Answer:
$107,500
Explanation:
There is No loss recognized by State and a basis in the land of $535,000 to Packard.
The State does not recognize the loss of $107,500 because the liquidation is tax-deferred to Packard. Packard's basis in the land is equal to State's basis in the land.
Answer:
No loss or gain is recognized by State Company and Packard's basis in the land will be $535,000
Explanation:
State Company does not have to recognize any loss or gain regarding the distribution of the land. Packard's basis for the land will be equal to State's basis = $535,000.
Since the liquidation involves 100% of the company's stocks, section 332 applies. This means that no gain or loss must be recognized by State Company.
The cap rate is an important metric that investors use to analyze the state of commercial real estate markets. When interpreting cap rate movements, an increase in cap rates over time would indicate that:
The discount rate used in TVM (time value of money) calculations has increased
The discount rate used in TVM (time value of money) calculations has decreased
Property values have increased
Property values have decreased
Answer: Property values have decreased
Explanation:
The Capitalization Rate (Cap Rate) is a measure in the Real Estate world that is used to indicate the rate of return that is to be generated on a real estate investment property.
It is calculated by,
Capitalization Rate = Net Operating Income / Current Market Value.
If Cap Rates are increasing then it would mean that either the numerator is increasing or the denominator is decreasing. The last option says that Property Values have decreased so that must be the correct option because as the denominator, if Property values decrease, Cap Rates increase.
If you need any clarification do react or comment.
Match the phrase (or word) on the left with the numbered description on the right. Phrase Description A. SARA 1. This process describes the organization and the prediction of the order in which risks will occur. 2. This acronym represents the standard ways in which people and organizations can attempt to deal with risks. 3. This phrase emphasizes the fact that managing risk is the most important part of any project. 4. This phrase includes the processes of identifying, prioritizing, planning for, recognizing and mitigating risks. 5. This phrase represents the continuation of an organization, including continuing operations after a detrimental event, such as a hurricane or the loss of a key employee. 6. This phrase is a result of systematic ordering of risks based on their likelihood of occurrence and the impact of their occurrence. 7. This phrase represents the process of identifying and compiling all the risks associated with a project, process or organization. B. Business Continuity C. Risk Management D. Risk Inventory E. Risk Priority
Answer:
The phrase questions on the left such as SARA, Business continuity, Risk Management, Risk inventory, Risk priority are all matched with the phrase description on the right, and explained below in the explanation section.
Explanation:
Solution
SARA: this refers to the standard ways in which people and organisation can attempt to deal with risk
Business continuity: The phrase represent the continuation of an organisation including continuing operations after detrimental event such as hurricane or the loss of a key employee.
Risk management: this phrase refers to the process of compiling and identifying all the risk involved with a project process or organisation.
Risk inventory: this phrase is a result of systematic ordering of risk based on the likelihood of occurrence and the impact of their occurrence.
Risk priority: the phrase includes the processes of identifying, prioritising planning for organising and mitigating risk.
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2021 are as follows: Units Per unit price Total Beg. Balance, 1/1/21 200 $5.00 $1,000 Purchase, 1/15/21 100 5.30 530 Purchase, 1/28/21 100 5.50 550 An end of the month (1/31/21) inventory showed that 160 units were on hand. If the company uses FIFO, what is the value of the ending inventory? Group of answer choices $868 $848 $800 $832
Answer:
Ending inventory : $868
Explanation:
FIFO (First-In-First-Out) is a method of inventory valuation where the inventory that is received first is sold first. In other words, the earliest inventory is used first. This is common for perishable inventory such as fruits and vegetables which if not used fast, will be wasted.
01/01/21 : Beginning Inventory : 200 units x $5 = $1000
01/15/21 : Purchases : 100 units x $5.3 = $530
01/28/21 : Purchases : 100 units x $5.5 = $550
Total units = 200 + 100 + 100 = 400 units
Units sold = Total inventory available for sale - ending inventory
= 400 - 160 = 240 units.
COGS:
Beginning Inventory : 200 units x $5 = $1000
Purchases : 40 units x $5.3 = $212
Cost of goods sold : $1000 + $212 = $1212
Ending inventory:
Purchases : (100 - 40) units x $5.3 = $318
Purchases : 100 units x $5.5 = $550
Ending inventory : $318 + $550 = $868
Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute the gross profit percentage to the nearest hundredth of a percent. Net income Gross profit on sales Average total assets Sales Tax rate on operating profit $69,960 $700,400 $360,600 $1,356,504 35% Select one: A. 9.99% B. 33.56%
Answer:
C.51.63%
Explanation:
Gross profit percentage = Gross profit/ Net sales ×100
Gross profit $700,400
Net sales $1,356,504
Hence ;
$700,400/$1,356,504 ×100
=51.63%
Therefore the gross profit percentage is
51.63%
The operating profit margin for Green Thumb Garden Center, calculated as operating income divided by sales, is approximately 44.5%, making option A. 44.50% correct.
