Answer:
C, information search
Explanation:
There are stages in consumer purchase decision process which includes problem recognition, information search, evaluation of alternatives, etc.
Information search is the second stage of consumer purchase decision process. When a consumer has recognized the need for a product, the next thing is getting information on and about the product.
For the ford escape above, in the process of information search, the consumer will find out that the vehicle uses the hybrid fuel technology to deliver more power, prestige, fuel economy, etc; which is not obtainable in non-hybrid cars.
This information will enable a consumer to determine whether or not to purchase the ford escape.
Cheers.
A company owns a financial asset that is actively traded on two different exchanges (market A and market B). There is no principal market for the financial asset. The information on the two exchanges is as follows
Quoted price of asset - Transaction costs
Market A: $1,000 - $ 75
Market B: 1,050 - 150
What is the fair value of the financial asset?
A. $ 900
B. $ 925
C. $1,000
D. $1,050
Answer:
C. $1,000
Explanation:
The transaction is believed to have happened in the principal market for the liability or asset. When there is no present market like that, it is believed to happen market that is in more advantage. The market that is more advantage is the market in which the certain reporting entity can utilize the amount they received for selling the asset or minimize the amount paid for transferring the liability, after considering transportation and transaction and costs. The fair value is the price in that market with no adjustment for transaction costs. The entity will be able to receives $925 in only one condition, that is, if the asset is sold in Market X, but only $900 in Market Y. Therefore, Market X is the has more advantage, making the the fair value is $1,000. As our answer
2. One of the most fundamental determinants of the exchange rate is ______________ whereby the exchange rate between the currencies of two countries is in equilibrium when it equates the prices of a basket of goods and services in both countries.
Answer: PURCHASING POWER PARITY.
Explanation: Purchasing power is defined as the amount of goods and services that can be bought with a unit of currency.
PURCHASING POWER PARITY refers to a theory of long-term equilibrium exchange rates based on relative price levels of two countries.
Exchange rates is determined by a whole number of factors some of which include; Differentials in Inflation; Differentials in Interest Rates; Current Account Deficits; Public Debt;etc.
Gudenas Company makes a credit card sale to a customer for $500. The credit card sale has a grace period of 30 days and then an interest charge of 18% per year or 1.5% per month is added to the balance. If the unpaid balance on the above sale is $300 at the end of the grace period, the interest charge is:
A. $5.00.
B. $4.50.
C. $7.50.
D. $3.00.
Answer:
Interest charge after grace period = $4.50
Explanation:
Given:
Total credit sales = $500
Grace period = 30 days
Interest charge = 1.5 % after grace period per month
Total unpaid balance after grace period = $300
Computation of interest charge after grace period:
[tex]Interest\ charge\ after\ grace\ period=unpaid\ balance\ after\ grace\ period \times Interest\ rate[/tex]
Interest charge after grace period = $300 × 1.5%
Interest charge after grace period = $4.50
Since mortgages typically have multiple costs associated with them, a borrower may attempt to reduce these costs into a single measure in order to compare two or more mortgages. Which of the following measures is a popular tool for comparing the cost of several mortgages?
a) underwriting standards
b) contracted interest rate
c) annual percentage rate
d) teaser rate
Answer:
C. Annual percentage rate
Explanation:
Annual percentage rate, called APR is defined as a yearly rate of interest a borrower must pay on a loan. It is used in measuring full cost of a lender charges per year for funds. It is used in comparing the cost of several mortgages. It is also the effective rate of interest that is charged on an installment loan. Annual percentage rate gives an individual the idea of how much he or she will pay in order to get a loan. It is expressed as a yearly rate.
Interest spreads in the eurocurrency market are small for many reasons EXCEPT: Eurocurrency loans are secured loans. Eurocurrency deposits and loans are made in amounts of $500,000 or more on an unsecured basis. The eurocurrency is a wholesale market. Borrowers are usually large corporations or government entities
Answer:
Eurocurrency loans are secured loans
Explanation:
Base on the scenario been described in the question, all other interest spread are small for eurocurrency with only eurocurrency loans are secured loans which is not small for the spread of interest in eurocurrency. Normally, the rates on eurocurrency loans are lower than that of those in the domestic or local market of country for reasons which are essentially the same.
