Answer:
$73,500 is the revenue TopChop will recognize for the arrangement with Carlos.
Explanation:
Revenue is calculated as follows.
= amount received + Use of name
= $56,000 + $35,000 × (1÷2)
= $73,500
New franchise fee can be immediately recognised as income.
Final answer:
TopChop would recognize $56,000 for the initial equipment and training, and a prorated amount of $17,500 for the half-year use of the franchise name and consulting services, totaling $73,500 in revenue for 2016.
Explanation:
TopChop will recognize revenue based on when the services are provided. Since the franchise was purchased on July 1, 2016, and Carlos completed training and opened for business on August 1, 2016, TopChop would recognize the full $56,000 for the initial training, equipment, and furnishings immediately, as this is the standalone selling price and the service was provided.
Additionally, TopChop would recognize prorated annual fees for the consulting services and use of the TopChop name starting from July 1, 2016, to December 31, 2016 (half of the $35,000 annual fee), which is $17,500.
Therefore, the total revenue recognized by TopChop for its arrangement with Carlos in 2016 would be $56,000 (for setup services) plus $17,500 (from the annual fee), totaling $73,500.
What is the definition of a dominant strategy in game theory?
1- to allocate all personnel resources towards defensive talent in order to dominate opposing offenses
2- the best strategy to pick, assuming the other player picks their own best choice
3- to make the exact same move that was made by the other player
4- the choice that causes the payoff for the other player to be minimized, regardless of the payoff it earns
5- the best strategy to pick no matter which moves are chosen by the other player
Answer:
5- the best strategy to pick no matter which moves are chosen by the other player
Explanation:
Dominant strategy is the best strategy to pick no matter which moves are chosen by the other player.
Dominant strategy is used in game theory to determine the best strategy for oligopoly firms in a collusion.
For example, in a prisoners dilemma, there are two prisoners, if both of them confess, they get 5 years in prison, if both of them don't confess, they are set free and if one confesses and the other doesn't, the prisoner that confesses gets 2 years in prison while the other who doesn't confess gets 10 years in prison.
The dominant strategy here is for the prisoners to confess. It is the best strategy regardless of what the other prisoner does.
I hope my answer helps you.
What will you need to change to make the message appropriate for both a colleague and your supervisor?
a. Give a complete summary of the survey plan in case your colleague has forgotten what you talked about.
b. Describe what you had for lunch and what the kids look like in detail.
c. Make the message more formal, remove the personal discussion, and give more specifics about the survey plan.
Answer:
Letter c is correct. Make the message more formal, remove the personal discussion, and give more specifics about the survey plan.
Explanation:
A poorly written message can damage an employee's image within an organization. So when sending a message to a colleague and a supervisor at the same time, it is ideal that personal discussions are removed and the focus is only on business matters. Formality must be maintained to convey respect and professional attitude in order to avoid communication noise and achieve clarity in the message.
Bell’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 6000 Variable Overhead 3000 Fixed Overhead ? The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?
Final answer:
The fixed overhead costs of making the component are $6000.
Explanation:
To determine the fixed overhead costs of making the component, we need to compare the cost of making the component with the cost of buying it externally. The total cost of making the component includes direct materials, direct labor, variable overhead, and fixed overhead. We are given that the direct materials cost is $24000, direct labor cost is $6000, and the variable overhead cost is $3000. The fixed overhead cost can be calculated by subtracting the sum of the other costs from the cost of purchasing the component externally:
Fixed Overhead = Cost of Purchasing Externally - (Direct Materials + Direct Labor + Variable Overhead)
Fixed Overhead = $39000 - ($24000 + $6000 + $3000)
Fixed Overhead = $39000 - $33000
Fixed Overhead = $6000
Fixed overhead cost of making component: $6,000. Total cost of making equals external purchase cost at $39,000.
To find the fixed overhead costs of making the component, we need to determine the total cost of making the component and compare it with the cost of purchasing externally.
Given:
- Direct Materials: $24,000
- Direct Labor: $6,000
- Variable Overhead: $3,000
- Fixed Overhead: ?