To compute the operating profit margin, we use the formula:
Operating Profit Margin = (Operating Income / Sales) * 100.
Given:
Operating Income = $554,840 million
Sales = $1,248,552 million
Substitute these values into the formula:
Operating Profit Margin = (554,840 / 1,248,552) * 100.
Calculate the result:
Operating Profit Margin ≈ 44.5%.
Therefore, the operating profit margin for Green Thumb Garden Center is approximately 44.5%. The closest option is A. 44.50%, so the correct answer is A. 44.50%.
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Use the following selected 2022 balance sheet and income statement information for Green Thumb Garden Center (in millions) to compute the operating profit margin to the nearest hundredth of a percent. Net income Operating income Sales Cost of goods sold Average total assets $50,940 $554,840 $1,248,552 $693,712 $420,300 Select one: A. 44.50% B. 49.21%
M7-7 to M7-9 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 50 $ 10 July 13 Purchase 250 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 200 M7-9 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under Periodic Weighted Average Cost [LO 7-3] Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under weighted average cost. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.)
Answer:
Date Units Unit Cost Unit Selling Price
July 1 Beginning Inventory 50 $ 10
July 13 Purchase 250 13
July 25 Sold (100 ) $ 15
July 31 Ending Inventory 200
Cost of Goods Available for sale= 250 units at $ 13+ 50 units at $ 10
= 3250 + 500= $3750
FIFO Ending Inventory $ 2600
200 units at $ 13= $ 2600
Sales 100At $ 15= $1500
FIFO Cost Of Goods Sold $ 1150
50 units at $ 10= $ 500
50 units at $ 13= $ 650
LIFO Ending Inventory $ 2450
50 units at $ 10= $ 500
150 units at $ 13= $ 1950
Sales 100 at $ 15= $1500
LIFO Cost Of Goods Sold $ 1150= Cost of Goods Available for Sale Less LIFO Ending Inventory = 3750- 2450= $ 1300
100 units at $ 13= $ 1300
Weighted Average Ending Inventory 12.5 * 200= $ 2500
Total Cost/ total units= 3750/300= 12.5
Weighted Average Cost Of Goods Sold $ 1150= Cost of Goods Available for Sale Less Weighted Average Ending Inventory = 3750- 2500= $ 1250
Weighted Gross Profit= Sales Less Weighted Cost Of Goods Sold= $ 1500- $ 1250= $ 250
Calculation for cost of goods available for sale and ending inventory, sales, cost of goods sold, and gross profit, under weighted average cost.
•Cost of goods available for sale $3,750
•Ending inventory $2,500
•Sales $1,500
•Cost of goods sold $1,250
•Gross profit $250
Cost of goods available for sales:
Beginning Inventory 50×$10=$500
July 13 Purchases 250×$13=$3,250
Goods Available for Sale 300 $3,750
Gross sales $1,500
(100×$15)
Cost of goods sold $1,250
($3,750/300×100)
Gross profit $250
($1,500-$1,250)
Ending inventory=($3,750/300×200)
Ending inventory=$2,500
Inconclusion:
•Cost of goods available for sale $3,750
•Ending inventory $2,500
•Sales $1,500
•Cost of goods sold $1,250
•Gross profit $250
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Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.30 sometime during the next 5 months. For $ 412.33 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 76 per share. If you bought a 100-share contract for $ 412.33 and Du Pont's stock price actually changed to $ 82.09 at the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be ______?
Answer:
A loss of $1021.33
Explanation:
The first step is to calculate the net profit.
The profit = The current stock price - drop in stock price
$76- $82.09 = -6.09
Profit / loss = -6.09
The second step is to calculate the total gross profit
The total gross profit/loss = Outstanding shares * Profit
100 shares * - 6.09 = -$609
The total gross profit = -$609
Therefore the Net profit or loss
Net profit=Total gross profit -Contract price
= -609- 412.33
= -1021.33 (loss)
A the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be a loss -$1021.33
For each of the following items, calculate the amount of revenue or expense that should be recognized on the income statement for Pelkey Co. for the year ended December 31, 2019:Required:a. Cash collected from customers during the year amounted to $874,000, and accounts receivable increased by $47,700. How much were sales on account for the year ended December 31, 2019?
Answer:
$921,700
Explanation:
Sales on account for the year ended December 31, 2019 is the cash collected from customers during the year and the increase in the accounts receivable. This can be calculated as follows:
Sales on account = $874,000 + $47,700 = $921,700
Therefore, sales on account for the year ended December 31, 2019 were $921,700.
Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $88,500 and $139,000, net purchases at cost and retail were $331,000 and $499,000, and sales during the first six months totaled $509,000. The estimated inventory at June 30, 2021, would be:
Answer:
$83,850
Explanation:
Lacy's Linen Mart
Cost Retail
Beginning inventory$88,500 $139,000
Add: net purchases$331,000 $499,000
Goods available for sale$419,500 $638,000
Cost-to-retail percentage
= $419,500÷ $638,000 = 65%
Less: Net sales($509,000)
Estimated ending inventory at retail
($638,000 -$509,000) $ 129,000
Estimated ending inventory at cost(65% x $129,000)$83,850
Therefore the estimated inventory at June 30, 2021, would be $83,850
"In the economy of Wrexington in 2008, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Wrexington’s GDP in 2008?"
Answer:
The GDP in 2008 was $6800
Explanation:
The GDP or Gross Dividend Product of the country is the total value of the economic activity or the value of goods and services produced in an economy within a country in a certain year.
The formula to calculate the GDP = C + I + G + ( X - M )
Where,
C is the consumptionI is the InvestmentG is the government spendingX is the value of exportsM is the calue of importsThus, GDP = 5000 + 1000 + 900 + ( 100 - 200)
GDP = $6800
Sales Tax Cobb Baseball Bats sold 45 bats for $50 each, plus an additional state sales tax of 6%. The customer paid cash.Required: Prepare the journal entry to record the sale. If an amount box does not require an entry, leave it blank.a. blank.
b. Cash
c. Sales
d. Revenue Sales
e. Tax Payable
Answer:
Cobb Baseball
Journal Entry
Sr No Particulars Debit Credit
Cash 2385Dr
Sales 2250Cr
Tax Payable 135Cr
Explanation:
45 bats for $ 50= 45*50= 2250
Tax = 6 %of 2250 = $135
total cash received = $2250 + 135 = $2385
The tax payable is the liability of the company to pay tax. The sales are made of $ 2250 and the cash received is $ 2385 including the tax of 6 %.
Usually the sales tax is included in the sales price of an item. But some companies collect it separately and treat it in a separate account.
Sparrow Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2019, its second year of operation: Taxable income $330,000 Federal income tax liability paid 69,300 Tax-exempt interest income 5,000 Business meals expense (total) 3,000 Premiums paid on key employee life insurance 3,500 Increase in cash surrender value attributable to life insurance premiums 700 Proceeds from key employee life insurance policy 130,000 Cash surrender value of life insurance policy at distribution 20,000 Excess of capital losses over capital gains 13,000 MACRS deduction 26,000 Straight-line depreciation using ADS lives 16,000 Section 179 Expense elected in 2018 25,000 Dividends received from domestic corporations (less than 20% owned) 35,000 Sparrow uses the LIFO inventory method, and its LIFO recapture amount increased by $10,000 during 2019. In addition, Sparrow sold property on installment during 2018. The property was sold for $40,000 and had an adjusted basis at sale of $32,000. During 2019, Sparrow received a $15,000 payment on the installment sale. Finally, assume that no additional first-year depreciation was claimed.a. Indicate whether each item (or part of the item) is "Added" to, "Deducted" from taxable income, or "No effect" when computing current E& P.
b. Sparrow Corporation's current E & P is $ .........
Sparrow Corporation's current E&P is calculated by adjusting its taxable income with specific items, including tax-exempt interest, business meals, life insurance, capital losses, MACRS, Section 179 expense, dividends, LIFO recapture, and installment sales. These adjustments are necessary because tax rules and E&P calculations differ.
Explanation:The calculation of Sparrow Corporation's current Earnings and Profits (E&P) requires adjusting its taxable income for specific items that are treated differently for tax and E&P purposes. Below are the adjustments:
Tax-exempt interest income: No effect on E&P because it is already excluded from taxable income.Business meals expense: Deducted for tax purposes but only 50% deductible for E&P calculations.Premiums paid on key employee life insurance: Added back to E&P because they are not deductible for tax purposes.Proceeds from key employee life insurance policy: No effect on E&P as life insurance proceeds are generally excluded from both taxable income and E&P.Excess of capital losses over capital gains: Added back to E&P to the extent that losses exceed gains, since only realized gains and losses are considered for E&P.MACRS deduction: Deducted for tax purposes but for E&P, depreciation is computed using the straight-line method.Section 179 Expense elected in 2018: No effect on current year E&P.Dividends received from domestic corporations: Deducted for tax purposes with a dividends-received deduction; for E&P purposes, the dividend amount is generally included in E&P but with a related deduction.LIFO recapture: Added to E&P because this adjustment ensures that E&P reflects income computed under the FIFO inventory method.Installment Sale: The profit portion of the installment payment received is included in E&P for the year received.To calculate current E&P for Sparrow Corporation, each of these items must be considered in combination with the corporation's taxable income.