A chemical bathroom cleaner has an ingredient X that allows the cleaner to lather well and remove stains. The cost of producing a bottle of this bathroom cleaner is $3.60, but the bottle retails for $5.50. When consumers use the bathroom cleaner, the lather that gets washed down the drain escapes into the environment and releases allergens that cause respiratory problems for people. What is the social cost of a bottle of this cleaner?
Answer:
The external cost is the full price of the bottle ($5.50) plus all the other external costs that are born by the people affected by the chemical.
These external costs are: the health costs because of the lower quality of life that the people with respiratory problems have, and the costs for the healthcare systems, due to an increasing number of patients.
Simonne is developing a program. She names a variable %due, but then recognizes that this name violates a variable naming convention. What naming convention does it violate?
Variable names must be at least five characters in length.
Variable names must begin with a number.
Variables names cannot include a percent sign (%).
Variables names cannot include the letter e.
Answer:
Variables names cannot include a percent sign (%).
Explanation:
Answer:
C
Explanation:
Kelly Cakes Bakery purchases a new building to use for its baking operations. In addition to the purchase price, the acquisition requires the company owner to pay a commission to a realtor and fees to an attorney. The realtor commissions and legal fees will be expensed in the current period. True/ False?
Answer:
False
Explanation:
Cost of Property, Plant and Equipment Item according to IAS 16 includes : Purchase Cost and other Costs directly incurred to put the asset in the location and condition intended by the managers.
Thus, The realtor commissions and legal fees are part of costs to put the asset in the location and condition intended by the managers and hence included in cost of Building.
They are therefore not expensed in the current period
The following information pertains to a manufacturing company: Beginning finished goods inventory $48,000 Manufacturing overhead $23,000 Cost of goods manufactured $117,000 Direct labor costs were $38,000 Ending finished goods inventory $43,000 Direct materials costs $53,000 What was the company’s cost of goods sold?
Answer:
COGS= $122,000
Explanation:
Giving the following information:
Beginning finished goods inventory $48,000
Cost of goods manufactured $117,000
Ending finished goods inventory $43,000
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 48,000 + 117,000 - 43,000
COGS= $122,000
A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by upper c equals 0.2 x squared plus 10 comma 000.how fast is the cost per month changing when production is changing at the rate of 13units per month and the production level is 70units
Answer:
The cost per month is increasing at a rate $365.
Explanation:
Differentiation Formula
[tex]\frac{d}{dx}(x^n)= nx^{n-1}[/tex] [tex]\frac{d}{dx}(a)=0[/tex] [ where a is a constant][tex]\frac{d}{dx}(ax^n)=a \frac{d}{dx}(x^n)= anx^{n-1}[/tex]Given that,
A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by
[tex]c=0.2x^2+10,000[/tex].
Again given that,
the rate of changing production is 13 unit per month
i.e [tex]\frac{dx}{dt}=13[/tex]
To find the cost per month, we need to find out the value [tex]\frac{dc}{dt}[/tex] when production is changing at the rate 13 units per month and the production is 70 units.
[tex]c=0.2x^2+10,000[/tex]
Differentiating with respect to t
[tex]\frac{d}{dt}(c)=\frac{d}{dt}(0.2x^2)+\frac{d}{dx}(10,000)[/tex]
[tex]\Rightarrow \frac{dc}{dt}=0.2\frac{d}{dt}(x^2)+\frac{d}{dx}(10,000)[/tex]
[tex]\Rightarrow \frac{dc}{dt}=0.2\times 2x^{2-1}\frac{dx}{dt}+0[/tex]
[tex]\Rightarrow \frac{dc}{dt}=0.4x\frac{dx}{dt}[/tex]
Plugging [tex]\frac{dx}{dt}=13[/tex]
[tex]\Rightarrow \frac{dc}{dt}=0.4x\times 13[/tex]
[tex]\Rightarrow \frac{dc}{dt}=5.2x[/tex]
[tex]\frac{dc}{dt}|_{x=70}=5.2\times 70[/tex] [ plugging x=70]
=364
[ The unit of c is not given. Assume that the unit of c is dollar.]
The cost per month is increasing at a rate $365.
To find the rate at which the cost per month is changing, differentiate the cost function and substitute the production level.
Explanation:To find how fast the cost per month is changing, we need to find the derivative of the cost function with respect to x. Given that the cost function is given by C = 0.2x^2 + 10,000, where x represents the number of units produced per month, we can differentiate the function to find the rate of change of the cost per month.
