable and may be finite, everyone has access. The 'tragedy of the commons' occurs when self-interested parties deplete those resources while acting in their own immediate self-interest, leaving nothing for future generations. In this case, the 'commons' is the security lighting, and the 'tragedy' unfolds when one party refuses to contribute, yet benefits from the light.
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You created a financial model for a pitchbook being presented tomorrow to a potential new client. While reviewing the final version of the presentation, you realize the results are incorrect. Write an email to your supervisor explaining the situation and your recommended solution. Please start with the subject line of the email.
Explanation:
A pitchbook is confidential document. It is basically a sales document, used by the sales force, which contains main features or attributes of the firm, the potential of the firm and the future aspects of the firm in detail.
So keeping the given question in mind, I would write to my supervisor as follows:
Subject: Assistance Required
Body:
Dear Sir,
By reviewing the whole document finally, which is to be presented to the client tomorrow, I found some mistakes in the results. I came to know that the results are incorrect and are surely needed to be corrected before the presentation.
I recommend you to delay the meeting for 3 hours by the scheduled time, as i need to check and correct the whole figures again and this would take time.
I am looking forwards for your advice.
Best Regards
In an email to your supervisor, explain the incorrect financial model in the pitchbook presentation and recommend immediate actions to rectify the situation.
Explanation:Email Subject: Urgent: Incorrect Financial Model in Pitchbook PresentationDear Supervisor,
I hope this email finds you well. I wanted to bring to your attention a critical issue with the financial model in the pitchbook presentation for the potential new client. During my review of the final version, I discovered that the results are incorrect.
To rectify this situation, I recommend the following solution:
Immediately halt the presentation and inform the team about the error.Work with the relevant stakeholders, such as the finance department or analysts, to identify the causes of the inaccuracies.Revise the financial model accordingly, ensuring that the correct calculations and data are incorporated.Rehearse the revised presentation to ensure the accuracy of the new financial model.I apologize for any inconvenience caused by this mistake and will be available to assist in implementing the recommended solution. If you require any additional information or have any questions, please do not hesitate to reach out to me.
Thank you for your understanding and prompt attention to this matter.
Kind regards,
[Your Name]
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On December 1, 2016, Acme Company places a new asset into service. The cost of the asset is $50,000 with an estimated five-year life and $10,000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Acme Company uses the straight-line method of depreciation?
Answer: $8000
Explanation: Under straight line method of depreciation, the book value of an asset is spread over its useful life . It can be computed using following formula :-
[tex]=\:\frac{Initial cost\:-\:salvage\:value}{useful\:life}[/tex]
putting the values into equation we get,
[tex]=\:\frac{50,000\:-\:10,000}{5}[/tex]
therefore,
depreciation expense = $8000
Which decision rule requires the consumer to rank the evaluative criteria in terms of their importance and to establish a cutoff point for each criterion, and all brands are first considered on the most important criterion, the second most important, and so on until only one brand remains? A) elimination-by-aspects B) lexicographic C) disjunctive D) conjunctive
Augie purchased one new asset during the year (five-year property) on November 10, 2019, at a cost of $660,000. She would like to use the § 179 election and will also take additional first-year depreciation. The income from the business before the cost recovery deduction and the § 179 deduction was $600,000. Determine the maximum cost recovery deduction available on this asset for 2019.
The maximum cost recovery deduction for Augie's new asset in 2019 is $1,040,000.
Explanation:1. Section 179 Deduction:
Augie can use the § 179 election to deduct up to $1,040,000 of the asset's cost in the year of purchase (2019).
This limit applies to qualified business property, which the new asset likely qualifies as.
2. Additional First-Year Depreciation:
Augie can also take additional first-year depreciation under the Modified Accelerated Cost Recovery System (MACRS).
The depreciation deduction for the first year depends on the asset class, but it typically ranges from 20% to 30%.
Combining the Deductions:
Augie can claim the full § 179 deduction of $1,040,000, even if it exceeds the asset's cost.
This deduction will reduce her taxable income for 2019.
She can also claim any additional first-year depreciation allowed by MACRS.
In Myanmar, six laborers, each making the equivalent of $ 2.50 per day, can produce 40 units per day. In China, ten laborers, each making the equivalent of $ 2.25 per day, can produce 48 units. In Billings comma Montana, two laborers, each making $ 60.00 per day, can make 102 units. Based on labor cost per unit only, the most economical location to produce the item is China , with a labor cost per unit of $ . 05. (Enter your response rounded to two decimal places.)