Suppose that three firms make up the entire tire manufacturing industry. One has a 50% market share, and the other two have a 25% market share each. The Herfindahl index of this industry is . A new firm, Tread Tough, enters the tire manufacturing industry and immediately captures a 15% share of the market. This would cause the Herfindahl index for the industry to . The largest possible value of the Herfindahl index is 10,000 because: An industry with an index higher than 10,000 is automatically regulated by the Justice Department An index of 10,000 corresponds to 100 firms with a 1% market share each An index of 10,000 corresponds to a monopoly firm with 100% market share
Answer: 2700
Explanation:
Given data
The Herfindahl Index of the industry is
HI = 50^2 + 25^2 + 25^2 = 3,750.
when another firms joins the market, this would cause a decrease in the Herfindahl Index.
new firm ( tread tough) enters the market with a 15% of the share market this would affect the largest shareholder there by causing a reduction in his shares to 35%.
the total HI would now be
HI = 35^2 + 25^2 + 25^2 + 15^2 = 2700.
The Herfindahl Index can never be more than 10,000, as this would represent a 100% market monopoly from a single company. In a perfect monopoly HI is 100^2 = 10,000.
Suppose Americans suddenly develop a strong taste for Canadian whiskey. What happens to the demand for Canadian dollars in the foreign exchange market? What happens to the value of Canadian dollars in the foreign exchange market? What about U.S. dollars? What happens to the quantity of net exports in Canada, other than whiskey, as a result of your answer in part b? What about the U.S.?
Answer:
A) If there is a sudden spike in the demand for Canadian Whiskey, the demand for Canadian Dollars will shoot upwards in the FX market.
B) When the demand for Canadian dollars does up in the FX market, the forces of demand and supply will force its price to increase in relation to the dollar.
C) If America is not exporting any commodity, or the number of Canadian goods imported into America is less than what it shipped out to them, then there is a trade deficit. Trade deficits if sustained can lead to a weaker currency.
D) Because the export demand for Canadian Whiskey has taken an upward spiral, the number of net exports in Canada will increase. When this happens, the currency is strengthened and so is the Canadian dollar. When the strength of a currency increases, it automatically gives more purchasing power to those holding that currency.
When compared to the U.S. with a consistently lowered net export, the dollar is likely to depreciate in value, thus eroding the spending or purchasing power of the U.S. dollar.
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The United States is able to experience economic growth to the extent that
A. specialization and trade are encouraged.
B. the government involves itself in the economy.
C. trade is restricted.
D. jobs are protected from outsourcing.
E. consumers are encouraged to buy domestically produced goods
Answer:
The correct answer is the option E: consumers are encouraged to buy domestically produced goods.
Explanation:
To begin with, in order to the economy to grow the country must encourage the consumers to buy more domestically produced goods so that the when the demand increases so does that income of the firms and that impacts in the demand that the companies do as well. Therefore that the country, and that is, the firms and the government, should encourage the increase of consumption from the buyers in order to intend to experience an economic growth.
Answer:
E. Consumers are encouraged to buy domestically produced goods.
Explanation:
When any economy is experiencing growth, the main driver of that is to make sure that the specialization occurs in producing quality goods and services and then trade is encouraged. But since, here we are talking about the already achieved economic growth by the US, now they are only encouraged to buys locally produced goods as now they have the capability and quality to produce the same goods they once imported from other countries.
Hope this clears the concept here.
Good luck.
On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $200,000 and $282,450, respectively. Net purchases during the year at cost and at retail were $693,600 and $856,000, respectively. Markups during the year were $11,000. There were no markdowns. Net sales for 2021 were $846,000. The retail price index at the end of 2021 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2021 balance sheet
Coldstone Corporation's inventory balance for the 12/31/2021 balance sheet, using the dollar-value LIFO retail inventory method, and adjusting for the retail price index, is $204,757.50.
Explanation:To calculate the inventory balance for Coldstone Corporation, we apply the dollar-value LIFO retail inventory method. We need to convert the Ending Inventory at retail to cost by using the retail price index. The steps involved are as follows:
Calculate the cost-to-equal ratio at the beginning of the year by dividing Beginning Inventory at Cost ($200,000) by Beginning Inventory at Retail ($282,450). This gives us a ratio of 0.7085.Next, we add Net Purchases at Cost to Beginning Inventory at Cost to get the Cost of Goods Available for Sale. This is $200,000 + $693,600 = $893,600.Net Purchases at Retail are added to Beginning Inventory at Retail and Markups to get Goods Available for Sale at Retail. This is $282,450 + $856,000 + $11,000 = $1,149,450.Deduct Net Sales from Goods Available at Retail to find the Ending Inventory at Retail. So, $1,149,450 - $846,000 = $303,450.Finally, we adjust the Ending Inventory at Retail to reflect year-end prices by applying the retail price index (1.05). So, $303,450 / 1.05 = $289,000.Lastly, multiply the adjusted Ending Inventory at Retail by the Cost-to-Retail Ratio to get the Ending Inventory at Cost, which is $289,000 × 0.7085 = $204,757.50.Therefore, the inventory balance that Coldstone would report in its 12/31/2021 balance sheet is $204,757.50.