- External purchase cost for 1000 units: $39,000
- Unavoidable fixed costs if purchased externally: $2,000
Step-by-Step Calculation:
1. Total Cost of Making Internally:
- Total Variable Cost = Direct Materials + Direct Labor + Variable Overhead
- Total Variable Cost = $24,000 + $6,000 + $3,000 = $33,000
- Total Cost of Making = Total Variable Cost + Fixed Overhead
- Total Cost of Making = $33,000 + Fixed Overhead
2. Total Cost of Purchasing Externally:
- External purchase cost = $39,000
3. Equating Costs to Determine Fixed Overhead:
- The company is indifferent between making or buying, meaning the costs are equal.
- Set the total cost of making equal to the external purchase cost and solve for Fixed Overhead:
[tex]\[ $33,000 + \text{Fixed Overhead} = $39,000 \][/tex]
[tex]\[ \text{Fixed Overhead} = $39,000 - $33,000 \][/tex]
[tex]\[ \text{Fixed Overhead} = $6,000 \][/tex]
Answer:
The fixed overhead costs of making the component are $6,000.
Debra, age 51, is self-employed and has never made a lot of money. But, she has consistently saved $4632 per year into a traditional IRA. Over the years, she has taken full advantage of the tax law and deducted each year’s contribution from her tax return. If Debra started saving at age 26 and has earned an average annual return of 5%, how much is the account worth today?
A. $619398.
B. $48556.
C. $23677.
D. $221072.
Answer:
D. $221072.
Explanation:
In this question, we use the future value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $0
Rate of interest = 5%
NPER = 25 years
PMT = 4,632
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after solving this, the answer would be $221,071.92
Allise Industries manufactures and exports copper wiring to markets all over the world. It has adopted an advertising organizational structure in which its managers in each country or region have the authority to make decisions for their market. Allise Industries has a __________ organizational structure.
A) Centralized
B) Decentralized
C) Matrix
D) Individualized
E) Globalized
Answer:
Letter B is correct. Decentralized.
Explanation:
A decentralized organizational structure has as its main feature the flexible hierarchy, ie decision making is also shared with the lower hierarchical levels.
This structure model has the advantage of motivating employees, who feel valued and fundamental to organizational success. Another advantage of decentralization is the flexibility to deal with new marketing challenges and the speed of decision making, which aids in business opportunity costs.
Which of the following is not an advantage of ROI?
(A) It encourages managers of departments with high ROIs to invest in average ROI projects.
(B) It encourages managers to pay careful attention to the relationships among sales, expenses, and investment.
(C) It encourages cost efficiency.
(D) It discourages excessive investment in operating assets.
Answer:
(A) It encourages managers of departments with high ROIs to invest in average ROI projects.
Explanation:
The full form of ROI is Return of investment. Generally, ROI is used by different organizations to find out the profit from the expenditure. By using the concept of return of investment the organization can save money as well as time.ROI also helps to explore and measure potential returns on various investment opportunities
Therefore answer is a.
Final answer:
Option (A) is not an advantage of ROI as it may lead to underinvestment in projects with average ROI, even if they're beneficial to the company. Options (B), (C), and (D) describe true advantages of utilizing ROI.
Explanation:
The question deals with the concept of Return on Investment (ROI), which is crucial in evaluating the performance of business investments and departments. Specifically, the question is asking which option is not an advantage of using ROI.
(A) states ROI would encourage managers with high ROIs to invest in average ROI projects. This is generally considered a disadvantage of ROI because it can lead to underinvestment as managers may avoid investments that could lower their department's overall ROI, even if these investments are beneficial to the company as a whole.
On the other hand, (B) and (C) are true advantages as ROI indeed encourages managers to focus on sales, expenses, and efficiency. (D) can also be seen as an advantage because dissuading excessive investment can prevent over-capitalization and encourage the optimal use of resources.
Which of the following is the type of logical database model that treats data as if they were stored in two-dimensional tables?
A) Open source DBMS
B) Two-tiered DBMS
C) Relational DBMS
D) Pre-digital DBMS
E) Hierarchical DBMS
Answer: (C) Relational DBMS
Explanation:
The relational database management system (DBMS) is specifically designed for the purpose of relational databases by using the concept database management system.
The relational database is basically refers to the DBMS which store the data or information in the form of structured format by using various columns and rows.
The relational DBMS makes more easy to access the values which is more specific in the database management system.