Answer:
$0.520
Explanation:
To find the relative labor cost in each country, simply divide the production number by the total value used in the labor force (with all employees).
In China: $ 2.25 x 10 workers = $ 25 dollars a day with labor.
The cost per unit of production will be: 25/48 = $0.520
Suppose the federal government is considering an air quality policy initiative that would effectively increase abatement (A) of ozone from 10 percent to 20 percent and that the marginal social benefit (MSB) of ozone abatement in millions of dollars has been estimated as MSB = 120 − 2.5A. Determine the dollar value of incremental benefits associated with this initiative.
Answer: $4.615 is the dollar value of incremental benefit.
Explanation:
10% increase in abatement A would be equal to the marginal social benefit.
0.1[tex]\times[/tex]A = 120 - 2.5A
2.6[tex]\times[/tex]A=120
A=[tex]\frac{120}{2.6}[/tex]
A = 46.15
Incremental benefit MSB = 120 - 2.5[tex]\times[/tex]46.15 =$4.615
$4.615 is the dollar value of incremental benefit.
To find the dollar value of incremental benefits of increased ozone abatement from 10% to 20%, use the MSB function MSB = 120 − 2.5A to evaluate both levels. The increment is the difference in MSB, which is $25 million in this case.
Explanation:The student asked how to determine the dollar value of incremental benefits associated with an increase in ozone abatement from 10 percent to 20 percent, given the marginal social benefit (MSB) function MSB = 120 − 2.5A.
To calculate the dollar value of the incremental benefits offered by the policy initiative, we first need to evaluate the MSB at the new abatement level (A = 20) and the initial abatement level (A = 10), and then find the difference between the two. Plug in A = 20 into the MSB function to get MSB = 120 − 2.5(20), which equals $70 million. Then plug in A = 10 to get MSB = 120 − 2.5(10), which equals $95 million. The incremental benefit is the difference between the two: $95 million - $70 million, which equals $25 million.
Step-by-step calculationCalculate MSB at A = 20: MSB = 120 − 2.5(20) = $70 million.Calculate MSB at A = 10: MSB = 120 − 2.5(10) = $95 million.Find the incremental benefit: $95 million - $70 million = $25 million.This $25 million represents the total increase in social benefits due to the policy's change from 10 percent to 20 percent ozone abatement.
Construct a 95% confidence interval for the population mean, μ. Assume the population has a normal distribution. A sample of 20 part-time workers had mean annual earnings of $3120 with a standard deviation of $677. Round to the nearest dollar.
To construct a 95% confidence interval for the population mean, μ, use the formula: (sample mean - (2 * (sample standard deviation / √n)), sample mean + (2 * (sample standard deviation / √n))). The confidence interval for the given sample is ($2850.55, $3389.45).
Explanation:To construct a 95% confidence interval for the population mean, μ, we can use the formula: (sample mean - (2 * (sample standard deviation / √n)), sample mean + (2 * (sample standard deviation / √n))). In this case, the sample mean is $3120 and the sample standard deviation is $677. Since the sample size is 20, we divide the standard deviation by √20. Plugging in the values, we get a confidence interval of ($2850.55, $3389.45). Therefore, we can estimate with 95% confidence that the true population mean annual earnings is between $2850.55 and $3389.45.
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Assume an economy experienced a positive rate of inflation between 2003 and 2004 and again between 2004 and 2005. However, the inflation rate was higher between 2004 and 2005 than it was between 2003 and 2004. Which of the following scenarios is consistent with this assumption? A. The CPI was 100 in 2003, 120 in 2004, and 135 in 2005. B. The CPI was 100 in 2003, 110 in 2004, and 105 in 2005. C. The CPI was 100 in 2003, 105 in 2004, and 130 in 2005. D. The CPI was 100 in 2003, 90 in 2004, and 88 in 2005.
Answer:
Option C
Explanation:
We have to look into the option were:
CPI 2005 > CPI 2004 > CPI 2003
else the country wouldn't experienced a positive inflation
and also
2005/2004 is higher than 2004/2003
to make true the statment that inflation during 2005 was higher than in 2004
Option A and option C meet the first requirement
Let's see if A pass the second requirement
Then 135/120 = 1,125 = 12.5% inflation
And 120/100 = 1.2 = 20% inflation
Option A do not pass this requirement
Option C
130/105 = 23.8%
105/100 = 5%
It sucess !