The inventory balance that Coldstone would report in its 12/31/2021 balance sheet, after rounding to the nearest dollar, is: $235,710
To calculate the inventory balance that Coldstone would report on its 12/31/2021 balance sheet using the dollar-value LIFO retail inventory method, we need to follow these steps:
1. Calculate the cost of the ending inventory at retail by multiplying the beginning inventory at retail by the retail price index:
Ending Inventory at Retail = Beginning Inventory at Retail × Retail Price Index
Ending Inventory at Retail = $282,450 × 1.05
Ending Inventory at Retail = $296,522.50
2. Calculate the cost of the ending inventory at cost by using the cost-to-retail ratio applied to the ending inventory at retail:
Cost-to-Retail Ratio = (Beginning Inventory at Cost + Net Purchases at Cost) / (Beginning Inventory at Retail + Net Purchases at Retail)
Cost-to-Retail Ratio = ($200,000 + $693,600) / ($282,450 + $856,000)
Cost-to-Retail Ratio = $893,600 / $1,138,450
Cost-to-Retail Ratio = 0.7847 (approximately)
Ending Inventory at Cost = Ending Inventory at Retail × Cost-to-Retail Ratio
Ending Inventory at Cost = $296,522.50 × 0.7847
Ending Inventory at Cost = $232,845.98 (approximately)
3. Adjust the ending inventory at cost for the markup on ending inventory:
Markup on Ending Inventory = Markups × (Ending Inventory at Cost / (Beginning Inventory at Cost + Net Purchases at Cost))
Markup on Ending Inventory = $11,000 × ($232,845.98 / $893,600)
Markup on Ending Inventory = $11,000 × 0.2604 (approximately)
Markup on Ending Inventory = $2,864.40 (approximately)
Adjusted Ending Inventory at Cost = Ending Inventory at Cost + Markup on Ending Inventory
Adjusted Ending Inventory at Cost = $232,845.98 + $2,864.40
Adjusted Ending Inventory at Cost = $235,710.38 (approximately)
1. One healthcare organization is pursuing a business strategy of differentiating its service product through providing excellent customer service. What HR metrics do you recommend to reinforce this business strategy? Why?
Answer:excellent customer service can make or mar business
Explanation:
Quick response: ability to respond to clients enquiries or complaint or even suggestion and most especially on time sensitive issues.
Know your customers: interact with your clients, remember their names and your previous discussion with them so that when you see them again you can continue if it warrants it.
Try to satisfy your customers: Do all possible best to satisfy your customers, with that he/she can refer you to someone else when been treated well. In the long run it builds happy customers.
Answer:
quick and polite responsecustomer satisfactionknow your customerExplanation:
The provision of excellent customer service to customers/clients or even to potential customers is one huge way a firm can win the patronage of a potential customer or make a customer return for goods and services in the future.
The healthcare organization having identified the strategy of provision of excellent customer service would have to employ Good metrics to make this strategy work efficiently and such metrics include
quick and polite response : responding quickly and politely to customers is very vital in getting the attention of customer/client and it also makes the customer to feel he or she is a valued customer Customer satisfaction: when a customer connects to the firm ensuring that the customers' problems and enquirers are attended to until the customer is satisfied is very vital Know your customer : a brief introduction between the customer and the customer service personnel is very important because it helps understand your customer better and how to serve him/her betterContingency money is:
a. Valued at a higher rate than non-contingency money when determining project costs.
b. The money, that must be received before any project work can begin.
c. Not usually a part of the activity-based costing process.
d. Money that is spent first to lock-in all contract guarantees.
The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curves �(�) = 16 + �), where q is the annual output of a firm. The market demand for bolts is �- = 110 − � (assume that the industry is perfectly competitive). a. What is the firm's short-run supply curve? b. What is the short-run market supply curve? c. Determine the short-run equilibrium price and quantity in this industry. d. What is each firm’s profit? e. What is the aggregate producer surplus?
Answer:
Check the explanation
Explanation:
Suppose that there are PO producers. All have an identical short run total cost curves [tex]C(q) = 16 + F^{2}[/tex]
Here, q is the annual output of a firm
firm's short run supply curve is the marginal cost above the average variable cost.