Using the power rule, the derivative of 0.2x^2 is 0.4x. Since x is changing at the rate of 13 units per month, we substitute this value into the derivative: 0.4(13). Evaluating this expression gives us the rate at which the cost per month is changing.
Finally, substituting the production level of 70 units per month into the derivative expression: 0.4(70), we can determine the rate at which the cost per month is changing when production is at 70 units per month.
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Harry was unable to complete a task assigned to him by his superior. He also refused to work overtime. Consequently, Harry's supervisor decided to fire him. This scenario illustrates that Harry is part of a(n) _____
A) self-designing team
B) self-managing team
C) traditional work group
D) employee involvement group
Answer:
self-managing team.
Explanation:
Harry is not a team player.
A firm estimates that its proposed capital budget will force it to issue new common stock, which has a greater cost than the cost of retained earnings. The firm, however, would like to avoid issuing costly new common stock. Which of the following steps would mitigate the firmâs need to raise new common stock? a. Increasing the companyâs dividend payout ratio for the upcoming year.b. Reducing the companyâs debt ratio for the upcoming year.c. Increasing the companyâs proposed capital budget.d. All of the statements above are correct. e.None of the statements above is correct.
Answer:
Option D. All of the statements above are correct.
Explanation:
The reason is that the capital budget is the budget of investment in the business and in the current situation their is shortage of fund. So to meet the demand we can not pay dividends because it reduces the available cash available for investment. So the option A is incorrect.
Option B is also incorrect because the reducing debt ration means paying off the liabilities which again decrease the amount of cash available to invest in the company. So the option B is incorrect.
Increasing the proposed capital budget will require greater amount of funds. As we are already in shortage of funds, increasing capital budget is not the right course of action. So the option C is also incorrect.
Option E is also incorrect none of the option was correct, hence the correct option is D.
Reducing the company's debt ratio for the upcoming year could be a way to mitigate the firm's need to raise new common stock. This would free up funds being used for debt repayments, reducing the need for further external financing, such as issuing new common stock.
Explanation:The firm's need to raise additional capital by issuing costly new common stock could be mitigated by following one or several strategies that include making internal adjustments and reducing the need for such external financing. However, from your options, reducing the companyâs debt ratio for the upcoming year (Option b) is the most appropriate.
Lowering the debt ratio could free up funds currently used for debt repayments, thereby reducing the need for external financing like issuing new common stock. Increasing the dividend payout or the capital budget (Options a and c) would require more financing, not less, and so these options are not viable. So Choice b is the correct answer.
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As joint depositors, you and your spouse have two savings accounts (one with a balance of $250,000, and one with a balance of $350,000) deposited in the federally insured SFL Bank. This bank has failed and has nothing left because it paid interest rates that were too high. Altogether, how much money will you and your spouse receive from the Federal Deposit Insurance Corporation (FDIC)?
Answer:
$500,000
Explanation:
The Federal insurance corporation pays a sum of $250,000 to depositor in an insured bank for every category of qualified account owners. Deposits in different banks (but not branches ) are treated different by FDIC for the purpose of insurance.
In a joint deposit account , the federal deposit insurance corporation pays each of the spouse a sum of $250,000 each over the aggregate deposit in the account. All separate accounts owned by the person in a the same banks are merged together.
The couple will receive a total of $500,000 from the FDIC, which is the maximum insured amount for their two joint accounts at the failed bank.
When a commercial bank fails, the Federal Deposit Insurance Corporation (FDIC) steps in to protect depositors up to $250,000 per insured bank, for each account ownership category. In the scenario where a couple has two savings accounts with balances of $250,000 and $350,000 at the same bank, FDIC will reimburse $250,000 for the first account in full and $250,000 for the second account.
This is because each depositor is insured up to $250,000 per account ownership category, and joint accounts are considered a single ownership category.
Therefore, the total reimbursement the couple will receive from the FDIC will be $500,000, which is the maximum insured amount for the two accounts when combined under joint ownership.
Terps Company received a promissory note from a customer on October 1, 2019. The principal amount of the note is $25,000; the terms are 8 months and a 6% annual interest. Assuming the accounting period ends on December 31, determine the interest revenue recorded by the company for the year ending on December 31, 2020
Answer:
The answer is $3,000
Explanation:
Principal is $25,000
Tenor is 8 months
Annual interest is 6%
So the interest rate for 8 months is 4%
Therefore the monthly interest income is 4% x $25,000
=$1,000.