Therefore, the relational DBMS is one of the type of logical database system that basically treats the data in the form of dimensional table
C) Relational DBMS
RDBMS is a program that serves a database system whose main entity consists of tables that have relations from one table to another.
Further Explanation
RDBMS is short for Relational Database Management System.
A database consists of many tables. This table consists of many fields which are the columns. Fill in each row of this table is data.
To create an integrated database system, one table has another relationship that must always be maintained. Each table has a primary key, this primary key is then linked to the second table and becomes the foreign key for this second table.
Various kinds of relations in the database
one-to-one one-to-many many-to-many
RDBMS will maintain that the data which is the key relation of foreign_key and primary_key is data that is really related to one another. If there is data that is incorrectly connected, RDMBS will reject the data. This will make it easier for program makers (software developers) to do the coding because it is assisted by automatic checking by RDBMS.
The complaint that arises and is generally known about the existence of RDBMS is the fact that the current implementation is seen as too "static". Speculation has also arisen over the possibility of creating a new generation database system that uses a "dynamically relational" model with columns that can be created dynamically, dynamically developing sizes, dynamically defined.
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Class: College
Subject: Business
Keywords: database, relational, table
If an excise tax is imposed on restaurant meals, a. fewer meals will be produced and sold b. more meals will be produced and sold c. the government's tax revenue will fall d. the market price of meals will decrease e. restaurants will sell more meals, but at a lower price per meal
Answer:
Correct option is (a)
Explanation:
Excise tax is an indirect tax which is not imposed on customers directly. Excise tax is imposed on producers or sellers for goods produced and they in turn transfer the burden of tax on customers in the form of higher prices. That is why, it is called indirect tax.
It is usually imposed on those goods such as liquor and tobacco whose consumption the Government needs to decrease. If excise tax is imposed on restaurant meals, then the restaurant will be able to produce and sell less at the same price it was charging earlier. If the restaurant wishes to sell more, then it will have to charge higher price.
Common stock valuelong dashVariable growth Lawrence Industries' most recent annual dividend was $1.80 per share (D0equals$ 1.80), and the firm's required return is 11%. Find the market value of Lawrence's shares when dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity.
Answer:
market value of Lawrence's shares is $34.113
Explanation:
given data
annual dividend = $1.80 per share
Current year dividend Do = $ 1.80
required return = 11%
dividends expected grow = 8% annually
time = 3 year
growth rate = 5%
to find out
the market value of Lawrence's shares
solution
we will apply here Gordon Growth Model for terminal value in year 3 that is
Gordon Growth Model P3 = [tex]\frac{D4}{r-G}[/tex]
and [tex]\frac{D4}{r-G}[/tex] = [tex]\frac{D3(1+G)}{r-G}[/tex]
here r is required return and G is growth rate and D1 is Expected dividend of next 1 year
so here we get D1, D2, D3 and D4 they are as
D1 = $1.8×(1+0.08)
D1 = $1.944
and
D2 = $1.944×(1+0.08)
D2 =$2.0995
and
D3 = $2.0995×(1+0.08)
D3 = $2.267
and
D4 = $2.267×(1+0.05)
D4= $2.38
so
we get here now market value of the share year 3rd end that is
P3 = [tex]\frac{2.38}{0.11-0.05}[/tex]
P3 = $39.67
and
Market value of the share today is
Market value = [tex]\frac{D1}{(1.11)1} + \frac{D2}{(1.11)2} + \frac{D3}{(1.11)3} + \frac{D4}{(1.11)4}[/tex]
put here all value
Market value = [tex]\frac{1.944}{(1.11)1} + \frac{2.0995}{(1.11)2} + \frac{2.267}{(1.11)3} + \frac{39.67}{(1.11)4}[/tex]
solve we get
Market value = $34.113
so market value of Lawrence's shares is $34.113
Stock Y has a beta of 1.40 and an expected return of 14.8 percent. Stock Z has a beta of .85 and an expected return of 11.3 percent. If the risk-free rate is 4.85 percent and the market risk premium is 7.35 percent, are these stocks overvalued or undervalued?