Cleo is given the responsibility of gathering information about the countries where sales of cameras have been high and the reason behind customers' preference of certain cameras to others in the market. In this scenario, Cleo will need to perform the _____ role of marketing research.
Answer:
In this scenario, Cleo will need to perform the descriptive role of marketing research.
Explanation:
As in this scenario, the Cleo has given the responsibility of gathering information about the countries which represent demographics of the countries . Also, the preference is given to the high sales and find the reasons of customer's preferences towards other markets.
The descriptive marketing research help the company to do detail analysis about any particular thing whether it will minor or major. It includes surveys, methods, etc. In the given example it highlight the countries analysis, high sales, etc.
Thus, In this scenario, Cleo will need to perform the descriptive role of marketing research.
Which of the following is not true? As long as most of the links are strong, one or two weak links won't adversely affect the chain. The customer is at the end of the supply chain. A supply chain is fluid and constantly changing. Good supply chain management can improve efficiencies among all components of the production and distribution process. Supply chain management can help companies reduce their carbon footprints.
Answer: Option A
Explanation: In simple words the management of flow of good or services is called supply chain management. It is the chain of processes transforming raw materials into final product and then distributing to customers.
a. In a supply chain management every step is dependent on one other thus one weak link will adversely effect every other step.
b. Distribution of final product to customer is the last step.
c. Effective supply chain management can improve the operations of firm altogether.
d. An effective supply chain management can result in reduction of waste and less use in energy etc., thus, reducing carbon footprints.
Therefore, option a is correct.
The statement "As long as most of the links are strong, one or two weak links won't adversely affect the chain" is not true in supply chain management. Even one or two weak links can disrupt the entire process. Other statements regarding the supply chain are true.
The statement "As long as most of the links are strong, one or two weak links won't adversely affect the chain" is not true. In supply chain management, even one or two weak links can significantly negatively impact the entire chain.
This is because the efficiency and performance of the entire chain are interdependent, and bottlenecks or failures in any part can disrupt the process and affect the final outcome.
Conversely, the other statements are true. The customer is indeed at the end of the supply chain; the supply chain is fluid and constantly changing; good supply chain management can improve efficiencies among all components, and it can also help companies reduce their carbon footprints.
On June 1, 2018, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $560,000 and a discount rate of 5%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2018?
Answer:
PV 550,506.64
Explanation:
[tex]Nominal \times (1 - \: discount \: rate)^{time} = \: Present \: Value[/tex]
[tex]560,000 \times \: (1-0.05)^{4/12} = PV[/tex]
PV = 550,506.64
We can convert the discount rate to interest rate and reach the same value:
[tex]i= \frac{d}{1-d} = 0.05/0.95 = 0.052631578[/tex]
[tex]\frac{Nominal}{(1+rate)^{time}} = PV[/tex]
[tex]\frac{560,000}{(1+0.052631578)^{1/3}} = PV[/tex]
PV = 550,506.64
Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $3.10, shipping cost is $0.21, and the external sales price is $4.10. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $3.70. The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Cologne Division. Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be:
Answer:
transfer price 3.31
Explanation:
the minimun transfer price should be equal to the marginal cost:
In this case: variable manufacturing cost + shipping cost.
variable cost 3.1
shipping cos 0.21
marginal price 3.31 = cost of produce an additional unit = transfer price
there is no additional fixed cost so this should be the transfer price.
Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in a savings plan that earns 6%, compounded monthly. This savings plan continues for 15 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 30 years after the plan began? (Round your answer to the nearest cent.)
Answer:
$107,054.45
Explanation:
rate 6% annual compounded monthly so the monthly rate will be 0.5%
The situation will be the following
first we have
Annuity of 150 for 15 years x 12 = 180 months and 6% /12 = 0.5% rate
Then
this ammount will be generate interest for 15 more years
Annuity of $150 during 180 period at 0.5% = $43,623
Then 43,623 for 180 period at 0.5% = $107,054.45
Stark Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways. Car Rental Truck Rental Number of Vehicles in fleet 840 470 Number of employees 135 65 Sales $ 720 comma 000 $ 400 comma 000 If administrative expense of $ 62 comma 100.00 is allocated on the basis of number of employees, the cost per cost driver rate would be ________.