October 1, 2019 through December 31, 2019 is 3 months
The interest revenue that will be recorded for the year 2019 is $1,000 x 3 months
=$3,000
Choose the explanation that tells how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavior.
A. The type of responsibility center determines the strategic plans for the organization.
B. The organization tailors it's long-range and short-range plans based on the goal of each responsibility center.
C. The type of responsibility center determines what the manager is accountable for and thereby affects the manager's behavior.
D. The choice of a responsibility center type guides the variables to be included in the budgeting exercise.
E. None of the above.
F. The type of responsibility center affects financial planning models.
G. These models affect the behavior of managers who aim to achieve a high profit and increase revenues.
Answer: C. The type of responsibility center determines what the manager is accountable for and thereby affects the manager's behavior.
Explanation: The choice of a type of responsibility center( cost profit, revenue or investment ) affects the manager's behavior and what the manager will be responsible for.
Also the choice of the responsibility center type can guide the variables to be included when budgeting.
Final answer:
The type of responsibility center determines what managers are accountable for, which affects their behavior. Each center influences managerial focus—cost centers on expenses, revenue centers on sales, profit centers on both, and investment centers on asset returns and ROI. The correct answer is that responsibility centers impact manager accountability and behavior.
Explanation:
The type of responsibility center chosen within an organization greatly impacts managerial behavior because it determines what managers are accountable for. When a manager is in charge of a cost center, the focus is on controlling expenses and optimizing operational efficiency.
Conversely, if the manager oversees a revenue center, the emphasis shifts to generating sales and income. In the case of a profit center, the manager's attention is divided between both, managing costs and increasing revenues. Finally, being responsible for an investment center means that the manager must consider not only profits but also the return on investment of the assets under their control.
These different types of responsibility centers affect behavior because managers will prioritize actions that align with their performance metrics. For instance, a manager of a cost center might implement strict budget controls, while an investment center manager might analyze whether to divest from non-performing assets. Recognizing those patterns is essential to understanding how different types of responsibility centers incentivize managerial decision-making and strategic focus.
In conclusion, the correct explanation regarding how the choice of responsibility center affects behavior is: C. The type of responsibility center determines what the manager is accountable for and thereby affects the manager's behavior.
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: a. Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $40,000. b. Paid rent on office and equipment for the month, $6,000. c. Purchased supplies on account, $3,200. d. Paid creditor on account, $1,750. e. Earned fees, receiving cash, $18,250. f. Paid automobile expenses (including rental charge) for month, $1,880, and miscel- laneous expenses, $420. g. Paid office salaries, $5,000. h. Determined that the cost of supplies used was $1,400. i. Withdrew cash for personal use, $2,000.1. Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance.3. Prepare an unadjusted trial balance as of January 31, 2019.4. Determine the following: a. Amount of total revenue recorded in the ledger.b. Amount of total expenses recorded in the ledger.c. Amount of net income for January.5. Determine the increase or decrease in ownerâs equity for January.
The Journal Entries from the above financial transactions are enumerated below.
The Journal Entries1. The Journalized entries for transactions Jan. 1 through 9 are given as follows:
a. Cash | 40,000
Owner's Equity | 40,000
b. Rent Expense | 6,000
Cash | 6,000
c. Supplies | 3,200
Accounts Payable | 3,200
d. Accounts Payable | 1,750
Cash | 1,750
e. Cash | 18,250
Fees Earned | 18,250
f. Automobile Expense | 1,880
Miscellaneous Expense | 420
Cash | 2,300
g. Salaries Expense | 5,000
Cash | 5,000
h. Supplies Expense | 1,400
Supplies | 1,400
i. Owner's Equity Withdrawal | 2,000
Cash | 2,000
2. For T accounts, you'd list the date and transaction on the left side, and then the debit and credit amounts on the right side.