Answer:
Stock Y has overvalued and Stock Z as undervalued
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
For Stock Y
= 4.85% + 1.40 × 7.35%
= 4.85% + 10.29%
= 15.14%
For Stock Z
= 4.85% + 0.85 × 7.35%
= 4.85% + 6.2475%
= 11.0975%
The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is applied in the answer
As we see the expected return of both the stock So, Stock Y has overvalued and Stock Z as undervalued
Sunny Day Manufacturing Company has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of the year. The company’s earnings’ and dividends’ growth rate are expected to grow at the constant rate of 8.70% into the foreseeable future. If Sunny Day expects to incur flotation costs of 6.50% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be .
Answer:
Flotation adjusted cost of equity is 15.21% .
Explanation:
Current Stock price, P = $33.35 per share
Flotation cost, F = 6.50%
Net proceed from sale of stock = P × (1 - F)
= $33.35 × (1 - 6.50%)
= $31.18225
Net proceed from sale of stock is $31.18225.
Flotation adjusted cost of equity:
= (Expected dividend ÷ Net Proceed from sale of equity) + Growth rate
= ($2.03 ÷ $31.18225) + 8.70%
= 6.51% + 8.70%
= 15.21%
Flotation adjusted cost of equity is 15.21% .
Valuation Using an Income Statement Multiple JAKKS Pacific Inc., a toy manufacturer, reports net income for the recent twelve months of $14.73 million. JAKKS’ has 20.05 million shares outstanding. The industry average PE (using the trailing twelve months earnings) for its competitors is 22.17. Using this industry average PE, estimate the intrinsic value of JAKKS Pacific’s equity. Do not round until your final answer. Round answer to two decimal places.
Answer:
$16.27
Explanation:
For computing the intrinsic value, first we have to compute the earning per share which is shown below:
Earning per share = (Net income) ÷ (Number of shares outstanding)
= ($14.73 million) ÷ (20.05 million shares)
= 0.734
Now the intrinsic value would be
= Earning per share × P/E ratio
= 0.734 × 22.17
= $16.27
To calculate the intrinsic value of JAKKS Pacific's equity, we multiply the earnings per share by the industry average P/E ratio and then by the number of shares outstanding, resulting in an estimated equity value of $326,414,000.
Explanation:To estimate the intrinsic value of JAKKS Pacific's equity using the industry average P/E ratio, we first calculate JAKKS' earnings per share (EPS) by dividing its net income by the number of shares outstanding. This gives us an EPS of $14.73 million / 20.05 million shares = $0.7347 per share. We then multiply the EPS by the industry average P/E ratio of 22.17 to estimate the intrinsic value per share. Hence, the intrinsic value per share would be $0.7347 * 22.17 = $16.28. The total estimated intrinsic equity value of JAKKS would be the value per share multiplied by the total number of shares, which equals $16.28 * 20.05 million shares = $326,414,000.
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The Portland Division's operating data for the past two years is as follows: Year 1 Year 2 Return on investment 12 % 24 % Net operating income ? $ 288,000 Turnover ? 2 Margin ? ? Sales $ 1,600,000 ? The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The net operating income for Year 1 was:
Multiple Choice
A. $192,000
B. $128,000
C. $266,667
D. $208,000
To find the net operating income for Year 1 in the Portland Division, we need to determine the margin for Year 1. Given that the margin for Year 2 was 150% of the margin for Year 1, we can solve for the margin of Year 1 and calculate the net operating income.
Explanation:To find the net operating income for Year 1, we need to determine the margin for Year 1.
We know that the margin for Year 2 was 150% of the margin for Year 1. Let's assume the margin for Year 1 is x.
From the given information, we can write the equation: 1.5x = Margin for Year 2.
Next, we can find the margin for Year 2 by multiplying the turnover and margin.
From the given information, we have: 2 * x = Margin for Year 2.
Solving these equations simultaneously, we get x = 1, and the margin for Year 1 is 1.
Therefore, the net operating income for Year 1 is $192,000 (1 * $192,000 = $192,000).
Fisher Steel produces steel plates for manufacturing and construction. They generally use a static budget with the following costs based on 50,000 units per month: Indirect materials, $105,000; indirect labor, $98,000; utilities, $14,000; supervision, $5,000; depreciation, $22,000. If Fisher wanted to create a flexible budget for 60,000 units, what value would they record for fixed costs?