Answer:
310.5 activity rate per employee
Explanation:
Number of employees:
135 Car Rental
65 TruckRental
200 total
[tex]\frac{Activity\: Cost}{Pool}= Activity\:Rate[/tex]
We have to distribute the total cost over the cost driver, in this case numebr of employee
62,100/200 = 310.5 activity rate
Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's balance sheet was: Common stock (100,000 shares outstanding, $1 par value) $100,000 Additional paid-in capital 60,000 Retained earnings 90,000 Total common shareholders' equity $250,000 Centurion's stock currently sells for $4 per share. After the stock dividend is paid, the amount in the Common stock account should be _______ and the amount in the Retained earnings account should be ______. $110,000; $50,000 $100,000; $90,000 $140,000; $50,000 $100,000; $50,000 $90,000; $110,000
I believe the answer would be $110,000; $50,000
Helmsman Products sells a special type of navigation equipment for $ 1 comma 200. Variable costs are $ 800 per unit. When a special order arrived from a foreign contractor to buy 40 units at a reduced sales price of $ 1 comma 000 per unit, there was a discussion among the managers. The controller said that as long as the special price was greater than the variable costs, the sale would contribute to the company's profits and should be accepted as offered. The vice president, however, decided to decline the order. Which of the following statements supports the decision of the vice president? A. The company will need to hire additional staff to execute this order. B. The order is not likely to affect the regular sales. C. The variable costs of $ 800 includes variable costs of packing the product. D. The company is operating at 70% of its production capacity.
Answer:
A. The company will need to hire additional staff to execute this order.
Explanation:
Since it is a special order, that too with a lower sale price, will affect the normal sales, and for this in order to make this order viable and not affect normal sales we need additional staff. Normal sales are domestic in nature, variable packing cost for international transfer will be additional to normal variable cost of $800 as would not be included, it does not matter whether currently the company is operating at 70% capacity as total fixed cost will be same additional variable cost based on number of units will be incurred then contribution margin will provide for profit, thus
Therefore The statement supporting Vice President is
A. The company will need to hire additional staff to execute this order.
Racicky was in the process of buying 320 acres of ranchland. While that sale was being negotiated, Racicky signed a contract to sell the land to Simon. Simon paid $144,000, the full price of the land. But Racicky went bankrupt before he could complete the purchase of the land, let alone its sale. Which of these remedies should Simon seek: expectation, restitution, specific performance, or reformation?
Answer:
The correct answer here is Restitution.
Explanation:
The remedy which is available here to Simon is restitution ( termed as Restitutionary damages), according to this remedy a injured party ( Simon in this case ) would be compensated for the losses or damage that he has suffered because of the actions of the defendant ( Racicky in this case ). So here Racicky has to submit any gain that he has received by causing damage to the Simon.
Here expectation can't be the answer because Racicky is now bankrupt and specific performance can't be the answer because Racicky is not the owner of the land , he hasn't bought it because he has gone bankrupt.
Bank of America’s _____________ provides information such as its interest expense, or the interest the bank paid depositors, and its interest income, or the interest it earned by investing deposits over a period of time. This document also states the bank’s other revenues and expenses for the time period. 1. leverage ratio 2. activity ratio 3. income statement 4. balance sheet
Answer:
3. income statement
Explanation:
Bank of America’s income statement provides information such as its interest expense, or the interest the bank paid depositors, and its interest income, or the interest it earned by investing deposits over a period of time. This document also states the bank’s other revenues and expenses for the time period.
The income statement is the document which provides details of Bank of America's interest expense, its interest income, and other revenues and expenses over specific time period.
Explanation:The document that provides information such as the interest expense, or the interest the bank, in this case Bank of America, paid to depositors, along with its interest income and its other revenues and expenses for a particular time period is known as its income statement.
This financial statement is essential for providing a detailed overview of the bank's financial performance, including its ability to earn income from its assets and pay off its liabilities within a specified period. The income statement provides investors and other stakeholders with information on the bank's earnings, costs, and net profit or loss.
To provide some context, while an income statement showcases the bank's revenues and expenses, a balance sheet lists assets and liabilities. This means the balance sheet offers a more static view of the bank's financial situation at a specific point in time, whereas the income statement is more about the flow of transactions.
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Assume that in January 2013, the average house price in a particular area was $281,400. In January 2000, the average price was $198,300. What was the annual increase in selling price?
Answer:
The annual increase is
$6392.61
Explanation:
We need to calculate the total increase and then divide by the number of years
It is asking for nominal amount so we are not going to use any rate.
[tex] \frac{current \: value - previous \: value}{current \: year - previous \: year} = annual \: increase[/tex]
281400-198300= 83100 total increase
t2013 - 2000 = 13 time
83100/13=6392.61 annual increase