3. Here's how the unadjusted trial balance would look:
| Account | Debit ($) | Credit ($) |
|---------------------------|-----------|------------|
| Cash | | 52,250 |
| Supplies | 1,800 | |
| Accounts Payable | | 1,450 |
| Owner's Equity | 36,000 | |
| Fees Earned | | 18,250 |
| Rent Expense | 6,000 | |
| Automobile Expense | 1,880 | |
| Miscellaneous Expense | 420 | |
| Salaries Expense | 5,000 | |
| Supplies Expense | 1,400 | |
| Owner's Equity Withdrawal | 2,000 | |
|---------------------------|-----------|------------|
| Total | 54,700 | 72,950 |
4. Determine the following:
a. Total revenue recorded in the ledger: $18,250 (Fees Earned)
b. Total expenses recorded in the ledger: $15,700 (Rent Expense + Automobile Expense + Miscellaneous Expense + Salaries Expense + Supplies Expense)
c. Net income for January: $18,250 (Total Revenue) - $15,700 (Total Expenses) = $2,550
5. Determine the increase or decrease in owner's equity for January:
Increase in Owner's Equity = Net Income - Owner's Withdrawal
= $2,550 - $2,000
= $550 (increase)
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This question involves journalizing transactions, posting entries to T accounts, preparing an unadjusted trial balance, determining total revenue, total expenses, net income, and the change in owner's equity.
Explanation:1. Journal Entries:
Jan. 1
Cash 40,000Jan. 2
Rent Expense 6,000Jan. 3
Supplies 3,200Jan. 5
Accounts Payable 1,750Jan. 9
Cash 18,2502. T Accounts:
CashJan. 1, 40,000Sharon Matthews, Capital
Jan. 1, 40,000Rent Expense
Jan. 2, 6,000Supplies
Jan. 3, 3,200Accounts Payable
Jan. 3, 3,200Jan. 5, 1,750Service Revenue
Jan. 9, 18,2503. Unadjusted Trial Balance:
Account TitleDebitCredit
Cash
40,000
Rent Expense
6,000
Supplies
3,200
Accounts Payable
5,950
Service Revenue
18,250
Sharon Matthews, Capital
40,000
4. Net Income:
Total revenue: 18,250Total expenses: 8,880Net income for January: 9,3705. Increase or decrease in owner's equity for January: 9,370 increase
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5. Cleveland Resorts purchased equipment for $40,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The machine operated for 2,200 hours in the first year, 3,600 in the second year, 2,850 in the third year, and 3,350 in the fourth year. The company expects the machine to operate for a total of 12,000 hours over its four-year life. Calculate depreciation expense and the accumulated depreciation of the equipment for the second year using each of the following depreciation methods: (a) straight-line,
Answer:
Annual depreciation= $8,00
Accumulated depreciation year 2= $16,000
Explanation:
Giving the following information:
Cleveland Resorts purchased equipment for $40,000. Residual value at the end of an estimated four-year service life is expected to be $8,000.
Under the straight-line method, the depreciation expense remains constant during the useful life of the equipment. We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (40,000 - 8,000)/4= $8,000
Accumulated depreciation year 2= 8,000*2= $16,000
Stacey was at wor k when Ann, her sister, called to confirm their dinner plan the following weekend at their Aunt Hilda's farmhouse. However, when Stacey called her back, Ann could not hear most of what she said because Jennifer, Stacey said she would call Joe, her husband, and get back to her. communication process depicted in this scenario?
A) Jennifer
B) Stacey
C) Joe
D) Ann
E) Hilda
Leigh Delight Candy, Inc. is choosing between two bonds in which to invest their cash. One is being offered from Hershey's and will mature in 10 years and pay $30 each quarter. The other alternative is a Mars' bond that will mature in 20 years and pay $30 each quarter. What would be the present value of each bond if the discount rate is 10% compounded quarterly, and each bond pays $1,000 at maturity?
Answer:
Hersey's bond = $1125.513
Mars bond = $1172.259
Explanation:
Hersey bond;
Period(t) = 10years = 40(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
Using the both present value (PV) and compound interest formula ;
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-40)÷0.025] + [1000÷(1.025)^40]
PV =( 753.083251562) + (372.4306236)
PV = $1125.513
Mars bond;
Period(t) = 20years = 80(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-80)÷0.025] + [1000÷(1.025)^80]
PV =(1033.55451663) + (138.704569467)
PV = $1172.259
The present value of Hersey's bond = $1125.513.
And, the present value of the Mars bond = $1172.259.