A : $49,200
B : $32,400
C : $27,000
D : $41,000
Answer:
C : $27,000
Explanation:
Mainly there are two types of cost i.e variable cost and the fixed cost. The variable cost is that cost which is change when the production level change whereas the fixed cost is that cost which remains constant whether production level changes or not
So, the variable cost includes indirect material, indirect labor, and utilities
And, the fixed cost includes supervision and depreciation expense.
Now the fixed cost would be
= Supervision + depreciation expense
= $22,000 + $5,000
= $27,000
U.S. residents accounted for over 75 percent of cruise ship passengers, and U.S. ports had 8 million passengers leaving on cruises in 2004. The growth in cruise travel was phenomenal after the terrorist attacks on September 11, 2001. According to a situational analysis, this event created an _____ for the industry.a. internal strength
b. internal weakness
c. internal threat
d. external weakness
e. external opportunity
Answer:
e. External opportunity
Explanation:
An external opportunity is an extension of the market due to some external development outside the industry. In this case, the cruise industry has benefited in a major way due to external developments.
Situational analysis would mean that the September 11 attacks created an e. external opportunity.
What is an external opportunity?This is when an event happens outside an industry that leads to the industry experiencing growth.
The 9/11 attacks were outside the cruise ship industry but as a result of them, the Cruise ship industry recorded massive growth.
In conclusion, option E is correct.
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The industry that produces portable CD players is in long-run equilibrium. Then the demand for portable CD players decreases permanently. As a result, firms will Some firms will ____ the market, and the market supply curve will shift ______. exit leftward exit rightward enter, rightward enter, leftward
Answer:
As a result firms will exit the market and the supply curve will shift leftward.
Explanation:
Since the demand decreases permanently in the market for CD players, the existing companies will incur economic loss, as because they do have existing stock, which shall not be sold on the current price.
Also no new manufacturing will be done and in future the supply will shift leftward as there will be less suppliers in the market.
Basically the suppliers, when will accept the permanent decline in demand will majorly exit the market and then they will find alternative businesses, with high demand.
Accordingly the firms will exit and accordingly will less suppliers the supply will be decreased and curve will move leftward.
ABC's investment managers buy an assortment of stocks and bonds or other investments and then repackage them into different products investors may wish to purchase. The company then sells shares of their ________ to interested investors.
Answer:
The correct word for the blank space is: Mutual Fund.
Explanation:
Mutual funds are investment vehicles that consist of a mix of different assets such as stocks, bonds or other securities portfolios. Mutual funds offer exposure to diversified, professionally managed investments for small or individual investors at a low price.
Corporation needs to raise $70 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $30 per share and the company’s underwriters charge a spread of 8 percent. If the SEC filing fee and associated administrative expenses of the offering are $575,000, how many shares need to be sold?
(Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.)
Answer:
$2536.232
Explanation:
The spread in this case is 30*8% = 2.4
A spread is simply gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity and the net proceeds are the amount of money the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds.
The net proceeds in this case is 30-2.4 =27.6
To get the number of share we can simply divide the funds need by the net proceeds per share = 70000000/27.6 = $2536.232. Therefore the correct answer is $2536.232
Net public debt is gross public debt minus all government interagency borrowing, all public debt plus all government interagency borrowing. all public debt minus all money owed on the federal income tax. all federal public debt irrespective of who owns it. QUESTION 5 How does the federal government finance a budget deficit? It borrows funds by selling Treasury bonds. It cuts spending on entitlement programs. It purchases U.S. Treasury bonds. It redeems its lous.
Answer:1. All public debt minus all money own on the federal income tax.
2 It cuts spending on entitlement programs
Explanation:
Public debts refers to sum total of goverments debts, in relation to net public debts this refers to the gross debts minus all debts payments that are due to the government of which tax income is an example
Deficit budget is a situation where the budgeted incomes for the coming. year is less than the budgeted expenditures for the coming year. The government is faced with the issue of raising funds to finance the budget an one of such ways is reducing spending on the expenditures.
Buying treasury bonds or redemption of ( iou) will only reduce the already not enough funds available to fund the budget and invariably increasing the deficit.