Marginal cost is the change in total cost due to change in quantity.
the perfect competitive market for profit maximixing output, price is equal to marginal cost.
kindly check the below attached images for further explanation.
In a perfectly competitive bolt-making industry, the analysis involves deriving the short-run supply curve, market supply curve, determining the short-run equilibrium price and quantity, calculating each firm's profit, and determining the aggregate producer surplus.
The analysis of the bolt-making industry operating under perfect competition requires understanding the short-run supply curve, market supply curve, and determining the short-run equilibrium. To address these queries:
a. The firm's short-run supply curve is derived from its marginal cost (MC) equation. Since the total cost (TC) given is TC(q) = 16 + q, differentiating it w.r.t. q gives MC = 1. This means the supply curve is perfectly elastic at MC.
b. The short-run market supply curve, with 20 identical producers, is simply 20 times the individual supply for a given price, assuming all firms have the same MC.
c. To find the short-run equilibrium price and quantity, equate the market demand and supply. The demand equation QD = 110 - P intersects with the supply at this equilibrium. Solving this with the supply equation leads to the equilibrium values.
d. Each firm's profit is calculated by subtracting total costs from total revenue, where total revenue is P*q and TC is given by the TC(q) equation.
e. The aggregate producer surplus, in a perfectly competitive market, is the area above the supply curve and below the equilibrium price up to the quantity produced.
1. Nome Co. sponsors a defined benefit plan covering all employees. Benefits are based on years of service and compensation levels at the time of retirement. Nome determined that, as of September 30, year 2, its accumulated benefit obligation was $380,000, and its plan assets had a $290,000 fair value. The projected benefit obligation on September 30, year 2, was $400,000. In its September 30, year 2 balance sheet, what amount should Nome report as pension liability? $380,000 $110,000 $400,000 $ 90,000
Answer:
$110,000
Explanation:
There is pension liability for a corporation when the the projected benefit obligation (PBO) is greater than the fair value of plan assets. Therefore, pension liability is obtained by simply deducting the fair value of plan assets from the PBO as follows:
Pension liability = $400,000 - $290,000 = $110,000
Therefore, Nome should report $110,000 as pension liability in its September 30, year 2 balance sheet.
The quality control manager at a computer manufacturing company believes that the mean life of a computer is 80 months, with a standard deviation of 10 months. If he is correct, what is the probability that the mean of a sample of 73 computers would be less than 83.28 months? Round your answer to four decimal places.
Final answer:
To find the probability that the mean of a sample of 73 computers would be less than 83.28 months, we can use the z-score formula.
Explanation:
To find the probability that the mean of a sample of 73 computers would be less than 83.28 months, we can use the z-score formula.
First, we calculate the standard error using the formula:
Standard Error = Standard Deviation / Square Root of Sample Size
Standard Error = 10 / √73 = 1.170
Next, we calculate the z-score using the formula:
z = (Sample Mean - Population Mean) / Standard Error
z = (83.28 - 80) / 1.170 = 2.800
Using a standard normal distribution table or a calculator, we can find the probability that z is less than 2.800.
Suppose the daily market demand for meat in a small town is given by
Qd = 5/3p^2
where Qd is the quantity demanded (pounds of meat), and p is the price per pound of meat.
Suppose this market is served by a profit-maximizing monopolist (that is, there is only one butcher in this town). Suppose also that the price charged per pound of meat is $0.50. The monopolist's marginal cost must be _______.
In a monopoly market, a profit-maximizing monopolist sets the price equal to the marginal cost. Given that he's charging $0.50 per pound of meat, his marginal cost must therefore be $0.50.
Explanation:The given demand function is Qd = 5/3p^2. Here, Qd represents the quantity of meat demanded at a given price p. The monopolist, being the only butcher in the town, is a profit-maximizer and therefore sets his price equal to his marginal cost (MC). When the price per pound of meat is $0.50, we can substitute p into the demand function to find the quantity of meat demanded at this price. However, for a monopolist, the marginal cost of production remains constant. So, based on the conditions provided in your question, the monopolist's marginal cost must be $0.50 because a profit-maximizing monopolist sets price equal to marginal cost.
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Regional trade agreements In the following table, indicate whether each statement about regional trade agreements is true or false. a. Under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries b. Regional trade agreements are consistent with GATT's most favored nation principle. c. The countries in the European Union (EU) keep their own tariffs with the countries outside the EU.d. If China wants to sell a good to Canada, it can first export it to the United States, where the tariff is lower, and then ship it duty- free to Canada. e. Countries that enter into a free trade area agreement maintain a common schedule of tariffs with countries outside the agreement.f. Rules of origin are not needed in a customs union.