Calculation of the present value:For Hersey bond;
Period(t) = 10years = 40(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
Now the following formula should be used
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-40)÷0.025] + [1000÷(1.025)^40]
PV =( 753.083251562) + (372.4306236)
PV = $1125.513
For Mars bond;
Period(t) = 20years = 80(quartely)
Coupon (C) = $30
Rate (r) = 0.1 = 0.025(quarterly)
Pay at maturity(p) = $1000
Now
PV =[ C × (1 - (1+r)^-t) ÷ r] + [p ÷ (1 + r)^t]
PV = [30×(1-(1.025)^-80)÷0.025] + [1000÷(1.025)^80]
PV =(1033.55451663) + (138.704569467)
PV = $1172.259
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New-Tech Corporation borrowed $20,000 from the bank on March 1, 2011. The note carried a 9% annual interest rate and a 1-year term to maturity. The company paid the principal and the interest in cash on the maturity date. What amount of interest expense will New-Tech Corporation show on its 2011 and 2012 income statements? 2011 2012 a $ -O- $1,800 b. $1,800 $ -O- $1,500 $ 300 d. $1,350 $ 450
Answer:
The correct answer is:
$ -O- $1,800 (a)
Explanation:
Principal = Amount borrowed = $20,000
interest rate = 9% = 0.09
Time = 1 year
Simple Interest = Principal × Rate × Time
Simple Interest = 20,000 × 0.09 × 1 = $1,800.
Next, we are asked to show how interest expense will appear in 2011 and 2012 income statements respectively. First note that the 2011 interest expense will be recorded as $0 because that was the year in which the money was borrowed, and it was not paid back until 2012. In 2012, the interest and principal was paid back, and from the calculation, the interest paid was $1,800.
A state employees' pension fund invested a total of one million dollars in two accounts that earned 3.5% and 4.5% annual simple interest. At the end of the year, the total interest earned from the two investments was $39,000. How much was invested at each rate?
Answer:
Let the investment in first account be x and this account is earning 3.5% interest
So Interest on this account is 3.5% of x = 0.035x
So the investment in second account would be (1,000,000-x) and this account is earning 4.5% interest
So the interest on this account is 4.5% of (1,000,000-x) = 0.045*(1,000,000-x)
Given that total interest for the year is $42,000
So we have
0.035x + 0.045(1,000,000-x) = 42,000
0.035x - 0.045x + 0.045*1,000,000 = 42,000
-0.01x + 45,000 = 42,000
-0.01x = 42,000-45,000
-0.01x = - 3000
0.01x = 3000
x = 3000/0.01
x= 3,00,000
Therefore Investment in one account s 300,000 and the investment in other account is 1,000,000-300,000 = 700,000
Explanation:
Hope this helps
To determine the amounts invested in each account, we use a system of linear equations. By defining variables, setting up equations for the total investment and total interest, and solving the system, we find that $600,000 was invested at 3.5% and $400,000 at 4.5%.
To solve for how much was invested in each account earning 3.5% and 4.5% annual simple interest, we can set up a system of equations using the given information. Let's define x as the amount invested at 3.5% and y as the amount invested at 4.5%. The total amount invested is $1,000,000, so we have the equation:
x + y = 1,000,000 ... (1)
The total interest earned from the two investments is $39,000. The interest from the account invested at 3.5% is 0.035x and from the account at 4.5% is 0.045y, so we get the equation:
0.035x + 0.045y = 39,000 ... (2)
We can now solve this system of equations using substitution or elimination. Using substitution, we can express y in terms of x from equation (1):
y = 1,000,000 - x
Substitute this into equation (2):
0.035x + 0.045(1,000,000 - x) = 39,000
Simplify and solve for x:
0.035x + 45,000 - 0.045x = 39,000
-0.01x = -6,000
x = 600,000
Using the value of x we can find y:
y = 1,000,000 - 600,000
y = 400,000
Therefore, $600,000 was invested at the 3.5% rate and $400,000 at the 4.5% rate.
Tristan is the financial manager of a small company. While sales are steady, customers are taking longer to pay, and he has had increasing difficulty obtaining short-term loans to finance the day-to-day operations of the company. Tristan's company is facing a(n)
Answer:
cash-flow-problem
Explanation:
Based on the scenario being described within the question it can be said that in this specific situation Tristan's company is facing a cash-flow-problem. This is a problem that occurs when a company begins to struggle to pay off it's debts as the due dates arrive. Which can easily cause a business to shut down due to not being able to pay off these debts.