On December 31, 2020, Vaughn Manufacturing granted some of its executives options to purchase 181000 shares of the company’s $10 par common stock at an option price of $50 per share. The Black-Scholes option pricing model determines total compensation expense to be $1353900. The options become exercisable on January 1, 2021, and represent compensation for executives’ services over a three-year period beginning January 1, 2021. At December 31, 2021 none of the executives had exercised their options. What is the impact on Vaughn’s net income for the year ended December 31, 2021 as a result of this transaction under the fair value method?
Answer:
The impact on Vaughn’s net income for the year ended December 31, 2021 as a result of this transaction under the fair value method is a $ 451.300 decrease.
Explanation:
Fair value option is 1.353.900
Life option 3 years
Total compensation expense should be recognized as expense by the company over the life of the option.
1.353.900/3 = 451.300
Data for a Poisson with mean 10 A BigJet flight from Philadelphia to Boston has 60 seats. The high fare is $400 and the low fare is $100. There is ample demand for the low fare class and they buy well in advance before high fare customers Demand for the high fare is Poisson with mean 10, 1 0.000 0.000 2 0.002 0.003 3 0.008 0.010 40.019 0.029 5 0.038 0.067 60.063 0.130 7 0.090 0.220 80.113 0.333 9 0.125 0.458 100.1250.583 11 0.114 0.697 12 0.0950.792 13 0.073 0.864 14 0.052 0.917 15 0.0350.951 00.000 0.000 10.0 9.0 8.0 7.0 6.0 5.0 4.1 3.2 2.5 1.8 1.3 0.8 0.5 0.3 0.2 0.1 To choose a protection level... What is Co? What is Cu? What is the optimal protection level? With the optimal protection level.. How many high fare seats can then expect to sell? What is the probability of a full flight? What is the optimal booking limit?
Answer:
Consider the following calculations
Explanation:
Co = low fare = $ 100
Cu = high fare - low fare = 400 - 100 = $ 300
Critical ratio = Cu/(Cu+Co) = 300/(300+100) = 0.75
In the table, look for F(q) >= 0.75 , that value is 0.792 and corresponding value of q = 12. Therefore,
Optimal protection level = 12
Refer the table for q=12, Expected shortage, L(q) = 0.5
Expected high fare seats to be sold = Mean demand - Expected shortage = 10-0.5 = 9.5
Probability of a full flight = 0.792
The Co and Cu values could be $300 and $400 respectively while the optimal protection level could be calculated as 0.43 based on these values. The airline may expect to sell around 10 high fare seats, and the probability of a full flight and the optimal booking limit would depend on the specific demand distribution and protection level.
Explanation:The question is asking about the calculations involved in revenue management for an airline. Specifically, it asks for the determination of the value of Co, Cu, the optimal protection level, the expected number of high fare seats to sell, the probability of a full flight, and the optimal booking limit.
Co and Cu refer to opportunity cost and overselling cost, respectively. They are generally defined in terms of the fare difference between classes. In this case, Co might be the fare difference between the low fare and the high fare ($400-$100=$300), since this is the opportunity cost every time a seat is given to a low fare passenger instead of a high fare one. Similarly, Cu, the cost associated with overbooking could be $400 (the high fare cost), if we assume that the airline has to fully refund the ticket for an oversold seat.
The optimal protection level is typically calculated using the ratio of Co and the sum of Co and Cu. In this case, it would be 300/(300+400)=0.43. The impact of this level is that when the likelihood of higher demand is greater than 0.43, it's better to keep the seat for high fare passengers.
Because the demand for the high fare is a Poisson distribution with mean 10, the number of high fare seats the airline expects to sell would closely resemble this mean. However, it would also depend on how much protection level is provided for these passengers.
The probability of a full flight and the optimal booking limit would also depend on the specific demand distribution and protection level.
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It costs $60 of variable and $40 of fixed costs to produce rocking chair which normally sells for $150. A wholesaler offers to purchase 5,000 rocking chairs at $125 each. Georgia would incur special shipping costs of $10 per rocking chair if the order were accepted. Georgia has sufficient unused capacity to produce the 5,000 rocking chairs. If the special order is accepted, what will be the effect on net income?