Answer:
A. True
B. True
C. True
D. True
E. False
F. True
Explanation:
It is true that under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
It is true that regional trade agreements are consistent with GATT's most favored nation principle. GATT is an acronym for General agreement on tarrifs and trade and most favoured nation (MFN) is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatment must nominally receive equal trade advantages as the "most favoured nation" by the country granting such treatment (trade advantages include low tariffs or high import quotas).
It is true that the countries in the European Union (EU) keep their own tariffs with the countries outside the EU. The EU trade agreement is basically to promote trade among EU countries, not necessarily to lower tariffs for non members.
US and China have a trade agreement which lowers tarrifs and US and Canada operate a Free Trade agreement (FTA) which seeks to eliminate all tarrifs on trade between the two countries. Therefore If China wants to sell a good to Canada, it can first export it to the United States, where the tariff is lower, and then ship it duty- free to Canada.
It is false that countries who enter into a free trade area agreement maintain a common schedule of tariffs with countries outside the agreement. The agreement does not cover trade among non members.
In customs union, rules of origin are not needed. Custom unions only considers where the good is shipped from and not the originating nation.
Regional trade agreements involve the elimination of tariffs among participating countries, but they do not adhere to the most favored nation principle of the World Trade Organization (WTO). The European Union has a common external tariff, not individual tariffs for countries outside the EU. China can use tariff hopping to sell goods to Canada.
Explanation:The statements can be categorised as -
a. True - Under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries. For example, the North American Free Trade Agreement (NAFTA) eliminated tariffs between Canada, the United States, and Mexico.
b. False - Regional trade agreements are not consistent with GATT's most favored nation principle, which requires countries to treat all trading partners equally. These agreements create preferential trade relationships among participating countries.
c. False - The countries in the European Union (EU) do not keep their own tariffs with countries outside the EU. Instead, they have a common external tariff that applies to all goods entering the EU.
d. True - If China wants to sell a good to Canada, it can first export it to the United States, where the tariff is lower, and then ship it duty-free to Canada. This is known as tariff hopping.
e. False - Countries that enter into a free trade area agreement do not maintain a common schedule of tariffs with countries outside the agreement. Each country determines its own tariffs with non-member countries.
f. False - Rules of origin are needed in a customs union to determine the country of origin of goods and enforce the common external tariff. These rules help prevent trade deflection.
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Road Rage is a sports goods manuifactruing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the ____________ model.
Road Rage is a sports goods manufacturing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the Domestic model
Explanation:
In Domestic Model the products and services of the company are customized as per the requirement of the domestic environment, Thus the customers may prefer domestic companies over other foreign companies.
For example : The American theme parks.The company customized the rides, attractions, and food offerings based on the location (like in Florida ,Europe they all have different themes)of the theme park.Thus giving the the park a local reception from the public.
Hence we can say that Road Rage is a sports goods manufacturing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the Domestic model
Given the following: 2013 2012 2011
Sales: $400,000 $450,000 $470,000
Gross Profit: $100,000 $130,000 $140,000
Net Income: $300,000 $220,000 $330,000
Conduct a trend analysis of sales in 2013 to the nearest percent. The base year is 2011.
Answer: 85%
Explanation:
The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Assume the index is scaled by a factor of 10 million; that is, if the total value of all firms in the market is $5 billion, the index would be quoted as 500. Price Shares (millions) 1/1/16 1/1/17 1/1/18 Douglas McDonnell 190 $ 105 $ 111 $ 124 Dynamics General 450 68 64 78 International Rockwell 330 97 86 102 a. Calculate the initial value of the index if a value-weighting scheme is used.
Answer:
Index Value = $8256.00 ± 1
Explanation:
Given
Price
Shares (millions) ----- 1/1/16 ----- 1/1/17 ----- 1/1/18
Douglas McDonnell 190 $ 105 $ 111 $ 124
Dynamics General 450 68 64 78
International Rockwell 330 97 86 102
Scale factor = 10 million
The index value using the weighing scheme is the value at 1/1/16
This is calculated by taking into consideration, only Colin 1/1/16.
This is given as;
Price
Shares (millions) ----- 1/1/16
Douglas McDonnell 190 $ 105
Dynamics General 450 68
International Rockwell 330 97
We're left with 2 columns; the shares and the 1/1/16 column
The index value is calculated by multiplying the shares column by the date column divided by the scale factor
So, index value = ((190 * $105) + (450 * $68) + (330 * $97))/10
Index Value = $8256.00 ± 1
Answer:
8,256
Explanation:
shown in the picture attached
Randy Inc. produces and sells tablets. The company incurred the following costs for the May: Advertising cost for monthly television ads $ 5,400 Attachable keyboard 19,400 Insurance for delivery truck 540 Factory supervisor's salary 3,450 Marketing manager's salary 3,150 Assembly worker wages 22,000 Miscellaneous soldering material used to seal case 950 Hourly wages for factory security guard 2,100 CEO's salary 7,200 Speakers 5,100 Required: Determine each of the following:
Randy Inc.'s costs include variable costs like attachable keyboards and fixed costs like advertising and salaries. Total cost calculation requires adding both types of costs. Distinguishing between these is crucial for financial analysis.