Answer:
Cash-flow problem
Explanation:
Tristan the financial manager of a small company, experienced steady sales but customers are taking longer to pay, and he has had increasing difficulty obtaining short-term loans to finance the day-to-day operations of the company.
Hence, Tristan's company is facing a cash-flow problem.
In Business, a cash flow problem usually occurs when an individual or organization has difficulty or is struggling to obtain loans and pay its debts as they become due.
Katlin knew that her established customers liked her product much better than her competitor’s. She was planning to expand into new markets. She was planning to charge a higher price than competitors to help demonstrate that her products have high quality. Katlin was considering ______.
Answer:
Premium pricing
Explanation:
Premium pricing is the strategy of charging a high price to maintain a brand, a business, a product or a product status . In this, the sales volumes remain small, by keeping prices high. This allows carefully sustaining the value, status, prestige and brand value.
So according to the given scenario, Katlin wants to expand into new markets and planning to charge a higher price as compared to the competitors so it reflects the concept of premium pricing
SummerSnowman Industries' last dividend was $1.25. The dividend growth rate is expected to be constant at 15.0% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price? Do not round intermediate calculations.
Answer:
$33.50
Explanation:
we can use the perpetual growth model to determine the price of the stock
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + [($1.25 x 1.15³ x 1.06)/(11% - 6%)]/1.11³
the stock price in 3 years = ($1.25 x 1.15³ x 1.06)/(11% - 6%) = $40.30
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + $40.30/1.11³ = $1.30 + $1.34 + $1.39 + $29.47 = $33.50
Alatan owns a building supply store in Russ County. His trade extends throughout River City, the largest city in Russ County, but not beyond the county limits. He sells his store to Hilary and, as part of the transaction, Alatan agrees not to engage in the same type of business anywhere in River City for a period of four (4) years. In this case:
a) The geographic restraint is reasonable.
b) This agreement is unreasonable.
c) The agreement unduly interferes with the interest of the public.
d) Both (b) and (c).
Answer:
A) The geographic restraint is reasonable.
Explanation:
Generally non-compete agreements are done between employees and their employer and in order for them to be enforceable they must be reasonable and the employee must be compensated in some way (usually when the contract is signed a special compensation must be set, like a high salary or bonus, etc.).
In this case, the non-compete agreement is made between the seller and buyer of a business. The agreement includes a specific geographic restriction and lasts 4 years, so the agreement would be considered valid by a court. Generally if the non-compete agreement was between an employee and his/her employer and lasted that long it wouldn't be enforceable, but for a business a 4 year period is reasonable.
A senior team leader has just been offered a job with another company. The offer includes a promotion and more money, but requires a move to a town that is undesirable to the team leader. She has great difficulty deciding whether to take the job when she considers the pros and cons of the offer. The conflict she is experiencing is known as ________ conflict.
Answer:
Approach-Avoidance
Explanation:
Approach avoidance conflict is a situation whereby a goal possesses both positive aspects and negative aspects making the goal look appealing and unappealing at the same time leading to the approach and avoidance reactions at thesame time. In this case, the goal is a new job and the positive aspects or advantages are increased in both position and money when compared to her current job. But has a negative aspects of relocating tons new place in which is not desired by the individual.
Answer:
The conflict she is experiencing is known as approach-avoidance conflict.
Explanation:
Approach-avoidance conflict is said to occur when someone finds himself/herself in the middle of a situation that has both negative and positive aspects. In other words, such a person has to make the decision of pursuing a goal that has its advantages or avoiding the same goal because of its disadvantages.
The senior team leader (in the question) just got a job that promotes her in ranks (an advantage) with an increase in pay compared to what she used to earn (also an advantage). However, in order to work such a job, she has to relocate to a town that she doesn't like (a huge disadvantage).
Thus, she is quite uncertain about whether to take the job in view of its advantage or leave it in view of its disadvantage. In other words, she is experiencing conflicting thoughts in the middle of a situation that has both negative and positive aspects.
Did you hear that Glenn is returning back to the States, to work in corporate headquarters as vice president of environmental services in the international division?" asked Tony. His co-worker, Jaime, replied, "Yes. Obviously those four years that Glenn has spent abroad, in our Paris and Tokyo offices, have served him well." Tony countered, "Well, he deserves the recognition and, frankly, our international division will benefit from Glenn's leadership. No doubt he has learned a great deal about living and doing business in other cultures." In leaving his culture and working in other cultures for a significant period of time, Glenn will bring _____________ leadership to his organization
Answer:
The correct answer is letter "A": bridge.