Answer:
Total effect on income= $275,000
Explanation:
Giving the following information:
It costs $60 of variable and $40 of fixed costs to produce a rocking chair which normally sells for $150. A wholesaler offers to purchase 5,000 rocking chairs at $125 each. Georgia would incur special shipping costs of $10 per rocking chair if the order were accepted. Georgia has sufficient unused capacity to produce the 5,000 rocking chairs.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.
Unitary variable costs= 60 + 10= 70
Contribution margin= 125 - 70= 55
Total effect on income= 5,000*55= $275,000
Accepting the special order will increase the net income by $75,000.
Explanation:The effect on net income of accepting the special order can be calculated by comparing the net income from the special order to the net income from the regular production.
For the regular production, the total cost is $100 ($60 variable cost + $40 fixed cost) per rocking chair, and the selling price is $150 per rocking chair. Therefore, the net income per rocking chair is $50.
If the special order is accepted, the selling price is $125 per rocking chair, and there will be an additional shipping cost of $10 per rocking chair. So the net income per rocking chair for the special order is
$125 - $100 - $10 = $15.
Since the company has unused capacity and can produce the 5,000 rocking chairs without incurring any additional costs, the net income from the special order can be calculated by multiplying the net income per rocking chair for the special order by the number of rocking chairs, giving a net income of
$15 * 5,000 = $75,000.
Therefore, accepting the special order will increase the net income by $75,000.
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Use the following information to answer question(s) below. On January 1, 2011, Punch Corporation purchased 80% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date(after the acquisition) are given below:PunchSoopy Cash $34,000 $206,000 Accounts Receivable 144,000 26,000 Inventory 132,000 38,000 Land 68,000 32,000 Plant assets 700,000 300,000 Accum. Depreciation (240,000) (60,000) Investment in Soopy392,000Total assets$1,230,000 $ 542,000 Accounts payable $206,000 $142,000 Capital stock 800,000300,000 Retained earnings224,000 100,000Total liabilities & equities$ 1,230,000 $ 542,000 At the date of the acquisition, the book values of Soopy's net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000.
Determine below what the consolidated balance would be for each of the requested accounts. What amount of Inventory will be reported?
Answer:
Consider the following explanation
Explanation:
consolidated balance
Cash 240,000
Accounts Receivable 170000
Inventory 192,000
Land 100000
Plant assets-net 700,000
Goodwill 68000
Total assets 1,470,000
Total liabilities: 206,000 + 142,000 = 348,000
You are making the inventory decisions for an international company that sells bathing suits. The product has a forecasted daily demand with mean 100 and standard deviation 36. The selling season only lasts 6 months since bathing suits are a seasonal item. You are procuring the product from your factory in China (out-sourcing) and as a result the lead time is so long (6 months) that you can only place only one order per selling season (6 months before the season begins). You want to ensure a service level of 97.5% and the cost of capital of the firm is 20% (that is, the firm faces an annual interest rate of 20%). Shipping cost is $4,500 while procurement cost (purchase cost) per item is $5.
Answer:
Please see attachment and assumptions
Explanation:
Please note that the assumption is that the full question is as follows .You are making the inventory decisions for an international company that sells bathing suits. The product has a forecasted daily demand with mean 100 and standard deviation 36. The selling season only lasts 6 months since bathing suits are a seasonal item. You are procuring the product from your factory in China (out-sourcing) and as a result the lead time is so long (6 months) that you can only place only one order per selling season (6 months before the season begins). You want to ensure a service level of 97.5% and the cost of capital of the firm is 20% (that is, the firm faces an annual interest rate of 20%). Shipping cost is $4,500 while procurement cost (purchase cost) per item is $5.1.How many bathing suits should you order from your factory in China? 2.What is the total holding cost? 3.What is the total ordering cost?Valerie bought 200 shares of Able stock today. Able stock has been trading for some time on the NYSE. Valerie's purchase occurred in which market?
A. Dealer market
B. Over-the-counter market
C. Secondary market
D. Primary market
E. Tertiary market
Answer:
(c) Secondary market
Explanation:
Secondary market :
The secondary market, additionally called the reseller's exchange and pursue on open offering is the budgetary market wherein recently gave money related instruments, for example, stock, securities, choices, and fates are purchased and sold.