Explanation:Randy Inc. incurred a range of costs in May associated with the production and sale of tablets. These include both variable costs and fixed costs. Variable costs are those that change with the level of output, such as the cost of attachable keyboards and the miscellaneous soldering materials. Fixed costs, however, do not vary with the level of output and would include costs like advertising, insurance for delivery trucks, and salaries for the factory supervisor, marketing manager, and CEO.
To calculate the total cost, we would aggregate both fixed and variable costs. Here, considering the separation of costs is important to understand how they would impact the company's financials at different levels of production. For example, the assembly worker wages are a direct variable cost as they vary with the number of units produced, whereas the marketing manager's salary is a fixed cost as it does not change with the number of units produced.
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Meat Packers, Incorporated (MPI) preserves and packages various kinds of meats for transportation to grocery stores. To prepare and transport each meat package to a grocery store, the firm must purchase $40 in raw meat and pay $90 in wages for labor and $80 in fuel costs. In addition, the firm rents a factory for $14 comma 000 per month and makes $3 comma 000 in monthly payments on meat packaging equipment. Suppose the firm prepares and transports 2 comma 000 packages of meat per month. What are the firm's fixed and variable costs of production in a given month? The firm's fixed cost of production is $ nothing, and its variable cost of production is $ nothing. (Enter numeric responses using integers.)
Answer:
Total variable cost= $420,000
Total fixed costs= $17,000
Explanation:
Giving the following information:
Variable cost per unit:
Direct material= $40
Direct labor= $90
Unitary variable overhead= $80
Fixed costs:
Rent= $14,000 per month
Equipment= $3,000
Production= 2,000 packages
Total variable cost= unitary cost* production in units
Total variable cost= 210*2,000= $420,000
Total fixed costs= $17,000
The December 31, Year 1, balance sheet for Deen Company showed total stockholders’ equity of $73,000. Total stockholders’ equity increased by $42,500 between December 31, Year 1, and December 31, Year 2. During Year 2, Deen Company acquired $10,700 cash from the issue of common stock. Deen Company paid a $9,500 cash dividend to the stockholders during Year 2.
Required Determine the amount of net income or loss Deen reported on its Year 2 income statement.
Answer:
$41,300
Explanation:
The computation of the amount of the net income or loss reported is shown below:
Equity increased during the year $42,500
Less: Issue of shares acquired $(10,700)
Add: cash Dividends paid $9,500
Net income for the year $41,300
by adding the dividend and deducting the issued of shares acquired to the equity increased we can get the net income and the same is shown above
Coronado, Inc. makes high-quality swimsuits. During the year, the company produced 785 suits, using 1,069 yards of material, and the company purchased 925 yards of material for $4,784. The direct materials standard for the swimsuits allows 1.28 yards of material at a standard price of $4 per yard Calculate Coronado's direct materials quantity variance for the year. ( variance is zero, select "Not Applicable" and enter O for the amounts Round answer to O decimal places, e.g. 15.)
Answer:
Actual Quantity Standard quantity Standard rate
1069 1004.8 $ 4
(785 * 1.28)
Direct Material
Quantity Variance= (Standard quantity - Actual quantity) * standard price
(1004.8 - 1069) * $4
$ (256.80) unfavorable
Hence,
Direct Material Quantity Variance = $257 unfavorable
ssignment Attempts: Score: / 3 3. Problems and Applications Q1 In 2012, the Bureau of Labor Statistics (BLS) announced that of all adult Americans, 142,496,000 were employed, 12,506,000 were unemployed, and 88,310,000 were not in the labor force. What is the adult population? 243,312,000 155,002,000 142,496,000 12,506,000 The size of the labor force is , and the labor force participation rate is . What is the unemployment rate? 8.8% 57.0% 8.1% 5.1%
Answer and Explanation:
The computation is shown below:
1. Total adult population is
= Employed + Unemployed + Not in labor force
= 142,496,000 + 12,506,000 + 88,310,000
= 243,312,000
2. The size of the labor force is
= Employed + Unemployed
= 142,496,000+ 12,506,000
= 155,002,000
3. Labor force participation rate is
= Labor force ÷ adult population × 100
= 155,002,000 ÷ 243,312,000 × 100
= 63.705 %
4. Unemployment rate is
= Unemployed ÷ labor force × 100
= 12,506,000 ÷ 155,002,000 × 100
= 8.06 % or 8.1% (approx)
We simply applied the above formulas