Explanation:
Leadership has different functions within companies and teams. It is a bridge to the extent that leaders act as mediators between parties that do not come to a settlement or that have trouble dealing with each other because of a wide range of reasons such as cultural features. Leaders try to understand each party's position and offer a solution that benefits both individuals so they can work towards a common goal.
Thus, thanks to his experience with diverse cultures abroad, Glenn is likely to act as a bridge after he comes back to the U.S.
Answer:
bridge
Explanation:
The notion of building bridges represents binding different cultures or social classes and bringing them together. In a company, bridge leadership refers to promoting collaborative actions between different divisions or departments. In this case, Glenn is returning from Europe and Tokyo after four years and his future subordinates expect that he will be able to transfer his knowledge and work experience to them. They also expect a change in the way they work with the company's foreign branches.
Swifty Corporation required production for June is 42000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 210000 and 240000 pounds, respectively. How many pounds of direct material Z must be purchased?
Answer:
Purchases= 156,000 pounds
Explanation:
Giving the following information:
Swifty Corporation required production for June is 42000 units.
Standard quantity= 3 pounds per unit.
Beginning inventory= 210,000 pounds
Desired ending inventory= 240,000 pounds.
To calculate the purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 42,000*3 + 240,000 - 210,000
Purchases= 156,000 pounds
Suppose velocity is constant at 4, real output is constant at 10, and the price level is 2. From this initial situation, the central bank increases the nominal money supply to 6. If velocity and output remain unchanged, by how much will the price level increase?
A) 2.4%
B) 20%
C) 24%
D) 50%
Answer:
The price level will increase 20%. The right answer is B.
Explanation:
In order to calculate how much will the price level increase, we require to calculate according to the data we have the new price level.
Hence, New price level = 6 + [ (1 - 4 / 10) * 2 ]
= 6 + [ (1 - 0.40) * 2 ]
= 6 + (0.60 * 2)
= 6 + 1.20
= $ 7.20
Therefore, the Increase in price level = (7.20 - 6) / 6
= 1.20 / 6
= 0.20=20 %
The price level will increase 20%.
Mrs. Renfro's, Inc., is a company that sells 25 different relishes in 45 different states. Mrs. Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked. Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste. The popularity of hot and spicy food is an example of a __________ that Mrs. Renfro's has taken advantage of to make its product a success.
Answer:
Demand factor
Explanation:
Demand factor refers to a condition that determines the ability of a consumer and which influences his or her willingness to purchase a product.
The popularity of hot and spicy food is an example of a demand factor that Mrs. Renfro's has taken advantage of to make its product a success.
The demand for Mrs. Renfro's inc. Chipotle corn salsa is high that it couldn't meet the demand. Mrs. Renfro has taken advantage of the Popularity of the product because of how and spicy taste which makes consumers prefer it to other products.
The preference of the product to other products has made the demand for it increase over time.
Demand of a commodity can be defined as the total quantity of the commodity acquired by a consumer over time.
Demand factor is the ratio of the maximum quantity demanded during a period to the total supply of the product.
Mrs. Renfro's has utilized a market trend towards hot and spicy flavors to succeed in selling its chipotle corn salsa.
The popularity of hot and spicy food that Mrs. Renfro's has capitalized on is an example of a market trend. Market trends represent directional movements of consumer preferences that enable companies to focus their product development and marketing strategies to meet evolving consumer demands.
By recognizing the trend towards hot and spicy flavors, Mrs. Renfro's has positioned its chipotle corn salsa to appeal to this growing segment, thereby increasing demand and sales.
Additionally, by offering different sizes of salsa, Mrs. Renfro's is practicing second-degree price discrimination, which caters to distinct customer segments with varying demands as shown in the consumer demand curves for different jar sizes (A for smaller quantity preferred by Consumer 1, B for larger quantity preferred by Consumer 2).
Furthermore, understanding cross price elasticity helps determine the relationship between goods—such as chips and salsa—and whether they are substitutes or complements.
This knowledge is critical for businesses when setting pricing strategies and anticipating customer purchasing patterns in response to changes in the prices of related goods. Mrs. Renfro's might explore this when considering the price of their salsa relative to other snack items.