After the initial issuance, investors can purchase from other investors in the secondary market.
Bonita Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6350000 on March 1, $5260000 on June 1, and $8550000 on December 31. Bonita Industries borrowed $3200000 on January 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 11%, 3-year, $6370000 note payable and an 12%, 4-year, $12050000 note payable. What is the weighted-average interest rate used for interest capitalization purposes?
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Final answer:
The weighted-average interest rate used for interest capitalization purposes is 11.4%.
Explanation:
To calculate the weighted-average interest rate used for interest capitalization purposes, we need to determine the amount of interest incurred on specific borrowings. Here's the breakdown:
The interest on the 5-year, 13% note borrowed on January 1 is $320,000.The interest on the 11%, 3-year note is $700,700.The interest on the 12%, 4-year note is $1,446,000.To calculate the weighted-average interest rate, we divide the total interest incurred on all borrowings by the sum of the outstanding balances of all borrowings at the beginning of the period. In this case, the weighted-average interest rate is:
(320,000 + 700,700 + 1,446,000) / (3,200,000 + 6,370,000 + 12,050,000) = 2,466,700 / 21,620,000
This simplifies to:
0.114 or 11.4%
The ABC Auto Supply Company of Burlington, Vermont, uses an e-commerce software program on its Web site to allow customers such as Quickeeze Body Shop to enter their own orders for auto parts. ABC is following a(n) ____ business model.a. B2Bb. supplier-to-customerc. B2Cd. automotive-supplye. online customer focus
Answer:
The correct answer is letter "A": B2B.
Explanation:
In a B2B business model goods or services are traded between two or more businesses. Most parts of these transactions are dedicated to the exchange of raw materials. Customers are part of the process only when the final product is offered in the open market but not during the B2B business process.
For what kinds of needs do you think a firm would issue securities in the money market versus the capital market? A firm would issue securities in the money market versus the capital market because:
Answer:
Explanation:
Capital markets are majorly used for long- term fixed assets, making a company use it over for several years , also with maturities greater than one year. On the other hand money markets are short-term markets, so firms using these would be in need of funds for less than a year. Transactions in short-term or marketable securities take place in the money market
Maker-Bot Corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. No dividends were declared in the first two years. If the company pays $400,000 of dividends in the third year, how much will common stockholders receive?
A. $355,000
B. $270,000
C. $0
D. $130,000
E. $140,000
Answer:
How much will common stockholders receiveD. $130,000
Explanation:
Total Dividends to Preferred Stockholders
10.000 Shares
10% cumulative preferred stock outstanding
$90 Par Value
Dividends: 10,000 * 10% * $90 = $90.000
Preferred dividends in arrears for two years.
$90,000*2 Years = $180.000
Preferred dividends for the current year
$90,000
Total Dividends to Preferred Stockholders
$180,000 + $90,000 = $270,000
Total Dividends to be paid by the company
$400,000
Preffered Stockholers : $270,000
Common Stockholers: $130,000
Assume that labor demand is given by Qd = 200 - 10P and labor Supply is given by Qs = 10P - 20, where P = wage and Q = quantity of labor. If a minimum wage of $15 is imposed on this market, what is the net effect on wages paid to labor in this market? Group of answer choices $240 loss $100 loss $200 gain $360 gain $50 gain
Imposing a minimum wage of $15 in this labor market will lead to a net gain of $360 in wages paid to labor.
Explanation:Imposing a minimum wage of $15 in this labor market will lead to an increase in wages paid to labor in this market. The minimum wage of $15 will be above the equilibrium wage, causing a surplus of labor as the quantity supplied exceeds the quantity demanded. At the minimum wage, the quantity demanded will be 12 units (200-10*15) and the quantity supplied will be 130 (10*15-20), resulting in a surplus of 118 units. Therefore, the net effect on wages paid to labor in this market will be a $360 gain.
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Complete Question
Assume that labor demand is given by Qd = 200 - 10P and labor Supply is given by Qs = 10P - 20, where P = wage and Q = quantity of labor. If a minimum wage of $15 is imposed on this market, what is the net effect on wages paid to labor in this market?
Group of answer choices
a. $240 loss
b. $100 loss
c. $200 gain
d. $360 gain
e. $50 gain
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